Organizing IT for Success - PDF Free Download

Organizing IT for Success Leveraging IT As A 9 th October 2012 Nick Weinrib - Advisory Solutions Principal EMC Consulting 1

Agenda Why Organizations Are Transforming Transformational Drivers Why IT Must Transform Transformation and IT As A What We See Managing Transformational Change Three Transformation Focus Areas for ITSM Organizational Design Design Operational Optimization Case Studies 2

Transformational Drivers Market Speed New Global Markets Opening, Expanding Lowered Barriers Erase Traditional Advantages IT Consumers Have Choices Providers (SPs) as Enterprise IT Alternative Mobile Platforms for Consuming Digital Products & s Disruptive Technology Virtualization, Converged Infrastructure, Cloud, Modern Application Architectures Cloud Empowers New Business Models Hybrid Private Public 3

Why IT Must Transform Business Customers Are Looking For and Finding New Alternatives to Enterprise IT IT Cannot Ensure Security for Shadow IT Solutions It Is Not Aware of External Providers Promise Fast, Easy Solutions How Can You Compete? Enterprise IT Must Transform to a Provider Through the ITaaS Model Deliver Improved Business Agility Provide Value to Business Top-Line Maintain Trust And Control Simplify Consumption and Unified Management Of Internal/External s 4

What We See Business Demands Drive IT Change Business Is Changing Faster Than IT Business Has New IT Alternatives Technology Convergence Accelerates 5

Managing Transformative Change Enterprise Program Involving: Strategy Organization Process s Technology Goal of IT Transformation Is to Drive Efficiency, Agility and Growth 6

IT Business As Usual Inhibits Innovation Remains hard to do business with Appears to clients as a collection of tech silos rather than a solution provider Avoids selling services, fearing to create demand it cannot fulfill Thinks in terms of custom engagements versus standardized enterprise services As a result, business units are looking at alternative IT service providers Shadow IT is growing 7

Three Transformational Focus Areas for ITSM Organizational Design New Roles: Go-to-Market Cloud Architects, Cloud Administrators Design Optimized Workflow Automation Operational Optimization Financial Transparency Orchestration 8

Cloud Calls For New IT Roles Old Model New Model New IT Mgmt interface to Business New pooled support resources New Ops Center for remote management 10

New Organizational Roles for IT Client Engagement Communicates and stimulates utilization of IT s. Assists clients with value based consumption s Manages the creation, introduction and lifecycle of service offerings to address current and future needs Applications Develops multi-tenant enterprise applications that allow for configurability without customization Platforms Architects and delivers technology platforms consumed by services; Governs tech standards Technologies Technologies to enable, automate, monitor, secure, provide access to, and track health of services Support Global Command Center and IT Operations Desk 11

Fundamental Elements of Design Catalogs Self Application Consumer Owner Application Owner Role-bas sed Access Front Off fice Portal Reporting IT Monitoring and Chargeback Business Tools & Process Automation Levels Run Books Internal s LOB CTO Reference Architectures Governance 13

Getting Design Right Example High-Level Workflow Start 1 Request End Compilation request process begun; portal login 12 Portal updated with Status Catalog 3 After user CMDB specifies confirms service resource request, availability service blueprint execution begins CMDB Broker 2 Portal identifies user by group; authorizes and offers available broker services begins blueprint execution No Custom No Commence Std. Example Yes request: Operation Provisioning manager Allowed? Offering? 6 Engine provisioning new sales Workflow person Change request created and approved App 7 OS 8 L3 5 4 Virtual machine created Hypervisor IP address configured L2 Compute Domain Network Domain Billing 11 Billing system, other postprocessing takes place 9 BCDR Storage provisioned Coordination with corporate Security 10 process tools can also be orchestrated: CMDB from facilities Governance Change management Compliance Incident management Configuration management Tier/Capacity L4/SLB Laptop, telephony ordered Monitoring Storage Domain s Domain ITSM Domain 14

Operations Processes: Focus Areas for Cloud Focus on Capacity Management lifecycle: decommission services when no longer needed consumption and demand focused planning Configuration Management Enforce standard configurations Minimize one-offs Change Management Tight coordination required with more moving parts Financial Management -based chargeback as opposed to asset or application-based chargeback Incident Management Event correlation and automation for reporting, resolution Incidents now have broader impact 16

Financial Transparency Typical Process For Chargeback / Showback SERVICE COSTING PRICING ANALYSIS METERING / INVOICING 1 2 3 4 5 6 7 8 Define s Categories Allocate All Costs Determine Unit Drivers Derive Unit Costs Determine Unit Prices Measure Consumptio n Invoice Business Units Funds Transfer From BU to IT Choose s That Align To Industry Offerings Both Fixed And Variable To Specific s For Costs And Prices In Each Category By Dividing Costs By The Unit Driver Prices Should Reflect Corporate Goals For Each And Map To The Appropriate Unit Drivers Create Monthly Invoices For Business Units For Each Set Up A Mechanism For Easy Fund Transfers 17

The Synergy of These Initiatives Leads to IT-as-a- Organizational Design Design Operational Optimization IT as a 18

International Specialty Retail Company Operational Integration and Enablement Client Our client is a leading specialty retailer with a global brand and is the world s largest direct marketer of outdoor merchandise. How can we assure successful deployment of converged infrastructure in our environment? To support their growing business, the client purchased a Vblock but struggled with immature processes and limited personnel to support it. They needed to understand existing operational maturity in detail and execute processes quickly while limiting risk to the environment. Finally, they needed to communicate the services they were willing to offer with the new converged infrastructure and proactively communicate how customers could request those services. Realization EMC Consulting laid the foundation for Vblock consumption with operational integration and IT service enablement, including: An operational processes maturity assessment with current state, gaps, recommendations A future state roadmap Converged infrastructure organization recommendations Documented operational processes to support the client s converged infrastructure A Converged Infrastructure Delivery model based on the customer s requirements and a multi-site Vblock platform including EMC Avamar data protection services Results The Vblock Operational Integration and s Enablement positioned people and processes to successfully support the Vblock technology at the client s primary and disaster recovery sites. 19

Global Insurance Company IT-as-a- Framework Client Leading insurance and investment company serving individual, institutional, and business customers worldwide How can we deliver better services faster and more efficiently while building a foundation for cloud computing? Our client s IT service delivery model wasn t working. The business specified technical components of their desired solutions, while IT was focused on building and delivering customized solutions. Provisioning new IT to the business takes an average of 2 months, and the IT environment is complex and inefficient. Business and IT are both frustrated. Solution EMC Consulting was engaged by the CTO team to improve the speed and quality of IT service delivery: Over a period of 6 weeks, EMC consultants worked with the client to develop an ITaaS framework and define an initial Catalog, Reference Architecture and Lifecycle governance EMC consultants also assessed current organization, processes, and infrastructure and provided a strategic roadmap with actionable recommendations to enable the client to continue to expand their ITaaS services and move forward on its vision for cloud Results The client s development of their ITaaS service portfolio is jumpstarted: Expected reduction in delivery times from 2 months to 2 weeks initially, and, over time, to just days / minutes Improved dynamic between business and IT with higher level conversations about type of service and levels of availability and performance required vs. lengthy technical discussions and negotiations about solution components 20