It's All About the Services: Implementing a Service Portfolio s All About the Services: Implementing a Service Portfolio ... (Activity Based Costing) Cost per service ... It's All About the Services: Implementing a Service Portfolio

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  • SESSION 109 Monday, November 2, 10:15am - 11:15am

    Track: Strategic View

    It's All About the Services: Implementing a Service Portfolio

    Nelli Serifovski Senior Process Manager, NNIT A/S nser@nnit.com

    Session Description

    Standardization, scalability, and transparency are critical success factors for any company experiencing rapid growth. This was the situation for NNIT in 2010, when new customers, services, and technologies were being regularly introduced into the business. This session explains how NNIT implemented a service portfolio to provide an essential overview of all services provided, focusing on the key benefits and lessons learned. (Experience Level: Intermediate)

    Speaker Background Nelli Serifovski has more than ten years of experience working with different IT service management processes. Her career as an ITSM professional and her interest in ITIL best practices began in 2003 when she was given the responsibility of preparing service level agreements and service catalogs for a major client at NNIT. In 2010, Nelli joined NNITs new service management office. She is currently involved in the implementation of service request catalogues, including the introduction of a new service request management process.

    mailto:nser@nnit.com

  • Its all about the services! Implementing a Service Portfolio

    Nelli Serifovski

    NNIT A/S

    NNIT in brief

    2

    NNIT was born as the internal IT department of Novo Nordisk, but has now grown to become one of Denmarks leading IT service providers and consultancies, providing a wide range of IT services to customers using fully integrated international delivery capabilities.

    Our vision

    By 2020, our quality and value adding IT services will make us:

    Denmarks preferred IT outsourcing partner

    A leading international IT partner dedicated to life sciences

  • 2012-2015 2,600 employees. 15th consecutive year with double digit growth New offices in the US (Princeton) and Czech Republic (Prague). NNIT is listed on NASDAQ OMX Copenhagen A/S

    2009-2011 20% of the employees works on sourcing destinations NNIT builds new data center and reaches 1,500 employees 3rd office in Denmark (Aarhus)

    2006-2008 New offices in Philippines (Manila) and Czech Republic (Olomouc) 10th consecutive year with double digit growth NNIT employee no. 1000 starts work

    2000-2005 New offices in Switzerland (Zurich) and China (Tianjin) First large customer outside Denmark First large customer outside the Novo Nordisk Group

    NNIT - Milestones & key figures

    The situation: a fast growing business

    Time for scalability and standardization!

    4

    Create one central overview of services

    Minimize variation in services and agreements

    Anchor ownership and responsibility

    Clarify the relations between services

    Create a transparent cost model

    Ensure strategic development of services

    so how do we do this?

    We wanted to

  • It all starts with the mindset

    5

    From an organization of computer geeks.. A former internal IT department with friends in the business areas Focus on technologies and IT components not IT services and

    outcomes Reactive and unstructured development of services

    to a professional IT service partner IT professionals with knowledge of what their service does for the

    customer(s) Development of services aligned with customer needs and

    challenges and at the same time maintain our values and flexibility

    Must-win-battle Project Charter; September 2009

    The purpose of the Service Portfolio and Catalogue project is to

    establish a Service Portfolio and Catalogue framework that serves as the

    spinal cord of NNIT Operations. The framework is expected to cover a

    Service Portfolio and a number of Service Catalogues supported by

    tools, processes and governance. The portfolio will contain all existing

    NNIT Operation standard services as well as the cost of a number of

    these.

    Expected go-live June 2010

  • Establishment of the framework - based on ITIL best practices

    Track 1: Design of the

    Service Portfolio

    Track 2: Identify, structure, and

    describe services

    Track 3: Define governance

    and processes

    Track 4: On-going workshops, training and awareness campaign

    Organizational change management - Workshops, workshops and more workshops.

    Service Level Objectives

    Service Catalogue

    Service Portfolio vs.

    Service Portfolio Manager

    Purpose: create one common language!

  • Design of the Service Portfolio

    The Service Portfolio

    The service lifecycle structure (Idea, Analyse, Design, Realise, Retire)

    The data model (Business Service/Infrastructure services, Service Package, Supporting services, Enhancing services)

    The Service Catalogue templates

    Service (Name, ID, owner, functional area)

    The Service Plan template

    Tool decision:

    A simple repository in SharePoint

  • Identify and structure services - An inside-out approach

    Identify Workshops with every team in the organisation

    Listing of all services delivered NB: services vs. service activities

    Structure Definition of the Lines of Service Categorize according to the data model

    Relate services (supported by, enabling, dependent of, etc.)

    Describe Describe services into the Service Portfolio Identify what is relevant to the Service

    Catalogue Publish Service Catalogue

    Clarify the relations between services

    Agreements (OLAs) between departments

  • Service relations - A time-consuming activity..

    Service Package MS-SQL Server hotel

    MS-SQL Database

    MS-SQL Database Pool

    Database health check

    MS-SQL Single DB health check

    Database regulatory compliancy

    MS-SQL GxP compliancy

    Database service request fulfillment

    Core network

    Hosting

    Storage non-mirrored / mirrored

    Midrange Shared

    Windows server operation

    MS Windows Virtual Server

    MS-SQL backup

    Call center (SPOC)

    Service Delivery Management

    Component monitoring

    MS-SQL monitoring

    Reporting

    Service reporting

    Directory services

    DNS

    AD

    User administration

    User administration

    User access review

    Vulnerability assessment

    Patch monitoring

    Vulnerability scan

    Security Incident management and monitoring

    License management

    The Service Catalogue structure (phase 1) - time for the outside-in approach

    One Service Catalogue Business Services Infrastructure services (service packages) Enhancing services Requestable services

    Result:

    Impressive but too comprehensive and difficult to work with! Originally designed to meet the requirements of several target groups A re-structuring was needed!

  • The Service Catalogue structure (phase 2) - One year after go-live

    Standard Service Catalogue

    Strategic level (What can we provide) Target group: NNIT Presales and Client Management Purpose: input to bids and contracts

    Customer requirements

    Operational level (What have we agreed to provide) Target group: Customer Executives / IT departments Purpose: alignment of expectations on live services, KPI reporting

    Customer Service Catalogue

    Service Request Catalogue

    (What have we agreed to provide upon request) Target group: Users IT or end-users Purpose: To support daily Service Request and Change Management

    Service Governance - Dedicated roles and functions is a prerequisite!

    Service Owner

    Accountable for a Service throughout its lifecycle:

    design, operation, and development of the service

    adequately allocated resources and capabilities

    profit & loss

    Service Architect

    Responsible for design of services

    Assisting the Service Owner in preparing Service Plan and Business Cases

    Service Portfolio Management

    Ensures consistency and quality in the Portfolio and Catalogue

    Gatekeeper for the Service Portfolio phases

    Management reporting through Service Portfolio reviews

  • Service Portfolio Management process - transparency throughout the service lifecycle

    Idea

    Every development initiative, input from Account Plans, Market research, corporate strategy, etc.

    Analyse

    Estimation, planning, business cases, Investment Management

    Design

    Service Design, requirement specification, procedures, instructions, test, service descriptions for the Service Catalogue

    Realize

    Live Services , operation, continual service improvement (CSI), costing/budgeting

    Retire

    Services being phased out

    Idea Analyse Design Realize Retire

    The Service Plan - A tool to support strategic development of services

    Service Owner

    Create Business Case Apply for funding

    Division Management

    Single overview of proposed investments Prioritise investments Grant Funding Budgeting

    Define roadmap for the service / Line of Service Include input from Account Plans and market trends Create a Value Proposition Plan for development

    resources capabilities

    Innovative and customer focused services

  • Transparent costing - through the ABC model (Activity Based Costing)

    Cost per service activity

    Cost-drivers per service activity

    Identify and define cost of all services into one single cost base

    The same cost model was introduced for all services

    Finance department facilitated the process (ensured consistency) More accurate costing of services and improved transparency across the organization

    easier estimation for new proposals Improved budgeting/planning

    The yearly Service Portfolio review cycle

    JAN DEC

    MAY

    JUN JUL

    SEP APR

    AUG

    OCT

    NOV FEB

    MAR

    Service Plan Major update

    (input to AB, service roadmap)

    Service Plan Major update

    (input to Business Plans)

    Service Catalogue Major update

    Service Catalogue Minor update

    Service Plan Follow-up on initiatives

    ITOSMan SPM Review

    ITOSMan SPM Review

    ITOSMan SPM Review

    ITOSMan SPM Review

    Service Plan Follow-up on initiatives

    Service Plan Follow-up + ABC (Service review)

    Management Review

    Service Catalogue

    Service Plan

    Sourcing Plan

    Sourcing Plan Major update

    (input to service plans and AB)

    Sourcing Plan Minor update

    (input to business plans)

  • Our Service Portfolio portal

    The spinal cord of operations - knowledge is power

    Customer Portfolio

    Project Portfolio

    KPI reporting

    CRM system

    ERP system

    CMDB

    CSI initiatives

    Resource Mgt.

    system

    Time Mgt.

    Yoda: Value to you it will provide

  • Key learning points

    Make sure that you have Management commitment !!

    Get dedicated resources allocated !!

    Create a common understanding and a common language across the organization (make people think services!!)

    Key learning points

    24

    Start with simple data models (do not expect the same maturity level across every team)

    Involve stakeholders (also outside the organisation!)

    Be prepared for several service catalogues (one-size never fits all!)

    Start with the design the portfolio, the catalogue, and the processes then look for tools to support it. Dont expect to find one single tool to meet all your requirements.

    Start with ITIL best-practise then adapt to your organization.

    Accept that service Portfolio Management is not implemented overnight!

  • Thank you for attending this session.

    Please dont forget to complete an evaluation form!

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