4. IT today is like the automotive sector of 20 years ago
TYPICAL IT COST BREAKDOWN
Infrastructure
50%
Services
17%
Running
LegacyProjects
Integrating
apps. into
legacy
25%
Value-Add
8%
• An industry stuck in design excellence
• The crushing weight of bespoke-ism
• Living on change control
• Over 65% of costs to run legacy
• New apps integration challenging
• Game of diminishing returns
Is there a better way?
5. Industrialising IT through the application of Lean
FUJITSU’S APPROACH TO DELIVERING LEAN IT SERVICES
Standard, pre-tested
assembly components
Continuous improvement
aimed at eliminating waste
Can you
industrialise IT?
6. Fujitsu: where East meets West
FUJITSU IS THE THIRD LARGEST IT COMPANY IN THE WORLD
In summary
• A $43.2bn (€32.5bn) leader in
IT systems and services for the
global marketplace
• Core businesses of:
• Technology Solutions
(System Platforms &
Services)
• Ubiquitous Product Solutions
(PCs, HDDs, etc.)
• Device Solutions
• Fujitsu has the highest share of
the IT services market in Japan,
the 3rd highest worldwide
• Sales and support operations in over 70 countries
• 161,000 employees worldwide
Americas
11,300
EMEA*
22,300
Asia-
Pacific
28,700
Japan
98,700
7. Lean is fundamentally a mind-set
Relentless Customer Focus Taking the Long Term View
Respect for the Individual Collective self-improvement
9. An architecture for delivering service
MAKING SERVICE ENVIRONMENTS MORE LIKE FACTORIES: HIGH EFFICIENCY AND STANDARDISATION
First
Contact
Second
Line
Desk
Side
Services
Networks Data
Centres
User
Demand
Traditional Environment
• Unpredictable Demand
• Optimised silos
• Reactive approach
• Disempowered culture
• Technical measures
• Non-Standard processes
Sense and Respond
• Predictable Demand
• Optimised end-to-end
• Proactive approach
• Empowered culture
• Business measures
• Standard processes
Increase predictability
in user demand
Eliminate Waste Demand
Reroute to Cheaper Channels
Optimise end-to-end
delivery and standardise processes
Eliminate Waste Activities
Shift work to the left
Service Integration
Management and Audit
Process Ownership
10. An architecture for delivering operational excellence
Sense and Respond:
Delivering Lean Service through Continuous Improvement
Lean Tools and Techniques
Six-Sigma:
Reducing Defects and Variability
Business Process Architecture:
Fundamental Business Process and IT Infrastructure Design
Business Operating Model:
Business Architecture and Context
11. A day at the customer interface
Communications Cell
15 min/day
•Customer value
•People
•Performance
•Improvement
…Team 1
answers
calls as
usual
Pareto
Analysis
Value
Failure
Ratio
Statistical
Process
Control
Creative Problem Solving
Small team structured
improvement process
Kaizen
Large team three-five day
process improvement
workshop
Audit Board
Management audit
of Standard Work
and issues identified
9:00-9:15am
Communications Session
Review and Plan
9:15-1:30pm
Service Delivery
Performance analysis
1:30-2:15pm
Issue Identified at 1:00pm
Problem solving session
5:45-6:00pm
Audit Boards Updated
Senior management visibility
…Team 2
continuous
improvement
analysis
Gemba
Management Go-
See
Hoshin Kanri
Policy Deployment
12. CREATING AN EMPOWERED CULTURE AT THE CUSTOMER INTERFACE
A day at the customer interface
13. Striving for better service at lower cost
THE ECONOMIC AND SERVICE BENEFITS OF “SHIFTING TO THE LEFT”
15. Lessons Learnt
Capacity creation not cost reduction
“If it ain’t broke, improve it!”
Emphasis on small, incremental, sustainable
Sharing, not imposing best practices
Quality first, then costs
Inverting traditional hierarchies
Treating “urgency addiction”
Celebrating problems
Looking across organisational silos
Leader as a coach and mentor
16. Can IT be delivered at half the cost?
THE POTENTIAL IMPACT OF DELIVERING IT THE LEAN WAY
Infrastructure
50%
Services
17%
Running
LegacyProjects
Integrating
apps. into
legacy
25%
Value-Add
8%
Infrastructure
20%
Improve
10%
Running
Legacy
Orchestrate
15%
Value-Add
55%
Projects
Project prioritisation through
value based governance
Building from standard, pre-
tested components
Building from a standard,
validated library
Eliminating process and
demand waste
Standardisation and
rationalisation of processes
