Julius TomeiSenior Director and CIOPhilips Lighting Electronics

Global Service Management Global Service Management inin

Philips Lighting Philips Lighting

Making Global Service Management a RealityMaking Global Service Management a Reality

ContentsContents

Company BackgroundCompany Background The JourneyThe Journey Drivers For ChangeDrivers For Change Organizational ReadinessOrganizational Readiness ChallengesChallenges ResultsResults What’s NextWhat’s Next Q & AQ & A

About Philips Lighting ElectronicsAbout Philips Lighting Electronics

Philips Lighting Electronics - is the industry leader in thePhilips Lighting Electronics - is the industry leader in the

design, development, manufacture and sale of fluorescent and high design, development, manufacture and sale of fluorescent and high

intensity discharge (intensity discharge (HIDHID) ballasts for commercial, industrial and ) ballasts for commercial, industrial and

institutional lighting. Since the first “Advance” ballast was institutional lighting. Since the first “Advance” ballast was

manufactured in 1945, we have built a reputation for excellence manufactured in 1945, we have built a reputation for excellence

through ongoing commitments to technology, long-standing through ongoing commitments to technology, long-standing

relationships with leading lamp and lighting system manufacturers, relationships with leading lamp and lighting system manufacturers,

and customer satisfaction. Today, we provide the and customer satisfaction. Today, we provide the

benefits of reliability, versatility, energy efficiency and long service benefits of reliability, versatility, energy efficiency and long service

life in millions of installations worldwide.life in millions of installations worldwide.

Julius Tomei

Professional Background

CIO for Philips Lighting Electronics. responsible for I.T. in North CIO for Philips Lighting Electronics. responsible for I.T. in North America, as well as, the global infrastructure in Europe, China and America, as well as, the global infrastructure in Europe, China and South America. Over 23+ years within the Philips IT organization South America. Over 23+ years within the Philips IT organization and recently appointed to Head the Office of Enterprise and recently appointed to Head the Office of Enterprise Architecture For Philips Lighting World Wide. In this Global role, Architecture For Philips Lighting World Wide. In this Global role, responsibility will include: IT Strategy & Planning, Business responsibility will include: IT Strategy & Planning, Business Process, Application Solutions, IT Process, Enterprise Data, Process, Application Solutions, IT Process, Enterprise Data, Security & Compliancy and IT Infrastructure.Security & Compliancy and IT Infrastructure.

The JourneyThe Journey

The ITIL Journey Begins …The ITIL Journey Begins …

SUCCESS IS A SERIES OF SHORT-PUTTS, RARELY A HOLE-IN-ONE!

Starting Our Journey

New ERP Environment – Yr. 1999 – Introduction of SAP

Major changes in ops and support – needed new processes

Our helpdesk tracking app was discontinued. We were migrating to a new helpdesk technology and needed new processes.

Our SAP implementation partner introduced OpenView

The timing was right for a new beginning……

•Manage the business value of IT, get “buy-in” and support globally?

• Manage the services IT offers to meet business expectations?

• Manage the IT infrastructure with diverse environments?

• Manage Limited Internal Resources?

• Reduce IT Operational Costs

• Justify Business Value of IT

How do we…….

Matching IT Service with Business Needs

Standing the test of time – you keep the supply chain Standing the test of time – you keep the supply chain infrastructure operating at peak performance by maintaining infrastructure operating at peak performance by maintaining focus on service management and aligning IT with business focus on service management and aligning IT with business processes and goals.processes and goals.

Every change in the supply chain and every business decision Every change in the supply chain and every business decision that company managers make results in an IT change…that company managers make results in an IT change…

… … yet IT departments are being squeezed to reduce yet IT departments are being squeezed to reduce complexity and put a lid on overhead/operating costs.complexity and put a lid on overhead/operating costs.

Business Drivers For Change

Common Vision & Strategy

… … assess the scope and potential impact of the service management assess the scope and potential impact of the service management approach on our business.approach on our business.

… … plan a comprehensive, cost effective and scalable service plan a comprehensive, cost effective and scalable service management solution that’s well-mapped to our business.management solution that’s well-mapped to our business.

… … put the pieces in place for a highly successful deployment by put the pieces in place for a highly successful deployment by leveraging an IT service management model from HP.leveraging an IT service management model from HP.

We needed to:

Organizational Readiness

The Vision

Operations transformation Global synergies Smart sourcing Living on the Web

Globalization of tooling Manufacturing/Engineering IT Support

Centralize data centers (4 regional)

New global model of service management including processes for compliancy

Established a New Global Service Management Way of Working

Objectives

• Ensure consistent, integrated processes throughout the world

• Support our global strategy to leverage synergies globally

• Grow and support the business

• Repeated, documented processes are essential to improving IT Service Support and Delivery, especially in a Global IT environment

Common language throughout IT Improved service quality to the business Improved PST scores

Added Governance Responsibilities

Establish the effectiveness of process interfaces ensuring that they are operating as a whole

Ensure a coherent and comprehensive approach to design and implementation of process across the organization to increase efficiency and minimize cost

Monitor performance of policies and KPI’s to ensure the fulfillment of strategic objectives

Approach

Set Scope

• Build a Team in each region ITIL champions Process owners Project Managers (one in each region)

• Set a baseline Maturity and gap assessments in in region

• Do one or two processes in conjunction with two regions first EMEA and US are currently using aligned Change, Incident

processes Implement initial agreed processes and prove they work

• Our plan is to extend these process to the other regions by year end

Connected The IT Process and Quality

COBIT (PST) outlines the controls and quality requirements.

ITIL provides the details for process steps and relationships.

In the new IT business model - IT Process Architecture and Quality should be separate but aligned.

IT Processes underpin Services

Failure was NOT an Option

Operational Challenges

Operations in > 25 countries Manufacturing assets around the world Multiple ‘data centers’ Key accounts are international Multiple SAP instances Duplicate resources Legal/Government (internal audit, SOx)

Global Challenges

Different priorities and projects in each region

Different politics

Different work ethics and approaches to work

Different levels of process maturity

Time zone factors

The Business / I.T. Dilemma

Challenges We facedChallenges We faced

Pressure to reduce Budget every Year

Headcount reductions through shared global synergies

Do More with Less

High System Availability

Sustainable System Reliability

Execution Speed - Agility

Results Had To Be

Measurable Repeatable Sustainable Value Add for the business Global continuity through standard tools and

processes Agility to change quickly as business requires Solid Framework for future growth

reactiveproactive

service

value

business management

real-time service level

reporting

historical reporting

customer satisfaction

problem management

process integration

prioritization

managed “triage” process

event consolidation

problem visualization

automatic actions

alerts & paging

diagnosis & repair

thresholding & baselining

application intelligence

corrective actions

root-cause & decision support

advanced analysis

advanced diagnostic

advanced tools

ResultsResults

IT Process Architecture Organization

IT ProcessArchitect

ProcessManagerEMEA

ProcessManager

Latam

ProcessManager

APR

ITIL

ITIL Governance

Availability & Capacity management

Configuration, Change and Release management

Incident & Problem management

Local Experts

PST

Quality

ProcessManager

NA

Global Processes

Questions Questions