SESSION 709 Friday, November 4, 9:00 AM - 10:00 AM

Track: The Strategist

SIAM: Tricks and Tips for Multivendor Integration

David Clifford Principal Consultant,Pace Harmon dclifford@paceharmon.com

Session Description

As companies move away from large cumbersome managed service provision contracts towards a best-in-breed model for service towers, a greater emphasis on governance, integration and data/information aggregation is required.Service integration and management (SIAM), also known as multi-sourcing integration (MSI) can help and is a hot topic in our industry. It brings together many familiar concepts and packages them within an overall IT governance model. The approach is aimed at ensuring alignment and integration across multiple technology towers. This session will explore the considerations to take into account when selecting an appropriate SIAM model, illustrate how existing and emerging standards and frameworks can assist you, and advise you about the pitfalls to avoid. (Experience Level: Intermediate)

Speaker Background A former president of itSMF International’s priSM, a multiple published author, a regular conference speaker and a member of a number of ISO-related standards committees (20000, 30105 and 38500), David Clifford is well known in the ITSM industry both domestically and internationally. David is a Director atPace Harmonwith offices in Washington DC, San Francisco and Chicago. Pace Harmon provides consulting and advisory services to Fortune 500 and select middle market companies in support of their most critical;sourcing, technology sourcing,and transformation programs.David has worked in the multi-sourcing integration (MSI)/ service integration and management (SIAM) arena since 2003. He will bring practical experience to the session to allow you to take away actionable points.

Session 709: SIAM – Tricks and Tips for Multi Sourcing Integration

David Clifford, Pace Harmon

twitter: @paceharmon facebook.com/paceharmon

Profile

• A former president of itSMF International’s priSM, a multiple published author, a regular conference speaker and a member of a number of ISO-related standards committees (20000, 30105 and 38500), David Clifford is well known in the ITSM industry both domestically and internationally

• David is a Director at Pace Harmon with offices in Washington DC, San Francisco and Chicago. Pace Harmon provides consulting and advisory services to Fortune 500 and select middle market companies in the fields of:• IT Outsourcing including ADM

• Business Process Outsourcing

• Transformation Program Advisory/Management (business and IT)

What is SIAM / MSI?

“Service Integration and Management (SIAM)”“Multi-Sourcing Integration (MSI)”

An operating model focused on aligning disparate functions and service providers to achieve overall agreed customer objectives in a seamless fashion

Existing framework (ITIL®, COBIT®…) and standards (ISO 9000, ISO/IEC 20000…)investment can support a SIAM/MSI operating model

Sample towers & business processes typically considered for multi-sourcing• IT Outsourcing (ITO) including Application

Development & Maintenance (ADM)• Service Desk Services• End-User Services• Managed Print Services• Distributed Network Services• Unified Communication (Collaboration) Services • ADM…

• Business Process Outsourcing (BPO)• Finance• Health care• Human resource management• Logistics…

Service Integration operating model

Service integration places an emphasis on seamless interaction within the supply chain, depicted by the line between tower service providers, the service integrator and in to the retained IT organization

Traditional Managed Service Provider model

IT organizations have previously outsourced their tower service provision to a single managed service provider (MSP) or, sole-sourced in other words. The MSP would largely focus on internal Tower Service Provision (TSP) support, e.g. Service Desk and Collaboration

Why is multi-sourcing becoming more in focus?

• Due to a “best-in-class” sourcing strategy being used, initiated by customer demand for agility, innovation and enhanced service provision

• Quite often this approach will include; cloud based virtualized computing resource solutions known as “Infrastructure-as-a-Service” and application solutions known as “Software-as-a-Service”

• IT organizations are realising that they need a way of integrating and aggregating service provision and performance in order to maintain their commitments to their customers

Service IntegratorRole

What is the role of the service integrator?

To ensure that the services are aligned with the overall expectations of the customer and that all of the contracted parties work together, a service integrator, fulfilling service integration activities, is required

Role of the service integrator continued…

• Communicate and manage alignment to customer organization policies and standards

• Conduct tower service provider process audit and quality assurance reviews for

adherence to contractual obligations

• Measure and monitor process performance (effectiveness) regularly

• Manage end-to-end service level management performance retaining overall

accountability

• Manage cross-tower corrective actions, continual service improvement and innovation

activities

• Manage cross-tower incidents and root cause analysis activities, especially major

incident management

• Manage cross-tower change and release management

Cross-Vendor Procedures (CVPs) integration

• Establishing a process to address multiple tower disputes

• Promoting a philosophy of “fix first, address later” for issues

• Establishing a method to hold a tower service provider accountable for the confirmed service failure caused by another tower. This may be similar to a service credit regime

• Circumventing disputes regarding confidential information by including governance procedures

• Imposing common IT standards

• Imposing common touch-points for service integration

Cross-Vendor Procedures (CVPs) aggregation

• In addition to integration, the service integrator is typically accountable for aggregating service data across all tower service providers, be they external, internal or a hybrid. Tower data that is normally considered for aggregation is as follows:• Configuration Management

• Incident Management

• Service Performance

• Change and Release Management

Service Integrator Operating ModelTypes

SIAM Internal Service Integration (ISI)

Key Benefits• The service integrator will have an intimate knowledge of

the customer organization helping it to understand the needs and reflect those in service provision

• No complex contractual structure with an external integrator

Key Challenges• Quality outcomes depend on a high degree of process

and tool maturity across a wide array of ITSM processes• Costs of retaining the skillset needs are typically higher

than external models

SIAM External Service Integration (ESI)

Key Benefits• Enables the retained IT organization to focus upon

strategic direction and IT governance, enabling them to focus on outcomes compared to day-to-day tactical and operational management

• The service integrator is separate from the tower service providers and therefore they can look at service provision with an independent perspective

Key Challenges• The service integrator does not have any direct

involvement in service provision of one or more towers. This model can therefore be less interesting commercially for the integrator unless they look to introduce a higher “integration fee” margin

• It is more difficult for the service integrator to understand the challenges of the tower service providers if they do not provide one or more towers themselves

SIAM External Tower Service Integration (ETSI)

Key Benefits• Ensures that the service integrator has empathy with

other tower service providers• Provides additional revenue opportunity for the service

integrator and is therefore more commercially interesting

Key Challenges• Unless the number of towers that the service integrator

provides is limited to a low number, the model will be nearer to the Managed Services Provider model and inherent challenges that was explored earlier

• The service integrator has the ability to manipulate performance data of service towers that it operates. This is why the most popular SIAM ETSI model is to source the service integration capability together with the service desk as these two disciplines cut across all of the service towers without providing a technical tower service

Retained IT OrganizationRole

Retaining strategic control

• A key tenet for customer organizations is to retain as a minimum strategic control and overall governance of IT service provision

• ISO/IEC 38500 “Governance of IT for the organization” and the series provides principles and implementation guidance for governance

• There are three key activities that the organization's governing body must perform when governing IT, namely:

1. Direct; defining strategy and policies for service provision

2. Evaluate; assessing proposals and plans from the service providers

3. Monitor; assessing service performance and conformance to documented expectations

Retaining strategic control continued…

• Capabilities should always be retained within the customer organization to support the governing body in performing its IT governance role and to ensure that the end-to-end service provision remains aligned to the needs of the business

• Retained IT governance mechanisms are quite often under invested in by the customer organization during the transition and service delivery lifecycle stages

• In a multi-sourcing IT operating model, it is imperative that the retained IT organization has a clearly defined mandate with appropriate resources to enable it to perform its function. The future state retained IT operating model can be implemented over a phased period of time focusing on priority process areas

Key processes aligned to “Direct” for retention consideration• Business Relationship Management

• Demand Management

• Enterprise Architecture

• Service Portfolio Management

• Financial Management (policy setting)

• Information Security Management

• Vendor/Supplier Management

Key processes aligned to “Evaluate” for retention consideration• Program and Portfolio Management

• Continual Service Improvement

Key processes aligned to “Monitor” for retention consideration• Service Performance Management

• Contract Management

• Financial Management (monitoring)

• Service Acceptance Mangement

Key processes for outsourcing consideration

• If outsourced, the service integrator performs many of the tactical and operational processes under delegated authority from the customer organization’s retained IT function

• However, the retained IT organization will still define policies, objectives, metrics and goals for these process areas while allowing the service integrator to perform the day-to-day management• Service Design (e.g. SCM, SLM, Availability…)

• Service Transition (e.g. SACM, Change, Service Validation…)

• Service Operation (e.g. Incident, Problem, Service Request…)

Challenges with Multi-SourcingIntroduction

Challenges with multi-sourcing

• One major issue faced by organizations that wish to move to a multi-sourced model is retro-fitting integration requirements into existing service contracts where they will form a part of the future operating model

• There are normally three methods that can be used to address this issue:1. Apply a contract change

2. Wait until the contract is ready for renewal or other towers are due for renewal to assist with leverage

3. Include the integration requirements when transitioning out

Further challenges with multi-sourcing…

• Protecting Intellectual Property Rights (IPR) and other sensitive data

• Addressing service gaps and overlaps

• Ensuring accountability and ownership

• Maturing the retained IT organization in the sourcing space

• Addressing differing skillset needs within the retained IT organization

• Understanding the direct commitments made by customer organizations with “as-a-Service” providers

• Collating a holistic view of finances to better understand the actual costs of IT services

• ITSM tool integration

New pocket guide – an introduction to SIAM/MSI

“David has written an excellent pocket guide that provides deep insight into service integration and management. He clarifies the key concepts, explores various operating models and describes the key functions that are required - both operationally, as well as at a strategic level, to support of the proper governance of IT across the extended IT supply chain.

I am sure that this guide will assist business and IT professionals alike and would recommend it to all involved in crafting multiple-IT service provider strategies for their organisations.”

Foreword by Max BlecherChair : ISO/IEC JTC1/SC40 Study Group on the governance and service management of IT and IT-enabled business services provided by multiple service providers

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