Deeper © Copyright IBM Corporation 2008 IT Strategy Workshop Training.

deeper

© Copyright IBM Corporation 2008

IT Strategy WorkshopTraining

© 2008 IBM Corporation2

Dynamic Infrastructure

Agenda

IT Strategy Workshop Overview and Kit IT Strategy Workshop Discussion Guide IT Strategy Workshop Process Flow and Facilitator’s Guide Pre-Workshop Call and Data Collection Conducting the Workshop Sample Deliverable



The IT Strategy Workshop will help create a prioritized action plan for the client

Workshop Goals- Understand client’s Infrastructure needs- Understand the proper IT provider

relationship for this client- Understand the Dynamic Infrastructure vision

and its applicability to the client’s organization

- Identify current state of the client towards building a Dynamic Infrastructure

- Develop a high-level vision to begin the journey towards a Dynamic Infrastructure.

- Build a prioritized action plan towards implementing that vision

Workshop Scope- A one day planning workshop - Joint high level review of the client’s

business plans, IT plans, IT infrastructure and services

- Develop a prioritized list of short and longer term activities for further analysis or implementation that will drive evolution into a Dynamic Infrastructure.

Overview- Facilitated by 2 executive consultants- Pre-workshop discussion to review scope,

roles and responsibilities- May include Dynamic Infrastructure

education

Client Deliverables- .pdf file containing analysis and includes

roadmaps for closing key gaps- .pdf file containing project descriptions

Feedback should be available to the client within 7-10 business days of the workshop

Description



Workshop Kit

Facilitator’s Guide Workshop Discussion Guide Pre-workshop Call Presentation Template Data Collection Template Workshop Presentation Template IT Provider Relationship Scoring Worksheet Workshop Sample Deliverable

deeper


IT Strategy WorkshopDiscussion Guide



Building a dynamic infrastructure…

….requires an integrated, holistic approach aligned with business strategies, initiatives and objectives.



Building a Dynamic Infrastructure is a journey…

…these interrelated initiatives can provide the DNA needed to thrive in a smarter planet.



Service Management

Asset Management

Virtualization and Consolidation

Information Infrastructure

Energy Efficiency

Security Business Resilience

StrategyRecognize Interdependencies

Tie to Business Strategy

Architecture and DesignStandards and Governance

Implementation and Maintenance

Three Phases of Building a Dynamic Infrastructure

Define or Refine an IT Strategy aligned with Business Strategies and Initiatives by

Examining Current & Desired Architectures, Standards and Governance

Implementing and Maintaining Processes

Business Initiatives



1. How does the business view IT?

2. Do IT initiatives align with the business’ strategy?

3. Where are you in each area and where are you headed?

4. Sanity check. Is this where you need to be?

5. Adjust desired future states to align business and IT.

6. Identify and prioritize gaps.

7. Build roadmaps and plans.

IT Strategy Workshop



IBM’s own smart transformation has delivered results

• IBM’s IT transformation continues: our own IT investments over the past 5 years have delivered a cumulative benefit yield of $4.1B

IBM IT Transformation

Cloud-enabled on demand IT delivery solution

• Self-service for 3,000 IBM researchers across 8 countries• Real time integration of information and business services

• The virtualized environment will use 80% less energy and 85% less floor space

• 2X existing capacity, no increase in consumption or impact by 2010

Project Big Green

• Consolidation and virtualization - thousands of servers onto approximately 30 IBM System z™ mainframes

• Additional virtualization leveraging System p, System x and storage across enterprise

• Substantial savings being achieved in multiple dimensions: energy, software and system management and support costs

Data Center Efficiencies Achieved

1997 Today

CIOs 128 1

Host data centers 155 7

Web hosting centers

80 5

Network 31 1

Applications 15,000 4,700



Who attends?

What is the IT Strategy Workshop?

How long?

What are objectives?

What are the outputs?

CIO and direct reports

IT architects and analysts

1 day workshop

plus some data gathering and final presentation

Define or refine IT strategy to ensure alignment with business strategies and initiatives

Identify and prioritize IT infrastructure gaps

Create roadmaps to close high priority gaps

Analysis on strategic alignment between IT and the business

Roadmaps towards closing high priority infrastructure gaps



1. Strategic Alignment Analysis• Select Business Initiatives• Determine IT Provider

Relationship with the Business

2. Current vs Target Gap Analysis for 14 IT Characteristics

• Where are you now?• Where do you need to be?• Conduct Gap Analysis

3. Prioritization• Prioritize gaps• Select gaps for building

roadmaps

4. Roadmaps• Create Roadmaps• Identify initiatives

for each gap

The IT Strategy WorkshopUses a Defined Methodology to Identify Strategic Business Alignment, Strategic Gaps, and Develop a Roadmap



Benefit as IT

Value Driver

The First Step in IT Transformation Understanding the Needs of the Business, and Aligning IT Actions to that Strategy

Cost as IT Value Driver

High

High Provider Relationship Model

Provider researches, recommends and implements technology to

enable quantum leap in business capability

Utility

Commodity

Provider works with others to develop a service and provide resources/skills

necessary to support the service

Provider of a quality service at a cost equal to or lower than the competition

Provider of an adequate service at a cost lower than the competition

Partner

Enabler



Financial ManagementFinance

Service Support Solution Deployment Service Delivery Service Automation Security & Compliance Management

Process

Site and FacilitiesEnvironment

IT Host Resources Unix Servers X86-based Servers Midrange Servers

Compute

IT Storage Resources Information Lifecycle Management (ILM)

Storage

IT Network ResourcesNetwork

Dom

ains

of

Cap

abili

tyIT Strategy Workshop Evaluates 14 IT Characteristics



Sample Agenda For IT Strategy Workshop

Discuss Client’s Current IT Environment and Future Directions

Dynamic Infrastructure Strategy Overview

Introduction to Dynamic Infrastructure Strategic Planning Assessment

Evaluate Strategic Alignment

Evaluate Current and Desired Technical Capabilities

Prioritize Gaps to Address

Plan Next Steps and Wrap-up



IT Strategy Workshop Process Flow…

Workshop prep

Explore

Workshop session and assessment review

IBM Business Partner develops report

Detailed roadmap development

IBM Business Partner presents report with

discussion

Client roadmap presentation

1

Client provides IBM Business Partner team with pre-workshop background materials

1 - 2 Weeks elapsed time 1 – 2 weeks 2 – 4 hours

2 3 4 5

IBM, IBM Business Partner and Client participants

Assessment

Post workshop Assessment Readout (2 hours)

6 Next Steps



Excerpts from Deliverable



Core workshop deliverables include the strategic alignment assessment results, customized roadmaps and project details.

Strategic Alignment Assessment: How does the business view IT? Do IT initiatives align with what the business needs from IT?

Summary Assessment : Current vs. desired future state assessment of IT capabilities.

Key observations and recommendations for each domain

Customized selected roadmaps: Based on client priority, showing projects by initiative and interdependencies.

List of candidate project descriptions: For entries in the roadmap that will incrementally advance IT capabilities towards the desired future state.

IT Strategy Workshop customized presentation, based on input from IBM Business Partner experts, includes:

S A M P L EBen

efi

t a

s I

T V

alu

e D

riv

er

Cost High


Provider researches, recommends and implements

technology to enable quantum leap in business capability

2 Utility

1 Commodity

Provider works with others to develop a service and provide resources/skills necessary to

support the service

Provider of a quality service at a cost equal to or lower than

the competition

Provider of an adequate service at a cost lower than the

competition

3 Partner

4 EnablerProjects Selected

Respondents Desired state

Priorities selected



Sample Deliverable: Current State of Dynamic InfrastructureInformation

InfrastructureVirtualization and

OptimizationFacilities and Data

CenterBusiness Resilience and

SecurityService Management

and Asset Management

Strategy Strategy document suggests IT’s intent to align with xClient’s objectives.

Provide failover redundancy and support data access

Incomplete strategy to optimally handle growth.

Recognized need for virtualization and optimization strategy.

Strategy in early stages of development; not yet documented.

Tactical reactive approaches substituted for strategy.

Undocumented, “best-effort” backup and recovery capabilities.

___________________________

Security strategy to balance risk versus expense. React to exposures as identified by audit processes.

No overall documented service management or asset management strategy.

Architecture and Design

Some documented standards but often ignored.

Multiple vendors, multiple SANs.

Early stages of defining data classes and retention/archival policies towards implementing limited ILM requirement.

Under consideration and development pending creation of strategy.

Early stages of some consolidation using blades.

Tactical approach to supplement xClient’s facilities with rented DC space.

Incomplete research for fact-based architecture and design alternatives.

Multiple sites, self designed and implemented failover for storage.

___________________________

Varied security architecture largely driven by individual vendor products’ security standards.

Some documented processes.

Some staff ITIL education.

Early stages defining services catalog.


3 sites with 2-way failover by application.

High information growth rates and indefinite retention demands contribute to facilities issues.

Some storage virtualization. All other areas awaiting completion of strategy, architecture and design.

Power, space and cooling issues severely compromise DC stability and effectiveness.

Impede ability to deploy and/or grow strategic applications.

Critical server failover exposure.

______________________________

3 sites with 2-way storage failover by application. Dependent servers lack failover or off-site failover capabilities.

Minimal process related security incidences.

Non-integrated tools do not cover many service management areas.

Opportunity to further exploit installed tools.

Resource challenges for failover & stress testing.

Usage statistics not collected.

Multiple manual Asset DBs.

Minimal to no progress Moderate or in-progress Significant progress to completion

Many infrastructure pillars are in early stages of formalizing strategy and architecture. Statistics-gathering processes and tools that support fact-based decision-making need improvement. Space, power and cooling constraints severely limit ability to grow or support new strategic applications.










Finance

Process

Environment

Network

Storage

Compute

Discrete Partial Integration

Enterprise Integration

Defined Value Net

Open Value Net

Scope of services

Assess current state Determine future stateIdentify required capabilities and initiatives

Develop roadmaps

xClient’ Business/IT Goals & Initiatives

Dom

ains

of C

apab

ility

Finance

Process

Environment

Network

Storage

Compute



Defined Value Net

Open Value Net

Scope of services


Develop roadmaps


Dom

ains

of C

apab

ility

S A M P L E



Core workshop deliverables include the assessment results, customized roadmaps and project details.


Storage Resources- Determine storage migration’s relative importance in light of other IT

projects and allocate additional resources as necessary.

- Investigate the use of storage virtualization as an optimizing enabler for enterprise shared storage model

- Implement a tiered storage architecture across the enterprise using appropriately defined technologies at each tier, i.e., SAN, NAS,Virtual Tape, etc.

- Implement an Information Lifecycle Management architecture to optimize existing storage usage and decrease storage costs.

ILM- Leverage techniques and skills gained from individual accounts’

ILM implementations across all of xClient.

- Continue data tiering analysis.

- Investigate appropriate tools and architectures to support ILM standards, policies and processes across all of xClient.

- Establish governance processes to ensure adherence to ILM standards policies and processes.

Networking- Complete migration to xClient's Internal IT network

- Assess xClient's Internal IT network security architecture and implementations to ensure xClient customers’ network security requirements can be met.

Compute

Storage Resources-Standardization on xVendor storage is resulting in a large storage migration project. This project is proceeding slowly due to resource constraints.

-No storage virtualization in use

ILM-xClient IT provides and supports ILM only for selected customers and otherwise has no overall ILM strategy .

-Rather than customers selecting data tiers from a standard set of definitions with minimal customization, each ILM contract customer defines data tiers unique for their organization.

-Current work underway to examine like groups of contract terms for defining common cross-organization data tiers.

Networking-Project underway to migrate xClient network infrastructure to existing xClient's Internal IT network

RecommendationsObservation













Compute








S A M P L E






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IT Strategy Facilitator’s GuideExcerpts

Louise Hemond-Wilson



Steps in the Workshop Facilitator’s Guide

1. COORDINATION OF THE DELIVERY TEAM: The delivery resources need to contact each other to determine who carries the lead/ownership for which portion of preparing and conducting the workshop. This is a needed step to ensure equitable division of labor. Major task areas needing ownership are:- Arranging the call with the IBM or IBM Business Partner sponsor.- Preparing the pre-workshop .ppt file, distributing to the client, ensuring the call gets

scheduled by the account team.- Leading the pre-workshop call discussion with the client.- Interacting with the client for logistical details and obtaining pre-workshop materials.- Preparing the workshop tool, the workshop .ppt file and the CUPE .xls spreadsheet.- Scheduling the immediate pre-workshop meeting for the delivery team and the account

team.- Leading different portions of the workshop.- Owning the creation of the .ppt Final deliverable, the creation of roadmaps and the

creation of the project document.- Scheduling the final presentation walkthrough with the account team.- Scheduling the final presentation with the client.- Sending materials to the account team and the client.- Posting the deliverable in the team room.



Steps in the Workshop Facilitator’s Guide continued

2. CALL WITH THE IBM OR IBM BUSINESS PARTNER SPONSOR: Upon the customer committing to an IT Strategy Workshop and being assigned as a deliver resource team, schedule a quick 15-30 minute call with the IBM or IBM Business Partner sponsor. This discussion does not have a set of .ppt slides. During this call the delivery team will review with the IBM or IBM Business Partner Sponsor:- General workshop process.- The sales team’s role to attend but primarily listen at the workshop. Explain the

importance of the workshop delivery team helping the sales team most by distancing themselves from the direct selling efforts as that would undermine credibility of the workshop delivery team and weaken the respect afforded to their recommendations.

- Explain the sales team’s role in the follow-up process and the documents they should expect to receive from you following the workshop (.PDF of the project and final reports).

- Set expectations for any pre-workshop meeting with the account team and workshop delivery team either the evening before the workshop or the morning of the workshop.

- Probe the sponsor for additional background information regarding the client.- Answer any questions the sponsor may have about the workshop.- Ask the IBM or IBM Business Partner sponsor to arrange a 30-60 minute pre-workshop

conference call with the client sponsoring executive. The IBM or IBM Business Partner sponsor should participate in the call as well.




3. PRE-WORKSHOP CALL WITH THE CLIENT: This call has a .ppt file. The template for this call is contained in the workshop kit. After modifying the .ppt for the specific client, generate a .pdf file and send to the client sponsoring executive and IBM or IBM Business Partner sponsor prior to the call. During this call you will:

- Review the workshop flow.- Discuss logistics.- Discuss key participants and their roles including informing the client of the account team’s role to

primarily listen.- Discuss the supplied parameters and pre-workshop data collection document that the client needs to

provide to the delivery team at least 1 week prior to the workshop.

4. PREPARE THE WORKSHOP MATERIALS:- After receiving the pre-workshop information from the client customize the workshop .ppt and preload

the workshop tool with their information and initiative selections.- Setup the CUPE file.

5. PRE-WORKSHOP TEAM MEETING: Typically the workshop delivery team and the account team meet either the night before the workshop or the morning before the workshop. This meeting allows the following:

- Another review for the account team of the workshop day agenda and expected flow.- Reminder to the account team of their role to attend but primarily listen as well as to follow up.- The delivery team ensures that multiple people have copies of the workshop materials (workshop tool

with client information, workshop .ppt and CUPE .xls) and determines who will lead which part of the workshop, who will complete the CUPE, who takes notes, etc…




6. WORKSHOP: At the conclusion of the workshop query the client for potential dates for the final presentation. Schedule that now if possible or as soon after the workshop as possible.

7. IMMEDIATELY POST-WORKSHOP: Immediately following the workshop or the next day, the workshop delivery team assembles in-person to complete key parts of the analysis and observations. Typically this is the scorecard, the CUPE graph, the Observations and Recommendations at a minimum. Someone should be assigned as owning creating the following parts of the deliverable:- The Final presentation .ppt- The roadmaps (to be incorporated into the Final .ppt)- The project descriptions .ppt. This is typically delivered to the client as a separate

document since it is often quite large.

8. POST-WORKSHOP: Typically the delivery team uses Sametime Screen Sharing or NetMeeting to work collaboratively on creating the Final .ppt. The team member who owns creation of the Final presentation should schedule time for the team to work together. This is best done as quickly as possible after a workshop. However, due to calendar coordination for the client, presentation of the final deliverable might not occur for weeks or even a month.



Steps in the Workshop Facilitator’s Guide

9. PRE-FINAL REVIEW WITH THE ACCOUNT TEAM: Prior to conducting the final review with the customer, schedule time with the account team to review the deliverable. The purpose of this call is to:- Make the account team aware of what will be said.- Listen to their perspective on how the message will be received or learn of any

matters to take into consideration in the analysis.- Translate the generic next step and project descriptions into viable IBM or IBM

Business Partner services or products that the account team might use in their discussions with the client.

10.FINAL PRESENTATION WITH THE CLIENT: Conduct the final presentation with the client. Capture appropriate client and account team feedback. Send the client .PDF versions of the FINAL and PROJECT files prior to the conference call.

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IT Strategy pre-Workshop Call

Louise Hemond-Wilson: [email protected]



Agenda

IT Strategy Workshop Technique – overview

Workshop Delivery Approach, Agenda, and Deliverables

Confirm Workshop Objective, Parameters, Scope, and Participants

Next Steps



Service Management

Asset Management



Energy Efficiency


















roadmaps


for each gap




The first step in IT transformation must be understanding the needs of the business , and aligning IT actions to that strategy

Benefit as IT Value Driver


High




Utility

Commodity





Partner

Enabler





Process



Compute


Storage


Dom

ains

of

Cap

abili




The IT Strategy Workshop Adoption Model

Defined Value Net

Open Value Net

Partial Integration


Discrete

Scope of Services

Do

mai

ns

of

Cap

abili

ty

Dedicated to: LOB

or Application

Siloed or

Geographic Location Oriented

Connected (linked)

butnot

Integrated across the

Entire Enterprise.

Horizontal and

Vertical Integration

Optimization across the

Entire Enterprise

Sharingand

Integration with

Value Net Partners

Based on Pre-

established Agreements

Sharing and Integration

withValue NetPartnersBased on

Dynamically and Automatically Established Agreements

…..The Scope of Services

Finance

Process

Environment

Network

Storage

Compute


Dynamic InfrastructureDuring the workshop the team assesses each of the characteristic sets based on their knowledge of current and desired target state.



IT Strategy Workshop creates client-specific IT roadmapsA IT Strategy Workshop is used to identify current states and desired target states of xClient’s IT infrastructure capabilities, based on their enterprise business and IT goals and initiatives.

Finance

Process

Environment

Network

Storage

Compute



Defined Value Net

Open Value Net

Scope of services


Develop roadmaps

xClient’s Business/IT Goals & Initiatives

Do

ma

ins

of

Cap

ab

ilit

y



Agenda



Confirm IT Strategy Workshop Objective, Parameters, Scope, and

Participants

Next Steps



IT Strategy Workshop Process Flow…

Workshop prep

Explore

Workshop session and assessment review

IBM Business Partner develops report

Detailed roadmap development

IBM Business Partner presents report with

discussion

Client roadmap presentation

1

Client provides IBM Business Partner team with pre-workshop background materials

1 - 2 Weeks elapsed time 1 – 2 weeks 2 – 4 hours

2 3 4 5

IBM, IBM Business Partner and Client participants

Assessment

Post workshop Assessment Readout (2 hours)

6 Next Steps



Agenda for IT Strategy Workshop

Workshop Topic

Welcome, Introductions, Objectives, Agenda

xClient presentation on current IT environment and future directions

Dynamic Infrastructure and IT Strategy Workshop overview

Break

Evaluate strategic alignment and define business initiatives

Lunch

Evaluate current and desired technical capabilities

Prioritize initiatives

Plan next steps and wrap-up










S A M P L EBen

efi

t a

s I

T V

alu

e D

riv

er

Cost High




2 Utility

1 Commodity

Provider works with others to develop a service and provide resources/skills necessary to

support the service

Provider of a quality service at a cost equal to or lower than

the competition

Provider of an adequate service at a cost lower than the

competition

3 Partner

4 EnablerProjects Selected

Respondents Desired state

Priorities selected










S A M P L E

Finance

Process

Environment

Network

Storage

Compute



Defined Value Net

Open Value Net

Scope of services


Develop roadmaps


Dom

ains

of C

apab

ility

Finance

Process

Environment

Network

Storage

Compute



Defined Value Net

Open Value Net

Scope of services


Develop roadmaps


Dom

ains

of C

apab

ility






















Compute




















Compute








S A M P L E






Participants

Next Steps

Agenda



Workshop objectives:

xClient’s Objectives:

Update objectives.



Workshop Parameters: Timeframe, Scope, Partners, Priority and Effort Definitions.

Define the timeframe for the assessment example: A 3, 4 or 5 year time span or adoption timeline

Define the scope: The workshop scope was focused on the following areas of the business/IT:

Partners were defined as:

Document workshop parameters.



The following enterprise business and IT initiatives were established:

Simplify to reduce costs Reduce IT Acquisition Cost Improve efficiency to reduce IT costs React to data center facility

constraints Improve IT Reliability Improve quality of service Increase Customer Loyalty

Establish a pro-active energy efficiency strategy

Increase IT Flexibility Measure IT value to the business Ensure regulatory compliance Develop New Services Support Emerging Markets Improve Market Responsiveness

xClient’s Business and IT Initiatives

Select initiatives.



Ensuring success is largely dependant on strong participation.

IBM Business Partner Team Members

Workshop Facilitator Workshop Scribe(s) Key Account Team Members (Client

Exec, Client IT Architect, Software, etc) Subject Matter Experts (where needed)

Recommended xClient Team

Executive Sponsor IT Management Leaders and Architects Business Unit IT Leaders Project Managers IT Providers/Outsourcer (where applicable)

Prior to the workshop, please complete the two-paged pre-workshop data collection questionnaire in the appendix to help us gain a current viewpoint of your environment. The document requests information on:

- Prioritized business / IT goals and initiatives- Count of servers, networks and Data Centers- Key Applications- Key DBs- Key systems management tools- SLAs- Current IT Optimization techniques and products- Major Data Center projects

Are there any other materials that would benefit the workshop team for review prior to the workshop?



Agenda




Participants

Next Steps



Review open items for today’s meeting

Item Owner Completed

Confirm that sponsor will be prepared to "kick off" the workshop with a 60 minute discussion on their current environment, issues/pains, goals for transformation, and why his/her team is engaged in this workshop.

Verify logistics (dates, locations, draft agenda, communication, catering, equipment, room setup, etc…)

Set target date for completing data collection questionnaire

Verify participants



1

2

Next Steps

To proceed, the following activities are suggested:

Verify Workshop Participant Availability

Verify Workshop Location Logistics- Room Arrangement- Workshop Date- Projector

Perform the IT Strategy Workshop Together!

Execute next steps with xClient

3

4

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Appendix:Data Collection Questionnaire

To be completed and returned to your

IBM Business Partner

one week prior to the workshop.



Pre-Workshop Data Gathering

Please complete the following:

Client Background Client Name:

Client Sponsorship CIO Name

Workshop Sponsor Name

Workshop Sponsor Title

Sponsor reporting chain to CIO

Sponsor reporting chain to CEO

Provide executive IT organization chart if available

Client IT IT Total employees (all of IT)

IT Locations (total)

Central (Data center) Locations

Describe significant outsourcing or out-tasking relationships

Client Hardware Infrastructure

Primary Intel Suppliers / count of servers

Primary Unix Suppliers / count of servers

Primary MF Suppliers / MIPS / count of servers

Storage Suppliers / Usable capacity in TB

Current Optimization Techniques, e.g., virtualization

IT Optimization products, e.g., VMWare

Client Network Infrastructure

Number of discrete networks

What techniques do you use to manage networks?

What network optimization techniques do you use? e.g., compression, TCP termination, caching

Client Software Infrastructure

Key DBs installed

Key System Management products

Client Applications Key applications

Packaged, Custom, combination

Schedule When do you want to conduct this workshop?

Projected Timeframe Within how many years do you want to see changes?



Pre-Workshop Data Gathering continued

Please complete the following:

Prioritized Business / IT Goals and Initiatives

Please select 5 initiatives from the list below that most represent your top Business / IT Goals and Initiatives

_____ Simplify to reduce costs

_____ Reduce IT Acquisition Cost

_____ Improve efficiency to reduce IT costs

_____ React to data center facility constraints

_____ Improve IT Reliability

_____ Improve quality of service

_____ Increase Customer Loyalty

_____ Establish a pro-active energy efficiency strategy

_____ Increase IT Flexibility

_____ Measure IT value to the business

_____ Ensure regulatory compliance

_____ Develop New Services

_____ Support Emerging Markets

_____ Improve Market Responsiveness

SLAs and Service Management

What types of SLAs are in place?

Are you meeting your SLAs in all areas?

Please describe any problem area SLAs?

Has the client implemented or considered a shared services model?

Data Center Strategy Are you planning any major data center consolidation, construction or renovation projects?

Do you have space, power, cooling or airflow constraints?

Workshop Participants and Titles

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Workshop Topic




Break


Lunch






Workshop Participants

xClient Project Leader Project Leader Executive Sponsor

IBM Business Partner Jane Doe, Exec. IT

Consultant John Doe, Sr. Consultant



Introductions

Name and title Job responsibility and area Organization or Line of Business Length of experience and/or depth of

knowledge within the organization What you would like to get out of this

workshop 1 minute maximum!



Ground Rules for the Workshop

Stay with the session and stay focused please- NO: e-mail, chat/IM, cell phones, blackberry’s, pagers- Set phones & pagers on vibrate and step out for emergency calls- Please – no laptop connectivity - between breaks only

Participate and make your views heard- Ask questions. Make sure the material is clear to you- All points of view are valued- All questions are valid- Do not reject any idea until it is time for evaluation and selection- Philosophical discussions are for lunch and breaks- Parking lot for items of discussion that consume time- One conversation at a time- Try and have some fun



From prior interviews, the following workshop objectives were established for xClient:




Workshop Topic




Break


Lunch






Discussion on xClient Current IT environment and future directions

What are the key objectives for the IT department at xClient over the next few years?

What are the drivers behind those objectives? What major IT projects are planned?

Discussion about the data provided before the workshop.




Workshop Topic




Break


Lunch






Service Management

Asset Management



Energy Efficiency


















roadmaps


for each gap




The first step in IT transformation must be understanding the needs of the business , and aligning IT actions to that strategy



High




Utility

Commodity





Partner

Enabler





Process



Compute


Storage


Dom

ains

of

Cap

abili





Defined Value Net

Open Value Net

Partial Integration


Discrete

Scope of Services

Do

mai

ns

of

Cap

abili

ty

Dedicated to: LOB

or Application

Siloed or


Connected (linked)

butnot


Entire Enterprise.

Horizontal and



Entire Enterprise

Sharingand

Integration with

Value Net Partners

Based on Pre-






Finance

Process

Environment

Network

Storage

Compute


Dynamic InfrastructureDuring the workshop the team assesses each of the characteristic sets based on the customer’s input of current and desired target state.




Workshop Topic




Break


Lunch






Discussion about the business / IT relationship at xClient

How would you describe the relationship between the business units and IT?

How does the business request services from IT? How important is the cost of a project vs the need to develop a solution

that provides leading capability in your industry?



The first step in any IT transformation must be understanding the needs of the business , and aligning IT actions to that strategy



High




Utility

Commodity





Partner

Enabler



Conducting the CUPE Survey

CUPE is assessed via 10 multiple-choice questions Each question will be answered individually by each of the workshop

participants. Each participant should write their answers on a blank sheet of paper next to the question number – e.g.:- Q1 B- Q2 C- Q3 A etc.

Answer sheets will be collected at the end of the survey, and the answers averaged for each question, to obtain a collective “score” for each question



Q1 – Customer satisfaction measurement is:

a) Less important than achieving cost targets

b) Focused on automating activities with increased productivity and/or decrease in product cycle time

c) Measured by the customer satisfaction of the business products or services

d) Measured by the ability of IT to provide a strategic competitive advantage in the overall goals and initiatives of the business



Q2 – The corporate view of IT is:

a) A provider of technical services

b) A facilitator for organizational efficiency

c) A strategic alignment with the business goals and objectives of the enterprise

d) A critical enabler of the corporate vision



Q3 – The enterprise approach toward the IT organization is:

a) As an expense center

b) As a service center

c) As a profit contributor

d) As a variable cost, on demand value center



Q4 – IT services and solutions are provided to the business at the lowest feasible cost:

a) With minimal consideration for value add

b) With equal consideration for quality of service

c) With significant value add services

d) With the ability to enable business strategies on demand at variable cost



Q5 – The IT organization’s approach to new technologies is:

a) Extremely cautious, rarely implements leading edge technology

b) Very cautious, must conform to a confirmed industry best practice

c) Cautious, but willing to consider new technologies with a high probably of success

d) Aggressive, willing to experiment with new technologies which can potentially provide a competitive advantage



Q6 – The projects within the IT plan are:

a) Focused primarily on business automation (cost reduction) initiatives, with some projects addressing service quality

b) Balanced between automation and service quality improvements, with some resources directed towards enhanced capability

c) Focused on service quality improvement, enhanced capabilities, with some projects focused on automation

d) Focused primarily on enhanced capabilities and service quality improvements, with significant resources directed towards a few ‘big plays’ exploring advanced technologies



Q7 – The IT organization’s attitude toward risk is:

a) Extremely risk averse

b) Risk averse

c) Willing to accept some risk if the potential return is large enough

d) Embraces risk as a means to gain competitive advantage



Q8 – The IT Services are:

a) Primarily focused on applications to improve productivity of administrative functions, and are reactive, with the business demanding services from IT

b) Primarily focused on productivity enhancements, but IT has a moderate understanding of customer requirements. There is an awareness of customer satisfaction.

c) A balance of business driven projects that are enabled by IT and are visible to customers of the enterprise, with internal productivity services

d) A mixture of externally-visible services, services for gaining significant competitive advantage and internal productivity initiatives.



Q9 – The IT Services that are provided to the business:

a) Are standard, basic IT services that will “keep the lights on”, with nothing unique

b) Enable the IT services expected by most organizations within the same industry

c) Will provide standardized IT processes and architectures that are relevant to the industry, with a few initiatives which are there to provide competitive advantage

d) Are directly aimed at enabling the organization to provide competitive advantage based on the usage of IT



Q10 – This enterprise is:

a) Not aware of how their competitors use technology

b) Is aware of their competitors use technology, but does not react based on that knowledge

c) Watches closely their competitors uses technology, and responds when necessary

d) Attempts to anticipate their competitors will use technology, and develops alternative strategies



Participant votes will be scored by this simple template to determine an organization’s CUPE score

The score indicates the nature of the business / IT relationship, and the importance of cost vs business benefit in the IT purchasing process

The score will be shared with xClient after it has been calculated.



The Purpose of the IT / Customer Relationship Profile

Indicates overall attitude towards the IT function within an organization Illustrates general characteristics of IT within a company No profile is “Right” or “Wrong” Profile provides a view against which to consider alignment of IT

activities. For example:- A Commodity profile IT provider is unlikely to consider solutions that are

considered leading edge, or require an enterprise wide investment and standardization

- A Partner or Enabler profile IT provider will be looking for solutions that provide the business with flexible, innovative IT solutions, and is more likely to consider leading edge technologies

IT architectural recommendations should be made in the light of this view



Commodity Profile

Focused primarily on using IT to automate administrative functions at the lowest possible cost

Primary characteristics (These objectives are pursued even at the expense of customer satisfaction, functionality, and performance)

- Cost control- Achieving economies of scale wherever possible

Leader normally does not report to the President or Chief Executive Officer of the enterprise

Technical innovation will be almost non-existent, because of the risk / cost involved.



Utility Profile

Cost is still a major factor, but:- Recognition of, and concern for customer satisfaction- More of a customer focus, especially in key areas such as Help Desk- Consideration of customer requirements in the selection of IT projects- Cost remains a large issue

Business is beginning to relate IT services to business value. If IT organization does not respond adequately, the business units could

develop IT services on their own causing unofficial IT islands Might have generalized customer satisfaction surveys Head of IT will probably report to a higher level within the business

structure



Partner Profile

Business retains some control through participation in setting corporate technical standards and policies.

Enterprise wide IT organization focused on effective and efficient use of technology but with a clear vision / mission to support the business units in achieving business objectives.

Cost is still a consideration- Focus is not on the cost- Focus is on business benefit derived from an investment in IT.

Assign advocates to each major business unit. Each business unit has a liaison to IT.

Business unit executives participate in key IT decisions and strategies IT participates in business strategy and planning Customer satisfaction is a critical IT measurements IT receives greater recognition within the enterprise. IT leader will be at a peer

level with other business unit leaders.



Enabler Profile

Cost, remains a consideration IT initiatives are included as part of an overall business initiative. IT costs are tracked, but for the purpose of evaluating the success of the

overall business initiative. IT initiatives are critical elements of the business strategy, and are looked

at as key differentiators supplying a competitive advantage. The CIO is a senior executive within the enterprise, wielding significant

influence and control. The President and/or CEO is quite often a technologist, as well.

Control is achieved through the use of standardized processes. - Understand the significance to the enterprise of adhering to IT processes- IT understand their role and authority to deviate from process as business

situations warrant.



The following enterprise business and IT initiatives were established:

xClient’s Business and IT Initiatives



Mapping of template business initiatives to CUPE

Simplify to reduce costs C

Reduce IT Acquisition Cost C

Improve efficiency to reduce IT costs C

React to data center facility constraints U

Improve IT Reliability U

Improve quality of service U

Increase Customer Loyalty P

Establish a pro-active energy efficiency strategy P

Increase IT Flexibility P

Measure IT value to the business P

Ensure regulatory compliance P

Develop New Services E

Support Emerging Markets E

Improve Market Responsiveness EAverage = Calculate average




Workshop Topic




Break


Lunch






Workshop Parameters: Timeframe, Scope, Partners, Priority and Effort Definitions.

Define the timeframe for the assessment- 1 year??

Define the scope:- The workshop scope was focused on the following areas of the business/IT: xClient ’ 2

main data center locations



QuestionsDiscussionsWhat happens next?Thank-you!

deeper


IT Strategy WorkshopxClient Report




Agenda

Dynamic Infrastructure Overview Objective, Scope and Parameters Assessment Results

- CUPE- Assessment Roadmap Tool

Observations & Recommendations Selected Roadmaps Conclusion and Next Steps Appendices

- Detailed Assessment Results- Project Details



Service Management

Asset Management



Energy Efficiency


















roadmaps


for each gap






Process



Compute


Storage


Dom

ains

of

Cap

abili





Defined Value Net

Open Value Net

Partial Integration


Discrete

Scope of Services

Do

mai

ns

of

Cap

abili

ty

Dedicated to: LOB

or Application

Siloed or


Connected (linked)

butnot


Entire Enterprise.

Horizontal and



Entire Enterprise

Sharingand

Integration with

Value Net Partners

Based on Pre-






Finance

Process

Environment

Network

Storage

Compute


Dynamic InfrastructureDuring the workshop the team assesses each of the characteristic sets based on the customer’s input of current and desired target state.




Clarify IT goals based upon business and IT strategy Facilitates long-term planning for infrastructure transformation Links IT transformation to Business Requirements Allows you to capitalize on IBM’s expertise

A roadmap helps you understand where

you are and where you need to go…

It provides an IT transformation blueprint

fully customized to your business needs

The outcome: a roadmap



Agenda







The IT Strategy Workshop team consisted of xClient and IBM Business Partner participants. The IT Strategy Workshop was conducted on MM-DD-YY in <location>. The participants were as follows:

xClient Participants:

IBM Business Partner Client Team Participants:

IT Strategy Workshop Facilitators:



IT Initiatives were selected by xClient as objectives for the next 2 years

The scope of the assessment was the enterprise-wide IT environment, but focused on the Data Centers at xClient and DC2.

The period of planning was 2 years

Simplify to reduce costs Improve quality of service Increase IT Flexibility

Measure IT value to the business Improve IT Reliability and

Availability

xClient IT Initiatives



xClient provided information about their current environment prior to the workshop

DRAWING REMOVED



Agenda







The CUPE Survey indicates the client’s IT organization’s impression of the relationship the business needs with IT

This client’s score of 2.7 indicates the current state IT provider relationship approaching “Partner”. Therefore there would be certain behaviors expected.

Person 1 Person 2 Person 3 Person 4Total

ATotal

BTotal

CTotal

DTotal Ans

Av. Score

Q1 d b d b 0 2 0 2 4 3.0Q2 c d b b 0 2 1 1 4 2.8Q3 b c b b 0 3 1 0 4 2.3Q4 c b b b 0 3 1 0 4 2.3Q5 b d d c 0 1 1 2 4 3.3Q6 b c b b 0 3 1 0 4 2.3Q7 c c c c 0 0 4 0 4 3.0Q8 c b c b 0 2 2 0 4 2.5Q9 d c c b 0 1 2 1 4 3.0Q10 d c a c 1 0 2 1 4 2.8

Total A 0 0 1 0 2.7Total B 3 3 4 7Total C 4 5 3 3Total D 3 2 2 0Total Ans. 10 10 10 10Av. Score 3.0 2.9 2.6 2.3

CUPE Score

CUPE Survey Results



The Business needs IT to be in a “Partner” relationship

Benefit as IT

Value Driver


High








2 Utility

1 Commodity

3 Partner

4 EnablerParticipants’ impression of current IT state: 2.7


Dynamic InfrastructureThe CUPE responses for Person 1 & 2 were very consistent, but the responses for Person 3 & 4 (the 2 most senior people in the workshop) showed significant variation)

3%

42%

37%

18%

Total A Responses (Commodity)

Total B Responses (Utility)

Total C Responses (Partner)

Total D Responses (Enabler)

Total Responses

0%30%

40%

30%

Total A Responses(Commodity)




0%30%

50%

20%Total A Responses(Commodity)




Person 1 Person 2

10%

40%30%

20% Total A Responses(Commodity)




0%

70%

30%

0%

Total A Responses (Commodity)




Person 3 Person 4

Person 3’s responses indicate a wide spread across the 4 profiles, but Person 4’s responses are primarily in the Utility profile.



The CUPE analysis of selected IT Initiatives indicates this IT organization is working towards a “Utility” relationship

This indicates misalignment between the “Partner” IT provider relationship the business desires and the direction the IT organization is heading

Simplify to reduce costs C

Reduce IT Acquisition Cost C

Improve efficiency to reduce IT costs C

React to data center facility constraints U

Improve IT Reliability U

Improve quality of service U

Increase Customer Loyalty P

Establish a pro-active energy efficiency strategy P

Increase IT Flexibility P

Measure IT value to the business P

Ensure regulatory compliance P

Develop New Services E

Support Emerging Markets E

Improve Market Responsiveness E

IT Initiative CUPE Score:2.0

CUPE Analysis of Selected IT Initiatives



Participants’ impression of current IT state: 2.7

Benefit as IT

Value Driver


High








2 Utility

1 Commodity

3 Partner

4 Enabler

Selected initiatives: 2.0

The Business’ Desired “Partner” Relationship with IT Is Not Supported By IT’s Top Initiatives. IT is Focused on Delivering at a “Utility” Level



Finance

Process

Environment

Network

Storage

Compute

DiscretePartial

IntegrationEnterprise Integration

Partner Collaboration

Dynamic Partner

Collaboration

Scope of services

Summary Infrastructure Gap Analysis


Develop roadmaps


Dynamic InfrastructureThe chart of Current & Target states for each Characteristic shows that there is a recognized need for improvement in most areas, except IT Finance and Information Lifecycle Management

0

0.5

1

1.5

2

2.5

3

04. Financial Management

01. Service Support

02. Solution Deployment

03. Service Delivery

05. Security & Compliance Management

07. Service Automation

05. Site and Facilities

04. IT Network Resources

03. IT Storage Resources

06. Information Lifecycle Management (ILM)

02. IT Distributed Resources"02. x86-based Servers"

02. IT Distributed Resources"03. Midrange Servers"

Target Current



Characteristics

1.Simplify to reduce costs

(Commodity)

2. React to DC Facility Constraints

(Utility)

3. Improve IT Reliability

(Utility)

4. Improve Quality of Service (Utility)

5. Increase IT Flexibility (Partner)

Mainframe Servers √ √ √

x86 Servers √ √ √ √ √

Storage Resources √ √ √ √ √

ILM

Network √ √ √

Site and Facilities √ √

Service Support √ √

Solution Deploy. √ √

Service Delivery √ √

Finance

Security & Comp. √ √

Service Auto. √ √ √ √

During the workshop, the client relates closing each gap to selected IT initiatives

Based upon CUPE analysis, we would expect to see “Partner” oriented initiatives well-covered by closing identified gaps

In this case, the client had weak coverage of initiatives supporting the desired behavior

Closing IT Infrastructure GapsImpact Analysis on IT Initiatives



xClient - Impact on IT Initiatives for Selected Characteristics

Characteristics

1.Simplify to reduce costs

(Commodity)

2. React to DC Facility Constraints

(Utility)

3. Improve IT Reliability

(Utility)

4. Improve Quality of Service (Utility)

5. Increase IT Flexibility (Partner)

Mainframe Servers √ √ √

x86 Servers √ √ √ √ √

Storage Resources √ √ √ √ √

Sites and Facilities √ √

The selected gaps which the client desired Roadmaps towards closing heavily supported Utility-oriented initiatives

Two of the gaps support the one “Partner” initiative with a somewhat weak connection

Selected RoadmapCUPE Score: 2.0



Selected Roadmaps for Closing Gaps and Selected Initiatives Strongly Indicate “Utility” Behavior from IT

Participants’ impression of current IT state: 2.7

Benefit as IT

Value Driver


High








2 Utility

1 Commodity

3 Partner

4 Enabler

Selected initiatives: 2.0

Selected Roadmaps: 2.0



Service Management

Asset Management



Energy Efficiency














Virtualization and Optimization

Facilities and Data Center

Business Resilience and Security

Service Management and Asset

Management

Strategy Dynamic Infrastructure (Comprehensive Strategy tied to Business Initiatives)

React to pains and new market opportunities primarily driven by current market conditions

No strategy Strong Attention Strong Attention Moderate Attention Very Weak Attention

Architecture and Design

<key application> as Finance / Supply Chain Corporate Standard

Some network standardization

Weak security, mail, file serving, etc standards

SAN, direct attached and internal storage

Focus is on iSeries, Intel and Storage. However there are inadequate documented standards and architectures

2 main data centers. Program in progress to upgrade DC2

Known risk of proximity of HA/DR site to Production site

Security standards are set but are platform specific and not consistent between platforms. No plans for DR other than iSeries.

No system management or system services standards


Clarion and internal

Focus is primarily on iSeries. There is limited knowledge of Intel platform, and plans are limited to physical consolidation

Single point of failure exposures with current environment

Platform specific and inconsistent by platform.

No plans to implement beyond <key application> platform support

Ex

ecu

tio

n P

has

es

xClient IT objectives are to be nimble and quick to respond; Heavy reliance on tribal knowledge is an exposure; due to size and current business conditions the ramifications of weak strategy and architecture have not yet surfaced.

Minimal to no progress Moderate or in-progress Significant progress to completion

Based on the Assessment from the OrganizationIt is likely that Service Management is out of balance and should receive additional attention. Service Management ties very closely to Partner behavior.



Agenda







Overall observations and recommendations (1 of 4)

Observation Recommendations

Business/IT Alignment CUPE indicators of strategy do not align with prioritized projects <key application> as top initiative is primarily focused on automating

internal administrative functions which indicates a “Commodity” profile. Selected projects are very hardware focused. Selected focus characteristics did not include some of the projects

which had higher priority than effort. Towards becoming an Dynamic Infrastructure, some pillars of IT

infrastructure and Data Center services were ignored or weakly addressed.

Decide whether to adjust projects to align with strategy (ie include projects focused on measuring IT value) or re-set IT initiatives to align with projects.

The roadmaps developed by the IT Strategy Workshop are focused on the Infrastructure areas that are related to the IT projects that are currently being planned. xClient should review the planned projects to ensure that they are sufficiently holistic, and embrace all areas of the IT environment.

Intel Servers While there are plans to do physical consolidation and virtualization for

the Intel servers and storage, it is not clear what plans exist to optimize the platform through application or image consolidation, or data management

There are no DR plans for the Intel platform applications

Undertake an IT Optimization study for Intel servers and storage to identify opportunities of data and application consolidation

Review the Intel platform applications to determine what DR plans maybe required

Mid-range (iSeries) Servers xClient have identified areas where a plan is required for the iSeries

servers, including workload balancing between the proposed DCs, and sizing for the DR requirements. However, these requirements have not been translated into a plan, or sized, or documented.

Architectural plans are required for the workload balancing on iSeries across the 2 DCs. Sizing and architecture for DR is also required, as xClient stated that they wanted to run an Active/Active configuration with restore for DR and a 100% capability in the event of a disaster, and a recovery target of 1 day.





Storage There is a recognition of the benefits of storage virtualization, but there is

no plan or architecture of the scope (which servers/applications) and sizing across the DCs. The implications of DR on storage have not yet been explored.

There is an open question as to whether the SAN could/should be used for the iSeries servers.

Obtain education on the various storage technologies including SAN and NAS, and iSeries storage.

Develop a strategy and plan for storage virtualization, considering:- Whether to use NAS or SAN for different applications, such

as file serving, <key application>, other business applications, etc

- DR for both iSeries and Intel

Information Lifecycle Management There is a basic ILM plan related to <key application>, based on the need

to retain financial records, but this is not documented. There does not appear to be a consistent standard for ILM on the Intel

servers, other than a capped mail file size for the domino servers

Obtain ILM education In support of the priority placed on the IT Storage project, we highly

recommend that xClient develop an ILM plan. It will be difficult to move to “Enterprise” level storage management without an ILM plan.

IT Network Resources There are several initiatives in place to replace the V-Sat connections with

a VPN cloud, with 2 providers It is unclear whether there is redundancy in the last mile connection, and

how the Network management is handled (tools and processes) There is no redundancy in the VPN connection for DC2. This will become

important in the case that DC2 site is activated for DR.

Continue with the VPN implementation If there is no redundancy in the last mile connection, consider

developing a strategy In order to support high availability of the business applications

(including <key application>), develop a strategy for Network Management tools and processes

Implement a second line from the VPN cloud to DC2





Site & Facilities The DC facilities are being upgraded to meet the forecast space, cooling

and power requirements However, the DCs are approx 20 km apart, in a region that has had many

recent natural disasters, including flooding, earthquakes and a tsunami. One of the DCs is at a sea-port.

In support of the goal to become a Partner profile, xClient should undertake an impact analysis to determine how a natural disaster affecting both DCS would affect xClient business.

A strategy should be created for the DCs based on the impact analysis

Service Management There is little understanding of IT service management and its capabilities. Initiatives related to improving service management and the IT service

relationship (moving towards achieving a Partner provider level) were prioritized low and then de-selected during the workshop.

There are Service Desk, Change and Release Management, and Service Level objectives for <key application>.

However, there is no Service Desk, or other formalized Service Management processes for non-<key application> IT services.

There is no interface or relationship between event management and the Service Desk or Incident management.

Development of a Service Management framework is essential for achieving a Partner provider relationship

Become educated on IT Service Management frameworks to understand where they may be applicable in xClient environment.

Establish a program to implement a Service Management framework

Service Automation While there is a desire to move to virtualization and service automation in

servers and storage for both iSeries and Intel, there is insufficient knowledge of the capabilities of the relevant technologies, and how these technologies can be exploited.

Obtain education on the virtualization technologies for iSeries and Intel servers and storage, including VMWare, VMotion, PowerVM and SAN technologies, and develop an appropriate strategy.





Security & Compliance Management xClient is a significant enterprise in <country>, and therefore may

become the target of security attacks, either from external parties, or past or present employees.

There are multiple security policies for different platforms. There are multiple signons, but there is a plan to use <key

application> portal for single signon. There is no centralized recording or management of security

incidents. It is unclear whether there are standard processes for adding an

employee to the required systems when they join, or removing an employee when they leave. This is an essential factor in ensuring productivity of new employees, and removing security exposures when an employee leaves.

Responsibility for overall IT security should be centralized, with responsibilities for enterprise IT security policies, intrusion detection and reporting, and IT security incident management.

The IT security team should operate in collaboration with the physical security team.

Processes and tools for single signon should continue to be implemented. However, standardized processes related to employees joining or changing roles, and employees leaving the enterprise must also be developed.



Agenda






Dynamic InfrastructureThe following key strategic roadmaps have been provided for xClient to use to enhance its current IT environment in support of its strategic transformation activities.

Midrange Servers Site and Facilities x86-based Servers IT Storage Resources

Roadmaps for other Characteristics can be provided if xClient believes that it is worthwhile undertaking improvement programs in those areas.



EV0104DP02:

Evaluate and pilot the use of spot cooling technologies for hot spots in a selected facility

Facility Cooling

EV0104DP03: Implement spot cooling technology for hot spots in selected facilities

EV0105DP01: Develop an energy inventory of a selected facility's power usage, related CO2 emissions and BTU generation

EV0101DP02

Energy Management & Reporting

EV0106DP01: Define facility physical security policies that comply with standards such as ISO 27002, NIST or OSHA

EV0101DP03 EV0101DP01

Facility Physical Security

Roadmap ExampleFacility Cooling, Energy Management and Reporting, and Physical Security

EV0105DP02: Extend IT systems management infrastructure to monitor the power usage for servers in a selected facility

EV0106DP02: Conduct physical security compliance audits for selected facilities

EV0106DP03: Implement physical security policy compliant upgrades to selected facilities



Agenda







Conclusion

xClient aspires to have a Partner IT provider relationship with the business. xClient has done many things toward achieving this but the initiatives are primarily hardware focused at this time- In order to move towards a Partner IT provider relationship, it is critical that initiatives are

undertaken to measure the quality of IT services to the business, and apply best practice IT process frameworks. Therefore we strongly recommend that xClient undertake a program to implement IT service Management and the ITIL framework.

In the IT Strategy Workshop, a high-level, comprehensive assessment of the data center environment was undertaken. It is recommended that a more detailed strategy, plan and architecture must be developed in the following areas:- IT Continuity, including a strategy to address known issues with the current 2 Data Center

locations, and the lack of Disaster Recovery for the non-<key application> applications.- Security: There is a need to develop a consistent, enterprise standard for security that is managed

by a centralized function, and is automated and enforced- Mid-Range Servers: The strategy and architecture for workload sharing and DR on the iSeries

must be formalized- Intel Servers: While there is a plan to do physical consolidation of servers & storage in the 2 DCs

(50 servers), there are no plans to address the servers & storage in the non-DC locations (due to limitations in the network) and no plans for Disaster Recovery.

- Storage: There is no clear plan for storage virtualization covering both Intel and iSeries, and inclusive of DR requirements



Recommended Next Steps

Action Owner Date

Develop a comprehensive IT strategy that is inclusive of Virtualization, Business Resilience and Security, DC Facilities and Service Management

Architect the <key application> environment to define workload sharing across the locations and DR.

Undertake sizing for the required <key application> environments

Undertake a virtualization and optimization analysis for Intel, Storage and iSeries with the goal of establishing the architecture for each of these platforms. This study should be undertaken in an integrated manner as there are inter-dependencies across these platforms

Undertake a study that identifies the risk and impact of either or both of the data centers experiencing an extended period of non-availability

Undertake some education in IT Service Management and ITIL with the view to establishing an IT Service Management framework



Agenda




- Detailed Assessment Results- CUPE IT Provider Profiles



The Purpose of the IT / Customer Relationship Profile

The profile survey indicates the overall attitude towards the IT function within an organization. It is meant to illustrate general characteristics of IT within a company.

No profile is “Right” or “Wrong” – it is simply a view of how IT is perceived within the organization. The profile provides a useful view of the decision framework for IT architectural decisions within the organization. For example:- A Commodity profile IT provider is unlikely to consider solutions that are considered leading

edge, or require an enterprise wide investment and standardization- A Partner or Enabler profile IT provider will be looking for solutions that provide the business

with flexible, innovative IT solutions, and is more likely to consider leading edge technologies

Therefore, any IT architectural recommendations should be made in the light of this organizational view of IT.

However, a company will rarely display of the characteristics across all of the IT services. When reviewing a larger enterprise, care must be taken to define the scope of the review. For example, if the scope of the engagement is a single department, its profile could well be that of a ‘Commodity'. However, the profile of the entire enterprise could be Partner or even Enabler.



Commodity Profile

An enterprise which views IT services as a Commodity is focused primarily on using IT to automate administrative functions and wishes to accomplish these functions at the lowest possible cost

The prime characteristics of the organization within this profile are CONTROL of cost and achieving ECONOMIES OF SCALE wherever possible. These objectives are pursued even at the expense of customer satisfaction, functionality, and performance.

IT services within such an enterprise are prime candidates for outsourcing, as typically an outsourcer can provide standard services at a lower cost based upon economies of scale.

The leader of the IT organization will normally not report to the President or Chief Executive Officer of the enterprise. The IT organization will probably be found as a sub-function within the enterprise's finance organization, again reflecting a focus on controlling costs.

Technical innovation will be almost non-existent, because of the risk / cost involved.



Utility Profile

Within an enterprise viewing IT as a utility, cost is still a major factor, but there is a recognition of, and concern for customer satisfaction. There will be more of a customer focus, especially in key areas such as Help Desk, and there will be consideration of customer requirements in the selection of IT projects, but cost remains a larger issue.

In this enterprise the business units are beginning to see the value of IT services. If the IT organization has not responded adequately, the business units could begin to develop IT services on their own. This would is not desirable, but could naturally evolve as a response to the tension between cost control and end user satisfaction. Therefore, such an enterprise could have pockets of IT that may or may not be recognized as 'official' IT service providers.

Within the Utility there maybe generalized customer satisfaction surveys, which may or may not be customized by end user groups.

The head of IT will probably have an elevated position and importance within the organization compared to a Commodity organization.



Partner Profile

In the Partner Profile, IT receives greater recognition within the enterprise. The leader of IT will be at a peer level with the business units, although he / she may not have the same political stature.

There will often be discrete IT organizations within the business units, each one focused on development and support of IT solutions specific to the business unit. This is done to get them closer to the customers, their requirements, and priorities. The price for this, however, is less direct control and lower economies of scale.

In order to be effective, the enterprise wide IT organization must retain some control, and does so through technical standards provided within the IT architecture, as well as standards and policies. The focus of the enterprise wide IT organization is the effective and efficient use of technology throughout the enterprise, but with a clear vision / mission to support the business units in achieving business objectives. Cost is still a consideration, but the focus is not on the cost, but the business benefit derived from an investment in IT.

There will not normally be tension between the enterprise wide IT organizations and the business unit IT organization. Each understands its roles and responsibilities, and acts accordingly. There maybe many 'IT Councils' comprised of enterprise wide IT and business unit IT members making key decisions. Business unit executives also participate in key IT decisions and strategies, each bringing the perspective of their organizations to the table.

Customer satisfaction is a critical component of IT measurements, but IT surveys may be incorporated into overall customer satisfaction surveys, rather than IT dedicated.



Enabler Profile

IT has been elevated from a participant to a leader within the enterprise. IT initiatives are critical elements of the business strategy, and are looked at as key differentiators supplying a competitive advantage.

IT has equal prominence with other units in contributing to achieving the business objectives. The CIO is a senior executive within the enterprise, wielding significant influence and control. The President and/or CEO is quite often a technologist, as well.

Power is less about how many people one manages, but more about the influence one has on the business strategy, and the contribution one makes to achieving that strategy. The actual people involved in the delivery of IT services may be scattered throughout the enterprise - in this organization, reporting structure is almost irrelevant.

Because IT is central to the business strategy, the use of IT must be controlled in order to reduce risk. However, control is achieved through the use of standardized processes. Those who work on a process understand the significance to the enterprise of effectively adhering to the processes, as well as understanding their role and authority in deviating from that process should the business situation warrant.

Cost, remains a consideration, but here IT initiatives are included as part of an overall business initiative. The question is not whether to invest in IT, but rather to invest in a particular business opportunity - the IT component is incorporated into that decision. IT costs are tracked, but for the purpose of evaluating the success of the overall business initiative.



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