SIAM: A practical approach

Andrea Kis

Introducing your speaker

SESSION 403 Thursday, November 3, 10:00 AM - 11:00 AM

Track: The Futurist

SIAM: A Practical Approach

Andrea Kis Senior Consultant,Information Services Group (ISG) Ltd andrea.kis@isg-one.com

Session Description

In the last couple of years, the way IT delivers their services went through a critical shift. It was an awakening to create and deliver business value, to offer end to end services and to save cost by optimizing the usual ways of working. The evolution of service management resulted in SIAM; service integration and management; which is a lot more than service management based on ITIL. In this session, learn more about the evolution of service management into the complex (yet standardized) approach of SIAM via real-life examples of practical implementation. (Experience Level: Intermediate)

Speaker Background Andrea Kis is an ITIL, PRINCE2, and Green IT-qualified service integration and management (SIAM) consultant with a strong practical background in and passion for service management and business relationship management. Andrea started her IT career in 2002, working in a multilingual IT help desk in Budapest, Hungary. She’s a practitioner of best practices with a chameleon-like skill for being able to adapt to and understand a wide variety of customers.

We often hear the following from our clients ….

Complexities of Today’s IT Environments

How should I be managing cloud based delivery models differently than traditional services?

Quote from Heraclitus

How do I stop finger pointing between my Service Providers?

How can I be more proactive with my business users versus in constant reaction mode?

How can my Service Provider SLAs be green, yet my business users are unhappy?

How do I keep controls in place as my environment becomes so diverse?

Is the size and cost of my operation comparable to the industry?

Am I achieving the value I expected from sourcing/insourcing?

IT departments are struggling to reposition themselves

Enterprise IT is getting the direct pressure – they are not fast enough, not agile enough, and miles away from digital

CEO

Can’t we get betterat creating RFPs for

projects? We reinventthe wheelevery time

IT is too slow! Weneed to be digital,

and have no time to lose!

Lets call Salesforcedirectly – I hear they

are fast!

Head of Purchasing

Business conversation Sourcing conversationIT Conversation

Head ofMarketing CIO Head of Applications

Head of Sourcing

We saved costs onApp Support, nowhow do we tackle

App Development?

Shadow IT is growing, while IT is being left behind to manage the legacy

We need to be partof the business!! Get ready

for agile, and releaseyour best teams

But we are busywith our legacy

Environment andconstantrequests

The evolution of Outsourcing and SIAM

The evolution of Service Integration

The evolution of Outsourcing

ITIL first published

IT is delivered in-house

Outsourcing is a business strategy

1980s

Large single-source/prime contractor deals (Provider acts as integrator)

Outsourcing is in vogue

Long duration (~7 – 10 years)

Lift and shift

1990s

Monolithic

ITIL v2 and 3

Early 2000s, SIAM overlooked

Late 2000s SIAM sourced as a discrete function

Diversification of supply

Shorter duration(~5 – 7 years)

Rise of Eastern based Providers

2000s

Bipartisan

Global awareness and interest in SIAM

SIAM introduced across the Enterprise

Multi-sourcing is the norm

Global Business Services

Shorter duration(~5 years)

2010s

Pluralistic

2020s

Dynamic

Focus on plug & play, flexibility, mobility, scalability, automation, info sharing

Ability to integrate a hybrid of technologies

Functional out-tasking

New technology based players

~3 years duration

Strategy

The Evolution of Sourcing & Service Integration… 1980s 1990s

Monolithic

2000s

Bipartisan

2010s

Pluralistic

2020s

DynamicIn-house

ITILV1.0

ITILV2.0

ITILV3.0

ITIL2011

CMM CMMiCoBIT IT4IT

Next Gen Operating Models

SIAM

DevOps

Agile

ISG’s Prediction: The Future of Sourcing

Internal Shared Services / Captives

Function

Function

Function

Function

Function

All TowersOR

Infrastructure ADM BPO Function(s)

Tower

Tower

Tower

Tower

Importanceof Labor Arbitrage

Importanceof Software, Platforms,

Labor Automation, & Scalability

Function

Social MediaCollaboration

Mobility BYOD

Analytics & Big Data

CloudComputing & Storage

Service Integration

Strategic & Selective Sourcing Multi-Sourcing Confederation

MARKET 5 – 10 YEARS AGO LAST 5 YEARS NEXT 3 TO 5 YEARS

Consequence: Shift away from Control driven to Integration led

Managing multiple Service Tower Providers Integrated Demand – Supply Dynamics

Client

ClientClient

Client

Client

!!Successful management of Multi-Sourcing or Confederation consists of the strategic sourcing and integration of services from the optimal set of internal and external Service Providers and Suppliers to fulfill business goals.

Business

ServiceDelivery /

Service Providers

Demand Supply

Cloud

SMAC

Traditional

BPaaS

Evolving SIAM – The Next Generation of SIAM

• Client retains the overall accountability for the integration of services, and plays key roles within the operation

• Service Provider staff, services and tools are leveraged as appropriate to provide some operational integration functions

• Various specialized 3rd party staff, services and tools are incorporated to integrate best in class capabilities

• The key; to meet the requirements of flexibility, automation, visibility, service orientation, and cost; is to

• Breakdown Service Integration into the right modular components

• Identify who is best to perform each component (which will be unique for each Client’s environment)

SIAM matured to become a patchwork of retained and out-tasked capabilities to integrate the evolving types of services.

Business ProcessInfrastructure

Infrastructure

Apps Dev

Apps Maint

Business Process

Client

Service Integration

Analytics & Big DataSolutions

Social MediaCollaborationCloud

Computing & Storage

MobilitySolutions

Service Provider Function

3rd Party Service

ClientRoles

Client Tools

Service Provider

Tool

3rd Party Tool

Po

rtfo

lios

of

Dem

and

Standardization

Exploration

Differentiation

Enterprise agility is driving new thinkingThe challenge for CIOs today is balancing speed and flexibility, legacy and innovation, whilst remaining in control, and delivering business value.

Strategy to Portfolio

Requirement to Deploy

Detect toCorrect

Plan Source ManageIT Value Chain“Describes the Business of IT” Request to

Fulfil

Offer

“Drive IT Portfolio to Business Innovation”

“Build what the business needs, when it needs it”

“Catalog, fulfil & manage service usage”

“Anticipate and resolve production issues”

IT4IT™ is a trademark of The Open Group http://opengroup.org

Goal is Speed and FlexibilitySpeed of Change to rapidly respond to emerging business requirements for applications that provide differentiation by opening new channels, products, or even markets, and / or delivering value in new or improved ways.

Flexibility to pivot based on new or evolving market opportunities, threats, or evolving business needs.

A value chain approach to model the functions that IT performs helps organizations identify the activities that

contribute to business competitiveness.

Service Integration is embedded in the Value Chain

SIAM in ContextSIAM is not a stand-alone corporate unit; SIAM is a view of how to manage shared and business services in an integrated fashion:

Headquarter

R&D Operations Sales & Marketing

Other Corporate Support Functions

. . .

. . .

. . .

Sub-structures by product and/or region

Integrated Shared Services …

… and Business Services with common interfaces

F&A

HR IT … …

Employee Services

Sourcing Services

Customer Services

Supplier Services

!!SIAM is the coordination and management of individual services from internal and/or external Providers; consolidating end-to-end services such that these services meet business objectives and requirements for performance, quality and cost.

SIAM

Transformation

Inevitable Solution: Service IntegrationThe ultimate goal of Service Integration is to provide business value to end users.

Service Integration is the coordination and consolidation of the management of individual services from internal and/or external Service Providers in the provision of an end-to-end service to the end users such that this service meets business objectives and requirements for performance, quality and cost.

!

Evolved Multi-Sourcing Integrated Services

Multi-sourcing Complexity meets Service Integration Control

Single-sourcing

►One internal Governance team

► Best effort processes

► SLA driven Provider steering

Early Multi-sourcing

► Individual business units managing Providers through divergent processes and governance

► Inconsistencies; not able to see the wood for the trees

►Duplication of effort

► Lack of integration/ complete view of the estate

Integrated multi-sourcing

► Service Integration

► Single set of processes to manage and govern supply

► Complete, integrated view across the supply and demand estate, e.g. dashboard with actual overview on results and process status

So What is Service Integration and Why is it So Important?

“Lack of management is central to the problems with multiple sourcing. 84% of companies do not have what they regard as a mature governance model.”

Financial Times

“It is possible to save up to 10% hard dollars and 10% soft dollars through good governance.”

ISG Governance ServicesBusiness

ServiceDelivery /

Service Providers

Demand Supply

Service Integration is the coordination and management of individual services from internal and/or external Service

Providers; consolidating end-to-end services for end users such that these services meet business objectives and requirements

for performance, quality and cost.

How do I manage my journey?Effective Service Integration & Management comprises strategic, tactical and operational functions that manage the interactions across the demand and supply sides of the environment.

Service Integration and Management (SIAM)

Business Services

Component Services

Business Needs

Request for Service

Service Delivery

Sup

ply

Cloud Services

(IaaS, PaaS, IaaS)

Social Media &

Collaboration

Traditional Services

(Data Center, Network)

BPaaS

Automation

De

man

d

Business Consumers

Divisions

End Users

Employees

External Customers Business

ValueManagement

Strategy

Provider Management

Service DesignService TransitionService Operation

Sourcing Management

Information Management

Risk & Compliance

ManagementProject Management

TBM

NOTEFor heavily outsourced organisations, SIAM is >90% of what they do! These are IT’s business processes.

ISG’s Service Integration & Management Blueprint

• Managing an integrated multi-sourced environment requires viewing your environment as an integrated system of fulfilling demand through orchestrated supply.

Guide the enterprise through strategy planning and effective decision making

Assure delivery effectiveness and manage the relationship

of your Service Providers

Maintaining control and drive performance through operating

standards, measures, and governance

Integrate day to day operations between yourself and your Service Providers

So how do you get started – a SIAM JourneyNo matter where you are in your journey, you can start down a path of improved operations…

Inform

What is happening in the market?

What is SIAM?

SIAM

Assess

What is the right scope?What to retain?What to source?

Design

What contractual and commercial relationships are

required?

Which processes and tools are

required?What does

SIAM mean for me?

What are the building blocks

to be considered?

Execute

What will my transformation

journey look like?

What should I measure and

report?How do you

govern across the operating model?

How will I change my

organization

Operate

How do you start?

People – Align and enable a Skilled Workforce to achieve the organization’s objectives

Define your priorities, build the key components, and enable the change for successful operations

Processes – Identify critical work and establish clear Roles & Responsibilities

Organization – Create the structure to enable people to efficiently conduct operations

Governance – Enable ongoingStrategic Alignment and control of Performance and Risks

Services – Create Service Delivery structure and Agreements to Integrate services delivered

Value – Align your Drivers, Objectives and Performance with stakeholder needs

Technologies – Enable visibility of performance, and Integration of Information and Workflow

Add slides here with visualised case studies

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