IT Shared Services

Nancy DesormeauDirector GeneralEnterprise Partnership Management, Information Technology Services Branch

Government and Health Technologies Conference and Expo - March 2006

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Presentation Outline

•Information Technology (IT) in Government•IT Shared Services Vision and Implementation Strategy•Effective Governance•Lessons Learned

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Information Technology in GC

Over 16,000 Full Time Equivalents (FTE) providing services to approximately 284,000 GC employees (excluding DND military), with an average FTE annual growth of 7% (since 1999)

Desktop – 315,000 licensed with over 80% on Microsoft

Data centers – in excess of 100 centres with numerous mainframes and over 7,000 midrange servers

7 different financial / material and 14 different HR applications in use

15-20 different configurations of each major software system (SAP and PeopleSoft)

Approx. 800 significant interfaces between HR/Finance and other systems

FY 2003-04 $4.95BIT Shared Services

Telecom$780 M (16%)

Data Center Services$1,050 M (21%)

Desktop Services$1,490 M (31%)

Corporate Admin Shared Services include

Corporate Admin Systems$350 M (7%)

Program Applications$1,160 M (23%)

Security & Architecture$120 M(2%)

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~ 5% Common

• Fragmented• Lack of common standards• Expensive to operate• Difficult to pull together

information from a government-wide perspective

• Service levels vary widely

External Svc Channels

IT Services

Corporate Administrative

Services

Current Target

~24% Common

< 5% Common

> 50% Common

~ 75% Common

~ 40% Common

• Efficiencies-economies of scale • Standardization• GC-wide services support citizen-

centric delivery of programs• Credible, consistent, timely

management information • Common levels of service

Common Infrastructure and Service Delivery (CISD)

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Shared Services

“Shared services enables high performance. It allows governments to focus their precious resources on high-impact activities that are core to their missions, rather than on routine administrative functions. The end result is improved outcomes at a better cost for the citizens and businesses governments serve and, ultimately, better public-sector value”.

Accenture Report, January 2005

Service and Perceived Responsiveness

Sale

s and

Effi

cienc

y

Only the shared services model answers the needs for both scale and efficiency, and service and responsiveness

Source: "Driving High Performance in Government: Maximizing the value of Public-Sector Shared Services", Accenture, Feb. 2005.

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IT Shared Services • Data Centres• Desktops• Telecommunications• Application Hosting• Infrastructure Protection• Network Management• Asset Management• Help Desk Services• Secure Channel• Content Management

POWERED BY

ITShared Services

Services toGC Employees

Services toCanadians

All OtherGovernment

Programs

UNALIGNED SHAREDALIGNED

IT Shared Services Vision

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Stakeholder Engagement

Suppliers

Wave 1Proof of Concept

Governance

StrategStrategy & y &

ApproaApproachch

Corporate DeliveryIT-SSORs & Rs

Departmental Design Teams

DepartmentalWorkshops

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Leadership / Partnership

Treasury Board SecretariatCIO Branch

Dept’s / CIOs

IT-SSO

ITSHARED

SERVICES

TRANSFORMATION, GOVERNANCE AND ENTERPRISE

ARCHITECTURE

OPERATIONAL EXCELLENCE

SERVICE LIFECYCLE/TAKEUP MANAGEMENT

SELECT / CONSUMEPARTNER / ALIGN

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DepartmentsProgram-Specific Applications

Privacy / Security

Servers/Storage

Datacenter

Network

Enablers (IM Tools, e-PASS, Service Brokers)

Users / Access Devices

IT Shared Services (IT Shared Services Organization IT-SSO)

Where the IT Shared Services Business Fits in the GC IT

Environment

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IT-SSO Implementation Strategy

SMIPOperational Excellence

ORGANIC GROWTHNew/Current Customers – by Leveraging ITSB Services

1

IQTTDepartment Waves

2ADOPTION

Specific Product Request

3

ITSB Services

Shared Services

PARTNER & LEVERAGE(DND, CRA, Service Canada)

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ALIGNMENT ACTIVITIES

Guidance and Direction Policies

Standards Processes

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IQTT: A Sound Methodology

Qualification Future StateIdentify Service Transfer Transformation

• Due Diligence • Business SLA Reviews

• People

• Go now or go later

• R’s & R’s• Operating Costs• SLA’s

• Rationalize• Reduce Complexity and Costs• Sourcing

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Product Visions & Maturity Roadmap

Usage

IT-SSO Business Model

Product and Service Vision and Strategies

IT Shared Services Business Case

Unaligned Aligned Shared

Usage

Data Centre Facilities

Networks, Voice & Data

Common Enablers

Service Take-up• Organic Growth• IQTT - Department Waves• Adoption• Partner & Leverage

Service Development, Migration, Ops Excellent Projects• Service Management Improvement• National DC strategy and swing space• Disaster Recovery Service• Shared Fibre services• Brokering Vital Events Service Lines

Usage

Distributed Computing Usage Software

LicensingDesktop HW

RenewalMessaging Desktop

ManagementBrowser Based-Apps

UsageHost Servers, Data Apps

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Transformation is Possible With:

Leadership

Investment StrategyManagement of Change

Realistic TargetsOperating Model

Management of TechnologyPerformance Management

Effective Governance

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“An effective … governance structure is the single most important predictor of getting value from IT”

-- Peter Weill, MIT, April 2003

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Collaboration with internal and external stakeholders An Enterprise-wide focus A relationship-based framework Effective horizontal and vertical communications Clearly defined accountabilities and responsibilities

“The suite of management mechanisms that balances the decision rights of multiple constituencies

and the framework that encourages desirable behaviours by all stakeholders”

- Gartner Group

Effective Governance

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3 Tiers of Governance Accountabilities

Ope

rati

onal

Ac

coun

tabi

litie

s S

trat

egic

Par

tner

ship

sEn

terp

rise

-Lev

elEx

ecut

ive

Ove

rsig

ht

Tier 1: Enterprise-Level Executive Oversight Sets the vision, direction and strategies for Enterprise-wide services Provides direction, policy and standards applicable across GC departments and agencies

Tier 2: Strategic Partnerships Champions the Enterprise-wide view in decision-making to ensure effective horizontal coordination of IT activities Supports philosophy of inclusive, open, and shared discussions achieved through goodwill, collaboration and cooperative partneringAims at achieving a balance between proactive innovation, agile decision-making, and ensuring that risks are appropriately managed

Tier 3: Operational Accountabilities Provides ongoing direction, management, and oversight for the delivery of IT shared service and of stakeholder relationships

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Lessons Learned to Date

•Set the VISION, keep it simple, share it often, with everyone•Communicate up, down, in & out of government•Build a plan and “how-to” approaches that all can understand•Keep ongoing operations on track•Show how you are “improving” ongoing operations•Deputize your leadership team to own the change•Assign a portion of workforce to build/support the change•Bring in top talent (from OGDs, outside GC…)•Be visible as a leadership team•Find partners that will play, prove it works•Stop non-core, low value and redundant work•Organize for accountability, clarity and to support new business

IT Shared Services

Nancy DesormeauDirector GeneralEnterprise Partnership Management, Information Technology Services Branch

Government and Health Technologies Conference and Expo - March 2006