PATHFINDER The Approach to achieve Real Time IT Service Ian Rutherford – Partner, Unisys

Do these sound familiar ? “I can buy it quicker and cheaper in PC World” What are these all symptoms of: Constraint. IT delivers to a contract Paranoia. Security is used as an excuse We know what’s best for you Conservative:stick to the old ways

Do these sound familiar ? “Why do I have a USB port on my laptop if I am not allowed to use it ?” What are these all symptoms of: Constraint Paranoia We know what’s best for you Conservative

Do these sound familiar ? “Sorry – you can’t have that service, the outsourcer won’t allow it” What are these all symptoms of: Constraint Paranoia We know what’s best for you Conservative

Do these sound familiar ? “Users don’t know what they are doing” What are these all symptoms of: Constraint Paranoia We know what’s best for you Conservative

The Gartner Roadmap Real Time Infrastructure Policy/Value-Based Service-Based Virtualised Standardised Rationalised Infrastructure resources pooled Dynamic optimisation to meet SLAs Services managed holistically Standard resources, configurations Consolidate to fewer Basic Uncoordinated infrastructure Reduce complexity Economies of scale Flexibility, reduce costs Service-level delivery Business agility Objective React Months to weeks Weeks Weeks to days Weeks to minutes Minutes Minutes to seconds Ability to Change None, ad hoc Fixed costs Reduced, fixed costs Fixed shared costs Variable usage costs Variable business costs Pricing Scheme Business Interface No SLAs Class-of-service SLAs Class-of-service SLAs Flexible SLAs End-to-end SLAs Business SLAs Gartner data 75% said they were in the earliest stages of maturity 95% said they fell into one of the three first stages of maturity Where does the previous set of slides leave you in the maturity model? Resource Utilisation Unknown Known Rationalised Shared pools Service-based pools Policy-based sharing Organisation None Central control Pooled ownership Service-oriented Business- oriented Consolidated Chaotic- Reactive: Ad hoc Reactive-Proactive: Life cycle management Proactive: Mature problem mgmt Proactive: Prediction, dynamic capacity Service: End-to-end service management Value: Policy management IT Management Processes Gartner: The Infrastructure Maturity Model Pre- Real Time Infrastructure Real Time Infrastructure

Where the focus is today Policy/Value-Based Service-Based Virtualised Standardised Rationalised Infrastructure resources pooled Dynamic optimisation to meet SLAs Services managed holistically Standard resources, configurations Consolidate to fewer Basic Uncoordinated infrastructure Reduce complexity Economies of scale Flexibility, reduce costs Service-level delivery Business agility Objective React Months to weeks Weeks Weeks to days Weeks to minutes Minutes Minutes to seconds Ability to Change None, ad hoc Fixed costs Reduced, fixed costs Fixed shared costs Variable usage costs Variable business costs Pricing Scheme Business Interface No SLAs Class-of-service SLAs Class-of-service SLAs Flexible SLAs End-to-end SLAs Business SLAs Many of the contracts today focus on achieving standardisation and rationalisation Key features: Reduced cost Known level of service, consistency Mature outsourcers will focus on: More for less Resource Utilisation Unknown Known Rationalised Shared pools Service-based pools Policy-based sharing Organisation None Central control Pooled ownership Service-oriented Business- oriented Consolidated Chaotic- Reactive: Ad hoc Reactive-Proactive: Life cycle management Proactive: Mature problem mgmt Proactive: Prediction, dynamic capacity Service: End-to-end service management Value: Policy management IT Management Processes Gartner: The Infrastructure Maturity Model Pre- Real Time Infrastructure Real Time Infrastructure

Does Standardisation / Consolidation Deliver Benefits ? Users are not able to do things for themselves – the dependency is on IT IT sets the service level and interaction method – not the business user Costs and choice are invisible to the business IT is still “free vend” But lets step outside Enterprise IT Internet world: Choice Self selection and self service – Last Minute.Com User defined service: Cost, date

Where is the benefit is to be had ? Service-Based Policy/Value-Based Virtualised Standardised Rationalised Infrastructure resources pooled Services managed holistically Dynamic optimisation to meet SLAs Standard resources, configurations Consolidate to fewer Basic Uncoordinated infrastructure Reduce complexity Economies of scale Flexibility, reduce costs Service-level delivery Business agility Objective React Months to weeks Weeks Weeks to days Weeks to minutes Minutes Minutes to seconds Ability to Change None, ad hoc Fixed costs Reduced, fixed costs Fixed shared costs Variable usage costs Variable business costs Pricing Scheme Business Interface No SLAs Class-of-service SLAs Class-of-service SLAs Flexible SLAs End-to-end SLAs Business SLAs Gartner created this model to describe the various “states” that IT organizations exhibit as they evolve, and to suggest target attributes that IT organizations should aim for as they try to move to a higher state. Each state is viewed across a number of dimensions that go beyond the physical infrastructure to include economic models, IT’s relationship to the business and IT management approaches, to name a few. What’s interesting about this model is that when Gartner showed it to a number of IT executives and asked them to place their IT organization along the curve, 75% said they were in the earliest stages of maturity, and 95% said they fell into one of the three first stages of maturity. What’s significant about that? The attributes that reflect a Real Time Infrastructure aren’t introduced until you get beyond these first three stages. This implies that the vast majority of the market is in a “pre-RTI” state, and will need to build some basic foundation attributes before they begin introducing RTI capabilities. This plays very well, as you’ll see later, into the service capabilities we can deliver today. [The following is additional background – summaries of each IT ‘state”] Standardized: Take ownership; implement standards to reduce complexity, maximize process and staffing efficiency, and create the potential for automated administrative tools. Rationalized: Reduce the number of physical sites where IT assets are deployed to maximize the efficiency of administrative staff and to create shared IT management processes; reduce the number of IT assets, such as servers, storage devices and OS instances. Virtualized: Remove the boundaries between IT assets, pooling resources for sharing and dynamic allocation. Service-Based: Manage IT assets as parts of an overall service topology, rather than as independent components. SLAs are meaningful to the business and directly implemented through management tools. Policy-Based: Services are managed holistically, and resources are dynamically and automatically balanced between services based on business priorities and business value. Resource Utilisation Unknown Known Rationalised Shared pools Service-based pools Policy-based sharing Organisation None Central control Pooled ownership Service-oriented Business- oriented Consolidated Chaotic- Reactive: Ad hoc Reactive-Proactive: Life cycle management Proactive: Mature problem mgmt Proactive: Prediction, dynamic capacity Service: End-to-end service management Value: Policy management IT Management Processes Gartner: The Infrastructure Maturity Model Pre- Real Time Infrastructure Real Time Infrastructure

Critical Components The Approach to Deliver Value Model the business interaction Quantify the business value Identify the IT investments and cost reductions Identify the commercial model to achieve the benefits Request example: 2 requests / year 50% rework rate = 35,000 reworks/annum IT impact considered Business impact not considered

Pathfinder Blueprints = accelerated results Cost & quality Benchmarks Service models typical current & nexgen future Business impact (productivity, value) Technology roadmaps Commercial best practice Demonstrates: How a service benefit is realised as a cost saving How the cost saving is embodied commercially Anyone can come in an do analysis Blueprints exist

Pathfinder Roadmap Service Anywhere Service Management Service Leadership ITIL Cobit SixSigma Flexibility Business Aligned Visibility Optimised Build & Release Server Consolidation On-net True Mobility Identity Directory Services Storage Consolidation Service Anywhere Hardware Standardisation Printer Consolidation Soft Imac Asset Discovery & Management Mail Consolidation Collaboration Technology Standardisation Technology Consolidation

Scenarios in business terms Service Anywhere - Setting Up a New user Moving from an IT defined process to a service that is aligned to the business and can be flexed to changing requirements Service Anywhere - Move a user Taking the pain out of moves so that user knows they will receive the same look and feel on any computer in their organisation regardless of physical location Service Leadership Change the way IT Services are managed from a reactive and difficult to change to a select what you want, when you want with known cost and product

Service Anywhere Scenario - Setting up a new user Business issue The user of the service has little control over the service Little control of visibility of the performance of the service. Little flexibility to adapt or alter the SLA, based on business needs Little visibility of options and choices for change. Business need Simple access to entitled systems Interactive catalogue portal of IT services Interactive selection of service request priority – based on business need Interactive selection of schedule to suit business needs Visibility of cost

Service Anywhere Scenario - Service Leadership Business issue IT infrastructure services are governed by service levels business has little visibility of: current actual performance cost of the service ability to flex the user community from one service level to another as business demands dictate Business need On-line service visibility On-line SLA flexibility Before and after cost assessment

Example of 3D-VE Models

Example of 3D-VE Models

Business Savings Measurable Productivity AS-IS TO-BE £267.97 £37.60

IT Savings Measurable TCO summary Overall saving 38% Amortisation of asset over 5 years 8% Architecture reduces the hardware to user dependency 5 year warranty support available today Desktop data centre reduces dependency on desktop Improved Asset Utilisation and Management 4% Reduce desktop:user ratio to 1:1 Accurate software licence control Reduced software licence requirements Standardisation of desktop 18% Reduced configuration effort Reduce move volumes and complexity Intelligent ITIL Service Desk 8% Reduced deskside activity Single Service Desk Reduction in annual service cost by Year 5: £16m

Model Office – What will you see? Adding a New User Biometric Logon Custom Portal Service Request Service Catalogue

Model Office – What will you see? Biometric Logon Virtual Move Same look & feel Integrated Desktop & Phone

Model Office – What will you see? Virtual SLA and

Business Case Components Total IT Non-IT

Commercial & Financial Framework Service Level Agreements Contract structure & invoicing Staff Transfer Risk and Reward Benchmarking Gain sharing Risk identification and management Termination assistance Financial Outsourcing financials Contract price flexibility VAT and duties Invoicing

Risk and Reward Best Practice Continuous Improvement Programme Service Credits Service Improvement Plan Retention Payments Heads of Agreement Service Level Agreements FAILED Service Level Agreements Service Improvement Plan Critical Business Payments HIT Retention Payments Key Performance Indicators CSIP HIT Consumption Values Service Improvement Plan Retention Payments So we show clients a risk and reward structure. We look at our relationship between risk and reward where we have service level agreements, key performance indicators (KPI’s) and also continuous service improvement. We want to be able to see, if we fail a service level, how that is going to be fixed. Is there going to be service improvement plan? Is there going to be a retention payment or a service credit? If a KPI is missed, there should be some sort of retention until we get it fixed and then we get paid. If you put a service improvement plan in place which takes cost out of the delivery of the service then we should see gain share, so we should see some money back. A good example is printer consolidation. Our takeover approach may be to transfer the existing estate directly across to Unisys. As we design transformation of the printing estate, we will significantly cut the maintenance and support costs of the current estate. We would propose that an element of the savings made by consolidating would be shared with Unisys, whilst the customer would see an overall reduction in costs, after the cost of investing in the new estate. And we should also see, if we fail a service level that we then correct, some of our retention paid back to us because this is not about penalising the vendor, it’s about encouraging the vendor to do the right thing. Key Performance Indicators FAILED Continuous Service Improvement Plan Gain Share

The Pathfinder Approach Has a direct and positive impact on business processes that rely on IT infrastructure Result in improved quality of service Reduces the direct costs of IT service delivery Provides cost clarity and control Integrated contractual and commercial framework Next Step: INSIDE OUTSOURCE - WORKSHOP

Nexgen approach can significantly impact business performance Summary Nexgen approach can significantly impact business performance Business value is the key to the business case Investment in Nexgen will reduce overall IT costs Visible commercial practice