Transcript Managing Networked Infrastructure and Operations

Module 2 [Part 2]
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Managing IT Service Delivery [Chapter 7]
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New service models
Managing risk through incremental outsourcing
Managing relationships with service providers
Managing large-scale outsourcing
Managing IT Project Delivery [Chapter 8]
◦ Managing sources of implementation risk
◦ Managing project execution
◦ Process consistency and agility in project management
Chapter 7
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Discuss new models for IT service delivery?
Discuss the issues involved in managing
relationships with service providers.
Why are outsourcing contracts difficult to
undertake?
What advice can you give to business executives
who are considering IT outsourcing options?
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Internet provides opportunities for incremental
outsourcing
Benefits include:
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Managing shortage of specialized IT workers
Reducing time to market
24-7 operations
Favorable cash flow
Cost reduction in IT service chains
Globally accessible applications
Emerging new service models
◦ ASP, On demand, SaaS, Utility computing, Grid computing
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More attractive choice
◦ Unique versus generic IT services
◦ Incremental versus traditional outsourcing
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External versus internal delivery
◦ Which services provide competitive advantage
◦ Reliability and cost of external delivery
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Hosting models and benefits
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Key decisions
Colocation hosting
Shared hosting
Dedicated hosting
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Selecting service provider partners
◦ RFP
◦ Contents of an RFP include:
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Descriptive and financial info
Plan for meeting service requirements
Risk mitigation
Service guarantees and pricing
Relationship management
◦ Processes and procedures
◦ Aligned incentives
◦ SLA [Table 7.4]
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Why outsourcing?
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Cost savings
Dissatisfaction with existing services
Desire to focus on core competencies
Forcing major organizational change
Access to skills and talent
Other factors [many]
Designing alliances
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Contract flexibility
Standards and controls
Scope of outsourcing
Expected savings and access to latest IT
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Managing alliances
◦ CIO responsibilities
◦ Performance tracking
◦ Relationship interfaces
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Managing legacies
◦ Technology problems [incompatibility]
◦ Residual process complexity [addressing problems that no longer
exist]
◦ Local adaptation [old systems addressed narrow problems]
◦ Nonstandard data definitions [different part numbers]
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Managing IT infrastructure assets
◦ Increasing complexities with mix of assets
◦ Questions to address [deployment, utilization, efficiency, value
creation]
◦ TCO [cost benefit analysis of utilization and services provided]
Chapter 8
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Why do so many IT projects fail?
Describe the characteristics common to good IT
project managers?
Discuss the difficulties involved in assessing the
risk of an IT project? How is managing a low risk
project different from managing a high risk
project?
How would you manage a project that has a very
high risk?
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Project size
◦ Risk increases with size
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Experience with technology
◦ Risk increases with lack of experience
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Requirements volatility
◦ Risk increases with moving requirements
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Managing the “dip” during implementation
◦ Expectations versus reality
◦ Performance drops for some period after cutover
◦ Importance of communications
Portfolio risk
◦ High/low risk portfolios versus balanced risk
◦ Risk and return distribution for a portfolio of projects [Fig.
8.3, pp. 316]
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Traditional methodologies
◦ Don’t necessarily work well
◦ Phases include: analysis and design, construction,
implementation, operation and maintenance
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Adaptive methodologies
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Iterative approach
Fast cycle time
Early delivery to limited end-user functionality
Skilled staff for midcourse adjustments
Focus on “buying of information” about outcomes rather than ROI
Adaptive methods and change management
◦ Acceptable design emerges gradually
◦ Involve users for change
◦ Collaboration is key
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Flow
◦ Relationship between activities of end-users
◦ Understanding of “process”
◦ Process details are not always required
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Completeness
◦ What, when, by whom checklists work best
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Visibility
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Process reviews during execution
Status reporting helps
Wall charts in one location
Others tools may be needed to audit