1. How to Derive Sourcing Strategies
in Application Management
1. Xing Event Application Management
Wien, 31. Mai 2011
Christian Kaupa
Leiter Application Management CEE
Siemens IT Solutions and Services
Page 1 Christian Kaupa © Siemens IT Solutions and Services 2010. All Rights Reserved.

2. Sourcing im Application Management hat
viele gute Gründe
Reduce cost Improve agility
Reduce spend on non-core activities; Adopt applications and services that
contain costs and re-focus on core can flexibly respond to business
business change
Increase quality Maximize Transparancy
Achieve high quality service delivery Gain transparency and flexibility of
through standardized processes and costs through customer-tailored price
accreditation models
Deliver globally Simplify business
Deliver services wherever you Improve business performance through
operate around the world; leverage application and process consolidation
economies of scale and harmonization
Guarantee compliance Leverage innovation
Ensure 24x7 information security and Use technology innovation to
compliance with regulatory increase business performance
frameworks and add value to the enterprise
Page 2 Christian Kaupa © Siemens IT Solutions and Services 2011. All Rights Reserved.

3. Der Schnitt zwischen Make or Buy muss
kundenindividuell gezogen werden
Horizontal cut:
1 Full Outsourcing (service mgmt by Provider)
Customer
Service
2 Managed Outsourcing (demand mgmt by cust.) Governance
5 Staff Augmentation (Provider as body leaser)
Service
Vertical cut:
Management Demand
3 Selective Outtasking Management
z. B. commodity services
Provider
Application User Probl. Incident En- Projects
3rd dimension: Basis Help Mgmt. Mgmt. hance-
Support Desk ments
4 Adaptation of vertical cut to
multiple applications / systems Provider Service Delivery
Provider Provider Provider Provider
Page 3 Christian Kaupa © Siemens IT Solutions and Services 2011. All Rights Reserved.

4. Value Comparison Assessment als Methode zur
Ableitung der Sourcing Strategie im AMS
1. Review Business Objectives 2. Understand VCA Objectives
Determine areas needing
improvement
Establish IT value targets
3. Assess Current
Environment
6. Report Results Collect current
VCA Assessment support cost
Summary Evaluate current
5. Develop Roadmap support model
Executive
High level like-for-like solution
Presentation
SLA modeling
Cost reduction
Integrate IT Business Value objectives 4. Identify Potential Opportunities
Increase IT value alignment
Cost reduction
Efficiency & productivity gains
Page 4 Christian Kaupa © Siemens IT Solutions and Services 2011. All Rights Reserved.

5. Beispiele für Analysen der Applikationslandschaft
High
Application Outsourcing Assessment
High
B G
Business Impact
B
D Most
A
G promising
Interaction
End User
A application
E
Tier 1
F D
C F
Low
E
C
Design Build Maintain Modify Low
Software Lifecycle Commodity Important Critical
Application Criticality to Business
3.5
Size
3
Requirements
Technology
2.5 Stability
Volatility
Skill
2
Retirement
1.5
A B C D E F G Business Knowledge
Biz Mgr Architect 1 Complexity
Proj. Mgr ABAP Programmer 0.5 Development Phase
Client Svr. Programmer SAP Business Analyst Service Level
App Support 0
Landscape Readiness Check
Page 5 Christian Kaupa © Siemens IT Solutions and Services 2011. All Rights Reserved.

6. Das Value Comparison Assessment erfolgt in
vier straffen Phasen
Introduction Challenges VCA Overview Proposed Approach
Elapsed Time
0.5 week 1-2 weeks 1-2 Weeks 0.5 week
Data
Startup Analysis Results
Gathering
Project Management, Reporting and Control
Introduction Project initiation Data collection Findings presentation
and discussion
Engagement overview Process training Data analysis
Identification of next
Customer situation Stakeholder interviews Comparison
steps
discussion benchmark calculation
Data gathering
Project closure
Scoping and timescale Service roadmap
Data validation
scheduling customization
Approval to proceed Report preparation
Quality Gate
Page 6 Christian Kaupa © Siemens IT Solutions and Services 2011. All Rights Reserved.

7. Bei weiteren Fragen kontaktieren Sie bitte…
Christian Kaupa
Head of Application Management CEE
Siemens IT Solutions and Services
SIS GO GAA CEE
Mobile: +43 (664) 80117-29410
E-Mail: christian.kaupa@siemens.com
Page 7 Christian Kaupa © Siemens IT Solutions and Services 2011. All Rights Reserved.