Enabling Business Value Through
Effective Service Management
Sandeep Gondhalekar
Director Consulting
...
Introduction: Quint Wellington Redwood
Founded in 1992 in The Netherlands
18 years of ITSM experience
18 years of ITSM exp...
Quint’s Portfolio
Training, Benchmarking and Consulting,
Training Benchmarking and Consulting
IT Ser...
“Demonstrate Business Value”
Top CIO Priorities
...
CIO and Business agenda topics
“How can my IT Organization
improve its Performance “How do I get...
IT has changed the way business is run
of mission critical business processes are automated
by enterpris...
How IT contributes to Business Value?
Stable Service Innovation Agile Service
Predictable New ...
The  Customer perspective !
Cost Drivers Competitors
Custom...
Measurement Focus
Why, What and How
y,
Why
Wh
We require measurement so as to know where we 
stand
...
The KPI’s and Value drivers
Execution KPIs Content KPIs
Ability to ...
IT Goals and Value Drivers
Quick
No IT Outages New Us...
Value drivers and their desired trends
Value Driver Trend
Lost Production Hours
Time to Market of Cha...
Identify and Manage Value
Information is ...
Value Drivers 1, 2: Translation to $
“An example”
An example
...
Service Management – Traditional 
Process‐based Implementation
Process based Implementation
Key Un...
Service Management – Emerging Trend
Performance‐based Implementation
Performance based Implementat...
Performance Based Service Management
Measurable, fact based, result‐ oriented way of improving IT services 
y, g ...
Typical Project Activity
Stage 3 Act
Stage 1 Stage 2 ...
Identify and measure KPI’s
Implement
Metrics corrective ...
Set up a Performance Based
Dashbo...
Roadmap Model
EXECUTION CONTENT ...
Roadmap Milestones
An example of PBSM implementation
An example of PBSM im...
Case Study I
“Quint has achieved a tremendous result in training our people in IT
Service M...
Case Study II
“Quint’s advisers have the know how of the best practices in this area
and ar...
To summarize…
KISS principle
KISS principle
Iterative cycles than long haul
Incremental Improvements
Focus on values ...
☺Thank you for your time ☺
Sandeep Gondhalekar
Director Consulting
s.gondhalekar@quintgroup.com 
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Nasscom Hyderabad Emerge Friday 2.0 14 May 2010

Published on: Mar 3, 2016
Published in: Business      
Source: www.slideshare.net


Transcripts - Nasscom Hyderabad Emerge Friday 2.0 14 May 2010

  • 1. Enabling Business Value Through Effective Service Management Sandeep Gondhalekar Director Consulting Quint Wellington Redwood
  • 2. Introduction: Quint Wellington Redwood Founded in 1992 in The Netherlands 18 years of ITSM experience 18 years of ITSM experience World‐wide presence – 22 countries supporting 44 countries Core business: improvement of ICT organizations p g Introduced ITSM in India in 1999. In India Since 1999 (Offices in New Delhi, Bangalore, Hyderabad & Pune) •Finland •Benelux •France •Germany •USA •Spain •Italy •Japan •Mexico •India •Malaysia •Brazil Brazil •Australia
  • 3. Quint’s Portfolio Training, Benchmarking and Consulting, Training Benchmarking and Consulting IT Service Management Training and awareness g Assessment – ITSM/ ISO 20000 Process Implementation Service Management Tool Selection Service Management Tool Selection Benchmarking and Performance Enhancement Sourcing strategy, selection & contracting Helping organisations to out‐ or in‐source   Helping organisations to out or in source Evaluating Existing Outsourcing Relationships and adding value to  improve the services out of the outsourcing relationship. Supplier IT Alignment and Integration with the Business Drivers Supplier IT Alignment and Integration with the Business Drivers Contract management Managing outsourcing deals Sourcing Governance Framework k IT Strategy / IT Governance Assessment based on Cobit 4.1  Balance Score card
  • 4. “Demonstrate Business Value” Top CIO Priorities Finding IT’s Business Value “In a recent Forrester survey only 15% of IT leaders declared themselves aligned with the business. What that tells us is that IT-business alignment isn t just a problem – it’s bigger and isn’t it s persistent.”
  • 5. CIO and Business agenda topics “How can my IT Organization improve its Performance “How do I get the most out How towards the Business?” of my current IT organization?” “My customers do not recognize the added value of my IT “How do I get my IT Organization Organization” to be customer focused?” “My customers think the Time-to-Market of new services is too long long” “What is the added value of “Does my IT organization have Does using a Service Management g g the right size/cost level?” standard?” Effective Service Management can answer these questions
  • 6. IT has changed the way business is run of mission critical business processes are automated by enterprise applications 90% Yankee Group of IT projects are delivered over budget 50% Gartner 50% of IT projects fail to meet objectives Gartner This brings an opportunity to change the way IT is run
  • 7. How IT contributes to Business Value? Stable Service Innovation Agile Service Predictable New Timely Reliable Features Improvements Service Effectiveness Changes Efficiencies
  • 8. The  Customer perspective ! Cost Drivers Competitors Customers Reliable Service Improvements Market New / Changed No Service Outages Business Services Quick New Use of IT IT No IT Outages Time to Market Innovations of Changes
  • 9. Measurement Focus Why, What and How y, Why Wh We require measurement so as to know where we  stand We require measurement so as to know are we  improving What Value to IT Value to IT Value to Business How Performance Indicators – Lead indicators Goal Indicators – Lag Indicators Goal Indicators Lag Indicators
  • 10. The KPI’s and Value drivers Execution KPIs Content KPIs Ability to Strategic Value  Strategic Value Ability to Execute the Value Drivers of IT KPIs define the right thing Internal Efficiency  right thing KPIs IT Operation KPIS IT Operation KPIS P Process R Tactical KPIs Output Indicators O C E S S Process E Operational KPIs activity S indicators
  • 11. IT Goals and Value Drivers Quick No IT Outages New Use of IT Time to Market of Changes “Maintain current “Give advice on current “Provide new functionality” and new functionality” functionality” 1. Lost Production Hours 2. Time to Market of Changes 3. Effectiveness of Changes 4. Quality of Plans 5. Number f Proactive Ch 5 N b of P ti Changes
  • 12. Value drivers and their desired trends Value Driver Trend Lost Production Hours Time to Market of Changes Effectiveness of Changes Quality of Plans Number of Proactive Changes
  • 13. Identify and Manage Value Information is (part € More revenue of the) the product € Increase revenue at the same cost level Better Service or The Delivery channel Higher Quality g y is IT based Ability of business to define revenue generating opportunities € Decrease Costs IT is a production factor Decrease costs at Increase the € Value of IT € the same revenue level Increased speed, IT is a p predictability,y coordination reliability, flexibility mechanism Ability of business to define efficiency improvements € Decrease (TCO) IT is a Cost Unit € IncreaseIT assets on the the return Increased utilization, tili ation IT is the Information technical performance Transportation Infrastructure Ability of IT to identify and define cost reduction opportunities
  • 14. Value Drivers 1, 2: Translation to $ “An example” An example A. B. C. D. No. of incidents  and  resolution  ∝ Hours that incidents are ∝ Hours that IT customers ∝ Excess cost and lost times open cannot work revenue Incident P i it I id t Priority Critical C iti l High Hi h Medium M di Low L Total T t l Number of incidents 29 43 166 2440 2678 Total time to repair (hours) 197 1100 4354 70125 75776 Influence factor 1000 100 10 1 Total loss hours in business 197000 110000 43540 70125 420665 Dependency factor 33 33 33 33 Adjusted time lost 65010 36300 14368 23141 138819 Cost per hour 50 50 50 50 Total cost to the business of lost productive hours 3250500 1815000 718410 1157063 6940973 ∞ = proportional
  • 15. Service Management – Traditional  Process‐based Implementation Process based Implementation Key Unit of planning: Process Maturity Key Success Indicator: Maturity improvement K S I di M i i Best suits organizations that:  Are geographically widespread Do not have a (basic) common tool Have diverse backgrounds (unconsolidated M&A’s)  Have been given enough time to sort out the problems Have been given enough time to sort out the problems Pitfalls: Non optimized performance May not be focused on the customer May not be focused on the customer Focus on individual processes with a lack of integral overview Too many KPIs No clear goals N l l Processes compliant but customers still not satisfied
  • 16. Service Management – Emerging Trend Performance‐based Implementation Performance based Implementation Key Unit of planning: Value Drivers [Business Focus] Key Success Indicator: Measured value driver  improvement Best suits organizations that require rapid results in: Reducing lost production hours due to IT d l d h d Improving Time to Market Improving relationship between Business and IT Improving relationship between Business and IT Better anticipate future developments Have a (basic) common tool (required) Have basic processes already implemented (required) Customer is willing to participate and learn (required)
  • 17. Performance Based Service Management Measurable, fact based, result‐ oriented way of improving IT services  y, g j delivery, aligned with business objectives Steps beyond Process driven approach  by limiting the number of  business‐focused IT KPIs, called the IT Value Drivers business focused IT KPIs called the IT Value Drivers Radically improves IT Organization capabilities in a short time with  easily and unambiguous measurable results  l d b bl l It is a repetitive method building on previous achievements to  p g p improve step by step – a defined evolutionary approach PBSM is a  fit for purpose use of industry recognised best practices PBSM is a 'fit for purpose' use of industry recognised best practices  (ITIL, ISO20K, PRINCE2, Lean Six Sigma) Uses available resources U il bl
  • 18. Typical Project Activity Stage 3 Act Stage 1 Stage 2 Stage 4 Prepare Focus Maintain Step 1 Measure: Prepare the Value Driver report; Step 2 Analyze: Determine areas of performance weakness using team members observations in combination with the Value Driver measurements; Step 3 Plan Activities: Determine the course of action to resolve the performance weakness and assign actions to the members of the Improvement Team; Step 4 Communicate: Explain the findings and the way forward; Step 5 Execute: Implement the changes proposed in step 3. Performance on Value Drivers i publicized and di Di is bli i d d discussed weekly d kl
  • 19. Identify and measure KPI’s Implement Metrics corrective actions and Present the Objectives conclusions Analyze the information Process the data Generate the data Define available metrics Define the necessary metrics
  • 20. Set up a Performance Based Dashboard %open Std C hanges older than30 days, Non Standard Changes delivered within agreed date, (operationstarget: lessthan 5%> 30 days) (operations target: > 70% by 31-1-2008, >95% by 31-03-2008) 4 60% 100% 50% 80% Dashboard 40% 30% Target <30 d 60% Within agreed date > 30 Days 40% target % 20% 20% 10% 0% 0% November December W1 W2 W3 W4 W5 W9 W10 W12 2007-11 2007-12 2008-01 2008-3 W10 W11 W12 W13 Target <30 d 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Within agreed date 68% 62% 58% 47% 60% 63% 36% 55% >30Day >30Days 44% 52% 52% 45% 34% 34% 30% 20% 19% 22% target % g 70% 70% 70% 70% 70% 70% 70% 95% Generator 95% of all standard changes delivered within agreed (contracted) delivery date Targets Count of Change Ref. Proposal on request within 8 days ANCR Region APAC EMEA NASA #N/A Total 68 616 124 36 3 95% of all non-standard changes delivered as agreed upon Grand Total G dT t l 844 Count of Change Ref. ANCR Region Open Week 200632 APAC EMEA 1 NASA 1 #N/A Grand Total 2 95% of all incidents solved within agreed delivery date 200639 1 1 less than 5 % of all incidents open longer than 30 days 200642 1 1 200645 1 1 200650 1 1 200652 2 2 200653 1 1 200702 3 3 200703 2 1 1 4 200705 200706 200708 200710 1 1 1 1 1 1 1 3 1 2 1 Less than 5% of all standard changes open longer than 30 days 200713 1 1 200714 2 3 5 200715 200716 2 4 2 4 Less than 5% of all non-standard changes open longer than 30 days 2 CSV CSV Or Or Extraction Excel Excel Extract Extract 1 Information from registration tools Changes Incidents
  • 21. Roadmap Model EXECUTION CONTENT ACTION CYCLE Service Strategy Dedicate resources QUARTERLY Goals R G l & Results lt Make Benchmark And Business Case Reduce lost production R d l t d ti Internal Communication Management of Change hours due to IT Value Drivers Improve Time to Market ACT Improve relationship BI-WEEKLY Business and IT Improve anticipation of future developments Week 1 to n...... Realized Goals & Results Dashboard BI-WEEKLY Maintain Communication with stakeholders BI-WEEKLY
  • 22. Roadmap Milestones An example of PBSM implementation An example of PBSM implementation 6-9 months 6-9 months 3-6 months 3-6 months Reduce lost Improve Improve Better production Time to Relationship anticipate hours Market Business and future due to IT IT developments Incident/Request/Event Mng. Change Management Service Level Mng. Service Continuity Mng. g Problem Management Release & Deployment Mng. p y g Service Catalogue Mng. g g Capacity Management p y g Availability Configuration Management Service Evaluation Security Management Service Desk Service Desk Service Desk Financial Management Results: •Results: •Results: R lt •Results: • Implemented guiding • Changes • Customer • Improved coalition implemented in time expectations are effectiveness of IT •Increase in customer and without causing managed service delivery satisfaction disruptions (Catalogue, SLA • Increase in cost •Implemented common Implemented • Alignment between and reports) p ) control tooling solution Software • Customers needs • Outages repaired Development and are managed within agreed time Control & Distribution (aligning with • Recurring incidents • Cost reduction business are investigated and • Increase in customer requirements) removed satisfaction
  • 23. Case Study I “Quint has achieved a tremendous result in training our people in IT Service Management. Our IT team now operates as a unit. What’s more, we now have fewer incidents and, when we do have them, they’re resolved more quickly!” David Redpath, Group ICT Manager with Hertel Standardizing the way we work over the different countries Challenge g Challenge • Professionalize the IT Organization • Prevent unplanned outages by improving the processes Solution • Implementing Performance Based Service Management A well functioning Service management organization within one Results quarter: • 50% reduction of the number of critical incidents • 40% reduction of the ticket backlog • 25% reduction of incidents resolved outside of the SLA
  • 24. Case Study II “Quint’s advisers have the know how of the best practices in this area and aren’t afraid to get their hands dirty. We now score an 8 or higher in terms of customer satisfaction and we have Quint to thank for that!” Eugène Boon, manager unit ICT, Zaans Medisch Centrum Helping IT organization to become a reliable partner for the business Challenge g Challenge • Implementing service management p p g g processes in accordance with ITIL • Reduce lost production hours caused by poor IT Solution • Performance Based Service Management Results A well functioning Service management organization • Reduced lost production hours by over 90% • Cost of IT disruptions reduced by 95% • Improved service level performance to over 90% of calls resolved with reduced timeframe • Customer satisfaction increased from 7 to 8,5
  • 25. To summarize… KISS principle KISS principle Iterative cycles than long haul Incremental Improvements Focus on values and outcomes
  • 26. ☺Thank you for your time ☺ Sandeep Gondhalekar Director Consulting s.gondhalekar@quintgroup.com

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