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Indranil Guha10th Sep 2012
IT TransformationChallenges & Choices …
22
Key Challenges FINANCIAL
• Reduced Funding (Budgets)• Balance Spending on “Run” vs “Change”• “Lights-ON”, Secure, Comply, Change• IT is perceived “Expensive” & “Slow”
TECHNOLOGY• Legacy Infrastructure & Application Systems• Availability, Reliability, Maintainability &
Performance• Silo Systems lacking integration• Poor Architecture• Lacks Agility – Says “No” & justifies vs. “Yes” can be
done
PROCESS• None or Sub-optimal Processes• Lacks Quality & Consistency• IT is losing the control and governance
PEOPLE• Technical Skills Brush-up• Belief in Process, Initiative Taking & need to Do
Things Differently
33
New Paradigms Brings New Opportunities“IT Simplified” & “Blurring Lines”:
Business - IT JVs- Collaborative; Not Reactive CIO & CxO Roles – Enhanced Common Grounds Proliferation & Consumerization of IT – BYOD New Computing Models – Smarter Applications
Business (almost) Selects IT Solutions – Impacts Architectural Harmony; Security; Performance & Sustainability
Constant Race Against Time – Delays Imply Loss of Competitive Edge
Eroding Budgets; Pressure of Cost Effectiveness – Be Efficient & Be Agile !
44
Way Forward – Quick Wins
DISTRACTORS & INHIBITORS • Lights-ON issues?• Too many changes are being implemented?• Doubts on what is being implemented follows
an architectural blue-print?• Simple routine activities do not follow a well
defined process?• Is any sort of Enterprise Monitoring available?
QUICK WINs Probably Change Control is a bit slack; Tighten
it Implement a “good enough” release
management Come up with an Architectural Blue-Print Implement proper processes for key & routine
activities Ensure monitoring of key CIs & Systems –
Manual Check-List, if required
55
Lights-ON Improved Scenario
Lesser Breakdowns Will Allow You Plan
Better
Don’t Hesita
te To Share The “THEN” &
“NOW” Scenarios with the CEO &
Executive Management
Summarize The Key Issue & The
Actions Taken
This will help in gettin
g sponsorship for your
forthcoming plans
66
Strategic PlanINPUTS Corporate Strategy Business Plans Business Targets Security & Threat Landscape Risk & Compliance Requirements Application Systems Robustness & Ability to Deliver
Value Degree of Current Automation & STP (Straight-Through-
Processing) Budgets & IT Costs
IT STRATEGY 3~5 Years How IT will support the business in Agility, Innovation &
Growth IT Architecture – Internet, Extranet, Intranet & Security Systems – Keep, Upgrade, Replace Integrate via Middleware – Avoid Point-to-Point Infrastructure (Security, Network, Servers & Storage) DR Capabilities Governance, Risk & Compliance Process, Quality & Certifications Skills Matrix, Training & Succession Planning IT Career Path
77
Tactical Plan
TACTICAL PLAN 2~3 Years Cover Holistic View of People, Process & Technology
Key Initiatives/Projects Showing Current Pains & Expected Benefits
Investment Dashboard
Quarterly Breakdown of Investment Plan
These Plans Are To Be Well
Communicated to Executive
Management
88
Risk & ComplianceRe
gula
tory
Au
thor
ities
Bu
sine
ss
Plan
s
Outs
ide
& In
side
Sec
urity
Th
reat
s
Risk
&
Com
plia
nce
Security Frameworks & Policies
ICT
Initi
ativ
es
Effective IT Governance: Enterprise Architecture – Predict & Architect; Reengineer (if
needed) IT Architecture Board (ITAB) – Ensure Architectural Compliance.
Avoid Rework & Wastage Risk & Compliance (Cloud related policies too….) – Policies. Roles
(Who Does What). Govern & Comply!IT Governance
99
Building Blocks Towards Agile ITAGILE IT Enterprise Architecture
Modular Infrastructure, Application & Security (SOA) Infrastructure
Virtualize Servers – TCO, Provisioning Time, Asset Utilization
Virtualize Desktops/Applications – Mobility, Deployment, Upgrade, Security
Virtualized & Tiered Storage – Interoperability, Performance, Thin-Provisioning
Backup, DeDup & Archival – Faster Backup, Secure Data Movement
Active-Active DR Capability – Resilience & Site Recovery, Investment Utilization
ESB Avoid Point-Point connection; Use a solid
Middleware Modularity
SDLC Optimized SDLC, Faster & Consistent Service
Provisioning ERP, CRM, BI, EDMS & Workflow
Automation & Integration for enhanced Efficiency
1010
Policies, Processes, Work Instructions …. IT Asset Lifecycle – IMAC-D Distinguish Between:
• Policies• Processes• Work Instructions• Checklists• Guidelines
Policies Are Clear, Concise, Unambiguous & Addresses IMAC-D
Processes Exists for all Routine & Operational Activities
Work Instructions & Checklists are equally important Apply PDCA approach for Continuous Improvement
Importance Process Training & Awareness
Cannot Be Overemphasized
1111
IT as a Service & Charge-Back to BusinessIT Services & Service Catalog Ensure to have all IT Service Delivery Processes Well
Documented
Have all Services Listed
Create an User Friendly IT Service Catalog with Service Costing
See which Services can be offered as a Self-Service
Have an SLA signed with the Business
Have relevant Under-pinning Contracts
Provide the Services
Generate Service-Reports by Department, By User etc.
Charge-Back the Business for the Services OfferedEnsure to Have the Services Delivered Efficiently and Cost Effectively
1212
Outsourcing & Managed Services
Key Considerations:• Is This Strategic or Even Tactical?
• Which is a good candidate for outsourcing?
• Dimensions of Outsourcing – How Much is Too Much
• Contractual side of IT Sourcing
• Service Levels Agreements (SLAs)
• SLA Matrix and KPI
• Intangible; yet key factors of successful outsourcing
1313
Business & IT TransformationIn-House
Outsourcing Cloud
Do IT In-House- Full Control- Secure (CIA & IP)
- Lack of Agility- Complex Environment- High Tech Skills- High Mgmt Overheads- Technical Management
Business Process Outsourcing
Large Scale or Total Outsourcing
- Improved Efficiency & Accuracy
- Low Tech Skills- Reduced Technical Mgmt- Medium Mgmt Overheads- Fosters Focus towards
Core Business Matters
- Risks Around IP & CIA- New Dimensions of IT
Vendor Management- Challenge of Performance &
SLA Measurement- Risk of Cost Escalation
Cloud Services (PaaS, IaaS, SaaS)
- Much Improved Agility- Substantial Reduction of
Managing Technical Complexity
- Fosters Focus towards Innovation & Core Business Matters
- Complex Decision Making- Risks Around CIA & IP- Where is the Cloud (Here,
Near or Far)?- What Are The Standards?- What Are The Governing
Laws- How Do I Retrace My Steps?
1414
Risk Takers, Early Adopters & Vantage Players New Business Models – New Advantages, New
Risks, New Challenges
Early Adopters Are The Risk Takers Who Shapes Transformations
Corporate IT Strategies To Include Cloud The “Here”& “Near” Scores Higher
Local ISP Clearly Are at A Vantage Pointo Example: Common Security Threats
Service Delivery of Routine & Common Services:o Holding & Government Organizations Can Setup Their
Private Cloud
1515
Decision Making – To Spark Your Thoughts …..
• Is this Service Related To Your Core Competencies? – If Not, Think….
• What Is the Cost & Effort to Provide This Service? - If Substantial or Even Considerable, Work Out the ROIs ….
• Is A Cloud Service Available? – Locally, In the Region, Distant….
• Are There Any Governing Policies/Laws That Inhibits? – Within Your Org or Local
• If Indicators Are Favorable - Go
1616
Project Funding & Business Case IdeasCAPEX intensive projects Joint Ventures & Co-Funding
Differed Payment Models
3 years OPEX, TCO & ROI + Indirect Costs
Business Cases – “The Tough Nuts” Risk, Probability & Impact -- $$$
Cost of lost Opportunity
Cost of losing Market-Share
Cost of losing Image as “Innovates & In The Forefront”
1717
Maturity Models & CertificationsIT Maturity – Evolve your IT Reactive – Business decides; IT requirement is
conveyed
Collaborative & Proactive – IT is involved with Business
Predictive & Influential – IT predicts & influences Business
Service Oriented & Well Orchestrated – Agile IT
IT Costs are Charged-Back – IT has to be Competitive
Frameworks, Capability & Quality Certifications COBIT CMMI ITIL ISO – Service Management; IT Security, IT
Governance
Business Is Happy; Credibility is Endorsed !!
1818
Summary of IT Transformation Road Map
Quick Wins
Strategic Plans
Tactical Plans
IT Risk, Compliance & Governance
IT Architecture – Simple, Modular, Secure & Future-Proofed
Agile IT – Infrastructure, Applications, SDLC & Process
Cloud, Outsource, Co-source, JVs & Insource – Balance IT Right
Service Delivery – Efficient, Optimized & Consistent
HR Assets – Honed Skills, Motivated & Believes Keep All Stakeholders Well Informed