Service Integration and Management

Rachel Seaniger, UXC ConsultingSenior Consultant & National ITSM Practice Lead

March 2015

AGENDA

• MULTI SUPPLIER INTEGRATION (MSI)

• INTRODUCING SIAM

• IS SIAM DIFFERENT TO ITIL?

• TYPICAL SIAM CANDIDATE

• SIAM JOURNEY

• SIAM BENEFITS

• HOW TO GET STARTED

Multi Supplier Integration (MSI) is mainstream and growing…

Multi-Supplier Integration (MSI) has major benefits…

Allows internal IT to

focus on core

business

Reduced costs

through leveraging

supplier economies

of scale

Maximise capability

by having the right

sourcing at the right

time

Operational costs and risks

shared with suppliers

Organisations can

leverage “best-of-

breed” capability

Flexibility to scale up /

scale down where required

However, the MSI model has significant challenges

Strategic

Challenges

• Aligning strategic vendor behaviours to achieve required business outcomes

• Each tower is cost-effective, but overall value/ROI is unclear/poor

• Security of data and services across multiple providers is difficult to manage

• Conflicting cultures, operating models, SLA’s across providers

Tactical

Challenges

• Non-collaborative and/or silo-type behaviours

• One underperforming vendor becomes a “single point of failure”

• Boundary issues – responsibilities “falling through cracks” with handoff problems

• Lack of accountability for group behaviour

• Client does not cover approach to vendor integration in sourcing strategy or RFPs

Operational

Challenges

• Lack of visibility of end-to-end (E2E) performance

• Recurring problems along with incident ownership and buck-passing issues

• Each provider meets service levels but end users dissatisfied

• Client underinvests in having the right level of vendor management in place

Organisations are seeking a real solution…

• A multi-sourced solution that delivers a singular, consistent, and

highly usable customer experience

• Reduced costs of IT overheads for managing multiple suppliers

• A single source of the truth when working with multiple suppliers

• Flexible IT services which are in lockstep with business priorities

• Reduced exposure to risk and compliance issues

Introducing SIAM

“Service Integration and Management (SIAM) lets an organisation manage the service providers in a consistent and

efficient way”

It ensures that performance across a portfolio of multi-sourced services meets

business needs

Is SIAM different to ITIL?

• SIAM is an extension to ITIL

• It takes many of the concepts within ITIL (eg. Supplier

Management, Service Level Management, etc.) and

applied then to managing a multi-sourced environment

• Currently there is no best practice framework dedicated

to SIAM

• Via Google you can find lots of white papers

• Via Linked In you can see lots of discussions

Why SIAM?

Internal

Service

Provider

Internal

Service

Provider

External

Service

Provider

External

Service

Provider

External

Service

Provider

SIAM

Function

• A superb customer experience

• Seamless end-to-end management of multiple service providers

• A single version of the truth

• Supplier expertise applied to the right areas at the right time without ongoing cost/risk

The evolution of sourcing models

Client Supplier Client

Supplier

1

Supplier

2

Supplier

3

Supplier

1

Supplier

3

Prime

Supplier

Supplier

2Client

Supplier

1

Supplier

3

Supplier

2Client SI

Provider

Model 1 – Traditional Outsourcing(~2000)

Model 3 – Selective Best-of-Breed(~2005)

Model 2 – Selective Sourcing(~2003)

Model 4 – SIAM Services(~2014+)

SIAM Key Components

Business Unit Business Unit

Retained IT

Organisation

Internal Stakeholders

Application

Development

Application

Management

Distributed

Services

Network

Services

Enterprise

Systems

Service Integration

Service Towers

End to End

Performance

Monitoring

Vendor

ManagementRelationship

Coordination

Service

Delivery

Coordination

1st Tier

Service Desk

Service Integration ModelBUSINESS &

CUSTOMER VIEW

INTEGRATED IT SERVICE VIEW

BUSINESS SERVICES

SUPPLIER SERVICE COMPONENT VIEW

MANAGED SUPPLIER VIEW

INTEGRATED BUSINESS SERVICE

CATALOGUE

MANAGED SERVICE

COMPONENTS

SUPPLIER A

SERVICE CONFIGURATION

VIEW

SUPPLIER SERVICE LEVELS

IT ASSETS CONFIGURATION

ITEMS

SUPPLIER B

Value creation through integrated service

SIAM Options

•Control is maintained and the internal BU is an independent agent

• Internal BU is unlikely to have the internal skills to be effective long term

•Heavy investment required in internal skills and toolsets

Internal Multi Supplier Integration (MSI)

“Do It Yourself”

•Some administrative burdens are passed on

• Internal BU still manages day-to-day supplier relationships making cost savings difficult to achieve

•Provider has no real control and is unable to meet client and supplier needs

External MSI for Contract Management

•Provider has experience, methods and toolsets

•Provider can play off suppliers as they are not responsible for the customer experience

External MSI for Service Management

•Provider has experience, methods and toolsets and has “skin in the game”

•Provider has a one-stop shop for customer experience (Self-service & Service Desk)

• If badly managed, internal providers can feel a loss of overall control

Complete External MSI

Critical Success Factors for SIAM

Strong Governance• An agreed operating model within the organisation, SIAM provider, and service towers

• Each area clearly understands roles/responsibilities and escalation points

End User Experience

• A deeply embedded culture of customer care and focus

• The SIAM provider understands customer business priorities, challenges, and

opportunities

Business Transformation

(OCM)

• A strong emphasis is placed on Organisational Change Management during transition

• A continual pulse check is put in place to continually align to new ways of working

“One way, Same way”

Processes

• All IT staff, regardless of their location understand and follow one set of ITSM processes

• Process roles and responsibilities are clear, with escalation points within the SIAM

function

Consolidated and Integrated

Toolsets

• Where possible the organisation, SIAM provider, and Service towers use the same tools

• Any tool integrations are predicated on maintaining customer experience consistency

Governance

Strategic

Tactical

Operational

Governance Bodies Scope

ICT Strategic Committee

Executive Vendor Review

SIAM Strategy

Contract Review

Service Delivery Review

Measurement and

Compliance of Sourcing

Performance

Change and Release

Advisory Board

ITSM Forum

End to End Performance

Service Performance

IT Change Management

Evaluate, Direct, Monitor

Evaluate, Direct, Monitor

Evaluate, Direct, Monitor

Typical candidate for SIAM (profile)

• Medium / Large size organisations (100+ IT Staff)

• Mounting business pressure to provide rapid value

• Expectation to continue to grow multi-sourcing capability

• Challenges in delivering a consistent customer experience

• Concerned about keeping up with the pace of change

• Exploring bi-modal IT service delivery

• Uneasy about current Service Management capability/skills

• Moving from “build and operate” to “aggregate and deliver”

The SIAM Journey

PLAN

• Develop a SIAM strategy, building the business case and action

plan

• Scope (what’s in/what’s out)

• Service Definition (Service Portfolio)

• Who does what? (in-house or outsource)

• What does success look like and how are you going to measure it?

DO

• Go to market for SIAM Partner or setup your function

• Document/Agreements (OLAs/SLAs/Contracts)

• Negotiation with affected suppliers about changes required/new

contracts

• Project Implementation and Transition Planning

ACT

• Determine a continual service improvement plan

• Initiate business transformation activities

• Prioritise innovation activities that rapidly add business value

CHECK

• Monitor, measure, report, take remedial action

• Review SIAM model performance

• Review ongoing IT Service performance with the business

• Complete a new baseline maturity assessment

SIAM Benefits

• Sourcing Flexibility

• Decreased time to market, with increased business/IT alignment

• Breadth of capability offerings available but still well controlled

• Supplier competitiveness and lower switching costs drives down

costs

• Costs and risks are shared with integrator and suppliers

• Reduced recruitment and sourcing administrative burden

How to get started – 5 steps

1. Consider your business drivers and vision

• How will your organisation change over the next 5 years?• Where is technology provision misaligned from business vision/goals?

2. Understand your current state

• Undertake a SIAM Readiness Assessment• Build a roadmap for management of multiple suppliers

3. Talk to others and see what they’re doing

• Consult with industry partners and forums• Gain an understanding of customer success stories and challenges

4. Signal intention to current suppliers and involve them

• Engage management within suppliers and discuss benefits/challenges• Ask about their experience with Supplier Integration

5. Engage the business on customer experience

• Undertake stakeholder analysis – identify and engage business advocates• Consider development of a Customer Experience strategy

Thank You!

Rachel Seaniger

IT Senior Consultant & National ITSM Practice Lead

rachel.seaniger@uxcconsulting.com.au

0417 882 685