EXIN BCS SIAM Professional. Case Study. Edition

Transcription

1 EXIN BCS SIAM Professional Case Study Edition

2 Copyright EXIN Holding B.V. and BCS, All rights reserved. EXIN is a registered trademark SIAM is a registered trademark No part of this publication may be published, reproduced, copied or stored in a data processing system or circulated in any form by print, photo print, microfilm or any other means out written permission by EXIN. Case Study EXIN BCS SIAM Professional (SIAMP.EN) 2

3 Content Introduction... 4 Corporate Strategy... 4 Structure... 4 Governance... 7 Culture / Appetite for Risk... 7 Mandate for change... 8 Services and Providers (including contract arrangements)... 9 Current providers Case Study EXIN BCS SIAM Professional (SIAMP.EN) 3

4 Introduction Corporation () was formed in 1974 in Germany as a provider of bank counter terminals (BCTs) and a suite of ing s known as BNK. These are used by the counter staff in banking organizations to serve their own customers, including paying in money, drawing money, and checking balances. Since 1974, has expanded through the acquisition of other similar companies. They now provide terminals, s, and s to 30 banking organizations across Europe. Three years ago outsourced the development and of the BCTs and BNK to an external provider, BANK$CO. is in a highly competitive market, and has started to lose business as their competitors products are cheaper to purchase and on standard windows PCs. recognizes that the costs of ning their IT s is too high. Corporate Strategy The corporate strategy of contains these objectives: Expand into the Asia Pacific region; Expand into other countries as opportunities appear; Retain existing business; Remove reliance on legacy systems and legacy providers; Reduce the cost base; Be ready to adapt to change; Ensure delivery against contracts; Invest in and develop all staff; Control any change in headcount. Structure The structure of is shown below: Holdings (H) Australia (A) Germany () United Kingdom () Services () Data (D) Case Study EXIN BCS SIAM Professional (SIAMP.EN) 4

5 Holdings (H) is the head office, based in Berlin, Germany, 50 staff. They have a Chief Executive Officer (CEO), Chief Information Officer (CIO), Chief Financial Officer (CFO), Executive Sales Director, and Executive Product Director. H is responsible for corporate strategy, global investments, procurement, contract governance, and financial reporting of the performance of the corporation. They have no IT staff, all of their IT is provided by Services. H has the following specialist functions, who provide their s to all companies: Procurement: 5 staff experience in large scale procurements governance: 5 staff experience in governance of high value contracts Legal team: 5 staff ing the procurement and contract governance functions Corporate governance: 5 specialists including internal auditors who audit all companies for compliance to corporate policies. The CFO has a team of 5 ing them. The remaining staff in H works in administration. Services () is based in Amsterdam, and has 95 staff, 55 IT professionals, 10 management professionals, 10 desk agents, 5 project managers, and 10 admin staff. They are led by the IT Director, who used to be a senior manager in a small integration company. She is ed by a management team comprising of the Service Management & Service Desk Lead, Development & Architecture Manager, Operations & Support Manager, and Senior Project Manager. The IT Director reports to the H CFO. was created 5 years ago, by splitting it off from Germany. They directly provide IT s to the staff at H and, and are responsible for managing contracts a small number of global providers of , s, and payroll (see section on Services and Providers). This includes ning a change management function for these s. They provide guidance on IT strategy and architecture to all companies. Some of the s in use were written in-house by staff who have since left. These on a legacy that was installed in 1994, which is housed in a secure area in. The other s are standard office s, hosted by D. also provides a payroll for all parts of. The payroll software is purchased from an external company, and is hosted by D ( Data). There is a small IT development function, who uses Agile and DevOps techniques. Last year they started developing a new version of BNK that can on widely available low cost PCs. This, NEWBNK, is currently in the final stages of testing. If accepted, the estimate is that it would take 18 months to fully deploy to all user organizations before BNK could be retired. NEWBNK would reduce the costs to the organizations who buy the s from, and is expected to generate a significant increase in profit for. The desk operates 24 x 5 (weekdays only). As well as providing first line to users in H, and, they also manage incidents the global ,, and payroll s for users in all companies. prides themselves on acting as a professional provider. All staff has up-to-date job descriptions based on a skills profile, and all processes in use are fully documented by the process owner. The management and desk functions use the following processes: incident management, problem management, release & deployment management, change management, and capacity management. uses a widely available toolset that they have configured themselves. It is hosted by D. This toolset has a basic configuration management database, and functionality to the desk and change management. The developers at have developed an integration for incident management the tool used by the desk of OUT$CO, the outsourcers for. This allows incidents to be passed between the desks out re-keying. Case Study EXIN BCS SIAM Professional (SIAMP.EN) 5

6 has a Change Approval Forum (CAF) that meets every month to discuss and approve changes to s provided by, D, and the providers of the global and s. The CAF is meant to be attended by user representatives from each company, but they rarely attend. The CAF is chaired by the Service Management & Service Desk Lead, a team of four ing from management. This team recently completed a capability/maturity assessment for the change management process, and scored very high. For the last 18 months all changes approved by the CAF have been successfully deployed. management collects data and reports monthly on the following measures: Number of incidents received and resolved by the desk Number of changes approved each month Availability of the The office location is almost at capacity, there are only 2 spare desks no possibility of expansion. Data (D) is a wholly owned subsidiary of Services. They were purchased last year, and provide two data centers, one in Berlin and the other in Amsterdam, connected by dedicated high speed links. house their servers (but not the ) in these data centers. BANK$CO house their in one of the data centers. D employs 10 staff to look after the data centers. They report to the Operations & Support Manager from. The data centers are almost full, no possibility of expansion. Some staff have job descriptions, but these are not up to date. All staff have a technical background, none are qualified in management. Some, but not all, operating procedures are documented. Germany () was the original company, and is also based in Berlin. They have their own culture, and up until now have always determined their own IT strategy. is responsible for the design of the products used by the customers of the companies. The management team comprises a Managing Director, Financial Director, Engineering Design Director, Field Support Director, and Sales Director. The team manages 190 staff: 100 mobile field engineers, 60 design engineers, 20 in sales (based at home), and 10 in administration. Their IT s are mostly provided by, but some s are provided by local providers. These local providers are in theory managed by the Financial Director, but in practice this has been limited to querying invoices. Australia (A) is a new start-up company based in Canberra, just 10 staff plus a Managing Director. These are all working in market research, to establish if should expand into the Asia Pacific region. They are in talks a Tokyo based competitor and provider of banking terminal s, who has indicated that they would be prepared to merge. This competitor uses their own internal IT functions to provide all of their s. The A staff currently use their own personal laptops, office, and accounts. This has caused issues when the equipment develops faults. They are in discussion a local provider of desktop, DESK$CO, who could the equipment under a 12 month contract. United Kingdom () is a large organization 345 staff, a head office in London and six regional bases for the field engineers. It was acquired 2 years ago, and is a mature provider of banking terminal s. The management team comprises a Managing Director, Financial Director, Field Support Director, Sales Director, and Operations Director. They also have 200 mobile field engineers, 50 in sales (based at home), and 80 in administration. 9 years ago all of their IT s and IT staff, including the desk, were outsourced to OUT$CO, a major global s organization. retained two delivery managers, who are responsible for managing the contract OUT$CO. They report to the Financial Director. Case Study EXIN BCS SIAM Professional (SIAMP.EN) 6

7 Since the outsourcing, have employed a small IT team of 5 staff reporting to the Operations Director, who develop and small stand-alone s. There are also 3 project managers who manage improvement projects in conjunction OUT$CO. The senior staff and directors of resent any interference in their strategy and operations from H and, and historically have always objected to any imposed changes in working practices that do not align their own aspirations. In the last two years, the performance and quality of the s received from OUT$CO has deteriorated. Service levels are regularly breached. This led to the Directors of engaging a consultancy organization, SIAMRUS, to review s strategy for provision of IT s and suggest a new strategy moving forwards. The report from SIAMRUS was received 4 weeks ago. It suggests that should move to a SIAM based model, and includes an outline SIAM strategy. The SIAM strategy proposes segregating the s into providers for hosting, s, development,, and end user computing, a integrator providing the management for all of the providers. That would give a total of 5 contracted providers, and a contracted integrator. SIAMRUS proposed that they would be this integrator. They would use their standard SIAM model which has been successful in other organizations. This includes a standardized process model, every provider using the same process, and a shared toolset owned by SIAMRUS. SIAMRUS claims that this approach would facilitate a rapid transition to SIAM, and reduce overall risks. Governance The Board of Directors are responsible for corporate governance and corporate strategy. Membership of the Board includes all the directors of H, and the Managing Director from each of the other companies. They meet every month at Head Office, chaired by the CEO. The IT steering group is made up from a representative of each IT function in, D, and, one of the auditors from H, and a user representative from each of and A. It is chaired by the IT Director of, and meets four times a year in the head office. has not attended the last two meetings. The IT Steering Group reports to the Board of Directors. Each company has its own Management Board that meets monthly, and provides a report of the meeting to H. There is also a Product Development Forum that discusses possible developments to the s offered by. This meets quarterly, and is attended by representatives of H,, A,, BANK$CO, and the IT Director. It is chaired by the Executive Product Director. Culture / Appetite for Risk Historically, have been averse to risk. A good example of this is the high number of legacy s that are still in use. Every time a proposal has been made to replace them newly developed s, the Board of Directors has decided that the risk to the business is too high. Case Study EXIN BCS SIAM Professional (SIAMP.EN) 7

8 The CEO was appointed 4 months ago, having previously held executive positions in world class automotive manufacturing. She has a different attitude, and is more prepared to take risks provided that: the expected benefits are clear and the corporate strategy the risks are clear and managed the risks are mitigated through careful planning The CEO recently started an initiative to continue the introduction of Lean and Agile approaches and thinking across all parts and disciplines of. She is aware of NEWBNK, the replacement for the BNK, and would like to start to deploy it once testing has been successful. Mandate for change At the last meeting of the Board of Directors, the CIO presented a paper based on the findings from the report from SIAMRUS. This included his analysis of the s and providers used across the organizations. The CEO proposed that should move to a SIAM based operating model; gain consistency in IT delivery models across all group companies, and the corporate strategy. This would include having a integrator that acts across all s, irrespective of which group company uses the s. would be seen as a single customer to the providers. This should enable economies of scale and drive cost savings through consolidation of providers. A key requirement is that the costs of the integrator should be as low as possible whilst achieving levels and high quality s at all times. No decision has been made yet on who should be the integrator. The CEO also wants to ensure that the SIAM model for allows them to quickly expand their operations into other countries, including Australia, and s the rapid introduction of new s and providers. The CIO has been asked to establish a project for a transition to SIAM. The project is to be called NEWGEN. Case Study EXIN BCS SIAM Professional (SIAMP.EN) 8

9 Services and Providers (including contract arrangements) The s provided by are used by a number of banks, the users being external to. These s are: Service BCT BNK development BNK BNK BNK hosting Service description Desktop for the BCTs Development of bespoke legacy for the BCTs Support of bespoke legacy for the BCTs Support of legacy that s the BNK Hosting of the BNK Provider, BANK$CO BANK$CO BANK$CO Users of the Banks who use s s Banks who use s s Banks who use s s Banks who use s s held by /managed by Banks who use s s H / H / H / D BANK$CO BANK$CO / BANK$CO term Rolling contract 12 months notice to terminate Rolling contract 3 months notice to terminate Rolling contract 3 months notice to terminate Rolling contract 3 months notice to terminate 3 year contract, 3 months left to Notes Legacy equipment. The mobile field engineers are employed by and Legacy Legacy Legacy Case Study EXIN BCS SIAM Professional (SIAMP.EN) 9

10 All other s are provided to users in, or are in development. These are: Service Application development Application NEWBNK Legacy hosting Office s Service description Development of bespoke s used by H and Support of bespoke s used by H and New developed to replace BNK Support of legacy that s the legacy s Hosting of Support of office s Provider Users of the H, H, None yet, would be the banks H, H, H,, held by /managed by No contract or agreement Operating agreement between and. Nothing H. No contract or agreement No contract or agreement No contract or agreement Operating agreement between and. Nothing H. arrangements No contract No term No term No contract No contract No term Notes Includes some legacy s. Currently being developed by as a replacement for BNK Legacy Legacy hosted on the premises. No capacity for expansion Case Study EXIN BCS SIAM Professional (SIAMP.EN) 10

11 Service Desktop Mobile device Payroll Payroll Applications hosting Wide area Internet access H local area (LAN) Service description Desktop for all office based equipment Desktop for equipment used by field and home based users First line for Payroll users Payroll managed Hosting of servers Network connecting all locations Internet access from the WAN Local area in H Provider Users of the H,, held by /managed by Operating agreement between and. Nothing H. MOB$CO / PAY$CO D NET$CO NET$CO All parts of All parts of H,, All parts of All parts of Operating agreements between and other parts of H / Operating agreement H / H / NET$CO H H / H arrangements No term 2 year contract, 6 months left to No term 5 year contract, 2 years left to Annual review, due in 1 month 5 year contract, 4 years left to 5 year contract, 4 years left to Rolling contract 1 month notice to terminate Notes manage the contract on behalf of. Global contract. The payroll is integrated the cloud , for sending out monthly payslips Hosting of all nonlegacy servers ing s Global wide area provider Global wide area provider Case Study EXIN BCS SIAM Professional (SIAMP.EN) 11

12 Service LAN D LAN LAN LAN A LAN Cloud Computer aided design (CAD) Field engineer Service description Local area in Local area in D Local area in Local area in Local area in A Managed hosted in the Cloud Design software used by the design engineers, hosted by D Managed hosted in FIELDCOs own datacenter, used by the field engineers Provider Users of the held by /managed by / D / DLAN$CO / OUT$CO / arrangements No contract No contract Annual contract, renewal is in 6 months time 10 year contract, 1 year left to Notes provide their own Local provider. Managed by on behalf of Part of the outsourcing contract OUT$CO A staff A No contract No contract Installed and ed by one of the users MAIL$CO All parts of except H / CAD$CO / FIELD$CO / Rolling contract 1 week notice to terminate Rolling contract 12 months notice to terminate Rolling contract 1 month notice to terminate Globally provided commodity cloud hosted Shrink wrapped software tailored for the European market, hosted by D Commodity hosted Case Study EXIN BCS SIAM Professional (SIAMP.EN) 12

13 Service Service description Provider Users of the held by /managed by OUT$CO / Field engineer Sales Office s Bespoke developme nt Application Hosting Bespoke used by the field engineers Bespoke used by the sales force Office s used by all staff Developme nt of bespoke s for OUT$CO / OUT$CO / OUT$CO / OUT$CO / OUT$CO / arrangement s 10 year contract, 1 year left to 10 year contract, 1 year left to 10 year contract, 1 year left to 10 year contract, 1 year left to 10 year contract, 1 year left to 10 year contract, 1 year left to Notes Part of the outsourcin g contract OUT$CO Part of the outsourcin g contract OUT$CO Part of the outsourcin g contract OUT$CO Includes . Part of the outsourcin g contract OUT$CO Part of the outsourcin g contract OUT$CO Part of the outsourcin g contract OUT$CO Current providers Service provider Types of s provided Notes BANK$CO BCT terminals and BNK Provides legacy s to banks on behalf of. They have no distinct management function. Their culture is to rigidly follow the contract, and routinely dispute the meaning of particular clauses. BANK$CO is split into four divisions BCT, BNK development, BNK, and BNK. There have been several occasions where these divisions seemed to lack co-ordination when resolving issues and planning releases. They have a single level: Number of issues resolved this month. Case Study EXIN BCS SIAM Professional (SIAMP.EN) 13

14 Service Types of s provided Notes provider CAD$CO Packaged CAD Provides shrink wrapped software for computer aided design. They have a small desk that users can directly. DESK$CO Desktop for office based users Potential provider to A. They are a small local organization, 5 engineers and 2 admin staff. DLAN$CO Local area Provides s in Germany only, 25 staff. FIELD$CO Field engineer A small managed provider, just 5 staff. MAIL$CO s Global provider of cloud based commodity s. MOB$CO Desktop for field and home based users Provides s in Germany, and also has a division in the UK. They also provide desktop for office based users to other organizations, using subcontracted engineers. NET$CO Network s Global provider of s, and a subcontractor to OUT$CO. They have over 3500 staff worldwide, all using the same operating model, processes, and toolset. They consistently achieve their levels, but their costs seem high when compared to other similar providers. OUT$CO Outsourced IT s for, including desktop /end user compute, hosting, infrastructure, development,, and s. OUT$CO is a global provider of outsourcing s. Their usual approach is to transfer relevant client staff into their organization, and to tailor processes for each client. For they use all management processes, which are fully documented and regularly audited by the process owners. They also provide a 24 x 7 x 365 desk to. Their toolset uses a commodity cloud based, which includes infrastructure and monitoring. OUT$CO has achieved the ISO certification, however has reported ongoing issues the performance and quality of some of the s provided by OUT$CO. The availability levels have not been achieved for the last 6 months, and the sales force claim that their laptops are never fixed in time. Satisfaction the desk is good, reports that the agents have a good understanding of the s and how they are used. OUT$CO uses subcontracted organizations to deliver hosting, infrastructure, wide area s, and the desk. NET$CO is the subcontractor for the wide area. The desk is provided by $DESK, a provider of desks in the UK and Australia. Case Study EXIN BCS SIAM Professional (SIAMP.EN) 14

15 Service provider Types of s provided Notes OUT$CO uses their own internal divisions to provide desktop,, development, and local area using comprehensive Operating Level Agreements. OUT$CO also provides these s as discrete offerings to a number of customers. OUT$CO also provides integration s to several organizations, including one of s competitors. They have a good reputation as a flexible and reliable integrator who are willing to amend their SIAM model to suit particular situations. PAY$CO Payroll s PAY$CO provides a 9 to 5 weekdays desk that payroll users can call directly. The users have said they are very happy the they receive. SIAMRUS Service integration consultancy and s Large global organization experience as a integrator in the manufacturing sector. They use a standardized SIAM model limited flexibility, using their own SIAM toolset. This model includes provision of a 24 x 7 x 365 desk. $DESK Service desk s A well respected provider of desks in the UK and Australia, the capability to provide 24 x 7 x 365. D Hosting s company that hosts s for both and BANK$CO. They always achieve their levels, but has complained about the attitude of some D staff as they seem to focus more on technology than the experience of their customers. The levels are the availability of each of the servers/. Application,, development, desktop, central desk, global change management Part of the group of companies. H is happy the they receive from them. However has reported that they often fail their targets and are reluctant to do anything that is not explicit in the agreement them. There have also been recent issues when users working on Saturday mornings were unable to report faults to the desk. D, and A have all complained to the IT Steering Group that seems to think that they are more important than the other group members, particularly when providing guidance on IT strategy. Case Study EXIN BCS SIAM Professional (SIAMP.EN) 15

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