Managed Services linking flexibilitywith affordability The Benefits of Managed Services Application Support
Agenda • Introductions • CherryRoad • What is Managed Services? • Definition • Core Services • Managed Services Drivers • Engagement Characteristics • Staffing Model • Success Attributes • Benefits of Managed Services • Exploring Managed Services as a Solution • Warning Signs • Choosing a MSP • Q&A
Organizational Overview Oracle Platinum Partner • Oracle ERP is all we do • 85% of our business is in the public sector • Go-to partner for PeopleSoft Implementations Implementing Oracle Solution Since 1992 • 200+ senior consultants • Average consultant experience 12+ years • Average consultant tenure with CherryRoad 10+ years • 500+ Implementation/Upgrade engagements Strong Managed Services Practice • Focused PeopleSoft and E-Business support • Two, Tier 4 data centers • 24/7/365 Help Desk • A True Partner – CherryRoad • State of Delaware, Office of Pensions: 15+ years • Newark Public Schools: 14+ years Successful History CherryRoad is one of the 12 original Oracle partners and a Platinum level partner. ` • CherryRoad in the Public Sector: • 15States • 7 Pension Clients • 24 Counties • 35Cities • 10 Transit Authorities In the past ten years, CherryRoad as the prime systems integrator, has successfully partnered with more public sector clients than any other Oracle partner.
“I want to get back to the business of running a ____________.” State Hospital School District University County City
Business Definition • Definition of Managed Services • Managed services are the practice of outsourcing day-to-day management responsibilities and functions as a strategic method for improving operations and cutting expenses. It is the proactive management of an IT (Information Technology) asset or object, by a third party typically known as a MSP, on behalf of a customer. The operative distinction that sets apart a MSP is the proactive delivery of their service, as compared to reactive IT services, which have been around for decades. • Managed Services Characteristics • Typically, MSPs will have the following distinguishing characteristics: • Have some form of Network Operation Center (NOC) service • Have some form of service or help desk service • Be able to remotely monitor and manage all or a majority of the objects for the customer • Proactively, compared to reactive, maintain the objects under management for the customer • Deliver these solutions with some form of predictable billing model, where the customer knows with great accuracy what their regular IT management expense will be
Managed Services Model(Outsourcing) Staff Augmentation(Out-tasking) • Supplier assumes control of all or part of the execution component of IT • Service delivery commitments expressed as “service levels” • Committed scope and term • Pricing tied to service levels and volumes where appropriate • Supplier managed delivery model; processes and tools • Impacted employees; assets and contracts may be transitioned to supplier (supplier needs to acquire or have the capability to deliver) • Knowledge must be documented and transferrable • Supplier assumes the risk of transition and operations • Supplier commits to providing resources of defined capability at a price • No Service delivery commitments relative to outputs • Limited commitment • Pricing tied to hours worked and availability • Customer manages the delivery model (including individual subcontractors); process and tools • No change to customer operating model • Knowledge vested in the individual • All delivery risk remains with client Commitment to deliver an outcome Commitment to provide an input
Managed Services ModelsTypes of Managed Services Arrangements • Efficiency/Utility (Make it Cheaper) arrangement outsourcing focuses primarily on cost control and, over time, cost reduction with the goal of maintaining consistency in the delivery of services. • Business Enhancement (Make it Better) arrangement is about business productivity. The organization’s performance, as compared with their competitors, will improve, resulting in movement toward defined business goals. • Transformational (Make me Money) arrangement is characterized by a partnership between the service provider and service recipient that is focused on innovation and new business, changing the very basis of which an organization competes.
Help Desk Services • Level 1 Support (initial) supplied by client personnel • Triage initial trouble • Handle usage, setup, and education issues • Level 2 & 3 Support supplied by MSP personnel System Operations/Availability • 24x7 support Service Desk Support • On-call for emergency needs
Application Managed Services • Application configuration and testing • Security assessment and monitoring • Application tuning • Interfaces monitoring and support • Administration and monitoring • Remote or on-site development • Development support services • Custom integration development • User interface/customizations • Development migrations • Call Center/Help Desk support (Tier 1, 2, 3, and 4 support) • Issue management and resolution services • Client management and communications • Technical support (infrastructure, application, etc.) • Updates/upgrades • Application upgrades • Tax update application and testing • Maintenance Pack installations • Development migrations
Service Level Agreements (SLA) • Objectives • Provide clear reference to service agreements • Present a concise and measurable description of service provision to the client • Match perceptions of expected service provision with actual service support and delivery • Measuring service through a disciplined approach • Provide Monetary penalties for non-delivery • MUST BE FLEXIBLE • One size doesn’t fit all – Six month SLA review 1styear, then yearly • Are we tracking the right metrics? • SLA Adjustment
Managed Services Drivers Is IT slow to respond to organizational changes or changes in information needs? Is the company in transition? Is there a need for structural change in technology? Is there a lack of a comprehensive long-term IT plan that addresses the company’s strategic objectives? Is there a large backlog of projects? Is there a need to address standards and system integration issues? IT Priorities Change Mgmt. Technology Consider Managed Services Expertise Do significant IT fixed costs exist? Do the time and effort required to get desired results seem excessive? Cost Are fixed costs escalating without any perception of improved services? Quality Are there problems with quality of service? Is there a loss of confidence concerning in-house expertise? Do maintenance costs exceed typical cost levels?
Why Managed Services ? The following are the major reasons given for making outsourcing decisions • Difficulty of hiring skilled professionals (28.8 percent) • Lack of in-house skills to deliver the desired levels of quality (20.3 percent) • Budgetary considerations (13.6 percent) • Mandate from the management (11.9 percent)
Engagement Staffing Model All about Flexibility one size doesn’t fit all….….. • On-Site • Fading Trend • Off-Site • Most economical • Hybrid • Best of both worlds Tailored services to maximize customer satisfaction while minimizing total cost of ownership.
Success AttributesWhat Does Our Experience Tell Us… • Trust (Win/Win) • Someone doesn’t have to lose • Reduction in costs • Built on the relationship and delivery of both tactical and strategic services (long-term process) • Semi-annual service and volume review • Relationship (Open Communication) • Dedicated Client Manager and Practice Director • Open Door Policy • Anytime/Anywhere • Communication Framework which includes: • Monthly meetings to provide statistical information and recommendations through trend analysis • Quarterly Continuous Improvement Seminars • Commitment to Continuous Improvement • Improved user experience
Success AttributesWhat Does Our Experience Tell Us… • Tactical Services (Foundation for Success) • Services Required: • Troubleshoot and resolve both functional and technical issues (sometimes called break/fix) • Provide answers to specific questions about existing or proposed functionality, provide advice, and research issues • Apply application maintenance packs, bundles, and patches where required based on an agreed upon schedule • Single Point of Contact • Operate a managed services’ Help Desk for functional and technical issue resolution • 24/7/365 support for mission critical systems • Improved service levels • Flexibility in delivery model • On-site/off-site when needed • Scalability
Success AttributesWhat Does Our Experience Tell Us… • Strategic Services (Value Add) • MSP’s goal for partnership is not only to be a tactical partner that provides day-to-day support, but also work to provide a strategic partnership • Offer management oversight to ensure your application support needs are met • Continuous Improvement recommendations, on a quarterly basis, MSP should work with you to present informational, training, and learning sessions which may include: • Client Feedback (surveys) • Industry Trends • Software Trends (Engineered Systems -Exadata, Oracle Database Appliance, etc.) • Data Center/Hardware Trends • Application/Project Trends • Cost/Benefit Analysis • Etc. • Partnership that allows both the MSP and client to share a vision for the future and assist you with not only short-term tactical solutions, but a long-term strategic vision as well
Leveraging Managed Services Provides • Economies of Scale • To hire, develop, and retain skilled IT personnel – Skillset modernization • To provide full life-cycle application support • To acquire tried and tested solutions • Access to Expertise • For specialized and experienced IT talent • For proven methodologies • Access to Technology • For hosting custom enterprise applications • For B2B skills and solutions • Operational Efficiencies • 24x7 Resource availability • No need for succession planning
Benefits of Managed Services • Significant Cost Savings • Budget Consistency • Costs Are Spread Over Duration Of Project • Gartner: 75% of TCO is Operational; Hosting Reduces Operational TCO by 30%-50% • Costs Can Be Classified As Operational or Capital • Reduced Risk • Environments Managed By Seasoned Professionals • Ease strain on internal staff • Dedicated, Fully Redundant Infrastructure with DR • Proven Methodologies – Best Practice Driven • SLA Driven • Measured Accountability • Penalty Driven
Benefits of Managed Services • Increased Quality • Guaranteed Availability and Performance • Best Practices implemented • Higher User Acceptance = Higher ROI • Consistent, High-Quality Technology Experience It’s All About Cost Savings through Efficiency and Risk Reduction
Recognize the Signs… • Negativity Towards System • Chaos/Firedrills • Behind in Maintenance • Tickets/issues “piling” • Lack of Governance/Process • Best Practices • Change Control • Client Staffing Issues • Skills • Attrition • Hiring Freezes
Ask yourself these questions… • Where and what are the largest challenges and road blocks today? • What roles are the toughest to hire and retain? • What services are core competencies? • Where are the biggest opportunities for maximizing ROI? • How can we best leverage investments in IT and PeopleSoft? • Would our staff currently doing the service provide more value elsewhere? • Can a MSP do what they do… • for the same or better performance/results? • for the same or better cost?
Managed Services Provider Differentiators • When choosing a MSP look for.. • Experience • Scope and Breadth of Business Focus • Proven Methodologies • Depth of Resources • Strong Strategic Partnerships • Flexibility and Scalability