Proposal for

Optimized Staffing Support Model

CSC Proprietary and Confidential 1

 Agenda

Recap from Last Meeting

CSC Support, Maintenance & Enhancement Model, SLAs

Maintenance, Support and Enhancement Model for Lowe’s

Our understanding – “AS IS” state

Portfolio Analysis - M&M and Logistics

Proposed Transformation approach

SLAs
Process, Governance, Best Practices
Resource Model
Next Steps

Case Studies

CSC Proprietary and Confidential 2

Recap from last meeting
• Need to optimize the offshore, onsite mix
• Devise a support model where Lowes Management continues to have
control on the prioritization of work, allocation of resources & problem
resolution etc.
• SLA based proposal from CSC for Maintenance, Support and
Enhancement
• Show a roadmap of how the transition from the current model to the
proposed model occurs
• Ensure that the potential risks to the business and IT are mitigated
properly as we transition to the new model

CSC Proprietary and Confidential 3

 CSC’s Support, Maintenance & Enhancement
Model

CSC Proprietary and Confidential 4

CSC Services Model
CENTER OF
EXCELLENCE
STRUCTURED
KNOWLEDGE PORTFOLIO 2 PORTFOLIO 3 PORTFOLIO 4
PORTFOLIO 1
TRANSITION

SLA BASED TESTING

MANAGED
SERVICES Application Maintenance and Support
Application Development
Services
Services Maintenance Planning Corrective Maintenance
CAPACITY Microsoft
Preventive Maintenance Adaptive Maintenance
ON-DEMAND New Development Projects Major Enhancements Perfective Maintenance Release Packaging
RESOURCING Application Monitoring Application Architecture

Emergency Services Documentation Java

SEAMLESS
TOOL Logical Database Application Security Application Documentation
Reporting
Application Disaster SLA / KPI
GOVERNANCE Recovery Support Secure Code Practices Release Notes
Status
24x7x365 Support DBA Activities Audits and Trails Runbooks
Health
Policies and Procedures

SOA
INNOVATION
INCIDENT PROBLEM CHANGE CONFIGURATION PROJECT RELEASE REGULATORY
APPLICATION QA
MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT COMPLIANCE

TOOLS Client PROCESSES CSC PROCESSES DOMAIN

SEI
Client
CMMi / ITIL CATALYST GHPATS APER SAS70 ISO 270001 EXPERTS
PROPRIETARY
PCMM

RISK Domain
APPLICATION POLICIES AND INTEGRATED PROCESS
MANAGEMENT KNOWLEDGE PORTALS SOW CoE
MANAGEMENT PLAN PROCEDURES MANUAL FRAMEWORK

CSC Proprietary and Confidential 5

Application Maintenance Methodology
Business, Customers and Users

Difficulties, inquiries Communications, updates, workarounds

Management Service Desk

tools

Requests for Service

Incidents
Daily Service Reviews
Workarounds
Changes
Incident Releases
Configuration
Management Problem Management
Release
Management Change Management
Incident
Restoration ASAP
Management CMDB Reports
Problem Release Schedule CMDB Statistics
Escalation Change Schedule
Notification Statistics, Trend Release Statistics Policy Standards
ITIL Analysis, CAB Minutes Release Reviews
Incident Statistics Problem Reports, Audit Reports
Change Statistics Secure Library
Problem Reviews,
Diagnostic Aids, Change Reviews Testing Standards
Audit Reports Audit Report Audit Report
Single Input Change Schedule
Stream CAB Minutes Dispatch Board
Squads, Squads & Squad Squad Change
Negotiation,
Statistics
dispatching, mini Knowledge Skills Matrix
Negotiation, Change Reviews
interventions, Dispatch Board
GHPST Base, Team Action Audit Report Incremental
cross skilling Skills Matrix
Incremental Meeting annotation
CSC Processes Annotation Skills Matrix Incremental CM Plans
Task Mgmt Annotation, TAMs
CSC Processes

CSC Proprietary and Confidential 6

Transition Methodology
Structured Transition Framework Due Diligence

Customizable Tools and Templates Risk Mitigated KT process

CSC Proprietary and Confidential 7

SLA Best Practices
SLA / Metric Description
Response Time The percentage of incidents where the response time is
within the specified time.
Resolution Time The percentage of incidents where the service is restored
(or acceptable work-around is provided) within the
specified time period.
Availability % of time application is available in a given month, less
unscheduled down time.
Quality of fixes The percentage of fixes implemented without any
production problems.
Incident Backlog The percentage of incidents pending resolution at the end
of the month.

Response SLA Resolution SLA

Priority Response Time Target Resolution Time Target
Critical 30 mins 98% 4 Hours 98%
High 60 mins 95% 1 Day 95%
Medium 120 Biz Mins 90% 3 Biz Days 90%
Low 300 Biz Mins 85% 10 Biz Days 85%
CSC Proprietary and Confidential 8
 Portfolio Analysis
M&M and Logistics

CSC Proprietary and Confidential 9

Analysis Methodology

• Performed Top down FTE Analysis for each of the functions

• Reviewed roles, skill sets, responsibilities and conducted offshore-
ability analysis
• Determined roles that can be moved offshore
• Performed Bottom Up FTE Analysis
• Application Support complexity analysis
• Determined FTE count required for supporting an SLA based
support model
• Did an Alternate Analysis based on ticket information and arrived at our
recommendation

CSC Proprietary and Confidential 10

 Portfolio Analysis – Top Down Approach
Businesses Drivers Lowe's IT Vision Historical Support Process Models Industry Best
Data Practices
Inputs

Lowe's Portfolios
Due Diligence

Portfolio Analysis
Offshorability Analysis
Competencies to be transitioned

CSC ROM Estimates for Support & Maintenance

Output

CSC Proprietary and Confidential 11

 Top Down Analysis: M&M – PCM systems
Business Definition Team structure

 Product Content Management System  1 Lowes Manager

 Product Core Attributes – PCM  2 Employees effort approx
 Product Marketing Attributes – PSSA  3 ON/7 off
 Digital Content - EDAM

Technology Scope for Onsite/ Offshore

 PCM enhancement team is having a good balance of On/Off

 Mainframe, DB2, COBOL, JAVA, J2EE, MQ, ORACLE- UCM  PCM/PSSA daytime support could be reduced by 1 FTE at onsite

Application Details Scope of work at Onsite/offshore

 Approximately 4 year old in house Apps.
 CSC has built knowledge documents
 CSC has built Regression Test Scripts
 Regression test Automation is recommended
 60% Enhancement & 30% Maintenance
 Remedy - Bug Fixes & Minor Enhancements
 New Development and Enhancement
 Testing / Data setup etc
 Job Monitoring & Support

Key Observations:
• Knowledge Institutionalized in current team
• CSC has ensured knowledge is spread across team and no dependency on anyone resource
• Current Staff willing to relocate to India – One L1 Support resource is for Short term
• Near term opportunity to evaluate Off shoring – Configuration role can move to offshore

CSC Proprietary and Confidential 12

 Top Down Analysis: M&M – non-PCM Systems
Business Definition Current Team structure

 Product – Assortment Maintenance , Store Set up - Bookmarking,  1 Lowes Manager

Audits ,Product Assignment , Product Workflow ,Prize Zones,  6 Employees approx
 RIM Related Item Management, Store operation Processing, Store  6 On/4 Off Contractors
Warranties, Store Reports Transmission, CIS- Competitive
Intelligence System , Location Hierarchy
 Product Pricing, Vendor Agreement, Management , E-Catalog
(SOS) , Vendor Services Management (VSM), Market Research

Technology Scope for Onsite/ Offshore

 3 Lowes resources can be freed up for Projects

 Mainframe, DB2, AIX Unix, CICS , COBOL, JAVA, J2EE, C , C++,
 Offshore can take up Mailbox support
ORACLE, Visual Basic 6.0, COOLGEN, Teradata , Sybase, UDB,
 Offshore can take up Cool:Gen support
3rd Party Packages

Application Details Scope of work at Onsite/offshore

 Approximately 15 year old in house Apps. 20 to 30 % External 3rd OnSite: 6

party Softwares Offshore :4
 Very little knowledge documents  Mailbox & On-Call support
 3rd Party Applications like Red Prairie, Unica, Vertis  Maintenance & Support
 50% Enhancement, 30% New Development, 20% Interface  Testing / Data setup etc
 Job Monitoring & Support

Key Observations:
• Limited documentation on Existing Systems
• Need to create knowledge repositories to reduce resource dependencies and reach target resource model
• Application to be sunset near-term – evaluate pending sunset opportunities
• Knowledge Institutionalized in current team
• Functional rotational model
• Near term opportunity to evaluate Off shoring : Cool:Gen based Application support

CSC Proprietary and Confidential 13

 Top Down Analysis: Logistics
Business Definition Current Team Structure

 Business functions: Inventory Control, Logistics, AutoBill  1 Application Manager

 8 Tech Lead /SSA Employees
 9 Contractors (2 ON/7 OFF)

Technology Scope for Offshore

 Packages: i2 – Inforem, Cool-Gen, Peoplesoft – PO, Savvion,  2 Lowes Developers can be freed up for Projects
Manugistics – Networks (demand planning), JDA – Networks Demand,  Add 2 offshore consultants
Fulfilment & Monitor  PBI Analysis & Mailbox support can be moved to offshore
 Languages: COBOL, Java, PL/SQL
 Architectures: Mainframe, Unix, EDI, Websphere, BEA Weblogic
 Databases: DB2, oracle 9i
 Reporting:
Scope of work at offshore

Application Details OnSite: 2

Offshore :7
 Approximately 10+ year old Apps.  Mailbox & daytime On-Call support
 Very Critical from Business stand point  Maintenance & Support
 3rd Party Applications like Inforem/Manugistics  Testing / Data setup etc

Key Observations:
• Complete & consolidate documentation on Existing Systems & Interfaces
• Need to create knowledge repositories to reduce resource dependencies
• Review Remedy process to better handle Business expectation & response time
• Clearly understand the Knowledge Institutionalized in current team
• Functional rotational model
• Near term opportunity to evaluate Off shoring :
• Cool:Gen & Java skill set need to go to shared pool model

CSC Proprietary and Confidential 14

 Estimation Methodology – Bottom-Up Approach

1
Application Analyze applications based on various parameters:
Application Criticality, Ticket Volume, Technology, Documentation, Age,
Complexity
Stability, # of users etc.
Analysis Arrive at Application Complexity based on Scientific approach

Use CSC’s
2 Estimation Leverage CSC’s estimation proven guidelines for team size
required based on Application Complexity & Criticality.
Model

Support Team
3 Size Based on the Analysis & CSC’s estimation guidelines, calculate the
Team size required to support Application Portfolio
Calculation

CSC Proprietary and Confidential 15

 Portfolio Analysis
Application Support Complexity Analysis – M&M

100% 7% 7% 5% 10% 5% 5% 5% 5% 5% 5% 5% 7% 5% 7% 10% 7%

Documenta
Application Supported Maintenanc Web-based Developme
Business Process Application tion Quality Number of Database Host Business Infrastructu
Application Name Total Score Classificatio Age of Apps by Vendor e Contract App? (Yes Platform User Group nt Tool Middleware # of Users
Area Complexity & Tickets Technology solution Criticality re
n (Yes or No) (Yes or No) or No) Used
Availability
Ad Area
Advertising Medium 1.73 3 3 2 2 2 0 3 2 2 1 1 1 3 1 1 1
Administration
Gift Card
Advertising Complex 1.78 3 3 2 2 0 0 3 2 2 2 1 1 3 1 2 1
Fulfilment
EDAM (Enterprise
Digital Asset Merchandising Simple 1.48 3 2 2 2 0 0 1 2 1 1 1 1 3 2 1 1
Management)
Item
Merchandising Medium 1.77 3 2 2 2 0 0 2 2 1 1 1 2 3 3 2 1
Management

Application Support Complexity Analysis – Logistics

100% 7% 7% 5% 10% 5% 5% 5% 5% 5% 5% 5% 7% 5% 7% 10% 7%
Documenta
Business Application Supported Maintenanc Web-based Developme
Application tion Quality Number of Database Host Business Infrastructu
Application Name Process Total Score Classificatio Age of Apps by Vendor e Contract App? (Yes Platform User Group nt Tool Middleware # of Users
Complexity & Tickets Technology solution Criticality re
Area n (Yes or No) (Yes or No) or No) Used
Availability
Autobill Logistics Very Complex 2.03 3 2 3 2 1 3 1 2 3 1 1 2 3 2 3 0

Replenishment Logistics Complex 1.98 3 2 3 1 1 3 1 3 3 1 1 2 3 2 3 0

Supply Chain Planning Logistics Simple 1.54 2 3 1 1 1 1 1 2 3 2 1 1 3 1 2 0
Purchasing Logistics Medium 1.69 2 2 1 1 3 3 1 2 3 1 1 1 3 2 2 0

CSC Proprietary and Confidential 16

Portfolio Analysis
M&M
Support Complexity Analysis - M&M Application Criticality Analysis

25 25

20 20
Very Simple
15 15 Mission Critical
Simple
Business Critical
Medium 10
10 Non-Critical
Complex
5
5 Very Complex
0
0
Advertising Merchandising Pricing
Advertising Merchandising Pricing

Logistics
Support Complexity Analysis - Logistics Application Criticality Analysis

25
25
20 Very Simple
20
Simple Mission Critical
15 15
Medium Business Critical
10 10
Complex Non-Critical
5 5
Very Complex
0 0
Logistics Logistics

CSC Proprietary and Confidential 17

 FTE Estimation Outcome

CSC’s Support &

Application Support
Maintenance
Complexity Analysis
Estimation Guidelines

M&M Logistics
Team Size Estimate Team Size Estimate
40 25
34.5 21.4
35
30 20 18
30
25 23.4 14.2
15
20
15 10

10
5
5
0 0
Fully Mature SLA Based Best-Effort Current Team Fully Mature SLA Based Best-Effort Current Team

Helped us in arriving at a range required to support the Application Portfolio

CSC Proprietary and Confidential 18
 Bottom-Up Analysis
Alternate approach – Ticket based

CSC Proprietary and Confidential 19

 Analysis of Open Tickets – Ticket Ageing
Group Priority Number of Open Tickets with Age in Days
1-2 2-10 10-30 30-100 100-200 200+ Grand Total
M&M - INC Critical 1 1
High 1 4 5
Medium 13 2 1 16
Low 3 3 25 15 15 61
INC Total 3 5 42 17 16 83
M&M – PBI High 1 1 2 4
Medium 5 12 21 5 4 47
Low 23 14 30 4 11 82
PBI Total 29 26 52 9 17 133
M&M – PKE Critical 1 1
High 14 1 15
Medium 1 1 27 9 18 56
Low 1 9 22 11 5 48
PKE Total 2 10 63 20 25 120

Tickets Highlighted in Red are where the age is beyond the best practice limits

Data as of 11/19/2010

CSC Proprietary and Confidential 20

Analysis of Closed Tickets - Elapsed Time Analysis
Service SLA Type # of tickets YTD Severity Tickets Closed Ageing % of Tickets
Closed
LOG - INC Elapsed 4 High Not enough tickets  
LOG - INC Elapsed 440 Med > 200 Days 80%
LOG - INC Elapsed 465 Low > 200 Days 80%
           
LOG - PBI Elapsed 6 High Not enough tickets  
LOG - PBI Elapsed 7 Med Not enough tickets  
LOG - PBI Elapsed 11 Low 100 Days 80%
           
LOG - PKE Elapsed 1 Critical Not enough tickets  
LOG - PKE Elapsed 2 High Not enough tickets  
LOG - PKE Elapsed 215 Med > 200 Days 80%
LOG - PKE Elapsed 80 Low > 200 Days 80%
           
M&M -INC Elapsed 2 High Not enough tickets  
M&M -INC Elapsed 278 Med 75 Days 80%
M&M -INC Elapsed 444 Low 20 Days 80%
           
M&M -PBI Elapsed 2 Critical Not enough tickets  
M&M -PBI Elapsed 33 High 20 Days 80%
M&M -PBI Elapsed 417 Med 50 Days 80%
M&M -PBI Elapsed 1026 Low > 200 Days 80%

M&M -PKE Elapsed 37 High 80 Days 80%

M&M -PKE Elapsed 274 Med 100 Days 80%
M&M -PKE Elapsed 251 Low 100 Days 80%
CSC Proprietary and Confidential 21
Tickets Type Analysis
SDG Merchandising & Marketing (Dept 59):
Support Ticket Trend Analysis - by Month
Fiscal 2009
Feb :184
Feb 09
Mar:174
Apr:136 Mar 09
64 May:118
Jun:127 April 09
78 Jul:135 May 09
Aug:169
Sep:150 June 09
51
Oct:136 July 09
11 Nov:140
57 21
27 Dec:158 Aug 09
68 19 Jan:138
10
13 Total:1765 Tickets
Sep 09
15
19 Oct 09
78 29 16
13 16 Nov 09
49 14 7 12
12 16 12
7 5
48 17 12 10 9
11
Dec 09
21 17 10
5
4 10 3
4
7 8
73 12 29 8 11
5 3
6 4
3
6
3
53 6
12 15 2
10 5
6 2
4
12
Jan 10
9 30 14 5 16 7
11 16 13 18 21 23 20 1
5 2
2
9 46 30 11 30 29 11 17 4
3
4
1 1
4
3
2 1 1
15 3
5
1 12 10 4
2
3 1
3
7 2
1
3
1 2
1
3
1 1
3
2
x n re r t s r ff ..
Fi so lu tio
n
th
e es es rro tio
n
in
g
-O h en re.
ta i i s u c E a n e i
li a Fa ue
O q
Ac it ai rit -W u
Da r n Q Re y ser i m Tr W at eq
se tio n b ri t U l t h R
/ U a tio Jo cu te
m
d uc d-
W ss
IT il c a e s o Di i ne
p ic S
Sy
r - s
Ap ppl P ho Bu
A W d
se
is
M

Use techniques such as Pareto analysis to systematically analyze the tickets

to identify root causes and fix them
CSC Proprietary and Confidential 22
 Proposed Support Model
M&M and Logistics

CSC Proprietary and Confidential 23

Solution Recommendations
Proposed Support & Maintenance Team – M&M and Logistics

Lowes CSC Onsite CSC Offshore Total

14 12 22 48

Rationale
• Ticket Ageing Analysis shows inconsistent processes adherence
• Offshore-ability analysis highlighted the roles that can be transitioned with minimal
risk i.e. Cool-gen/Java & Mailbox Support

Benefits to Lowes
Immediate
• Moving to an SLA based model with predictable performance levels
• Increases offshore ratio thus reducing the over-all Total Cost of Ownership
Long Term (6 months later)
• Move to 30 :70 Onsite : Offshore mix (closer to industry standard)
• More scope of work can be added with no increase in CSC’s Onsite team
• Better management of support with SLA guidelines & reporting
• Better utilization of skilled pool of resources
Support for Enhancements need to be discussed along with SLA discussions
CSC Proprietary and Confidential 24
Benefits of Proposed Model to Lowe’s

• CSC supporting M&M and Logistics
Portfolio with Lowe’s Team in Time &
Materials Model
• Inconsistent processes
• Sub-optimal offshore:onsite mix
• Resource model Not an SLA driven
model
• SLA based model with an industry
standard offshore:onsite ratio
• Predictability in quality of services
• Leverage resources across portfolios
• Clear delineation of support vs.
Maintenance & Enhancement activities

Current State End State

• SLA based offshore:onsite model

• Regular reporting on tickets, resources, progress etc
• More operations-type work will move to offshore that will work
on US Day time hours
• Lowes retains control on prioritization, incident communication,
resource allocation for critical SME resources
Benefits to Lowe’s

CSC Proprietary and Confidential 25

Transition Approach – M&M and Logistics

CSC’s Typical Transition

Framework

Transition Highlights for Lowes

• No Application Knowledge Transfer Required
• Focus during Transition would be
• Streamline Processes to capture critical metrics & reporting
• Baseline SLAs
• Define & Finalize Governance framework
• Proposed Transition Duration: 6 - 12 Months

CSC Proprietary and Confidential 26

Transition to SLA Based Support Services
Current-
Staff Aug Engagement
• Multiple vendors and
contractors
• No formal effort and metric
tracking and reporting in all areas
• Manages each of the delivery
milestones
• Focuses on effort / task
assignment
• Focus on inducting the right
resources
• Varied & disparate processes
across varied business units /
functional groups.
• Limited access to service provider
tools and process frameworks
• People driven instead of process
driven delivery
CSC Proprietary and Confidential
Future –
Collaborative Transformation
SLA Based Support Services
Transition Stabilize Optimize • LOWES focus on business
transformation, manages efforts &
Improvise Innovate tasks and budgets
Delivery process/ • SLAs across IT & Business
Transition Plan
Work flow
Capacity Resource SLA, Metrics & • CSC manages SLAs
Model Reporting
• Implement LOWES standard
Governance Tools & Dash board
Delivery Process and tools
Continuous Process improvements • Unified process across business
Domains
 Standardized Delivery & work flow process
• CSC manages delivery milestones
 Resource Optimization • LOWES focuses on demand mgmt,
 Transparent Governance • CSC focuses on Resource mgmt
 SLA compliance from Steady state Day1 • Complete access to CSC best
 Productivity improvement s practices, tools and process
frameworks
6-12 Months Timeline
27
 Steady State Approach
Support Coverage

9:30 AM 11:00 PM

11:30 AM 1:00 AM

12:30 PM 2:00 AM

1:30 PM 3:00 AM

2:30 PM 4:00 AM

4:30 PM 6:00 AM

5:30 PM 7:00 AM

7:30 PM 9:00 AM

8:30 PM 10:00 AM

10:30 PM 12:00 PM

12:30 AM 2:00 PM

1:30 AM 3:00 PM

4:00 PM

3:30 AM 5:00 PM

4:30 AM 6:00 PM

5:30 AM 7:00 PM

6:30 AM 8:00 PM
10:30 AM 12:00 AM

9:30 PM 11:00 AM

1:00 PM
3:30 PM 5:00 AM

6:30 PM 8:00 AM

8:30 AM 10:00 PM
7:30 AM 9:00 PM
US Time (EST)

11:30 PM

2:30 AM
India Time (IST)
US Onsite Team                 US Shift            
India Offshore Team India Shift                        
On-Call US Team                                       US On-Call    

• Onsite Team to work on Support & Maintenance tickets during US day time.
• Onsite Team to hand-over Analysis work to Offshore Team
• Offshore team analyses the issues & provide inputs to Onsite Team
• Offshore Team to provide support during Non-US business hours
Standardized Process
• Use of standard ITIL aligned processes
• Capture Relevant information for performance measurement
• Clear delineation between support, maintenance & enhancement activities
• Report Performance on regular basis

CSC Proprietary and Confidential 28

SLA and Metrics SLA Dashboard Sample

Tools, Metrics and Reporting Enabling an Understanding of

IT Effectiveness in the Business

Semi-Annual Business/Customer Survey

Quarterly Customer Performance

Appraisal Review (CPAR)
Balanced Scorecard (BSC)
Monthly and Account Performance
Assessment Report (APAR)

Monthly Operational Metrics,

End-to-End Metrics

Real-Time Feedback
Daily (input from “as service transacted”)

Communication Program
CSC Proprietary and Confidential 29
 Governance Model
Executive Steering Committee

Quarterly / Bi-Annual
Customer CSC
Executive Sponsor

Strategic
Executive Sponsor
PMO Director Business Unit Head
ADM Director Account Executive , Global Delivery Head

.. Business Oversight & Service Delivery Objectives .. Engagement Performance / Financial Results .. Business Plans .. Financials
.. Long-term plans, business trends and directions .. Issues & Dispute and Escalation management .. Service Level Agreements .. Customer Satisfaction survey
.. Alignment of Customer and CSC goals .. Authority and composition of other committees .. Continuous improvement .. Audit & Benchmarking Results

Program Steering Committee

Customer
Multi-Vendor Management Committee
CSC Onsite CSC Offshore
ADM / PMO Director Customer CSC Other Supplier
Service Delivery Director Service Delivery Director
Transition Manager (As required) Contract Executive Account Exec Account Exec
Service Delivery Managers Offshore Managers
Senior Manager/Portfolio Manager Finance Manager / Transition ODC Head ODC Head
.. Service Performance .. Project Status Reports .. Financial performance & Pricing Manager Transition Mgr Transition Mgr
Escalation

.. Critical Deliverables .. Credits and Earn-backs .. Customer Satisfaction Survey .. Multi-Vendor agreement mgmt. .. Summary Executive Reports

Monthly / Quarterly
.. Contract & Unresolved Issues .. Changes & Scope Mgmt. .. Audit & Benchmarking Results .. Risk Management .. Multi-Vendor Management Reports

Tactical
.. Continuous improvements .. Financials
Directives

.. Transition status .. Customer Satisfaction survey

Portfolio Owner Steering Committees .. Change management .. Audit & Benchmarking Results
Customer
CSC Onsite CSC Offshore
Senior Manager/Portfolio Manager
Service Delivery Managers Offshore Managers
Technology / Competency Committee
PMO Director CSC Onsite
Onsite Leads Offshore Leads Customer CSC Offshore
Project Manager (As required) Architects
.. Performance .. Risks .. Management Status Reports Enterprise Architectects Practise Leads
Competency Center
Practise Managers Technical Analysts
.. Consumed & Forecasted Activities .. Resolution of operational issues .. SLA Reports Heads
.. Project Status .. Resolution of disputes .. Deliverable Reports .. Technical Strategy .. Technical Improvements
.. Prioritization .. Review of new opportunities .. Risk Management Plan .. Standards and Product Catalog .. Technology Change Management
.. Issue Management .. Issue Resolution Plans

Operations / Service Delivery Management (Application Group Level & Below)

Operational
Customer CSC Onsite

Weekly / Daily
Project Manager CSC Offshore (India)
Onsite Leads Offshore Leads
Senior Manager (As required) Service Delivery Managers (As required)
Transition Manager (As required) Offshore Managers
Transition Manager (As required)
.. Service Delivery Review .. Escalation of Operational problems .. Service Levels .. Management Status Reports .. Financial performance and Pricing
.. Transition Management Review .. Change Management .. Coordinate and Prioritize Issues .. SLA Reports .. Customer Satisfaction Survey
.. Critical Deliverables .. Dispute Management .. New opportunities & proposals .. Continuous improvements .. Audit and Benchmarking Results

CSC Proprietary and Confidential 30

 Pricing Models – Different Options

Time & Material Fixed Price Outcome Based

Fixed Price Model for Pricing based on Ticket
Support & Volume
Pricing based on FTEs
Brief

Maintenance
based on the team Can be implemented
size Can be implemented post 12-18 months of
post Transition Steady State

No change in Pricing Predictability in Quality Cost of support &

Benefits to

model from current of Service & the price Maintenance based on

Lowe’s

state. Greater control for defined Services the actual effort

on effort spent required. Continuous
reduction of cost due
to productivity
improvements.

CSC Proprietary and Confidential 31

Transformation Journey
Move to Outcome based 1 2
Pricing Model 20

11
c
De Complete Transition for
all Areas

Transition Complete for M&M

and Logistics
t 11
Oc

Begin Transition for other Business Report Metrics on a Regular basis

Areas
11
b
Fe
Due-Diligence for other Present CSC’s findings & approach for
11
Business Areas other Business Areas
n
Ja

Begin Transition M&M and Logistics,

Com Set-up Processes, Governance
me
(Dec ncemen
2010 t
)
Kick-off Transformation Journey

CSC Proprietary and Confidential 32

Next Steps
# Activity Responsibility Due Date
1 Agree on the scope & transition waves CSC, Lowe’s Dec 2
2 Set up Governance Team for the transition CSC, Lowe’s Dec 10
M&M , Logistics
CSC,
3 Transition Plan for M&M, Logistics Dec 17
Lowe’s
CSC,
4 Transition to SLA based model for M&M, Logistics Lowe’s Jan 3

New Functions

5 Due Diligence Study CSC, Lowe’s Dec 6-17

Plan & conduct deep dive of applications landscape in CSC, Lowe’s SME’s
6 Jan 3-12
each of the scope areas
Define and establish
• Transition Plan
7 CSC Jan 21
• Resourcing, time-line, location, deliverables
• Steady State Plan

Transition to SLA based model other than M&M,

8 CSC, Lowe’s Jan 31
Logistics

CSC Proprietary and Confidential 33

 Case Studies

CSC Proprietary and Confidential 34

Case Study – Leading US Retailer

This chart shows the trend of the support tickets over a 21 month period.
The same support team size handled more Service requests, as the
number of incidents have reduced due to process improvements

CSC Proprietary and Confidential 35

Case Study – Leading US Retailer

Resolution Time analysis

35

30
Average Resolution Time

25

20

15

10

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month Severity 1 Severity 2 Severity 3 Severity 4

CSC Proprietary and Confidential 36

Case Study - Innovation – Bottom-up Approach
Our Client Challenge
Increasing volume of
Maint/ Support calls –
High FTE spend
35% of Production issues
reported to
Development) were
‘rejected’
No marked improvement
in Developer productivity
levels
CSC Proprietary and Confidential
CSC Solution Impact to Client
 Cluster Analysis & Re-factoring Reduction in inflow of
 Map Break fixes to Objects that involved code fixes
 Identification of “Fragile” Objects
Maintenance calls /
 Cost-benefit analysis on Fragile Objects – ‘Fix Efforts’ vs. ‘Rewrite Production Support calls
Efforts’ / ‘Re-factor’ by 15% in a 18 month
 BAR (Backlog – Arrivals – Resolution) Analysis period
 Focus on ‘arrival reduction’ rather than ‘resolution productivity’
 SLA on reducing backlogs month-on-month and focus on ‘stability’
and ‘reliability’ instead of ‘Number of fixes’ by Developer
 Context Sensitive help/ eLearning methods Reduction in ‘rejected
 White-papers targeted at Business Users
Undocumented features
Production Support calls’

 Incremental features on enhancements from 35% to 22.5% in a
 Triage Meeting – Planning and Execution Meeting 12 month period, resulting
 Knowledge Management in productive usage of
 Brown-bag sessions Development resources
 Intranet based Wiki sites for Business, Developers and Quality
Analysts
 Published Use Case Studies
 Maintenance teams trained Net Changes across enhancements Increase in Developer
 Maintenance teams building productivity enhancement tools
 Enhanced Test Coverage – addition of unit test cases of Break-
Productivity by 15% year-
fixes as automated scripts into regression suite on-year across
 Automation tools in IDE for code-standardization and uni-code Maintenance teams
compliance, tools
 “Skill Pooling” with pool of technical resources shared across
modules/ products
 Introduction of PSP (Personal Software Process) for effective time-
management and defect-management
37
 Thank You

CSC Proprietary and Confidential 38