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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. Example of 3D-VE Models

17. Example of 3D-VE Models

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

19. IT Savings Measurable TCO summary
Overall saving %
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 %
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

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

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

22. Model Office – What will you see?
Virtual SLA
and

23. Business Case Components
Total IT
Non-IT

24. 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

25. 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

26. 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

27. 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