This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/logics-for-it-sourcing-internal-shared-service-center-out-cloud-285
The "Deliver Business Value with IT" series provides a good overview and actionable material of the ways a CIO can provide valuable and effective support to your company strategy and leverages business model concepts to deliver business value from IT. Martin Palmgren propose an extremely solid piece of work that comes across as the A-Z reference of how to execute and implement IT strategy from a CEO and CIO level perspective."
Executive Summary:
The CIO and the IT Department need to position as premium provider of IT services and focus on value to cost.
Organizational Structure Running A Successful Business
Logics for IT Sourcing (Internal, Shared service center, Out, Cloud)
1. .
Copyright 2012 COMMUNICATE!
Build an effective IT Delivery Model to
meet Business Needs!
- To deliver to set business strategy and objectives !
!!
By
Martin Palmgren, IT Strategy and Transformation Executive @ .COMMUNICATE
1
2. .
Copyright 2012 COMMUNICATE!
CEO, CFO, CIO, CTO, SVP, Architects, Strategy, Business Executives
and the IT function in general. !
Target Audience!
3
3. .
Copyright 2012 COMMUNICATE!
•
•
•
•
•
•
•
Build an effective IT Delivery Model (1)!
Leverage Business Strategy execution with IT (2)!
Build an IT Service Strategy leveraged by ITIL V2 & 3 Design, Build (3)!
Build an IT Service Strategy leveraged by ITIL V2 & 3 Run (4)!
Logics for IT Sourcing (Internal, Shared service center, Out, Cloud) (5)!
Get your cloud strategy right (6)!
Build a CIO Office (7)!
“Canvassed” in a Business (IT) Strategy Canvas:!
• “Canvassed” Business Strategy and Architecture: Business Vision, Architecture
(Articulate, Deliver) (8)!
• “Canvassed” IT Strategy: IT Vision (9)!
• “Canvassed” IT Strategy: IT Baseline, RoadMap (10)!
• “Canvassed” IT Architecture: Design, Build, Transform (11)!
We provide a Transversal Perspective!
5
4. .
Copyright 2012 COMMUNICATE!
Martin Palmgren, EVP .COMMUNICATE – Deliver Business Value with
IT / martin.palmgren@pscommunicate.com (mail)!
Deliver Business Value with IT (the book) https://www.smashwords.com/books/view/290604 (the
blog) http://deliverbusinessvaluewithit.wordpress.com /!
CONTACT!
7
6. .
Copyright 2012 COMMUNICATE!
Cloud computing (cloud sourcing) is now a part of the IT strategy landscape and
an understanding of how to leverage the "cloud" will become prerequisite for
decision makers both on the IT and the business side. The course will provide
the students the necessary tools to draw an IT strategy leveraged by the cloud
and is key for any student that would like to work within the IT and / or Strategy
consulting domain. !
Due to the use of Business Cases the course is limited to 25 students.!
Overview or “why should I care for this course”!
11
7. .
Copyright 2012 COMMUNICATE!
Presentation , workshop, case studies (Cloud Computing, P & G) as well as
business cases in order to anchor the logics !
Pedagogical Method!
13
14. .
Copyright 2012 COMMUNICATE!
Cloud computing a paradigm shift in technology:!
Cloud Computing, the latest buzzword and game changer in Information Technology (IT) sector had
been garnering huge attention among the corporate and consumers. The innovation and proliferation of
modern technologies like smart phones and tablets had necessitated the evolution of modern methods
of computing and data storage. Cloud service providers were offering hardware and software solutions
over the Internet as an alternative for traditional giant servers that were deployed within the company
premises. The cloud model facilitates access to data and applications from anywhere, at anytime and
through any computer linked to the Internet. It also provided 'pay-per-use' access to a pool of resources
to the enterprises based on their need and demand which further enabled them to focus only on their
core competencies instead of the capital expenditure component. But on the hind side, IT sector had
always been on the verge of technological evolution. The technology that was considered to be musthave today might become outdated tomorrow. Besides, cloud computing was considered to catalyze
disruption in the growth of new technology delivery models, evolution of new IT architecture, etc. Even
though cloud computing had proved to be beneficial in both commercial and technical angles, it
possessed several inherent challenges such as lack of security, piracy as well as legal issues that
should be addressed before adopting a cloud based business model. Hence it remained to be seen
whether cloud computing would overcome these initial hiccups and alter the trajectory of the IT industry
while Green computing concept was gaining ground in the 21st century.!
Case Study 1: Cloud computing!
27
15. .
Copyright 2012 COMMUNICATE!
• BC for out sourcing (2 h) 8 Minutes of presentation per group x 4
+ 28 Minutes brief / debrief (3 h). Support: logics for outsourcing.!
• Effective Out Sourcing is business critical. The Board of the XZY
group has asked the CIO team (you) to provide a perspective on
how support the execution of the business strategy with IT. You
have 8 minutes to provide the board with an understanding of the
delivery model(s) (internal, outsource, shared service center, cloud),
how they can be leveraged, critical success factors and logics to
take decisions. !
• The group will also be asked to provide a 1 page “executive”
brief.!
BC for Outsourcing!
29
16. .
Copyright 2012 COMMUNICATE!
• BC for Sourcing (2 h) 8 Minutes of presentation per group x 4 + 28
Minutes brief / debrief (3 h). Support: logics for outsourcing.!
• To build an effective Sourcing Strategy is business critical. The
Board of the XZY group has asked the CIO team (you) to provide a
perspective on how support the execution of the business strategy
with IT. You have 8 minutes to provide the board with an
understanding of the Sourcing / procurement / delivery model(s)
(internal, outsource, shared service center, cloud), how they can be
leveraged, critical success factors and logics to take decisions. !
• The group will also be asked to provide a 1 page “executive”
brief.!
BC for Sourcing Strategy!
31
17. .
Copyright 2012 COMMUNICATE!
• BC for eSCM SP (2 h) 8 Minutes of presentation per group x 4 + 28
Minutes brief / debrief (3 h). Support: eSCM SP!
• Effective Sourcing is business critical. The Board of the XZY group
has asked the CIO team (you) to provide a perspective on how
support the execution of the business strategy with IT. As a result of
your previous intervention the board has now a clear understanding
of the subject and would like to understand how to leverage the
eSCM framework for Service Providers (SP) organisations. You
have 8 minutes to provide the board with an understanding of how
to leverage one of the chosen capability area: Knowledge, People
and Performance Management, 3 of the 10 Capability areas.!
• The group will also be asked to provide a 1 page “executive”
brief.!
BC for eSCM SP!
33
18. .
Copyright 2012 COMMUNICATE!
• Logics for IT sourcing (3 h) !
• BC for out sourcing (2 h) 8 Minutes of presentation per group x 4 + 28
Minutes brief / debrief (3 h). Support: logics for outsourcing.!
• BC for cloud sourcing (2 h) 8 Minutes of presentation per group x 4 + 28
Minutes brief / debrief (3 h). Support: logics for outsourcing.!
• BC for Sourcing Strategy (2 h) 8 Minutes of presentation per group x 4 +
28 Minutes brief / debrief (3 h). Support: logics for outsourcing.!
• BC for eSCM CL (2 h) 8 Minutes of presentation per group x 4 + 28
Minutes brief / debrief (3 h). Support: eSCM CL!
• BC for eSCM SP (2 h) 8 Minutes of presentation per group x 4 + 28
Minutes brief / debrief (3 h). Support: eSCM SP!
Break Out / Planning!
35
19. .
Copyright 2012 COMMUNICATE!
Differentiation
(That is, how does a Cloud initiative provide a competitive advantage for
the business), !
and
!
Cost
(How does the Cloud initiative permit the IT Department to deliver IT Services cost effectively) !
ACCENTURE Point of View 2012,
Reimagining Enterprise IT for an Uncertain Future!
We identified 2 key trends:!
37
20. Strategy Execution!
IT Infrastructure Portfolio Management!
Application Portfolio Management!
Service Portfolio Management!
Enterprise Portfolio Management:!
Process based IT Architecture!
Project Portfolio Management !
Performance Management:!
Process based Business Architecture !
Product / service life cycle management!
Business Strategic Intent!
Strategy Articulation!
.
Copyright 2012 COMMUNICATE!
Time to Market!
Cost Effectiveness!
Cycle Time!
Time to Market (Governance: Performance & Conformity)!
Business (IT) Strategy Road Map (How)!
Time to Market, Strategy Execution!
39
21. .
Copyright 2012 COMMUNICATE!
This would translate in to, on the business (IT) side: 1) which business
processes are concerned with the increase and how do we support them today
and how do we anticipate the increase (applications, infrastructure, support)? 2)
Is there an opportunity to further industrialise processes (off the shelf
applications, build)? 3) Supported by hardware (laptop, (i)pad, smart phone)? 4)
Can we spell out the cost?!
On the IT side we need to understand 1) which service that are concerned
(increase / decrease in demand) and if we need to modify / provide new service
bundles, 2) do we provide a cost effective and secure IT architecture and that
permit the rapid development of new business services 3) Business cases, that
is can we spell out the cost? 4) can we ensure that services / applications are up
and running (business continuity)….!
Are supported by IT objectives!
41
22. .
Copyright 2012 COMMUNICATE!
The IT service proposition is aligned to the business strategy as:!
•
!
•
•
•
•
Stakeholder expectations are understood and IT propose a !
service portfolio that correspond to Demand and Cost drivers !
Business Contribution, Cost, Consumption & Chargeback is identified!
Focus is on perfect order business transactions!
Services are effective (demand and cost drivers identified)!
Services are competitive (Benchmark Industry Market Forces)!
• New technological solutions that could change how current business
is performed are explored, proposed and implemented.!
! !
IT contributes to business objectives!
43
23. Service strategy !
Delivery capability!
Architecture!
Security!
Strategy Execution!
“This is how we support business objectives
with services in a time to market perspective” !
“This is how we deliver IT
services to the business” !
Business (IT) Value Proposition!
.
Copyright 2012 COMMUNICATE!
(IT) Business Model!
!
Develop vision and strategy
!
Develop and manage products and services
!
Market and sell products and services
!
Deliver products and services
!
Manage customer services
!
Develop and manage Human Capital
!
Manage information technology
!
Manage financial resources
!
Acquire, construct and manage property
!
!
Manage environmental health and safety !
!
Manage external relationships
!
Manage knowledge, improvement and change
!
Time to Market (Governance: Performance & Conformity)!
Business (IT) Strategy Road Map (How)!
Deliver effective business strategy execution!
45
24. .
Copyright 2012 COMMUNICATE!
With A Business (IT) Value Proposition “This is how we support business objectives
with services in a time to market perspective” where we support business
processes (Develop vision and strategy, Develop and manage products and
services, Market and sell products and services, Deliver products and services,
Manage customer services, Develop and manage Human Capital, Manage
information technology, Manage financial resources, Acquire, construct and
manage property, Manage environmental health and safety, Manage external
relationships, Manage knowledge, improvement and change) where Business
processes (bundled Business services) are supported by applications.!
“This is how we support business objectives”!
47
25. .
Copyright 2012 COMMUNICATE!
Executive Management!
Business Unit Management! IT Management!
IT Risk Management!
Business (IT) Drivers!
Drives!
Demand and Cost Drivers!
Delivers!
(IT) Service Strategy!
Executes!
Metrics!
Strategy Execution!
Time to Market (Governance: Performance & Conformity)!
Business (IT) Strategy Road Map (How)!
and the Service Strategy support Business Drivers!
49
26. .
Copyright 2012 COMMUNICATE!
Priorities from a Business Unit Management Perspective:!
!
- IT supports the achievement of tactical business objectives!
!
- IT delivers perceived added value services and at a reasonable cost!
!
- IT delivers to operational and service level agreements (commitments)!
!
- IT investments positively affect business productivity and the customer experience!
!
- We have a clear process vision to which we expect the IT department to deliver!
IT delivers to demand and cost drivers!
51
27. .
Copyright 2012 COMMUNICATE!
Priorities from an IT Risk Management Perspective:!
!
- The organisations assets and operations are protected!
!
- Key business and technology risk is effectively managed!
!
- Effective process, practise and controls are in place!
!
- We have clear security objectives to which we expect IT to deliver!
Bottom Line: To leverage competitive advantage with new technology is “nice to
have”, to keep the business systems running is mission critical!!
Business Continuity is Ensured!
53
28. .
Copyright 2012 COMMUNICATE!
We Source IT to: !
!
!!
!
!
!
!
!!
!!
!!
!!
• Meet Demand and Cost Drivers ()!
!
- Per see competitive advantage ()!
!
- Meet Demand and Cost drivers ()!
!
- To cloud is a decision to outsource ()!
!
- “Public” versus “Private” cloud ()!
!
! ! !
! ! !
! ! !
55
29. .
Copyright 2012 COMMUNICATE!
!
The competitive advantage of the external cloud lays above all with 1) the
corporate teams ability to negotiate effective contracts (volume, peak, exit)
where total cost of ownership (TCO) should be clearly visible with the
possibility to renegotiate contracts as prices fall over time, 2) the IT
departments ability to provide effective IT services to their internal clients. !
!
In order to back up the investment we need to provide a business case with
TCO of the current run as well as future build and run. This would also be
valid for outsourcing and shared service centre initiatives.!
!
If the decision to move to the external cloud is not backed by a clear
business case (BC) with TCO for the existing run future cloud solution that
would include cost of exit you might want to ask a few more questions before
you move ahead.!
Peer see competitive advantage!
57
30. .
Copyright 2012 COMMUNICATE!
!
The public cloud: Salesforce.com is one of the few survivors of the first
internet wave where one of the major ideas targetted towards the B to B
market was to facilitate the ERP court for enterprises where independent
providers would run ERP blocs such as CRM for the client where the data
would reside outside the firewall in the providers application. This solution is
excellent for enterprises that do not wish to invest in an application that would
provide a similar service internally.!
!
Google has over the years enhanced their portfolio of application that run on
their servers where individuals can use an email function (Gmail) to drive
trafic to their search engine. This function was later made available to
enterprises. !
As Amazon (and Google) have become highly effective over time to negotiate
storage space they at one point decided to leverage this ability to procure
and run storage space less expensively available to individuals and
entreprises. The principle is to provide storage space outside the firewall on
which the enterprise can run applications (in an architecture as a bundle of
services). !
To cloud is a decision to outsource!
59
31. .
Copyright 2012 COMMUNICATE!
Within the current Cloud Business Model we would find 1) hosted applications
contracted to run data (salesforce.com, gmail) provided by an external application
provider, 2) the external (Public) cloud (servers provided by a cloud provider
outside the firewall) and 3) the internal (Private) cloud (servers provided inside
the firewall). !
We have over the last 12 months seen 2 trends for cloud deployment 1) cost
(optimisation) confirmed with Total Cost of Ownership (TCO), 2) demand (to
deliver to new business needs to which we are not able to cater within the
existing perimeter).!
!
!
“Public” versus “Private” cloud!
61
32. .
Copyright 2012 COMMUNICATE!
We Source IT to: !
• Meet “time to market”, Cost effectiveness and Cycle
Time ()!
!
!
!
!
!
!
!!
!!
!!
!!
!!
!!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
- Business Drivers ()!
- Make or Buy () !
- Source Internally ()!
- Subcontract ()!
- Source externally (Outsource) ()!
- Shared Service Centre ()!
- Public (external) Cloud ()!
- Software as a Service (SaaS) ()!
- Platform as a Service (PaaS) ()!
- Infrastructure as a Service (IaaS) ()!
- Private (Internal) Cloud ()!
- Hosted Applications ()!
63
33. Strategy Execution!
IT Infrastructure Portfolio Management!
Application Portfolio Management!
Service Portfolio Management!
Enterprise Portfolio Management:!
Process based IT Architecture!
Project Portfolio Management !
Performance Management:!
Process based Business Architecture !
Product / service life cycle management!
Business Strategic Intent!
Strategy Articulation!
.
Copyright 2012 COMMUNICATE!
Time to Market!
Cost Effectiveness!
Cycle Time!
Time to Market (Governance: Performance & Conformity)!
Business (IT) Strategy Road Map (How)!
Meet “time to market”, Cost effectiveness, Cycle Time !
65
34. .
Copyright 2012 COMMUNICATE!
We make (provide IT services internally) when the service provides a
competitive advantage, can be provided to a lesser or equal cost or legal
constraints impose data control.!
We buy (provide IT services externally) when the service does not provide
a competitive advantage and the services can be acquired for a lesser cost
externally.!
In the case of an external Cloud the setup of a service on an external
infrastructure (IaaS) can shorten the “Time to Market” that is the time
needed to deliver the service (application) to the client. The application can
then be brought to an internal cloud (or server) or continue to run on an
external cloud as needed. !
Make or Buy!
67
35. .
Copyright 2012 COMMUNICATE!
A Shared service centre is put in place to optimise cost and competency.
Process execution is performed by an internal provider and the applications
can sit on an internal (private) or external (public) cloud.!
Shared Service Centre!
69
36. .
Copyright 2012 COMMUNICATE!
We Source externally (Outsource) to perform the execution of a process
that can be manual or industrialised with IT. Delivery is performed by and
external provider. The client data sit on the providerʼs servers (provider
internal cloud) or on a hosted application (provider external cloud /
Hybrid).!
Source externally (Outsource)!
71
37. .
Copyright 2012 COMMUNICATE!
Software as a service sometimes referred to as "on-demand software", is
a software delivery model in which software and associated data are
centrally hosted on the cloud (Internal, External). !
Do we buy or do we lease? Investment or operational expenditure.!
Software as a Service (SaaS)!
73
38. .
Copyright 2012 COMMUNICATE!
In this most basic cloud service model, cloud providers offer computers,
as physical or more often as virtual machines. !
Infrastructure as a Service (IaaS)!
75
39. .
Copyright 2012 COMMUNICATE!
We leverage Hosted Applications, as the application is contracted and
sit on a provider internal /external Cloud with the application provider
(Gmail, Google Apps for Business, Google + Salesforce.com, dropbox).
The provider performs some form of services (infrastructure, security,
maintenance, upgrades, helpdesk) but there is no business process
execution.!
Hosted Applications!
77
40. .
Copyright 2012 COMMUNICATE!
We have identified the following critical success factors:!
• Does this initiative support business objectives?!
– Cost is the primary driver!
– Demand is the primary driver!
•
•
•
•
•
Capacity is adapted to need & price is scalable as business in(de)crease!
Peak loads can be absorbed with little impact on performance and response time!
Ability to audit metrics used by the provider to calculate the utility price!
Version upgrades and migration are transparent (hybrid and cloud model)!
Licensing of applications is clear & Interoperability ensured (hybrid and cloud
model)!
The Demand & Cost model is clear!
79
41. .
Copyright 2012 COMMUNICATE!
To establish an effective Cloud Model you need to perform an in depth
analysis of business needs to understand Total Cost of Ownership with
Cost, Consumption and Chargeback. !
! !
Total Cost of Ownership!
81
42. .
Copyright 2012 COMMUNICATE!
•
•
•
•
•
•
Customers pay for services that they use!
Decisions are made based upon cost, not politics!
IT is incented to reduce costs and compete!
Users do not request unnecessary demands!
KPIʼs become established to measure performance!
SLA are put in place
IT Decision based on Total cost of ownership!
83
43. .
Copyright 2012 COMMUNICATE!
As Initiatives are effective and stakeholder oriented: !
!
!
Mergers and Acquisitions (M&A) !
!
Data room Development!
!
!
!
!
Data Centre Migration!
!
GAP (As Is, To Be, ROI)!
!
!
IT Organisational Transformation: Towards a Service Based Logic!
!
GAP (As Is, To Be, ROI)!
!
!
Shared Service Centres, Outsource, Cloud & Benchmark!
!
GAP (As Is, To Be, ROI)!
!
!
Synergies & consolidation options!
The IT Strategy is Effectively Leveraged!
85
44. .
Copyright 2012 COMMUNICATE!
!
Articulate the Business (IT) Service Strategy!
!
Build the Sourcing Strategy
!
The focus on sourcing as a part of the service strategy is limited to the identification
of an optimal sourcing strategy for the IT Service Strategy. !
!
Question: How do we optimally source our IT requirements to execute strategy and
business drivers and objectives?!
!
Objective: The objective is to create a model to meet the IT services strategy
required by the organisation and how it should be packaged for optimal delivery. This
leads to a definition of the resources (skills and competencies) required to support and
manage defined services effectively. Service levels and key performance indicators to
monitor and manage each service ʻbundleʼ are also developed to ensure the effective
management services.!
!
Benefit: Define the value of services required to support the business requirements
and identify the best sourcing options for IT to meet business performance objectives.!
!
!
!
!
!
!
87
45. .
Copyright 2012 COMMUNICATE!
!
Articulate the Business (IT) Service Strategy!
!
Build the Sourcing Strategy
!
Develop a service architecture:!
!
The Service Strategy is developed with input from the IT Assessment, Demand Side
Architecture, Technical Architecture and preliminary reflections on governance to
structure an architecture of the IT services. The architecture clearly identifies services
(in-house and outsourced) required by the organisation with skills and competencies
required to effectively manage the required services.!
!
!
!
89
46. .
Copyright 2012 COMMUNICATE!
!
Articulate the Business (IT) Service Strategy!
!
!
Build the Sourcing Strategy
!
Develop a service architecture: Establish guiding principles!
!
To establish guiding principles to take decisions on to in-source or outsource
services the key elements considered include available skills and competencies, cost,
potential for improved productivity, effectiveness and user satisfaction to meet demand
and cost drivers.!
!
!
!
91
47. .
Copyright 2012 COMMUNICATE!
!
Articulate the Business (IT) Service Strategy!
!
Build the Sourcing Strategy
!
Develop a service architecture: Evaluate sourcing options!
!
All identified sourcing options should be evaluated as we look at the benefits, cost
and risk associated with each option. !
!
!
!
!
!
!
93
48. Articulate the Business (IT) Service Strategy!
!
Build the Sourcing Strategy
!
Develop a service architecture: Outsource, Cloud (source) Effectively!
!
The best outsourcing agreement is not necessarily the one with the lowest price. In fact,
successful outsourcing contracts are those that strike a balance and focus on the primary goal
of meeting business needs on day one and throughout the life of the contract. Five guidelines
to help companies align their outsourcing agreements with internal strategies and
requirements.
.
Copyright 2012 COMMUNICATE!
!
!
Five Ways to Strike the Right Balance:
1. Contract Terms – It is important for you to fully understand the terms and conditions you
will live with for many years to come. Governance, delivery locations, and clear termination
language are critical pieces of a successful outsourcing agreement.
2. Statement of Work (SOW) – SOWs should clearly define the roles and responsibilities of
the provider as well as the client side. We recommends organizing the SOW into marketbased towers, such as Server Management, Contact Center Management, Applications
Development, etc. which results in easier ʻapples to applesʼ comparisons of competing
providers. Setting up the SOW this way also makes it much easier to benchmark the price of
services periodically over the term of the contract.
95
49. .
Copyright 2012 COMMUNICATE!
!
Articulate the Business (IT) Service Strategy!
!
Build the Sourcing Strategy
!
Develop a service architecture: Outsource, Cloud(source) Effectively!
!
5. Pricing – Expect your outsourcing costs to go down over time. One of the best ways
to ensure the long-term success of your outsourcing agreement is to start with an
agreement based on market prices. This means you are starting the relationship in the
right place, and any future pricing adjustments (such as benchmark adjustments) will
not be as extreme or emotional as they otherwise might be.
!
! !
97
50. “This is how we support business objectives
with services in a time to market perspective” !
“This is how we deliver IT
services to the business” !
Service strategy !
Delivery capability!
Architecture!
Security!
Business (IT) Value Proposition!
.
Copyright 2012 COMMUNICATE!
(IT) Business Model!
Strategy Execution!
!
Develop vision and strategy
!
Develop and manage products and services
!
Market and sell products and services
!
Deliver products and services
!
Manage customer services
!
Develop and manage Human Capital
!
Manage information technology
!
Manage financial resources
!
Acquire, construct and manage property
!
!
Manage environmental health and safety !
!
Manage external relationships
!
Manage knowledge, improvement and change
!
Time to Market (Governance: Performance & Conformity)!
eSCM!
A Framework to structure demand and supply !
99
51. .
Copyright 2012 COMMUNICATE!
! Its 95 Practices are arranged along three dimensions: !
• Sourcing Life-cycle (Analyse, Initiate, Deliver, Complete), !
• Capability Areas, and !
• Capability Levels. !
! The e-Sourcing Life-cycle includes Analysis, Initiation, Delivery, and
Completion, each of which represents an individual phase of the Lifecycle, plus Ongoing, which spans the entire Life-cycle. Capability
Areas are groupings of Practices with similar content and focus.
Capability Levels represent a path of improvement for client
organizations. !
!
!
Capability Model for Client Organisations !
101
52. .
Copyright 2012 COMMUNICATE!
Its 84 Practices are arranged along three dimensions: !
• Sourcing Life-cycle (Analyse, Initiate, Deliver, Complete), !
• Capability Areas, and !
• Capability Levels. !
! The Sourcing Life-cycle includes Initiation, Delivery, and Completion,
plus Ongoing, which spans the entire Life-cycle. Capability Areas are
groupings of Practices with similar content and focus. Capability
Levels represent a path of improvement for service providers. !
!
!
Capability Model for Provider Organisations !
103
53. .
Copyright 2012 COMMUNICATE!
We Source IT to: !
• Business Case ()!
!
!
!
!
!!
!!
!!
!!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
- Conclusion () !
- Breakout ()!
- How to structure the BC with a Story Board ()!
- Spell out Advantages & Inconveniences ()!
- BC to Cloud Source ()!
- BC how to leverage the IT Service Strategy with the Cloud ()!
- BC for Sourcing ()!
- Build a roadmap for Demand or Cost driven cloud implementation (BC) ()!
- Build a roadmap for Make or Buy driven cloud implementation (BC) ()!
!
105
54. .
Copyright 2012 COMMUNICATE!
• With the business case as departure use the storyboard concept
to structure and build a compelling story to present the subject use
one A1 post it page per step (6 - 8)!
• Use the business case description to introduce the subject As-Is
and the proposed solution and how to deliver it as To-Be !
• Use the SWOT model to spell out opportunities and threats,
advantages and inconveniences but use the story board concept
for the story (a SWOT only will be considered as a failed
presentation and be awarded with a 0 / Fail).!
• Build complete phrases with Key Words. Key words only will not
be seen as valid (awarded with a 0 / Fail) as you will forget once in
front of your audience.!
• Use the time awarded to structure the 1 page executive
summary that you will be asked to hand in per BC. !
How to build and present the Business Case!
107
55. .
Copyright 2012 COMMUNICATE!
As Is!
(where we are today)
!
To Be!
(where we would like to be
in 6, 12, 18 months)!
! !
!
!
!
• How to go there!
• Critical Success Factors!
! • Milestones, Timelines!
• Advantage (Strength, Opportunity) !
! • Inconvenience (Weakness, Threat)!
!
• Next steps!
How to structure the BC with a Story Board!
109
62. .
Copyright 2012 COMMUNICATE!
We Source IT to: !
!
!!
• Build Business Case ()!
!
- Breakout ()!
!
!
!
!
!
!
!
!
!!
!!
!!
!!
!!
!!
!!
!!
!
!
!
!
!
!
!
!
- How to build and present the business case ()!
- How to structure the BC with a Story Board ()!
- Spell out Advantages & Inconveniences ()!
- BC for Out sourcing ()!
- BC for Cloud sourcing ()!
- BC for Sourcing Strategy ()!
- BC for eSCM CL ()!
- BC for eSCM SP ()!
123
63. .
Copyright 2012 COMMUNICATE!
• With the business case as departure use the storyboard
concept to structure and build a compelling story to present the
subject use one A1 post it page per step (6 - 8)!
• Use the business case description to introduce the subject AsIs and the proposed solution and how to deliver it as To-Be !
• Use the SWOT model to spell out opportunities and threats,
advantages and inconveniences but use the story board
concept for the story (a SWOT only will be considered as a
failed presentation and be awarded with a 0 / Fail).!
• Build complete phrases with Key Words. Key words only will
not be seen as valid (awarded with a 0 / Fail) as you will forget
once in front of your audience.!
• Use the time awarded to structure the 1 page executive
summary that you will be asked to hand in per BC (5 in
total). !
How to build and present the Business Case!
125
64. .
Copyright 2012 COMMUNICATE!
• BC for cloud sourcing (2 h) 8 Minutes of presentation per group x
4 + 28 Minutes brief / debrief (3 h). Support: logics for outsourcing.!
• Effective Cloud Sourcing is business critical. The Board of the
XZY group has asked the CIO team (you) to provide a perspective
on how support the execution of the business strategy with the
“CLOUD” as they have heard that it will solve all their problems. You
have 8 minutes to provide the board with an understanding of the
delivery model, how it can be leveraged, critical success factors and
logics to take decisions. !
• The group will also be asked to provide a 1 page “executive”
brief.!
BC for Cloud sourcing!
127
65. .
Copyright 2012 COMMUNICATE!
• BC for eSCM CL (2 h) 8 Minutes of presentation per group x 4 + 28
Minutes brief / debrief (3 h). Support: eSCM CL!
• Effective Sourcing is business critical. The Board of the XZY group
has asked the CIO team (you) to provide a perspective on how
support the execution of the business strategy with IT. As a result of
your previous intervention the board has now a clear understanding
of the subject and would like to understand how to leverage the
eSCM framework for Client (CL) organisations. You have 8 minutes
to provide the board with an understanding of how to leverage one
of the chosen capability area: Sourcing Strategy, Governance,
Relationship, Value and Organisational Change Management, 5
of the 17 Capability areas.!
• The group will also be asked to provide a 1 page “executive”
brief.!
BC for eSCM CL!
129
66. .
Copyright 2012 COMMUNICATE!
Upon successful completion of this course students will be able to:!
- Establish an appropriate Cloud sourcing strategy, !
- Identify capabilities that could be cloud sourced, !
- Develop appropriate approaches for cloud sourcing activities,!
- Manage risks throughout their cloud sourcing activities, !
- Identify, select and negotiate with service providers, !
- Conduct service provider governance and performance management, !
- Manage relationships with service providers.!
Last year I was able to place one of the students in the group that
outperformed for an Internship with Logica Business Consulting to
develop a new service offer related to IT Strategy and Cloud Computing.!
Learning Objectives / Take away!
131
67. .
Copyright 2012 COMMUNICATE!
CEO, CFO, CIO, CTO, SVP, Architects, Strategy, Business Executives
and the IT function in general. !
Target Audience!
133
68. .
Copyright 2012 COMMUNICATE!
BrightTalk Thought Leadership: http://www.brighttalk.com/community/it-service-management/webcasts?q=martin+palmgren !
Get your cloud strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/29211 !
Get your IT Service Strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/23630!
Leverage Strategy with IT: http://www.brighttalk.com/community/it-service-management/webcast/534/22934 !
Cloud Computing: Fluff or Lightening? http://www.brighttalk.com/community/it-service-management/webcast/534/21892 !
Run IT as a Service Business! http://www.brighttalk.com/community/it-service-management/webcast/534/21389 !
In French: !
Cloud Computing : La tête dans les nuages?: http://www.brighttalk.com/community/it-service-management/webcast/534/21919 !
Baseline: Coût, Consommation, chargeback et contribution IT aux objectifs de l'entreprise : !
http://www.brighttalk.com/community/it-service-management/webcast/534/21388!
Deliver Business Value with IT (the book) https://www.smashwords.com/books/view/290604 (the blog) http://
deliverbusinessvaluewithit.wordpress.com /!
I also share perspective @ some of the top French Business Schools, notably EDHEC!
International Thought Leadership!
135