Solving for IT integration: SIAM · 2020-02-24 · every participant supporting IT, within and...

kpmg.com

Solving for IT integration: SIAM

© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. NDPPS 867754

Contents

IT governance today 02

The CIO dilemma 04

The client comes first 06

Contractual enforcement 07

The efficiency of fairness 08

SIAM design 10

Client is service integrator—a pragmatic SIAM implementation in six steps 12

How can KPMG help? 16

1.

2.

3.

4.

5.

6.

7.

8.

1Solving for IT integration: SIAM© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. NDPPS 867754

IT governance today

Herding cats. Everyone who’s ever managed a multiprovider environment knows this phrase and perhaps even uses it, or its variations, with some frequency.

Information technology (IT) used to be far less complicated. Prior to the influx of as-a-service, big data, autonomous-this, virtual-that, automated, augmented, and other technology innovations, which were subsequently followed by the array of support approaches required to maintain them, CIOs ruled what were fairly linear command-and-control roosts. IT service governance for most companies was all under one roof, literally or figuratively. Sometimes all in one room. Sometimes nonexistent. But not anymore.

Today’s IT service governance landscape is a complex, multifaceted multiprovider environment, with the CIO at the center. A tsunami of complexity created new demands and a new IT reality. More and more roles are being outsourced to third parties or are influenced internally by those with third-party expertise. One company does the network, another company does the software, a third company does the apps, a fourth does the storage, and so on and so forth. With fresh waves of complexity appearing daily and instant demand for clarity and understanding, the ability to respond with the greatest possible speed, accuracy, and agility requires an environment with more diverse skill sets than ever before. C-suite leaders have become more technically savvy, more demanding, and less tolerant of IT’s inability to move at the speed of business. This shift has transformed the CIO role from being a boots-on-the-ground colonel to a command center general, spurring action from a distance and administrating across a vast and eclectic environment. But while IT leaders intuitively understand the need for better service integration across their landscape, few understand how that can be effectively implemented or what new tools, if any, can help them do so.

When the rules change (as they did) the tools must improve, and in the area of IT governance, they have. An effective and fairly new toolkit has emerged that is

now delivering success to the CIOs and companies that are willing to adopt its insights and leverage them against the challenges of today’s IT governance. This process and approach toolkit can save time, save money, reverse time loss, and eliminate unnecessary work.

Best of all, service integration and management, or SIAM, is not a proprietary product. Any company can use it to enhance success. Think of SIAM as a catalog of tested service management approaches and processes that rein in inefficiencies. SIAM techniques counter the irritations that have entered the CIO’s world in the form of multiprovider environments including as-a-service providers, third-party resources, and even internal resources not fully aligned with the company’s IT mission.

SIAM thinking has emerged organically as a model that offers an integrated menu within an easy-to-grasp framework that can be articulated as required by the CIO to smooth rough spots and help his or her department run more efficiently. SIAM helps CIOs assess and pull together internal IT resources as well as outside providers (suppliers) and services to synchronize efforts, establish common ground, collaboratively resolve problems, and decrease unplanned work. By adopting SIAM discipline, companies can improve IT management by unifying multidepartmental efforts.

Perhaps most usefully, SIAM brings together a collection of independent processes and harnesses their collective power to increase IT management success. You don’t need extra funding or a special project to start implementing the SIAM mind-set. The six steps described below can pull focus to the pain points your organization is feeling now and begin to point you toward potential remedies. SIAM is essentially a collection of new rules derived from known obstacles that today’s CIOs face—rules designed to end border wars and confrontations and amplify positive results for everyone. When the rules are followed, everybody gets rewarded.



The CIO dilemma

At the heart of it all is the CIO. The CIO role has grown beyond a need for technological proficiency alone and now requires management foresight and administrative proficiency as well. While there has always been a managerial element to the CIO role, the influx of third-party providers (including internal and external providers, such as cloud-based providers and as-a-service options) has created an environment comprising multiple elements that, in many cases, do not work well together. There are numerous reasons for this, not the least of which is that, in some cases, the CIO doesn’t even have final say on which third-party providers are brought into the mix. It’s easy to see how rivalries and turf wars can erupt quickly.

SIAM thinking levels the playing field for all participants via its use of a service integrator team, which replaces the obsolete command-and-control-under-one-roof model with processes to enforce integration across a wide landscape. The service integrator team is assigned tasks and given tactics that empower it to integrate performance, problem/incident response, and other key functions across the multiprovider environment. In this sense, the service integrator team, generally led by the CIO organization, becomes the de facto client of every participant supporting IT, within and outside the company. With SIAM, all efforts go toward serving the client first. With that single declared priority for all activity, order gets restored and loose or troublesome elements fall into line. This can occur because the service integrator team controls SIAM tools that hold each team member accountable for their actions wholly in the context of serving the client first and themselves second.

As the following models illustrate, the service integrator team almost always reports to the CIO organization, whether its team members are acquired from within the company or from an outside supplier. From the outset, the service integrator team uses mutually agreed-upon processes to enforce environment-wide cooperation while offering environment-wide support to any party encountering difficulty with any effort. There’s no blaming, no shaming.



The client comes first

SIAM helps ensure unified allegiance by casting the service integrator team as a client advocate and by always putting the success of the client/service integration first. This unassailable prioritization quickly eliminates confrontation, infighting, and finger-pointing. All too often, when a problem arises in an IT multiprovider environment, it’s every person for themselves, and the problem du jour becomes a hot potato everybody tends to throw to somebody else and always with a self-protecting reason or excuse. By putting the client first, SIAM effectively equalizes all members of the team. With SIAM thinking, assume providers 1, 2, 3, and 4 have agreed to put the client first. With such an agreement, if provider 2 has a blocker, then providers 1, 3, and 4 immediately rush to provider 2’s aid to provide support without recrimination—in service of the client first and themselves second. SIAM is an enforceable, all-for-one and one-for-all model—with backstops.


Contractual enforcement

Among the most accessible SIAM tools is contractual enforcement. Contractual enforcement legally binds third-party IT suppliers to SIAM-driven strictures of cooperation and compliance at the contract level, in writing, as part of the agreement. This gives the service integrator the contractual power to enforce cooperation. All too often, contracts are written and signed without team-supportive cooperative language included, and a bad contract is worse than no contract. SIAM remedies that.

Poorly executed contract and/or service-specific performance metrics can derail effective IT governance when they emphasize avoiding service-level impacts rather than achieving success for the client. A poorly crafted contract of this sort empowers providers to devolve into finger-pointing (“I didn’t, I can’t, I won’t”) rather than achieving collaborative resolution (“I will, I can, I must”).

7Solving for IT integration: SIAM © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. NDPPS 867754

The efficiency of fairness

When you unpack SIAM you find, at its core, enforced fairness. With the proper contracts in place, nobody can step outside of fair behavior, even if they want to. Fairness saves time and money. As complexity increases with no end in sight and the CIO’s role transforms more toward managing multiprovider environments, fairness grows more essential, extending to partners brought in from outside the CIO purview.

— According to the 2019 Harvey Nash/KPMG CIO Survey report, 63 percent of organizations have at least one-tenth of their tech spend controlled outside IT, and this is an upward trend, increasing the need for both integration and governance.

— Adoption of Agile and DevOps models, while useful with some aspects of speed and interteam collaboration, can also contribute negatively to larger integration issues due to the constrictions and team isolation inherent in those models.

— IaaS, PaaS, and hosted private cloud services are on the rise. More workloads are being moved to the public cloud. Certain applications remain in dedicated private cloud environments for security, regulatory, or competitive reasons, and the ability to integrate them often suffers.

— Manufacturing, software, and high tech sectors are shifting toward decentralized process models, where business units perform IT processes themselves and/or employ global business services models to do so. Both approaches are viable, but each can further integration complexity.

— Overall, complexity scenarios are projected to inundate CIOs as the influence of divergent resourcing (including automation and digital labor) and the impact of digital development techniques continue to escalate standardization, integration, and cooperation agendas to the forefront

— While some CIOs are financially empowered to tackle these issues with innovative and transformational internal approaches (including leveraging external providers to act in integration roles), funding shortages for IT governance have historically made that type of investment difficult for most companies. The power of SIAM to fairly orchestrate and integrate multiple

service provider of services (business services as well as IT services) by prioritizing client success facilitates a unified, efficient organization that benefits all participants. Without SIAM’s safeguards, outsourced service provider hired to work collaboratively tend to fail due to unanticipated (or even anticipated) barriers to integration. This results in inefficiency, conflict, competitive posturing, and failure to work well together.

SIAM models ameliorate conflict by identifying and focusing on success factors directly impacted by multiple providers. The graphic to follow illustrates the scope of governance elements that comprise the SIAM framework.


Sample scope of SIAM inputs

Key service integration points in multiprovider environments

The graphic above illustrates the many facets of IT governance that should fall under SIAM oversight. The goal of SIAM is to maximize productivity by effectively integrating multiple service providers and holding them to more enlightened, client-focused responsibility.

Effective SIAM methodology:

— Introduces tools to service providers and internal resources that consolidate reporting, enhance data accuracy, and drive operational transparency

— Applies leading-practice governance and service standards management across service providers and internal resources

— Requires contractual accountability and service provider/internal resource collaboration

— Contractually enforces integrated problem and incident management

— Anticipates project portfolio and transition impact across service providers and internal resources

— Provides end-to-end service provider/internal resource service management

— Builds out service catalog/request management assets

— Supplies support for audits

— Contractually ensures expectations are communicated

— Delivers repeatable service provider onboarding/offboarding process

Business integration: — SLA alignment

— IT/business service alignment

Operational integration: — Change coordination

— Major incident management

— Root Cause Analysis (RCA) management and follow-up

— Request fulfillment coordination

— Release scheduling

— Quality reviews

— Program controls

— Service continuity

— Service portfolio management

— Service catalog management

— Asset management (including Configuration Management Database (CMDB))

— Knowledge management

— Performance management

Governance integration: — Dispute resolution

— Committee management

— Compliance monitoring

— Policies and procedures

Reporting integration: — Service health reporting

— Performance reporting

— Compliance reporting

Process and controls

Enabling technology

Strategy and policy

Data, analytics, and reporting

Services and engagement

Organization and oversight

Governance model


SIAM design

There are four core SIAM implementation models. The key variable is the scope of responsibility retained by a company’s internal IT department, which can but is not required to serve as service integrator. In each model, the CIO’s IT department has different opportunities and challenges.

Four models of SIAM

Benefits Challenges

Direct control over service integration delivery

Independent of service delivery providers

Potential to be more flexible and business aligned

Simplified commercial/contractual arrangements

— Requires investment in people, process, and tools

— Low/No risk transfer to providers

— Full control over service integration delivery

— Transfer of risk to third party with commercial accountability

— Direct control over key aspects of end-to-end service provisioning

— Loss of direct control

— Role is not independent—they have a vested interest in delivery/may exhibit prejudice toward other service providers (or be accused of doing so)

— Depending on the provider, they may not have the appropriate experience, people, skills, and/or processes to perform

— Non-SI providers commonly usurp the role and go directly to client

— Specialist skills and experience

— Their core business

— Transfer of risk to a third party, with commercial accountability

— Independent from services/service providers

— Loss of direct control

— Lack of skin in the game; harder to drive appropriate behaviors

— Introduces an additional provider into service provisioning

— Contractually and commercially more complex

— Service is still evolving; good talent can be hard to find

Model 1: Client is service integrator (SI)

Model 2: Service integrator (SI) is one

of the primary service providers

Model 3: Service integrator (SI) is a 3rd Party

Specialist

Model 4: Full end-to-end outsource (provider is, in effect, SI)

Client

Client

Collaborative agreement

Collaborative agreement

Service provider

Service provider

Service providerService

provider

Service provider

Service provider

Service provider

Service provider

Service provider

Service integrator

Service integrator

ClientPrime contractor

Service A

Service A

Service integrator

Client Service integrator



Client is service integrator – A pragmatic SIAM implementation in six steps

For a variety of reasons (including limitations on investment, contractual/commercial considerations, and the evolving nature of SIAM processes), 75 percent of the companies that implement SIAM choose Model 1, in which the service integrator team assumes the role of client to unify and align the efforts of multiple providers. This cost-effective and pragmatic implementation of SIAM has seen much success and merits consideration.

Below are six steps CIOs can take to kick-start SIAM adoption using Model 1, client is service integrator, the most pragmatic model with the shortest path to success.

SIAM thinking begins by inspecting many familiar-sounding IT functions (especially those related to operational integration) through a dynamic new lens. If necessary, SIAM pulls key aspects from each element and retools them contractually as contributors to a revitalized service integration environment.

— Operational integration becomes the bedrock of strong, overarching IT service management. Key processes are selected and standardized across all suppliers and internal resources. This forges a foundation of cooperation and interoperability. Standardized planning, management, scheduling, and monitoring serves as the “glue” of productive integration.

— Business integration expands the IT perspective to include a business view within the scope of IT. This puts service provider/IR service integration at the heart of the company’s value chain, enabling service provider integration/IR to become a pillar of enterprise success.

— Governance integration keeps SIAM and all the players on track. As such, SIAM implementation should be grounded and led from a governance hub that provides strong leadership and establishes accountability measures that get carried over into all subsequent efforts.

— Reporting integration sets all communication expectations and provides tools for required performance, service health, and compliance reporting across the entire IT environment.

Step one – Take charge: Align supplier governance with IT practices


The customer is always right. Service integration success requires less internal thinking and a more holistic mind-set fueled by client demand for successfully integrated services.

Establishing new performance expectations and measures for internal resources can ruffle the feathers of your resources, but it is a vital step in achieving integration. Clear, transparent, measured, and well-managed performance expectations across the board reduces opportunity for griping and shifting blame and demonstrates consistency in approach and delivery. It also supports implementation of operating level agreements (OLAs) that contractually focus on end-to-end teamwide success versus individualized and potentially conflicting performance metrics.

No one enjoys being told to change how they work. Key to the success of SIAM is accurately assessing the situation before laying out a solid change management plan that includes nurturing team members and, in some cases, healing sore feelings within your resource community.

Assessing and addressing both personality- and process-driven risks, roadblocks, concerns, and objections across the organization is never easy. Increased demand for customer-centric business processes can be hampered by disconnects between management layers. Time and again, scenarios where leadership firmly believed everyone was on board with a change (because the mandate came from the top) have failed as “supportive” managers passively resist with purposeful inaction, waiting for directives to fail.

Step two – Assume the role of client: View success from a service perspective

Step three – Anticipate grumbling: Don’t assume you’ll have organizational buy-in

Source: State of the CIO, January 2016

Feel the future CIO role will primarily be focused on managing contractors and cloud and other IT service providers

51%

Creating clarity

Make it clear

Make it known

Make it real

Make it happen

Make it stick

Creating awareness

Creating readiness

Creating willingness

Creating ability


For a variety of reasons, both financial and contractual, few CIOs have unilateral ability to totally rework all aspects of their service agreements with service providers. Most, however, can renegotiate agreements that request new elements from service providers’ service portfolios to support SIAM-driven IT service integration.

Pressing SIAM integration into a potentially resistant service provider environment is challenging because multiprovider landscapes evolve over time. Their constructs are disconnected because individual agreements were established at different times based on whatever contractual and commercial context made the most sense at the time. While most terms and conditions allude to collaboration and cooperation, a SIAM approach requires levers in the agreement (and/or renegotiation) that can be pulled to drive service integration from concept to reality.

These levers include:

— Partnership agreements that contain specific expectations and language that support cooperation, collaboration, and service integration across the IT environment. Expectations should relate directly to

operational integration (such as incident management, change coordination, and request fulfillment) and service integration planning and control (including elements related to release, cross-provider testing, and program controls).

— Service descriptions that describe SIAM-specific roles and expectations, especially those related to reporting and emphasizing the coordination required to function in SIAM-led environment.

— Performance metrics that are aligned across the landscape (including service providers and internal resources) to minimize disconnects that can lead to problems in execution, such as conflict and/or misaligned response and resolution requirements. This is essential as you transform from modular to end-to-end performance metrics. If you don’t align services to meet the desired end results across all resources within the process, you open the door to endless relief requests and will only achieve performance at the level of the least aligned metric, i.e., the weakest link. One area where struggles typically occur is when metrics related to response and/or resolution are not aligned.

There are three key disruptors that IT leadership should anticipate when implementing SIAM.

The first two relate to the impacts of intelligent automation on resources. The third centers on predictable talent wars.

— Automate to decrease disruption – Generally speaking, introducing automation increases disruption. Change is always disruptive, and getting things “back to normal” can take a long, unproductive time. A shortcut to getting your team back on track is to direct focus onto quality assurance, rather than dwelling on any newly introduced framework or process. For example, many organizations now adopting Agile find their workplace

transformed into a pseudo proving ground as they get the kinks worked out. Sometimes that is due to technical limitations, but we have also seen many issues arise where Agile has been introduced and acceptance of that shift is low or approached inconsistently. However, shops that have begun to automate for quality assurance (i.e., the desired end result rather than the process for getting there) are finding decreased incidents as well as increased efficiency and effectiveness across their workforce. Examples of gains organizations are achieving by automating testing include service transition, and elements of environmental change management.

Step four – Believe the service providers’ pitch: Hold partners accountable to their claims and promises

Step five – Look forward: Plan for disruption and position for improvement


— Think “people plus”: Get more from the great people you have – Advancements in automation are beginning to drive resource planning. As organizations leverage the capability to automate roles performed by low-skilled IT staff, their needs for medium- and high- skilled resources is projected to increase. As automation decreases the number of small and predictable issues, the need for resources that can address the remaining, increasingly complex challenges will increase, as will the demand.

— When forward-thinking CIOs are in their planning cycles, they should ask four key questions to best mold their resource, automation, and service delivery strategies based on the responses they receive. The four questions are:

– What should we stop doing altogether?

– What should we automate?

– What should we hire someone else to do (source)?

– What should we plan to do ourselves?

— Finding great IT talent: The 21st century’s perfect storm – Everyone wants the best people and savvy IT employers snap up the good ones fast. Success requires key management, strategic and technical talent, and these skills are expected to be hard to find, both for companies and service providers. With its devotion to integration, SIAM helps determine exactly what sort of talent you need from an operational standpoint as well as from a technical skill set perspective and positions you to select candidates properly equipped for the long haul.

Change, any change, has a cost. Plan for it. Even framed as an evolutionary versus revolutionary approach, SIAM requires at least a modest investment in the resources proven to increase SIAM success.

— Begin by leveraging what you have: Some SIAM tools are basic to IT itself, including configuration management database (CMDB), change management, and knowledge base systems. While historically their implementation has often been tactical, leaving

anticipated ROI on the table, SIAM provides a dynamic new forum where these elements function with a united purpose and demonstrate new value.

— Managed governance tools and services: There are tools and services readily available to help ease the SIAM journey and expedite success. These range from supporting systems and tools to managed governance services, where tools and resources are combined into an aaS offering.

Step six – Budget for success: Expect to make some strategic investments


How can KPMG Help?

KPMG has been helping CIOs harness the power of SIAM since service integration and management emerged as a robust, duplicatable IT management process. Whether you require an overarching SIAM deployment plan starting from scratch, or just need help developing and refining any of the six steps outlined in the preceding, KPMG has the experience and successful track record to guide you past known obstacles and get your SIAM process up and running smoothly. We can provide strategy, a roadmap for success, analysis and implementation of commercials, contracts, and performance metrics aligned with your needs and expectations, including workshops to help you frame automation and resource planning. For more information, please visit read.kpmg.us/sharedservices



Connect with usTo learn more about KPMG’s SIAM implementation team, contact:

Susan Nara | Director, Advisory

Shared Services & Outsourcing E: [email protected]

Susan has implemented SIAM in multiple industries including IM for automotive clients.

Liz Evans Director, Advisory Shared Services & Outsoucing E: [email protected]

As Governance lead, Liz regularly advises on SIAM across multiple industries.

Randy Wiele Advisory Managing Director Shared Services & Outsourcing E: [email protected]

As outsourcing lead, Randy has provided SIAM advisement in multiple industries including IM and higher education.

John Sandry Director, Advisory Shared Services & Outsourcing E: [email protected]

John has implemented SIAM for multiple clients including medical devices and IM.

Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.

kpmg.com/socialmedia The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Date post:	26-Apr-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

Solving for IT integration: SIAM · 2020-02-24 · every participant supporting IT, within and...

Documents