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E2E Services First Automation PSD
E2E Services First Automation PSD
Ey Ly
Version 1.0
Nov 6, 2014
<Initiative/Project Name>
Document Control
Change Record
Date
Author
11/6/2014
Amy Fong
Version
1.0
Change Reference
Drafted PSD with content from program white paper
<Initiative/Project Name>
Contents
1. Executive Summary .......................................................................................................... 3
2. Document Intent ................................................................................................................ 9
3. Alignment With Business Value ....................................................................................... 9
3. Business Impact Data ..................................................................................................... 20
4a. SIPOC and Process Flows Current .......................................................................... 22
4b. SIPOC and Process Flows Proposed ....................................................................... 28
5. Business Rules and Policy Changes ............................................................................. 33
6. Key Assumptions, Dependencies and Recommended Phasing ................................. 33
7. Toolset Affected .............................................................................................................. 36
8. Supporting Data............................................................................................................... 36
Scope Approval List ............................................................................................................ 38
Approval from Sponsors, Process, Policy, Solution teams............................................. 39
ii
<Initiative/Project Name>
1. Executive Summary
The Service First (Sweeps) program consists of a legal agreement between Cisco
and customers that all equipment will be covered on their applicable service
contracts. The Add-To-Contract process has provided support to this program by
automating the process of discovering and adding to contract equipment that would
otherwise not be captured through manual processes. This has enabled more than
$1B of SmartNet equivalent service fee value added to Services First contracts
since the inception of the Sweeps Redesign effort in FY2012. In addition, greater
than $155M in additional service revenue (via services bookings) for Cisco, has
been realized during this period. While Add-To-Contract has provided a solution for
the initial phases of a Services First accounts lifecycle, there are other phases in
which automation is needed to facilitate a more efficient end-to-end account
management process.
These manually intensive processes are:
1. Internal and External Reporting
2. True-Up Process
3. Invoice Creation
4. Billing
Currently, internal and external account management reporting for Services First
accounts is limited to manual reports generated by the CPE team.
Consequently, customers find it difficult to obtain clarity on account activity. In
addition there is a lack of transparency regarding the scope of contractual
agreements, which has caused the development of unauthorized agreements.
CPE analysts find it difficult to manually compile true-up data and perform true-up
calculations due to the high volume of data that must be compiled and
manipulated. This manual intervention has led to discrepancies in the invoice
creation and billing processes, leading to a loss of revenue for Cisco Services.
An End-to-End automated solution will ensure future opportunities for growth are
not forfeited; customers are confident and knowledgeable in the way their
accounts are managed; non-fragmented account lifecycle management; and
creation of an architecture that is agile to changes in the Services First
environment.
VISION
<Initiative/Project Name>
STRATEGY
EXECUTION
Target the account types that make up the majority of the Services First pool.
Determine the priority of pricing model that should be used for standardization.
Leverage Ciscos Add-To-Contract Sweeps Automation to assist with the build out
of the E2E Automation.
Find opportunities to reduce the variability in account types so that automation
can be implemented.
Align E2E Automaton with other Cisco Ready initiatives through the development
of an integrative roadmap.
Automate time intensive processes to assist CPE and GSD team in day-to-day
account operations.
Facilitate Point of Sale attachment of service.
Provide MACD (Moves, Adds, Cancelations, and Deletes) capabilities to contract
management.
Provide flexible invoicing and billing.
Adhere to official contract agreements. Eliminate the use of unauthorized
agreements.
Produce source of truth external and internal reporting tool of account activities.
for
Cisco, Direct Customer, and Partner use.
Background
Services First (Sweeps) is a commercial arrangement implemented using a formal written
agreement. Sweeps agreements (new and renewal) are implemented via documented processes
using official Cisco legal templates.
These agreements have four main conditions:
They obligate Cisco to provide service on all equipment when requested, whether or not they
are actively covered by a service contract;
They obligate the customer (or partner) to purchase service on all equipment (no exclusions,
no exceptions);
They permit the customer (or partner) to pay periodically (e.g. quarterly) instead of each time
a quote for services is created. Periodic payments are also referred to as "true ups". Note:
All "true-up" accounts effectively imply "services first" and therefore are fundamentally
identical to Sweeps (services first) accounts;
<Initiative/Project Name>
Customers must purchase products directly from Cisco or a 1-Tier partner. Purchasing from
2-Tier partners or distributors is not permitted.
Although Cisco customers are obligated to purchase service on all equipment, on average only
60% of their equipment was covered based on service fee value. To assist Entitlement Services
in enforcing contract terms, the Add-to-Contract or Sweeps Self Service Visibility and Auto
Quoting/Conversion automation was developed through a tool called Sweeps Automation
Application. It is a tool that gives Cisco the ability to locate and auto-attach all customer
purchased equipment that has not been added to contract. It has two components, the Visibility
system that locates all equipment on a customers network and generates a report that can be
generated at any time against the defined legal scope and the Automated Quoting Service (AQS)
which is the backend web service to generate the Sweeps quotes and auto conversions.
Those quotes are subsequently gathered by a CPE analyst who compiles them into an Excel
spreadsheet during the course of the true-up cycle. The true-up cycle is defined as the time
period from when one periodic pay cycle closes to when another cycle begins. True-up cycles
can be monthly, quarterly or yearly. When a true-up cycle ends (i.e. quarterly-Jan-Mar) all
compiled Sweeps quotes are organized and inputted into an Excel spreadsheet where the
manual true-up calculation is performed. The true-up calculation is the amount owed by a
customer for the cycle that equipment is added to contract, resulting in the generation of an
invoice and billing of the customer. The CPE analyst notifies the customer of the True-up amount
for payment and requests a customer PO. The CPE analyst will notify the sales team of the trueup amount for forecasting and validation purposes. The CPE analyst creates and submits a
summary quote to the Quoting Team. Subsequently the Quoting team issues a summary quote
to the customer and requests a PO. The CPE analyst will submit the PO for manual order
booking request to GSD (Global Service Delivery) where the order is entered and booked in the
ERP (Enterprise Resource Planning System). GSD will perform standard booking validations
against the PO and invoice the customer for the True-up amount.
<Initiative/Project Name>
Under the current Services First program, there are four pricing models for Sweeps agreements.
Those models are:
1. Symphony/Services Full Coverage (SFC) (non-linear)
2. Pay As You Grow (linear)
3. Net Fixed Pricing with Growth Allowance
4. Net Fixed Pricing
Descriptions
<Initiative/Project Name>
2. Pay As You Grow (linear)
<Initiative/Project Name>
In Scope Summary
NOTE:
Process/System must support all 4 Full Coverage Models: (Based on biz priority)
Model 1) Factor with growth band (aka non linear) = Must be Transactional Ready as part of
Q1FY16
Model 2) Pay as you grow (linear) = Must be Transactional Ready as part of Q1FY16
Model 3) Net fixed with growth = Foundation only. Transactional Readiness will be Q3FY16
HLS ID
HLS-001
HLS-002
HLS-003
HLS-004
HLS-005
HLS-006
HLS-007
<Initiative/Project Name>
2. Document Intent
The document is intended primarily as a vehicle for communication between the Stakeholders, the
business and technical community.
This document outlays the project scope and requirements for the Services First End to End
Automation Initiative. In regards to process, the focus of this document will be around current as-is
processes and problems defined by the white paper. Any new requirements will follow the program
prioritization process to be addressed in the future releases/phases.
Initiative Alignment
<Initiative/Project Name>
10
<Initiative/Project Name>
11
<Initiative/Project Name>
b. Model 2) Pay as you grow (linear) = Must be Transactional Ready as part
of Q1FY16
c. Model 3) Net fixed with growth = Foundation only. Transactional
Readiness will be Q3FY16
d. Model 4) Net fixed = Foundation only. Transactional Readiness will be
Q3FY16
No.
Scope Item
Ability to identify all 4 types on MDM
(aka SFDC quoting)
HLS001
HLS002
12
<Initiative/Project Name>
dashboard and reporting
13
<Initiative/Project Name>
Price bands
If I continue at X% pace (growth rate)/ if I buy
as per schedule,
What will my IB be at the year end
What will my price band be for next year
What will my price be the next year to
cover the IB? (TS price?)
7. Profile Set up
14
<Initiative/Project Name>
Net growth
Remaining growth allowance (IB $)
Excess growth
Estimated true up
Total spend history in recent years
15
<Initiative/Project Name>
download.
10. Dashboard Technical controls
Dashboard performance and security must
meet or exceed the platform standards.
Security must meet or exceed CSCCs
access control
Dashboard availability and operation
support model must meet or exceed
CSCCs access control
Performance: Data query and display
should not exceed 5 seconds
11. User Interface:
The user interface should provide a
consistent and friendly user experience
The user should experience:
i. A simple interface
ii. An interface that does not require
many clicks to view the relevant
data.
12. Foundation flexibility/scalability to support:
Phase 3 (Targeted Q3Fy16 release)
Scopes: Ability to auto add the service at
the time of product sale (M1- M4). Product
commerce shall leverage defined enterprise
single source of truth location. As of
11/7/14, it should be Cisco Commerce
Workspace (CCW).
HLS003
16
<Initiative/Project Name>
HLS004
HLS005
17
<Initiative/Project Name>
should be C3.
5. Update status need to be reflected correctly on the
dashboard and reporting
6. Foundation flexibility/scalability to support:
a. Phase 3 (Targeted Q3Fy16 release)
Scopes: Ability to auto add the service at
the time of product sale (M1- M4). Product
commerce shall leverage defined enterprise
single source of truth location. As of
11/7/14, it should be Cisco Commerce
Workspace (CCW).
7.
HLS006
18
<Initiative/Project Name>
HLS007
The requirements included in this document will support Services First- End to End Automation.
If the initial objectives cannot be met in a single release phase due to resource, budget or time
to market constraints a phased approach is recommended.
19
<Initiative/Project Name>
Build an Enhancement
Performance Improvement
Ongoing Maintenance
Other:
Loss of Revenue
How much?
Delay of Revenue
How much?
How long?
Impact Data
Type of
Number of Transactions
20
<Initiative/Project Name>
Transactions
Affected
Quotes
Contracts
Invoices
POs
SOs
Credits
Number of
Support
Cases (per
year)
Cost of
Support (per
year) ($25.67
per case)
Average
Cycle time
per case
(days)
Support
Contact who
provided data
Entitlement
Operation
GTMSS
N/A
BSOS
21
<Initiative/Project Name>
As Is # of
Process
Steps
Manual
Process Name
Check for NBD
Service Level
To Be # of
Process
Steps
2
Time saved
per
process
cycle
10 minutes
# of
cycles per
day
10
Internals:
Operations
Quoting
Team
Others
Externals:
Partners
Customers
Impacted Users
External
Theatre
APAC
EMEAR
Japan
Latin
America
US /
Canada
Partner Size
(parameters?)
Channel
1 Tier
2 Tier = N/A
Direct
Internals
Departments Impacted
Operations
Access Management
Finance
Service Marketing
Data Services
Cisco Policy
Small
Medium
Specific
Service
Program(s)
Partner
Names
Full Coverge
Large
Tax
Sales
BSOS
GTMSS
Other:
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<Initiative/Project Name>
CUSTOMER
Purchase
Cisco Equipment
Start
CSx/CPE
Track customer additions
that are not shipped.
Create list of all shipped
and unshipped
equipment.
CSx/CPE
CSx/CPE
CSx/CPE
CPE GSD
CPE GSD
CPE GSD
CSx/CPE
CSx/CPE
Tracks consumption on
monthly basis
End
SIPOC
L2 - Services First / Sweeps Full Coverage E2E Process (not via Sweeps ATC)
L3 Author:
Date Created:
11/11/2014
Preconditions:
Postconditions:
Suppliers
Customer,CSx
, CPE
Input
s/Req
ts
Process
Outputs/
Reqts
Custo
mer(s)
Approved Deal
Services
Full
Coverage
(SFC)
Accounts is
approved
and setup
process
started
Services
Full
Coverage
(SFC)
Customer
23
<Initiative/Project Name>
24
<Initiative/Project Name>
25
<Initiative/Project Name>
26
<Initiative/Project Name>
27
<Initiative/Project Name>
28
<Initiative/Project Name>
SIPOC
SIPOC explanation & examples can be found here:
http://wwwin.cisco.com/process/enterprise/tools/sipoc_diagram.shtml
SIPOC
L2 - Services First / Sweeps Full Coverage E2E Process (not via Sweeps ATC)
L3 Author:
Date Created:
Preconditions:
Postconditions:
Suppliers
Input Process
s/Re
qts
Customer,CSx
, CPE
Approved Deal
11/11/2014
Outputs/R
eqts
Custo
mer(s)
Services Full
Coverage
(SFC)
Accounts is
approved and
setup
process
started
Services
Full
Coverage
(SFC)
Customer
29
<Initiative/Project Name>
Finance on final VAP
Sales, Legal, Revenue Accounting,
Commercial Sales, Finance and Service
Entitlement approves final VAP
30
<Initiative/Project Name>
31
<Initiative/Project Name>
32
<Initiative/Project Name>
Scope Item
<Scope item summary>
Type of
Change
(New/Update
existing)
Update
Existing
Impacted Areas
<Sales, Finance,
etc.>
Description of Assumption
Funding
Enable external
dashboard for internal
and external users to
view Services First
details
Program Assumptions
HLS-001
HLS-002
Ability to identify
Services First Full
Coverage Customers
Ability to identify all 4
types on MDM (aka
SFDC quoting) Note:
This scope was
33
<Initiative/Project Name>
HLS-003
descoped from
Symphony Q4FY15
release.
Ability to identify MACD
Proactive from IB and
reactive request from
customer* (M1-2)***
HLS-004
HLS-005
HLS-006
HLS-007
HLS-008
Risks
Risk Area
Probability
Impact
Owner
Mitigation Plan
Program
Mgr and
track
leads
Program
Mgr
Key Dependencies
34
<Initiative/Project Name>
Scope Item
HLS-001
HLS-002
HLS-003
Ability to identify
Services First Full
Coverage Customers
Ability to identify all 4
types on MDM (aka
SFDC quoting) Note:
This scope was
descoped from
Symphony Q4FY15
release.
Ability to identify MACD
Proactive from IB and
reactive request from
customer* (M1-2)***
Description of Dependency
HLS-004
HLS-005
HLS-006
HLS-007
Recommended Phasing
35
<Initiative/Project Name>
7. Toolset Affected
CSCC
Q&O
SB2B
CCW
MMAT
POM/SOM
CSCC OCM
Other:
8. Supporting Data
Quote
Numbers
Contract
Numbers
Defect
Numbers
NA
INC Numbers
36
<Initiative/Project Name>
Issue SME
37
<Initiative/Project Name>
Individual Name(s)
Approval Status
38
<Initiative/Project Name>
Name
Role
Title
Services
Compliance and
Coverage
Services
Compliance and
Coverage
Entitlement
Operations and
Data Innovation
Entitlement
Operations and
Data Innovation
Entitlement
Operations and
Data Innovation
Service
Commerce
Operations
TS Field
Operations US
Hanns
Westphal
Services First
Initiative Lead
Manager,
Service Ops
Andy
Hencke
Dave Frutos
Stakeholder
Steve
Noren
Dana
Johnson
Services First
Program Mgr
Angelina
Koh
SCO Management
Bruce
Johnson
Symphony Lead
Services Finance
Alison West
Services Policy
Sylvia
Aleman
Customer &
Partner
Experience
Customer &
Partner
Experience
Mark Ebner
Business
Manager,
Commercial
Director,
Technical
Services
Business
Operations
Manager
Program Mgr,
White Paper
author
Manager,
Management
Operations
Business
Development
Manager
Finance
Controller
Jigna Shah
Comment
Business
Operations
Manager
Managers,
Mgmt
Operations
Managers,
Mgmt
Operations
Glossary
39
<Initiative/Project Name>
quote and auto conversions.
Attach Rate (Sales View) - Coverage rate only for equipment shipped during this
fiscal year.
Cisco Ease of Doing Business (EoDB) A program that represents teams across
Cisco which are focused on making it easier for customers and partners to do
business with Cisco. The program targets improvements in policies, processes, and
operations to simplify our customers' and partners' interactions with us and to ensure
we deliver a single, personalized customer and partner experience end-to-end.
Cisco Ready An intelligent business readiness solution to grow revenue with
easy-access to reliable and actionable customer insights.
Cisco Asset Management MVP Service for Cisco direct customers (enterprise
and service provider customers) and is aimed at keeping customers Cisco hardware
and software inventories up-to-date and ready to use through all lifecycles at all
times.
Coverage Rate - Percentage of equipment covered under Sweeps service
contract(s). The equation is: Covered / (Covered +Uncovered) = Coverage Rate
Covered Amount - The annualized SmartNet next business day list price of all
covered equipment identified by the visibility application.
Enterprise Resource Planning System (ERP) The system used to generate
GSD bookings.
Factor-Based Pricing Non-linear pricing proportion as it grows allowing Cisco to
pass on cost efficiencies to customers as the installed base grows.
Flexible Invoicing/Billing The ability to provide varied options (e.g., monthlyquarterly-yearly) for customer to pay seller for invoice/bill amount as set forth in
terms and conditions of contract and customer preferences set-up.
Growth Triggers Threshold above which new services fees could apply. Account
teams remain responsible for monitoring this and generating requests for payment
as appropriate.
Installed Base Data Quality Initiative that seeks to provide a unified approach to
business process and rules management that deliver data integrity. It is the source
of data quality governance and enforcement for installed based data.
MACD The process of moving, adding, changing, and deleting equipment in the
installed base.
Master Services Agreement (MSA) - All inclusive legal agreement between Cisco
and the customer.
Net-Fixed Pricing The price for services may be pre-determined and fixed for
some period of time, typically one to three years. The price of service does not
change regardless of a size increase or decrease in the installed base.
Net Fixed Pricing with Growth Allowance A pricing agreement for the price of
services that is pre-determined and fixed up to a specific size of the installed base
for some period of time. The pricing for service is triggered only when the size of the
installed base exceeds a pre-defined and agreed upon amount.
40
<Initiative/Project Name>
Non-Linear Pricing Unique technical support model providing non-linear pricing
for customers as their install based grows over time.
Pay As You Grow Pricing Pricing agreement where the amount of payment
increases as the installed base increases.
Point of Sale Attach The process of starting service coverage for equipment at
the time it is sold to a customer instead of when it is added to a Services First
contract.
Policy/Legal Compliance - This yes/no value indicates whether or not the existing
Sweeps addendum complies with Sweeps policy.
Price Band A concept which encourages growth and provides incentives to move
to higher "bands" in order to save money on TS as your IB grows. They are unique
and negotiable for each customer based on factors such as IB size, anticipated
growth, etc.
Services First Sweeps - Services First (Sweeps) is a commercial arrangement
implemented using a formal written agreement. Sweeps agreements (new and
renewal) are implemented via documented processes using official Cisco legal
templates.
SmartNet A service solution that facilitates the rapid resolution of critical network
issues and improve operational efficiency through a combination of expert technical
support, flexible hardware coverage, and smart, personalized capabilities. It goes
beyond simple warranty replacement policy to resolve an issue as quickly as
possible before it can affect the business.
Sweeps Automation Application The tool that gives Cisco the ability to locate
and auto-attach all customer purchased equipment that has not been added to
contract. It has two components, the Visibility system that locates all equipment on a
customers network and generates a report that can be generated at any time
against the defined legal scope and the Auto Quoting System which is a backend
web service to generate the Sweeps quote and auto conversions.
Services Full Coverage (SFC) or Symphony - A unique pricing and support model
that provides non-linear Technical Support (TS) pricing for customers as their
installed base (IB) grows over time. It is an Enterprise Services Agreement (ESA).
Time Value of Money The idea that money available at the present time is worth
more than the same amount in the future due to its potential earning capacity.
True-Up Monthly, quarterly, or fixed-fee payments that receive periodic
adjustments to reflect all equipment.
True-Up Cycle The monthly, quarterly or yearly cycle of payment for the true-up
amount.
Uncovered Amount - The annualized SmartNet next business day list price of all
uncovered equipment as identified by the visibility application.
Visibility System A system that generates reporting which provides an in-depth
view of all equipment specific to a customer account.
41