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Proprietary and Confidential
IT Shared ServicesTransition Strategy
2
IT Transition Strategy Deliverable
This IT Transition Strategy deliverable contains the proposed, preliminary implementation
strategy for IT shared services, including the Pilot Phase.
The objective of the proposed IT transition strategy is it to help UT Austin successfully
conduct the shared services pilots and be ready to implement the selected IT shared
services capabilities.
The deliverable contains:
– Key assumptions
– IT shared services framework for the Pilot Phase
– The recommended initial organizational structure for the pilots
– Success criteria for IT shared services implementation
– Funding and chargeback considerations
This deliverable is a Plan Phase work product. Information in the final shared services
recommendations may be different from what is in the deliverables, in response to
stakeholder feedback.
33
Table of Contents
Section Pages
• Assumptions for the IT Transition Strategy 4
• Initial Scope for Services Provided 5
• Recommended Capability Improvements 6
• Scope of the Pilots 13
• Pilot Organizational Structure 14
• Potential Success Criteria 16
• Funding and Chargeback Recommendations 17
4
• Pilot existing End User Services (EUS) building on the existing shared services
experience of Liberal Arts ITS (LAITS) and Information Technology Services (ITS)
– Deploy EUS to select volunteer units on campus that are currently not using LAITS or ITS
– Deploy infrastructure services to the EUS pilot customers
– Assess the benefits of shared services realized within those units that use LAITS or ITS today
• Leverage infrastructure services (server, storage, network, and co-location) to
improve services and capabilities used during the pilots
– Improve key infrastructure services provided by ITS today and required by the pilots
– Infrastructure as a Service (Virtual Server, Server, Storage, Network, Data Center Co-Location)
– Improve capabilities and address process and tool gaps within ITS and LAITS to improve effectiveness
and efficiencies of the pilot services
• Refine shared services capabilities within ITS and LAITS
– Further improve the current service delivery
– Simplify the integration with LAITS for the pilots
UT Austin has decided to leverage an incremental approach to implementing IT shared
services, beginning with a pilot phase.
Assumptions for the IT Transition Strategy
5
The initial scope of shared services for IT will be limited to the infrastructure and end
user service bundles (green).
Initial Scope of Services Provided
Services/Components used to provide the service
External Internal
Leased Lines
External Infrastructure as
a Service
External Platform as a Service
Canvas
Collaboration
Server MgmtVirtual Machines
Storage
Wide Area Network (WAN)
Local Area Network (LAN)
Network Operations
Data Center Operations
Facilities
IaaS Operations
Operating System (OS) Mgmt
Storage Mgmt
Database Mgmt
Content Management System (CMS)Mgmt
Application Management
Drupal Canvas
Desktop SupportFile Storage
SW ProvisioningEnd User Support
Imaging
UT EIDVoice
Data Center
Network
Platform as a Service (PaaS)
OS
Infrastructure as a Service (IaaS)
Software as a Service (SaaS)
DrupalCanvas
Storage
Database Drupal
and more
and more
Virtual Compute
Server
Service bundles provided by shared services
WikisBlogs
UT Web
Voice (Emergency, Institutional)
=
=
Initia
lly o
ut o
f sc
op
e
+
+
+
End User Services
6
Improving customer facing and operational capabilities during the Pilot Phase will provide
more realistic results during the pilots with regard to service quality and benefits.
Recommended Capability Maturity Level for IT Shared Services
Ad hoc RepeatableLegend: ManagedDefined Optimized
Service Portfolio
Common Shared Services Support Functions
Common Shared Services Management Processes
Relationship
Management
Service Center
ManagementQuality Management
Knowledge
Management
HR ProcurementFinanceFacilities
Management
Supplier
ManagementCommunicationsTrainingIT Support
Service Development (Build)
Service Strategy (Plan)
Investment
Planning
Demand/Supply
Management
Service Planning
IT Strategy
Service
Implementation
Project
Management
Change
Management
Release
Management
Service
Introduction
Service Desk
Service CatalogProvisioning
Service
Request
Incident
Management
Problem
Management
Event
Management
Asset
Management
Capacity
Management
Availability
Management
Self Service
Service Operations (Run)
IT-specific Support Capabilities
Infrastructure
Application and Information
End User Services Collaboration
Network
Data Center
Data Storage
Virtual Compute
Platform as a Service
Ad
min End User
Services
Productivity
Voice
Video
Ac
ad
em
ic
Re
se
arc
h
IT Service Portfolio
Capabilities provided shared services
across functional areas
Enterprise
Architecture
7
Capability Maturity Improvement Recommended Improvements
Knowledge
Management
Enhance
• Standardize existing knowledge assets and enable sharing across pilot service groups
• Standardize knowledge capturing and sharing process across service groups (e.g., define
roles and access rights, define standard asset location, define standard naming
conventions)
• Foster adherence with defined standards
Quality
Management
Enhance
• Define common quality framework (standards, policies, and measures) across the pilot
service groups
• Foster adherence with defined framework by establishing a QA governance function
Relationship
Management
Improve
• Define consistent relationship management process including activities like regular
discussion of Shared Services performance against service level agreements, service
needs and demand by the customer, annual planning process, etc.
• Create relationship management role that a) conducts these processes, and b) is
accountable for managing the customer relationships
• Assign roles as part-time activity
IT Strategy
Enhance
• Develop, socialize, and publish IT SSO strategy
• Implement processes to report on strategy execution
Investment
Planning
Enhance
• Leverage and deploy ITS investment planning process within the IT SSO
Demand /
Supply
Management
Improve
• Develop a work intake process as part of the pilot implementation – including project
request and approval process
• Develop an initial basic resource inventory
• Develop initial process to balance demand with supply for the pilot areas
7
Recommended Capability Improvements During the Pilot Phase (1 of 6)C
om
mo
n S
hare
d S
erv
ices
Ma
na
ge
me
nt
Pro
ces
sP
lan
Common Shared Services Management Process - Plan
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Current State Target State
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
8
Capability Maturity Improvement Recommended Improvements
Service Planning
Establish
• Leverage the pilot to establish an initial service lifecycle process with a strong focus on
planning service improvement and enhancement of the services in scope for the pilot
Enterprise
Architecture
(EA)
Establish
• Establish IT SSO EA function with an initial focus on the pilot service scope
• Define IT SSO EA processes and governance
• Develop IT SSO EA assets for the in-scope services (infrastructure, information,
application)
Project
Management
Enhance
• Use existing project management processes and methods from the ITS Applications team
and/or LAITS. Enhance these where applicable for the infrastructure area
• Apply project management processes and methods to the pilot service development and
deployment
Service
Implementation
Improve
• Use existing service implementation processes and methods from the ITS Applications
team and/or LAITS. Enhance these where applicable for the infrastructure area
• Ensure service implementation processes and methods are applied to the pilot service
development and deployment
Service
Introduction
Improve
• Develop standardized approach for service introduction
• Standardize service impact assessment and readiness process
• Establish oversight function for service introduction
• Apply service introduction approach and impact assessment to the pilot areas
8
Recommended Capability Improvements During the Pilot Phase (2 of 6)P
lan
Plan – Service Development (Build)
Current State Target State
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Se
rvic
e D
eve
lop
me
nt
(Bu
ild
)
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
9
Capability Maturity Improvement Recommended Improvements
Change
Management
Improve
• Develop and implement a standardized change management process across all pilot
services
• Establish and maintain a unified change calendar
• Establish a Change Control Board owning all changes that are applied impacting the pilot
areas
• Track, investigate, and report unauthorized changes
Release
Management
Establish
• Establish basic release management process to manage pilot environment changes
through a release management process
• Develop a release plan to synchronize production changes across all pilot services
Self Service
Improve
• As part of the IT service management (ITSM) implementation, establish a self service
capability enabling users to request services from the service catalog
• Enable user to track service request status online
• Enable user to review their service portfolio online and request changes to the service
portfolio
• Enable user to initiate and track incident tickets online
• Enable user to make changes to incident tickets as appropriate
• Foster self service usage
Service Desk
Improve
• Establish service desk function within ITS and LAITS that provides similar consistent and
reliable service quality
• Automate processes using the selected ITSM tool and leverage telephone routing
technology
• Ensure all service areas are properly integrated with the service desks – so that tier 2 and
3 support can be requested, monitored and the agreed upon service agreements are
fulfilled
• Train service desk team on new processes and instill customer service mentality
• Conduct quality checks (e.g., customer feedback, quality tests)
9
Recommended Capability Improvements During the Pilot Phase (3 of 6)
Service Development (Build) – Service Operations (Run)
Current State Target State
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Se
rvic
e D
eve
lop
me
nt
(Bu
ild
)S
erv
ice O
pera
tio
ns
(R
un
)
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
10
Capability Maturity Improvement Recommended Improvements
Service Request
Improve
• Develop standardized request management process (approval and fulfillment) and deploy
across all pilot services
• Implement automated request management process using the selected ITSM tool.
Integrate with provisioning process and the pilot service catalog
• Integrate request management process with existing authentication tool
• Train service teams and service desk on new request management process
• Provide information to pilot customers about new request management process and
promote self service capabilities
Incident
Management
Improve
• Develop and implement standardized incident management process across all pilot
services
• Leverage new ITSM tool to integrate incident ticketing with the service desk and establish
the required workflow across all pilot service areas
• Integrate incident management with existing authentication tool
• Train all service teams on new incident management process – including the service level
agreement across all service areas
• All service areas will use the new incident management process
Problem
Management
Establish
• Integrate the problem management process into the incident and event management
process
• Establish triggers that initiate the problem management process
• Start to develop known error database
Event
Management
Establish
• Establish standard event processes across all pilot service areas
• Develop run books for the pilot services
10
Recommended Capability Improvements During the Pilot Phase (4 of 6)
Service Operations (Run)
Current State Target State
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Se
rvic
e O
pera
tio
ns
(R
un
)
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
11
Capability Maturity Improvement Recommended Improvements
Asset
Management
Improve
• Standardize the asset management process and approach across the pilot service areas
• Leverage existing tools
Availability
Management
Improve
• Establish service level agreements (SLAs) for the pilot services with customers
• Assess how SLAs in the various areas can be monitored
• Enhance existing availability management tools to track SLAs
• Establish SLA tracking at the IT SSO level for all pilot services and customers
Capacity
Management
Improve
• Extend existing capacity management processes to provide a manual process for the pilot
area
Provisioning
Improve
• Establish a manual process for each service that integrates with the request management
process to ensure a) that requested and approved services are implemented properly
within the agreed SLAs, and b) are funded in line with the funding and chargeback model
• Leverage the new ITSM tool and processes that ITS has planned to implement
Service Catalog
Enhance
• Leverage existing service catalog capability within ITS
• Review how the processes can be transferred to the new ITSM tool
11
Recommended Capability Improvements During the Pilot Phase (5 of 6)
Service Operations (Run)
Current State Target State
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Se
rvic
e O
pera
tio
ns
(R
un
)
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
12
Capability Maturity Improvement Recommended Improvements
Finance
Improve
• Develop cost to serve model for the services included in the pilots
• Develop funding and chargeback model for the services included in the pilots
• Establish financial reporting pilot services
• Conduct benchmarks against market data to validate productivity improvements for pilot
area
Supplier
Management
Improve
• Establish supplier management function and processes – in case the pilot will leverage
significant external services (e.g., Software as a Service, Platform as a Service)
12
Recommended Capability Improvements During the Pilot Phase (6 of 6)
Common Shared Services Support Functions
Current State Target State
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Defined
2 3
Ad Hoc
1 4
ManagedRepeatable
Co
mm
on
Sh
are
d
Se
rvic
es
Su
pp
ort
F
un
cti
on
s
1313
The IT pilots will cover the initial scope of the IT shared services, including IT
infrastructure services and End User Services.
Scope of the Pilots
In-Scope
Services
Key components of the service Provided by
End User
Services (EUS)
• Helpdesk
• Desktop Support including voice
• Desktop Engineering
• Classroom support
• Local network support (in conjunction with
network service)
• Lab and system support for non-commodity IT
infrastructure
LAITS and ITS
Infrastructure as
a Service (IaaS)
• Virtual Compute (consisting of virtual machines
and storage)
• Storage
• Physical Servers
ITS
Data Center • Co-Location services ITS
Network • Network service (LAN administration, support
and provisioning: cover the entire network
services down to the jack in conjunction with
the onsite End User Services team)
ITS and LAITS
14
Attainment of a single EUS capability is recommended by the end of the Pilot Phase,
allowing UT Austin to limit competition and promote integration.
Organizational Alternatives for End User Services
Degree of resulting benefits for UT Austin HighLow
Applications
PaaS
IaaS
Hosting/Network
EUS – Low Touch
EUS – High Touch
Applications
PaaS
IaaS
Hosting/Network
EUS – Low Touch
EUS – High Touch
Applications
PaaS
IaaS
Hosting/Network
EUS – Low Touch
EUS – High Touch
Applications
PaaS
IaaS
Hosting/Network
EUS – Low Touch
EUS – High Touch
Cri
teri
a
Customer Type
(Academic or
Administrative Unit)
Customer Type
(Academic or
Administrative Unit)
Service Level (High
versus Low Touch for
EUS)
None
Sc
op
e
of
Div
ide
All IT Services by units EUS by units EUS (High Touch
only)
None
Imp
ac
t
• Three core IT
organizations
• Competing IT shared
services
• Risk of stranded assets
• Limited consolidation
• Drives divide between
academic and
administrative
Org
an
iza
tio
na
l
Ap
pro
ac
h
• Establishes 2 EUS
units with the risk of
• Stranded assets
• Limited consolidation
• Risk of scope
expansion by other
CSUs not in the pilots
• Increased campus
acceptance
• Enforces deep
collaboration between
both organizations
• Simplifies future
merger
• Increased campus
acceptance
• Highest degree of
consolidation and
service integration
• Limited campus
acceptance today
Applications
PaaS
IaaS
Hosting/Network
EUS – Low Touch
EUS – High Touch
All of EUS is in one
organization
EUS
• Establishes one EUS
service model across
UT Austin
• Simplifies integration
with rest of IT SSO
• Simplifies future
merger
• Potentially increased
campus acceptance
Pilots Future shared
services
15
The IT Shared Services Lead will coordinate the IT Shared Services pilots, improve the
capabilities, and prepare the IT shared services rollout.
IT Shared Services Pilots will be led by a Program Lead
Shared Services Lead
IT Shared Services
Program Lead
CIO
ITS
VP & CFO
LAITS
Applications
Systems
Data Center
Networking & Telecommunications
Customer Support Services
ISO
Dean of CoLA
Implement, conduct,
and evaluate pilot
16
Continuous tracking of shared services performance will help to ensure that UT Austin
will realize its goals in the short and long run. The Pilot Phase will be assessed based
on these success criteria wherever feasible.
Potential Success Criteria
Improve service quality
Increase career opportunities for staff
Reduce costs
• Adherence to Service Level
Agreements (SLA) measured as
performance against agreed
upon Key Performance
Indicators (KPIs)
• Customer Satisfaction
• Customer surveys
• Other informal feedback
• Performance measures (e.g.,
response times, wait times,
provisioning times)
• Operational effectiveness
comparison
• Industry benchmarks
• Baseline versus pilots
• Cost to serve - service cost
model (fixed cost, variable
cost)
• Customer support ratios
• Realized cost reduction
• Staff engagement
• Staff surveys
• Other informal feedback
• Defined career path for
shared services
• Staff attrition rates
17
A funding and chargeback model based on cost to serve can help UT Austin better
understand how it will realize the business case in the future.
Funding and Chargeback Model Recommendations
• Develop a cost to serve model for IT services included in the pilots
– Develop a cost model that is aligned with market standards and track against the model
– Objective of the model is it to track the true cost to serve for UT Austin by including all labor and non-
labor costs
• Establish a common funding and chargeback model based on the cost to serve model
– Implement simple model that is reasonable, transparent, and reflects the true cost to serve
– Incentivize the use of shared services
– Help CSUs understand what their charges cover
– Help CSUs understand what cost they can influence
• Long term, develop a cost to serve model that is automated and creates a true cost to
serve model for each service
– Includes all direct cost of the service
– Includes all indirect cost of the service
– Differentiates between variable and fixed cost
– Is in line with standard cost models used for benchmarks in the marketplace
– Regularly report (e.g., monthly, 4 times a year, semi-annually) cost to serve actuals to the IT shared
service governance committee