1. business and industrial

Service Integration and Management
Rachel Seaniger, UXC Consulting
Senior Consultant & National ITSM Practice Lead
March 2015
AGENDA
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MULTI SUPPLIER INTEGRATION (MSI)
INTRODUCING SIAM
IS SIAM DIFFERENT TO ITIL?
TYPICAL SIAM CANDIDATE
SIAM JOURNEY
SIAM BENEFITS
HOW TO GET STARTED
Multi Supplier Integration (MSI) is mainstream and growing…
Multi-Supplier Integration (MSI) has major benefits…
Organisations can
leverage “best-ofbreed” capability
Maximise capability
by having the right
sourcing at the right
time
Operational costs and risks
shared with suppliers
Flexibility to scale up /
scale down where required
Allows internal IT to
focus on core
business
Reduced costs
through leveraging
supplier economies
of scale
However, the MSI model has significant challenges
Strategic
Challenges
Tactical
Challenges
Operational
Challenges
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Aligning strategic vendor behaviours to achieve required business outcomes
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Each tower is cost-effective, but overall value/ROI is unclear/poor
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Security of data and services across multiple providers is difficult to manage
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Conflicting cultures, operating models, SLA’s across providers
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Non-collaborative and/or silo-type behaviours
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One underperforming vendor becomes a “single point of failure”
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Boundary issues – responsibilities “falling through cracks” with handoff problems
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Lack of accountability for group behaviour
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Client does not cover approach to vendor integration in sourcing strategy or RFPs
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Lack of visibility of end-to-end (E2E) performance
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Recurring problems along with incident ownership and buck-passing issues
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Each provider meets service levels but end users dissatisfied
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Client underinvests in having the right level of vendor management in place
Organisations are seeking a real solution…
• A multi-sourced solution that delivers a singular, consistent, and
highly usable customer experience
• Reduced costs of IT overheads for managing multiple suppliers
• A single source of the truth when working with multiple suppliers
• Flexible IT services which are in lockstep with business priorities
• Reduced exposure to risk and compliance issues
Introducing SIAM
“Service Integration and Management
(SIAM) lets an organisation manage the
service providers in a consistent and
efficient way”
It ensures that performance across a
portfolio of multi-sourced services meets
business needs
Is SIAM different to ITIL?
• SIAM is an extension to ITIL
• It takes many of the concepts within ITIL (eg. Supplier
Management, Service Level Management, etc.) and
applied then to managing a multi-sourced environment
• Currently there is no best practice framework dedicated
to SIAM
• Via Google you can find lots of white papers
• Via Linked In you can see lots of discussions
Why SIAM?
• A superb customer
experience
Internal
Service
Provider
Internal
Service
Provider
• Seamless end-to-end
management of multiple
service providers
SIAM
Function
External
Service
Provider
External
Service
Provider
External
Service
Provider
• A single version of the
truth
• Supplier expertise
applied to the right
areas at the right time
without ongoing
cost/risk
The evolution of sourcing models
Model 2 – Selective Sourcing
Model 1 – Traditional Outsourcing
(~2003)
(~2000)
Client
Supplier
Client
Supplier
1
Supplier
2
Supplier
3
Model 3 – Selective Best-of-Breed
(~2005)
Client
Model 4 – SIAM Services
Supplier
1
Prime
Supplier
Supplier
2
Supplier
3
(~2014+)
Client
Supplier
1
SI
Provider
Supplier
2
Supplier
3
SIAM Key Components
Internal Stakeholders
Retained IT
Organisation
Business Unit
Business Unit
End to End
Performance
Monitoring
Vendor
Management
Service Integration
Service
Delivery
Coordination
Enterprise
Systems
Relationship
Coordination
1st Tier
Service Desk
Application
Development
Application
Management
Network
Services
Distributed
Services
Service Towers
Value creation through integrated service
Service Integration Model
BUSINESS &
CUSTOMER VIEW
BUSINESS
SERVICES
INTEGRATED IT
SERVICE VIEW
INTEGRATED
BUSINESS SERVICE
CATALOGUE
SUPPLIER SERVICE
COMPONENT VIEW
MANAGED SUPPLIER
VIEW
SERVICE
CONFIGURATION
VIEW
MANAGED
SERVICE
COMPONENTS
SUPPLIER A
SUPPLIER B
SUPPLIER
SERVICE LEVELS
IT ASSETS
CONFIGURATION
ITEMS
SIAM Options
Internal Multi Supplier
Integration (MSI)
“Do It Yourself”
• Control is maintained and the internal BU is an independent agent
• Internal BU is unlikely to have the internal skills to be effective long term
• Heavy investment required in internal skills and toolsets
External MSI for
Contract Management
• 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 meet client and supplier needs
External MSI for
Service Management
Complete External MSI
• Provider has experience, methods and toolsets
• Provider can play off suppliers as they are not responsible for the customer
experience
• Provider has experience, methods and toolsets and has “skin in the game”
• Provider has a one-stop shop for customer experience (Self-service & Service Desk)
• If badly managed, internal providers can feel a loss of overall control
Critical Success Factors for SIAM
Strong Governance
End User Experience
Business Transformation
(OCM)
“One way, Same way”
Processes
Consolidated and Integrated
Toolsets
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An agreed operating model within the organisation, SIAM provider, and service towers
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Each area clearly understands roles/responsibilities and escalation points
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A deeply embedded culture of customer care and focus
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The SIAM provider understands customer business priorities, challenges, and
opportunities
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A strong emphasis is placed on Organisational Change Management during transition
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A continual pulse check is put in place to continually align to new ways of working
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All IT staff, regardless of their location understand and follow one set of ITSM processes
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Process roles and responsibilities are clear, with escalation points within the SIAM
function
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Where possible the organisation, SIAM provider, and Service towers use the same tools
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Any tool integrations are predicated on maintaining customer experience consistency
Governance
Governance Bodies
Scope
ICT Strategic Committee
Strategic
SIAM Strategy
Executive Vendor Review
Contract Review
Tactical
Service Delivery Review
Operational
Change and Release
Advisory Board
ITSM Forum
Measurement and
Compliance of Sourcing
Performance
End to End Performance
Service Performance
IT Change Management
Evaluate,
Direct,
Monitor
Evaluate,
Direct,
Monitor
Evaluate,
Direct,
Monitor
Typical candidate for SIAM (profile)
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Medium / Large size organisations (100+ IT Staff)
Mounting business pressure to provide rapid value
Expectation to continue to grow multi-sourcing capability
Challenges in delivering a consistent customer experience
Concerned about keeping up with the pace of change
Exploring bi-modal IT service delivery
Uneasy about current Service Management capability/skills
Moving from “build and operate” to “aggregate and deliver”
The SIAM Journey
PLAN
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Develop a SIAM strategy, building the business case and action
plan
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Scope (what’s in/what’s out)
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Service Definition (Service Portfolio)
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Who does what? (in-house or outsource)
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What does success look like and how are you going to measure it?
DO
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Go to market for SIAM Partner or setup your function
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Document/Agreements (OLAs/SLAs/Contracts)
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Negotiation with affected suppliers about changes required/new
contracts
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Project Implementation and Transition Planning
ACT
CHECK
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Determine a continual service improvement plan
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Monitor, measure, report, take remedial action
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Initiate business transformation activities
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Review SIAM model performance
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Prioritise innovation activities that rapidly add business value
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Review ongoing IT Service performance with the business
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Complete a new baseline maturity assessment
SIAM Benefits
Sourcing Flexibility
Decreased time to market, with increased business/IT alignment
Breadth of capability offerings available but still well controlled
Supplier competitiveness and lower switching costs drives down
costs
• Costs and risks are shared with integrator and suppliers
• Reduced recruitment and sourcing administrative burden
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How to get started – 5 steps
1.
Consider your business
drivers and vision
• How will your organisation change over the next 5 years?
• Where is technology provision misaligned from business vision/goals?
2.
Understand your current
state
• Undertake a SIAM Readiness Assessment
• Build a roadmap for management of multiple suppliers
3.
Talk to others and see what
they’re doing
• Consult with industry partners and forums
• Gain an understanding of customer success stories and challenges
4.
Signal intention to current
suppliers and involve them
• Engage management within suppliers and discuss benefits/challenges
• Ask about their experience with Supplier Integration
5.
Engage the business on
customer experience
• Undertake stakeholder analysis – identify and engage business advocates
• Consider development of a Customer Experience strategy
Thank You!
Rachel Seaniger
IT Senior Consultant & National ITSM Practice Lead
rachel.seaniger@uxcconsulting.com.au
0417 882 685