Download - Cloud Operating Model Design
Operating Model Design
Service Offering Description
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Operating Model ElementsProcesses – how we perform activities that deliver predictable and repeatable business results through competent people using the right tools. Governance – how we make and sustain important decisions about IT. Sourcing – how we select and manage the sourcing of our IT products and services. Services – our portfolio of IT products and services. Measurement – how we measure and monitor our performance. Organization – how we structure and organize our IT capabilities?
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Agenda
• Major Assumptions
• Operating Model Scope
• Value Proposition
• Design Approach
• Level 0 Process Model with Level 1 ITIL V3 Mapping
• The Model as a Business Planning Tool
• Candidate Operational Flows
• Next Steps
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Major Assumptions• The scope of managed services addressed by the model should be flexible
enough to support technical services, e.g., network, storage, compute and application infrastructure or middleware, needed to deliver service offerings to the SBUs as well as the business services needed to run IT, e.g., infrastructure management systems, service management systems
• Best practice approaches should be leveraged wherever possible to deliver a Type 2 or 3 Service Provider Model (ITIL V3), e.g. managed and shared services
• In the Target Operational Model headcounts and skill levels will be aligned to ‘market standards’ to allow for operational metrics and KPIs to be benchmarked against industry best practices, e.g. ratio of devices / admin, incident metrics, etc.
– The best practice numbers will serve as a goal against which the target environment will be measured as it matures
• Operational maturity and skill levels will be evaluated after a Due Diligence phase and organizational gap remediation steps taken to ensure that the saves promised by initiative (s) be realized.
• The model must support E2E processes for all service management flows as they span Service Desk (e.g., incident, Support and Operations, e.g., config,. change, facilities mgmt., etc)
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Agenda
• Major Assumptions
• Operating Model Scope
• Value Proposition
• Design Approach
• Level 0 Process Model with Level 1 ITIL V3 Mapping
• The Model as a Business Planning Tool
• Candidate Operational Flows
• Next Steps
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Process Model• End-to-end operating processes• Process triggers and interfaces
• E.g., ITIL , eTOM, ISO 2000• Performance KPIs
People & Organization• Roles & Responsibilities (RACI)
• Process owners• Escalations & interactions, etc.• Performance KPIs and Metrics
People & Organization• Roles & Responsibilities (RACI)
• Process owners• Escalations & interactions, etc.• Performance KPIs and Metrics
Technology(IT Infrastructure, Tools & Automation)
• Process automation• Data models and repositories (e.g.,
CMDB)• COTS, standards & simplification
Operating ModelGoals are:
• Operational Efficiency• Customer Experience• Revenue & Margin
Operating Model Scope
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Agenda
• Major Assumptions
• Operating Model Scope
• Value Proposition
• Design Approach
• Level 0 Process Model with Level 1 ITIL V3 Mapping
• The Model as a Business Planning Tool
• Candidate Operational Flows
• Next Steps
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Assumed Operating Model Savings Targets - OperationsValue Metric Desired
DirectionValue Metric Desired
DirectionValue Metric Desired
Direction
Improved AuditCompliance
% of ApplicationsRunning on a VirtualizedInfrastructure
Average cost per type ofservice request
Number of emergencychanges due tonon-compliance
Percentage Re-use and Redistribution of Under-utilized resourcesand assets
Percentage increase inthe overall end-to-endavailability of service
Number of unauthorizedchanges
Average cost per incident
Service unplanneddowntime connectedto change activities(hours / month)
Non-complaint assetsidentified as the cause ofservice failures
Mean-time betweenFailures (MTBF)
Percentage reductionin the costs and timeassociated with serviceprovision
Time and cost to auditand remediate (auditcycle time)
% of Incidents closed byLevel 1 Support
Change (all) to Admin(all) Ratio
% Cost of Compliance toTotal IT Budget
Service downtimeconnected to rolloutactivities (hours / month)
Reduction in the numberof failed changes
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Assumed Operating Model Savings Targets - SupportValue Metric Desired
DirectionValue Metric Desired
DirectionValue Metric Desired
Direction
Percentage reduction inSLA targets missed
Reduction in numberand percentage of major incidents
Time and cost to auditand remediate (auditcycle time)
% of Incidents reported byEnd Users and customers vs IT Operations
% of emergency changes due to non-compliance
Number of changes implemented to services which met the customers agreed requirements, e.g. quality/ cost/time
Time and cost to audit and remediate (Audit cycle time)
Percentage increase in customer perception and satisfaction of SLA achievements
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Assumed Operating Model Savings Targets - SBUsValue Metric Desired
DirectionValue Metric Desired
DirectionValue Metric Desired
Direction
% Increase in CustomerSatisfaction of SLA’s
Improved Audit Compliance(# of audit tests passedversus total)
Percentage reduction incosts associated with serviceprovision
% of IT Projects that Alignwith Corporate Objectives
Cost of UnplannedBusiness Interruptions
Number of changes implemented to services which met the customers agreed requirements, e.g. quality/ cost/time
% of Budget Focusedon Operations, Labor,Investments
Actual spend versusbudgeted spend
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Agenda
• Major Assumptions
• Operating Model Scope
• Value Proposition
• Design Approach
• Level 0 Process Model with Level 1 ITIL V3 Mapping
• The Model as a Business Planning Tool
• Candidate Operational Flows
• Next Steps
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Design Approach: Blending Industry Best Practices
Isn’t ITIL Enough?• ITIL V3 covers 100%+ of Day 1 capabilities • From a pure end-state design perspective,
ITIL is Internally focused – experience shows that once transparency is achieved for the business, comparative valuation occurs – eTOM offer management and campaign processes could address an important gap in the end state
• ITIL does not link solutions and training to a design process (it is part of release)
• The use of eTOM simply ensures that the end state design provides full coverage in the event the client needs to access additional capabilities as it matures
Integrate with client
requirements
End-to-end operating processes
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Agenda
• Major Assumptions
• Operating Model Scope
• Value Proposition
• Design Approach
• Level 0 Process Model with Level 1 ITIL V3 Mapping
• The Model as a Business Planning Tool
• Candidate Operational Flows
• Next Steps
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Strategy & Service Operations and Support
High Level-Process Model
Service Lifecycle
Management
Business Strategy,
Architecture & Planning
Service Management
and Operations
Service Fulfillment
Service Assurance
Customer Service
Service Configuration & Activation
Service Quality Management
Service Development & Management
Resource Development & Management
Supplier Development & Management
• The Operating Model shows seven vertical process groupings that are the end-to-end processes that are required to support customers and to manage operations
• The operating model also includes views of functionality as they span horizontally across the clients’s internal organization
• The horizontal functional process groupings distinguish functional operations processes and other types of business functional processes, e.g., Service Development versus Service Activation & Configuration, etc.
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Operating Model E2E Processes
• Built on industry best practice business and IT process models
• Addresses all of end-to-end processes needed to deliver Managed Services to customers - Includes – Strategy and Service: “Enabling” processes of Business
Strategy, Architecture & Planning, including• Service Lifecycle Management and Service Development &
Management
– Operations and Support: “Lights on,” or core operations processes of Customer Service, Service Management and Operations, including • Operations Support, Billing/Chargeback, Service Desk,
Service Development and Management• Service Configuration & Activation, Service Quality
Management, Facilities and Operations
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Strategy & Service Operations and Support
ITIL V3 Mapping
Service Lifecycle
Management
Business Strategy,
Architecture & Planning
Service Management
and Operations
Service Fulfillment
Service Assurance
Ser
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Dem
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Cap
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Release &
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Facilities M
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Service C
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Service Desk
Incid
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Pro
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Req
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Access M
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Co
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Operating ModelREFERENCE MODEL
TEC
HN
OLO
GY
PR
OC
ESS
PEO
PLE
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• Strategy & Service covers the processes involved in forming and deciding Service Strategy and gaining commitment from the business for this
• Service Lifecycle Management covers the services themselves – note that the model distinguishes Service, used by the client to represent the “technical” part of the product, and Resource (physical and non-physical components used to support Service)
• The vertical functional groupings in are mapped from ITIL V3, Service Strategy and Design
Business Strategy, Architecture & Planning Processes
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Level 0 Operations & Support Processes
• Operations & Support (O&S) provide the core of lights-on Operations and first- and second-line support
• The vertical processes in O&S represent a view of flow-through of activity, and map to ITIL V3 processes where there is functionally-related activity, e.g., Service Transition, Operation and CSI
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Resource Model
Result
Schedule of Decremented initiative Ops Roles / Process/Task Headcount Schedule for Incremented Ops Roles / Process/Task Headcount
Apply
Industry Benchmarks for Operational Metrics for Mature, Automated Processes, Roles Tasks
Map To
End State Roles / Process / Task Headcount Device Retirement Schedule New Device Deployments
schedule Role/Process/Task Headcount
Inputs
Cient Org. Roles / Process/Task Headcount
Incremental Roles / Process/Task Headcount
needed for SVMA
Pre-program Device Count Day 1 Device Count
Baseline Operational Metrics, e.g., Device to
Admin Ratio
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Resource Model at a GlanceProcess
Grouping
ITIL V3 Processes
Key Baseline Metrics
Industry Benchmark
Metrics
ITIL Roles
Headcount Forecast
DemandForecast
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Agenda
• Major Assumptions
• Operating Model Scope
• Value Proposition
• Design Approach
• Level 0 Process Model with Level 1 ITIL V3 Mapping
• The Model as a Business Planning Tool
• Candidate Operational Flows
• Next Steps
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The Target Model as a Business Planning Tool• Roles (ITIL V3)
• Processes (ITIL V3)
• Skills (SFIA)
• KPIs / Metrics (Role Based / Processes Based)– Baseline and improvement
• Allows us to dial up and down to see ROI
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Anticipated Trends Forecast (sample)
Aurora Planning Timeline
BAU Headcounts
BAU + Incremental Initiative Headcounts
Infrastructure Capacity, Efficiency,
Scale and Ability Cope with Change
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Key Planning Metrics
• Key Operations Metrics
• Mean Time to Repair (time required to diagnose and resolve problems)
• Incident to Change Ratio
• % of Incidents Reported by End Users
• % of Outages Traced to Mis-configurations
• % of Changes Completed within change Windows
• % of Changes Automated versus Manual
• Device to Admin Ratio
• Service roll-out cycle time (MTTD - mean time to deploy)
• Changes per Admin
• $ Unit per Device Managed
• Time and cost to Audit and Remediate (Audit cycle time)
• Time and cost to Grant and Revoke Administrative Access
• Downtime traced to compliance violations
• % of configuration audits passed
• $ Operation per Device Managed
• Key Support Metrics
• Ratio of L1 to L2 to L3 support staff
• First call resolution rate
• Percentage of escalations to L2 and L3 support
• Time to plan a change
• Time to approve a change
• Backlog of changes
• # of change collisions
• % of changes rolled back
• # of calls resolved via self-service requests (call avoidance)
• MTBF for business availability
• Ratio of planned to unplanned changes
• Average cost per incident
• Average cost per type of service request
• % of incidents closed by L1 support
• # of Incidents
• Ratio of L1 to L2 to L3 incidents
Low Hanging Fruit?
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Candidate Operational Flows
• Start the dialog
• Guide POV / POC activities
• Tied to KPIs / Metrics can help determine direct value opportunity
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Agenda
• Major Assumptions
• Operating Model Scope
• Value Proposition
• Design Approach
• Level 0 Process Model with Level 1 ITIL V3 Mapping
• The Model as a Business Planning Tool
• Candidate Operational Flows
• Next Steps
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1. New Service Request/Service Provisioning
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2. New Service Request Development Environment
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3. New Service Request Development Application
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4. Application Promotion
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5. Closed Loop Compliance
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6. Proactive Incident Management
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Agenda
• Major Assumptions
• Operating Model Scope
• Value Proposition
• Design Approach
• Level 0 Process Model with Level 1 ITIL V3 Mapping
• The Model as a Business Planning Tool
• Candidate Operational Flows
• Next Steps
04/08/2023 © Copyright 2010-2011 Sunnyside Associates, LLC. All Rights Reserved. 36
Call to action
• Gather data to complete Resource Model spreadsheet
• Cross-org. process “innovation workshop”– Gain consensus and buy-in on high priority operational process
improvement targets, KPIs, phasing, etc.
• Organization skills assessment, remediation recommendations
• Interface mapping across upstream and downstream systems (dependency mapping between SM, CRM, MIS, etc.)
• Implement operational flows in POV using defined alternatives
• Gain understanding of E2E optimization choices, e.g., replacement vs. migration
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Operating Model Focus Group Plan Milestones
Day One – Operations Transition Readiness
Phase One - Strategic Target Operating Model Design
Phase 2 - Skills Assessment and Remediation Plan
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High Level Roadmap
Day One
Q4 Q2Q1 Q3 Q4 Q2Q1
Day One Operations Transition Readiness
Stakeholder Process Transition Team and Infrastructure in place
Phase 1
Phase 2
Dedicated Resources Assigned (see Resource Model)
Governance ProcessBusiness-line Application Team Engagement
Complete Resource Model
Strategic Target OM Design
Develop ApproachGain consensus on priority
Identify Process Owners
Develop and roadmapSync with program priorities
Skills Assessment & Remediation Plan
Develop ApproachGain consensus on approach
Identify Functions / Skills Roles
Execute assessment, identify gaps, develop remediation planAlign plan to roadmap
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Day 1 – Operations Transition Readiness
Q4 Q2Q1 Q3 Q4 Q2Q1
Deliverables• Operations transition team in place, transition processes documented and ready to support Day
One operations and activities• Stakeholder process• Resource Model Delivered• Governance Process
o Major dependencies – Dedicated resources and infrastructure (see Day One Resource requirements), Stakeholder engagement, commitment by management to Governance Process
Dependencies• Existence of quality metric data • Availability of Transition Team resources
Day 1Stakeholder Process
Transition Team and Infrastructure in place
Qualified, Dedicated Resources Assigned (see Resource Required)
Governance ProcessSBU Application Team Engagement
Complete Resource Model - deliver to WG5
Day One Operational Transition Readiness
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Phase 1 – Strategic Target Operating Model Design
Q4 Q2Q1 Q3 Q4 Q2Q1
Deliverables• Process Owners identified and committed – engagement with WG4• Process Models / Roadmap delivered• Prioritization Model / Approach / KPIs delivered
o Major dependencies – Dedicated resources and infrastructure (see Day One Resource requirements), Process Owner participation (from Technical Operations), dedicated process design resources (see Day One Resource requirements)
Dependencies• Availability of dedicated resources (Budget)• Availability and commitment of Process Owners
Phase 2
Strategic Target OM Design
Develop ApproachGain consensus on priority
Identify Process Owners
Develop and roadmapSync with Aurora priorities
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Phase 2 – Skills Assessment and Remediation Plan
Q4 2009 Q2 2010Q1 2010 Q3 2009 Q4 2010 Q2 2011Q1 2011
Deliverables• Skills Assessment Framework• Function / skills / role profiles• Gap / remediation plan (e.g., Training / HR Plan)
o Major dependencies – Dedicated resources and infrastructure (see Day One Resource requirements), Process Owner participation, dedicated HR / training resources
Dependencies (items still to be resolved – if any, and who might be the person / group to ask)• Assessment framework (Budget)• Availability of Process Owners• Dedicated HR / Training planners (Budget)• Training Resources (Budget)
Phase 2
Skills Assessment & Remediation Plan
Develop ApproachGain consensus on approach
Identify Functions / Skills Roles
Execute assessment, identify gaps, develop remediation planAlign plan to roadmap