Galit Fein Office of the CIO Presentation Full Version v5

8/2/2019 Galit Fein Office of the CIO Presentation Full Version v5

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STKI Summit 2012Tell me and I’ll forget Show me and I may remember

Involve me and I’ll understand Galit Fein

VP & Senior Analyst

Office of the CIO

Office of the CMO

Market Trends

2012



Galit Fein’s work Copyright 2012 @STKI

Do not remove source or attribution from any graphic or portion of graphic

2

Agenda

MEGATrends

2012

Office of the CIO

IT Services and

Chargeback

QA,

Service Desk

Sourcing

Office of the CMO

Mobility

Social Media





Israeli Enterprise 2012: Under Pressure

Enterprise

2012Global Economy Innovation

3

COM

PETI

TION





1980’s - IT Department

BOOperations MIS

Infrastructure

DRP

Security

Back

Office

4





1990’s - IT Department

BO

Infrastructure

Security

Transactions IT

manager

CFO

BackOffice

DRP ERP

5





2000’s - IT Organization

Infrastructure

DRP

Processes

Security

BackOffice

BO CIO CFO

Sales

ERP

CRM

Web

site

6





HR

2005 - IT Organization

Infrastructure

DRP

Processes

Security

BackOffice

ERP

CIO

CRM

HR

BO CFO

Sales

7





HR

2008 - IT Organization

Infrastructure

DRP

Processes

Security

BackOffice

ERP

CIO

CRM HR

OCIO

PPM

BO CFO

Sales

8





HR

2010’s – Technology & Information Systems

Infrastructure

DRP

Business Products

Security

BackOffice

ERP

BO

Technology

& IT VP

CFO Sales

CRM HR

OCIO

PPM

CMO

Mobile

Socialmedia

Analytics

BI

OR

CEO

9





Capex increasing, Opex not decreasing

Time

Opex2:

5-10% decreaseon existed

Capex:

New businessdemandfor IT services

Opex1:

Last year capex x 15%$$

10





How Can We Fill The Gap?

Time

Business demandfor IT services

IT Budget

$$

11





IT Budget Trends

12

• Modest increase in IT budget -average rise of 3.7%

• IT Capex flattens at beginning

of year due to uncertainty

• Despite continued volatility,

IT staffing remains constant





Meeting business expectations

IT has to:

• Create new platforms to support business innovation andgrowth

• To be competitive to new IT service models or be open to

use them

26%

17%

61%

48%Creating new products

Reducing

IT costs

IT’s ideal priorities

Satisfaction with IT’s effectiveness IT basic services

New ideas

Source: McKinsey 2012

13





Capital Organizational Spending

Technology

Investments47%Other53%

14

Source: IDC 2012





The Majority of IT total spending goes to Maintenance

Breakdown of Total IT Expenditure 2009-2012

Source: CIO Executive Board 2012

15

Innovation

Business opportunity

Maintenance

Mandatory





If you can’t beat them…

Agile world – ability to respond on the fly to constant changes

in business requests

Small, cost-sensitive, more likely to be "disposable"

Resource: Cutter

Changing requirements

Poor estimation

Pressure from management

to accept unreasonable schedules

What are the main reasons for SW project overruns?

16

56%

17%

15%

IT Portfolio is

changing quickly due to changes in

competitive

conditions





Changing Requirements AND Deliverables All the Time

17

A1

A2

A80

A7

A1

A13

A79

Business

requests

Sprint A

Detailed

Planning

A2

A3

B1

B2

P

R

I

O

R

IT

I

Z

A

T

I

O

N

Sprint B Previous requests AND

New business demands P

R

I

O

R

IT

I

Z

A

T

I

O

N





Consumer Power

• End of IT monarchy:IT will be one of possible sources of development that

departments can use, and in many cases internal IT will compete

with outside contractors for specific jobs

• IT spending is gradually changing it’s guards - from ITO to

business departments

• Different areas such as: risk, mobile, HR, IT purchase leaks

to business departments

18





Radical Change of IT - Efficiency and Agility

• IT can find itself nearly irrelevant, unless it becomes efficient ,

agile, and competitive with other market offerings

• IT should embrace the new models offered by cloud or serviceproviders, otherwise it will be replaced by them

• Lean IT

19





What is Lean?

• Japanese automotive Industry developed Lean

manufacturing with a lead from Toyota and utilising theToyota Production System (TPS) factory.

• Maximize customer value by eliminating waste and

optimizing the existing processes in all aspects of a firm’sproduction activities: HR, vendor relations , technology,and the mngt of materials and inventory

• Doing more with less effort. Focus on your key processesin meeting customer needs with all muscles without any fator waste.

20

Source: http://www.hydspin.org/files/conf09/g_appa_rao.ppt

STKI modifications

http://www.hydspin.org/files/conf09/g_appa_rao.ppt









Customer VALUE and WASTE

• The purpose is to deliver VALUE that the customer needs

and is willing to pay for

• If it ain’t value, its WASTE

– Extra (unused) features

– Handoffs – Task switching

– Delays

– Defects / REWORK

– Partially done work / work in process

21

Source: AgileSparks





Lean Benefits

22

Relentlessly focus on reducing non-value adding activities

Work Time(value add)

Cycle Time

Before

After

Wait Time(non value

add)

Cost/

Chaos

Same work

completed in less time

Cycle time

Requirements Design Development

Waiting Waiting Defect Fixing

FLOW

Avg time

3 weeks





Anything that slows down development

• Inefficient manual steps to build/ install/ test/ release

• Not fixing broken build/tests

• Code Complexity (skipping refactoring, duplicate code,

coupling and spaghetti code, etc.)

• Code that not executed (but supported)• No documentation and leveraging

of knowledge

23

Source: AgileSparks





Office of the CIO

24





Office of the CIO penetration in Israel 2012

IDF

Goverment

Industry

Telecom

Credit Cards

Health

Insurance

Banking

92%

92%

73%

8%

8%

20%

20%

43%

8%

8%

27%

92%

92%

80%

80%

57%

OCIO

25





MEGA IT Trends 2012

C o n s u m e r i z a t i o n

Real Time Predictive Analytics

IT Services

and Mobility

Context based

s o c i a l

26





IT services and cost transparency

• By implementing OCIO tools and methodologies , ITOs achieved

greater business satisfaction with IT• BUs received greater visibility and control over their technology

budgets

• NOW, encouraged by better visibility and cloud models alternatives,

business managers do not want the technology cost to becomeoverhead cost or annual tax

• IT must sell and deliver cost based services

We deliver IT

27

From unresponsive corporate overhead





From unresponsive corporate overheadto an agile business partner

All-you-can-eat buffet

• Everyone pays the same

price

• Food selections are driven by

the chef’s priorities

Fast-food restaurant

• Price is affordable

• Choices driven by market

demand

• Customers pay only

for what they consume

VS

28





The new IT

Client/user

Packaged

Application

29

h d d h b k





Why do we need IT Chargeback

30

• It helps organizations understand that IT is not free

• It gives BUs greater visibility and control over their

technology budgets

• It demonstrates the cost savings from shared services

• Demand for visibility in IT costs comes

from outside the ITO





IT Chargeback Recommendations

1. Well-defined portfolio of IT activities along with output

in terms which are coherent to the customer

2. Start mapping types of

requirements which repeat themselves:

• BI reports

• Changes in GUI (field, color, etc.)

• Client differentiation

DRP

Upgrade

Server

31

“When we are no longer able to change a situation,

we are challenged to change ourselves”.

Victor Frankl





Put It All Together: The IT Service Portfolio and Service Catalog

• Bundling:

A clear definition of what the

service entails, and how it relates

and integrates with others as a

service package

• Differentiation:

Multiple offerings at different

prices for different parameter

values, for items such as servicehours, availability and response time

32

• Value proposition:

Why should the business buy it?

• Competitive advantage:

Why should the service be bought

from internal IT?

• SLAs/reporting/performance

data

• Pricing and chargeback

• Exceptions and escalations

• Internal and external

benchmark data

A i IT S i C





Ascertain IT Service Costs

Source: ITSM

Capex

One-time

expenses

COULD BE:

33

Hardware

Software

Installation costs

Customization costs

Training costs

C t M d l ith V i bl P i i E l





Cost Model with Variable Pricing - Examples

Standard

service

definitions

Security

guarantees

Provisioning Performance

guarantees

AvailabilityHigh-level

description of

what the

service

provides

mission critical 24 x 7 with 4/9

uptime

E-mail

delivery

business

critical

10 x 5 with 3/9

business

operational

administration

Help desk

support

34

C t M d l ith V i bl P i i E l





Cost Model with Variable Pricing - Examples

Costs High-level

description of

what the serviceprovides

Equipment Cost of tech Help desk

support Software

Manager Labor

1st level support

2nd level support

Facilities

3rd party services

Email server Direct costs

Per-foot operating cost of

a DC

Indirect costs

Permanent IT staff Fixed

Temps Variable costs

35

IT Ch b k





IT Chargeback

$X per month per gigabyte of network storage

Consumption

$Y per new PC set up and

configuration

Transactions:

$Z per phone number or network

port

Units or headcount

A base fee for IT overhead allocated,

according to a BU’s percentage of

total revenue or total employees

Allocation

36

OCIO i f B i IT l i hi





OCIO comprises of Business-IT relationship managers

37

• All these ITG methodologies and new defined processes, SLAs, IT

chargebacks and service catalogs could be very confusing

• OCIO has important role in the communication with and the

support of BU

• Effective BRM must be a true hybrid of business

and technical orientation

• More than audit & reporting role - guidance

to BU heads on ways to improve efficiency

Office of the CIO





Office of the CIO

• As decentralized as IT gets, one person should have the

visibility on the total spend, because there are a lot of placeswhere effort and resources can get duplicated and wasted if noone has the big picture

• Greater business partner responsibility - more businessleaders are willing to take primary responsibility for managingdelivery. BRMs consistently underestimate business partners'willingness to lead

• Engage business leaders in advance, to ensure effectivetechnology delivery that doesn't introduce inefficiency andunnecessary complexity or undermine IT strategy

38

OCIO is Very Busy





OCIO is Very Busy

• IT Operations

• Project mng/ Development• QA/ Testing

• Vendors mng

• Legal/ Compliance

• Remote sites - DR/BCP• Critical Success Factors

• Key Process Indicators

• Controls in general

• Roll Out -

Does not end after project goes

live! OCIO must maintain charge

of employees knowledge and

usage of new system/ features

• BRM (Key Users)

• Budget plan• IT HR

• EA

• Procurement plan• Change mng

– ITIL-related

– Project-related

• Risk/ security mng

• Configuration Items:

– New ones that will be installed

– Existing ones that will be change

OCIO Responsibilities in Israel 2012





OCIO Responsibilities in Israel 2012

29%

6%

13%

14%

26%

38%

62%

65%

82%

75%

85%

Other: App mng, training, config. Mng

HD

QA

HR

Enterprise architecture

Risk mng

Methodologies, processes & tools

IT budget mng

PMO

Selection, control and evaluation of IT…Strategic IT Plan

Source: STKI 2012 40

OCIO helps IT be Competitive Service Provider





OCIO helps IT be Competitive Service Provider

Optimum

portfolio mixand projectevaluation

Investment decisions

translation into ITarchitecture and infra.

Service LevelAgreements

Chargeback Resource mng Project

Tracking

FormalTracking of

Business Value

Roll out

41

IT Project Rollout Plan Actual project mngt





IT Project Rollout Plan - Actual project mngt

• Detailed Work Breakdown Structure with dates - milestones,

control gates, etc.

• GANTT charts showing dependencies and progress

• Human Resource Plan (Internal, Vendors, Customers)• Configuration Items:

New ones that will be installed

Existing ones that will be changed

• Purchase/procurement plan for required CIs

• Budget Plan

42

Employees knowledge and usage of new system/ features





Employees knowledge and usage of new system/ features

• Communication Plan (Awareness, Meeting schedules)

• Project Change mngt Plan

• Security Plan

• Other aspects of project mngt based on your organization’s needs

What controls are needed to create a reasonable assurance of outcomes?

• Roll Out

Does not end after project goes live! OCIO must maintain charge of

employees knowledge and usage of new system/ features

43

PPM Tools





Positioning of the Israeli Market

44

L o c a l S u p p o r t

Market Presence

Clarity

(CA)

MSP

Microsoft

Sciforma

Primavera

HP

Clarizen

Enterprise

Worldwide

Leader

SaaS Player

ITCC

New Player

PPM Tools & Integrators in Israel






45

Integrators New Clients 11’ Clients

ProceedOrange, PelephoneMinistry of Tourism, Clalit, SanDisk,

Leumi Card, Harel, Jewish Agency,

Strauss, Bank Leumi

Clarity (CA)

CA, Orantech Teva, Bank Hapoalim

ONE1 Min.of the EnvironmentVisa CAL, BDOMenora, IAI, Tel-Aviv Munic. Ayalon-ins, Cellcom, Phoenix, Leumit,

Justice Department, Clal Bit, Bank

Igud, Delek, Paz, YES,

CIO Dashboard: Random Logic, IDF,

Elbit. iTeam (budget planning)

MSP

XiomaSignifer, Aman

HOT, ZIM, Isracard,

Machteshim agan eng.

Given Imaging

Bank Discount, Menora, Teva, Visa

Cal, BVR, Nova, Evogene, Leadcom

Hazera Genetics, Bid Band Networks,

IDE, Veraz, Opgal, Teva Tech

Sciforma

HP, BDA Mataf, Motorola(Global), LivePersonPPM (HP)







46

IntegratorsNew Clients 11’ Clients

Matan,Orantech,

Neway, PZ

Projects

MS 2010Amdocs, Defense

Matan: Strauss, Tel-Aviv Municip.

Elta, Marvell

Orantech: Navy, Shabas, Teva R&D,

Sorek, Leumi Le’Mashcantaot

PZ Projects: Justice Department,

Elisra

M-system, Leumit, IAI, IAA, Lotem, Bezeq,Mekorot, Orbotech, Bank Leumi, Coca-

Cola, Nice, Matan: Machteshim Agan,

Prime Minister, Maccabi, Alvarion, IAA,

Better Place, Tnuva, Random Logic;

Orantech: Netafim, ECI, Ceragon, Logic,

AD Gency ,Sol gel ,Rocar ,Playtech,

Sandisk; KAKAL, MODU, Kodak, RAD; PZ

Projects: Min. of Foreign Affers; Proceed:Malam

EPM(Microsoft)

Approach,

SalesForce.com

NetafimApproach

PPM on Force.com

Clarizen Tnuva Clarizen

Aviv Mercava, IDF, Intel Primavera

(Oracle)

Matrix Jacada (Global), Retalix (Global) Compuware

Changepoint

that's IT ECI, Tama, Metro MotorITCC

Learning Training and Implementation





Learning, Training and Implementation

47

Learning Training and Implementation Trends





Learning, Training and Implementation Trends

As a result of:

Too many new systems

IT requirements flood

Employment high turnover

Generation gap Lack of control of new system’s implementation

48

Training and implementationare under HUGE focus

Does your organization measure the ROI generated





by the new system?

Yes

42%

No58%

49

Source: STKI 2012

Learning Training and Implementation - Major Trends





Learning, Training and Implementation Major Trends

• Gamification

• Video

50

Video e Learning Next Generation Customer Care




Do not remove source or attribution from any graphic or portion of graphic51

Video e-Learning –Next Generation Customer Care

http://blogs.wsj.com/speakeasy/2010/10/25/andy-grammers-keep-your-head-up-applies-choose-your-own-adventure-logic-to-music-videos/

Choose your next

choice on-the-fly

Video evolves according to choices made

Subject covered in

Shahar Maor’s presentation

Recommendations





Recommendations

52

• Look for innovative ways to make SW training less boring

Clue: American test is BORING

• Gamification and Video trends serve as perfect training and

implementation tool

• If you invest massively in purchasing new SW invest a little more

to make sure your employees use it to the max

Subject covered in

Liza Bodogin’s presentation

Agenda





Agenda

MEGATrends

2012

Office of the CIO

IT Services and

Chargeback

QA,

Service Desk

Sourcing

Office of the CMO

Mobility

Social Media

QA and Testing





QA and Testing

54

QA & Testing Services - Trends





QA & Testing Services Trends

• Becoming more important as a result of new regulations

and security requirements

• Major priority to cost reduction: by using Nearshore model

• Due to high competition - use of variety of tools and

methods:

Crowd testing, KDTpro, Practitest, Experitest, Perfecto Mobile

• In spite of clients' preferences for in-house QA, they’re

more willing to give vendor some scopes of work

55

QA & Testing Services - Israeli Market





QA & Testing Services Israeli Market

• We can honestly say “goodbye” to independent testing

companies! We’ve tried, but we failed

• Majority of IT projects are using the same vendor for both

development and QA

• Clients consider using different vendors as a waste of time

and money

• Increasing interest in Cyber, mobile and cloud testing

56

Because of the scope and complexity of ITt ITO ft f il t d fi f l f t i





most ITOs often fail to define useful performance metrics

Source:

Gartner 57

Resource mng, Talent mng & Capacity planning





g, g p y p g

58

~44% of IT budget goes tomanpower

Capacity Planning





p y g

59

• After considering maintenance and HD commitment – how

available are your resources? What are your bottlenecks?What skills do we lack?

• It’s not just a matter of matching project to the available

employee

• It’s about matching skills, experience & employee

availability to project requirements

Watch Out!





• The share of employees and contractors reporting to IT

leaders has dropped more than 15% in 2011

• At the same time, more than a 1/3 of larger orgs report

increase in social media specialists, service architects,

technology brokers, and other new-to-world roles

• Use strategic plans, labor market analysis, an org. review,

and forecasting to create an action plan which include a

talent mng. strategy, outsourcing plan, and organizational/

job redesign plan

60

Resource Management





g

• OCIO gains the momentum, but real skills, capacity and

training are not treated well

• IT Talent and capacity mng - Identify emerging skills gaps

and role changes in traditional IT roles in order to prepare

for changes by strategic workforce planning

• Prepare internal resources to become brokers, not

providers, as the cloud enables externalization of manycurrent IT functions

61

IT Service Desk





HELP!!!!

IT Service Desk - Trends





• Service desk is the first to be cut down

• SPOC – HR, facilities, procurement request

• Standardization of products & services (ITIL)

• Proactive problem management

• SLA externalization

• Knowledge mng – make your tool work for you

• Self-Service is the KING!

63

Total Cost of Ownership





p

64

• As the Level 1 resolution rate increases, the cost per call for Level 1 increases

• But the total cost per call, including Level 2 costs, declines

• The cost of resolution at level 2 is typically 5X to 10X greater than at level 1

Over Time





• Clients become more savvy (Gen-Y)

• Users prefer using blogs, vendor and user online support sites,

and social networks to find answers instead of using service

desk portal

• Incidents’ complexity increase

• Total cost per HD call increase

Growing Call Volume





• Rapid increase in call volume stretches already limited

resources, impacting customer satisfaction

• Changes are main reason for call-volume increase:

new HW, new app, new mobile device, etc

• Mobile devices need attention:

most orgs don’t support personal mobile devices neither

company-owned mobile devices

66

Reasons for Decrease in Support Incidents





Outsourcing support

Remote tools

Nu of customers

Knowledge mng

Customer competency

IT HD staff competency

Self-Service

Infrastructure changes

9%

22%

26%

27%

30%

32%

33%

49%

67

Source: InformationWeek Analytics 2o11

Self-Service





• Personal attention VS prompt answer

• User friendly systems – YouTube “How to…” examples

• IT HD phone call twice as expensive as Self-Service

• SW distribution

• Online catalog

• Higher Clients satisfaction

Measuring the Right KPIs





Help deskmetrics still

relevant

• On hold times (contributes to customer satisfaction)

• Number of calls received (trend analysis andproblem identification)

• Call duration (knowledge deficiencies)

Metric focus is

on thecustomer:

• Customer satisfaction is KEY

• Meeting service level targets

69

Top Metrics for Service Desk




Do not remove source or attribution from any graphic or portion of graphic 70


Cost per Incident




Do not remove source or attribution from any graphic or portion of graphic 71


IT Service Desk – Positioning of the Israeli Market





Positioning of the Israeli Market

72

L o c a l S u p p o r t

Market Presence

CA

BMC

Microsoft

HP

PeopleSoft

IBM

Altiris

Enterprise

Worldwide

BSM Leader

IT Help DeskModules from

CRM packages

SysAid

SAP Siebel

Pivotal

IT Service Desk Tools & Integrators in Israel



Galit Fein’s work Copyright 2012 @STKIDo not remove source or attribution from any graphic or portion of graphic 73


CA, Ness,Malam -

Team,

Techmind

Ness (SaaS),Haartz,

Phoenix, Bank

Yahav, MOD

Comverse, IAI, Discount, Elta, ECI, HOT, Motorola, Teva,Elbit, Mekorot, Osem, Phoenix, DSW, Bezeq Int, Beit Berl,

Israel Police, Tnuva, Central Bureau of Statistics, EL-AL,

Tamas, TASE, Ministry of Health, Tel-Aviv Municipality,

Herzelia Munic. Clalbit, Shabas, Rafael, Isracard, 888,

9900, Bank Hapoalim, Mifal Hapais, Ministry of Justice,

Ministry of Defense, Yediot, Petah-Tikva Munic, Bank

Israel, Ministry of Immigration, RASHAT, Teva (Bar),Brom, Lotem

CA

MatrixMigdal, SCD,

012 - eng.,

Texas Instrum ,

Netvision eng.

Zim, Malan, IGS, MED Nautilus, Malam, Kneset, NDS,

Social Insurance, Uniliver, Creo, Intel, Motorola, Summit

Design, Polycom, Cellcom- eng. HOT-eng. Partner – eng,

Sandisk, Comverse, Nice, IAI, Better Place

BMC

Aman, HP HPOV:IDF, Netafim, Shaam, Open University, Orbotech,

Tower Semiconductors, Haaretz; Service Manager: NDS,

PlayTech, Shupersal

HP

Tefensoft: Clalit Health, Menora, Migdal, Prime Minister,

Hadasa, Machteshim, Maman, AudioCodes






IBM, Addon,Ludan Bahai World Center,Edgar Real-estate,

Natgaz

Harel, Menora IBMTSRM

Aman, Bynet,

Netcom,

GlassHouse

Ormat Callmobile, IDFAltirisSymantec






Consist (300 Israeli clients)

Opgal

Madanes Insu Shlomo Sixt

Caesar stone Magic Cal

auto West galilee collage

Lageen Logic

Motorola Safe city Gitam

BBDO Danya-cebus Tower

Semiconductor Tcpoit

Keshe TV

FedEX WIX חסוי- Fibernet

Sapir collage Albar Intel

Labs Dash El-Al Sec Div

Diplomat Holon Muni Rokar

Tiny love IDC NOVA IMDsoft

Tmura The Council for

Higher Education Imperva

Netformx Ashot Ashkelon

Eged Tour EnvironmentalServices Company Ltd. (ESC)

Shirbit

Jonson & Jonson, Highway 6, Omrix, Wintegra, Sami Shimon

College, Africa Israel, Mei-Eden, AIG, Electra, McCann Erickson,

Diesenhaus unitours, Opal , Flash Networsks, Liveperson, Hertz, Psagot

Ofek, Coca Cola, Beit Barel College, Ashdod Port, Technion, Shila,

Sugat, Gadot, Bezeq Int. AeroScout, Strauss, IKEA, Delek, Tempo, 013

Netvision, Tami4 ,Bank of Jerusalem Leumi Mortgage , Bituach Yeshir,

Holmes Place, Ashot Ashkelon, Netformx, Fishman, Hospital-

Nahariya, halman aldubi, Eged Tour, Zoglobek, Madanes, Tempo, Beeri

print, Lubensky, Shlomo Sixt, Excellence, Elul, Ophir optronics,

Realcommerce, Nextcom, Fritz, LR Group, Israel Ports, Magicsoftware,

Cal auto, West galilee collage, Maabarot Products, Haifa Port,

PharmUp, Lageen, ICQ, Logic, Tambur, Kamada, The Nation Traffic,

Elcam, Carmel container systems, Brightsourceenergy, Kavim, Gitam

BBDO, Rishon Lezion Muni, Dania sibos, Baran group, Tower

Semiconductors, Bee Group, Betterplace, Keshet TV, Leumi Card,

FedEX, WIX, Optier, Tahal, TGS, Palram, Sapience, Orca, UPS, Beeper,

Intel labs, Mivtach Saimon, Albar, EMC, Tel-o-Fun, Dash, EL-AL Sec,

Sapir collage, Diplomat, Hulon Muni, Shlomo Insu, conduit, Hadssa

hospital , Tradenetworks, Ceragon, Rokar, Celtro, National library, IDC,Nova, Ambar, Mediamind, UTI, Barzilay Hospital, Afimilk, David

Intercontinental, Hertz, Isrotel, IKEA, IMsoft, Tmura, polymerlogistics,

shastovich, , Imperva, Haifa university, mashcal, Tel-hai collage, IBI,

D&B, and many more

SysAid

IT Help Desk Modules from CRM packages





20 Partners, including:

Matrix-Effect, SIT, Advantech,Malam-Team, Netwise, Bynet

SW, Yael, El-AD….

Ministry of Health,

Shikun & Binui,

TOTO, Osem, College

of Management

Ministry of Finance, Israeli Navy, Intel, Prime Minister,

EldanAdvantech: Eged, Shikunbinui, Amidar, Volcani Center,

Lavi

EL AD: Judicial Authority, Ministry of Transport, Court

Malam-Team: TAU

Guardian: Baad15, Jewish agency

Matrix-Effect: Igud, Malan, Superpharm, Cellcom, Visa

Cal, Machteshim-Agan, Marlboro, Ministry of Education

Almog: Telmap

Microsoft

CRM

ONE1Bat-Yam Municipality, Exlibris, Systematics, Panorama,

Telmap, Ericom,FGG Radvision, Gilat, Shahal, Ritalix,

Globs, Tadiran, Orad, Maccabi, Negev Ceramics

Pivotal

Ness, Taldor, Advantech, Valueplus _

Paz, Isr. Government, Bazan, Bank Hapoalim (modul) SAP Matrix _Ministry of Foreign Affairs, Mamram, Bezeq PeopleSoft

Taldor, IBM Tnuva, Golden Pages, Bank Leumi Siebel(Siebel CRM

onDemand)

Service Wise Yad HanadivSalesForce

Outsourcing Trends




Outsourcing



Galit Fein’s work Copyright 2012 @STKIDo not remove source or attribution from any graphic or portion of graphic

• In recent years the number of comprehensive and infra

outsourcing new deals significantly decreased ,except for public sector, SMB and some niche areas

• On the other hand - successful examples of existing clients,

who recently had revaluated and renewed their

outsourcing contracts (with a lot changes)

• Disappointment from conventional outsourcing for failingto meet client expectations

78

State of World Wide Outsourcing is NOT better




2010 2011 2012 25%

35%

Applications Outsourcing

Infrastructure Outsourcing

Source: CIO Executive Board 2012

PMO DB admin. Testing/QA Voice

commun.

Network Help Desk App

Mainten.

App

Develop.

25%36% 39% 40% 41%

47% 47%52%

Percentage of Org. Allocating More than 20% of Total IT Spending to Outsourcing 2011

Products and Services in IT




Traditional

Outsourcing

Bought Services

Owned Products

Outsourcing transforms into Cloud Computing




Traditional Outsourcing

Your own assets

Resources control

Fix price

Location does matter

Vendor monitoring SLA based

Minimal ability to change theterms of the contract

Cloudy Sourcing

Multi-tenant, sharedresources

Outcome focused

Usage-based pricing

Location-agnostic

Automated provisioning,

self-service requesting

Cloud computing

81

Three Approaches to Cloud Deployments




Control | SLA | Specialization | Security | Agility | Price Advantage | Access | Elasticity

Public

• Designed for a market, not asingle enterprise

• Open to a largely unrestricteduniverse of potential users

• Customers buy at specific levelof abstraction (server,application, platform)

• Single-vendor or multi-vendor

Multiple unrelatedenterprises (shared)

Hybrid

• Enterprise’s cloud services

portfolio includes both private

and public cloud services• Some specific services are

delivered in a combination of public and private models (e.g.,private cloud “bursting to” a

public cloud service)

Virtual and physical (non-cloud) resources and

applications

D.I.Y.

Private

• Designed for, and accessrestricted to, a single enterprise

(or extended enterprise)• An internal shared resource, not

a commercial offering

• IT Org is the “vendor” of theshared/std service to its users

Resource

Isolation

Single enterprise/ extended enterprise

(dedicated)

Source: IDC

5 types: Enterprise Clouds




Change is Coming




0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Today

24 Months out

Traditional IT

(Internal) we own

and manage the

hardware, software

and IT staff

Outsourced IT/ASP

3rd party owns

hardware, runs IT

staff, software

ownership is mixed

Enterprise Private

Cloud

(Internal)

virtualized, dynamic

resource pools

deployed and

managed in house)

Hosted Private

cloud

(External)

Hosted/managed by

3rd party, dedicated

to the use of my

company

Public cloud

(External)

subscription

software services

delivered over

internet

S o u r c e : I D C ' s N o r t h A m e r i c a n C

l o u d S u r v e y ,2 0 1 1

n= 6 0 3 ( D i r I T a n d a b o v e ) T o t a l s s u m t o1

0 0 %

Please estimate how much of your company's IT budget (inc. server, storage, network infrastructure, desktops and

devices, IT staff, infra. middleware, and applications), will be allocated to buying and managing these different types of

IT products and services.

+2%+3% +4% +3%

-14%

Anticipated budget

dedicated to OUTSOURCED

IT cloud by 2013 = 52%

84True multi-sourcing is becoming a reality at many firms 84

Utility Computing at Predictable Price




CIOs are willing

to make sizablebets, but they

need guidance:

which workloadsare most “SaaS

ready“

how they should

best prioritize theirspending and IT

resources to takeadvantage of cloud

Utility/cloudcomputing

assets

rentableinfrastructure foron-premisesapplications

Firms who wantsome benefits of SaaS (reducedfixed IT costs)

but need tomaintain their ownapps ecosystem for

businessperformance needs

85

Cloud Benefits and Challenges




Source: IDC 2011 86




• People Outsourcing

87

Staff Augmentation




• IT will always use some Staff Augmentation for flexibility

and scalability

• Private sector reduce Staff Augmentation but the trend

still exists especially in public sector, in ITOs with strong

trade unions and Short term professionals

• “ Hashkalizazia”

of Staff Augmentation market

88

NearShore - Trends in 2012




• Majority of ITOs will at least consider NearShore (NearSite)

model to reduce costs in 2012• NearSite model invention for better control

• Few clients complain re high turnover and knowledge

preserving in orthodox nearshore

• Work tariff rates are slowly on the rise

• Existing clients usually expand their scope of work

• Hot topics: BI, Web and mobile development and testing,

cloud and automation testing

X-Shore…




Near-site

Scope

Time

Quality

Cost

Caution! Fix Price Ahead!




Price reduction race

כ"סהבדיקותפיתוחניתוחמורכבותרכיב

108פשוטמסך 162בינוני

324מסובך

שאילתא 28.5פשוט

42.75בינוני

85.5מסובך

ח"דו

29.5פשוט

44.25בינוני 88.5מסובך

ממשקים

108פשוט

בינוני

216

432מסובך

'מנהלי פר 1Mכ"סה

What is missing?

Evaluating the risk

91

Client / Vendor tug of rope




Vendor

Client

• Takes the project in spite of

“losing” prices

• Hopes to get new business

• Wants the client to be happy

• Moves to other pricing models

• Chooses service provider by lowest price

• Doesn’t take the risk element into account• Gets use to receive free requirements

• Ready to pay for additional work to a

certain limit

92

Chronicle of a IT project foretold




Temps

Underpriced

High profit

93

New type of client/ vendor relationship




• Service provider has to make money

• Sometimes you can’t avoid the conflict – choose an arbitrator

agreed on both sides

• Relationship between the parties is more important to theproject’s success than price, performance and the terms

• Less profit, less “home” vendors, more work

94

Vendor/Client revenue asymmetry




License

Development

Testing

Delivery Day 1

Hatmaa

Testing

Rollout

Investment Expenditure

Time & Materials Fix Price

SOW RFPSLAFix

Vendor/Client revenue asymmetry

Maintenance

95

Staff Augmentation – Pros and Cons




Source: TheMarker and STKI

Thank You And Hope You Enjoyed!



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