Viewpoint: How RightIT™ can be used by federal agencies to create efficient and effective IT operations.

1. RightIT™
Maximizing Government IT Efficiency
by
Eugene Bounds
bounds_eugene@bah.com
Louise Campanale
campanale_louise@bah.com
Marguerite Morrell
morrell_marguerite@bah.com
Michael Schoep
schoep_michael@bah.com

2. RightIT™
Maximizing Government IT Efficiency
The budget deficit and need for comprehensive spending become fragmented, reducing economies of scale and
cuts have increased the need to control spending. Federal resulting in unnecessary cost burdens. Government
agencies must acquire needed Information Technology organizations experience these inefficiencies across
(IT) at the right costs. Booz Allen Hamilton’s RightIT™ all elements of their budgets from desktop to
methodology baselines IT infrastructure and related data centers, in hardware and software, as well as
costs, provides benchmarks to measure IT performance, telecommunications and data networks. Exhibit 1
analyzes alternatives and develops a plan to achieve shows how inefficient practices create unnecessary
efficient and effective IT support. Then, Booz Allen brings complexity in the IT environment and drive up costs. In
together certified cost analysts, world-class IT technologists addition, there are often hidden IT costs (e.g., the cost
and other experts to deliver long-term IT solutions to our of power, real estate, and administrative overhead for
federal agency partners. This paper provides an overview IT operations).
of RightIT™, presents samples of the significant results
Across the federal government, agencies spend almost
achieved by our clients, and outlines how the approach can
$80 billion per year on IT. Because of the significant
be used by federal agencies to create efficient and effective
size of the expenditure, IT is a target for cost-
IT operations.
rebalancing actions and directed budget reductions.
Current State of Government IT Environment Today, the majority of federal IT investments are
As IT enterprises have evolved over the decades, defined, funded, and operated by individual programs
information infrastructure and related applications have of record or functional organizations in a decentralized,
Exhibit 1 | Impact of Inefficient Practices in Current Government IT Environment
Typical Current State Impacts
■ Multiple overlapping systems create a ■ Costly and complex technology
need for expensive system interfaces environment
■ IT requirements are focused on supply ■ Ineffective demand management drives
■ Lack of enterprsise-level acquisition up cost per user
strategy reduces buying power ■ IT is purchased in an ad hoc or
■ Server environments are managed by piecemeal fashion rather than in an
multiple organizations ef cient, end-to-end acquisition
■ IT cost drivers are not well understood ■ Fragmented IT management and
oversight makes accountability dif cult
■ Hidden IT costs often result in
sub-optimal decisions
Source: Booz Allen Hamilton
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3. often ad hoc, manner. In many cases, the individuals identify IT acquisition strategies that capture savings
who generate program requirements are not familiar and drive increased performance. Our comprehensive
with available enterprise capabilities. As a result, assessment will highlight performance improvement
IT environments consist of a patchwork of one-off and savings opportunities as outlined in Exhibit 2.
systems with incompatible, inefficient, and costly The overall objective of our approach is to reduce IT
networks. Furthermore, budgets for power and real spending, while retaining value-added IT capabilities
estate are managed outside of IT programs. These and improving enterprise-level performance.
“hidden” IT costs can account for 30 percent or more
The approach is designed to realize short-term savings
of annual IT operating budgets. The current planning,
at the outset by implementing improvements within the
programming, budgeting, and execution process
immediate control of the IT organization. While initial
does not provide adequate transparency. As a result
savings are being realized, Booz Allen simultaneously
of this lack of insight, it is nearly impossible for
analyzes the IT environment for additional efficiencies
federal agencies to produce a comprehensive, current
that can be harvested as savings over the longer term.
state cost baseline. Without the ability to accurately
characterize IT costs, there is no effective way to With RightIT™, we begin using a diagnostic process
quantify the return on investment (ROI) of IT initiatives to evaluate the client’s entire IT environment. Our
or recommend the most cost-effective approach to approach identifies the total cost of ownership (TCO),
meet federal IT mandates. including hidden IT costs. Our experts then highlight
potential savings in the areas of infrastructure
Achieving Cost-Effectiveness with RightIT™ management (e.g., data center consolidation and
Booz Allen’s RightIT™ methodology is a proven new technologies like cloud computing), requirements
approach to achieve cost-effective IT capabilities. Our management (e.g., service level agreements to control
world-class team of cost, IT, and change management demand), acquisition management (e.g., strategic
experts uses this powerful methodology to analyze sourcing), and process management (e.g., streamlined
both supply and demand factors. It also helps us IT business processes).
Exhibit 2 | Areas for Performance Improvement and Savings with RightIT™
Infrastructure Requirements Acquisition Process
Management Management Management Management
■ Enterprise ■ Service Level ■ Strategic Sourcing ■ Change Management
Architecture Agreements ■ Contract Consolidation ■ Security Organization
■ Data Management ■ Technology Limits ■ Contract Management ■ Performance
■ Data Center on Staff Measurement
■ Outsourcing
Consolidation ■ Budget Transparency ■ Business Process
■ Service-based Pricing
■ Server Consolidation ■ Commercial Market Reengineering
Surveys ■ Portfolio Management
■ Service Consolidation ■ IT Governance
■ Cloud/Virtualization
■ Asset Management
Source: Booz Allen Hamilton
2

4. Booz Allen will identify opportunities for re-designing • We helped a major military command validate its
IT infrastructure utilizing consolidation, virtualization, corporate architecture and performance (CAP)
cloud computing and other technologies. These standards for IT services. Our experts then
technologies maximize system availability and are baselined the command’s 10 installations against
designed to be rapidly shifted to adjacent systems to the CAP standards, and provided the command’s
accommodate maintenance windows, system outages, Chief Information Officer with “best practice”
and other events that affect infrastructure availability. benchmarked costs for providing IT services at
An enterprise focus eliminates service gaps and each base. The command used the cost model
redundancies. we developed to identify inefficiencies and assess
trade-offs on technology investments. The result was
The RightIT™ approach evaluates IT requirements
a well justified budget for base-level IT services.
from both the supply and the demand management
perspectives. We evaluate which investments are • Booz Allen helped a global pharmaceutical and
required to align with the agency’s end-state goals, and consumer products company make informed IT
we use multiple performance parameters to measure choices that saved between $34 and $50 million
ROI and per-unit technical performance. on a $164 million baseline, or 20 to 30 percent.
The company had a distributed IT function that was
We use the strategic sourcing perspective to evaluate
expensive and difficult to administer. Booz Allen
an agency’s IT environment, identifying near-term
helped them remedy those problems by establishing
cost savings that can offset future investments.
an IT shared services model that was both effective
This analysis of the various cost efficiency drivers
and economical.
ensures that our clients are paying the right price for
the IT services they need. As a result, IT acquisition • A large federal government organization lacked the
management is rational and efficient. capability to effectively manage IT investments. As
a result, it was unable to evaluate benefits, costs
Identifying the right IT organization structures,
and risk in its IT investment projects. Booz Allen
streamlined business processes, and most effective
developed and implemented a portfolio management
governance models are included in our RightIT™
process that resulted in a 40-percent reduction in
assessment. This is not only important by itself, but
proposed enterprise architecture expenditures and a
also helps to fit all the other management elements
21-percent reduction in office automation spending.
together into an integrated IT environment that benefits
The new portfolio management process is both
and serves the entire enterprise.
effective and transparent.
Our comprehensive RightIT™ approach to improving
• Booz Allen helped a government health organization
IT environments ensures that our clients understand
create an effective IT investment management and
which activities have the greatest potential
decision making framework that aligned spending
for improvement and savings. We also deliver
with medical transformation objectives. Booz Allen
a comprehensive efficiency and improvement
analyzed IT requirements, developed an investment
implementation plan that considers mission
evaluation process, built a detailed transition plan,
requirements, available budget resources, timing,
and stood up a governance structure to manage IT
and risk factors, along with the value of enhanced IT
investments. The enterprise wide solution will save
performance and potential savings.
more than $20 million.
Helping Clients Get Results with RightIT™ • A national diagnostics testing company was
Booz Allen’s RightIT™ approach has already helped undergoing a merger and was expected to reduce
government agencies improve IT performance and operating expenses. Booz Allen developed an IT
reduce costs. The following are some of our client infrastructure baseline, determined total cost of IT
engagements: ownership, established benchmarks, and prepared
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5. short-term, mid-term, and long-term action plans or reviewed by government oversight entities. It also
to rationalize IT operation within the merged provides an important support for agency budget
organization. As a result, the client’s IT costs were requests.
reduced by approximately 20 percent, a savings of
$43 million. Diagnostic Phase
• A defense acquisition program inherited numerous Compile Current State Baseline
aging servers with no centralized management A comprehensive understanding of IT expenditures is
process to effectively monitor or manage their important to create a current state baseline. Through
system. As a result, IT costs were very high. Booz careful navigation of multiple appropriation baselines,
Allen re-designed the IT infrastructure utilizing financial systems, and execution vehicles, Booz Allen
consolidation, virtualization, and cloud computing can compile a comprehensive IT cost baseline. During
technologies. These efforts reduced maintenance the initial diagnostic phase, we also establish a series
downtime by 75 percent and saved $6 million in of per-unit costs (e.g., power consumption per server
hosting and licensing costs. We also developed an and cost per user), which are then used to calculate
optimized architecture that used virtualization to expected cost savings associated with IT alternatives.
reduce the program’s IT footprint by 83 percent.
Benchmark Against Best Practices
The Three-Phased Approach of RightIT™ With a TCO baseline established, the RightIT™
To improve IT performance and achieve savings, we approach benchmarks the status quo against industry
implement the RightIT™ approach in three phases: averages. The differences found when comparing the
Diagnostic, Planning, and Implementation (as shown baseline line-items with the benchmarks will help
below in Exhibit 3). This approach ensures that our identify where cost savings can be achieved most
federal clients are compliant with agency mandates effectively. Benchmarking will also highlight target
and documentation requirements that may be audited areas for IT service performance improvement.
Exhibit 3 | Three Phases of Booz Allen’s RightIT™ Methodology
Implementation
Diagnostic Phase Planning Phase Phase
Delivers
improved IT
Identi es each client’s Builds a detailed plan to
performance
unique IT challenges address the challenges
and creates
savings
Implement
Compile Deliver
Benchmark Develop Prepare Ef ciencies
Current Ef ciency
Against Best Strategic Analysis of and
State Implementation
Practices Options Alternatives Technology
Baseline Plan
Initiatives
Source: Booz Allen Hamilton
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6. Develop Strategic Options Deliver Efficiency Implementation Plan
With visibility into how an agency’s IT environment The efficiency implementation plan maps the approved
compares to industry standards, alternatives can be IT solutions into an executable game plan that
identified and evaluated. Our approach considers ensures all the improvement initiative priorities and
which savings and improvement strategies will yield dependencies are integrated and work together to
the greatest value to the organization. Trade-offs deliver the expected results. This step ensures that all
between expected benefits, implementation costs, initiatives contribute to the enterprise-level end-state.
desired service levels, budget resources, and delivery Booz Allen also ensures that robust documentation,
methods are examined to determine which options communication plans, and stakeholder coordination are
will achieve required service levels and generate the part of the planning process.
most efficiency. Through this process, the optimal
architecture and delivery methods are identified. Technology Efficiency Implementation Phase
Typical alternatives include data center consolidation,
Implement Efficiencies And Technology Initiatives
migrating to cloud computing, and performing business
The RightIT™ approach is designed to ensure that
process reengineering across the enterprise. However,
end-state goals for performance enhancement and
every agency’s solution set will be unique.
cost savings are achieved. During the implementation
phase, the Booz Allen team expands to include
Planning Phase appropriate IT experts needed to complete every task
Prepare Analysis Of Alternatives on time and within budget. Our world-class IT expertise
Our approach provides a robust mechanism to evaluate will ensure that the implementation fully achieves the
the TCO of alternatives, whether those alternatives results outlined in the efficiency implementation plan.
exist at the enterprise level (e.g., data center
consolidation) or within a particular concentration Right-sizing with RightIT™
area (e.g., private cloud as opposed to public cloud or The RightIT™ approach is a comprehensive analytical
hybrid cloud). Our methodology accounts for agency- framework for making informed decisions that
specific compliance policies for evaluating technical maximize savings and IT performance, while reducing
and cost parameters, as well as auditing requirements. costs and minimizing risks in pursuing the approved
The RightIT™ approach leverages the expertise of IT solutions. It begins by developing a current state
our world-class cost and IT analysts to evaluate IT IT cost baseline. Once this baseline is established,
alternatives for decision makers. We use agency- appropriate benchmarks will help identify savings and
specific Business Case Analysis (BCA) to highlight improvement targets. The efficiency implementation
the benefits, costs, and risks of various solutions. plan provides a detailed roadmap for achieving cost
The Booz Allen team has the capability to evaluate savings and improved performance. To implement the
the industry vendor base, available contracting plan, Booz Allen will bring world-class talent to the
mechanisms, and the requirements of the federal engagement, ensuring expected results are delivered.
budgeting system to ensure BCA recommendations can
be incorporated into the next budget cycle.
Contact Information:
Eugene Bounds Louise Campanale Marguerite Morrell Michael Schoep
Senior Vice President Principal Principal Principal
bounds_eugene@bah.com campanale_louise@bah.com morrell_marguerite@bah.com schoep_michael@bah.com
703-377-4186 703-377-5242 281-280-6199 202-203-3746
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7. About Booz Allen
Booz Allen Hamilton has been at the forefront of resources, and deliver enduring results. By combining
strategy and technology consulting for nearly a a consultant’s problem-solving orientation with deep
century. Today, Booz Allen is a leading provider of technical knowledge and strong execution, Booz Allen
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civil markets, and to major corporations, institutions, relationships that span decades. Booz Allen helps
and not-for-profit organizations. In the commercial shape thinking and prepare for future developments
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expertise for clients in the financial services, cybersecurity, homeland security, healthcare, and
healthcare, and energy markets, and to international information technology.
clients in the Middle East. Booz Allen offers clients
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deep functional knowledge spanning strategy and
employs more than 25,000 people, and had
organization, engineering and operations, technology,
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and analytics—which it combines with specialized
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expertise in clients’ mission and domain areas to
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help solve their toughest problems.
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