Service Integration and Management (SIAM) : Institute of Systems Science, NUS (In Collaboration With UXC Consulting)

Service Integration and Management
(SIAM)
Goh Boon Nam
Institute of Systems Science, NUS

(in collaboration with UXC Consulting)
© 2013 National University of Singapore unless

(Total Slides=56) 09/03/2015 10:32 am - d:\iss\itsmf 2015-
03 seminar\itsmf 2015 - service integration.pptx otherwise stated. All Rights Reserved. 1
itSMF Singapore 2015 Annual Conference - ITSM Leadership Congress www.itsmf.org.sg
Agenda
 Introduction
 Some SIAM Best Practices
 Outsourcing of SIAM Function

09/03/2015 10:32 am - itsmf 2015 - service integration.pptx
otherwise stated. All Rights Reserved. 2
Introduction

My Organisation
 Institute of Systems Science www.iss.nus.edu.sg
 Part of National University of Singapore
 Support national IT competency development
needs
 Faculty of practitioners from industry with
average of more that 15 years experience each
 Caters to working IT professionals
 Post-Graduate Programmes
 Executive Programmes
 Industry Research
 Consulting
About Myself
ITIL® Expert, COMIT (Certification in

Outsourcing Mgt for IT), CITPM, CGEIT,
TOGAF, CBAP, Chartered IT Professional
 20 years of IT management experience

 Process Improvement
 Enterprise Architecture and Planning
Goh Boon Nam  IT Operations Mgt
Chief, New Initiatives
Institute of Systems Science  Applications Mgt
 Consultancy for private and public sector

 CMMI
 Enterprise Architecture
 IT Strategy

Managing Multiple Suppliers/Vendors
– Is it Easy?
Is it easy to manage multiple vendors?
What is the common issue that occurs when incidents occur?

Does ITIL® Cater Specifically to
Managing Multiple Suppliers?
Not specifically -
Only a few small sections specific to multi-vendor situation (e.g. Service
Strategy - “3.7.3. Multi-Vendor Sourcing”)
The rest of ITIL apply generally to both multi-vendor or non multi-
vendor environments.

What is the Industry Term for
Managing Multiple Suppliers?
 2 main terms being used
 Service Integration and Management
 More common term used in UK
 Multisourcing Services Integration

 More common term used in US

Service Integration and Management
- Definition
 No standard definition but common meaning
 “Service integration and management lets an organisation
manage the service providers in a consistent and efficient way,
making sure that performance across a portfolio of multi-
sourced goods and services meets user needs.”
Source: GOV.UK
 “The multisourcing service integration (MSI) role is undertaken by

the client, or by a third party contracted by the client organization
with an individual contract to act as its agent in coordinating
and integrating service delivery, in an environment that uses
multiple internal and external service providers to deliver IT
and business process services. The term "SIAM" comes from U.K.
government usage and stands for service integration and
management. The terms "MSI" and "SIAM" may be used
interchangeably, as well as combined (MSI/SIAM).”
Source:

Is SIAM New?
 How many of you had to work in a multi-

supplier/vendor environment since you started
work?
 When did you start work?

What’s New with SIAM?
 Many organisations now outsource almost all their IT
 And are transitioning from single vendor outsourcing model
to multiple-vendors model (see next few slides)
 Total outsource to multi-vendors is complicated
 Arising from above
 Best practices specific to SIAM (and especially for total-
outsourced IT) are starting to be compiled
 Public
 Proprietary
 Service providers starting to offer SIAM function as a

dedicated service
 ITSM tools catering better to SIAM functionality

Change in SIAM and IT Dept Structure
Step1- Traditional Step2 - Total Outsourcing
Multi-Sourcing Single-Sourcing
IT Dept IT Dept Mgt &
Mgt some retained staff
Server Network App. Main

etc... Vendor
Section Section Section
In- In- In- In- Sub- Sub- Sub-

etc...
House House House House Vendor Vendor Vendor
Out- Out- Out- Out-

Source Source Source Source Step3 - Total Outsourcing
Multi-Sourcing
IT Dept Mgt &
some retained staff
Sufficient depth Expertise lost
& breadth of in step 2.
in-house expertise Even if retained,
to manage multiple now need it to be Vendor Vendor Vendor
more structured & formal etc...
vendors #1 #2 #3
as all work now outsourced

Why the Need for Better SIAM Now?
 Total outsourcing via multi-sourcing increasingly being
used
 more complicated to manage than single-sourcing
 IT Dept had lost multi-sourcing competencies from in-
house sections when originally switched to total single-
source outsourcing
 Growing diversity of possible services and service
providers
 Increasing complexity of services
 High dependence on IT for business functions
 Many businesses now operate 24x7
 Rising expectations of external and internal
customers/users
Agenda
 Introduction
 Some SIAM Best Practices
 Outsourcing of SIAM Function

Some SIAM Best Practices

Some SIAM Best Practices - Agenda
 Span of control – use of lead vendor concept
 Understand vendor dependencies
 Use of technical catalog
 Beware of availability dependencies
 Structure the vendor agreement
 Overall Structure
 Service Provider Interfaces
 Impose Cooperation Service Level
 How to introduce such agreements
 Organise to manage multi-vendors
 Build Relationships
 Set up SIAM Availability and Performance Monitoring
 Set up SIAM ITSM Tool Interfaces
 Carry out SIAM Services
How many agreements?
Span of Control (1)
Which option is easier to manage?
Option A
IT Dept Mgt &
some retained staff
Vendor Vendor Vendor

#1 #2 #3
Option B
IT Dept Mgt &
some retained staff
Vendor Vendor Vendor Vendor Vendor Vendor Vendor Vendor Vendor

#1 #2 #3 #4 #5 #6 #7 #8 #9

Span of Control (2)
- Use Lead Supplier/Vendor Concept
Lead Vendor concept
as alternative to earlier Option B
IT Dept Mgt &

some retained staff
Lead Lead Lead

#1 #2 #3
Sub- Sub- Sub- Sub- Sub- Sub-

Vendor Vendor Vendor Vendor Vendor Vendor

Understand the Vendor Dependencies
- Technical Service Catalog (1)
http://www.hci-itil.com/ITIL_v3/books/2_service_design/service_design_ch4_1.html
Copyright © AXELOS Limited 2011. All rights reserved. Material is reproduced under licence from AXELOS

- Technical Service Catalog (2)
Example of
Technical
Catalog entry
for an ERP service
Copyright © AXELOS Limited 2011. All rights

reserved. Material is reproduced under licence
from AXELOS

- Beware of Availability Dependency
ERP Service
Required Availability in SLA = 99.9%
App
Database Network PC
Server
(vendor1) (vendor3) (vendor4)
(vendor2)
99.9% x 99.9% x 99.9% x 99.9% = 99.6% Fail !
99.975% x 99.975% x 99.975% x 99.975% = 99.9% Pass

Structure the Vendor Agreements (1)
- Overall Structure Per Agreement
Adapted from http://integrisapplied.com/wp-content/uploads/2012/07/MSI-Brochure-2012-07.pdf
(Generic
contract
specs &
Priciing)
(SOW (Governance
& tech & Integration
specs) Obligations)
(ITSM (Responsibilities (Includes Targets,

processes towards other Incentives, Penalties)
to follow) providers)

Structure the Agreements (4)
- OLA Service Provider Interfaces
Service (e.g. ERP service)
Process Sourcing
definitions specification relationship
Standard
Service
(ERP app)
contract A
SPI identify/define
interactions between
provider and
Change mgt
Standard
SPI
- processes
SPI
- other providers
Service
SPI (Server)
- customer
contract B
Incident mgt - users

Standard
Service
(etc...)
contract C
etc ...
Based on AXELOS ITIL® material. All rights reserved. Reproduced under licence from AXELOS

Structure the Agreements (3)
- Impose Cooperation Service Level
How to make multi-

parties cooperate
with each other?
If possible, impose
Shared Service Level
for combined service
with other vendors
(in ADDITION to
the usual separate
http://www.straitstimes.com/sites/straitstimes.com/files/Ah%20Boys%202603e.jpg
service levels for their
individual services)

How to Introduce Such Agreements
 But we already have existing agreements in force with
existing vendors ...
 How then to replace with new type of agreement?
 Big bang enterprise wide
 By Division starting with Pilot
 By similar types of service e.g. infra / app
 Starting only from new contracts or contracts due for
renewal
 How much of a change to existing agreements
 Replace
 Retro-fit existing
 Change to supporting documents

Some SIAM Best Practices - Agenda
 Span of control – use of lead vendor concept
 Understand vendor dependencies
 Use of technical catalog
 Beware of availability dependencies
 Structure the vendor agreement
 Overall Structure
 Service Provider Interfaces
 Impose Cooperation SLA
 How to introduce such agreements
 Organise to manage multi-vendors
 Build Relationships
 Set up SIAM Availability and Performance Monitoring
 Set up SIAM ITSM Tool Interfaces
 Carry out SIAM Services
Organise to Manage Multi-Vendors
Can be
in-house or
outsourced

Don’t Run Ops Based on Agreements
- Build Relationships Instead
Throwing the “book” at (i.e. using

contract clauses to threaten)
providers is NOT the way to manage
them on a day-to-day basis.
Build “good personal working

relationships” with them instead.
“People make SIAM work”
https://www.axelos.com/CMSPages/GetFile.aspx?guid=cbf5524d-2d6b-4ac9-ad5c-c0e1bd6e2899

Types of Relationships To Build
 With vendors’ service owners, managers and

practitioners
 Also include vendors’ process owners, managers
and practitioners
 Might also differentiate between type of vendors
 Customised Services & Integrated Services
 recommend Close Relationship
 Configurable Standard Services

 recommend Good Relationship
 Non-Configurable Commodity Services

 recommend Contractual Relationship

Set Up SIAM Performance &
Availability Monitoring (1)
http://www.slideshare.net/SLCorporation/end-toend-monitoringintegration

End to End Monitoring
Adapted from http://www.slideshare.net/SLCorporation/end-toend-monitoringintegration

http://www.manageengine.com/products/applications_manager/network-application-monitoring.html

Set up SIAM ITSM Tool Interfaces (1)
The Need for Tool Integration
End user Customer’s
creates
new ITSM Tool
ticket
Transfer to Update Update Update

Create new support ticket ticket ticket info:
ticket group: information: information: Status:
End
Vendor 1 Status Worklog Solved
?? ?? ?? ??
Update ticket
information: Vendor’s
Status:
Assigned
ITSM Tool
Create new Assign
ticket ticket
Resolve
Handle ticket:
ticket Status:
End
Resolved
Adapted from http://www.slideshare.net/serviceflowcorp/service-flow-howtointegrateitsmsoftware

Secure Cloud Infrastructure
Customer X Vendor 1
Network Service-Flow
SSL Adapter
Broker Adapter SSL
X
ITSM Y ITSM
Tool X Tool Y
Adapter
Z
SSL
ITSM
Tool Z
Vendor 2
Adapted from http://www.slideshare.net/serviceflowcorp/service-flow-howtointegrateitsmsoftware

Not just a technical Issue
Mapping needed between different vendors’ definitions
Customer Vendor#1 Vendor#2

ITSM Tool Urgency ITSM Tool Urgency ITSM Tool Urgency
Definition Definition Definition
1 Very High 1 High 1 Critical
2 High 1 High 2 High
3 Medium 2 Medium 3 Medium
4 Low 3 Low 4 Low
5 Very Low 3 Low 4 Low

Set Up SIAM Governance (1)
Governance
Bodies Scope
ICT Strategic
Committee
Strategic SIAM Strategy
Executive Vendor Evaluate,
Review Direct,
Monitor
Contract Review Measurment and

Tactical Compliance of Sourcing Evaluate,
Direct,
Service Delivery Performance Monitor
Review
Evaluate,
Change and Release Direct,
Advisory Board End to End Performance Monitor
Operational
Service Performance
ITSM Forum IT Change Management
Source: UXC Consulting

Carrying Out SIAM Services
Source: Draft UK Govt SIAM Framework
http://www.i-pupil.com/attachments/article/39/Service%20Integration%20%20Management%20%28SIAM%29%20Service%20Descriptions%20v8a.pdf

Some SIAM Best Practices - Summary
 Span of control – use of lead vendor concept
 Understand vendor dependencies
 Use of technical catalog
 Beware of availability dependencies
 Structure the vendor agreement
 Overall Structure
 Service Provider Interfaces
 Impose Cooperation SLA
 How to introduce such agreements
 Organise to manage multi-vendors
 Build Relationships
 Set up SIAM Availability and Performance Monitoring
 Set up SIAM ITSM Tool Interfaces
 Carry out SIAM Services
Agenda
 Introduction
 Some SIAM Best Practices
 Outsourcing of SIAM Function

Outsourcing of SIAM Function

Is SIAM Easy?
Can we Outsource SIAM? (1)
Step2 - Total Outsourcing
Single-Sourcing Step3b - Outsourcing
IT Dept Mgt & Multi-Sourcing
some retained staff plus SIAM outsourced
Main IT Dept Mgt &
Vendor some retained staff
Sub- Sub- Sub- SIAM

etc...
Vendor Vendor Vendor vendor
Step3 - Total Outsourcing Vendor Vendor Vendor

etc...
Multi-Sourcing #1 #2 #3
IT Dept Mgt &
some retained staff

etc...
#1 #2 #3
41 Congress
itSMF Singapore 2015 Annual Conference - ITSM Leadership www.itsmf.org.sg
Is SIAM Easy?
Can we Outsource SIAM? (2)
If anything goes
wrong, can we now
blame the SIAM
vendor?
US President Truman
“The Buck Stops
Here” – i.e. you can
delegate/outsource
your responsibility
(i.e. work) but not
your accountability
http://pixel.nymag.com/imgs/daily/intel/2012/10/16/16-
truman.w529.h352.2x.jpg

If outsource SIAM, why not
outsource all of IT? Yes or No (1)
(4) Total Outsourcing (5) Why have IT Dept?

Multi-Sourcing Why not outsource all
plus SIAM outsourced of IT?
IT Dept Mgt & IT Dept Mgt &

some retained staff some retained staff
SIAM SIAM
vendor vendor
Vendor Vendor Vendor Vendor Vendor Vendor

etc... etc...
#1 #2 #3 #1 #2 #3

If outsource SIAM, why not
outsource all of IT? Yes or No (2)
Draft UK SIAM Framework
© 2013 National University of Singapore unless http://www.i-

pupil.com/attachments/article/39/Service%20Integration%20%
20Management%20%28SIAM%29%20Service%20Description
www.itsmf.org.sg
s%20v8a.pdf
itSMF Singapore 2015 Annual Conference - ITSM Leadership Congress
Options for SIAM/MSI Provider
• Control is maintained and the internal BU is an independent agent
Internal Multi Supplier
• Internal SIAM provider may not have the skills to be effective
Integration (MSI)
• Heavy investment required in internal skills and toolsets
“Do It Yourself” • Lack of economy of scale for internal SIAM provider
• Some administrative burdens are passed on

External MSI for • Internal BU still manages day-to-day supplier relationships making cost savings
Contract Management difficult to achieve
• Provider has no real control and is unable to help beyond limited scope given
External MSI for • Well-chosen provider may experience, methods, toolsets and economy of scale
Partial SIAM Services • Provider can play off suppliers as provider may not be responsible for the end-
(e.g. Service Desk) to-end experience
• Provider may have experience, methods, toolsets and economy of scale

External MSI for • Provider has more “skin in the game”
Complete SIAM • Provider has a one-stop shop for customer experience
services • If SIAM provider not good, client can lose control
Adapted from UXC Consulting

The SIAM Journey
PLAN DO
• Develop a SIAM strategy, building the business case and action • Go to market for SIAM Partner or setup your function
plan
• Document/Agreements (OLAs/SLAs/Contracts)
• Scope (what’s in/what’s out)
• Negotiation with affected suppliers about changes
• Service Definition (Service Portfolio) required/new contracts
• Who does what? (in-house or outsource) • Project Implementation and Transition Planning
• What does success look like and how are you going to measure
it?
ACT CHECK
• Determine a continual service improvement plan • Monitor, measure, report, take remedial action
• Initiate business transformation activities • Review SIAM model performance
• Prioritise innovation activities that rapidly add business value • Review ongoing IT Service performance with the business
• Complete a new baseline maturity assessment

Example SIAM Provider Services
Unconsidered Idea / Planning Scoping / RFP Transition / Implement Transformation

“We haven’t thought about “We know about it and we’re “We’re finding t he best “We’re working wit h our “Our SIAM model is in place
Customer SIAM as a solut ion” planning our approach” provider to meet our needs” provider to implement SIAM” and we’re t aking next steps”
Position
SIAM Assessment / Readiness
SIAM Strategy Development Capability Uplift

SIAM Assessment / Readiness RFP Response / SIAM Operate
 Understand your organisations readiness to leverage SIAM  Complete SIAM functional capability aligned to business needs
UXC  Visualise the roadmap for SIAM success Business Case Development  Transition
End-to-End Planning
Project Delivery
 Know the quick wins to put in place in preparation for the journey ahead  Ongoing management and delivery of the SIAM function
Offerings
SIAM Best Practice Modelling RFP Response
Transition Planning SIAM Operate (Managed Service)
 Leverage UXC’s existing best practice mode  Manage transition to a SIAM model
 Tailor the model for your organisation SIAM Best Practice Modelling  Strong focus on governance, Organisational Change,Innovation
and One Way,/ Same
Cycling
Way
 Build with confidence based on best practice thinking and experience  Put in place solid foundations and generate early quick wins
SIAM Strategy Development Capability
Education / Advisory Uplift
Consulting
 Operating Model design  Improve current SIAM and supplier performance
 People / Process / Products / Partner Development  Recover SIAM initiatives that are not meeting objectives
 Measures / Success Factors  Retain business / IT confidence in SIAM strategy
Business Case Development Innovation / Churn
 Return on Investment Analysis and Modelling  Transform SIAM into an organisational strategic asset
 Documented clear value proposition for SIAM implementation and operation  Enable rapid supplier cycling to gain maximum value from IT Service towers
 Allow sound decision making by executive management  Match development speeds to the pace of the business

Staged Transformation Towards the Future State

SIAM org chart (example)

Selecting a SIAM Provider - Criteria
1. Neutrality – lack of conflict of interest (either not an existing vendor for
other services, or another part of existing vendor able to set up effective
Chinese Walls)
2. Experience in SIAM
3. SIAM governance/management framework
4. ITSM tool multi-vendor integration capability
5. Service Catalog/CMDB/Performance Monitoring multi-vendor integration
capability
6. Proven end-to-end service quality
7. Ability to maintain good collaborative working relationship with multi-
vendors
8. Ability to cater to handover to new SIAM provider at end of contract
period (i.e. minimal lock-in)
NB: 2 to 7 also applies to some degree to your lead vendors as they have to do
SIAM (Service Integration and Management) of their sub-vendors.

Governance of Outsourced SIAM
Daily/Weekly Monthly Annual
Strategic
<Customer>
ICT
<Customer>
Strategic Plan
Governance
Executive
<Customer> <Customer> <Customer> <Customer>

‘Other’ domains,
ICT Service Innovation & Incl: Risk, TCO, <Customer>
Sourcing Architecture
and Process PPM Portfolio P&C, Business CSI strategy
Advice, ideas, inovation and reports from supply chain

Governance Governance
Governance Governance Alignment, QMS
Strategy & Direction to supply chain
<Customer> <Customer>
Management
Service & Contract

Process Management
Review Boards
SIAM SIAM
SIAM Provider Contract PPM/PMO Architecture & SIAM
Performance & compliance review
Portfolio Innovation CSI Plan
Board
Review Board Board
SIAM Service Delivery

Operations/
Management
Execution
• Daily Service & SIAM SIAM/<Customer> SIAM/<Customer>

Major Issue Reviews Process Project & Design Assurance
• Escalations Improvement Programme (Functionality, Availability, Capacity,
• Transition Boards Councils Boards Continuity, Security SAC test & report)
• QMS, ITSM, PPM
standards & assurance
Provider
Internal/external provider Internal/external service Internal/external supplier

Service
Service Provider
Service Operation & provider Project / Programme
Business
Transition, incl Incident/ Process Owners and Manager, and/or SMEs &
7 Plans
Change, Request ownership Representatives project team

Other Outsourcing Models
to obtain SIAM Capability
 Building the skills in-house (no outsourcing)
 Obtaining consultancy and training to build the
skills (consultancy/training outsourcing)
 Conventional SIAM Outsourcing
 Outsourcing to Build the capability, (co-)Operate
over a period of time, Transfer (BOT) back to
client to totally take over

Summary
 Introduction
 Some SIAM Best Practices
 Outsourcing of SIAM Function
Effective
SIAM

Q&A

Acknowledgements & Notices
 ITIL® is a registered trade mark of the AXELOS
Limited
 Quoted text is from AXELOS material - all Copyright ©
AXELOS Limited 2011. Reproduced under licence
from the AXELOS. [Any original emphasis excluded.
Emphasis then added for purpose of this
presentation.]
 Text in italics is based on AXELOS ITIL® material.
Reproduced under licence from the AXELOS
 © 2015 NUS unless otherwise stated. The contents of
this document may not be reproduced in any form or
by any means, without the written permission of ISS,
NUS, other than for the purpose for which it has been
supplied
otherwise stated. All Rights Reserved.
The End


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Service Integration and Management

Institute of Systems Science, NUS

© 2013 National University of Singapore unless

© 2013 National University of Singapore unless

© 2013 National University of Singapore unless

ITIL® Expert, COMIT (Certification in

 20 years of IT management experience

 Consultancy for private and public sector

© 2013 National University of Singapore unless

© 2013 National University of Singapore unless

© 2013 National University of Singapore unless

 Multisourcing Services Integration

© 2013 National University of Singapore unless

 “The multisourcing service integration (MSI) role is undertaken by

© 2013 National University of Singapore unless

 How many of you had to work in a multi-

© 2013 National University of Singapore unless

 Service providers starting to offer SIAM function as a

© 2013 National University of Singapore unless

Server Network App. Main

In- In- In- In- Sub- Sub- Sub-

Out- Out- Out- Out-

© 2013 National University of Singapore unless

© 2013 National University of Singapore unless

© 2013 National University of Singapore unless

Vendor Vendor Vendor

Vendor Vendor Vendor Vendor Vendor Vendor Vendor Vendor Vendor

© 2013 National University of Singapore unless

IT Dept Mgt &

Lead Lead Lead

Sub- Sub- Sub- Sub- Sub- Sub-

© 2013 National University of Singapore unless

© 2013 National University of Singapore unless

Copyright © AXELOS Limited 2011. All rights

© 2013 National University of Singapore unless

99.9% x 99.9% x 99.9% x 99.9% = 99.6% Fail !

99.975% x 99.975% x 99.975% x 99.975% = 99.9% Pass

© 2013 National University of Singapore unless

(ITSM (Responsibilities (Includes Targets,

© 2013 National University of Singapore unless

Incident mgt - users

© 2013 National University of Singapore unless

How to make multi-

© 2013 National University of Singapore unless

© 2013 National University of Singapore unless

Adapted from http://integrisapplied.com/wp-content/uploads/2012/07/MSI-Brochure-2012-07.pdf

© 2013 National University of Singapore unless

Throwing the “book” at (i.e. using

Build “good personal working

© 2013 National University of Singapore unless

 With vendors’ service owners, managers and

 Configurable Standard Services

 Non-Configurable Commodity Services

© 2013 National University of Singapore unless

© 2013 National University of Singapore unless

End to End Monitoring

Adapted from http://www.slideshare.net/SLCorporation/end-toend-monitoringintegration

© 2013 National University of Singapore unless

© 2013 National University of Singapore unless

Transfer to Update Update Update

Adapted from http://www.slideshare.net/serviceflowcorp/service-flow-howtointegrateitsmsoftware

Adapted from http://www.slideshare.net/serviceflowcorp/service-flow-howtointegrateitsmsoftware

© 2013 National University of Singapore unless