Sometimes the insights you are looking for to resolve a problem turn out to be right in your own backyard. When EMC IT embarked on a bold mission to transform its IT operating model almost two years ago, it made perfect sense for EMC IT to turn to an inside resource—our top EMC consultants in the IT Transformation Work Group within EMC Global Services—for help.
After all, the Global Services IT Transformation Practice had years of experience helping clients transform their IT operations to better serve their business clients. Global Services could apply what we knew to move the EMC IT effort forward In turn, our IT Transformation service leaders could benefit from being involved in one of the industry’s largest IT transformations, through which we could hone and refine our consulting approach and practices on a scale we have never done before.
Nineteen months later, EMC’s IT transformation is on track, and our group has gained a long list of new best practices and insights to leverage with other clients going forward.
We use supplier analytics, ongoing process improvement and constant communication—the fourth and final pillar of our overall approach.
Using dashboards and reporting tools, analytics lets us measure our vendor interactions and evaluate them to maximize performance. Think of this approach as tracking the heartbeat of EMC IT’s vendor relationships—a kind of ongoing checkup to make sure this important system is working as it should. This includes tracking deals to ensure all the right terms and conditions are in place, confirming that what IT spends on them is what was expected, and making sure that each vendor is doing what they are expected to do. (more…)
“That’s not what I wanted”… “You said you were going to seamlessly support my apps”… “I thought you understood what the project was”… PROJECT STATUS: RED
Have you ever heard of the Latin term ‘Caveat Emptor’? It means let the buyer beware. How many times have you heard about someone who purchased a product or service and it is not what they thought they were buying? In countless courtrooms, both large and small, consumers (whether individuals or corporations) are warned about understanding what they are agreeing to, knowing what they are buying and taking responsibility for any agreements they are entering into. In a way – our computer age has made this easier than ever to do. So if this is so easy why are there still many vendor disputes or – worse yet for IT organizations –failed projects?
Contract Execution and Compliance is a key part of EMC IT’s Enterprise Vendor Management approach that can have a huge impact on the ongoing success of the work we produce. It is one of four pillars or focus areas we use to address key components of our IT sourcing. The other three pillars, discussed in other blogs in this series, are Strategic Partnership; Partner Selection and Negotiation; and Analytics, Process and Communication.
Second in a series on Enterprise Vendor Management
Selecting IT sourcing partners and negotiating effective contracts are key to the success of your organization’s IT sourcing strategy. Failure to dedicate enough time to these items will almost certainly lead to issues down the road, either in project failure or not achieving intended goals. In this the second blog on Enterprise Vendor Management, we will review some foundational steps to get you started in the right direction. (Read the first part on Framing a Better Sourcing Strategy)
Selecting a partner
Before deciding who you want to purchase services from or partner with, you must clearly define your goals and requirements including timeframe and budget. If possible, do this without a specific partner in mind to avoid tailoring your requirements. Depending on the scope of your project, you may want to issue a formal request for proposal (RFP).
When it comes to running your IT operation like a business to deliver IT as a Service (ITaaS) and competing with outside providers, Service Portfolio Management (SPM) is where the rubber meets the road.
SPM is the process by which your IT organization makes sure your service catalog is providing the right mix of services that will meet customers’ needs and deliver business value while at the same time enabling you to be a financially viable service provider. Or, put in plain business terms, SPM is how you make sure you are selling the right product mix to meet your customers’ demands (and needs) at the right price to keep you in business–to keep IT relevant. It is basic supply and demand.
That said, achieving SPM as you transform your traditional IT operation to ITaaS has its challenges. EMC IT has been in the process of transforming to an ITaaS model for several years now. And just as our transformation journey has been a learning process, so has our journey to effective SPM.
All organizations need to strategically manage their IT sources to fulfill their needs in the most efficient way. Many companies leverage hundreds of vendors to support their IT operations as well as a select core of strategic partners with whom they collaborate for mutual success.
At EMC IT, we are incorporating industry best practices into a newly launched Enterprise Vendor Management Office (EVMO) to bring our IT sourcing strategy to a new level of efficiency.
As SVP of IT, Jon Peirce is responsible for driving EMC IT’s transformation into an IT-as-a-Service provider/ broker and strategic business partner through technology, operating model, process and organizational innovation and evolution. Additionally, he oversees operations for several of EMC’s revenue generating cloud services and leads EMC’s Centers of Excellence in the Americas. In his prior role in IT from 2006-2013, Jon was responsible for Global IT Infrastructure and Support Services and led an aggressive standardization, consolidation, virtualization, tiering and optimization program across EMC’s IT infrastructure that delivered in excess of $220M in cost savings along with improved agility, resiliency, scalability, sustainability and security.
As I noted, we were stalled. While we had achieved significant benefits from adopting a standardized and virtualized infrastructure, we had an operating model and 2,000-person organization that had one foot in traditional IT and one foot in ITaaS. With EMC Services’ help, we regrouped, assessed our model’s maturity level and created a clearer roadmap to move forward. The next step was creating the workstreams to execute against that roadmap; reshaping our organization’s processes and the roles of our people in the new ITaaS world.
If early results are any indication, EMC IT Service Management is making its customer 30 percent happier than we did two years ago. We are also giving them more control over addressing IT Service incidents via self-service options, cutting down on reassignments of their service requests from one service agent to another, and using more standardized processes resulting in fewer emergency service issues.
It’s all part of EMC IT’s recent initiative to transform our clients’ IT service experience by forging a new IT Service Management (ITSM) program that optimizes service management processes and technologies.
The project, which we call UnITy, was a massive undertaking to replace our outdated, inconsistent and less-than-agile ITSM processes and obsolete platforms to better meet the evolving needs of our customers.
Alan Kay, a renowned computer scientist said, “The best way to predict the future is to invent it.”
And this is my addition: “If we are about to predict the future, let’s use past events, learnings and data to make that prediction as accurate as possible.” This is how EMC IT came about using Big Data analytics to predict service outages.
Like many of our customers, we at EMC IT are exploring the potential of using Big Data analytics to improve the availability of mission critical IT applications and services. We also know that our customers share similar operation issues, so we are excited to share our progress as well.
What started as a pilot program to use Big Data analytics to improve the operation of our Exchange email system at EMC IT has evolved into a more extensive outage prediction tool that is piquing customers’ interest. Our Big Data Analytics for Outage Prediction system could allow our operations team to collect, analyze, store, and leverage key indicators to predict and prevent interruption in mission critical operations. It is “green fields” for PAITO (Predictive Analytics for IT Operations).
**This is the second part of a three-part series about labor sourcing in the ITaaS business model**
As IT operations evolve to become more agile, less siloed and increasingly standardized, it makes sense that the way we source skilled labor to deliver services to IT users in our business units should make a similar transition.
To that end, our Solution Delivery Services (SDS) in EMC’s IT organization has been moving to a new, consumption-based global operating model for some time. This transformation started with building out Technical Competency Centers (TCC) in which we aggregated, or “pooled,” similarly skilled EMC technical professionals.
Rather than the suboptimal approach of having individual professionals assigned to a single business unit, we set up groups of similarly skilled individuals who can be utilized in any project by any business unit as they are needed. The benefits of this competency center model are significant.
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