Download From "Service" to Service - Technology on top of a mindshift

From “Service” to Service
Technology on top of a mindshift
Nenad Jelovac
Zagrebacka banka dd
Zagreb, Croatia
SEUGI 18
Dublin, June 20-23, 2000
Context (I)
Croatia
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Context (II)
Croatia
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Middle/South-Eastern Europe
Former Yugoslav republic (1 of 6)
Residence: 4,500,000 + 1,000,000 abroad
GDP: 4,500 USD per capita
Mediterranean & Austro-Hungarian culture
45 years of socialist economy
War damages: 30+ bil. USD; not final
Transition: painful labor
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Context (III)
Zagrebacka banka dd
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“European 500” bank; international
Subsidiaries: banking, investments, insurance
Eurocard/Mastercard, VISA issuer
Group assets (1999 Annual Report, in USD):
– Total: 3,5 bil.; growth: 14%; dividends: 5%
– Liabilities: 3,2 bil., funds: 300 mil.
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Bank only:
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4500 employees, 130 branches
1000+ tellers, 200+ ATMs, 2000+ POSs
1,5 mil. customers, 2 mil. accounts
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Legacy
“Servicing” the “economy”
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Socialist banking model:
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banks founded and “owned” by their debtors
role: to “service” their (planned) businesses
earning money: “unacceptable”, “imperialistic”
IT role: planned, budgeted
Changes: state sponsored
– rare, predictable, slow
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“Service” level: predefined, restrictive to the plan
ZB: pioneering IT development, investing
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Why SLM?
The mindshift
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Legacy:
– service provider: individual
• individual(s) = application; carried over to new technologies
• everyone is a “banker”: common goals & objectives, loyalty
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Currently:
– budget, lot of money, “fuzzy” measures of quality
• antagonisms between IT and the business
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Target:
– service provider: system; “culture” of service
• cooperation between IT and the business
• measurability of quality, transparency of the “price”
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What is a “service level”?
A mutual understanding
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A measurable level of a predefined service
Service is defined by:
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scope and content
scale: dinamics and volumes
procedures, standards
roles and responsibilities
Measures are defined by:
– the means of measurement
– acceptable minimums
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Financial aspect: service level has a price!
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Why and how SLAs?
The bypass
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Contains:
– at the basic level:
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basic services, terms, availability
definition of services measurability, “rules of the game”
establishment of the control mechanism
establishment of the Problem Management
– at the service level:
• objects of measurement (elements to be measured)
• units of measurement and minimal (end) criteria
• measurement techniques and modes of verification
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Basic measures meaningful to users: LUWs
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The Scope (I)
Basics, but broad as can be
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To implement SLAs with all IT customers
within the Bank
– availability, security, integrity, capacity
• now: bulk price, quotae, tolerance
• target: unit prices, exact measures, tools
– maintenance, enhancements, performance
• bulk price, quotae, tolerance
– development, technology, services, education
• “by order”, prices per solution (final product)
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Problem Management
– Help Desk, escalation procedures
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Goals and Objectives
Start the shifting of minds
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Transparency of the budget:
– Operations: delivered value for given money
– Development: money needed for requested value
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Cut in operational costs & risks:
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Problem Management
Equipment of Help Desk
Establishment of escalation procedures
Intro of “service culture”: system to system
Organizational adjustments
Change of business processes & procedures
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Prerequisites
Lacking some fundamentals
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Stabile environment:
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applications (functionality)
technology (availability, performance)
logistics (support, procedures, standards)
Two-way communication: IT, users
Responsibility, specialization
Monitoring, Help Desk: tools
Disaster Recovery
Accounting: basic, based on “good will”
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Technology
Let’s talk it over
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“Measurements” on both sides of the service:
– IT: monitoring up to the end-point
– users: “manual” evidences (forms)
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Control mechanism:
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coordination
monthly reports, previously agreed upon
arbiter
Definition of roles, responsibilities and
procedures with third parties
– both from inside and outside the Bank
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Timeframe
Harsh
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Pilot SLA: production
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2Q99
creation of contract and appendices
presentation to the Board
negotiation and signing
First SLAs for other applications
Creation of SLAs for:
3Q99
4Q99
– development
– services (other)
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ITSV: implementation
ITCM: implementation
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2Q00
4Q00
The Scope (II)
What you see is what you get
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To implement SLM and Charge Management
on all core platforms and applications; incl.:
– database/application platforms:
• OS/390, DB2, CICS
• Windows NT, SQL Server
• Solaris, AIX, Informix
– network: everything with an address
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Novell, Token Ring
TCP/IP, Ethernet
routers, IDNXs, Promina, …
– office support: mail, workflow, ...
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“Proof-of-Concept”
Adolescence syndrome? No!
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ITSV implemented on:
– OS/390 (MXG collector for SMF data)
– Solaris (generic instead of native HP OpenView
log collector)
– PDBs on both OS/390 and Solaris
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Reports on intranet
Education, organisation, customization
Elapsed duration:
– 4 weeks off-line preparation, low priority project
– 1 week execution, 4-member core team
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Dependencies
Everything conceivable
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Monitoring
Disaster Recovery
Security
Accounting
All development projects
– client/server/host: in-house development, vendor
supplied, third-party (outsourcing)
– new products/technologies
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Testing
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Conclusion
“I want you, I need you…”
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Introduction of SLAs:
– prerequisites:
• partially present
• have a timeframe, price, other prerequisites
– expected results/benefits:
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change in IT’s financial picture (“cost”)
BPR (IT, business)
cultural change
FOR ADDITIONAL INFO...
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Zagrebacka banka, Paromlinska 2, HR-10000 Zagreb, Croatia
Fax: +385.1.610.48.55, e-mail: [email protected]
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Thank you!
Questions eagerly taken.
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