S3-Shared Services Model_August 14_2010

8/8/2019 S3-Shared Services Model_August 14_2010

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Aligning IT Strategy with

BusinessSession 3: Shared Services Model

Abhishek Kumar

14th August, 2010

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Symbiosis Centre for Information Technology


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Aligning IT Strategy with Business

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1. GROUP PRESENTATIONS2. SHARED SERVICES MODEL


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Getting into details: Course Trajectory

Sessions have dwelt on high level strategic alignment till now

Strategy is toothless with strong implementation.

System Integrators facilitate implementation of strategy through a shared

services model.

Subsequent sessions to deal with implementation of a strategy through a

shared services model.

Changing Roles:

Client: Mississauga Banking Corporation (MBC) : Abhishek

Groups: Changing Roles as depicted below

Final Selection: Session 10: best proposal wins

Largest Component in terms of marks

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S4: Selecting

the best vendor

S5: ROI /

Business CaseCalculationConsultants

S6: Deploymentof shared

model

S7: Costing /Profitability

SystemIntegrators

S10: ProposalBidding and

Winning the bid

StrategicBidders

S8: ITGovernance

S9:Implementation


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Introduction to Shared Services Model

Shared services model is a collaborative organizational set up, constituted by

different stakeholders, with a view to sustain IT-Business alignment within an

organization.

Stakeholders include :

Top management

ITManagement

Vendors senior leadership (SI & Products)

Vendors account & project management

ITteam, business users

Vendors project team Fixed and Variable

& the business analysts (client & vendor)

Other groups: QAG, Testing, Infrastructure

This groups primary objective is to promote solution envisioning, application

development/deployment, enhancements and support services with a view

to implement, sustain and monitor IT strategy.

This partnership is the ideal positioning for system integrators in the market

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Introduction to Shared Services Model

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Operational

Components

Innovation &

Knowledge Group

Organizational

Entities

Leadership Committee

Strategy & Management Office

Project Management Office (PMO)

Teams Fixed / Variable

Advisory Services

Implementation

Upgrade / Migration Services

Support & Maintenance Services

Quality Assurance & Testing Services

Best Practices Group

Process Analyst Group

Frameworks / Architecture Group

Reusable Collateral/Asset Development Group


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Organizational Entities

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Entity : Leadership Committee Stakeholders

Provides strategic direction

Supreme decision making authority

Periodical review

Shared services model Sponsor (CxO) , Directors

Vendor Practice Head

Entity : Strategy & Mgmt Office Role

Identifies areas of IT Optimization

Project prioritization, monitoring,

Issue tracking & holistic coordination

Shared Services model Manager

Managers

Vendor Account Managers

Entity : PMO Role

Managing project delivery

Tactical control , Resource, Technology and

risk management

Reporting

Issue resolution

Departmental Heads,

Vendor Delivery Manager

Entity : Teams Fixed /Variable Role

Fixed team: all project executions

Dependent on minimal project

requirements

Variable Team: buffer - on project need

basis. Ramped up / down on the basis of

project requirements

Operations Team: Client and Vendor Architects/ Leads/

Developers / Consultants/Analysts


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Operational Components

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Component : Advisory Services

Strategy definition

Application Portfolio Analysis

Application Rationalization / Consolidation

Vendor/product Evaluation

Road Map and future state architecture definition

Component : Implementation Services

POC Development

Analysis and requirement elicitation/elaboration services

Design Services Build & UAT

SIT & UAT

Component : Upgrade / Migration Services

Content Migration

Version Migration

Component : Support & Maintenance Services Level 1: Support: Voice & Helpdesk Services

Level 2: Support: Application Maintenance / Infrastructure Monitoring

Level 3: Enhancements | Level 4: KPO Support

Component : Quality Assurance & Testing Services

QA Monitoring & Process Audits

Reviews

Performance / Load Testing


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Innovation & Knowledge Group

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Sub Group: Best Practices Group

Best Practices aggregation and dispersal

Research on emergent technology, standards, architectural issues

Validating projects estimates and technical feasibility - Standardize estimation

Technical guidance /Process Simulations

Sub Group : Process Analyst Group

Coordinate model setting up

Define , monitor , standardize and review project processes SDLC/AGILE Implementation, migration,

consulting

In house consulting for areas of process optimization

Process Standardizations: Estimation process and methodologies

Sub Group : Frameworks / Architecture Group

Assess existing application landscape

Facilitate creation and institutionalization of corporate / departmental taxonomy

Evaluating IT strategy with future state enterprise architecture

Define Integrated approach for design and implementation

Create tools, frameworks for reducing development/migration cycle times

Sub Group : Reusable Collateral/Asset Development Group

Minimize product customizations through re use

Create repository of reusable project components

Maintain resource backup

Facilitate project inductions


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How does it sync with IT strategy?

Infuses existent strategy with fresh insights

From collaborating with vendors

From Interdepartmental cooperation

Structured (non siloed) development

Operational efficiency

Process Improvements

Institutes a culture of knowledge management and innovation

Greater control and visibility into IToperations

Cost Advantages

Variable teams ~ cost optimization

Reuse prevents reinvention of wheel ~ saves time, hence money.

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Individual Activity # 2 (14/8/2010) : Topic

Prcis oftodays class

1 A4 size paper

No embedded objects

Deadline: 17th August, 2010 - 9 AM IST .

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Back Up Slides : GA 2:Group Assignment

FALL OF IRIDIUM


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Fall of Iridium Back ground Company back ground :

Created by Motorola.

Built first affordable car radios in the 1930s and robust army walky-talkies

In 1987 , to counter limited coverage of then analog cell phones, 3 engineers

conceptualized an orbital coverage of 66 Low Earth orbit (LEO) satellites to

provide planet wide line of sight , global mobile coverage.

Competition then: Agency which had a handful of Geo sat satellites at 36 k

large handsets and 0.25 second delays.

Iridium Program : beginnings

Target market: Explorers , jet set executives , government agencies

Challenges:

Launching 66 satellites

Switching Softwares : Due to high orbital speed of LEO sats

Connections to terrestrial telephone networks , gateways

After initial skepticism, the project was approved. Initial project cost

estimates: 5 billion USD.

In 1991, Motorola carved out Iridium LLC, as holding entity.

Motorola helped in Satellite design , launch, system oeprations and

maintenance.

Motorola retained involvement and financial stake in the project to have a pie

in projected financial success.

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Fall of Iridium How it transpired

IRIDIUM LLCs initiation

Iridium IPO : 20 USD per share June 1997

Stock rocketed to 72 USD per share April 1998

Total market cap as of December, 98: USD 6 billion approximately.

Project beginnings

Flawless launch of all 66 satellites to LEO

Global cell phone telephone services in November December, 1998

7 years after carved out of Motorola

Problems

1.4 Kg handset @ USD 2.9-3 K

Call charges USD 6 (Approx) per minute

Line of sight (outdoor) connections - Good for explorers but not for executives

Primary customer segment increasingly switched to email / cell phones (with

inter service provider roaming) less expensive and more convenient.

The END: August 1999 Defaulted on 1.5 billion USD loan and on August 12,

1999, filed for Chapter 11 bankruptcy plea.

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Fall of Iridium Aftermath

Technological Prowess

Cutting edge technology developed

Hardware /Software rerouting/switching telephone calls through the sat

constellation and terrestrial networks

Managed interdependencies between programs and vendors successfully.

Were on schedule and within the budget.

Teams dedication: Long hours were put in

Vicious Circle: Commitment trap Motorolas interest

Political Implications

Known issues with technology and the market.

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Group Activity # 2 (12/8/2010) : Topic

Assess the documented strategic alignment for Iridium in terms of 4 quadrants

Which alignment model would you have recommended for Iridium, to salvagethe situation, prior to its bankruptcy?

Define roles for various entities Top management / IT management

Define IT focus and performance criteria

Presentation scheduled on : Next Class Wednesday : 14th August , 2010

Slide Limit: 7 (Excluding title slide)

Group Participation is required.

Compliance to course conduct is vital.

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Documents

S3-Shared Services Model_August 14_2010