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10-10-2007Author / Presentation title 1
Application Management ServicesPartnerFirst ModelTransparent service - professional IT process know-how David Hilton
03/12/2008David Hilton T-Systems 2
Who is T-Systems?A Member of the Deutsche Telekom Group
at home on the move at work
Deutsche Telekom is one of the largest technology companies in the world and operates 3 major T Brands.
Consumer (B2C) Business (B2B)
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What does T-Systems do?Information and Telecommunications Technology (ICT) Operations Management
Brief description
T-Systems ICT Operations Management delivers standardized ICT services at the local, regional and global levels via classic, standardized or dynamic service delivery methodologies.
T-Systems ICT Operations Management manages Enterprise ICT infrastructures by delivering the following services:
Managed Device Services
Network Services
Infrastructure Management Services
Application Management Services
03/12/2008David Hilton T-Systems 4
What does T-Systems do?End-to End ICT Services
03/12/2008David Hilton T-Systems 5
T-Systems Application Management Services
Brief descriptionAMS delivers standardized services at the local, regional and global levels via classic, standardized or dynamic service delivery methodologies. T-Systems Application Management Services (AMS) provides support via a global network of application management centers. We offer our customers cost transparency through our PartnerFirst methodology, helping them to continuously identify and drive cost reduction opportunities. The first company certified by SAP for our ability to offer consistent support globally, T-Systems offers Dynamic Services for SAP, Siebel, and Glovia Applications. In addition, our globally implemented ITIL framework enables us to deliver the same level of consistent services to our customers regardless of where they are located in the world.
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T-Systems Application Management ServicesPartnerFirst Methodology – An Innovative Relationship
Our PartnerFirst methodology enables us to identify desired state models for each client engagement. Our PartnerFirst mission is to identify ways to change the current environment while improving flexibility and transparency while delivering new capabilities as partners with our clients.
A PartnerFirst Relationship: A Collaborative Transparent Business Model Shared Governance Integrated Function Teams Global Leverage
Intended Outcomes: Reduce Redundant Roles: Cross Partner Flexibility Reduce Non Value Added Work: Cross Partner Savings and Productivity Gain Increase Responsiveness for our customers
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Application Management Services Transparent Resource Optimization
HR management
Vendor management
Cost management
High fixed costs
Variable costs (difficult to estimate)
Resource pooling
Strategic partners
Fixed service prices
Low fixed costs
Budgeted variable costs
Variable costs
Application Management Services with defined service levels
Bud
gete
dpr
ojec
t co
sts
Adjustments, enhancements, projects(upgrades, reengineering, migration)
Application support (maintenance and user support)
€
Fixed costs
AS Factory target situationSituation for customer
months1 2 3 4 5 6 7 8 9 10 11 12
ProjectsProjects
Adjustments and enhancementsUser
supportMaintenance
Lost time
Overcapacities
Under-capacity Lack of know-how
Cust
om
er
IT s
taff
Fixed costs
+– – +
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T-Systems PartnerFirst ApplicationService Level Rationalization And Standardization
Original
Budget
Defined
Services Asset Reductions
ServiceReductions
MiscellaneousCost Savings
New InitiativeIdentification
InitiativePlanning
Ap
pro
val
InitiativeLaunch
CloseDown
& Savings
Execute
Bu
dg
et /
Co
st
Current Year 1 Year 2 Year 3 Year 4
T-Systems Partner First Process
Partner First Projects
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T-Systems Application Management Services Flexible PartnerFirst Process
Joint Customer & T-Systems team Anyone can submit new initiatives Joint Steering Committee
Reviews / authorizes Self Funded Initiatives Funded Initiatives
Prioritizes Tracks progress and savings
New InitiativeIdentification
InitiativePlanning
Approval
InitiativeLaunch
CloseDown
& Savings
Execute
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Value Propositions for T-Systems AMS customers?
Transparent view of Cost Drivers produces reduced operational costs
Improved service levels delivers happier end users and customers
AMbition methodology for assessing and implementing the lowest cost application management services
Multiregional delivery centers result in low cost country delivery
ITIL delivery framework enables well integrated and coordinated IT services without any breaks, disconnects, or overlaps
Industry focus brings people who deliver solutions with industry specific benefits
Personalization of the Service Levels to provide the customer service at the lowest cost
Virtualization of the application licenses and support to insure that the customer only pays for what they use
Standardization of the applications and the service levels in order to provide the lowest possible costs
A more efficient delivery of enterprise AMS services.
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Reference: Tier One Automotive Supplier – Michigan BasedApplication Management Services
Solutions
Application Management Services of a SAP R/3 & APO system
Global/regional Application Management Support and enhancement of global SAP R/3 and APO
applications with approx. 4,000 users in Europe, Asia and America
Special features of solution: onsite & offshore approach with T-Systems Mexico, offering the customer a very attractive price/performance ratio
Immediate Cost Savings Implementation of PartnerFirst
Year 1 price reduction of Fixed Price Contract Year 2 additional savings identified and costs savings
shared with customer Year 1 & 2 Flexible Delivery and significant cost avoidance
Customer-specific dedicated application team familiar with the details of the business processes offers optimum quality
Clear Service Level Agreements (SLAs) Innovative price model, creating a common interest in optimization
Customer benefits
Customer
A $6 Billion Dollar Global Automotive Supplier, that manufactures parts for every segment of automotive production.
The customer needed a global service provider that could take over support for its SAP applications in order to support the implementation of a new, global template.
10-10-2007Author / Presentation title 12
Thank You. From Dave Hilton at T-Systems248.495.9970 or [email protected]?
