Lowering TCO: TXU’s Approach

TXU Confidential & Proprietary

TXU Business Services

Lowering TCO:TXU’s Approach

Higher Productivity at Lower Cost

TXU Business ServicesTXU Confidential & Proprietary

... result in a world-class, managed computer environment which benefits TXU by lowering costs, improving service, and increasing corporate agility.

Vision


TXU’s Approach

• KEY GOALS & DRIVERS:

• Prepare for Deregulation by…..

• Lowering Costs of Desktop Computing

• Improving Internal Service & Support

• Increasing Corporate Agility


STRATEGY:

Implement Best Practices to…..• StandardizeStandardize the Environment

• Improve Asset ManagementAsset Management

• Improve ProcurementProcurement Practices

• Enhance Support StrategiesSupport Strategies

• Increase End-User ProductivityEnd-User Productivity

• Leverage Electronic Software DistributionElectronic Software Distribution

• Implement Server MonitoringServer Monitoring

• Improve Client SatisfactionClient Satisfaction

TXU’s Approach


Reviewed practices of industry leaders….

Best Practices


Unmanaged Environment

Standard Hardware

Standard Software

Managed Environment

Distributed Systems Systems ManagementManagement

STEP 1

STEP 3

STEP 2

STEP 4

Established Roadmap


Standardize the Environment

Actions:

• Developed Business Unit Council to Set Standards

• Reviewed Software in Use in the Company

• Established Software Standards

• Developed Hardware Standards

• Managed Change and Frequency of Change to the Standards

• Implemented Desktop Software (Full Armor) Which Protects PC from Certain Configuration Changes

• Communicating the Standards throughout the Company

• Developing Corporate Standardization Policy


Examples:

• Reduced software images from 17 to 5

• Developing Business Unit Software loads

• Migrating to a single operating system - Windows 2000

• Encouraged use by developing robust standards

Benefits:

• Reduces complexity, reducing support costs

• Stable, known environment increases success rate of software distributions

• Configurations/settings can only be changed by authorized personnel - Reducing change, eliminating work

• Increases compatibility, productivity

Standardize the Environment


Improve Asset Management

Actions:

• Leverage EDI, e-Commerce for Billing and Reconciliation

• Provide End-Users View Access to Inventories

• Provide End-Users Update Capability for Certain Types of Changes (e.g. relocations and transfers)

• Shift Accountability for Maintenance of Records to End-User Organization (for certain types of changes)

• Install Automated Inventory Software on Desktops and Servers


Improve Asset Management

Benefits:

• Records More Accurate

• Reduced Cost of Maintenance

• Billings More Accurate

• Appropriate Accountability

• Automated Inventory Scans


Improve Procurement Practices

Actions:

• Leveraging a Single Vendor for PC’s

• Developing .Com Capability for End-Users to Order PC’s

• Developing Corporate Desktop Technology Procurement Policy

• Leveraging a Catalog of Standard Hardware/Software

• Applying an Asset Tag to Each PC as it is Manufactured


Improve Procurement Practices

Benefits:

• Costs of PC’s Dropped Immediately with Single Vendor

• Technicians Only Need to Be Certified on One Vendor, i.e. Better support and lower costs

• Improved delivery times yield higher productivity

• End-users order standard equipment 95% of the time reducing cost of consulting

• Limited hardware/software will enter the environment without support groups’ knowledge, thus improving support


Average PC Order-to-Delivery Time

Ticket Duration (avg. days)

41

19

0

10

20

30

40

50

Before After

# Days


PC Lease Replacement

Estimated vs. Actual

0

1000

2000

3000

4000

5000

6000

2000 2001

Business Case Estimate (entire year) Actual (thru 6/30/01)

5297

34764000 4000


PC Lease Replacement

Estimated $ Savings at $300/PC

0

0.5

1

1.5

2

2000 2001

$ (M

)

Business Case Estimate (entire year)Actual (thru 6/30/01)

1.2

1.6

1.21.0


PC Orders

Industry Best Practice = < 10%

TXU Actual = < 5%

Requiring Custom Configuration


Enhance Support StrategiesIncrease End-User Productivity

Actions:

• Increase Training of Help Desk (Support Center) Staff

• Develop Self-Help Capabilities for End-Users via Intranet and IVR

• Implement Remote Support Software (Timbuktu) on End-User Desktops and at Help Desk

• Implement Installation/Return Processes - Encouraging End-Users to Return Off-Lease Asset at Time of New Installation

• Discourage “Trickle Down” PC Re-deployments


Enhance Support StrategiesIncrease End-User Productivity

Benefits:

• Increased First Call resolution at the Help Desk – Lowers total cost and provides faster service

• Fewer incidents require on-site support

• Provide help when needed to employee

• Better use of expertise, resources

• Lower costs to business unit for continued lease cost or maintenance of obsolete equipment


Support Center Calls(monthly average)

0

2000

4000

6000

8000

10000

12000

14000

1st Qtr'00

2ndQtr '00

3rd Qtr'00

4th Qtr'00

1st Qtr'01

2ndQtr '01

Total Calls Answered Calls Problem Tickets (Desktop)


User Support RequirementsActual

User to Support Center Call Time (minutes)

01234567

Time on Phone

Before After

4.9

6.1


Problems Resolved at First Contact ( Tickets opened and assigned to IT Support Services)

0

10

20

30

40

50

60

70

Per

cent

age

57.7%


Problems Resolved Using Timbuktu

1169812

58206

270517

468521

481593

670

0 200 400 600 800

May '00

Jul '00

Sep '00

Nov '00

Jan '01

Mar '01

May '01


Ticket Duration for User Requests

37

21.7 20.2 20.7

27.1

19.3 21.116.5

9.25

05

10152025303540

After TCO Project (Avg. = 19 days)

Ave

rage

# D

ays


Tickets Requiring On-Site Support:% Dispatched

05

101520253035404550

Per

cent

age


Leverage Electronic Software Distribution

Actions:

• Installed Microsoft SMS on over 10,000 PC’s and NT servers

• Developed Intranet-based TXU Software Library - Enabling End-Users to Download, Tested/Certified, Standard Software to PC’s


Leverage Electronic Software Distribution

Benefits:

• Faster - Delivery of new tools to employees within minutes of need

• Cheaper - Upgrade of mass corporate software over a weekend instead of months to deploy - avoided between $1M - $2M in costs since implemented in December 2000

• Encourages use of standard, certified software

• “Scripted”, consistent, repeatable installation supports standards, lowers cost

• Unattended software distribution reduces user involvement


Software Deployment & Management Implementation

• User information is gathered from user input as well as extractions from existing, managed databases

• Scheduled, automated scans report inventory (hardware and software) on a regular basis

• Capability now exists to deploy software to a target base of users with or without their knowledge/interaction

• To-date 19 “scripted” application configurations reside in TSL database, available for distribution on demand, initiated by a simple “click of the mouse”


Software Distributed Via SMS(17 Applications, 3/1/01-6/30/01)

Success Rates

0

2,000

4,000

6,000

Acr

ob

at

Atl

as

MD

AC

NT

SP

5

AM

FM

ER

M

IE 5

.01-

AM

FM

Win

98

Targeted Received Installed


Software Distributed Via SMS(17 Applications, 3/1/01-6/30/01)

Success Rates - Percentage(Average 87%)

020406080

100A

cro

bat

DE

IS

NT

SP

5

SM

S

IE 5

.01-

AM

FM

Per

cen

tag

e

Installed

Received


Software Distributed On-demand Via Software Library

Software Library Dowloads for two-week period (June 18 - June 30, 2001)

114

7,410

0

2000

4000

6000

8000

Number ofDownloads

$ Savings @$65 ea


Implement Server Monitoring

Actions:

• Installed Tivoli Software on 850 Servers

• Implemented Monitoring Thresholds for Server Disk Space, Memory and other Critical Components

• Implemented an Enterprise Console for Monitoring of Alerts on Servers

• Integrated Console with other Monitored Systems, i.e.. Network

• Integrated Console Alerts with IT Work Management System to Create “Tickets” for Incidents and Page on Critical Alerts


Implement Server Monitoring

Benefits:

• Proactive, preventative maintenance reduces unplanned outages, increasing application availability, increasing corporate revenue and lowering maintenance costs

• Enables one technician to support more servers. Ratio has increased from 1:14 to 1:22, lowering total costs of expensive resources

• Incidents can be correlated between network, servers, etc.

• Complete records of incidents


Increase Client Satisfaction

Actions:

• Build Each Enhancement with Business Unit Council Partnership and Guidance

• Leverage Enhancements to Provide Better Service, Faster, at a Lower Cost and with Higher Availability

Benefits:

• Client Satisfaction actually increased during implementation of these changes


Gartner Measurement of IT Customer Satisfaction (January, 2001)

• General Criteria - Overall score increased 0.11

• Largest score increases• Impact on Your Work - +0.21• Support Expertise - +0.17• Product Functionality - +0.14• Cost - +0.14

• Specific Criteria - Overall score increased 0.17

• Largest score increases• Client Support - +0.23• New Applications Development - +0.23• Desktop Computer HW/SW - +0.22• Intra/Internet - +0.18

• No score decreases!No score decreases!

TXU Confidential & Proprietary

TXU Business Services

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End of Presentation


Current StateY2K Inventory

Word Processors 10 vendors 56 versions

Spreadsheets 8 vendors 46 versions

Databases 19 vendors 73 versions

Presentation 10 vendors 30 versions

Browsers 14 vendors 70 versions

CAD 7 vendors 26 versions

Comm Packages 11 vendors 22 versions

Over 7,537 versions of “recognizable” software found !


Current StateRoot Cause Statistics

Root CauseFor Month Ending October 31, 1999

464460

436

264

230223208

196184177

145

11297

83 7867 65

43 42 39 32 30 25 20 15 14 13 11 10 9 7 7 4 4 3 2 10

50

100

150

200

250

300

350

400

450

500

Nu

mb

er

of

TR

AC

's R

ep

ort

ed


Root Cause - 1999

4342 4287

3667

2522 24702187

0

1000

2000

3000

4000

5000

SoftwareInstallation

SoftwareProblem

HardwareInstallation

ConfigurationProblem

HardwareFailure

NetworkConnectivity

• Network Connectivity

• Equipment Pickup

• Printer Problem

• Configuration Request

• NAV

• Operating System

• Moves

• User Error

• Printer Installation

• Worm Virus

• Y2K

• UserID / Password

• Driver

• Lack of Training

• Hard Drive Space

• Virus

• Data Backup / Transfer

• Information Request

• Server

• Image Load Issue

• Upgrade

• Netcensus

• Mainframe

• Maintenance

• Monitor

• Memory

• Migration

• Loaner

Primary Root Causes Identified During 1999

Documents

Lowering TCO: TXU’s Approach