Operational Excellence And Global Delivery - Atos
Operational Excellence and Global Delivery Tarek Moustafa, Group CIO Hubert Tardieu, Global C&SI Francis Delacourt, Global MO London, December 2007 Atos, Atos and fish symbol, Atos Origin and fish symbol, Atos Consulting, and the fish itself are registered trademarks of Atos Origin SA. June 2006 2006 Atos Origin
Launch of the "3 objectives over 3 years" » »MS Global »Support factory functions »Global and »Global focused markets sales »Purcha-»Talents sing » An integrated and related set of initiatives 1 REVENU ES »Industriali zation »Global Sourcing »Portfolio review and optimization » Improve operational efficiency COST S Operate as a global company Accelerate organic growth capabilities
Impacts on Process, Organization, Systems & Tools Leverage Atos Origin scale for growth and efficiency 2 Complete Integration Common Enterprise Framework Selected Consolidation Aggregation Risk of Unnecessary spending Establish basic Inter-business linkages Retain All models Adopt one model Standardize Key Processes Systems & Tools Incapable of supporting desired business outcomes Shared Fully Network of Services Integrated Businesses Degree of integration determined by business requirements Holding Company
From 3o3 to Operational Excellence IT Solution & Tools Organization » Organizational Responsibilities » Process Owners who perform process management and control » IT-solutions which support Business Process automation and business change Process Required controls KPIs » Performance driven » Change linked to Financial measures Risks » Business Process Risks and related Controls to meet regulatory and compliance requirements 3o3 Operational Excellence Business as Usual It is about Controlled Change and Business Continuity 3
The purchasing action plan has moved into execution » Clients/ Offer Global 7 Initiatives » Sales » Industrialization Delivery » Global Sourcing » Global Factory Talents » Talents » Finance, HR, IT Support Functions » Purchasing 4 » Consolidation of Atos Origin purchasing power and supplier rationalization
An initiative to focus finance, HR and IT teams on added-value tasks » Clients/ Offer 7 Initiatives » Sales » Industrialization » Improved business support Delivery » Global Sourcing » Global Factory » Less administration Talents » Talents Global » Finance, HR, IT Support Functions » Purchasing 5
The Talents initiative will help us become an employer of choice in the IT sector » Clients/ Offer Global 7 Initiatives » Sales » Industrialization Delivery » Global Sourcing » Global Factory Talents » Talents » Finance, HR, IT Support Functions » Purchasing 6 » Attract, develop and retain the best people
Transformation of our core business processes » Industrialization » Global » Global Sourcing » Delivery » MS Global Delivery 7
Through the Global Delivery Strategy we have started to leverage our scale and presence ORGANISATION » Centers of Excellence » Solutions » Innovation and R&D » Processes » Service Lines » Geographies QUALITY EXPERTISE » Industries » Technologies » Products Bundle and align existing knowledge 8
through economies of scale and reuse Global Delivery Industrialization » Closeshore » Nearshore » Offshore 4 critical success factors » CMMI » ITIL » Shared Services Centers » Common processes » Common tooling » Global MO factory » Mainframe consolidation » SAP Industry Standards Partnerships Higher growth, increased efficiency 9
From Geographies to Matrix From To Management Board Management Board Support Functions GMO C&SI Region 1 Region 2 Region 3 Region 4 AEMS FR GCE ES NL UK IT ROW AEMS WL Group Sales & Markets Consulting Systems Integration Managed Operations Support Functions 10
ACSIMO – Leverage presence x-service line Using Enterprise Architecture to build endto-end solutions Rollen en actoren Klant Verzekerde ArchiSurance Verzekeraar Externe business services Claim Claim Registratie registration service Klant Informatie Service Claim Uitbetaling Service Claimafhandeling Registratie Acceptatie Beoodeling Uitbetaling » Atos Consulting » Strategy and Business Case » Business Processes Models » Operational Transformation Externe applicatie service Klant administratie service Claim administratie service Betalings service Application components and services Claim gegevens service Klant gegevens service CRM syste em Polis administratie Financi ele applicati e Extern e infrastructu ur service Claim files service » Systems Integration » Product implementation » Integration » Rollout Klanten files service Infrastructu ur zSeries mainframe DB 2 database 11 Sun Blade iPlanet app server Fin applicati e EJBs » Managed Operations » Infrastructure » Storage » Compliance
Distributed delivery Standard delivery Global Delivery key enablers: Global Sourcing and Industrialization 12 » From T&M to SLA » Common processes and tools » Consistent metrics and KPIs » Output based » Customer intimacy and innovation with resources close to market and customer » Efficiencies of scale through specialized factories in low cost regions » Capabilities to deliver to all regions » Shared service centers provide common infrastructure for all Atos Origin staff
Global Sourcing Centers for SI: Critical size across the regions through specialization Morocco Armenia Casablanca Yerevan French clients IBM Mainframe India Mumbai Pune Bangalore Calcutta Primary offshore center IBM Technologies SAP, Oracle .net, J2EE 13 Brazil Curitiba US time zone Ibero-European clients SAP configuration services, CRM
SI: In 2007, progress on global sourcing has been best-in-class (70% organic growth) 5000 Offshore 7500 » New centers in Mumbai and Bangalore; new campus in Pune in2009 » New center in Curitiba » Expansion in Morocco Closeshore 10000 » Delocalization plans in all countries (e.g. 700 staff from Paris to regions) » Germany: Meppen » Spain: Valladolid » UK: Nottingham 2500 0 2006 2007 2008 2009 Offshore Closeshore 15000 12500 Certification 10000 7500 » Number of staff CMMI3 certified multiplied by 6 between 2006 and 2009 5000 2500 0 2006 2007 2008 2009 CMMI 3 14
Substantial progress has been achieved in SI tooling Tooling Shared service center for development & maintenance tools » Testing factory » Requirements Management » Project Management » Productivity Management » Data Mining » Configuration Management Operating Model 20 000 » Software Development and Maintenance Centers” (SDMC) » Global Software Engineering Process Group (SEPG) » T&M part decreasing significantly for all 15 000 10 000 5 000 0 2006 2007 2008 2009 Local Shared 10 000 T&M 7 500 5 000 2 500 0 2006 2007 2008 2009 key enablers for global Sourcing and Industrialization 15
Renault (Industrialization and Global Sourcing @ work) » 5y Application Management Outsourcing » Customer facing unit in Paris managing delivery centers in France (closeshore), Spain, India and Brazil » Common processes, tools and metrics » Implementation of Industry standards (CMMI) consistently through all locations » Output based pricing with contractually committed cost savings through » Productivity improvements (CMMI) » Global Sourcing » Enterprise Architecture (Consulting) Early large European AM outsourcing with successful delivery 16
ChemChina (ACSIMO @ work) SAP Consulting and Systems Integration 1. Jan ’07: Business and IT Consulting program successfully delivered out of UK and China 2. Sep ’07: Global Strategic Partnership Framework Agreement for BC and IT 3. Oct ’07: Signature of initial SAP implementation deal for systems integration in APAC » Competence Centers: Support from SAP-MMT competence center in Walsrode (DE) and TCC in Brussels (BE) Successful Consulting engagement opening up significant SI opportunities 17
Atos Origin Global Sourcing Model for MO Distributed delivery through standard processes and tools Morocco Casablanca India Mumbai Poland Bydgoszcz Service Service Desk Desk Op. Center Op. Center Level 2 Op. Center Level 2 18 Malaysia Kuala Lumpur Service Desk Op. Center Suriname Paramaribo Service Desk Brazil Sao Paulo Service Desk Op. Center Level 2
MO: Significant progress has been achieved on global sourcing & ITIL 2000 25% 1000 15% 500 10% Offshore 30% 1500 » Service Desk, EMC and 2nd level support » Built in the Service Portfolio » Activities are moved offshore Global Processes Offshore » Continuous Service Delivery Model (CSDM) 100% ITIL compliant Globally deployed 7,000 CSDM certified operational staff worldwide 0 2006 2007 2008 2009 12 000 IT IL (CSDM ) 10 000 70% 8 000 65% 6 000 60% 4 000 2 000 50% 0 2006 2007 2008 2009 Well on track for balanced sourcing 19
MO: Significant progress has been achieved on global sourcing & ITIL Monitoring Center (EMC) Server Management 60 » Stages: Basic Standardized Consolidated Optimized 50 40 30 20 250 200 » Consolidation of EMC and further standardization and industrialization 150 ² 100 50 10 0 2006 2007 2008 2009 Plan to move towards Optimized 0 2006 2007 2008 2009 Server/Oper. Server/Eng. Service Desk Field Services 50 40 150 30 » Increased efficiency through optimized process and industrialization 20 10 0 » Increased usage of remote repair and optimized resource deployment 100 50 0 2006 2007 2008 2009 2006 2007 2008 Incidents/Eng. Calls/Analyst Significant efficiency improvement 20 2009
Alstom Global Delivery Model Global support for 48.000 seats and 53 countries Netherlands and Italy Morocco Casablanca Poland Bydgoszcz Malaysia Kuala Lumpur Suriname Paramaribo Brazil Sao Paulo Alstom phase 1 (seats): Alstom phase 2: Belgium (1.024), Brazil (2.323), Canada (1.050), France (12.000), Germany (4.085), India (1.400), Ireland (50), Italy (2.868), Mexico (365), Netherlands (107), Poland (1.776), Portugal (227), Spain (1.381), Sweden (925), Switzerland (6.208), UK (3.865) and US (4.630). Argentina, Australia, Bahrain, Bulgaria, Chile, China, Colombia, Croatia, Czech Republic, Denmark, Dubai, Egypt, Estonia, Greece, Hong Kong, Hungary, Indonesia, Japan, Korea, Latvia, Malaysia, New Zealand, Norway, Panama, Peru, Philippines, Romania, Russia, Saudi Arabia, Slovakia, Taiwan, Thailand, Turkey, UAE, Venezuela and Vietnam (with 3.745 seats combined). OnOn-shore 21 Near/offNear/off-shore
In summary » Atos Origin owns a vast amount of industry, technology and process expertise. » We are increasing the leverage of our scale and presence in order to design, build and globally operate innovative solutions faster, more efficiently and to a higher level of quality. 1 2 3 Global Sourcing Industrialization Innovation are key elements of this strategy » We will deliver these elements through a common operational model to best-in-class industry standards 22
Operational Excellence and Global Delivery Tarek Moustafa, Group CIO Hubert Tardieu, Global C&SI Francis Delacourt, Global MO London, December 2007 Atos, Atos and fish symbol, Atos Origin and fish symbol, Atos Consulting, and the fish itself are registered trademarks of Atos Origin SA. June 2006 2006 Atos Origin
Operational Excellence and Global Delivery Tarek Moustafa, Group CIO Hubert Tardieu, Global C&SI Francis Delacourt, Global MO London, December 2007. 1 »Industriali zation »Global Sourcing »MS Global factory »Talents »Global markets »Global and focused sales Operate as a global company »Support functions »Purcha-
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