Information Technology Transformation Case Study

This report details the steps and deliverables from a top-to-bottom strategic enterprise information technology services transformation. The objective was to transform the IT organization federated to a centralized model - thereby reducing the duplication and waste in IT services delivered and extract substantial cost savings. However, the real benefit would be in the effectiveness of the new IT organization in creating business value for the enterprise.

IT Organizations that operate in organizational silos - for example, one for each division or geographical area - often cost more because they duplicate services, under utilize resources, and fail to meet business requirements. The solution, sometimes, is to consolidate IT organization and the services it provides thereby eliminating waste, and architecting a capability that meets or exceeds business requirements.

This IT transformation effort undertook a grounds up initiative to transform an inefficient and ineffective federated IT organization into a centralized organization. The steps and deliverables at each are provided in these series of reports.

CIOs can use this case study to understand the opportunities for improvement in their IT organization design and the IT services they provide, re-engineer both, and implement a new organization responsive to business needs.
These are 18 deliverables in this package. Some of them are described below.

• IT Organization Analysis: Analyze existing IT organization and identify areas of improvement. Design a new IT organization on a centralized yet responsive IT services model.
• IT Roles and Responsibilities Analysis: A high level assessment of roles and responsibilities across the various organizational silos and redesign to consolidate them in a single logical IT organization including new job definitions, titles, and career paths. Existing IT personnel are aligned to the new roles, gaps and overlaps are identified and an approach to filling skills gaps including recruitment, training, and retention
• IT Governance Analysis: An analysis of existing IT governance model - policies, organization, structure etc. - and design of a new effective IT governance model that centralizes IT organization and services - roles, responsibilities, oversight, leadership, structure, policies etc. The analysis includes a current analysis of governance model, review of leading industry governance practices, and recommendation for a centralized governance model.
• Redesign IT Service Catalog: A catalog of IT services to be provided by a centralized IT organization, including technical service specifications, functional service descriptions, integrated service level agreements, service metrics and reporting, and hand-off guidelines.
• IT Service Management Operations Plan: This deliverable includes an Operational Plan for Service Management and Delivery describing proposed organizational structures, proposed financial models, recommended IT services catalog, proposed procurement management plan, proposed facilities management plan, proposed provider management plan and human capital management plan which includes requisite policies, procedures, controls, and performance objectives. The Operational Plan includes a description of the IT
  service management activities and processes that will support the running of the future state environment for operational efficiencies and process standardization.
• IT Strategic Sourcing Plan: Analysis of current IT spend, and identification of future purchasing requirements for a centralized IT services organization. Design of an IT strategic sourcing strategy that leverages economies of scale, efficient procurement processes, and identifies cost savings opportunities. Identification of gaps in current and future state procurement capabilities and recommendations to plug them.
• IT Financial Model Analysis: This deliverable analyzes current IT investment approaches and designs future state funding model for the centralized IT organization based on an analysis of back-end funding models, billing structures, and cost allocation models.
• Enterprise Architecture Planning
  A thorough analysis of the enterprise architecture, its governance, opportunities for improvement, and recommendations for a "to-be" architecture. This deliverable is not available.
• Project Portfolio Management Strategy:
  An analysis of the current project portfolio management approach, practices, and governance and design of a project and portfolio management strategy that will enable more effective investments that better align and enable business objectives and strategies.
• Risk Management Plan:
  This deliverable includes a comprehensive risk and issues management plan, utilizing processes, and tools to both plan/identify/mitigate risks and detect/correct/track issues.
• Change Management Plan:
  This deliverable provides a plan for transitioning from the existing federated organizational structure into a centralized services organization. What are the key considerations for transition? What training needs to be provided to the staff? What is the high level migration approach?
• Business Communications Plan:
  This deliverable includes a plan for communications between the centralized IT services organization, stakeholders, and executive branch customers to ensure the efficient flow of information relative to service requirements, accessibility, and performance.
• Customer Engagement Plan:
  This deliverable describes a customer engagement plan by the centralized IT services organization which promotes high levels of customer engagement, efficient and responsive support of customer needs and positions the organization to develop partnerships with its customers in utilizing technology to deliver services in support of business requirements. This deliverable includes a current state review of customer engagement practices and recommendations on customer engagement practices for use in the future, including an approach to gauging customer satisfaction through surveys.
• Vendor Relationship Management Strategy:
  Analyze current IT capability to identify areas for outsourcing. Define approach for vendor relationship management, areas for vendor involvement, current state of outsourced services, framework for assessment for outsourcing, sourcing options analysis.
• Data Center Strategy:
  Analysis of data center, network, and infrastructure to ascertain their suitability for the new centralized IT organization. Assess the impact of cloud computing and other emerging infrastructure provisioning and service delivery models. Identify gaps between current and future state infrastructure capability. Create a strategy and implementation plan for data center, network and infrastructure assets migration.
• IT Roadmap and Migration Plan:
  This deliverable lists the next steps for implementation, including governance, organization design, strategic sourcing, PPM, Enterprise Architecture and IT Service. It includes a roadmap for the IT transformation in the form of a chart of the current state, identified gaps, future state recommendations and plans for implementation for the areas in the project plan.