Service Integration and Management / MultiSourcing Services Integrationn

© 2013 National University of Singapore unless otherwise stated. All Rights Reserved.

www.itsmf.org.sg itSMF Singapore 2015 Annual Conference - ITSM Leadership Congress 1 (Total Slides=56) 09/03/2015 10:32 am - d:\iss\itsmf 2015-

03 seminar\itsmf 2015 - service integration.pptx

Service Integration and Management (SIAM)

Goh Boon Nam

Institute of Systems Science, NUS

(in collaboration with UXC Consulting)


www.itsmf.org.sg itSMF Singapore 2015 Annual Conference - ITSM Leadership Congress

Agenda

Introduction Some SIAM Best Practices Outsourcing of SIAM Function

2 09/03/2015 10:32 am - itsmf 2015 - service integration.pptx



Introduction




My Organisation

Institute of Systems Science www.iss.nus.edu.sg Part of National University of Singapore Support national IT competency development

needs Faculty of practitioners from industry with

average of more that 15 years experience each Caters to working IT professionals Post-Graduate Programmes Executive Programmes Industry Research Consulting


http://www.iss.nus.edu.sg/�



About Myself


ITIL® Expert, COMIT (Certification in Outsourcing Mgt for IT), CITPM, CGEIT, TOGAF, CBAP, Chartered IT Professional 20 years of IT management experience Process Improvement Enterprise Architecture and Planning IT Operations Mgt Applications Mgt

Consultancy for private and public sector

CMMI Enterprise Architecture IT Strategy

Goh Boon Nam Chief, New Initiatives Institute of Systems Science



Managing Multiple Suppliers/Vendors – Is it Easy?


Is it easy to manage multiple vendors?

What is the common issue that occurs when incidents occur?



Does ITIL® Cater Specifically to Managing Multiple Suppliers?


Not specifically - Only a few small sections specific to multi-vendor situation (e.g. Service Strategy - “3.7.3. Multi-Vendor Sourcing”) The rest of ITIL apply generally to both multi-vendor or non multi-vendor environments.

http://www.amazon.com/gp/product/images/0113313047/ref=dp_image_z_0?ie=UTF8&n=283155&s=books�



What is the Industry Term for Managing Multiple Suppliers?

2 main terms being used Service Integration and Management

More common term used in UK

Multisourcing Services Integration More common term used in US




Service Integration and Management - Definition

No standard definition but common meaning “Service integration and management lets an organisation

manage the service providers in a consistent and efficient way, making sure that performance across a portfolio of multi-sourced goods and services meets user needs.” Source: GOV.UK

“The multisourcing service integration (MSI) role is undertaken by the client, or by a third party contracted by the client organization with an individual contract to act as its agent in coordinating and integrating service delivery, in an environment that uses multiple internal and external service providers to deliver IT and business process services. The term "SIAM" comes from U.K. government usage and stands for service integration and management. The terms "MSI" and "SIAM" may be used interchangeably, as well as combined (MSI/SIAM).” Source:




Is SIAM New?

How many of you had to work in a multi-supplier/vendor environment since you started work?

When did you start work?




What’s New with SIAM?

Many organisations now outsource almost all their IT And are transitioning from single vendor outsourcing model

to multiple-vendors model (see next few slides)

Total outsource to multi-vendors is complicated

Arising from above Best practices specific to SIAM (and especially for total-

outsourced IT) are starting to be compiled Public

Proprietary

Service providers starting to offer SIAM function as a dedicated service

ITSM tools catering better to SIAM functionality




Change in SIAM and IT Dept Structure


IT Dept Mgt

Step1- Traditional Multi-Sourcing

Server Section

In-House

Out-Source

Network Section

In-House

Out-Source

App. Section

In-House

Out-Source

etc...

In-House

Out-Source

Main Vendor

Step2 - Total Outsourcing Single-Sourcing

Sub-Vendor

Sub-Vendor

Sub-Vendor etc...

IT Dept Mgt & some retained staff

Step3 - Total Outsourcing Multi-Sourcing

Vendor #1

Vendor #2

Vendor #3 etc...


Sufficient depth & breadth of in-house expertise to manage multiple vendors

Expertise lost in step 2.

Even if retained, now need it to be

more structured & formal as all work now outsourced



Why the Need for Better SIAM Now?

Total outsourcing via multi-sourcing increasingly being used more complicated to manage than single-sourcing IT Dept had lost multi-sourcing competencies from in-

house sections when originally switched to total single-source outsourcing

Growing diversity of possible services and service providers

Increasing complexity of services High dependence on IT for business functions Many businesses now operate 24x7 Rising expectations of external and internal

customers/users




Agenda





Some SIAM Best Practices




Some SIAM Best Practices - Agenda

Span of control – use of lead vendor concept Understand vendor dependencies

Use of technical catalog Beware of availability dependencies

Structure the vendor agreement Overall Structure Service Provider Interfaces Impose Cooperation Service Level How to introduce such agreements

Organise to manage multi-vendors Build Relationships Set up SIAM Availability and Performance Monitoring Set up SIAM ITSM Tool Interfaces Carry out SIAM Services




How many agreements? Span of Control (1)


Vendor #1

Vendor #2

Vendor #3

Vendor #3

Vendor #4

Vendor #5

Vendor #1

Vendor #2

Vendor #6

Vendor #7

Option A

Option B

Which option is easier to manage?

Vendor #8

Vendor #9





Span of Control (2) - Use Lead Supplier/Vendor Concept


Lead Vendor

#1

Lead Vendor

#2

Lead Vendor

#3

Sub-Vendor

Sub-Vendor

Sub-Vendor

Sub-Vendor

Sub-Vendor

Sub-Vendor

Lead Vendor concept as alternative to earlier Option B




Understand the Vendor Dependencies - Technical Service Catalog (1)


http://www.hci-itil.com/ITIL_v3/books/2_service_design/service_design_ch4_1.html

Copyright © AXELOS Limited 2011. All rights reserved. Material is reproduced under licence from AXELOS

http://www.hci-itil.com/ITIL_v3/books/2_service_design/service_design_ch4_1.html�






Understand the Vendor Dependencies - Technical Service Catalog (2)


Example of Technical Catalog entry for an ERP service

Copyright © AXELOS Limited 2011. All rights reserved. Material is reproduced under licence from AXELOS



Understand the Vendor Dependencies - Beware of Availability Dependency


Database (vendor1)

App Server

(vendor2)

Network (vendor3)

PC (vendor4)

ERP Service Required Availability in SLA = 99.9%

99.9% 99.9% 99.9% 99.9% x x x = 99.6%

99.975% 99.975% 99.975% 99.975% x x x = 99.9%

Fail !

Pass



Structure the Vendor Agreements (1) - Overall Structure Per Agreement


Adapted from http://integrisapplied.com/wp-content/uploads/2012/07/MSI-Brochure-2012-07.pdf

(Responsibilities towards other

providers)

(Includes Targets, Incentives, Penalties)

(SOW & tech specs)

(ITSM processes to follow)

(Generic contract specs & Priciing)

(Governance& Integration Obligations)

http://integrisapplied.com/wp-content/uploads/2012/07/MSI-Brochure-2012-07.pdf�











Structure the Agreements (4) - OLA Service Provider Interfaces


definitions Process

specification Service (e.g. ERP service)

relationship Sourcing

Change mgt

Incident mgt

etc ...

contract A

Service (ERP app)

contract B

Service (Server)

contract C

Service (etc...)

SPI

SPI SPI

Standard

Standard

Standard

Based on AXELOS ITIL® material. All rights reserved. Reproduced under licence from AXELOS

SPI identify/define interactions between provider and - processes - other providers - customer - users



Structure the Agreements (3) - Impose Cooperation Service Level


http://www.straitstimes.com/sites/straitstimes.com/files/Ah%20Boys%202603e.jpg

How to make multi- parties cooperate with each other? If possible, impose Shared Service Level for combined service with other vendors (in ADDITION to the usual separate service levels for their individual services)

http://www.straitstimes.com/sites/straitstimes.com/files/Ah Boys 2603e.jpg�



How to Introduce Such Agreements

But we already have existing agreements in force with existing vendors ...

How then to replace with new type of agreement? Big bang enterprise wide By Division starting with Pilot By similar types of service e.g. infra / app Starting only from new contracts or contracts due for

renewal

How much of a change to existing agreements Replace Retro-fit existing Change to supporting documents






Some SIAM Best Practices - Agenda



Structure the vendor agreement Overall Structure Service Provider Interfaces Impose Cooperation SLA How to introduce such agreements





Organise to Manage Multi-Vendors



Can be in-house or outsourced




Don’t Run Ops Based on Agreements - Build Relationships Instead


Throwing the “book” at (i.e. using contract clauses to threaten) providers is NOT the way to manage them on a day-to-day basis.

Build “good personal working relationships” with them instead. “People make SIAM work” https://www.axelos.com/CMSPages/GetFile.aspx?guid=cbf5524d-2d6b-4ac9-ad5c-c0e1bd6e2899

https://www.axelos.com/CMSPages/GetFile.aspx?guid=cbf5524d-2d6b-4ac9-ad5c-c0e1bd6e2899�












Types of Relationships To Build

With vendors’ service owners, managers and practitioners

Also include vendors’ process owners, managers and practitioners

Might also differentiate between type of vendors Customised Services & Integrated Services

recommend Close Relationship

Configurable Standard Services recommend Good Relationship

Non-Configurable Commodity Services recommend Contractual Relationship




Set Up SIAM Performance & Availability Monitoring (1)


http://www.slideshare.net/SLCorporation/end-toend-monitoringintegration

http://www.slideshare.net/SLCorporation/end-toend-monitoringintegration�





End to End Monitoring

Adapted from http://www.slideshare.net/SLCorporation/end-toend-monitoringintegration

http://www.slideshare.net/SLCorporation/end-toend-monitoringintegration�





http://www.manageengine.com/products/applications_manager/network-application-monitoring.html

http://www.manageengine.com/products/applications_manager/network-application-monitoring.html�



Set up SIAM ITSM Tool Interfaces (1)


Adapted from http://www.slideshare.net/serviceflowcorp/service-flow-howtointegrateitsmsoftware

Vendor’s ITSM Tool

Customer’s ITSM Tool

End user creates

new ticket

Create new ticket

Transfer to support group:

Vendor 1

Create new ticket

Assign ticket

Update ticket information:

Status: Assigned

Handle ticket

Resolve ticket: Status:

Resolved

Update ticket

information: Status

Update ticket

information: Worklog

Update ticket info:

Status: Solved

End

End

?? ?? ?? ??

The Need for Tool Integration

http://www.slideshare.net/serviceflowcorp/service-flow-howtointegrateitsmsoftware�









Vendor 2

Secure Cloud Infrastructure

Service-Flow Customer X

Network

ITSM Tool X

Vendor 1

ITSM Tool Y

ITSM Tool Z

SSL

SSL

SSL Adapter

X

Adapter Z

Adapter Y

Broker

Adapted from http://www.slideshare.net/serviceflowcorp/service-flow-howtointegrateitsmsoftware






Not just a technical Issue Mapping needed between different vendors’ definitions

Customer ITSM Tool Urgency Definition

Vendor#1 ITSM Tool Urgency Definition

Vendor#2 ITSM Tool Urgency Definition

1 Very High 1 High 1 Critical 2 High 1 High 2 High 3 Medium 2 Medium 3 Medium 4 Low 3 Low 4 Low 5 Very Low 3 Low 4 Low



Set Up SIAM Governance (1)

Strategic

Tactical

Operational

Governance Bodies Scope

ICT Strategic Committee

Executive Vendor Review

SIAM Strategy

Contract Review

Service Delivery Review

Measurment and Compliance of Sourcing

Performance

Change and Release Advisory Board

ITSM Forum

End to End Performance Service Performance

IT Change Management

Evaluate, Direct, Monitor



Source: UXC Consulting

09/03/2015 10:32 am - itsmf 2015 - service integration.pptx 36



Carrying Out SIAM Services


http://www.i-pupil.com/attachments/article/39/Service%20Integration%20%20Management%20%28SIAM%29%20Service%20Descriptions%20v8a.pdf

Source: Draft UK Govt SIAM Framework

http://www.i-pupil.com/attachments/article/39/Service Integration Management (SIAM) Service Descriptions v8a.pdf�






Some SIAM Best Practices - Summary



Structure the vendor agreement Overall Structure Service Provider Interfaces Impose Cooperation SLA How to introduce such agreements





Agenda





Outsourcing of SIAM Function




Is SIAM Easy? Can we Outsource SIAM? (1)


SIAM vendor

Step3b - Outsourcing Multi-Sourcing

plus SIAM outsourced

Vendor #1

Vendor #2

Vendor #3 etc...

41

Main Vendor

Step2 - Total Outsourcing Single-Sourcing

Sub-Vendor

Sub-Vendor

Sub-Vendor etc...


Step3 - Total Outsourcing Multi-Sourcing

Vendor #1

Vendor #2

Vendor #3 etc...





Is SIAM Easy? Can we Outsource SIAM? (2)


http://pixel.nymag.com/imgs/daily/intel/2012/10/16/16-truman.w529.h352.2x.jpg

If anything goes wrong, can we now blame the SIAM vendor? US President Truman “The Buck Stops Here” – i.e. you can delegate/outsource your responsibility (i.e. work) but not your accountability

http://pixel.nymag.com/imgs/daily/intel/2012/10/16/16-truman.w529.h352.2x.jpg�

http://pixel.nymag.com/imgs/daily/intel/2012/10/16/16-truman.w529.h352.2x.jpg�



If outsource SIAM, why not outsource all of IT? Yes or No (1)


SIAM vendor

(4) Total Outsourcing Multi-Sourcing

plus SIAM outsourced

Vendor #1

Vendor #2

Vendor #3 etc...

SIAM vendor

(5) Why have IT Dept? Why not outsource all

of IT?

Vendor #1

Vendor #2

Vendor #3 etc...





If outsource SIAM, why not outsource all of IT? Yes or No (2)

44 09/03/2015 10:32 am - itsmf 2015 - service integration.pptx http://www.i-pupil.com/attachments/article/39/Service%20Integration%20%20Management%20%28SIAM%29%20Service%20Descriptions%20v8a.pdf

Draft UK SIAM Framework









Options for SIAM/MSI Provider


• Control is maintained and the internal BU is an independent agent

• Internal SIAM provider may not have the skills to be effective

• Heavy investment required in internal skills and toolsets

• Lack of economy of scale for internal SIAM provider

Internal Multi Supplier Integration (MSI) “Do It Yourself”

• Some administrative burdens are passed on

• Internal BU still manages day-to-day supplier relationships making cost savings difficult to achieve

• Provider has no real control and is unable to help beyond limited scope given

External MSI for Contract Management

• Well-chosen provider may experience, methods, toolsets and economy of scale

• Provider can play off suppliers as provider may not be responsible for the end-to-end experience

External MSI for Partial SIAM Services (e.g. Service Desk)

• Provider may have experience, methods, toolsets and economy of scale

• Provider has more “skin in the game”

• Provider has a one-stop shop for customer experience

• If SIAM provider not good, client can lose control

External MSI for Complete SIAM

services

Adapted from UXC Consulting



The SIAM Journey

PLAN

• Develop a SIAM strategy, building the business case and action plan

• Scope (what’s in/what’s out)

• Service Definition (Service Portfolio)

• Who does what? (in-house or outsource)

• What does success look like and how are you going to measure it?

DO

• Go to market for SIAM Partner or setup your function

• Document/Agreements (OLAs/SLAs/Contracts)

• Negotiation with affected suppliers about changes required/new contracts

• Project Implementation and Transition Planning

ACT

• Determine a continual service improvement plan

• Initiate business transformation activities

• Prioritise innovation activities that rapidly add business value

CHECK

• Monitor, measure, report, take remedial action

• Review SIAM model performance

• Review ongoing IT Service performance with the business

• Complete a new baseline maturity assessment





Example SIAM Provider Services

Unconsidered“We haven’t thought about

SIAM as a solut ion”

Idea / Planning“We know about it and we’re

planning our approach”

Scoping / RFP“We’re finding the best

provider to meet our needs”

Transition / Implement“We’re working with our

provider to implement SIAM”

Transformation“Our SIAM model is in place and we’re taking next steps”Customer

Position

UXC Offerings

Education / Advisory Consulting

Capability UpliftSIAM Strategy Development

SIAM Assessment / Readiness

Business Case Development

SIAM Best Practice Modelling

SIAM Operate (Managed Service)

Transition Planning

RFP Response

Innovation / Cycling

SIAM Assessment / Readiness Understand your organisations readiness to leverage SIAM Visualise the roadmap for SIAM success Know the quick wins to put in place in preparation for the journey ahead

SIAM Best Practice Modelling Leverage UXC’s existing best practice mode Tailor the model for your organisation Build with confidence based on best practice thinking and experience

SIAM Strategy Development Operating Model design People / Process / Products / Partner Development Measures / Success Factors

Business Case Development Return on Investment Analysis and Modelling Documented clear value proposition for SIAM implementation and operation Allow sound decision making by executive management

RFP Response / SIAM Operate Complete SIAM functional capability aligned to business needs End-to-End Project Delivery Ongoing management and delivery of the SIAM function

Transition Planning Manage transition to a SIAM model Strong focus on governance, Organisational Change, and One Way, Same Way Put in place solid foundations and generate early quick wins

Capability Uplift Improve current SIAM and supplier performance Recover SIAM initiatives that are not meeting objectives Retain business / IT confidence in SIAM strategy

Innovation / Churn Transform SIAM into an organisational strategic asset Enable rapid supplier cycling to gain maximum value from IT Service towers Match development speeds to the pace of the business





Staged Transformation Towards the Future State

48


09/03/2015 10:32 am - itsmf 2015 - service integration.pptx



SIAM org chart (example)

49


09/03/2015 10:32 am - itsmf 2015 - service integration.pptx



Selecting a SIAM Provider - Criteria 1. Neutrality – lack of conflict of interest (either not an existing vendor for

other services, or another part of existing vendor able to set up effective Chinese Walls)

2. Experience in SIAM

3. SIAM governance/management framework

4. ITSM tool multi-vendor integration capability

5. Service Catalog/CMDB/Performance Monitoring multi-vendor integration capability

6. Proven end-to-end service quality

7. Ability to maintain good collaborative working relationship with multi-vendors

8. Ability to cater to handover to new SIAM provider at end of contract period (i.e. minimal lock-in)


NB: 2 to 7 also applies to some degree to your lead vendors as they have to do SIAM (Service Integration and Management) of their sub-vendors.



Governance of Outsourced SIAM

7

Stra

tegi

cM

anag

emen

tO

pera

tions

/Ex

ecut

ion

<Customer>Innovation & PPM Portfolio Governance

<Customer>Architecture Governance

Serv

ice

Prov

ider

<Customer>Sourcing

Governance

<Customer>ICT

Governance

SIAMArchitecture &

InnovationBoard

<Customer>ICT Service

and Process Governance

‘Other’ domains,Incl: Risk, TCO,P&C, Business

Alignment, QMS

SIAM Provider Contract Performance & compliance review

Board

<Customer>Contract

Management

<Customer>Service & Process

Review Boards

SIAMPPM/PMOPortfolio

Review Board

SIAM Service Delivery Management

• Daily Service & Major Issue Reviews

• Escalations• Transition Boards• QMS, ITSM, PPM

standards & assurance

<Customer> Strategic Plan

SIAM/<Customer>Project &

Programme Boards

Internal/external providerService Operation &

Transition, incl Incident/Change, Request ownership

Internal/external supplierProject / Programme

Manager, and/or SMEs & project team

SIAM/<Customer>Design Assurance

(Functionality, Availability, Capacity,Continuity, Security SAC test & report)

Daily/Weekly Monthly Annual

SIAMProcess

ImprovementCouncils

Internal/external service provider

Process Owners and Representatives

Stra

tegy

& D

irect

ion

to su

pply

chai

n

Advi

ce, id

eas,

inov

atio

nan

d re

port

s fro

m su

pply

chai

n

Exec

utiv

e

SIAMCSI Plan

Service ProviderBusiness

Plans

<Customer> CSI strategy





Other Outsourcing Models to obtain SIAM Capability

Building the skills in-house (no outsourcing) Obtaining consultancy and training to build the

skills (consultancy/training outsourcing) Conventional SIAM Outsourcing Outsourcing to Build the capability, (co-)Operate

over a period of time, Transfer (BOT) back to client to totally take over




Summary



Effective SIAM



Q&A




Acknowledgements & Notices

ITIL® is a registered trade mark of the AXELOS Limited

Quoted text is from AXELOS material - all Copyright © AXELOS Limited 2011. Reproduced under licence from the AXELOS. [Any original emphasis excluded. Emphasis then added for purpose of this presentation.]

Text in italics is based on AXELOS ITIL® material. Reproduced under licence from the AXELOS

© 2015 NUS unless otherwise stated. The contents of this document may not be reproduced in any form or by any means, without the written permission of ISS, NUS, other than for the purpose for which it has been supplied



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Service Integration and Management / MultiSourcing Services Integrationn