Juergen Deuter

Best of IT Service Management

Agenda

1

2

Challenges of IT Delivery

Service oriented IT Delivery

Aligning IT with business strategies and goals is essential, because IT

is a key business enabler

Organizations need to:

Drive top-line revenue

growth

Continue to deliver

bottom-line profit growth

Run the business while

changing the business

Which creates specific IT needs:

Reduce the cost and complexity of IT

operations

Address governance, operational risk

and compliance challenges

Deliver new value from existing assets

(information and people)

Increase the flexibility of the business

Partner with the CEO to drive innovation

»

»

»

In response to these pressures, the IT services marketplace is

changing profoundly - and so is IBM

Asset-based modelsLabor-based models

Global deliveryLocal labor sources

Standardized servicesCustomized services

Selective out-taskingFull-scope outsourcing

Integrated solutionsStand-alone services

1999–2005 2006–2011

Agenda

1

2

Challenges of IT Delivery

Service oriented IT Delivery

Drive increased value to clients through high quality delivery

Business Strategy Services Strategy

Focus on open technologies and high-

value solutions

Deliver integration and innovation to

clients

Become the premier Globally Integrated

Enterprise

Innovation

Productivity

QualityOur

Clients

Provides

foundation for

Strengthens &

ImprovesEnables

• Process

• Automation

• Skills

• Superior Delivery

Quality

• Productivity Leadership

• Operational insights

• Apply technology with IBM

SWG, STG, GBS and

Research

• New business models

Our strategy has evolved from the clients we serve and is centered

around driving business value for them

Clients are leveraging a global delivery service, consistently managed

across process, automation, tools and analytics

South Africa

Peru

Venezuela

Mexico

Canada

U.S.

UK

Argentina

Brazil

Ireland

France

Vietnam

New Zealand

Czech Rep.

Romania

Australia

China

Hungary

India

Poland

Spain

Philippines

Portugal

IBM Global Delivery

Infrastructure Delivery Center

Application Services

Managed Business Processing Services

We dynamically create work groups/pools across the world to best

meet clients’ business needs

Client 1

Account Focal PointPool creation

considerations

� Technology

� Workload/FTE

� Skill set

� Location

� Regulations

� SLAs

� Tools

� Problem tickets

� OtherGlobal skills resources

� 750+ pools

� ~ 50 types of pools by competency (e.g.,

service line, component)

� Specialized pools

Account Focal Point

Client 2

Example - IDC Brno, Czech Republic

PeopleIBM professionals manage complex IT solutions, 80 nationalities. Average

age 30, 53% University degree

OperationsServer Systems Operations, Network Integration, End User Services,

Infrastructure Services, and Service Management

Brno Fact Sheet

� Second largest city in the Czech Republic

– Population 405,337

� Home to 5 public, 1 state, and 6 private universities

� A member of EUROCITIES, a network of the largest and most important

European cities in all member states of the EU

� IBM Delivery center founded in 2001

� Delivery Center located in Technology Park

� Outstanding logistical and technical infrastructure

Mature ProcessesDeveloped over years of execution for global companies

SupportProfessionals monitor 36,000 servers and resolve 92,000 help desk

Calls per month

LanguageSupport 18 different languages

(Bulgarian, Croatian, Czech, Dutch, English, French, German, Hungarian, Italian,

Latvian, Lithuanian, Montenegrin, Polish, Portuguese, Romanian,

Russian, Serbian, Spanish)

ITIL-conformant Service Management processes leverage IBM’s

experience managing the IT environments of over 2,000 customers

Service Excellence

Business

Services

Data Center

Services

Strategy &

Design

Transition,

Implementation &

Transformation

� Asset Management

� Configuration Management

� Deployment Management

Managed

Operations

ITIL process lifecycle elements reflected in Offering Content

IT Domains

Service Quality

• Service Reporting• Improvement Process

Customer Satisfaction

• Service Measurement• Return on Investment

Program Management

• Service Reviews• Service Level Mgmt

� Transition Planning & Support

� Service Evaluation

� Service Validation

� Change Management

� Strategy generation

� Demand management

� Availability management

� Service level management

� Capacity Management

� Information Security Management

� Supplier Management

� Event Management

� Incident Management

� Problem Management

� Request Fulfillment

� Access Management

� IT Operations Management

SO Specific

� HR On boarding

� Project Implementation

� Optimization / Consolidation

Workplace

Services

Enterprise

Services

Why is Service Management important?

• Connects the IT infrastructure to the business it supports so that IT investment is

focused on the highest priority business needs

• Reduced disruption to IT Services

• Greater control of changes to IT infrastructure and ability to introduce innovation

• Lower IT cost – less money spent fighting fires

• Single point of contact for end-users for incidents, service requests, and

information – reduces multiple help desks

• Universal language to describe IT service management – helps to manage IT

support across multiple suppliers

• End-to-end integration of IT management processes across your environment

• Supports business controls compliance

…..Results in better quality, lower cost, IT alignment to business, and

easier outsourcing

Detail of service elements with issues on duplication

A. Platform Support

Monitor and reduce operating system log

files to prevent file systems from overfilling

Add’lCurrentClients

Pools

Pool 2

GDF Architecture/Model1

Predictable & Repeatable

Service2

Solutions

Services

Catalog

Pools Performance ManagementOrg. HealthProductivityQuality

� Pool level metrics aggregated for Second Line Manager

� Account level metrics maintained for Sending GEO teams

5

Operational Metrics

� SLA attainment

� # Sev 1 issues

� # Sev 2 issues

� MTTR

� # of changes

� # of failed changes

� Servers/FTE by server

type

� Servers/productive hour

� Orders placed/ productive

hr.

� SW Lic. Managed/

prod. H.r

� HW assets/productive hr.

� Overtime hours

� Total attrition rate

� SA training hours

Defect Prevention

Pareto analysis

6

SPC analysis

For each account

Pro-active

investigations

Investigate

causes RCArecord

Resolve issues RCA DB

Re-use across

organisation

Pool 1

Rhythm Tech

Lead 1

� SA

� SA

� SA

� …

4

Blues Tech

Lead

� Sr. SA (A/c

dedicated)

� SA

� QA

Manager (Rhythm)Manager

(Blues/Jazz)

SME

poolCross-pool group of SMEs

Cross-pool group for improvements in

quality and processes

DCA

pool

Cross-pool group of SAs dedicated to

security & compliance activities

Organisation structure7 Green

Team

User ID/OCC3

GDF Transition9

SendingGeo

Fragmentation Analysis8

YYYNYYYY

IndiaIndiaIndiaIndia

Accounts where there are significant

issues

GEO

Client 2

GEOGEOGEO

Client 4Client 3Client 1

Activity performed

both in sending

GEO and India

ITD GD

Global Delivery Framework

IBM’s three-tiered governance model promotes transparency and

cooperation

Executive Steering Committee Meetings – Quarterly

� Customer and IBM strategic update

� Current high priority initiatives

� Balanced Score Card

� Architecture Review of Directions and Initiatives

� CIO

� Contract Executive

� Contract Manager

� HR & Finance

� Other participants as needed

� Industry Vice President

� Account Executive

� Account Manager

� Other participants as needed

ManagementMeetings –Weekly/Monthly

� High profile initiative/project review

� Issue management & resolution

� Performance Review

– SLA– Project Status Reviews for key projects– Financial Management

� Contract Executive

� Contract Manager

� Contract Admin

� Finance Manager

� Other personnel as needed

� Account Executive

� Account Manager

� Finance Manager

� Other personnel as needed

Service Delivery Meetings – Daily/Weekly

� Operational Issues Management

� Key Project escalations

� RCA reviews

� Contract Manager

� Service Managers

� Business Unit Coordinators

� Site Managers

� Account Manager

� Service Delivery Managers

� Service Control Manager

Executive Steering

Management

Service Delivery

Partnership Governance Structure

Client IBM

The Project Executive has overall responsibility for delivering services to

the client

IBM Service Delivery Center

Service Delivery

Manager (SDM)

Service Providers• Network support

• Help desk

• Operations

• MVS

• DB2

CxO

Client site

Project Office

� Overall contract owner

� Relationship focal point

� Owns customer satisfaction

� Strategic direction for account

� Service Delivery (SLAs)

� Project Office audit readiness

Project Executive

(PE)

Delivery Project Executive(DPE)

• Owns responsibility for quality of service and service

levels (SLAs)

• Helps drive client satisfaction

• Provides account team leadership

• Helps maintain account audit readiness

CERS 2008

Overall = 8.0

QOS = 8.3

CERS 2009

Overall = 8.0

QOS = 8.3

CERS 2010

Overall = 8.0

QOS = 8.3

CERS YTD 2011

Overall = 8.3

QOS = 8.6

GTS Services Delivery EMEA - Service Quality Progress Report

98.8%

98.9%

99.4%

99.0%

99.4%99.4%

99.5%

99.3%

99.5%

99.6%

99.46%

99.60%99.56%

99.70%99.65%

99.69% 99.68%

99.78%99.74%

99.85%99.79%

99.87%99.84%

99.91% 99.91%99.93%

99.86%99.87%

99.80%

99.84%99.84%

99.77%99.76%99.77% 99.81% 99.80%

99.80%

99.61%

99.69%

99.5%99.5%

99.70% 99.75%

99.49%

99.71%

90.8%91.0%

92.4%

93.7%

94.9%

94.1%

95.3%

96.0%

96.5%96.7%

96.9%

97.5%97.3%

98.4%98.1%

98.5%98.7%

99.0%

97.4%

98.6%

97.7%97.3%97.4%

94.8%94.7%

98.2%98.2%98.1%

96.3%

94.0%

93.3%93.0%

97.7%97.6%97.7%

95.7%

97.3%

97.9%

98.4%

95.8%

96.2%

98.1%

96.8%

97.3%

96.3%

97.6%97.4%

91.3%

95.8%

90.0%

95.0%

100.0%

Jan-0

8Feb

-08

Mar

-08

Apr-08

May

-08

Jun-

08

Jul-08

Aug-

08

Sep-0

8Oct

-08

Nov

-08

Dec-

08

Jan-0

9Feb

-09

Mar

-09

Apr-09

May

-09

Jun-

09

Jul-09

Aug-

09

Sep-0

9Oct

-09

Nov

-09

Dec-

09

Jan-1

0Feb

-10

Mar

-10

Apr-10

May

-10

Jun-

10

Jul-10

Aug-

10

Sep-1

0Oct

-10

Nov

-10

Dec-

10

Jan-1

1Feb

-11

Mar

-11

Apr-11

May

-11

Jun-

11

Jul-11

98.00%

98.50%

99.00%

99.50%

100.00%

Pan-IOT SLA Achievement Pan-IOT Green Account %

Quality in service levels and account health

2006 201120102009200820072005

Global integration as

first

Delivery Centre

created with just 150

people

Quality service

improves as

metrics and rigour

increase

Quality continues to improve

as root cause analysis

established as standard

Pan-IOT Europe - Service Quality Progress Report

97.7%

98.5%

98.2%

98.8%

98.6%

98.8% 98.8%98.9%

99.4%

99.0%

99.4% 99.4%99.5% 99.5% 99.5%

99.3%

99.5%99.6%

99.1%

98.2%

98.6% 98.6%

98.8%

98.5%

82.1%

83.5%

86.6%87.2%

87.6%

88.9% 88.7%

89.4%90.0%

89.0%

90.5%

92.4%

90.8%

93.0%

92.4%

93.3%93.7%

94.0%

94.7% 94.9%

94.1%

94.8%

96.2%

91.0%

80.0%

85.0%

90.0%

95.0%

100.0%

Jan-07

Feb

-07

Mar-07

Apr-07

May-07

Jun-0

7

Jul-0

7

Aug-07

Sep-07

Oct-07

Nov-07

Dec-07

Jan-08

Feb

-08

Mar-08

Apr-08

May-08

Jun-0

8

Jul-0

8

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

95.0%

96.0%

97.0%

98.0%

99.0%

100.0%

Pan-IOT SLA Achievement Pan-IOT Green Account %

12.000 people in Delivery

Centres 17,000 people in-

country delivering value to

clients every day

Automation Integrating across

Maximo, Tivoli, UNIX and Wintel

hardware, with virtualisation software

July 2011

Quality 99.91%, client

account health 98.5%

and data centre

99.99%

OfferingServiceOrg

anis

atio

n

Pr

oc

ess

Tec

hno

logy

Renewed

Compliance focus

brings security

discipline in assets

and risk

management

Pan-IOT Europe - Service Quality Progress Report

97.7%

98.5%

98.2%

98.8%

98.6%

98.8% 98.8%98.9%

99.4%

99.0%

99.4% 99.4%99.5% 99.5% 99.5%

99.3%

99.5%

99.6%

99.1%

98.2%

98.6% 98.6%

98.8%

98.5%

82.1%

83.5%

86.6%87.2%

87.6%

88.9% 88.7%

89.4%90.0%

89.0%

90.5%

92.4%

90.8%

93.0%

92.4%

93.3%93.7%

94.0%

94.7% 94.9%

94.1%

94.8%

96.2%

91.0%

80.0%

85.0%

90.0%

95.0%

100.0%

Jan-07

Feb

-07

Mar-0

7

Apr-07

May-07

Jun-0

7

Jul-07

Aug-07

Sep-07

Oct-07

Nov-07

Dec-07

Jan-08

Feb

-08

Mar-0

8

Apr-08

May-08

Jun-0

8

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

95.0%

96.0%

97.0%

98.0%

99.0%

100.0%

Pan-IOT SLA Achievement Pan-IOT Green Account %

Data Centre

resilience

ongoing

programme

launched

Global Delivery

Framework

building on Lean

success

Lean six sigma

initiative delivering

process efficiencies

supplier of managed

service

Cloud

GSAR Standardise

solutions for clients

while driving

consistency

Virtualisation of

server and storage

systems

Transform

Services

Integration

Hub standardises

solutioning July

2011

Productivity Metrics for

benchmarking and

new business

Global Resourcing

40% in Global Delivery Centers;

60% in Regional Delivery

Centers

Global Delivery Framework60,000+ FTEs involved in projects.

Predictable and repeatable service,

pooling, perf mgt, defect

prevention.

Virtualization of

server and storage systems ~35%

or

100,000 images

Service Quality and Client Health

Account Health – 94.1%

SLA attainment - 99.65%

precision engineering

8.17.5Satisfied with Innovation by GTS

7.8

7.1

8.1

7.9

8.3

2010 2011 YTDCERS Feedback (Client Executive Reletionship Survey)

7.6Provides Competitive Advantage

8.1Real Business Results

8.5Overall Skills

8.3Support

8.6Quality of Service (Meeting Commitments)

Our clients say…

quality

leading in IT services

productivity

world class

breadth

leveraging IBM

Magic Quadrant for Data Center Outsourcing

and Utility Services, Europe May 2011

Analysts say …

Forrester Wave™:

Global IT Infrastructure Outsourcing,

Q1 2011

Backup

Service Excellence requires our delivery elements to be continuously

refined to incorporate latest technology, best practices and lessons

learned

Skills Processes

� Specialized – talent that is trained, coached, and

developed for specific tasks, technologies and accounts

� Deep – skill-based pools that are large enough to deliver

maximum efficiency

� Broad – deep pools that cover all platforms, all ITIL

processes, and all geographies

� Effective – quality designed into processes and practices

� Efficient – waste eliminated through process maturity and

continuous improvement

� Robust – fixes for one client are implemented across all

other appropriate clients

Information Analytics

� Defect Prevention (DPP) – incident prevention through

analysis of failure patterns across platforms and processes

� Technical – experience with widest range of businesses,

applications, and architectures

� Improvement – visibility into areas for joint client and IBM

improvement

Assets and Tools

� Automation – codification of best practices in tools to

improve quality and productivity

� Innovation – apply IBM Research to improve the

capabilities of assets & tools

� Flexibility – support for third-party tools to leverage

existing client investments

Service ManagementService Management