It’s all about the services!

Implementation of a Service Portfolio

Nelli SerifovskiSenior Process ManagerNNIT A/S

NNIT in brief

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NNIT was born as the internal IT department of Novo Nordisk, but has now grown to become one of Denmark’s leading IT service providers and consultancies, providing a wide range of IT services to customers using fully integrated international delivery capabilities.

Our vision

By 2020, our quality and value adding IT services will make us:

• Denmark’s preferred IT outsourcing partner

• A leading international IT partner dedicated to life sciences

2012-20152,600 employees and 15th consecutive year with double digit growthNew offices in the US (Princeton) and Czech Republic (Prague). NNIT is listed on NASDAQ OMX Copenhagen A/S

2009-201120% of the employees works on sourcing destinationsNNIT builds new data centre and reaches 1,500 employees3rd office in Denmark (Aarhus)

2006-2008New offices in Philippines (Manila) and Czech Republic (Olomouc)10th consecutive year with double digit growthNNIT employee no. 1000 starts work

2000-2005New offices in Switzerland (Zurich) and China (Tianjin)First large customer outside DenmarkFirst large customer outside the Novo Nordisk Group

NNIT - Milestones & key figures

The situation:a fast growing business

Time for scalability and standardization!

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Create one central overview of services

Minimize variation in services and agreements

Anchor ownership and responsibility

Clarify the relations between services

Create a transparent cost model

Ensure strategic development of services

…so how do we do this?

We wanted to…

It all starts with the mindset…

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From an organization of computer ‘geeks’…..• A former internal IT department with friends in the

business areas• Focus on technologies and IT components – not IT

services and outcomes• Reactive and unstructured development of services

…to a professional IT service partner• IT professionals with knowledge of what their service

does for the customer(s)• Development of services aligned with customer needs

and challenges• … and at the same time maintain our values and

flexibility

Must-win-battle Project Charter; September 2009

The purpose of the Service Portfolio and Catalogue project is to

establish a Service Portfolio and Catalogue framework that serves as

the “spinal cord” of NNIT Operations. The framework is

expected to cover a Service Portfolio and a number of Service

Catalogues supported by tools, processes and governance.

The portfolio will contain all existing NNIT Operation standard

services as well as the cost of a number of these.

Expected go-live June 2010

Establishment of the framework- based on ITIL best practices

Track 1:Design of the

Service Portfolio

Track 2:Identify, structure,

and describe

Track 3:Define governance

and processes

Track 4: On-going workshops, training and awareness campaign

Organizational change management- Workshops, workshops and more workshops….

Service Level Objectives

Service Catalogue

Service Portfoliovs.

Service Portfolio Manager

Purpose: create one common language!

Design of the Service Portfolio

The Service Portfolio

The service lifecycle structure (Idea, Analyse, Design, Realise, Retire)

The data model (Business Service/Infrastructure services, Service Package, Supporting services, Enhancing services)

The Service Catalogue templates

Service (Name, ID, owner, functional area)

The Service Plan template

Tool decision:

A simple repository in SharePoint

Identify and structure services- An inside-out approach

Identify • Workshops with every team in the organisation

• Listing of all services delivered • NB: services vs. service activities

Structure • Definition of the Lines of Service• Categorize according to the data

model of the Service Portfolio• Relate services (supported by,

enabling, dependant of, etc.)

Describe • Describe services into the Service Portfolio

• Identify what is relevant to the Service Catalogue

• Publish Service Catalogue

Clarify the relations between services

Agreements (OLAs) between departments

Service relations- A time-consuming activity..

Service Package MS-SQL Server hotel

MS-SQL Database

MS-SQL Database Pool

Database healthcheck

MS-SQL Single DB health check

Database regulatorycompliancy

MS-SQL GxPcompliancy

Database service request fulfillment

Core network

Hosting

Storage – non-mirrored / mirrored

Midrange Shared

Windows server operation

MS Windows Virtual Server

MS-SQL backup

Call center (SPOC)

Service Delivery Management

Component monitoring

MS-SQL monitoring

Reporting

Service reporting

Directory services

DNS

AD

User administration

User administration

User access review

Vulnerabilityassessment

Patch monitoring

Vulnerability scan

Security Incident management and monitoring

License management

The Service Catalogue structure (phase 1)- time for the outside-in approach

One Service Catalogue• Business Services• Infrastructure services (service packages)• Enhancing services• Requestable services

Result:

Impressive – but too comprehensive and difficult to work with!Originally designed to meet the requirements of several target groups

A re-structuring was needed!

The Service Catalogue structure (phase 2)- One year after go-live

Standard Service

Catalogue

Strategic level (What can we provide)Target group: NNIT Presales and Client ManagementPurpose: input to bids and contracts

Customer requirements

Operational level(What have we agreed to provide)Target group: Customer Executives / IT departmentsPurpose: alignment of expectations on live services, KPI reporting

Customer Service

Catalogue

Service Request

Catalogue

(What have we agreed to provide upon request)Target group: Users – IT or end-usersPurpose: To support daily Service Request and Change Management

Service Governance- Dedicated roles and functions is a prerequisite!

Service Owner

• Accountable for a Service throughout its lifecycle:

− design, operation, and development of the service

− adequately allocated resources and capabilities

− profit & loss

Service Architect

• Responsible for design of services

• Assisting the Service Owner in preparing Service Plan and Business Cases

Service Portfolio Management

• Ensures consistency and quality in the Portfolio and Catalogue

• Gatekeeper for the Service Portfolio phases

• Management reporting through Service Portfolio reviews

Service Portfolio Management process- transparency throughout the service lifecycle

• Idea

• Every development initiative, input from Account Plans, Market research, corporate strategy, etc.

• Analyse

• Estimation, planning, business cases, Investment Management

• Design

• Service Design, requirement specification, procedures, instructions, test, service descriptions for the Service Catalogue

• Realise

• Live Services , operation, continual service improvement (CSI), costing/budgeting

• Retire

• Services being phased out

Idea Analyse Design Realise Retire

The Service Plan- A tool to support strategic development of services

ServiceOwner

Create Business Case Apply for funding

DivisionManagement

Single overview of proposed investments Prioritise investments Grant Funding Budgeting

Define roadmap for the service / Line of Service Include input from Account Plans and market trends Create a Value Proposition Plan for development

• resources• capabilities

Innovative and customer focused services

Transparent costing- through the ABC model (Activity Based Costing)

Cost per service activity

Cost-drivers per service

activity

Identify and define cost of all services into one single cost base

• The same cost model was introduced for all services• Finance department facilitated the process (ensured consistency)• More accurate costing of services and improved transparency across

the organisation – easier estimation for new proposals• Improved budgeting/planning

The yearly Service Portfolio review cycle

JANDEC

MAY

JUNJUL

SEP APR

AUG

OCT

NOV FEB

MAR

Service PlanMajor update

(direct input to AB, service initiativeroadmap)

Service PlanMajor update

(direct input to Business Plans / nextyears service initiative prioritied)

Service CatalogueMajor update

Service CatalogueMinor update

Service PlanFollowup

(Service Plan -> Apis)

OperMan SPM Review

OperMan SPM Review

OperMan SPM Review

OperMan SPM Review

Service PlanFollowup on initiatives

(Service review)

Service PlanFollowup on initiatives +

ABC(Service review)

Management Review

Service Catalogue

Service Plan

Sourcing Plan

Sourcing PlanMajor update

(input to service plans and AB)

Sourcing PlanMinor update

(input to business plans and APIS)

Our Service Portfolio portal

The spinal cord of operations- knowledge is power …

Customer Portfolio

Project Portfolio

KPI reporting

CRM system

BI center

CMDB

CSI initiatives

Resource Mgt.

system

Time Mgt.

Yoda: “Value to you it will provide”

Key learning points

Make sure that you have Management commitment !!

Get dedicated resources allocated !!

Create a common understanding and a common language across the organisation (make people think services!!)

Key learning points

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• Start with simple data models (do not expect the same maturity level across every team)

• Involve stakeholders (also outside the organisation!)

• Be prepared for several service catalogues (one-size never fits all!)

• Start with the design the portfolio, the catalogue, and the processes – then look for tools to support it. Don’t expect to find one single tool to meet all your requirements.

• Start with ITIL best-practise – then adapt to your organisation.

• Accept that service Portfolio Management is not implemented overnight!

Thank you!

Nelli SerifovskiSenior Process Manager

nser@nnit.com+45 3079 5758