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Agenda
● Introduction
(Marijn Voskuil)
● The impact of cloud services a d DevOps on the sourcing strategy and sourcing Governance models
(Marijn Voskuil)
● The impact of cloud services and DevOps on the sourcing governance of AEGON
(Karin van den Branden)
● Questions & Discussions
(all)
Quint capabilities for implementing change
Digital Strategy & Transformation
Lean IT, Agile & DevOps
Data Management & Governance
Transformational Leadership
Sourcing Strategy, Contracting & Transitioning
Service Integration, Automation & Management
Training & Coaching
IT Governance, Risk & Compliance
3
Quint facts & figures
30,000professionals
trained annually
Globalrevenues
€30m
Great Place To
Work
150partners globally
>250 Consultants
deliver projects in49 countries
Net Promoter
Score
97%
25 years
of Thought Leadership
100unemployed people
retrained in 2016
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6
Building blocks of a sourcing strategy - ‘WHY’ and ‘WHAT’ question are not impacted by introducing cloud services and DevOps…
WHOwill take sourcing decisions and will
manage it?
WHYshould we change something in the
sourcingmix?
WHATis the best way of
sourcing of a service?
HOWis the service going to
be delivered?
WHICHkind of providers are
fit for purpose fordelivering the
services?
WHENwill the sourcing
strategy be executed?
Readiness Assessment and improvement plan
Sourcing Governance
Sourcing Organisation
Organisation- andIT-Strategy
Sourcing Objectives
SourcingPrinciples
Service Sourcing Map
Service Model
Delivery Method
Providers (internal& external) Profiles
Providers Landscape
Sourcing Approach
Strategic Business Case
Sourcing Roadmap
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Cloud is, next to of course the vendor landscape (‘WHICH’), impacting the ‘WHO’, ‘HOW’ and ‘WHEN’ Questions
● (Cloud) Governance models (WHO)
● Cloud service models (HOW)
● Cloud delivery methods (HOW)
● Cloud sourcing roadmap (WHEN)
9
Key question of today: ‘WHO’ is in control these days in the ‘new world’ with a multi speed and multi vendor landscape?
10
…And how do we deal with the paradigm shift?
Data privacy Supervisory authoritiesGiven or no SLA’s
How to control the ‘spaghetti’Control costs in a pay per use
model
X
11
Vendors offer various cloud governance services – but are we talking the same language? And is it new?
Cloud brokerage
Cloud Management Platform SIAM
Cloud orchestration
12
Ones definitions of terms are agreed, they can be related to the various governance models
SIAM
Cloud Service A
Cloud Service B
Cloud Service C
Business
Clo
ud
o
rch
est
rati
on
Clo
ud
b
roke
rag
e
IaaS-Based
Approach
Non-Cloud
Service D
Cloud Management
Platform
13
And related to agile way of working in DevOps teams within theDemand and Supply Governance Framework…
14
…requiring a shifting role for and services from traditional infrastructure and application maintenance vendors.
16
● …by helping people taking responsibility for their financial future
The purpose of AEGON is to help our customers to achieve alifetime of financial security….
17
…we started with Single Vendor strategy and Next Way of Working as contributors to realize AEGON’s ambition for digitalization…
Vendor landscape
• AEGON has contracted a single vendor for its application landscape some years ago;
• Infrastructure Services are provided by AEGON Global Technology(AGT);
• Through the years AEGON has slowly adjusted its “one vendor” approach for theapplication environment, allowing other vendors to contribute to AEGON’s success;
• At the same time AEGON’s business units have increased their demands and authority oncrucial IT choices, leaving BIS the challenge to facilitate and to coordinate from astrategy, orchestration and compliance point of view;
NEXT Way of Working
• Value driven
• Self Organizing
• Self Development
• Support & Facilitate
Methodologies; Agile, waterfall, Scrum etc.
Sourcingtypes; co-sourcing, outsourcing etc.
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.... and adjusted the IT Sourcing Strategy to a multi vendor (incl. Cloud) strategy…
• Using technology to get to our customer
• A changing world demands innovative services delivered by our NEXT teams
• Automation and robotization
• Business units are much closer to IT, more involved and more demanding;
• Laws and regulations are increasing and/or changing;
Accelerate digital transformation
Sourcing strategy revised
• adjusting the one vendor application strategy
• re-contracting current vendor and selecting additional vendors
• empowering the internal organization to effectively orchestrate the future demand and supply landscape.
19
… which was designed to cover different types of services, that require different kind of commitments and different types of sourcing…
20
Objectives of E2E services
- Reduction of Lost Production Hours- Reduction of Total Cost Ownership- Increase User/Customer satisfaction - Reduce cost per business transaction- …
… differentiating objectives per quadrant …
Objectives of agile (co)sourcing
Increase ability to innovate -Reduce Time-to-market -
Increase usable features delivered -Induce state-of-the-art knowledge -
Increase customer effectivity (performance website, # clicks..)
… -
Operational Excellence
Agile way of Working
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● The Sourcing Governance Framework presents a multi-speed governance set-up.
● Each speed includes the appropriate KPI’s and controls for compliance and for defined objectives which will vary per (application) domain.
● For the domains that require higher agility: Ensure that suppliers collaborate in agile teams to deliver customer value within the shortest time-to-market.
● For the domains that require a high operational performance: Ensure that suppliers deliver the agreed service levels.
● For all domains the appropriate performance indicators, key roles, communication structures etc. need to be defined, implemented and monitored.
The new multi vendor (incl. Cloud) strategy also impacts our organization…
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….what we need is …
• AEGON needs to be in control of quality of services, quality of output (software), staffing, cost, etc.
• A ‘multi-speed’ sourcing governance set-up, required to effectively manage the future sourcing landscape;
• The existing ‘governance’ roles responsibilities and ‘business involvement’ within AEGON (NEXT and non-NEXT) should be aligned to this set-up (and vice versa);
• Clear relation between AEGON objectives, governance principles and sourcing initiatives including all improvement objectives reflected in a high level design of the TOM
• To work with a agile and solid operational management way of working. The delivery flows defined and described ready for continuous improvement, including Metrics, RACI and communication Structure;
• Roles and competencies defined and insight into the necessary behavioral change. Method for aligning and improving actual individual capabilities with needed capabilities.
• Clear implementation roadmap and approach to sustain the change to improve orchestration and leadership
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….and from our suppliers & partners we expect…
• That security and stability of services are a given;
• We expect knowledge of our business and understanding of what is important to us;
• We would like to be helped, to be brought a step forward, also when we are not asking;
• We are looking for added value, what value does the supplier/partners bring to us and our customers?