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
