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OneIT
Stockholm, April 28th, 2015
Governance challenges and key elements
Topics
The starting point
Sourcing strategy
The governance challenge and
key elements
Some lessons learned
4/27/2015 2
3
From a mail distributor…
4
…to a Nordic mail and logistics group
5
Numerous acquisitions had established a heterogeneous IT platform and a diversity of sourcing models
Mother-company fully outsourced since 2001
Subsidiaries with different sourcing-models and little service-oriented sourcing
A “forest” of vendors
No common vendor management
Very different business challenges
Little or no utilization of offshore deliverables
27.04.2015 5
EKDAHLS
ÅKERI
AB
The new strategy should support an integrated company, significantly reduce cost and secure flexibility
High level of outsourcing
Service-oriented contracts
Partnership with a few large vendors (3 to 5)
High degree of offshore deliverables
High degree of usage based pricing
Reduced number of vendors and contracts
27.04.2015 6
The procurement process lead to the selection of four main vendors for the six different Service Towers
Service Desk
Service Integration
Workplace Services
Network & Communication Services
Infrastructure Services
Applications Services (AO, AM and AD)
• Business solution applications
• Support solution applications
4/27/2015 7
OneIT transition – scope metrics
Migration of 131 applications and 500 TB of data
from several data centers to one new data center
Transfer of ADAM-responsibility for 131 applications
to two new vendors
27.04.2015 8
Transfer of 12.500 users to a new Service Desk
Centralization of 67 PABX at 62 different locations
to one IP-based PABX, supporting 1100 fixed
telephony line users and several call-centers
Roll-out of a new network to 1732 locations
Upgrade of 7,500 workplaces
The new Sourcing model introduced some Governance Challenges
From one major vendor and many small
«independent» vendors
01/01/2013 9
From a distributed IT organization and a
diversity of managing business needs and
vendors
To a centralized IT organization and a
common model
To four major vendors (Tier 1) working fully
integrated and with a set of additional vendors
(Tier 2)
Governance model – Key elements
01/01/2013 10
Overall Governance Model
Customer
• Centralized• Decentralized
Tier 2Vendors
WP Vendor
IM Vendor
ADAMVendors
Serv
ice
Des
k /
Sing
le P
oint
ofC
onta
ct
Service Integrator
Inci
dent
& P
robl
em M
anag
emen
t Ce
ntre
Shar
edIT
man
agem
ent p
latf
orm
• Documentation• Meeting forums• Joint Service Catl• Reporting• COM
Common processes Meeting forums
Vendor governanceOrganization and roles
Shared IT Management
platform
Vendor Governance elements
27.04.2015 11
Overall Governance Model
Customer
• Centralized• Decentralized
Tier 2Vendors
WP Vendor
IM Vendor
ADAMVendors
Se
rvic
e D
esk
/ S
ing
le P
oin
t o
fC
on
tact
Service Integrator
Inci
de
nt
& P
rob
lem
Ma
na
ge
me
nt
Ce
ntr
e
Sh
are
dIT
ma
na
ge
me
nt
pla
tfo
rm
A Service Desk function with a Single Point of
Contact (SPoC) responsibility
A Shared IT management platform (mainly
in CoGoS), containing the Joint Service
Catalogue and reporting functions (such as
following up agreed SLA and KPI targets)
A co-located Incidents and Problem Centre
(IPC)
A Service Integrator role facilitating the IPC,
coordinating cross-vendor incident and
problem management (including Critical
Incident Management for both single and cross
vendor), cross vendor release and deployment
and responsible for consolidated vendor
reporting
In addition a set of Vendor Governance
Meetings for a structured way to follow up
the delivery
Defined vendor meeting structure
27.04.2015 12
Commercial elements to support the multi-vendor governance
End-to-end SLA measurement
Both single-vendor as well as common
reward/penalty regime
Potential risk for a reduced scope
27.04.2015 13
Lessons learned
Establishing a multivendor governance model
is not straight forward
Implementing a new governance model takes
time
Training, training, training
Loyalty to the model and flexibility to adjust
“The same boat” principle
4/27/2015 14
27/04/2015 15
Thank you for your attention!