Operational efficiency in the public sector · Operational efficiency in the public sector 10 r ecommendations for cutting costs in 2011-2012. 2 Cisco Graphic 2 2010 Cisco and/or

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Operational efficiency in the public sector 10 recommendations for cutting costs in 2011-2012

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Cisco Graphic 2

© 2010 Cisco and/or its a�liates. All rights reserved.

Rod Halstead Managing Director Cisco UK Public Sector

In today’s economic climate, Public Sector organisations have to make fundamental business changes if they are to respond effectively to the gap between the demand for public services and the budget available to pay for them.

These changes must tackle each organisation’s core culture and business processes. Nowadays such a programme of profound change can only be achieved if it exploits information and communications technology (ICT) to the full.

At Cisco, we have made fundamental changes within our own business through the ‘One Cisco’ programme. One Cisco cut our annual operating costs by more than $1.5 billion in 2009 and continues to deliver significant ongoing savings. These have been achieved by focusing on a small number of technology-enabled projects that have radically changed how people work and how ICT is delivered within the company.

This paper was originally created in late 2009 to provide guidance to Public Sector organisations on how they might respond to HM Treasury’s Operational Efficiency Programme. The paper used examples where Cisco, our partners and our customers had implemented technology and created real, measurable savings.

The feedback we received was that this paper provided real value to our customers. Now we have produced a revised version, to update our recommendations and provide a selection of new case studies with compelling cost saving metrics.

We look forward to meeting with you to discuss the Cisco approach and the recommendations contained in this paper, and to working in partnership to achieve your efficiency targets.

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Contents

Executive summary

Adopting an architectural approach 05

10 recommendations for cutting costs 05

Which recommendations are right for you? 05

The workforce journey

What does Cisco mean by collaboration 06

Recommendation 1: Enable location-independent working 07

Recommendation 2: Unify workforce communications 07

Recommendation 3: Implement web-based collaboration 08

Recommendation 4: Exploit video 09

The workplace journey

The link between ICT and estates strategy 12

Recommendation 5: Design offices for location-independent working 13

Recommendation 6: Implement smart connected building management 14

Managing the use of energy and resources more efficiently 15

Recommendation 7: Introduce energy management 16

The journey to shared services ICT

The critical role of the ICT service delivery platform 17

Recommendation 8: Consolidate and virtualise data centres 18

Recommendation 9: Build and lifecycle-manage the borderless network 19

Recommendation 10: Migrate to virtual desktop 20

Next steps

Cost saving vs. ease of implementation matrix 22

Which recommendation is right for you? 22

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Executive summaryThe Coalition Government assumed power in May 2010. Its June Budget and November Comprehensive Spending Review detailed the full extent of cost savings that must be made by Public Sector organisations.

These organisations, when faced with the need for cost savings, have traditionally preferred to drive down the costs of existing business operations rather than introduce change. On this occasion the Government has signalled the need for unprecedented cultural and business process change requiring organisations to merge operations, share services and introduce ‘new ways of working’. Among the key services that must be shared are ICT infrastructure and ICT applications.

The traditional approach would have looked at ICT purely in terms of cost reduction, even though it accounts for just 3% of a typical Public Sector budget. However, in reality ICT is now a key business enabler capable of creating substantial savings across the whole budget.

A typical budget will include the costs of the workforce and the workplace, in addition to ICT. Workplace operational costs will include the costs of energy and resources. These are all areas where cultural and process change can generate real savings but as we demonstrate in this paper, these savings will be accelerated and maximised through the fullest use of ICT.

This paper advocates the development of clear strategies to explain how costs can be reduced in the two areas mentioned. Each strategy must analyse the current environment, explain where change is necessary, and show how ICT can help create shared services and new ways of working that drive down costs. The paper makes recommendations – set out in three ‘journeys’ – that describe how an organisation can go about reducing costs.

Impressive cost savings can be realised through the use of ICT, as these examples show:

• In the workforce – Nottingham University Hospitals NHS Trust achieved a return on investment (ROI) in 14 months on a unified communications and collaboration project that reduced patient journey times by up to 33% and saved 7 hours in productive time for doctors in the emergency department

• In the workplace – Modern office design for location-independent workers can reduce the space per worker by 50%

• In the management of energy and resources – London Borough of Hillingdon achieved an ROI in six months on an energy management project that will deliver £60,000 annual cost saving and 44 tonne annual carbon saving

• In shared services ICT – A ‘smart’ borderless network can save the potentially huge costs of network upgrade through the use of embedded ‘application acceleration’ technology

Executive summary

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Adopting an architectural approach On March 30th, 2011 the Cabinet Office published the new Government ICT Strategy. The strategy recommends an approach to efficiency and cost saving based on deployment of common ICT infrastructure and the use of ICT to enable and deliver change. The strategy cites mobile technologies, collaboration tools, and video and tele-conferencing as key to reducing cost.

At a local level, a Public Sector organisation’s ICT strategy is one of its most important business documents. It must explain the ICT provision necessary to deliver the organisation’s workforce, workplace and resources strategies and so realise the required cost savings. It must also explain how best to drive down the costs of that ICT provision.

An ideal strategy will take an architectural approach. This links ICT provision directly to business priorities, ensuring that ICT investments are able to deliver full business value. It also delivers ‘architectural blueprints’ to explain how an organisation can achieve incrementing performance and capability starting from the existing ICT installed base.

10 recommendations for cutting costs

Cisco recommends that organisations assess our three key architectures – Borderless Networks, Collaboration and Data Centre Virtualisation – for incorporation into local ICT strategies. Each of these architectures provides key components of a shared ICT services environment. The linkages shown in the diagram explain why they are central to the 10 recommendations in the paper.

The paper makes 10 specific recommendations where Cisco believes ICT can best help Public Sector organisations drive cultural and process change to improve operational efficiency and cut costs.

The recommendations are structured around three journeys; to create an efficient workforce, an efficient workplace and support shared services ICT.

Each recommendation is supported by examples showing where organisations – Cisco included – have leveraged ICT to create real, measurable cost savings. Whenever Cisco examples are used, they have been CIO-audited and the figures represent real costs and real gains.

Which recommendations are right for you?Please contact your Cisco account manager who would be happy to discuss the contents of this paper and which recommendations are right for you.

Or ask for an efficiency workshop, tailored to meet your specific needs, to help you scope your plan of action.

For more information contact: [email protected]

Cost Saving and Operational E ciency

Collaboration Architecture

Data Centre Virtualisation Architecture

Borderless Network Architecture

Workplace JourneyWorkforceJourney

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Executive summary

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The workforcejourneyExperience has shown that an organisation and its workforce can benefit greatly from implementing a workforce strategy that promotes doing work over being at work. The strategy should define a roadmap for an organisation and be based on three guiding principles:

• Creatingalocation-independentworkforce that can work effectively from any location

• Unifyingcommunicationsservicestoensure ease of contact and effective interaction between co-workers and with citizens, businesses and other users of government services

• Offeringvideoandcollaborationcapabilities so that location-independent workers can meet and share information without the need to travel

For the workforce strategy to be effective it must identify key stakeholder groups – for example office-based, home-based, day extender, mobile - and carefully analyse their business needs. For each stakeholder

group the strategy should define new collaborative workstyles, specify necessary cultural and process change, and identify the ICT necessary to make the changes.

Workstyles, however, should not be prescriptive. Cisco has learnt that workers are most effective when they have the flexibility to select work settings and employ collaborative ICT to best suit their personal preference. That said, location-independent workers must be accountable for their productivity levels, so management processes need to be incorporated into each workstyle.

What does Cisco mean by collaborationCollaboration is the process of bringing together workers and information so that common goals can be met quickly and efficiently.

Collaboration is about how we connect people to people, people with ideas and ideas to outcomes.

Collaboration relies on ubiquitous access to information using the reach and range of modern borderless networks – wired and wireless networking, remote access and home office solutions, mobile clients and security. It also relies on 3 essential applications:

• Unified Communications – Including voice, voicemail and instant messaging – which allow workers to communicate with the right person, at the right time, over the preferred medium

• Collaboration – Including voice and web conferencing, enterprise social networking and information sharing spaces – which allows workers to meet and share information in virtual communities

• Business video – Including high-definition desktop video, video conferencing and virtual-reality Cisco TelePresence conferencing – which provides workers with a rich, immersive communications experience


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Recommendation 1

Enable location- independent working

Location independence is the foundation of the modern, flexible Public Sector workforce and key to realising cost savings.

Cisco recommends that organisations provide networking infrastructure that supports and promotes location-independent working. We use the term ‘borderless’ for a network that provides the necessary reach and range without any compromise to the security of information. ‘Location independence’ however, has more than just one meaning.

It can mean the ability to select a preferred work setting within a building without any barriers to accessing information. To empower employees in this way, pervasive wireless networking is recommended for all offices.

It can also mean the ability to work from any office or outside location. We recommend that the reach and range of network infrastructure be extended using remote-access virtual private network (VPN) or virtual-office solutions. ‘Network Admission Control’ (NAC) should be introduced, and workers provided with mobile client software.

Location independence produces immediate reductions in the cost of travel and accommodation. Travel time is also cut, with a corresponding increase in productive time as well as indirect benefits such as improved work–life balance.

At the same time, location independence can also lead to real improvements in quality of service. For example, healthcare case workers on patient visits can enjoy secure access to whatever information and resources they may need.

Cisco is achieving new levels of efficiency and productivity by enabling its own employees, customers, partners and suppliers to work better together no matter where they are located.

Some of our largest investments in new tools and technologies include Cisco Virtual Office technology for home and location independent working; Unified Communications and Presence

to find the right people quickly and communicate with them effectively; and Cisco TelePresence and WebEx to increase productive time and reduce expenses.

The use of TelePresence, WebEx, and Unified Communications has drastically reduced the expense and time of travel and increased our responsiveness to customers. TelePresence has saved the

company $759 million over four years and the use of business video has removed the need for travel in 33% of meetings.

Additionally, our office redesign (to facilitate better communication while reducing real-estate) is projected to generate cost savings in excess of $1 billion when completed.

Case Study:

The modern, flexible Cisco workforce

Recommendation 2

Unify workforce communications

We recommend that organisations adopt a two-stage strategy to unify workforce communications.

The first stage is the convergence of voice and data services onto a single network. Convergence replaces traditional PBX-based telephony services with shared, network-based voice services that are available to workers at any location served by an organisation’s borderless network.

This first stage will deliver immediate ‘total-cost-of-ownership’ (TCO) savings on capital costs for equipment and on a range of operational costs including the provision of dedicated voice circuits, support and service management.

The second stage is to implement Unified Communications. Unified Communications is the first of the three applications, mentioned earlier, essential for delivering location independence to the modern, flexible workforce.

Unified Communications provides much greater capability than traditional PBX-based or converged voice services; for example presence, instant messaging, integration with key business applications and end-point flexibility. This increased functionality is essential for driving new workstyles, improving business processes and productivity, and offering better citizen support.

What is converged voice? What is unified communications?Converged voice is the term used for voice that is transported using the Internet Protocol (IP) and so can share common (converged) network infrastructure with other IT services.

Unified Communications is the term used for the suite of communications applications that allows workers to interact more effectively with one another, with citizens and with other users of Government services.

Unified Communications applications can also run over shared network infrastructure and offer enhanced functions such as:

•Presence–providinginformationon a worker’s availability and expertise so that calls can be routed with optimal efficiency

•SingleNumberReach(SNR)–enabling workers to be contacted anytime, anywhere, on any device

•Fixed–MobileConvergence–integrating private fixed and public mobile networks to reduce cost

•Integrationofvoiceintowebpagesand applications

Unified Communications provide excellent support to communications-enabled business processes (CEBPs) where the goal is to optimise such processes by reducing human communications latency.


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Case Study:

Nottingham University Hospitals NHS TrustCommunication and collaboration technology at the heart of hospital transformation

Notttingham University Hospitals Trust has put ICT at the heart of a programme to transform its emergency departments.

The Association of Chartered Certified Accountants (ACCA) carried out an independent assessment of the role of ICT in this programme. The full report can be found at:

http://www.accaglobal.com/documents/CCT.pdf

The report’s executive summary highlights key elements of the project and the main benefits:

In 2006 the emergency department (ED) of Nottingham University Hospitals NHS Trust – one of the largest and busiest such departments in Europe – was faced with the challenge of managing forecast patient growth of 5% per annum over the next five years. At this time the department was already operating at near maximum capacity.

An operational review was undertaken, and found that the sheer size of the department fostered severe communication problems. These problems were delaying patient care and putting the Trust at risk of breaching Government access targets for treating emergency patients.

The solution, proposed and developed by Cisco in association with its delivery partners, was a medical grade network providing both wired and wireless

(Wi-fi) network foundation and architectures. This would enable all communication, including advanced clinical applications and biomedical devices, to operate in a protected, interactive, resilient and responsive environment.

Utilising telephony services provided by fixed and portable handsets, the new system enables staff to instantly contact any other member of the ED team – wherever they are located within the department and beyond. At the same time, governance is added to person-person process steps.

These changes have fostered a more collaborative working environment, with all staff working together to ensure the new system’s success. They have also resulted in an increase in patient satisfaction due to shorter waiting times and improved comfort levels.

Despite the fact that, at the time of writing, the new collaboration technology has only just been introduced, significant improvements are already evident. These include:

•Areductioninthepatientjourneytimeof 23% for adult patients and 33% for paediatric patients

•Anincreaseinproductivityofdoctorstreating minor injury patients equating to a potential time saving of over seven hours per day or one doctor per year

•Costcontainmentthatwillallowafull return on investment in the new technology to be realised in just 14 months

Recommendation 3

Implement web-based collaboration

We recommend the deployment of web-based collaboration tools. Web collaboration is the second of three applications, mentioned earlier, essential for delivering location independence to the modern, flexible workforce. It supports key functions including:

• Virtual meetings between co-workers or with citizens – which reduce costs and increase productivity through virtual information sharing, through desktop sharing and by using joint authoring capabilities to speed up report and briefing preparation

•Virtual training – which avoids the substantial costs associated with routine training (for example, inductions) and continuous professional development

•Collaborative workspaces – which create secure, shared workspaces for inter-departmental or cross-agency information sharing and offer knowledge management, interactive discussion forums and access to expert resources

At Cisco, we rely heavily on WebEx web collaboration as part of our One Cisco programme. WebEx is a software-as-a-service (SaaS) application that requires no upfront capital spend and no new hardware or software, only a web browser. Organisations are able to deploy WebEx within 10 days and have achieved extremely fast ROI as there is no capital cost.


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Recommendation 4

Exploit video

Did you know that the human voice provides just 10% of information exchange, while video provides the remaining 90%?

Cisco believes that ‘Video is the new Voice’. Video can dramatically enrich all forms of business communication, and act as a very powerful facilitator for successful virtual meetings.

This is especially important for senior managers for whom quality, transparency and understanding of every nuance of communication is essential.

As a result, video is the third of three applications mentioned earlier, essential for delivering location independence to the modern, flexible workforce. We recommend that it be exploited in all its forms in order to drive new workstyles and support new work settings:

•Desktop systems to support video-enabled, desk-to-desk IP telephony

•Room-based video systems to provide meeting-to-meeting video conferencing and communications

•TelePresence systems to enable virtual-reality conferencing

Uses web meeting applications to maximise resources and reduce carbon emissions

Cisco WebEx technology helps Buckinghamshire New University maximise its resources. Students still get face-to-face time with teachers during seminars, but are able to attend online lectures at their convenience. Meanwhile, academics can dedicate more time to guiding students in small group environments.

“We’ve found that using interactive, online delivery really improves the learning experience for students,” says Steve Hoole, developer of the system. “The online environment presents fewer distractions and lends itself to a more streamlined presentation of content. Both students and faculty have greater flexibility without compromising the quality of the University’s educational offerings. We’ve had very positive feedback from both sides.”

Recorded lectures serve as excellent revision aids, because students can repeat relevant sections again and again to maximise learning. From the lecturer’s perspective, the new system encourages teachers to offer lectures in manageable chunks, knowing that students may struggle to concentrate on a computer screen for long periods of time. Teachers can also annotate students’ essays online and provide detailed commentary more efficiently than before.

By using WebEx applications to hold internal meetings between campuses, Buckinghamshire New University can reduce its carbon footprint. “We have a green travel plan in place to encourage staff and students to consider the environmental implications of their travel,” says Hoole. “WebEx fits nicely into our green initiative, because it gives everyone the ability to work from home without missing out on vital meetings.”

The University’s staff continues to find new and innovative ways to deploy WebEx technology. For instance, the admissions committee even allows prospective students to be interviewed online rather than in person. “Students often have to travel a long way for their university interviews, and sometimes that isn’t very practical,” says Hoole. “For example, we have the opportunity to interview students via WebEx, saving them significant time and money.”

The University is committed to a positive student experience, and the adoption of innovative technology like WebEx will enhance teaching and learning. “We are always striving to find ways to improve the learning experience,” says Derek Godfrey, deputy vice chancellor at Buckinghamshire New University. “We’re always looking for innovative ways to give our students the best education possible.”

Case Study:

Buckinghamshire New University

Business video is also playing an increasingly important role in delivering ‘face-to-face’ public services where they cannot easily be provided in the traditional way, or where using video offers cost or efficiency benefits. In the future we believe video will have an even greater role to play – for example by delivering ‘face to face’ legal or healthcare services into prisons.

Some examples where there has been innovative use of business video for face-to-face service delivery include:

•Remote healthcare booths (or triage centres) using Cisco HealthPresence video technology, provided by the Scottish Centre for TeleHealth in outlying areas of Scotland

•The SignVideo Contact Centre for the Deaf uses video access to remote sign language interpreters in the Significan’t (Sign-If-I-Can’t) contact centre

There are also many outstanding examples within the NHS where the exploitation of video has genuinely transformed service delivery, reduced costs and improved patient services.


Video for ‘face-to-face’ public services

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Case Study:

TelePresence at Cisco SystemsIn recent years Cisco has made a major investment in business video solutions to support new workstyles and new work settings. This has included desktop cameras to provide IP video telephony, room based systems for meetings, plus the deployment of 980 TelePresence (TP) rooms in 240 major cities across 59 countries globally. These measures, along with other cost reduction initiatives, saved Cisco $1.5 billion in the fiscal year ending July 2009.

The TelePresence project was entirely funded by the reduction in Cisco’s travel budget. It did not rely on funding from the ICT budget.

Travel avoidance and productivity have been the key benefits. 33% of meetings avoided travel and it is estimated that $759 million travel costs have been saved - based on estimates of 4 participants per meeting.

Sir Philip Green on Video Conferencing

The use of video conferencing was highlighted in Sir Philip Green’s Efficiency Review, October 2010, as a key factor in travel management.

The review found that halving the number of room nights by mandating video conferencing and other solutions could save the Government £50 million (estimating travel and accommodation at £250 per person per night).

Business video systems represent Cisco’s single largest ICT investment in recent years. Comprehensive data on the efficiency and cost savings benefits has been gathered and analysed; those associated with the investment in TelePresence video technology are particularly impressive.


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The Trust serves a community of approximately half a million people from 6 sites employing around 6000 people. Operationally, their two main sites are 20 miles apart and the Trust makes large mileage payments to staff travelling from Doncaster to Bassetlaw.

“We have only two senior stroke consultants, serving ourselves and another four local Trusts,” says Andrew Clarke, IT Infrastructure Manager. “As a patient, if you suffer a stroke in South Yorkshire, your prognosis can depend upon the roster of the consultants.”

The Stroke Telemedicine Solution was deployed in phases. The bulk of the project was to introduce TelePresence into clinical environments. The lead stroke consultant housed the initial TelePresence unit in his primary clinical environment, while the second was housed in an emergency room.

“For the first time the stroke team was able to offer diagnosis from a remote location,” says Clarke.

The Trust already had an existing deployment of Cisco Unified Personal Communicator for desk-to-desk video. By adding a TelePresence Multi-Point Switch and a Cisco MCU they had the ability to conference from desktops into the TelePresence.

Consultants can now conference in from their laptops – not only whilst on the clinical wards utilising the Trust’s Cisco wireless infrastructure but also from home utilising a VPN connection.

Case Study:

Doncaster & Bassetlaw Hospitals NHS Foundation Trust


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The workplace journeyThe link between ICT and estates strategy

It’s no secret that Public Sector organisations have the very largest estates of buildings in the country. The cost of those buildings, and of managing them, is very significant; Government property is estimated to cost £25 billion per annum.

Cisco recommends that every Public Sector organisation should have an estates (or property, or accommodation) strategy. The strategy should describe the steps an organisation should take to:

•Optimisethenumberandlocation of buildings

•Designbuildingstomeettheneedsof a location-independent workforce

•Minimiseoperatingand maintenance costs

•Reduceenergycostsandassociatedcarbon footprint

The role of the estates strategy is to ensure timely delivery of the potential cost savings afforded by a workforce no longer dependent on the facilities at any physical location.

The strategy should specify the number, location and design of offices that will be required to meet changing business requirements. It should draw extensively on technology to support innovative new designs and to drive down operational costs through centralisation and automation.

The estates strategy should link directly into the workforce strategy, making the two mutually supportive. It should also form an important element of any green, or carbon reduction strategy.

Sir Philip Green on PropertyProperty was one of the focus areas for Sir Philip Green’s Efficiency Review in October 2010.

The review made a number of key findings regarding how Government uses and manages its estate.

‘The Government is the largest tenant / owner in the country, yet the use and management of space is wholly inefficient’

‘A Property Strategy must be written and implemented’

‘All properties in the estate must be benchmarked so that they can be proactively managed’.


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Recommendation 5

Design offices for location-independent working

Location-independent workers should have access to information, applications and services on an ‘anytime-anywhere’ basis. No longer dependent on the traditional facilities of any physical building, they should be able to adapt workstyles to suit personal preferences.

Cisco carried out an extensive pilot programme in San Jose to study building design and the effect of technology on the workforce. Work settings were provided with a wide range of technologies. Full wireless networking, mobile technology, IP telephony and docking stations supported individual work settings, while the more collaborative settings were supported by collaborative software, IP conference phones and video conference equipment.

The results were benchmarked - cable costs were reduced by 54%; ICT infrastructure costs by 55%; furniture costs by 55%; and the space required to accommodate workers was reduced by 50% compared to previous practice.

The findings of this programme were used to re-design our own offices worldwide; including our UK headquarters at Bedfont Lakes. We would be very pleased to show you how the physical design, facilities and ICT provision have been rationalised to efficiently accommodate location-independent workers and reduce costs.

Cisco’s work has parallels within the Public Sector. Some years ago the Office of Government Commerce published Working Without Walls on the subject of workplace design. This paper was updated in 2008 to become Working Beyond Walls.

Working Beyond Walls is an important Public Sector reference for the design of offices and the development of new workstyles. It cites innovative building design and the use of ICT tools as key facilitators, and offers a number of Public Sector case studies that explain the cost savings and efficiencies that have been measured.

We recommend the adoption of modern office design principles, supported by mobility and collaboration technology, to maximise the benefits that accrue from developing the location-independent workforce.

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We recommend implementation of a ‘Smart Connected Buildings’ approach to building and estate management.

Many Cisco customers have already adopted this approach, influenced by visits to our Security and Facilities Operations Centre (SFOC) at Bedfont Lakes. We would be delighted to welcome you too, and show you how we use the reach and range of Cisco’s borderless network to centralise security and building management for all Cisco offices in Europe.

The Smart Connected Buildings approach is important because it:

•Reducescapitalcostsfornewandrefurbished buildings through the use of shared infrastructure

•Reducesoperationalcoststhroughstreamlining reactive building monitoring and maintenance activities across an estate

•Reducesthecostsofenergyandresourcesbecause of the ability to pro-actively manage property in line with central policy

The extent to which this is possible, of course, depends upon the mix of new, refurbished and older buildings within an estate. For new and refurbished buildings the cost savings are immediate and can be very significant. While the approach is easy to implement, early engagement

with architects and engineers is essential to ensure the technology is incorporated in the design phase of a refurbishment or new build.

The University of Plymouth is using Cisco’s Smart Connected Building framework across its multiple campuses to bring teaching, communications and building services onto a single, multi-site network, saving the University money and enabling it to manage resources much more effectively.

Network and Telephony Manager Roger Snelling says, “The strategy was one of future proofing but also of protecting investment because we didn’t want to lose the large investment we made in things like CCTV cameras. The advantage of bringing everything together is being able to reduce the amount of management

and support costs compared to having five proprietary systems. It’s the ultimate flexibility of the solution that’s providing the University with many management improvements and cost savings. We’re starting to realise that benefit now, but as we deploy other services over the network those benefits will increase.”

A Smart Connected Building is an intelligent building. All building functions - from heating, ventilation and air conditioning (HVAC), to energy consumption, to closed circuit TV (CCTV), to access control - are monitored, controlled and supported over a robust, well-managed IP network.

This approach can be exploited in a number of ways, including by:

•Applyingstandardbuildingmanagementpolicies, for example around heating, ventilation and air conditioning (HVAC) and energy use, across the whole estate

•Centralisingaccesscontrolandsecurityservices and concentrating automated intelligence, archiving and analysis capability at one central control point

•Reducinglocalofficebuildingmaintenance and operations staff in line with the operating model

In Smart Connected Buildings all information is network-based and so accessible in a location-independent manner to the workforce. Estate operations need no longer be run locally or from any fixed physical location. This affords greater flexibility and can be of particular importance at a time of emergency when individual buildings or locations may be unavailable.

Case Study:

The University of Plymouth

Recommendation 6Implement smart connected building management

What is a smart connected building?


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Managing the use of energy and resources more efficiently

What is the ‘best’ way to manage the use of energy and natural resources?

A resources strategy can define the best approach for your organisation. This is particularly important at the present time because of both the steep rise in the cost of natural resources, and the Carbon Reduction Commitment (CRC) obligations – and potential penalties for non-compliance – set out in the Climate Change Act of 2008. Sector-specific initiatives and targets have emphasised the importance of this area.

The resources strategy should explain how to reduce the energy consumed directly by ICT infrastructure, and how that infrastructure can be used to manage overall energy consumption. It should also highlight the cultural and process changes that are needed to reduce the consumption of energy and resources by individual workers.

The strategy can draw upon existing guidance – for example, the Cabinet Office’s Greening Government ICT paper, which Cisco highly recommends.

The authors of Greening Government ICT suggest that organisations should – wherever possible – use power management technology to make more efficient use of energy and so reduce carbon footprints.

Cisco endorses this view and has made a significant investment in energy management technology. We call that technology Cisco EnergyWise.


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Case Study:

London Borough of Hillingdon

Using Cisco EnergyWise to control costs and cut emissions

Hillingdon has positioned itself strongly to implement new and innovative solutions over the last decade through its investment in a Cisco infrastructure. Based on our Borderless Network Architecture, the system has provided the resilient and flexible foundation that the Borough needed.

In 2002, Hillingdon introduced Cisco IP Telephony to cut operational costs and increase productivity. This also brought sustainability benefits by enabling home working — an option since taken up by around 900 employees. It was followed in 2006 by the launch of a data centre virtualisation project, using VMWare, which has now reached more than 50% of the server estate.

Cisco EnergyWise is the foundation for an evolving set of integrated energy-saving solutions, using the network as an enabler for cost and carbon reduction. It provides centralised network control of IP phones, wireless access points and any other PoE device. At Hillingdon, this part of the solution now extends to 3,000 IP phones, 50 Wireless Access Points, seven Cisco IP surveillance cameras, and 11 CCTV cameras. The Borough is currently installing Cisco Orchestrator to include PCs and laptops in the scope of its ICT energy monitoring and management.

“One advantage of EnergyWise is that it does not impose a rigid policy covering all endpoints,” notes Nick McCarthy, Network Communications Support Manager. “You can vary policy according to local business needs. If someone needs a camera switched on 24/7, say, they can have it; if they’ve got a business case that only needs a device switched on from 9-5pm, they can have that, too.”

Hillingdon calculates that Cisco EnergyWise has, to date, generated savings of £20,000 on its annual utilities bill, with a reduction in carbon emissions of 44 tonnes, and ROI achieved in six months. With Cisco Orchestrator, the cost saving is expected to treble to £60,000.

For Steve Palmer, Hillingdon’s CIO, the value of EnergyWise and Cisco’s integrated energy-saving roadmap is in the move from a technology focus to a strategic tool.

“So far,” he comments, “we’ve achieved some hard cash savings, which always grab attention. Going forward, I want to make sure we’ve applied the technology as broadly as we can in our own area. And then, once we’re comfortable with it, we want to use it as an enabler for sustainability benefits and cost savings across all our services and facilities.”

We recommend the exploitation of Cisco EnergyWise to monitor, measure and control the use of energy by network attached devices. EnergyWise exploits the reach and range of a modern borderless network to energy manage devices connected to, or associated with, the network. It is also able to manage disparate sets of systems that may be distributed across ICT, estates and facilities departments.

EnergyWise is part of Cisco’s Borderless Network architecture and defines how the power drawn by devices can be monitored and adjusted under central policy control. Today, EnergyWise supports devices, such as IP phones and wireless access points, which draw power directly from the network switches using Power over Ethernet (PoE).

It also integrates into building management systems to support a holistic approach to energy management. In the very near future, the power available via PoE will increase substantially allowing a far greater range of devices to be managed directly by EnergyWise.

EnergyWise is supplied in the standard software of Cisco LAN switches and network management products. This guarantees minimal capital costs and genuine ease of implementation – the technology can be enabled quickly and the deployment cost is very low – and provides the opportunity for organisations to realise timely cost savings.

EnergyWise was initially deployed and benchmarked for research purposes by organisations such as Brunel University.

Nowadays we are seeing the technology enter mainstream deployment to deliver direct cost savings to Public Sector organisations.


Recommendation 7Introduce energy management

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Most Public Sector organisations focus their business planning in two key areas; business transformation (maintaining the financial and organisational health of the business) and service transformation (delivering improved public services at lower cost).

As ICT is now critical to both these areas, the local ICT strategy is one of the most important documents for an organisation. This strategy must identify the ICT needs of the business and explain how it can create cost savings in two separate, but linked, domains:

•WithintheICTdomain:hownewtechnology, deployed using a shared services approach, can reduce the delivery costs of ICT infrastructure, applications and services

• In the wider business domain: how new technology can maximise savings in the operational costs of the workforce, the workplace, and energy and resources

After the first version of this paper was published, there have been two Government ICT Strategies published; one by the Labour administration and the latest, in March 2011, by the Conservative – Liberal Democrat administration. The latest strategy explains how common ICT infrastructure and common ICT services would best meet

the key business requirements of the Public Sector – namely to reduce costs and to join-up the public services. Cisco refers to that common (or foundation) infrastructure as the ICT Service Delivery Platform. We believe the platform must be architected correctly if it is to provide the right features and performance to support business operations and service delivery.

The critical role of the ICT service delivery platform An effective ICT strategy must ensure that a business develops the right end-to-end foundation infrastructure – we refer to it as the Service Delivery Platform.

The Service Delivery Platform is business-critical. It must enable today’s cultural and process changes and have the flexibility to meet future needs. Organisations should see the creation of the Service Delivery Platform as a roadmap – with the implementation of the four essential pillars as the destination:

•Data centres – consolidated and virtualised shared service delivery points that house all applications, information databases and converged services

•The borderless network – for high performance delivery of applications, information and services from service delivery points to location-independent workers

•Virtual desktops – for lower cost access to applications and services and streamlined service management

•Information and service assurance – the protective wrap of security infrastructure that maintains information confidentiality, integrity and availability

We recommend an architectural approach to the development of the service delivery platform. Such an approach allows an overall ICT ‘architectural blueprint’ to be developed and agreed by stakeholders, then built incrementally as performance and functional requirements develop and budgets permit. This approach also enables the cost-effective re-use of existing systems as the building blocks for new services in what is referred to as service-oriented design.



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Case Study:

Cisco’s enterprise data centres

Cisco operates seven data centres totaling some 230,000 square feet and supporting over 66,000 staff plus partners and customers.

Cisco IT operations is an essential stakeholder for our One Cisco programme. In recent years it has been transformed from cost centre to value centre and delivers critical, cost-saving collaboration applications to the workforce.

Within our data centres we have moved to a ‘service-oriented’ approach, focussing on operational flexibility, to address the following key business issues:

•Utilisationofdatacentreresources–typically 10-25% utilisation for servers

•Requirementsforstorage-growingby,on average, 50% p.a.

•Risingenergycosts–typically50%oftotal costs

•Lackofphysicalspaceincongesteddata centres

A storage architecture project migrated single tier, often directly attached, storage to multi-tier, networked storage. This has brought about:

•Anincreaseinstorageutilisationfrom20% to 70%

•ATCOdecreasefrom0.21$/MBto0.01$/MB

•$100m+indirectcostavoidance

In addition a server virtualisation project has migrated one-per-application servers to modern Cisco Unified Computing platforms. This has brought about:

•AreductioninDCpowerconsumptionof 33%

•Areductioninserviceprovisioningtimefrom two hundred to just one hour

•$21mindirectcostavoidance

suggests, Unified Computing breaks down existing networking, computer and storage towers to allow more efficient support for shared services and to create ideal environments for cloud services.

Unified Computing offers direct cost savings:

•Capitalcostsavingsfromvirtualisedinfrastructure that will deliver higher utilisation and reduced power and cooling requirements

The Data Centre is the first pillar of the ICT Service Delivery Platform. We recommend a programme to consolidate data centres and virtualise data centre infrastructure. This approach will ensure agile, secure and cost-efficient shared service delivery points.

Cisco has a strategy, called Data Centre Business Advantage, to help our customers achieve these objectives. An essential feature of Data Centre Business Advantage is Unified Computing. As its name

•Operationalcostsavingsasexistingservice management towers are dismantled and data centres are managed holistically

•IncreasedICTstaffproductivity and business agility through ‘just-in-time’ provisioning

Cisco has used the Data Centre Business Advantage strategy within its own data centres across the US and Europe, and has recorded significant cost savings and efficiency gains.


Recommendation 8

Consolidate and virtualise data centres

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Recommendation 9Build and lifecycle-manage the borderless network

Case Study:

NHS Coventry One of the largest employers in the area, NHS Coventry employs 1,500 people serving 300,000 citizens

Patient data is centrally stored and delivered to GP practices across the city via a Wide Area Network (WAN).

With consultations often lasting little more than eight minutes, time is of the essence for NHS Coventry. Every time a GP sees a patient, makes a referral or adds a note to a file they must access this database. Waiting, even for 10 or 15 seconds, simply isn’t an option when faced with a concerned patient.

With its Wide Area Application Services (WAAS), Cisco was able to provide Local Area Network (LAN)-like performance across the WAN.

The results?

•Logintimereducedfrom25secondsdown to 2

•Passwordauthenticationreducedfrom20 seconds to 3

•Bandwidthspeedincreasedby50%

The Borderless Network is the second pillar of the ICT Service Delivery Platform, and is essential for creating ICT shared services environments and delivering their projected cost savings.

Borderless networks also underpin workforce and workplace cost savings by providing ‘anytime, anywhere’ connectivity for location-independent workers.

We recommend that organisations build a borderless network with the performance and capability required to deliver shared services applications to their location-independent workers.

The borderless network must be architected to support voice, video and data. Nowadays the Public Services Network (PSN) technical model provides a useful design blueprint. In addition Cisco has developed its own Borderless Network architecture that offers the following capabilities:

•Asinglenetworkofnetworks;seamlesslyintegrating WAN, wired and wireless LAN, and VPN technologies for ‘anytime-anywhere’ user connectivity

•Securityinfrastructure,embeddedatits heart, to control access, secure information and support information sharing

•‘Smarttechnologies’toenhancetheperformance of video and other user applications without the need for costly bandwidth increases

•Fullsupportformobilityservicesat the edge

As any network ages, inefficiencies accumulate and present themselves as increased cost of operations and increased risk of downtime. Did you know that, in a typical legacy network, 80% of ICT costs are associated with lifecycle operations and just 20% with acquisition?

We recommend a plan to lifecycle-manage borderless networks (and indeed all other components of the Service Delivery Platform). The first step may be a structured network review to highlight the true operational costs and make recommendations on where savings can be realised by eradicating duplicate, unused and out-of-date equipment.

To help customers do this, Cisco has created a new programme - called ‘Cisco Transformative Networking’ - that uses just such a structured review to inform better network planning and budgeting, to highlight operational cost savings and to recommend actions to minimise the likelihood of network failure.

This approach has helped a number of Cisco’s large Public Sector customers who have typically been able to find double-digit operational cost savings each year.

It is also important that organisations exploit the latest ‘smart’ technologies that maintain user ICT experience without the need to upgrade devices and links in the borderless network.


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Recommendation 10

Migrate to virtual desktop

A surprisingly large proportion of any ICT budget is taken up by the provision and support of PC desktops.

However, while desktop technology has evolved over the years, many desktops in the Public Sector still rely heavily on central service management support and offer only limited user customisation.

This can mean workers locked into inefficient legacy applications that can, in turn, genuinely affect productivity.

We recommend that organisations assess the suitability of virtual desktops for their business and, where appropriate, migrate to a virtual desktop environment.

The first step is to carry out a ‘desktop review’ to record the full capital and operational costs of desktop hardware, software licenses, software updates, service management and direct user ‘helpdesk’ support services.

Review data can be compared against cost projections for the adoption of virtual desktop technology. We believe this will highlight cost savings in the following areas:

•Longerend-userdevicelifecycles–reducing capital costs

•Fewersoftwarelicensesandmorecontrol over licensing – reducing capital costs

•Easiermanagementandupdateof applications – reducing service management costs

•Fewerhelpdeskandservicemanagement calls

Case Study:

VDI using Vblock infrastructure packagesVblock infrastructure packages deliver pre-integrated, validated data centre infrastructure that simplifies and accelerates time to production, significantly reducing costs.

By using a Vblock solution you can rapidly deploy resources using templates, reducing costs while helping ensure that internal policies for allocation are followed.

This approach was taken within a major global bank and has proven to deliver the following benefits:

•VirtualDesktopInfrastructure(VDI)provides the potential to reduce costs by $1,223 per desktop when deployed on legacy 4 processor rack servers and $1,527 per desktop when deployed on Cisco Unified Compute

•CiscoUnifiedComputereducesdatacentre components by: 56% when compared with legacy 4 processor rack servers; 69% compared with legacy 2 processor rack servers; and 54% compared with legacy 2 processor blade servers

•CiscoUnifiedComputearchitecturelowers power, cooling and space requirements, resulting in 11kW power savings and 5 racks worth of space savings compared with 4 processor rack servers


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Virtual desktop is the term used to describe a network-connected user device that communicates with a central, virtualised server for the execution of software applications. The user operates the screen, keyboard and mouse of the virtual desktop device in the normal way but the central server is responsible for executing the application.

Applications and data are always held securely within the central server, making the approach particularly suitable for secure environments.

The approach of using simple network-connected virtual desktop devices and very efficient, virtualised servers in the data centre greatly reduces capital and operational costs.

This approach is referred to as VDI (virtual desktop infrastructure or virtual desktop interface).

The virtual desktop approach also allows centralisation of control, management and software licensing, so maximising the value of any investment in data centre and unified computing capability.

What is virtual desktop?

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Next steps

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3

1

2

4 10

8

5

6

Infrastructure for locationindependent working

Unify workforce communications

Implement web-basedcollaboration

Exploit video

Design oces for locationindependent working

Implement smart connectedbuilding management

Introduce energy management

Consolidate data centres,virtualise data centre

infrastructure

Build and lifecycle-manage the borderless network

Migrate to virtual desktop

The diagram below plots each of the 10 recommendations to allow comparison based on ease of implementation and potential cost saving. Recommendations

that are easy to implement and have a high cost saving should be the first for business consideration. An easily implemented recommendation is often referred to as a

‘Quick Win’; important right now as Public Sector organisations have to focus on short term cost savings.

Of course every organisation will see the three journeys and the 10 recommendations differently depending on existing culture, current business processes and the maturity of their ICT.

Cisco appreciates this and would like to work with you to maximise the value of this paper.

Please contact your Cisco account manager who would be happy to discuss the contents of this paper and which recommendations are right for you.

Or ask for an efficiency workshop; tailored to meet your specific needs, and run at your convenience in an

informal manner to help you scope your plan of action.

For more information contact: [email protected]

Which recommendation is right for you?

Cost saving vs. ease of implementation matrix

Next steps

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Cisco Graphic 2


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Cisco Graphic 2


2011

Documents

Operational efficiency in the public sector · Operational efficiency in the public sector 10 r ecommendations for cutting costs in 2011-2012. 2 Cisco Graphic 2 2010 Cisco and/or