© Fujitsu Services 2008

9th ANNUAL PROCESS EXCELLENCE SUMMIT

London, 16th APRIL, 2008

Delivering Lean

IT Services Phil Falato Fujitsu, London

© Fujitsu Services 2008

The Winchester “Mystery” house

Today’s CIO is under siege

IT today is like the automotive sector of 20 years ago

TYPICAL IT COST BREAKDOWN

Infrastructure

50%

Services

17%

Run

nin

g

Le

ga

cy

Pro

jects

Integrating apps. into

legacy

25%

Value-Add

8%

• An industry stuck in design excellence

• The crushing weight of bespoke-ism

• Living on change control

• Over 65% of costs to run legacy

• New apps integration challenging

• Game of diminishing returns

Is there a better way?

Industrialising IT through the application of Lean

FUJITSU’S APPROACH TO DELIVERING LEAN IT SERVICES

Standard, pre-tested assembly components

Continuous improvement aimed at eliminating waste

Can you industrialise IT?

Fujitsu: where East meets West

FUJITSU IS THE THIRD LARGEST IT COMPANY IN THE WORLD

In summary

• A $43.2bn (€32.5bn) leader in

IT systems and services for the

global marketplace

• Core businesses of:

• Technology Solutions

(System Platforms &

Services)

• Ubiquitous Product Solutions

(PCs, HDDs, etc.)

• Device Solutions

• Fujitsu has the highest share of

the IT services market in Japan,

the 3rd highest worldwide

• Sales and support operations in over 70 countries

• 161,000 employees worldwide

Americas

11,300

EMEA*

22,300

Asia-

Pacific

28,700

Japan

98,700

Lean is fundamentally a mind-set

Relentless Customer Focus Taking the Long Term View

Respect for the Individual Collective self-improvement

Continuous improvement

An architecture for delivering service

MAKING SERVICE ENVIRONMENTS MORE LIKE FACTORIES: HIGH EFFICIENCY AND STANDARDISATION

First Contact

Second Line

Desk Side Services

Networks Data Centres

User Demand

Traditional Environment

• Unpredictable Demand

• Optimised silos

• Reactive approach

• Disempowered culture

• Technical measures

• Non-Standard processes

Sense and Respond

• Predictable Demand

• Optimised end-to-end

• Proactive approach

• Empowered culture

• Business measures

• Standard processes

Increase predictability in user demand

Eliminate Waste Demand Reroute to Cheaper Channels

Optimise end-to-end delivery and standardise processes

Eliminate Waste Activities Shift work to the left

Service Integration

Management and Audit Process Ownership

An architecture for delivering operational excellence

Sense and Respond: Delivering Lean Service through Continuous Improvement

Lean Tools and Techniques

Six-Sigma: Reducing Defects and Variability

Business Process Architecture: Fundamental Business Process and IT Infrastructure Design

Business Operating Model: Business Architecture and Context

A day at the customer interface

Communications Cell 15 min/day • Customer value • People • Performance • Improvement

…Team 1 answers calls as usual

Pareto Analysis

Value Failure Ratio

Statistical Process Control

Creative Problem Solving Small team structured improvement process

Kaizen Large team three-five day process improvement workshop

Audit Board Management audit of Standard Work and issues identified

9:00-9:15am Communications Session Review and Plan

9:15-1:30pm Service Delivery Performance analysis

1:30-2:15pm Issue Identified at 1:00pm Problem solving session

5:45-6:00pm Audit Boards Updated Senior management visibility

…Team 2 continuous improvement analysis

Gemba Management Go-See

Hoshin Kanri Policy Deployment

CREATING AN EMPOWERED CULTURE AT THE CUSTOMER INTERFACE

A day at the customer interface

Striving for better service at lower cost

THE ECONOMIC AND SERVICE BENEFITS OF “SHIFTING TO THE LEFT”

Striving for better service at lower cost

Lessons Learnt

Capacity creation not cost reduction

“If it ain’t broke, improve it!”

Emphasis on small, incremental, sustainable

Sharing, not imposing best practices

Quality first, then costs

Inverting traditional hierarchies

Treating “urgency addiction”

Celebrating problems

Looking across organisational silos

Leader as a coach and mentor

Can IT be delivered at half the cost?

THE POTENTIAL IMPACT OF DELIVERING IT THE LEAN WAY

Infrastructure

50%

Services

17%

Run

nin

g

Le

ga

cy

Pro

jects

Integrating apps. into

legacy

25%

Value-Add

8%

Infrastructure

20%

Improve

10%

Run

nin

g

Le

ga

cy

Orchestrate

15%

Value-Add

55%

Pro

jects

Project prioritisation through

value based governance

Building from standard, pre-

tested components

Building from a standard,

validated library

Eliminating process and

demand waste

Standardisation and

rationalisation of processes

Thank you

The one thousand mile journey starts with a single step