Enterprise Cloud Model Design

Enterprise
Cloud Opera1ng
Model Design
Service Oering Descrip1on

Joseph Schwartz
12/17/13
Copyright 2010-2011 Joseph Schwartz

All Rights Reserved.
Opera&ng Model
Elements
Processes how we perform ac1vi1es
that deliver predictable and repeatable
business results through competent
people using the right tools.
Governance how we make and
sustain important decisions about IT.
Sourcing how we select and manage
the sourcing of our IT products and
services.
Services our porPolio of IT products
and services.
Measurement how we measure and
monitor our performance.
Organiza&on how we structure and
organize our IT capabili1es?

12/17/13

Agenda
Major Assumptions
Operating Model Scope
Value Proposition
Design Approach
Level 0 Process Model with Level 1 ITIL V3
Mapping
The Model as a Business Planning Tool
Candidate Operational Flows
Next Steps
12/17/13

Major Assumptions
The scope of managed services addressed by the model should be flexible

enough to support technical services, e.g., network, storage, compute and
application infrastructure or middleware, needed to deliver service offerings
to the SBUs as well as the business services needed to run IT, e.g.,
infrastructure management systems, service management systems
Best practice approaches should be leveraged wherever possible to deliver a

Type 2 or 3 Service Provider Model (ITIL V3), e.g. managed and shared
services
In the Target Operational Model headcounts and skill levels will be aligned to
market standards to allow for operational metrics and KPIs to be
benchmarked against industry best practices, e.g. ratio of devices / admin,
incident metrics, etc.
The best practice numbers will serve as a goal against which the target
environment will be measured as it matures
Operational maturity and skill levels will be evaluated after a Due Diligence
phase and organizational gap remediation steps taken to ensure that the
saves promised by initiative (s) be realized.
The model must support E2E processes for all service management flows as
they span Service Desk (e.g., incident, Support and Operations, e.g., config,.
change, facilities mgmt., etc)
12/17/13

Agenda
Major Assumptions
Value Proposition
Design Approach
Mapping
Next Steps
12/17/13


Process Model
End-to-end operating processes
Process triggers and interfaces
E.g., ITIL , eTOM, ISO 2000
Performance KPIs
Operating Model
Goals are:
Operational Efficiency
Customer Experience
Revenue & Margin
People & Organization

Roles & Responsibilities (RACI)
Process owners
Escalations & interactions, etc.
Performance KPIs and Metrics
12/17/13
Technology
(IT Infrastructure, Tools & Automation)
Process automation
Data models and repositories (e.g.,
CMDB)
COTS, standards & simplification

Agenda
Major Assumptions
Value Proposition
Design Approach
Mapping
Next Steps
12/17/13

Assumed Operating Model Savings Targets Value Metric

Desired
Value Metric
Desired
Value Metric
Desired
Operations
Direction
Direction
Direction
Improved Audit
Compliance
% of Applications
Running on a
Virtualized
Infrastructure
Average cost per type of

service request
Number of emergency
changes due to
non-compliance
Percentage Re-use
and Redistribution
of Under-utilized
resources
and assets
Percentage increase in
the overall end-to-end
availability of service
Number of unauthorized
changes
Average cost per

incident
Service unplanned
downtime connected
to change activities
(hours / month)
Non-complaint assets
identified as the cause of
service failures
Mean-time between
Failures (MTBF)
Percentage reduction
in the costs and time
associated with service
provision
Time and cost to audit

and remediate (audit
cycle time)
% of Incidents
closed by
Level 1 Support
Change (all) to Admin

(all) Ratio
% Cost of Compliance to
Total IT Budget
Service downtime
connected to rollout
activities (hours /
month)
Reduction in the number

of failed changes
12/17/13


Desired
Value Metric
Desired
Value Metric
Desired
Support
Direction
Direction
Direction
Percentage reduction in
SLA targets missed
Reduction in
number
and percentage of
major incidents

and remediate (audit
cycle time)
% of Incidents reported by
End Users and
customers vs IT
Operations
% of emergency
changes due to
non-compliance
Number of changes
implemented to services
which met the customers
agreed requirements, e.g.
quality/ cost/time

and remediate (Audit
cycle time)
Percentage
increase in
customer
perception and
satisfaction of SLA
achievements
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10

Desired
Value Metric
Desired
Value Metric
Desired
SBUs
Direction
Direction
Direction
% Increase in Customer
Satisfaction of SLAs
Improved Audit
Compliance
(# of audit tests
passed
versus total)
Percentage reduction in
costs associated with
service
provision
% of IT Projects that Align

with Corporate Objectives
Cost of Unplanned
Business
Interruptions
Number of changes
implemented to services
which met the customers
agreed requirements, e.g.
quality/ cost/time
% of Budget Focused
on Operations, Labor,
Investments
Actual spend
versus
budgeted spend
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11
Agenda
Major Assumptions
Value Proposition
Design Approach
Mapping
Next Steps
12/17/13

12
Design Approach: Blending Industry Best

Practices
Isnt ITIL Enough?
ITIL V3 covers 100%+ of Day 1 capabilities
From a pure end-state design perspective,
ITIL is Internally focused experience shows
that once transparency is achieved for the
business, comparative valuation occurs
eTOM offer management and campaign
processes could address an important gap in
the end state
ITIL does not link solutions and training to a
design process (it is part of release)
The use of eTOM simply ensures that the end
state design provides full coverage in the
event the client needs to access additional
capabilities as it matures
End-to-end operating processes
Integrate with
client
requirements
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Agenda
Major Assumptions
Value Proposition
Design Approach
Mapping
Next Steps
12/17/13

14
High Level-Process Model

Strategy & Service
Business
Strategy,
Architecture &
Planning
Operations and Support

Service Lifecycle
Management
Service
Fulfillment
Service
Assurance
Service
Management
and Operations
Service Development & Management
Customer Service
Resource Development & Management
Service Configuration & Activation
Supplier Development & Management
Service Quality Management
The Operating Model shows seven vertical process groupings that are the end-to-end processes that are
required to support customers and to manage operations
The operating model also includes views of functionality as they span horizontally across the clientss internal
organization
The horizontal functional process groupings distinguish functional operations processes and other types of
business functional processes, e.g., Service Development versus Service Activation & Configuration, etc.
12/17/13

15
Operating Model E2E Processes

Built on industry best practice business and IT process
models
Addresses all of end-to-end processes needed to deliver
Managed Services to customers - Includes
Strategy and Service: Enabling processes of Business

Strategy, Architecture & Planning, including
Service Lifecycle Management and Service Development &
Management
Operations and Support: Lights on, or core operations

processes of Customer Service, Service Management and
Operations, including
Operations Support, Billing/Chargeback, Service Desk,
Service Development and Management
Service Configuration & Activation, Service Quality
Management, Facilities and Operations
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16
Facilities Management
Operations Management
Service Validation & Testing
Availability Management
Service Continuity Management
Service-Level Management
Continuous Service Improvement
Knowledge Management
Configuration Management
Change Management
Release & Deployment Mgmt.
Solution Management
Chargeback Management
Access Management
Event Management
Problem Management
Incident/Fault Management
Security Management
Supplier Management
Capacity Management
Demand Management
Compliance Management
Architecture Management
Risk Management
Service Catalog Management
Service Portfolio Management
Service Desk
17
12/17/13
Service
Management
and Operations
Service
Assurance
Service
Fulfillment
Service Lifecycle
Management
Business
Strategy,
Architecture &
Planning
Operations and Support

Strategy & Service
Request Fulfillment
Financial Management
ITIL V3 Mapping
REFERENCE MODEL
TECHNOLOGY
PEOPLE
PROCESS
Operating Model
12/17/13

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Business Strategy, Architecture & Planning

Processes
Strategy & Service covers the

processes involved in forming and
deciding Service Strategy and gaining
commitment from the business for this
Service Lifecycle Management covers

the services themselves note that
the model distinguishes Service, used
by the client to represent the
technical part of the product, and
Resource (physical and non-physical
components used to support Service)
The vertical functional groupings in

are mapped from ITIL V3, Service
Strategy and Design
12/17/13

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Level 0 Operations & Support Processes

Operations & Support
(O&S) provide the core of
lights-on Operations and
first- and second-line
support
The vertical processes in
O&S represent a view of
flow-through of activity,
and map to ITIL V3
processes where there is
functionally-related
activity, e.g., Service
Transition, Operation and
CSI
12/17/13

20
Resource Model
Inputs
Cient Org. Roles / Process/
Task Headcount
Incremental Roles /
Process/Task Headcount
needed for SVMA
Pre-program Device Count
Baseline Operational
Metrics, e.g., Device to
Admin Ratio
Day 1 Device Count
Map To
End State Roles / Process / Task
Headcount
Device Retirement Schedule
New Device Deployments schedule
Role/Process/Task Headcount
Apply
Industry Benchmarks for Operational Metrics for Mature, Automated Processes, Roles Tasks
Result
Schedule of Decremented initiative Ops Roles / Process/Task Headcount
12/17/13
Schedule for Incremented Ops Roles / Process/Task Headcount

21
Resource Model at a Glance

Process
Grouping
ITIL V3
Processes
Key Baseline
Metrics
Industry
Benchmark
Metrics
ITIL Roles
Headcount
Forecast
Demand
Forecast
12/17/13

22
Agenda
Major Assumptions
Value Proposition
Design Approach
Mapping
Next Steps
12/17/13

23
The Target Model as a Business Planning Tool
Roles (ITIL V3)
Processes (ITIL V3)
Skills (SFIA)
KPIs / Metrics (Role Based / Processes Based)
12/17/13
Baseline and improvement
Allows us to dial up and down to see ROI

24
Anticipated Trends Forecast (sample)

Infrastructure
Capacity, Efficiency,
Scale and Ability
Cope with Change
BAU Headcounts
BAU + Incremental
Initiative Headcounts
Aurora Planning Timeline
12/17/13

25
Key Planning Metrics

Low Hanging Fruit?
Key Operations Metrics
Key Support Metrics
Mean Time to Repair (time required to

diagnose and resolve problems)
Ratio of L1 to L2 to L3 support staff
First call resolution rate
Incident to Change Ratio
Percentage of escalations to L2 and L3 support
% of Incidents Reported by End Users
Time to plan a change
% of Outages Traced to Mis-configurations
Time to approve a change
% of Changes Completed within change

Windows
Backlog of changes
% of Changes Automated versus Manual
# of change collisions
Device to Admin Ratio
% of changes rolled back
Service roll-out cycle time (MTTD - mean time

to deploy)
# of calls resolved via self-service requests

(call avoidance)
Changes per Admin
MTBF for business availability
$ Unit per Device Managed
Ratio of planned to unplanned changes
Time and cost to Audit and Remediate (Audit

cycle time)
Average cost per incident
Average cost per type of service request
% of incidents closed by L1 support
# of Incidents
Ratio of L1 to L2 to L3 incidents
Time and cost to Grant and Revoke

Administrative Access
Downtime traced to compliance violations
% of configuration audits passed
$ Operation per Device Managed

12/17/13
26

Start the dialog
Guide POV / POC activities
Tied to KPIs / Metrics can help determine direct
value opportunity
12/17/13

27
Agenda
Major Assumptions
Value Proposition
Design Approach
Mapping
Next Steps
12/17/13

28
1. New Service Request/Service Provisioning
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2. New Service Request Development Environment
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3. New Service Request Development Application
12/17/13

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4. Application Promotion
12/17/13

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5. Closed Loop Compliance
12/17/13

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6. Proactive Incident Management
12/17/13

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Agenda
Major Assumptions
Value Proposition
Design Approach
Mapping
Next Steps
12/17/13

35
Call to action
Gather data to complete Resource Model spreadsheet
Cross-org. process innovation workshop
Gain consensus and buy-in on high priority operational process

improvement targets, KPIs, phasing, etc.
Organization skills assessment, remediation

recommendations
Interface mapping across upstream and downstream
systems (dependency mapping between SM, CRM, MIS,
etc.)
Implement operational flows in POV using defined
alternatives
Gain understanding of E2E optimization choices, e.g.,
replacement vs. migration
12/17/13

36
Operating Model Focus Group Plan Milestones

Day One Operations
Transition Readiness
Phase One - Strategic
Target Operating Model
Design
Phase 2 - Skills Assessment
and Remediation Plan
12/17/13

37
High Level Roadmap

Q4
Day One
Phase 1
Phase 2
12/17/13
Q1
Q2
Q3
Q4
Q1
Q2
Day One Operations Transition Readiness

Dedicated Resources Assigned (see Resource Model)
Stakeholder Process
Transition Team and Infrastructure in place
Governance Process
Business-line Application Team Engagement
Complete Resource Model
Strategic Target OM Design
Identify Process Owners
Develop Approach
Gain consensus on priority
Develop and roadmap
Sync with program priorities
Skills Assessment & Remediation Plan

Identify Functions / Skills Roles
Develop Approach
Gain consensus on approach
Execute assessment, identify gaps, develop remediation plan
Align plan to roadmap

38
Day 1 Operations Transition Readiness

Q4
Day 1
Q1
Q2
Q3
Q4
Q1
Q2
Day One Operational Transition Readiness

Qualified, Dedicated Resources Assigned (see Resource Required)
Stakeholder Process
Transition Team and Infrastructure in place
Governance Process
SBU Application Team Engagement
Complete Resource Model - deliver to WG5
Deliverables
Operations transition team in place, transition processes documented and ready to support Day One
operations and activities
Stakeholder process
Resource Model Delivered
Governance Process
o Major dependencies Dedicated resources and infrastructure (see Day One Resource
requirements), Stakeholder engagement, commitment by management to Governance Process
Dependencies
Existence of quality metric data
Availability of Transition Team resources
12/17/13

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Phase 1 Strategic Target Operating Model Design

Q4
Phase 2
Q1
Q2
Q3
Q4
Q1
Q2
Strategic Target OM Design

Identify Process Owners
Develop Approach
Gain consensus on priority
Develop and roadmap
Sync with Aurora priorities
Deliverables
Process Owners identified and committed engagement with WG4
Process Models / Roadmap delivered
Prioritization Model / Approach / KPIs delivered

requirements), Process Owner participation (from Technical Operations), dedicated process
design resources (see Day One Resource requirements)
Dependencies
Availability of dedicated resources (Budget)
Availability and commitment of Process Owners
12/17/13

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Phase 2 Skills Assessment and Remediation Plan

Q4 2009
Phase 2
Q1 2010
Q2 2010
Q3 2009
Q4 2010
Q1 2011
Q2 2011
Skills Assessment & Remediation Plan

Identify Functions / Skills Roles
Develop Approach
Gain consensus on approach
Execute assessment, identify gaps, develop remediation plan
Align plan to roadmap
Deliverables
Skills Assessment Framework
Function / skills / role profiles
Gap / remediation plan (e.g., Training / HR Plan)

requirements), Process Owner participation, dedicated HR / training resources
Dependencies (items still to be resolved if any, and who might be the person / group to ask)
Assessment framework (Budget)
Availability of Process Owners
Dedicated HR / Training planners (Budget)
Training Resources (Budget)
12/17/13

41

Enterprise Cloud Model Design

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Enterprise

Service Oering Descrip1on

Copyright 2010-2011 Joseph Schwartz

Copyright 2010-2011 Joseph Schwartz

Copyright 2010-2011 Joseph Schwartz

The scope of managed services addressed by the model should be flexible

Best practice approaches should be leveraged wherever possible to deliver a

Copyright 2010-2011 Joseph Schwartz

Copyright 2010-2011 Joseph Schwartz

Operating Model Scope

People & Organization

Copyright 2010-2011 Joseph Schwartz

Copyright 2010-2011 Joseph Schwartz

Assumed Operating Model Savings Targets Value Metric

Average cost per type of

Average cost per

Time and cost to audit

Change (all) to Admin

Reduction in the number

Copyright 2010-2011 Joseph Schwartz

Assumed Operating Model Savings Targets Value Metric

Time and cost to audit

Time and cost to audit

Copyright 2010-2011 Joseph Schwartz

Assumed Operating Model Savings Targets Value Metric

% of IT Projects that Align

Copyright 2010-2011 Joseph Schwartz

Copyright 2010-2011 Joseph Schwartz

Design Approach: Blending Industry Best

End-to-end operating processes

Copyright 2010-2011 Joseph Schwartz

Copyright 2010-2011 Joseph Schwartz

High Level-Process Model

Operations and Support

Service Development & Management

Resource Development & Management

Service Configuration & Activation

Supplier Development & Management

Service Quality Management

Copyright 2010-2011 Joseph Schwartz

Operating Model E2E Processes

Strategy and Service: Enabling processes of Business

Operations and Support: Lights on, or core operations

Copyright 2010-2011 Joseph Schwartz

Operations and Support

Copyright 2010-2011 Joseph Schwartz

Business Strategy, Architecture & Planning

Strategy & Service covers the

Service Lifecycle Management covers

The vertical functional groupings in

Copyright 2010-2011 Joseph Schwartz

Level 0 Operations & Support Processes

Copyright 2010-2011 Joseph Schwartz

Pre-program Device Count

Day 1 Device Count

Device Retirement Schedule

New Device Deployments schedule

Schedule for Incremented Ops Roles / Process/Task Headcount

Copyright 2010-2011 Joseph Schwartz

Resource Model at a Glance

Copyright 2010-2011 Joseph Schwartz

Copyright 2010-2011 Joseph Schwartz

The Target Model as a Business Planning Tool

Roles (ITIL V3)