Strategies for the Outsourcing Models of the Future

Matthew Burrows | Director | BSMimpact

The changing Landscape of Digital Supply

Increasing Complexity of the Supply Chain

• Multiple Service Providers are here to stay• Cloud adoption

• Social platforms

• Niche providers

Average # Service Providers

1-2

3.7

10+

15-

20

+

Source: Gartner 2014

Adaptive & Integrated

Disciplined Multi-sourcing

Selective Best of Breed

Single/Prime

Managing the Digital Supply Chain

• Multi Supplier Management with SIAM• What is SIAM (Service Integration and Management)

• 5 elements• Governance

• Management

• Integration

• Assurance

• Coordination

A consistent User Experience

•Delivering:• single point of contact with common interface

• integrated processes for Service Delivery

• coordinated processes for Provider Management

• defined Service Delivery platform• common processes across all Providers

• minimum ‘requirements’ for new Providers

The SIAM Ecosystem

The focus of the SIAM layers

The Customer Organisation

• Finance, Strategy & Architecture

• Business Relationships & Demand

• Service Portfolio Management

• SIAM Governance (Goals & Exceptions)

• Policy & Standards Ownership

• Strategic Sourcing

• Enterprise Risk Management

• PMO & Business Change

Customer typically retains Strategy and Demand activities

The Service Integrator

• Alignment of the Service Model

• Service Governance & Assurance

• Integrated Delivery Management

• Design Management

• Transition Management

• Operations Management

Service Integrator typically provides:

The Service Provider

“Traditional” Service Line Delivery

• Service Innovation & Improvement

• Cross Supplier Collaboration• Constructive Culture• Process Integration• Tooling Integration (depending on tooling strategy)

• SIAM also applies to some retained Supply functions like:• Business Analysis• Project Delivery• In-House Application Management etc.

Service Line Providers typically continue to provide:

Bringing it all together

SIAM Structures

Growing Demand for Digital Skills

Managing Digital Skills

Data Driven Recruitment

Assuring Value

Maximising internal value

Planning for and developing future skills

SIAM CASE STUDY

SIAM Case Study• Large NZ Government Agency

• 10 Year Business Transformation

• Target Operating Model Agreed• SFIA v6

• COBIT5

• ITIL v3 / SIAM

• Prince2 and MSP

• TOGAF 9.1

Initial Requirement

Current state pain point mapping

Future features mapping

Capability maturity (COBIT5)

Organisation RACI mapping

Staff skills and staff numbers

Financial overlay

Sourcing approach and suppliers

Improvement initiatives scope mapping

Step 1. Identify Current Skills

Step 2. Agree Processes & Roles (Release Management)

RELEASE AND DEPLOYMENT MANAGEMENT

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Plan Release Package

Deployment

Start

Plan Build, Test and

Deployment

Build and Test Release

Configuration

Test Services and Pilot

Prepare Deployment

Perform Transfer, Deployment and

Retirement

Verify Service Deployment

Provide ELS

Close Deployment

Close Service Transition

Change Mgt

Emergency Release?

Build, Test and Deploy

Standard Release?

No

Problem Mgt

Problems

Other ST to address

Review RFC and check

Risk Assessment

Release requires ST

involvement?

Yes

No

PIR conducted

Accepted?

End

No

Yes

Notify ST that Release &

Deployment Complete

SACM

Change Mgt

No

Yes

Define ELS Criteria

Coordinate ELS

Yes

SIAM Manager

Service Tower

OLA’s

OLA’s

Underpinning Contract

SLA

Step 3. Calculating FTE effort for SIAM Roles

Simple = 2hComplex = 8h

Simple = 2hComplex = 2d

Simple = 1hComplex = 4h

Simple = 1hComplex = 4h

Simple = 2hComplex = 8h

Per Release Per Year

Activity Simple Complex # Simple # Complex

Build, Test & Deploy (STD Release) 2 8 400 150 2000

Plan Build, Test & Deployment 2 8 1000 100 2800

Build & Test Release Configuration 2 16 1000 100 3600

Testing and Pilot 1 4 1000 100 1400

Prepare Deployment 1 4 1000 100 1400

Total FTE Hours11200

Total FTE's 6

Process Activities Role Effort (Hrs) Qty SMC Heritage NSPReporting Release & Deployment Manager / Process Owner 8 52 416

Release Coordinator 2 52 104 104Management/Coordination Release & Deployment Manager / Process Owner 4 52 208

Release Coordinator 2 52 104 104Enterprise Release Board (ERB) Release & Deployment Manager / Process Owner 2 52 104

Release Coordinator 2 52 104 104Release Calendar Release & Deployment Manager / Process Owner 2 52 104Communications Release & Deployment Manager / Process Owner 2 52 104

Release Coordinator 2 52 104 104Release and Deployment Planning Release Coordinator 1 52 52 52Release and Deployment Planning - Large/Complex Release Analyst/ Packaging 8 200 1600Release and Deployment Planning - Small/Simple Release Analyst/ Packaging 2 1200 2400Release and Deployment Planning - Large/Complex [STD] Release Analyst/ Packaging 4 200 800Release and Deployment Planning - Small/Simple [STD] Release Analyst/ Packaging 1 400 400Release Build and Test (Packaging) - Large/Complex Release Analyst/ Packaging 24 200 4800

Release Build and Test (Packaging) - Small/Simple Release Analyst/ Packaging 4 1200 4800Deployment - Large/Complex Deployment Technician 4 20 80Deployment - Small/Simple Deployment Technician 2 1200 2400Deployment - Large/Complex [STD] Deployment Technician 2 200 400

Deployment - Small/Simple [STD] Deployment Technician 1 400 400Early Life Support Early Life Support Coordinator 2 52 104

Early Life Support Analyst 40 200 7200 800Escalation Early Life Support Coordinator 1 52 52

Early Life Support Analyst 2 52 93.6 10.4Customer satisfaction Release & Deployment Manager / Process Owner 3 12 36

Release Notes Release & Deployment Manager / Process Owner 16 1 16Training Release & Deployment Manager / Process Owner 4 6 24

STAGE 1Roles (SIAM Manager) Role Name Volumetric / Activities FTE effort

Release & Deployment Manager / Process Owner Cyclic 0.7Capability Improvement Manager Cyclic 0.11Early Life Support Coordinator Cyclic 0.1

Roles (SIAM Tower) Role Name Volumetric / Activities FTE effortRelease Coordinator Cyclic 0.3 0.3Release Analyst/ Packaging # of Releases 8.0Deployment Technician # of Releases 1.8Early Life Support Analyst Complex Non Standard Only 4.0 0.4

Totals 0.89 14.04 0.69

Step 3. Calculating FTE effort for SIAM Roles

Position Group Process Role FTE Pos CountSource Heritage Match Sk1 Lv1 Sk2 Lv2 Sk3 Lv3 Sk4 Lv4 Sk5 Lv5

Manager, Infrastructure Services Management NSP SCM Service Owner 0.04 0.98 Secondment (71-76) x 4 SLMO 5 RLMT 5 POMG 6

Manager, Infrastructure Services Management NSP SLM Service Owner 0.15 SLMO 5 RLMT 5 POMG 6

Manager, Infrastructure Services Management NSP ITSC SCCoord 0.05 COPL 5 METL 4 TECH 4

Manager, Infrastructure Services Management NSP Request ReqFulCoord 0.24 CSMG 4 TECH 4 METL 4

Manager, Infrastructure Services Management NSP Capacity CapPlanner 0.18 CPMG 5 TECH 5

Manager, Infrastructure Services Management NSP Event OpsHubCoord 0.11 ITMG 5 TECH 5

Manager, Infrastructure Services Management NSP HR PeopleMgr 0.20 PEMT 5

Manager, Infrastructure Services Management NSP Position 0.98 Secondment (71-76) x 4 SLMO 5 RLMT 5 POMG 6 CPMG 5 ITMG 5

Manager, Application Services Management NSP SCM Service Owner 0.04 0.86 New 58 x 1 SLMO 5 RLMT 5 POMG 6

Manager, Application Services Management NSP SLM Service Owner 0.15 SLMO 5 RLMT 5 POMG 6

Manager, Application Services Management NSP ITSC SCCoord 0.05 COPL 5 METL 4 TECH 4

Manager, Application Services Management NSP Request ReqFulCoord 0.24 DLMG 6 TECH 5 METL 4

Manager, Application Services Management NSP Capacity CapPlanner 0.18 CPMG 5 TECH 5

Manager, Application Services Management NSP HR PeopleMgr 0.20 PEMT 5

Manager, Application Services Management NSP Position 0.86 New 58 x 1 SLMO 5 RLMT 5 POMG 6 CPMG 5 PEMT 5

START Application Support NSP Incident ResGrpAnal2 0.40 1.80 Secondment (67-87) x 12 USUP 3 METL 4 PBMG 4 TECH 5START Application Support NSP Request FulFilmentAnal 0.49 CSMG 3 TECH 4 SCAD 2START Application Support NSP Problem ProblemAnalyst 0.31 PBMG 4 TECH 5START Application Support NSP Release ELSAnal 0.44 USUP 4 PBMG 4 TECH 4 ASUP 4START Application Support NSP SLM ServLevAnal 0.16 SLMO 4 INAN 4START Application Support NSP Position 1.80 Secondment (67-87) x 12 USUP 4 METL 4 PBMG 4 TECH 5 CSMG 3

Transition Specialist Heritage Release RelAnalPack 8.04 12.01 Existing RELM 4 ASUP 4 HSIN 4 SYSP 4 CHMG 4

Transition Specialist Heritage Change ChangeAnalyst 3.96 CHMG 4

Transition Specialist Heritage Position 12.01 RELM 4 ASUP 4 HSIN 4 SYSP 4

Support Manager Heritage Event OpsHubCoord 0.34 0.95 Existing ITMG 5 TECH 5

Support Manager Heritage Incident ResGrpTL 0.14 USUP 3 METL 4 PBMG 4 TECH 5

Support Manager Heritage SLM ServLevAnal 0.47 SLMO 4 INAN 4

Support Manager Heritage Position 0.95 ITMG 5 TECH 5 SLMO 4 INAN 4 USUP 3

Application Support Analyst L2 Heritage Incident ResGrpAnal2 3.61 7.57 Existing USUP 3 METL 4 PBMG 4 TECH 5Heritage Release ELSAnal 3.96 USUP 4 PBMG 4 TECH 4 ASUP 4

Application Support Analyst L2 Heritage Position 7.57 USUP 4 PBMG 4 TECH 5 ASUP 4 METL 4

Application Support Analyst L3 Heritage Incident ResGrpAnal3 3.52 3.52 Existing USUP 3 METL 4 PBMG 4 TECH 5Application Support Analyst L3 Heritage Position 3.52 USUP 3 METL 4 PBMG 4 TECH 5

Operations Analyst Heritage Event Operator 1.70 1.70 Existing ITOP 4 TECH 4Operations Analyst Heritage Position 1.70 ITOP 4 TECH 4

Request Fulfilment Analyst Heritage Request FulFilmentAnal 24.95 24.95 Existing CSMG 3 TECH 4 SCAD 2Request Fulfilment Analyst Heritage Position 24.95 CSMG 3 TECH 4 SCAD 2

Deployment Technician Heritage Release DeployTech 1.78 1.78 Existing RELM 3 ASUP 3 HSIN 3 SYSP 3 CHMG 3Deployment Technician Heritage Position 1.78 RELM 3 ASUP 3 HSIN 3 SYSP 3 CHMG 3

Step 4. Combining SFIA Roles to Positions

Step 5. Create PD’s and Source

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What can we learn from the case study?

• Frameworks work best when combined and aligned to best practice, taking elements from each

• COBIT and SFIA can be used to ‘book end’ the management processes (RACI, KPI’s and Skills)

• Combining of Roles into Positions based on Skills and Workloadcreates a fit for purpose Organisation Design

• Clearly defined PD’s assist both with adoption of new roles and sourcing / recruitment of new positions

• Transparent and fair analysis of capability reduces HR and IR issues

Summary• Frameworks like SIAM and SFIA can assist you in governing and managing your

digital supply chain

• SIAM defines the Processes, Roles and Structures within a multi supplier environment (Why, What & How)

• SFIA provides a common language for capability, allowing you to build, buy or borrow resources with confidence (Who)