Restructure with less risk and more confidence

Separation services

shaping tomorrow with you

Contents

A strong partner for success 3

A time of challenge and opportunity 4

Separation services: 6 Identifying and changing IT dependencies

Case studies 8

Decommissioning services: 9 Planning and managing conclusions

Portfolio of capabilities 10

You and Fujitsu together: 11 The separation solution

Fujitsua strong partner for success

Fujitsu has an established background of building mutually beneficial relationships that help drive greater efficiencies in organisations through the innovative use of IT. We pride ourselves on helping our clients to shape successful outcomes and get to the solutions your business needs sooner.

Who we areHeadquartered in Tokyo, Fujitsu Limited has an annual revenue of over $54bn, and is now the world’s third-largest provider of IT services. We employ over 172,000 people in over 70 countries worldwide and use our scale to add value to local and global clients through an end-to-end service model delivering multi-vendor support, projects, applications, infrastructure and networks.

What we believe inWe place client focus at the centre of all our business engagements, taking a long term view of our relationships with our clients – seeking to maximise satisfaction by approaching things from the client’s perspective and anticipating their needs.

Collaboration on a global scale is a hallmark of our approach, and we strive to serve as a trusted business partner rather than simply a supplier of products and services – it’s our commitment to shaping tomorrow with you. Fujitsu is unique in this respect since we have a genuinely agnostic approach to your needs and collaborate with a number of organisations to bring together best of breed product and service solutions. We work in partnership with all major IT Services organisations including Cisco, EMC, Oracle, CA and Microsoft.

Our separation and decommissioning experienceAgainst a back drop of 15 years proven experience in complex divestment programmes, Fujitsu has recently undertaken some of the largest programmes in the public and private sector, across a broad range of industries; including automotive, utilities, government (managing critical national infrastructure) and financial services. Our outcome based approach is recognised by many of these clients as a key differentiator in our provision of services. As a leading integrator and supplier of Enterprise Cloud Computing services, Fujitsu can also broaden our clients’ options, with cost-certain “as-a-Service” based solutions during separation or decommissioning and beyond.

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A time of challenge and opportunity

Every divestment for an organisation is complex and important. Separation always presents a number of tough challenges as well as opportunities for the business as a whole – such as the transfer of improved system knowledge and new strategies for rationalisation.

All domains of change, rather than just IT, must be considered during separation or decommissioning.

Some of your existing colleagues may ultimately work for a different company, and those people that remain within your organisation will see change in the scope and scale of their responsibilities, as they manage through this period of change.

At a time when staff with deep knowledge of the business leave your business, additional support will be required to undertake the divestment and data migration, whilst critically maintaining quality Business As Usual (BAU) services and progress on existing change projects.

A new commercial relationship will need to be established with the divested business, to ensure continuity of service and effective systems of separation and data transfer. This presents opportunities to secure additional revenue in addition to the sale of the divested assets.

From our experience, we know some of the specific challenges that will need to be faced are:

■ Defining the strategy, commercial and business outcomes: in order for all parties in the equation to be able to realise their required outcomes, all possible strategic options must be explored, with necessary activities agreed across all domains of change.

■ Technology Services Agreement: there will be the need during and post separation to provide technology services to the receiving organisation with clear service definition of the services being provided, the duration, and the terms of termination.

■ Cost control: unless clear objectives and goals are agreed and planned in advance, the necessary tasks and scope of the programme can change, and costs will overrun. True restructuring costs can be more accurately predicted and managed when strategic outcomes are at the heart of your separation governance.

■ Management of risk: the risk of what will really happen ‘when the switch is flicked’ is a fundamental consideration, whether the potential impact to the business is an IT or technical failure or reputational and business damage. The management and minimisation of these risks goes hand in hand with the need for business continuity.

■ Business continuity: unplanned system outages are a sign that an IT separation is not being managed effectively: business continuity must be the priority at every stage of the programme, which requires careful planning and high levels of technical expertise.

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■ Compliance to regulations: migrating, archiving or destroying data will raise a number of regulatory issues, including following Data Protection Act procedures and minimising the environmental impact of IT disposals in line with The Waste Electrical and Electronic Equipment Directive (WEEE).

■ Time pressures: in separations, there is often a mandatory date for completion, so a specific window of time is available to complete the programme. Internal and external resourcing and skills must be perfectly aligned with that timeframe.

■ System complexity: the complexity, value and relationships between IT systems which need to be separated or decommissioned must be fully revealed and understood. Clearly scoped phases need to be planned, executed and tested – with each phase learning from the previous.

You can be confident that Fujitsu has a strong insight in overcoming the challenges of the business separation environment, and a track record of success in bringing significant programmes to the right conclusion. Some key ways that our outcome based approach mitigates risk include:

■ Comprehensive knowledge of technology and systems: Fujitsu’s technical experience spans everything from back office systems and central computing to network operating systems. We also develop our own unique Systems and Process Discovery tools.

■ Proven service design and build capability: as a mature technology services company Fujitsu has deep experience in defining and constructing workable technology service agreements of the type required by complex separation programmes.

■ Assistance for strong governance: proven governance models, processes and techniques to engage all stakeholders, ensure effective decision making, and deliver the expected outcomes.

■ Robust change plans: built top-down and bottom-up so that strategic alignment and technical viability are both considered. The full scope of change, for people, process and technology, is identified and expertly managed.

■ Analysing impact on users: using our technology to map out processes, understand the system separation in business functions that may have to be split (such as HR), and minimising the impact of those changes on users.

■ Strong communications policies: planning and monitoring a clear, timely and precisely targeted communications plan for different business users which focuses on the achievement of outcomes.

■ Prioritisation and allocation of resources: solutions to sequence work packages based on value, risk, operational, technical and financial constraints, together with the availability of people and technical resources.

■ Effective partner management: we recognise that, for challenges of this size, no one organisation can do it all alone. To be successful the challenge will need to be met in partnership, with shared explicit goals and clear assignment of roles and responsibilities; aligned to deliver the one set of business outcomes.

Fujitsu: reducing risk and delivering better outcomes

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Separation services:identifying and changing IT dependencies

Issues raised by separationToday’s business operations may map across a myriad of different systems, people and processes. Therefore the first, and most crucial issue, in any separation is developing the right strategy for the separation of these underlying operations, before work begins, and in collaboration with both the seller and purchaser.

Separation options can include the cloning of systems, or the provision of ongoing Business As Usual (BAU) services until the purchasing company has put in place new processes and systems, and data transfer has been undertaken. An effective separation strategy has a Programme Blueprint which clearly defines the end outcomes to be achieved and the broad range of change activities to deliver those outcomes.

Both parties have to clearly define their needs pre separation otherwise one of the resulting organisations, at best, will see that the activity did not meet its objectives and at worst could result in business failure. Within the separation, if one side is dominant; it can significantly increase the risks to cost, quality and timelines of the separation as well as the resulting business performance.

The pace of change is often critical during business separations, especially as deadlines are often set by outside forces or executive management. Meeting these milestones, managing supplier lead-times, as well as other logistical requirements becomes a significant planning challenge; usually leading to an escalation of budgeted costs. Understanding which IT barriers are genuine constraints and which are merely problems to be solved requires deep experience of an ever changing market place. With the right separation strategy in place, a Technology Services Agreement is often required, which often presents both a significant opportunity and a risk. Fujitsu has considerable experience of assisting in the creation of these agreements in the most expedient manner.

A key outcome of all of the above activities must be the creation of the business case for an ongoing Lean transformation, the programme definition, and effective governance arrangements across the two separating businesses.

How Fujitsu can support your separationsFujitsu brings a unique set of Blueprinting, Discovery, Applications and Infrastructure services to separation, that helps organisations develop a head start in understanding the IT environment, processes and people. Put together, these factors enable us to define and implement the optimal route for separation faster, more cost effectively and with less risk.

Through our programmes for global clients, several of which are detailed alongside, we have demonstrated our expertise in fully planning effective separation strategies and designing end-to-end programmes of change.

Our skills in separation are just one part of the total resource Fujitsu can bring to help meet your needs. If you need additional ‘swing space’ to manage interim and strategic demand, for example, Fujitsu’s secure data centres and Infrastructure-as-as-Service(IaaS) solutions can be drawn from our wider portfolio, as shown on page 10.

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Unique tools to speed discovery and reduce risk

■ Service Design & Build MethodologyFujitsu’s Service Design & Build Methodology (SDBM), is consistent with ISO20000 standard and ITIL Foundation best practice. Delivering cost effective services with consistent achievement of quality service is something that all of our customers expect. Using SDBM provides a joint way of working to develop the consistent and compliant services required in order to deliver those services to a 3rd party.

■ Systems DiscoveryOur Systems Discovery tools identify how complex IT systems interface with each other, making it easier to migrate or separate groups of systems that use a high level of inter-systems communication. Our approach minimises the need for temporary bandwidth when migrating, consolidating or separating data centres.

■ Automated Process Discovery (APD)This unique service automatically visualises current business process workflows from IT systems, giving immediate visibility into the true ‘as is’ state. Since these processes may be in separate organisations or departments, the system-based evidence from APD is essential to collaboratively identify and prioritise the key processes for separation, as well as assessing the impact on users and systems.

■ Application Value Assessment (AVA) Our unique AVA process provides a value-based application portfolio analysis of the costs, risks and business impacts of change. It gives a clear indication of where action should be taken within the current application portfolio, either for optimising or separating purposes. The processes and methods of AVA are tuned to make the whole service efficient, effective and tailored to a specific organisation.

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Case studies – successful separations Company names have been anonymised to protect client confidentiality.

A global automotive organisationThis global car manufacturer was separating a major car brand from its business, and with it, the deeply embedded support systems. Since these systems were shared, Fujitsu adopted a cloning approach to replicate virtual business and operations systems, which then had to be scaled down so that the resulting system was not over-specified or too costly for the car brand. The separation process was carefully governed by Fujitsu to ensure a clear view of the outcomes that both ‘donor’ and ‘receiver’ needed to achieve, and ensure correct decision making. Meeting lead times was critical, including resolving Intellectual Property Rights issues so that executing the separation was not stalled. Fujitsu’s experience in planning and executing knowledge transfer was also required to minimise the time spent with IT experts in the USA who were busy with current IT tasks. Client feedback indicated that Fujitsu’s outcome based approach was a key differentiator, making us the clear choice for such a scale of task.

A leading UK frozen food manufacturerThis company was separating from its parent to become a standalone business after an MBO. The systems in place were dedicated to the operation of the company’s products and business, but were embedded within corporate systems. No IT staff were being transferred in the separation and the systems and infrastructure had to be created from scratch. As well as discovering all processes and data, Fujitsu designed and delivered the complete IT infrastructure and operations as a managed service, including email, SAP and web services. The new business model included data centres across 8 European countries, and so called upon the global and local resourcing capabilities of Fujitsu.

A UK Telco Infrastructure providerThis UK Telco faced a regulated separation of a network services operation. The systems were closely integrated with other internal lines of business, and the separation programme would therefore break this value chain, change a multitude of processes, and involve extensive role changes amongst personnel. The outcomes required of the separation had not been fully explored, and Fujitsu worked to identify the best approach to drive business value from the programme, whilst incorporating system activities and business changes across the organisation, people and behaviours. The profile of the separation programme was raised by Fujitsu, helping to develop new, critical internal relationships for the client.

“Fujitsu worked with us ‘to engineer’ a step change to the way we manage our Separation Change programme. Fujitsu’s analysis provided the insight we needed to move our programme from an IT delivery project to a sponsored business change programme”.

UK Telco Infrastructure provider

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Decommissioning services: planning and managing conclusions

The decommissioning agendaFollowing separation, the same care, attention and planning should be applied to rationalising and decommissioning redundant IT assets, data and infrastructure – this is really where ‘flipping the switch’ carries the most risk since any inconsistencies or loss of data will severely impact the business, clients, suppliers or customers.

Once again, a clear understanding of the assets is the key to performing a complex programme safely, effectively and in the appropriate order. The ‘live’ status of data, how it interfaces, where it is accessed from, and who will own it post-separation are all important factors that must be known.

Depending on whether the data will be migrated, archived, or destroyed there may also be strict requirements for its handling. For example, many active applications or groups of applications will contain critical information, some of which will be required by the Data Protection Act and Protection of Data law to be archived and managed as records. Combine this with the reputational and business damage that can occur as a result of data security breaches, and you have a highly sensitive situation.

Finally, the environmentally sound removal and disposal of assets cannot be overlooked, and will require careful compliance to the Environment Agency’s regulations.

The support of FujitsuAs with our expertise in separations we can rapidly support decommissioning with the right processes and tools, such as Systems Discovery and Automated Process Discovery.

By obtaining your finer architectural system details faster, and mapping them more clearly, we help to maximise the time your in-house experts spend on supporting the usual activities of the business – which naturally do not stop during separation – and so help you reduce costs.

Fujitsu’s approach means that our clients and any third parties have full confidence that the process of switching off redundant equipment has been efficiently and fully concluded. Our wider portfolio of capabilities also enables us to access any particular IT capability or skills set your decommissions will require.

A multinational integrated energy company The company’s requirement was to modernise large strategic systems for billing and customer relationship management, whilst ensuring uninterrupted delivery of normal services.

The legacy billing system was absolutely core to the organisation’s business, and required Fujitsu to understand over 170 applications; how they interfaced; which were the master applications; the legal requirements for retention of the data; and – crucially – the sequencing for turning off applications whilst decommissioning.

Using our Application Value Assessment process to analyse the impacts of change, Fujitsu minimised business disruption and ensured staff could remain productive whilst legacy applications and supporting infrastructure were fully decommissioned.

Case study – successful IT decommissioningCompany names have been anonymised to protect client confidentiality.

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Cloud Consulting Business Consulting

Fujitsu’s portfolio of capabilities

Whether it’s a physical, virtual or skills-based requirement, Fujitsu have been innovating for more than 80 years in IT and have developed a comprehensive portfolio of services which can support your programme of change.

Managed Data Centre

End UserServices

Managed Network

Managed Maintenance Service Desk

Application ServicesWe help our customers to deploy or upgrade business applications quickly, securely, efficiently and inexpensively to create real business value and avoid legacy system duplication that often hamper post integration environments.

Business Services We understand the importance of managing people and process change, as well as technology, to deliver successful change. We will work with you to agree your objectives and design the necessary programmes of work to enable you to meet your desired business outcomes.

Dynamic Infrastructures Fujitsu has expertise in delivering full integration across the infrastructure stack, from desktops to data centres. We can even set up short duration and highly cost efficient on demand solutions, to meet the kind of tactical solutions often needed alongside the longer term integrations.

Business Services

Application Services

Dynamic Infrastructures

Infrastructure-as-a-Service

Infrastructure Solutions

Infrastructure Products

Cloud

Applications

Managed

Applications

Information

Applications

Managed Infrastructure

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You and Fujitsu together: the integration solutionEffective, low risk and timely integration and decommis-sioning can safeguard your ongoing business and ensure its growth is in no way constrained or burdened by your current challenges. Fujitsu’s extensive resources and proven exper-tise in integration and decommissioning are fully at your disposal to ensure a successful outcome.

Our deep knowledge of IT, our open and collaborative ap-proach and ‘can-do’ attitude have made us a trusted partner for many organisations. We hope these pages have demon-strated how the thorough approach of our Integration Ser-vices can deliver a better solution, and enable you to realise your goals sooner.

We would welcome the opportunity to discuss how we can help. Please contact Graeme Wright on+44 (0) 7775 706290 or email graeme.wright@uk.fujitsu.com

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