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Cloud sourcing and DevOps, Grip on the new world

Cloud sourcing and DevOps, Grip on the new world · Promoter Score 97% 25 years of Thought Leadership 100 ... Agile way of Working. 21 The Sourcing Governance Framework presents a

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Cloud sourcing and DevOps, Grip on the new world

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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

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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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The impact of cloud services and DevOps on the sourcing strategy and sourcing governance models

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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)

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Any roadmap to adoption of cloud is always tailor-made!

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Key question of today: ‘WHO’ is in control these days in the ‘new world’ with a multi speed and multi vendor landscape?

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…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

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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

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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

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And related to agile way of working in DevOps teams within theDemand and Supply Governance Framework…

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…requiring a shifting role for and services from traditional infrastructure and application maintenance vendors.

The impact of cloud services and DevOps on the sourcing governance of AEGON

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● …by helping people taking responsibility for their financial future

The purpose of AEGON is to help our customers to achieve alifetime of financial security….

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…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.

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… which was designed to cover different types of services, that require different kind of commitments and different types of sourcing…

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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?

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…. to become Future Fit

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Questions and discussions