tbm: managing the business of it

Sydney18 August

TBM: Managing the Business of IT

Mareida MackennaCFO of IT, Aon Corporation

3

Industry-Leading Franchise Focused on Risk, Retirement and Health

Aon plc: Total 2014 Revenue of $12 Billion

Risk Solutions: $7.8 Billion HR Solutions: $4.2 Billion

Aon HewittAon Risk Solutions Aon Benfield

U.S.48%

Americas (excl. U.S.)

10%

U.K.13%

EMEA19%

APAC10%

Total 2014 Revenue by Geography

#1 Benefits Administration

#1 HR Business Process Outsourcing

#1 Health Care Exchanges

Leader in HR Consulting

Serve 70% of the Fortune 500

Administer benefits for +23 million participants around the globe

#1 Primary Insurance Brokerage

#1 Employee Benefits Brokerage

Leader in Captive Management

Leader in Affinity Programs

Place +$85 billion of global premium flow

#1 Reinsurance Brokerage

Place +$32 billion of global premium flow

69,000 employees across the firm

+120 countries around the world

+500 global offices

Two industry-leading segments

Prepared by Aon Service Corporation Aon Technology | Technology Business Management

4

Internal View: Consistent with external view

consumer policies under management, globally

Petabytes

350+

10

400,000IDENTITIES

Hosting Sites

208

136,660Unique email addresses

80%

15,000In excess of

servers globally

in 55 countries

21data centers with more than

250 servers

13,400Colleague devices on guest Wifi

[email protected]

******

Username

Password

Login

Defined Benefit Administration clients with more than

400+

participants served8M

300+Health and welfare

administration clients, with more than 9.6M

participants served

More than defined contribution clients, with more than 5.4M participants

$360Bunder administration with

of all transactions processed online

in DC assets$400M nightly DC fund movement

@

of data storage globally

45M

161,000are managed in GRiDs as part of our Aon Benfield operations

active market contracts

Prepared by Aon Service Corporation Aon Technology | Technology Business Management

5

Current State: Highly complex and disparate

Future State

STREAMLINED

Current State

COSTLY SILOED REDUNDANT

COMPLEX

Future State: There is simplicity on the other side of this complexity

Aon Service Corporation | Aon TechnologyJuly 2015 | Confidential

6

Foundational Structure Building the structure for IT, Finance and Business to Partner Together


7

Partnership that is Critical to IT Cost Transparency

IT

Business UnitsFinance


8

Translating Financial and IT into Business Language

Finance should to partner with IT to translate the components of IT cost into Services– Aligning Software to Services (i.e. Microsoft to PC, IBM to Mainframe, Oracle to Database)– Aligning Staff to Services (i.e. Call Center to Help Desk Services)– Aligning Hardware to Services (i.e. HP to Unix, IBM to Linux, Dell to Windows)

IT should to partner with Finance to provide Volumes in order to create unit prices, benchmarks, metrics that help tell the story on the drivers of cost– # of Servers– # of Help Desk Tickets– # of Used and Allocated Storage– # of Users

Finance and IT should then partner with the Business to explain how their consumption of IT is driving their cost.– Finance and IT should provide the Business with levers to help them control their cost of IT– Providing a view on Fixed vs. Variable Services will help enable that conversations

Combination of Financials and IT Utilization Data is critical in building the story on what drives the cost of IT to the Business


9

Roadmap Defining the Journey for IT Cost Transparency

Aon Technology

10

IT Cost Transparency Journey

Manual

2013

Siloed

2014 2015 2016

Today, click a button and get reports in ~20 minutes

Reporting typically took 6 weeks to turnaround

ApptioMonthly-costs and utilization metrics

CMDBKicked off inventory sys.

TCOApp rationalization

TBMTechnology Business Management Office

Service CatalogStandards-based / Fixed & Variable Costs

ATUMModel for benchmarking

Create More Global Standards

Since implementing Apptio for ASC, forecast accuracy has averaged +/-0.6%

Forecast accuracy was+/-10.6% on average for 2013

Objectives and Roadmap

Service Cost Investment Technology Portfolio

Strong alignment of IT with business services and revenue

Empower the business with levers to influence IT costs

Measure return on investment to maximize IT value

IT stewardship through good environment health

IT services and costs related to business services and revenue

SLAs and reporting developed for IT directly impacting revenue

True understanding of financial impact of downtime determined

Real time application TCO actuals and forecasts

SLA and investment decisions driven using cost levers

Good consumption rewarded through reductions in TCO

Benefits realization tracking process formalized

Change, maintain and runbudget transparency

Consumption vs planned demand tracking institutionalized

Trusted inventory of IT assets 1

created and maintained

Buy, hold, sell product roadmaps developed

Improved transparency of environment health

Define framework for IT service excellence

Identify IT critical to the business

Develop SLAs and reporting for business critical IT services

Finalize IT service catalogue

Establish credibility in cost transparency

Shadow bill IT service catalogue

Define structured framework for reporting application TCO

Refresh >80% of application TCO using inventory2

Develop IT investment benefit tracking framework

Refine CBA process and develop realization tracking

Establish change and run budget transparency

Define and implement 2015 demand planning process 3

Create foundations for transparency of IT portfolio

Automate asset discovery and inventory control in key sites 4

Establish roadmaps to reduce TCO of high cost IT

Identify target availability and stability improvements

End-

Stat

eG

oals

2014

1 Application and infrastructure assets3 Projects and incremental growth

2 Application Hosting: servers and mainframe4 Internally sourced key locations

Legend:Complete In Progress

Aon Technology

12

Foundational Blueprint for Improving IT Cost Transparency

2013-2014 Q1 2015 Q2 201540%

Service Catalogue

SERVICE

Service Catalogue Management

Service Dashboard

Service Level ManagementSERVICE

MANAGER

Service Improvement

Plan

60%

CIO

Total Spend

Total Cost, Allocated Cost,

Cost Lever Driven Cost

Cost Levers, SLAs

Service Performance

Improved Services

TRA

NSP

AR

ENC

Y

BUSINESS

COO

Budget Planning

Cost Management

Business Strategy

PROJECT SPONSOR

DASHBOARD

20%

Technology Strategy

Colleague Database

Application Inventory

Datacenters

Offices Auto

mat

edD

isco

very

ExternalDatacenter Inventory

Financial Database1

Product Catalogue

Application TCO

Bill of IT

TECHNOLOGY PORTFOLIO

COST

INVESTMENT

RELATIONSHIP MANAGER

APPLICATIONDEVELOPMENT

VENDORS

Project Portfolio Management

Benefits Realization

Demand Planning

Project Status

Future Demand

Project CBA, ROI

New Consumption

New Demand

HUMANRESOURCES

CTO

Product Roadmaps

Buy, Hold, Sell Products

General Ledger

Actuals

IT FINANCEDIRECTOR

PRODUCT MANAGEMENT

CMDBFinancial

Management2

Consumption Report

Consumption Report

40%

Product Roadmaps

15%Service

Catalogue

Service Dashboard

Service Improvement

Plan

Product Catalogue

Application TCO

Bill of IT

70%

80%

90%

Project Status

Future Demand

Project CBA, ROI

10%

50%

70%

80%

10%

10%

Aon Technology

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Colleague Services Catalog

Personal Computing & Printers

Personal Computing PrintersPC-External Support (Break Fix, MACS, Support)Per # of Devices

Printer Usage: Managed PrintPer Regional Headcount

PC-Internal Support (Site Services, Support)Per # of Devices

Email & Collaboration

Email & Calendaring Collaboration Tools

Microsoft Office 365 Mailboxes (Deskless, Standard,Shared) LYNC, SharePointPer Global Headcount

GenifaxPer Pass Thru (US)

Archiving (Proof Point)Per # of Users

Lotus NotesPer Regional Headcount

Mobility Services

Mobility Support Mobility UsageMobility SupportPer % of Mobility Usage consumption

Mobility UsagePer User Consumption

Mobility BlackberryPer # of Devices

Mobility Freedom LicensingPer # of Devices

Service Desk

Service Catalogue

SERVICE

Service Catalogue Management

Service Dashboard

Service Level ManagementSERVICE

MANAGER

Service Improvement

Plan

80%

Service Desk Service Desk SupportService Desk & Incident ManagementPer # of Tickets

Global Service ManagementPer Global Headcount

Voice Support Audio ConferencingVoice Support by RegionPer Regional Headcount

Voice & Video ConferencingPer User Consumption

Voice and Video Services

Global Network Regional NetworkGlobal Data Network/India Infra ServicesPer Global Headcount

Regional Data NetworkPer Regional Headcount

Data Network


14

IT Services & Reporting Service Catalogue


15

Apptio Reporting

Apptio has a wide variety of reporting options to portray and dissect monthly costs


16

Apptio ReportingApptio contains the lowest level of detail used to construct the allocation charges. Users can view both the individual allocation products broken down by consumer, as well as the individual units that comprise the billing counts.


17

ATUM Next Phase in the Journey

tbm: managing the business of it

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