Paper Presented at the ICMG 2011 Enterprise & IT Architecture Conference in Bangalore

1. Architecture World ‘11 . Using the Zachman’s Architecture framework to realise ITSM Transformation at Tesco Sukumar Daniel, Managing Consultant, Action Research Foundation Abhiram Jayaram, Program Delivery Manager, Tesco Hindustan Service Center

2. Overview Tesco World Wide Balancing Act – Tactical Versus Strategic Building on the First Baseline with Upgraded Objectives Architecture Makes a Difference Architecture World ‘11

3. Tesco World Wide Architecture World ‘11 Tesco - Top Retailer in UK, operates retail business in 12 Countries. Dotcom in UK and other countries, Bank in the UK and Ireland, Malls in China, Malaysia

4. Need for Change – Business Drivers The Retail Business is heavily dependent on IT for serving customers and winning in the marketplace Issues stemming from IT related problems can impact customer satisfaction and business outcomes, including direct financial loses Management of IT services need to be improved to align IT to business needs and ensure that IT services perform in a reliable, dependable and consistent manner However we are unable to measure our performance at all levels, from divisional to individual, consequently we can not manage the processes effectively

5. Service Operations – Some Facts(UK IT Services Data) Each week we deal with around 21,000 contacts We process 350 changes each week, ranging from a simple code change to a major release Around 70% of all incidents have no root cause fix documented The average elapsed time documented to fix an incident is 46 man hours A Hardware incident which requires an engineer visit is documented at 33 hours to fix 25% of records do not have any details on action taken 46% of Incidents are recurring issues We produce 100’s of reports that do not help us operationally 18% of calls to the Retail Help Desk are for repeat issues 37% of all Store incidents are resolved outside of the service level 35% of calls to the Retail Help Desk are abandoned before getting through to an agent Architecture World ‘11

6. SOM for Sustainable Change The Objective of the Service Operating Model programme is to : Change focus from Technology Silo Management to an End to End Service Oriented Management Transform our ways of working to be process driven with a focus on continual Improvement Provide each individual in IT with clear objectives of their role in the process Implement a tool set that enables the service desk and support staff to effectively manage incidents and proactively work towards improving services. Establish Transparency in IT Service Delivery Quality and develop ability to demonstrate how IT contributes to the business

7. SOM Project Overview The objectives of the programme are to update and consistently alignour people, process and tools in order to deliver a step-changed IT service to the business. The programme will : Deliver an integrated suite of service management processes and land consistently across IT Deliver a best of breed tool which will give us the agility to respondto changing business needs, whilst maintaining control in order to make IT Work Every Day Update our individual, team and organisational objectives to ensure they are focussed on delivering great service every day Enable us to continually improve IT services through systematic improvement projects based on Data Analysis

8. ISO 20000: 05 International Standard for ITSM Process Oriented Approach to culture Change The Change Slope ITSM Process & Tools A Foundation Systematic Capability Improvement ITSM The SOM Project to establish a baseline Improving Capability Maturity (COBIT) ITIL V 3.0 Best Practice Guidelines for establishing ITSM Stability in a Changing World Changing Business Environment

9. Balancing Act –Tactical v/s Strategic Pilot Release of BPM engine based Tool to replace existing Service Desk Architecture World ‘11

11. Use the Purpose Built Data Mining tool and conduct an Incident Profiling of the Service

12. Extract Sample data of Top 3 Incident Generators, conduct Audit and Identify Improvement Opportunities

13. Operate Problem Process for Quick Wins

14. Re-Work Classifications, Closure Code and roles and Responsibilities for L1,L2&L3

16. Pilot the Wizard for Incident Capture with ITHD supporting UK HO

17. Scale Up the implementation by structured Addition of Infrastructure, and other business areas

18. Managed phased de-commission of Service Center using the Parking Lot concept

19. Roll Over entire Retail to ICCM

20. Progress to Group Countries; start with CENov 2010 – CE Sep 2009 – Retail Aug 2010 – Supply Chain July 2010 – HO Apps & Bank Feb 2010 – Infrastructure Nov 2009 – Pilot ITHD & DSS Aug 2009 – ICCM Purchased Mar 2009 – Study Commenced

21. Project Phasing Jan July May Mar Phase 2 Phase 1 Phase 3 Phase 4 Functional and Process Releases

22. Service Desk Related Lessons Tickets Posted during the first week Data collected from 6 agents has been used, out of a total of 16 agents Data was collected between the 16th and the 23rd of November 09 Blank selections have been excluded A total of 172 incident folders have been used in the study 17 of the Incidents do not have data on Classification Steps have been taken to improve data collection and the results will be reviewed after a period.

23. Analyst wise tickets logged till 24th Nov 09

24. The Handshake Process The handshake process is very effective in ensuring that ownership of a given ticket is always assigned to an individual or a triage of a support group., Tickets that cannot be resolved by the Offline group are re-assigned to the third level group Triage. The team lead along with an alternate team member have been assigned this triage role, The Team triage has the option of accepting the ticket, by assigning to self or other team member or to Reject the ticket with due explanation. Tickets rejected by Triages are returned to the Sending Queue Triage for further action. Once assigned the ticket is managed by the owner and resolution action is updated.

25. Lessons from the Pilot Data used for the analysis is all tickets between 16/11/2009 11:31:17 AM and 24/11/2009 5:55:42 PM

26. Typical Silo Weekly Report Clearly indicates very little opportunity for Improvement First Time Fix Statistics Ranges Between 85 and 87%

27. What is an Incident? If we fix it first time it is a Service Request if we pass it on it’s an Incident 1623 calls in the system between 16/11/2009 10:15:48 AM and 24/11/2009 6:04:17 PM

28. 18 Segregated FTR A very high percentage of the calls managed by the SD are to do with fulfilling Service Requests, Service Requests, Vendor Calls etc, have been segregated from Incident Reports

29. 19 FTF : Service Request post Segregation Resolved by L1 Vendor Resolved by L2

30. 20 FTR : Incident Request post Segregation for L1 FTR Revised First Time Resolved figures

31. Incident Generator Rank not visible Top Incident? Generators identified – How Do I and Password Reset.

32. 22 Segregation makes Incident generators Visible Looking at Segregated Incidents shows a complete different Picture, where “Desktop Software” becomes the Primary source of Incidents with “Issue With Your Equipment” following a close Second

33. 23 Drill down into Desktop Software. Drilling down from Desktop Software exposes Office Tools 2000 and Ms Outlook to be the top 2 Incident drivers

34. 24 Incident Classification Quality Issue 67% belongs to Generic Others and give no clue to the real problem

35. 25 Post Pilot Improvement of Classification Desktop Software is now the second highest source of Incidents. Is this an effect of better Segregation of Incident Reports and Service Requests? Data from 1 – 15th Feb Data from 8 – 11th Mar

36. 26 Dramatic Improvement in Others being selected!! Data from 8 – 11th Mar Dramatic Changes to the number of Incidents classified as Others completely changes the profile of Classification Data from 1 – 15th Feb

37. 27 Findings are based on 55% data Call Categorization Quality improvement Data from 8 – 11th Mar Data from 1 – 15th Feb 50% Reduction in Agent Error Agents who need further training

38. 28 Improvement provides Actionable Data

39. 29 Result of a Proactive Problem Management

40. 30 Impact on Password Reset SR Occurrence

41. 31 Impact on Authentication Incident Occurrence

42. 32 Impact on MS Outlook Incident Occurrence

43. ISO 20000: 05 International Standard for ITSM Process Oriented Approach to culture Change Incident Mgmt Pilot Problem Mgmt Incident Mgmt Full Change Mgmt Scaling the Pilot across the enterprise ITSM The Pilot Was the First Step Improving Capability Maturity (COBIT) ITIL V 3.0 Best Practice Guidelines for establishing ITSM Stability in a Changing World The Change Slope Changing Business Environment

44. Post organisation wide roll out for UK and Ireland Services to the Retail Business, a Formal HSC Wide Improvement Program was launched Building on the First Baseline With New Objectives Architecture World ‘11

45. ITSM Transformation HPD Briefing Mark Cripsey & Sukumar Daniel Date: 25th August 2010

47. Increased complexity in managing a “Follow the Sun” Service Delivery

48. Urgent need to ensure that End to End Service Management Framework is in place before the convergence initiative kicks in

49. A Sound ITSM Foundation will be invaluable for transitioning services from various countries into HSC.

50. With the roll out of ICCM well underway the tool is in place to provide organisation wide support.

51. Need to transform to proactive ITSM framework in place with continual improvement at the core of the DNA.To do this we will leverage on Tools, Processes, People and Partnerships.

52. 37 An Iterative Milestone Plan (Applying Kotter’s Framework) Consolidate gains and produce more change Create Vision for Change Director to Identify Key Message Why we need to Change what we need to Change What Happens if we don’t Change Anchor new approaches in the culture Generate short-term wins Conduct ITMT Publish Vision & Strategy Establish Urgency Establish Governance Get HPD Buy in for Director’s Vision Communicate Plan Finalise ITMT Message Identify 30% for phase 1 BAU Identify Key Groups Train and Mentor in CI Process ITMT 2 Empower employees for broad-based action Repeat for Balance 70% Groups Embed Training Program as Mandatory Induction Review CI Process Periodically Establish Internal Audit Process Operate Continual Improvement Process Publish Results Announce Award Scheme Training Programs Core Group for Balance Communicate the change Vision Identify & Train 30% Core Groups Develop a Vision and Strategy Four Step Process 1. Establish Transparency and Data Validity 2. Identify SIP 3. Run SIP 4. Publish Results ITMT 1 Identify Key Groups Create Core Group & Train in CI Process Create the guiding coalition Prepare ITMT Comm. Establish a sense of urgency HPD Briefing Planning

53. 38 ITSM Transformation – What will Change Service Transparency and management on an End to End basis instead of Technology Pillar focus. “Service Oriented Metrics” instead of Technology Pillar Performance “Boundary less behaviour” in managing services by all levels and groups involved “Elimination of Waste” through streamlining service flows High Rate of First time Fix with a “Reducing Incident Occurrence and Turn around time Trend” instead of a Flat or Increasing Trend. L1 Keeps fixing the same problem again and again Knowledge Library, Approved Work around and Call script capability used to improve TAT L3 teams will be engaged to Identify and eliminate the Underlying Causes to Reduce / Eliminate Incident Occurrence Proactive Problem Management (Continual Improvement) instead of Transaction Based Reaction Focus on systematic elimination Top 3 Incident Generators Management reviews based on Improvements instead of Post Mortem Focus on control and effectiveness of Changes

55. Review and Improve Classification and Closure Categorisation

56. Perform Quality Review and Create Policy for Implementation and Compliance Assessment

57. Re-Do configuration in ICCM

59. Identify Improvement Opportunities

60. Operate Problem Management Process

61. Implement Operational or System Changes

62. Operate Changed System

63. Verify Effectiveness of Improvement through reduction in incident trend or Turn Around Time

64. Identify Applicable Classifications for Knowledge Articles, Approved Work Around and Call Scripts and implement

65. Finalise Multilevel Service Oriented KPI Metrics and Apply

66. Establish Compliance Assessment39

67. The Virtual Team concept(Example 2) Shared Services Service Desks SDM SOM Tools Group Technical Support DSS Support Groups SDM Q Group Technical Support Service Quality Monitoring Group Application Support Groups SDM E Learning Training Program Development Learning & Development Training Program Management (CDM) Infrastructure Support Groups SDM Change is usually easier to achieve when those affected by the change are involved

68. Service Channel Name – Order & Distribute Stage 1 Report ITSM Transformation InitiativeITMT Briefing Prepared By: Chandrashekar Rukmangada and Sukumar Daniel Date: 7th Oct 2010

69. Lessons Learnt from the Transparency Phase Stock Control CR Service Channel Position 6 in Top 10 Retail – Incident Pareto for Period 6 & 7 (Aug 1st to 1st Oct 2010)

70. Weekly Incident occurrence Trend for Order & Distribute Note: The steep Starting Slope is caused by the Induction of ICCM Peak due to delay in bringing up the Mainframe after Outage

71. Break Up of Incidents by Services Provided P3 P4 P0 P5 P2

72. 92% Tickets Resolved by L1, SHD HSC Replenishment Ops

73. Resolution Closure Code Analysis 95% of tickets closed by L1 with Resolution code “SHD Resolved”

74. Next Steps Inferences Top 3 Generator of Incidents 25% from SBO Sign on related Issues 20% from Delivery Related Issues 10% from CR Count Related Issues 92% of Tickets resolved by L1 SHD HSC Replenishment Ops 95% of Closure Codes marked as “SHD Issue Resolved” Unable to Analyse closure action because of Above Planned Action Set up a Team of L1 & L3 to do a detailed audit of Tickets and Identify appropriate Closure Codes Update ICCM Configuration & Collect fresh Data Operate the Problem Process to Identify Root Cause Take Actions to eliminate Root Cause and Verify Effectiveness Time Lines will be as per 100 day plan stage II

75. Service Improvements Improvements achieved by Support Groups at Service Channel Level Architecture World ‘11

77. Batch delay on 30% days and 5% orders either were not auto-scheduled or were missed

79. Manual intervention needed to continue transport planning & operations

81. Business report generation

82. Event logging &Alerting

84. Single window scheduling board for all DC’s

85. More online screens for seamless operation

87. Archival Logic

88. Replaced Python Reports with SQL Reports

90. Only 5% is manual activity - improved team morale

91. No delays - auto reconciliation in place

92. No downtime - happy business

94. PFS Service Incident Generation Rank (P6 and P7) Multiple Entries in the Service Channel Level make it difficult to estimate the Correct Incident Generator Rank PFS Fore Court generated the 5th highest number of incidents (7865) PFS Till generated the 7th highest number of incidents (5611)

95. Resolution Ratio – HSC (L1, L2 & L3) To Vendor PFS Till PFS Forecourt

96. 90 % resolved by Gilbarco INC Rank 5,Fuel Pump (VendorSupported Service) L1 Only A Post office No Possibilities for Value Addition 100 % Closure Code = Others #1 Incident Generator = Pump Hardware 53% #2 Incident Generator = Pay at Pump 40% Working With Vendor to improve Closure Categorisation can enable Value Addition

97. INC Rank 7 (HSC Supported Service) – PFS Till Software 47% generated by Till Software

98. Top 3 Symptoms in PFS Till Software Improvement Opportunity for Reducing Calls Filling Stations

99. Resolved by groups in the End to End Service Map For every ‘One ticket’ resolved by L3, L1 resolves 7.5 tickets, Vendor resolves 3.5 Tickets and L2 resolves 1.25 tickets

100. Closure Codes not useful for analysis SHD Issue Unresolved !! Does this mean that tickets are being marked as resolved but in reality no resolution has been provided, what happens to these calls, do they become repeat calls? Do they generate new incidents when the stores calls back?

102. Re-Design of Incident and Service Request Services and relevant Classification and establishing Roles, Responsibilities and Authorities

103. Defining relevant closure code to facilitate Problem Management

104. Re-Casting the L3 Role for owning Problem Management

106. EA – What, How, Where, Who, When & Why Strategists theorizeabout how executives can own What the Architects Design and how engineerswillbuildthe solutions that allow techniciansto implementit so workerscan participatein using the systems that all of them thought about Source: Home page in www.zackmaninternational.com 62

107. ITSM an essential foundation for Enterprise Architecture ITSM Business Enterprise Owned by Shareholders and Operated by Business Executives and their Staff ICT ICT ICT Enterprise Architecture / Architect ICT ICT ICT CIO’s Office – Enterprise IT Service Provider 63

108. John Zachman’s – Enterprise Architecture, Periodic Table 64

109. ITSM Service Delivery Model Service Oriented Management Architecture Customer Side Enterprise Business Organisation Purchasing Distribution Finance Marketting Business Area Business Area Business Area Locations Locations Locations Locations The Service Desk – Single Point of Contact for IT users Supply Side CIO’s Organisation/s – IT Service Provider/s to the Enterprise Application Support Services Desktop Support Services L1 L1 Service Channel Service Channel App Srv App Srv App Srv Desk T o p E Ma I L L2 Of fAuto L2 App Supplier App Supplier App Supplier App Supplier L3 L3 Infra Supplier Infra Supplier Infra Supplier Infra Supplier Process support Process support Process support Process support Shared Network Infra Shared DC Infrastructure 65

110. Types of Service Channels IT Help Desk*– Help Desk providing SPOC for Personal Computer Services End User Desktop Application Service Channel * – Desktop / Laptop / communication devices Software; supporting Office Automation software suites such as Email, MS office, Citrix, etc. and Communication software for Black Berry etc., End User Infrastructure Service Channel * – Providing support to End User personal Computers and Peripherals (mainly consisting of Vendors) Business Application Software Service Channel * – Providing support to business users not directly involved with Stores Operations. External Customer Help Desk* – Help Desk Providing SPOC services to external customers Operations Software Service Channels * – Support technical and or Operations Management Software Services Stores Operations Hardware Service Channels* – Providing Stores related Infrastructure support such as Tills, Petrol Filling Stations, PC Scales etc., (Mainly Vendors) Shared Infrastructure Channel** – Providing support to shared infrastructure such as Unix Servers, Data Base Servers, Web Servers, WAN, LAN, etc. * Customer Facing ** Internal IT Facing 66

111. Aligning Business to IT Architecture World ‘11

112. Tesco Proprietary & Confidential What, How, When, Who, Where & Why DSS Vendors MS Server OS Fire Wall WAN Email Service End User Outlook Client & Local Mailbox LAN MS Outlook Server MS SQL Server Spam Filter Anti Virus & Mentoring Server Clusters & Shared Storage MS IIS Server Network Support Off Line SD On Line SD 24 Hour Ops. DSS Application Support Network Equipment Providers Hardware Vendors WAN Providers DSS Server Support Asset Manager SLA OLA OLA OLA AMC SPOC Business Service App Services Network Services Asset Management DC Infra Services UPC L1 & L2 Support L3 Support L3 Support L3 Support 3P Vendors 68

114. Identifies the Business Area within the Business Organisation

115. Identifies the IT Service Channel Owning the Service pertaining to the call

116. Identifies the Service Pertaining to the call

117. Identifies the Symptom that the Caller is experiencingPoint of Failure Component of Point of Failure Incident Resolution Data Capture

118. Tesco Proprietary & Confidential WT6 RT6 WT5 RT1 WT4 WT3 RT3 WT1 WT2 RT2 WT4= Wait time for 3rd Level Engineer to Reject or Re-Assign L3 RT3 = Resolution Time for 3rd level Engineer to Resolve L3 WT5 = Wait time First L3 Group Engineer to Re-Assign L3 WT6 = Next L3 Triage to Reject / Assign RT6 = Resolution time for Next L3 Engineer to Resolve L3 RT1 = Resolution time for FTR by Online Analyst L1 WT1 = Wait time before Assigning to Offline Triage L1 WT2 = Wait time before Offline Triage Assigns to Analyst L2 RT2 = Resolution time for Offline Analyst to Resolve L2 WT3= Wait time For Offline Analyst to Assign to 3rd Level L2 IM Lifecycle Milestones Resolve Start Group Engineer L3 Group Triage L3 Group Engineer L3 Contact Agent FTR L1 Group Triage L3 Offline Triage L2 Offline Analyst L2 Total Turn Around Time (TAT) <= SLA 70

119. Template for Gathering Globally Converged Service Inventory Architecture World ‘11 Technology Physics – Identified by the Symptoms Column along with the Resolution Framework Business Concepts Row – Identified by Service Channel (Supply Chain) Column. Scope Contexts Row – Identified by the IT organisation Column. System Logic Row – Identified by Country, Assignee Group, Priority

120. Instantiating the Inventory in the BPM Service Desk Tool Architecture World ‘11 Component Assemblies – Process Maps in BPM Service Desk Operations Classes – Incident Management and Problem Management Modules

121. Deliverable – Information Mining Capability Resolution Framework Classification Framework Select Business / Country View Service Channel Extract Sample Data for RCA Select Component View Actions Select Service Channel View Service IR Select Logical CI View Component Select Service View Symptoms Select Service or Symptom View Logical CI

122. Architecture World ‘11 Summary The concept of End To End Service Oriented ITSM Framework is well embedded into the fabric of the organization due to the inclusive methods used It took six months to design, communicate, collect, review, approve and implement the necessary changes to the Service Desk Tool and the Foundation Data. This includes Global Set of Classification and support Organisation structure for the converged world. Post the roll out, an organisational operational objective has been set for each Service Channel to operate the pre-defined Service Improvement Process and demonstrate 20% Incident reduction from the baseline year.

123. Thanks and Best of Luck Architecture World ‘11 With Best Compliments from ………..