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TRANSCRIPT
Bank of Ireland
Service Integration as a means to govern a multi-
vendor IT estate
11th October 2013
Gerry Flanagan (Accenture) Sharon Donnelly (Bank of Ireland)
Introductions
What is Service Introduction and why is it important?
Agenda
Q&A
Service Integration in Bank of Ireland: The journey so far…
What is Service Integration?
� Service Integration is a management approach to coordinating the different services provided through multiple Managed Service contracts.
� It is aligned with ITIL and leverages the ITIL based processes adopted by Vendors
� Each IT vender to an organisation provides its own service(s) defined in their Service Schedules
� The role of Service Integration is to coordinate these services and to govern them through a structured SLA/OLA Framework, to achieve the outcomes required by organisations
� In order to effectively manage a multi-vendor model, IT organisations must fundamentally change their DNA to become Service Integrators.
� The discipline of Service Integration is growing in adoption as a preferred IT Management model and will continue to do so in support of emerging technologies such as Cloud, BYOD, SaaS, IaaS, PaaS, etc.
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Developing industry trends are demanding that IT organisations adopt a multi-vendor Strategy for the IT organisation. However, engaging multiple vendors who may offer fundamentally different services brings its own challenges. Service Integration has developed over the last number of years into a separate discipline to manage the increasing complexity of multi-vendor strategies. It is an emerging preferred practice as a key enabler in multi-vendor sourcing.
What is a Service?
A service is a configuration of the Service Assets configured in such a way as to provide the business with the means to achieve some desired outcome. For example a Payroll service is a configuration of an Application(s), Infrastructure on which to run it, the team (organisation) of People with the Skills (Knowledge) to support is, the budget (Financial Capital) for pay for it, etc, etc. This Payroll service satisfies the business need to pay its employees and agreed rate for their labour and fulfil its Tax and Legal obligations.
Management Organisation
Processes Knowledge
People
Information
Applications Infrastructure
Financial Capital
Cap
abili
ties
Res
ourc
es
Ser
vice
Ass
ets
IT Value Creation
The basis for business value generation
= + With organisations increasingly seeking to differentiate through Services that create enduring value for the Business and its Customers, IT value creation can be broken down into two distinct components:
What are value-add services?
Examples: I want to… § …access up-to-date information… § …pay bills and view accounts… § …open accounts, etc… § …service accounts, transfer funds, etc…
Examples: § …with… § …24 x 7 remote availability § …capacity for high transactions § …protected sensitive data § …service restoration within 1 hour § …availability through the internet
Utility: ‘What the Customer gets’
Warranty: ‘How is it delivered’
What is a service?
To understand how to address these challenges it is important to understand what are services and value-add services.
The Challenge for Bank of Ireland in a multi-Vendor Sourcing Model
Each Service Provider can: • Have their own Processes • Have their own Process Owners • Produce their own MI reporting • Have differing SLAs and KPIs • Have independent contracts • Have no interoperability
agreements with the other Service Providers
• Be subject to discrete Service Credits
• Have different business priorities • Have individual contractual
governance requirements • Etc.
The challenge for IT is to integrate the services of our vendors into a suite of IT service packages to deliver desired business outcomes which will generate value for our business
Service
Customer A
Customer B
Customer C
Service
Service
Service
Management Organisation
Processes Knowledge
People
Information
Applications Infrastructure
Financial Capital
Cap
abili
ties
Reso
urce
s Ser
vice
Ass
ets
Management Organisation
Processes Knowledge
People
Information
Applications Infrastructure
Financial Capital
Cap
abili
ties
Reso
urce
s Ser
vice
Ass
ets
Management Organisation
Processes Knowledge
People
Information
Applications Infrastructure
Financial Capital
Cap
abili
ties
Reso
urce
s Ser
vice
Ass
ets
Application Support
Application Maintenance
Voice & Data Services
Internet Services
Infrastructure Management
Service Desk
Application Services
Telecoms
Infrastructure
Platinum Services Services Service Assets Service Consumers
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Service Integration Models
Business
IT Retained Layer
Business Service
Management
Service Integration
Service Bundle 1
Service Bundle 2
Service Bundle n
Delivery Management
Delivery Management
Delivery Management
Delivery Delivery Delivery
Business
IT Retained Layer
Business Service Management
Service Integration
Service Bundle 1
Service Bundle 2
Service Bundle n
Delivery Management
Delivery Management
Delivery Management
Delivery Delivery Delivery
Business
IT Retained Layer
Business Service
Management
Service Integration
Service Bundle 1
Service Bundle 2
Service Bundle n
Delivery Management
Delivery Delivery Delivery
Business
IT Retained Layer
Business Service Management
Service Integration
Service Bundle 1
Service Bundle 2
Service Bundle n
Delivery Management
Delivery Delivery Delivery
Model 1: In-House Service Integration with Managed Services Model 2: Outsourced Service Integration with Managed Services
Model 3: In-House Service Integration and Capacity Services Model 4: Outsourced Service Integration with Capacity Services
There are 4 basic model options for Service Integration implementation. Each model assumes an Organisational split of the IT Organisation into Business Relationship Management and Service Integration
• Re-definition of Service Management processes
• Service is managed through a SLA/OLA framework
• Restructuring and re-skilling of staff
• Implementation of Service Integration supporting tools
• Enforcement of Service Governance
• Service Integrator takes integration responsibility from the IT Organisation
• 4th party contracts are owned by the IT Organisation but OLAs and SLAs are co-ordinated by the Service Integrator
• IT Organisation focuses on business relationship management through an SLA framework
• Service Integrator takes integration responsibility from the IT Organisation
• Service Integration manages delivery staff removing 4th party management layer
• ‘Traditional’ Service Management processes deployed
• Service Integrator takes integration responsibility from the IT Organisation
• 4th party contracts are owned by the IT Organisation but OLAs and SLAs are co-ordinated by the Service Integrator
• Outsourced Service Integration manages delivery staff removing 4th party management layer
• IT Organisation focuses on business relationship management through an SLA framework
Successful management of Service Integration requires 5 key levers
A framework of decision processes and underlying accountabilities that align the delivery of integrated IT services to business objectives. At the oversight/governance level, a service integrator replaces separate, vendor-specific delivery models with a comprehensive approach that consolidates service management and metrics reporting across all service providers.
An overall integrated toolset to support Service Management and Integration processes consisting of ticket management system, overall service information repository e.g. KEDB, CMDB, KMDB, etc., Workflow, end-to-end measurement and reporting, for use by all Service Providers, Suppliers and key authorised business users
A set of clearly defined roles & responsibilities setting out how accountability and responsibility for all IT tasks is apportioned across all IT service providers both internal and external including reporting lines
A business leadership team equipped and motivated to lead the use of IT through regular Service Reviews, prioritisation of business service demand, championing best practice on behalf of IT and championing service improvement on behalf of the business to deliver services which are responsive to the needs of our customers
A consistently applied suite of redefined Service Management best practices to integrate, escalate, evaluate and facilitate the outputs from Managed Service providers own application of ITIL Service Management best practices in order to deliver a unified service portfolio, lessen risk, control costs and manage quality. A comprehensive MI Reporting Suite for managing performance and continual improvement of service delivery and support and in achieving client satisfaction by reinforcing accountability for result focused attention on areas that drive value.
Providing direction, leadership and decision
making to deliver Business value
The means to measure, monitor, review , report on and drive continual
improvement of Service Provider performance
Business involvement in the definition of
Service and prioritisation of tasks to
support that Service
The segregation of activities and definition
of responsibilities organised to delivery
value
The use of technology to gather, store,
manipulate, use and report Service
Information
Service Governance
Service Processes
Customer Service
Service Organisation
Service Tools
Lever Definition Description
Successful Service Integration relies on 5 key levers. which must be configured in a way that is appropriate to your IT organisation. Most organisations have elements of these levers in place but too often they lack the necessary maturity or their interdependencies are not effectively recognised.
Introductions
What is Service Introduction and why is it important?
Agenda
Q&A
Service Integration in Bank of Ireland: The journey so far…
Background & Context
� Following an initial assessment in 2011 we engaged Accenture to support us in driving Service Management maturity
– Phase 1: Service Management
• Focus on core processes – Incident, Problem, Change, Release & Deployment
• Improves customer engagement
• Service Operations Governance
• Refocused Process owners roles and responsibilities
– Phase 2: Service Integration
• More holistic focus across the banks run organisation
• Additional processes – Capacity, Availability, IT Service Continuity, Asset & Configuration
• Service Governance
• Roles & Responsibilities (Bank & vendor)
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Infrastructure April 2011
Applications Oct 2012
Applications Nov 2013 (Target)
Application Dec 2013 (Target)
Service Management Focus
Oct 2011/12
Network Transformation
Programme 2013
As part of the transition of Infrastructure Operations to an infrastructure service provider 2 years ago, the Bank took on overall accountability for IT Service Integration. We have continued our journey to an IT multi-vendor managed service model.
Processes • Matured Incident, Problem, Change and Release & Deployment Management processes. Assessment scores improved from 1.8 to 2.85 • Initiated ticket handling improvements at the Service Desk e.g.
• End-to-end ownership by the Service Desk • Agreed ticket hierarchical promotion on breaching to prohibit the development of backlogs for Severity 2,3 & 4 tickets • Agreement on a common set of Severity definitions
• Service Introduction and Service Acceptance Criteria drafted for Transition Planning & Support • Significant improvement in Branch deployments resulting in remediation cost reduction
Phase 1: Improvements in Governance and Processes
Governance • Implemented a suite of Operational governance meetings for Service
Management • Weekly & Monthly Service Performance dashboard for integrated service
reporting • Service Management Technology Forum established • IT Service Model defined and agreed for Technology Services
Overall Assessment
Incident Management
Problem Management
Change Management
Release & Deployment Management
Absent
0Informal
1Repeatable
2Defined
3Controlled
4Optimising
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Current Assessment Target Maturity Level
3.2
2.9
2.5
2.8
2.85
Incident Management
Problem Management
Change Management
Release & Deployment Management
Absent
0Informal
1Repeatable
2Defined
3Controlled
4Optimising
5
Overall Assessment
Current Assessment Target Maturity Level
1.9
1.5
2.0
1.7
1.8
Before After
IT Service Model
Phase 1: Improvements in Customer interactions and Organisation
Customer • Dedicated IT Service Managers refocused on customer relationship management • Service Review Score for Branch Network improved • Revised monthly Regional Sales Managers reporting pack and addition of Problem
status reporting
Organisation • Availability Manager • Weekly workshops run to increase Service Management and Service Integration
capability in the Service Management team • Redefined roles based on Service Integration Model for
• BOI Incident Manager • BOI Problem Manager • BOI Problem Champion (Application Services) • BOI Change Manager
• Drafted new role descriptions based on Service Integration Model for • Service Delivery Manager • IT Service Managers • Head of Service Integration
• IT Process Map matrix & new Technology Services Team • Position paper on Service Integration drafted
T Service Manager, Group IT, Bank of Ireland Needs to Do….
• Build strong relationships within the Business Unit and IT including senior bank officials
• Review service quality with senior managers within the Business Unit on a regular basis, conduct formal meetings, communicate performance, and gather user feedback.
• Manage the interface between the Service Management Team and senior managers within the Business Unit, Support Teams, users, and third party service providers.
• Own, manage and drive resolutions on behalf of the Business Unit across a mix of internal and externally provided support groups
• Spend 2-‐3 days per week (approx) on the road meeting with customers/branch representatives and 2-‐3 days per week (approx) in Cabinteely progressing issues
• Assist in the on-‐going development of Service Management within Group IT and championing Service Management within the Business Unit
• Assist the Service Management Team in defining, managing, measuring, and meeting users expectations
• Communicate and articulate business requirements and opportunities to the Service Management Team.
• Identify service improvements that could be made within Service Management to improve the quality of the service provided and/or the efficiency of the processes.
• Develop and maintain open communications with senior managers within the Business Unit and users. Compile Weekly and Monthly Service Review reports
• Liaise with project managers in delivery of project milestones affecting the business Unit
Needs to Have… • Strong oral and written communication • Strong facilitation and negotiation skills • Strong leadership skills • Strong interpersonal skills. • Ability to build productive working
relationships with others. • Customer Service focus • Strong Project Management skills • ITIL Trained to Manager Level • Open attitude to change • Good experience working in an multi-‐vendor
outsourced environment • Positive personal impact
Needs to Be…
• Good communicator/ administrator • Highly Customer Focused and highly
motivated • Successful implementer of change • Experienced Project Manager • Effective leader • Confident in dealing with all levels within an
organization • Welcomes new responsibilities and challenges • Decisive and inclusive
IT Incident Manager, IAS Service Management, Bank of Ireland Needs to Do….
• Own and drive an efficient and effective Incident Management process through the IT Service Providers Incident Champions/Team Leads
• Provide improvement recommendations to the Service Provider responsible for managing the Service management tool
• Monitor and track the effectiveness of 3rd
party and internal Incident Champions • Participate in the development and use of
standardised communications process • Act as escalation point for Service Provider
Incident Champions • Monitor and measure the effectiveness of the
Incident Management process • Investigate cross-‐functional incident trends
through formal trend analysis to support Problem Management
• Identify potential problems and assign them to the Problem Manager to raise as problem records
• Schedule and chair Incident Management Governance meetings and share minutes
• Chair the daily Service review meeting • Participate in relevant Service governance
meetings (e.g. Adhoc Major Incident review, Problem Management, SPB) as required
• Conduct post incident reviews/ lessons learned sessions
• Produce the incident Monthly Scorecard • Monitor performance against SLA • Provide input to continual improvement
programme • Contribute to audits as required • Review metrics reports and provide input into
dashboards and Balanced Scorecards as required
• Provide management information on IT service quality and customer satisfaction
• Own management review process of incidents that are not resolved through the standard Incident & Service Request Management process
• Ensure adequate process training is available for the organization
• Establish targets for Incident Management process improvement
• Provide SME input and guidance to Service Providers Incident Champions
Needs to Have… • Excellent interpersonal skills • Strong oral and written communication • Strong facilitation and negotiation skills • Ability to recognise and develop process
improvements • Good person management skills • Good team management skills • Business awareness • Customer Service focus • Ability to work under pressure • Good experience working in an multi-‐vendor
outsourced environment
Needs to Be… • ITIL Trained to Manager Level • Good communicator/ administrator • Highly Customer focused and highly
motivated • Successful implementer of change • Effective leader • Confident in dealing with all levels within an
organization • Welcomes new responsibilities and challenges • Decisive and inclusive • Open attitude to change
T Service Manager, Group IT, Bank of Ireland Needs to Do….
• Build strong relationships within the Business Unit and IT including senior bank officials
• Review service quality with senior managers within the Business Unit on a regular basis, conduct formal meetings, communicate performance, and gather user feedback.
• Manage the interface between the Service Management Team and senior managers within the Business Unit, Support Teams, users, and third party service providers.
• Own, manage and drive resolutions on behalf of the Business Unit across a mix of internal and externally provided support groups
• Spend 2-‐3 days per week (approx) on the road meeting with customers/branch representatives and 2-‐3 days per week (approx) in Cabinteely progressing issues
• Assist in the on-‐going development of Service Management within Group IT and championing Service Management within the Business Unit
• Assist the Service Management Team in defining, managing, measuring, and meeting users expectations
• Communicate and articulate business requirements and opportunities to the Service Management Team.
• Identify service improvements that could be made within Service Management to improve the quality of the service provided and/or the efficiency of the processes.
• Develop and maintain open communications with senior managers within the Business Unit and users. Compile Weekly and Monthly Service Review reports
• Liaise with project managers in delivery of project milestones affecting the business Unit
Needs to Have… • Strong oral and written communication • Strong facilitation and negotiation skills • Strong leadership skills • Strong interpersonal skills. • Ability to build productive working
relationships with others. • Customer Service focus • Strong Project Management skills • ITIL Trained to Manager Level • Open attitude to change • Good experience working in an multi-‐vendor
outsourced environment • Positive personal impact
Needs to Be…
• Good communicator/ administrator • Highly Customer Focused and highly
motivated • Successful implementer of change • Experienced Project Manager • Effective leader • Confident in dealing with all levels within an
organization • Welcomes new responsibilities and challenges • Decisive and inclusive
IT Activity Mapping
New/revised Role Descriptions
Phase 1 Benefits
� Increased control over processes
� Reduced deployment costs
� Specific areas of increased Service Availability
� Improved customer satisfaction
� Greater clarity on roles and accountably
� Proved the case for implementing Service Integration (Phase 2)
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Phase 2: Improvements in Service Governance
§ As-Is review of current service governance model highlighting areas for improvement
§ Proposed a To-Be Service Governance Framework mapped to the Capability Model with comprehensive terms of reference based on Service Integration approach
§ Implementation Plan to revitalise the Governance function across all Technology Services areas
§ Status tracker of Service Management governance meetings § Automated Balanced Scorecard (Draft) to present a service view of service
delivery effectiveness § Created OLA Template to facilitate multi-vendor inter-operability
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As-Is Governance Model To-Be Governance Model
Governance Terms of Reference
Governance Implementation Plan
Balanced Scorecard
Phase 2: Improvements in Service Processes
Capacity Management § Capacity Management Policy § Capacity Management Processes § Capacity Management Governance Model and
ToR’s § Component and Performance Capacity Plan
Templates § BOI Service Capacity Roadmap Template § Service Design Report template § Coaching and Mentoring § Preparing KT plan for knowledge transfer to BOI
Capacity Manager Service Design processes § Coaching and Mentoring of Availability Management,
ITSCM, Asset and Configuration Management § Medium & Long term plans for Service Design Team
Service Introduction § Service Introduction Policy § Service Introduction Processes § Service Acceptance Criteria § Service Introduction Toolkit § Service Introduction Governance Model and ToR’s § Communications Deck & Overview Deck § IT Service Model Extended § Service Impact Assessment Template
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Service Introduction Toolkit
What is our view of success?
• A Service Governance Framework of decision processes and underlying accountabilities • Less meetings but more effective meetings • Service Governance meetings which include attendance by all vendors • Apply a partnership approach based on stakeholder accountabilities and ownership
Providing direction, leadership and decision
making to deliver Business value
Service Governance
The means to measure, monitor, review , report on and drive continual
improvement of Service Provider performance
Service Processes
• Redefined processes and roles based on stakeholder responsibilities and commitments • Unrelenting focus to lessen risk, control costs and manage quality • A comprehensive MI Reporting Suite for managing performance and continual improvement • A consolidated Balanced Scorecard representing a collaborative view of Service Delivery • A revised Service Level Framework to support Service Integration
Business involvement in the definition of
Service and prioritisation of tasks to
support that Service
Customer Service
• A Service Manager team equipped and motivated to develop effective customer relationships • Regular Service Reviews with business customers supported by periodic surveys • Prioritisation of business service demand based on agreed prioritisation criteria • Champions of IT within the business and champions of service improvement for the business • Realistic and achievable continual improvement plans to close service delivery commitments
The segregation of activities and definition
of responsibilities organised to delivery
value
Service Organisation
• Clearly defined roles & responsibilities based on stakeholder accountability and responsibility • Creation of opportunities to reskill and rotate staff • An all vendor inclusive partnership model based on understanding what the Bank needs • Segregation of activities required to deliver on the Banks Service Integrations strategy
The use of technology to gather, store,
manipulate, use and report Service
Information
Service Tools
• An integrated fit-for-purpose toolset with required reporting capability • Effective use of service information repositories to support Service Analytics.g. KEDB, CMDB,
KMDB, • Comprehensive end-to-end service measurement and reporting for all vendors and key
authorised business users • Analysis of reported data by vendors to provide usable information to GTaC
Our intent is to work collaboratively with our vendors to develop a Service Integration model which will deliver the value proposition of our multi-vendor strategy to the Bank
Lever Definition What might this look like
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Overall Benefits to the Bank
� Consistent approach and understanding of Service integration across Bank of Ireland and vendors � Multi-vendor service governance ensuring the right people make the right decisions at the right time � Refocused roles based on high value activities and concentration of skill sets. � Balanced Scorecard to enable Service Based Reporting � Industry best practice for additional complementary service management processes � Service Introduction toolkit for more robust SI to protect live service and enable support � Increased value add from vendor relationships � Increased ownership within vendors � Increased discretionary capacity to flex resources � Building blocks for optimising Multi-vendor sourcing model
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Lessons learned
� All about people and behaviours – on-going engagement is key
� Service Integration cannot be achieved in pockets
� Must be grounded in customer benefits
� Cultural shifts – Doing to managing – Escalation is not failure – Not crossing the line
� Managing vendors through Governance
� Governance must be collaborative
� Strong sponsorship is required
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Our journey to Service Integration maturity is on-going. In our development of Service Integration as a means to govern a multi-vendor estate we have learned or confirmed some lessons
Thank You
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