“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.
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.
Becoming financially transparent and allowing IT customers to see and control what they invest in IT services is a critical part of transforming your IT operation into an IT-as-a-Service model. But those financial details are only as good as the data they are drawn from. Data Quality Management is foundational to building an ITaaS model, as well as to maintaining credible financial transparency as your IT operation evolves and matures.
EMC IT began focusing on Data Quality Management back in 2011, when we pursued financial transparency as part of our ITaaS transformation. The goal was to transition our IT operation from a traditional centralized, cost-center based IT budget— where users had little or no information on the cost and value of what they consumed—to a financially transparent one providing increased detail on users’ IT spend.
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.
When it comes to transforming your traditional IT operation, convincing business users to embrace your new cloud architecture can be an uphill battle.
As I noted in my last blog, EMC IT initially provided infrastructure to our business users free of charge and stepped up our guaranteed service levels to convince them to adopt our new infrastructure. Virtualization and multi-tenancy were creating tremendous cost and efficiency benefits.
Nonetheless, we faced an interesting phenomenon—even though our infrastructure was free, some business units were still opting to work around us and spend real money on services. It really caused us to pause, and ask, “Why is this happening?” (more…)
Like most organizations these days, your company has probably realized the crucial role Data Quality plays in driving operational efficiencies and leveraging business and predictive analytics.
Be aware, however, that managing master data and driving data quality is a long-term journey that is best approached in phases based on your needs. If your organization is just starting out, it usually takes three to five years to get to a matured/optimized model, so I encourage you to take pragmatic steps and focus on your important business priorities. It’s not a one-size-fits-all endeavor.
At EMC, we are in the midst of evolving from a managed to an optimized Master Data Management (MDM) and data quality model. Over the past several years, we established and implemented that model for our customer data domain and are in the process of applying that same approach to additional domains, such as contacts and vendors.
Along the way, we have learned some lessons that might help your organization with its data quality journey. These lessons include:
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