hampshire constabulary it sourcing strategy steve vercella (head of it) & martin nel (it vendor...

Hampshire ConstabularyHampshire Constabulary

IT Sourcing StrategyIT Sourcing Strategy

Steve Vercella (Head of IT) Steve Vercella (Head of IT) &&

Martin Nel (IT Vendor Manager)Martin Nel (IT Vendor Manager)

Providing an excellent service

Catching criminals & managing offenders

Active Presence in every neighbourhood

Protecting our communities

Equipping the team

Making the most of resources

Business Relationship Management

Programme Management Service Delivery Support Function

IT Sourcing Strategy

(Added Value) (Commoditisation Service)

Policing Plan 2009-12Policing Plan 2009-12

IT Impact and Contribution

Information Management Strategy

Strategic IT Delivery PlanIT Infrastructure StrategyIT Vendor ManagementIT Architecture

Question….Question….

Your Previous IT Strategy:Your Previous IT Strategy:

Do you know what it was?Do you know what it was?

Did you understand it?Did you understand it?

Do you know what it delivered?Do you know what it delivered?

No….., you have a problem with your strategy!No….., you have a problem with your strategy!

This is Something New……This is Something New……

Strategy:Strategy:

Introduce established commercial philosophies to align Introduce established commercial philosophies to align IT IT TechnologyTechnology, , ResourcingResourcing and and SourcingSourcing practices to: practices to:

Generate Significant SavingsGenerate Significant Savings Improve PerformanceImprove Performance Increase FlexibilityIncrease Flexibility Underwrite strategic policing demandsUnderwrite strategic policing demands

Transforming IT - from a technologies solution to a Transforming IT - from a technologies solution to a service solution environmentservice solution environment

Strategy is about outcomes, not technologyStrategy is about outcomes, not technology

Self-managed with proprietary applications

Self-managed with package

applications

Single sourcing

Multi Sourcing

Purchase Hardware

Purchase software license & code

Develop & maintain own applications

Purchase hardware

External support necessary, particularly for software customisation

Focus on infrastructure sourcing and project based application development

Disaggregation of IT in to sourcing components

IT Market Developments

70s 80s 90s 00s

Technology Solution DrivenTechnology Solution Driven

Service Solution DrivenService Solution Driven

HistoriographyHistoriography

Increasing market standardisation & commoditisationIncreasing market standardisation & commoditisation

Inherited LegacyInherited Legacy

IT infrastructure and sourcing practices remain technology focused – a self IT infrastructure and sourcing practices remain technology focused – a self managed applications and hardware environmentmanaged applications and hardware environment

The result:The result:

A failure to capitalise on two decades worth of IT market developmentA failure to capitalise on two decades worth of IT market development

Requires extensive and specialised internal resources to Requires extensive and specialised internal resources to effectivelyeffectively maintain maintain

Dominated by proprietary application and technologies support arrangements Dominated by proprietary application and technologies support arrangements

InflexibleInflexible

ComplexComplex

High levels of operational riskHigh levels of operational risk

Prohibitively costly to maintainProhibitively costly to maintain

Failure to concentrate on key competencies (Policing!)Failure to concentrate on key competencies (Policing!)

Low Opportunity to ChangeLow Opportunity to Change

Legacy Assessment

Increasing Savings

Inc

rea

sin

g V

alu

e

Proprietary Suppliers

Strategic Suppliers

Commodity Supplier

Strategic Partners

Resources, Apps, Suppliers

Hardware

£26.9m

- - Lock-in - but high added valueLock-in - but high added value- Unique Competence- Unique Competence- Guaranteed Service Commitment- Guaranteed Service Commitment- Accept Responsibility / Risk- Accept Responsibility / Risk- Aligned Customer Strategic Focus- Aligned Customer Strategic Focus- Significant Service Improvement- Significant Service Improvement

- Opportunity to changeOpportunity to change and high added valueand high added value- Best Price / Economies of Scale- Best Price / Economies of Scale- Guaranteed Service Commitment- Guaranteed Service Commitment- Accept Responsibility / Risk- Accept Responsibility / Risk- Aligned Customer Strategic Focus- Aligned Customer Strategic Focus- Significant Service Improvement- Significant Service Improvement

- Opportunity to changeOpportunity to change but low added valuebut low added value- Best PriceBest Price- Improved Service CommitmentImproved Service Commitment

- - Lock-inLock-in and low added valueand low added value

High Opportunity to ChangeHigh Opportunity to Change

Resources, Applications / Suppliers

Hardware

£20m

Can we afford not to Can we afford not to change?change?

Technology

Sourcing

Resources

Re-engineering for changeRe-engineering for change

Alignment BarriersAlignment Barriers

Technology:

Proprietary technical solutions – inflexible & tied development or support arrangements

Heterogeneous hardware and communications infrastructure

Resources:

Staff

- too specialised or inexperienced- unwillingness to consider or embrace change

- honest belief that current practices are the best!

Internal Procedures & Bureaucracy

Sourcing:

Reactive Sourcing – the most basic and inefficient form of corporate purchasing - promoting large and complex solutions and support-base

No in-house commercial sourcing, contract or vendor management expertise

Profile – failure to integrate and align with corporate strategic objectives

Increasing Savings

Inc

rea

sin

g V

alu

eEffecting Change – Resources Alignment

Strategic Partners Strategic Suppliers

Commodity Supplier

Resources

Low Opportunity to ChangeLow Opportunity to Change High Opportunity to ChangeHigh Opportunity to Change

Alignment ObjectivesAlignment Objectives

ResourcesResources

Effecting Change – Technology Alignment

Alignment ObjectivesAlignment Objectives

TechnologyTechnology


Technology

Commodity Supplier

Increasing Savings

Inc

rea

sin

g V

alu

e



Effecting Change – Objective Symmetry

Resources, Technology & Sourcing Resources, Technology & Sourcing Objectives CombinedObjectives Combined

Our StrategyOur StrategyCommodity Supplier


Increasing Savings

Inc

rea

sin

g V

alu

e


Sourcing

Res

ourc

es

Technolog

y



Increasing Savings

Inc

rea

sin

g V

alu

eChange in action – Whole-life-cycle contract

Strategic Partners

Resources & SourcingHardware

Strategic Suppliers

Whole-life-cycle contract

Alignment in Action – An ExampleAlignment in Action – An Example


Proprietary Suppliers Commodity Suppliers

Increasing Savings



Commodity SuppliersProprietary Suppliers

Inc

rea

sin

g V

alu

eProjected Outcomes – Network & Comms

SM – L4

NIA – L5 NIA – L4 NIA – L3

Intra-net /CSouth Xtranet &

Telecom-BT

Strategy in actionStrategy in action

Possible Objectives – Network & Possible Objectives – Network & CommsComms

Managed Service / Outsourced Supplier

Increasing Savings

Inc

rea

sin

g V

alu

eProjected Outcomes – Applications



Commodity Suppliers

Ops & COTS applications

RMS, Airwave, Holmes

Altaris, Carm - Serco

Software asset & external application management

Managed service solution

Strategy in actionStrategy in action

Possible Objectives – ApplicationsPossible Objectives – Applications

SM – L 5 SM – L4

DBM – L 5DBA – L4

Effective Action TakenEffective Action Taken

Achieved:Achieved:• Whole Life Cycle (Saving £527k ytd)Whole Life Cycle (Saving £527k ytd)• Software Asset Management Solution (Saving £400k pa)Software Asset Management Solution (Saving £400k pa)• Call Management (Altaris)Call Management (Altaris)• Network Management (Saving £1m pa)Network Management (Saving £1m pa)• IT Help Desk (Saving £165k pa)IT Help Desk (Saving £165k pa)

Planned:Planned:• User SupportUser Support• Review Open Source PotentialReview Open Source Potential• Print StrategyPrint Strategy• Data Centre ReviewData Centre Review

Secret to unlocking this potential?Secret to unlocking this potential?

Right Sourcing

Multiple Sourcing remains the key to delivering service Multiple Sourcing remains the key to delivering service improvements and savingsimprovements and savings

Recognise that targeted outsourcing represents a valid Recognise that targeted outsourcing represents a valid “normalised” sourcing option“normalised” sourcing option

Supply-chain focus and strategic objectives need to align with Supply-chain focus and strategic objectives need to align with those of the Constabularythose of the Constabulary

Greater acceptance and assignment of risk to the supply-chainGreater acceptance and assignment of risk to the supply-chain

Embrace modern-day IT sourcing practices, through:

Maximising Benefits and Returns?Maximising Benefits and Returns?

CollaborationCollaboration

Collaboration needs to be a key strategy objectiveCollaboration needs to be a key strategy objective

Will fail without Strategy Alignment between Will fail without Strategy Alignment between collaborative partnerscollaborative partners

Acting CollaborativelyActing Collaboratively, increased economies of scale and amalgamation of , increased economies of scale and amalgamation of repeat service functions provides the greatest possible opportunity for the repeat service functions provides the greatest possible opportunity for the generation of highly significant savings and service improvementsgeneration of highly significant savings and service improvements

Next StepsNext StepsStrategy:

Agreement

Publish Strategy

Communicate:

• Police Authority• Strategic Suppliers• SERIT Forces• NPIA

Implementation:

Complete Outsourcing Market Review

Build Strategic Delivery Plan

hampshire constabulary it sourcing strategy steve vercella (head of it) & martin nel (it vendor...

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