Keynote Panel: Lean IT in Challenging Times

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Keynote Panel Lean IT in Challenging Times

• Yuri Aguiar, Senior Partner Chief Technology
  Officer, Ogilvy Mather Worldwide
• Kamal Bherwani, CIO for Health Human Services,
  City of NY
• Todd Thompson, CIO, Starwood Hotels Resorts
  Worldwide, Inc.
• Introduction Dr. Jerry Luftman, Distinguished
  Professor and Executive Director, Howe School of
  Technology Management, Stevens Institute of
  Technology
• Moderator Douglas Rousso, Senior Vice President,
  Global Business Solutions, CA, Inc.

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Lean IT

• Real World Examples of Lean IT _at_ CA

Douglas Rousso SVP Global Business Solutions
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Pressures on IT
In 2008, 66 of IT resources are used to run
versus 34 to Grow/Transform --Gartner,
Inc. Gartner, Inc., IT Spending and Staffing
Report, 2009, Michael Smith, Kurt Potter,
January 27, 2009. ID G00164940. .
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Enterprise IT Management Solutions Enable Lean IT

• Lean ITAn approach that helps IT organizations
  focus on whats important delivering value to
  their customers
• Reduce waste
• Increase productivity
• Improve customer experience
• Aim resources at high value deliverables

Executives Staff Compliance
Enterprise IT Management
CIO PMO CISO Support Strategic Sourcing
Operations Network
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Applying Lean work practices could drive 20-30
in annual productivity improvements
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Key findings

• Interviews and workshops with CA highlight
  significant scope for application of lean
  principles
• Applying Lean concepts could increase delivery
  productivity by
• Reducing incoming demand and streamlining intake
  process
• Optimizing individual work practices
• Balancing work across individuals and teams
• Analyses suggest a potential productivity
  increase of 20-30, yielding potential run rate
  savings of 3-5 MM
• The Lean initiatives should be tested via pilots
  before moving into a full implementation to
  realize savings
• Next steps Design pilot implementation approach
  determine scope of activities for initial pilots
  (e.g., service desk)

Context

• CA has recognized the need to upgrade service
  delivery through implementation of ADM and ITIL
• There are additional opportunities to change work
  practices and improve workflow through the
  Application Development and Infrastructure
  organizations
• Applying Lean manufacturing concepts can enhance
  current efforts and drive significant productive
  improvements

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A rationalized application architecture
leveraging shared enterprise services can
significantly reduce costs of the IT portfolio
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ILLUSTRATIVE
ILLUSTRATIVE
Re-Use of Technology Assets, Migration of Legacy
Systems
Re-Use of Divisional and Enterprise Processes and
Services
High
100s
100s
High
Maximum Reuse
Current Architecture
No. of Systems
No. of Processes and Services
Maturity of Enterprise Architecture
Planned Architecture
of Re-Usable Software Components
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1
Year 1
Year 2
Year 3
Year 4
Low
Year 1
Year 2
Year 3
Year 4
Low
Business Line Systems
Divisional Processes
Enterprise Services
Number of Re-Usable Service Components
Enterprise Systems
Re-Usable Technology Assets
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Interviews and workshops highlight significant
potential to increase productivity by minimizing
waste and rework
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Observations/Evidence
Quotes
Area

• Incoming demand

• Significant amount of support work done outside
  of Service Desk process (e.g., email, IMs)
• Service desk escalates large volume of
  L1-solvable work
• Users designate tickets as high priority
  regardless of true urgency and impact to business
• Tickets lack sufficient detail for resolution and
  require follow-ups and clarifications
• Low utilization of knowledge base
• Excessive alerts and warnings

I had 6 IMs, 9 Emails, and 2 post-it notes all
requesting service and only 3 Service Desk
tickets 85 of my work was generated outside
the system!
Sometimes Ill get a Sev 1 alert, and I wont be
able to tell what server is down. Ill have to
call someone to figure out what the ticket means
Users almost always put tickets in as a priority
2 they can set whatever priority they want so
they naturally go for the highest they can
Individual work practices
I have a hard time getting work done because Im
constantly interrupted. Im always multi-tasking

• Constant interruptions (e.g., walkups/IMs/Emails)
  prevent resources from focusing on individual
  tasks
• Resources often required to perform multiple
  roles (e.g., BAs perform QA, developers do
  support and project work simultaneously)
• Significant time spent on non-value added
  activities and waste (e.g., unnecessary
  documentation, service ticket clarification)

Creating service tickets sometimes gets in the
way of getting work done. I see it as red tape
Balancing work

• Lack of prioritization guidelines limits ability
  to segment work
• Work assigned round robin
• Some roles technically overspecialized (e.g.,
  mainframe skills only), limiting resource
  flexibility

We assign work round robin. Sometimes I think
the manager just flips a coin
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Reduce incoming work Increasing L1 resolution
and driving self-service could reduce ticket
escalations by at least a third
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Current demand profile
Future demand profile
of total tickets 1, 2
of total tickets1,2
Incoming L1 tickets
Incoming L1 tickets
100

• Analysis indicates that L1 resolution rates can
  be doubled by
• Allowing service desk to grant all access rights
• Training service desk to resolve more Email/IM/
  Office requests
• Updating the service desk knowledge base

Improved L1resolution
46
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Resolved by L1
2x
Escalated to L2/L3
Escalated to L2/L3
Best practice First Call Resolution rates are at
70, highlighting further scope for improvement
SOURCE CA Service Desk
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Individual work practices Minimizing non-core
activities and waste can increase productivity
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Task/process level efficiencies
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Core activities1
Breakdown of developer activities4
Typical developers day

• Frequent context switching drives losses in
  productivity
• Blocks too short to build personal rhythm
• Research indicates that constant interruptions
  have significant impact on productivity (e.g.,
  3-5 interruptions/hour leads to 10-15
  productivity loss)

Core
70
Waste

• Non-core activities typically represent 10-16 of
  total (best practice)

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Non-Core
Total productivity improvement estimated to be
15-30

• Opportunity to minimize waste and non core
  activities could lead to significant capacity
  improvement
• Reduction in context switching could lead to
  additional productivity improvement

SOURCE CA Clarity
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Panel Discussion
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