Application

Management &
Modernization.
Elaine Campos
T-Systems do Brasil
Service Delivery Unit SAP
March 11th, 2010
 Agenda

1. Executive Summary
2. About T-Systems
3. Application Management & Modernization Strategy
4. Application Management Methodology and Tools
5. Benefits and References

© SAP 2008 / Page 2 © SAP 2010 / Page 2

 Agenda

1. Executive Summary
2. About T-Systems
3. Application Management & Modernization Strategy
4. Application Management Methodology and Tools
5. Benefits and References

© SAP 2008 / Page 3 © SAP 2010 / Page 3

 Key Messages for Application
Management & Modernization

 We offer an end-to-end solution, closing

the gap between IT operations and
business processes
 T-Systems has in-depth experience,
based on 4000 customer projects
 We offer full visibility into service
delivery and set high quality standards
 On average, we achieve savings of over
25 percent – and accelerate processes
at the same time

… let’s look at what we can do

for you?

© SAP 2010 / Page 4

 Application
Management
& Modernization.

© SAP 2010 / Page 5

 CIOs’ situation today.
Pain points.

IT cost efficiency Business process efficiency Risk and complexity

 Constant and increasing pressure on
IT spending
 The economic crisis has prompted
calls for further IT savings –
translating into budget cuts and
freezes
 IT departments are expected to
contribute directly to better business
process performance
 Process owners expect IT to reduce
exposure to business risk and meet
GRC requirements
 Complex legacy IT environments;
lack of transparency, services are
hard to manage and optimize
 Multiple vendors mean high
coordination effort; governance ties
up in-house staff

Flexibility and agility
 Volatile markets and accelerated
product lifecycles necessitate rapid
changes to business models
 M&As, global expansion and
organizational changes call for
responsiveness and agility
Innovation and
modernization
 CIOs are expected to deliver
innovation and business value, but
staff are occupied with routine tasks
 Backlog of legacy modernization –
Budget restrictions mean no money
available to modernize the
application landscape

© SAP 2010 / Page 6

 Application Management & Modernization.
T-Systems’ answers.
Challenges

Business process Risks and Flexibility and Innovation and

IT cost efficiency agility modernization
efficiency complexity

Right quality/cost Global delivery New process and Flexible response Innovation and
Key Levers

balance approach that organizational to customer’s transformation

reflects structure for business needs approach
customer’s industrialized
organization services

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What does T-Systems do?
End-to End ICT Services.

© SAP 2010 / Page 8

 Agenda

1. Executive Summary
2. About T-Systems
3. Application Management & Modernization Strategy
4. Application Management Methodology and Tools
5. Benefits and References

© SAP 2008 / Page 9 © SAP 2010 / Page 9

 T-Systems - A Member of the
Deutsche Telekom Group

 Revenue: € 67,0 billion

 Employees: around 260.000

 Present in 50 countries

Consumer (B2C) Business (B2B)

Broadband/ Fix Networks Wireless Communication Business Customer

One of the biggest ICT groups in the world.

© SAP 2010 / Page 10

 T-Systems.
Facts & Figures

Corporative Solution from Deutsche Telekom

T-Systems leader of ICT in Europe

 Revenue 2008: around €9.3 billion

 Employees: around 46,000
 Portfolio: TC Services, Computing Services, Desktop Services, Systems
Integration, Integrated Solutions in ICT
 International
Presence: Subsidiaries in 22 countries, Worldwide Delivery
 Market Share: 1st in IT Services in Germany, 4th in Europe

© SAP 2010 / Page 11

 In 20 countries with SAP outsourcing and
SAP consulting business
Netherlands Germany Europe: 1,519,514
Belgium Czech Republic
USA
China
GB Slovakia

France Hungary

Spain Austria

Switzerland
Italy

Americas: 36,169 Japan

Singapore
Mexico
Asia/Pacific: 14,427

Africa: 35,279
Brazil

South Africa Total: 1.605.389 User *)

*) Shared Service Installation

© SAP 2010 / Page 12

 T-Systems do Brasil
An important part of Global Coverage

The Company
 Foundation: 1982
 Headquarter in São Paulo
 11 branch offices in 9 Brazilian cities
 Employees: 2.155 (Dec/2008)
 Net revenue 2008: R$ 316 million (about € 108 million)

Markets
 Manufacturing/ Automotive
Juiz de Fora - MG  Finance
 Services
Rio de Janeiro
 Retail
S.B.Campo – SP (3) Campinas -SP
Barueri - SP Focus Solution
São Paulo
S.José dos Pinhais - PR  Systems Development and Integration
Blumenau - SC  ICT Infrastructure

branches
Porto Alegre - RS  Specific solutions for Automotive and Manufacturing

© SAP 2010 / Page 13

 T-Systems & SAP
Long-standing partners.
T-Systems is SAP Global Service Partner. The highest level of SAP consulting partnerships.
Current status Certificates
 SAP Hosting Partner (*)
Textbox
 Headline
SAP Application Management Services Partner (*)
 SAP services partner in 16 countries
 SAP channel partner in 12 countries
 Member of Enterprise Services Community
 Winner of the SAP Pinnacle Award in the
Outsourcing Hosting category
 ISO 9001:2000 – Quality Assurance
 CMMI Level 3 – Software Factory
 ISO/IEC 20.000: 2005 (ITIL) – Company Process
Certification - Excellence in Service Management
 Global Run SAP certification (**)

(*) Global and Local (**) on going

© SAP 2010 / Page 14
 Agenda

1. Executive Summary
2. About T-Systems
3. Application Management & Modernization Strategy
4. Application Management Methodology and Tools
5. Benefits and References

© SAP 2008 / Page 15 © SAP 2010 / Page 15

 T-Systems Dynamic SAP Services

SAP Application
Management
Services
SAP Dynamic
Integration Services
Application for SAP
SAP Management
Implementation
Infrastructure
& Upgrades
Operations
Profile for
Our Global Improved
About Financial Cost Control
Capabilities Case
T-Systems & ROI
Study

Transformational Outsourcing – Our Strategy & Vision

16
© SAP 2010 / Page 16
 How it works.

Business B
Implementation of standardized
processes for generic functions
plus highly innovative processes for
functions that create competitive
differentiation Processes

Applications
Service ICT
Migration to an all- Move to a standardized
embracing service integrated technology
approach that supports platform with a
multi-supplier, multi- considerably reduced
national operating models Infrastructure technology footprint

S I

© SAP 2010 / Page 17

 How it works. Let‘s flip forward and
industrialize.

Business B
 Leverage shared
business service centers

Processes
ICT
Service  Reengineer
applications
 Standardize service to increase efficiency
management Applications  Lift and shift apps to
processes cheaper commodity
 Renegotiate, reallocate platforms
or insource contracts  Technology refresh of
 Use global delivery hardware to increase
model performance
Infrastructure
S I

© SAP 2010 / Page 18

 How it works. Let‘s flip forward and
consolidate.

Business B
 Replace legacy or standardize highly
customized processes
 Harmonize process variants

Service Processes
ICT
 Increase service  Interface reduction by
management process SOA integration
maturity to optimize
 Consolidate middleware
productivity
and development platforms
 Restructure service Applications  Consolidate hardware
delivery organization
to optimize utilization  Virtualize infrastructure
 Reduce service  Centralize servers, con-
support by ICT solidate data centers and
consolidation increase energy efficiency
Infrastructure
S I

© SAP 2010 / Page 19

 How it works. Let‘s flip forward and
transform.

Business B
 Innovate by
- mobilizing the enterprise
- increasing collaboration
- specializing core processes
Processes
 Standardize further by
net-centric applications

Service ICT
 Introduce integrated Applications
processes across all services  Lever SOA architecture
providers to safeguard end-  Modernize proprietary
to-end SLAs software to new
 Build SOA based architecture
service management  Lift and shift apps to
architecture net-centric infrastructure
Infrastructure
S I

© SAP 2010 / Page 20

 Let’s get started.
Savings are possible!

Consolidation and clustering 10%

Standardization and central

15%
governance
Consistent knowledge
3%
management
Focus on selected suppliers 10%

Right-shoring 20%

>50%

… what can we do for

you?

© SAP 2010 / Page 21

 Agenda

1. Executive Summary
2. About T-Systems
3. Application Management & Modernization Strategy
4. Application Management Methodology and Tools
5. Benefits and References

© SAP 2008 / Page 22 © SAP 2010 / Page 22

Application Management Service
Stable applications

Application Management Services

Key-points :
 Proven and standardized methodology -
AMbition
 Operation based on ITIL foundation
 Professionals trained & experienced
 Process control through KPI and reports

 Detailed information on every level of

business application
 High quality services measured by service
level agreements

© SAP 2010 / Page 23

 AMS AMbition ©
based on ITIL concepts

Service Design
Service Catalog Management
Service Level Management IT Service Continuity Management
Capacity Management Information Security Management
Availability Management Supplier Management

Service Transition Service Operation

Transition Planning & Support Event Management
Change Management Incident Management
Service Asset & Configuration Management Request Fulfillment
Release & Deployment Management Problem Management
Service Validation & Testing Access Management
Evaluation
Knowledge Management

Service Strategy Continual Service Improvement

Strategy Generation 7-Step Improvement Process
Financial Management Service Measurement
Service Portfolio Management Service Reporting
Demand Management

© SAP 2010 / Page 24

 Our best practice approach with
AMS AMbition ©

The Application Management Services roadmap: no better way to better performance.

 Proposal for  Planning for Handover of Transfer with full

design/planning transition and operational responsibility for
phase ongoing operations responsibility SLA compliance
 Price information for  Proposal for ongoing
ongoing operations operations
 Process and cost
optimization

Ongoing operations
Application Management
Services and Modernization
Quick AMS design Transition per Pilot
Scan per AMbition Ambition® phase based on S.i.E./ITIL

startup 2 weeks 6 - 8 weeks 8 – 12 weeks 12 – 16 weeks

(AMbition© is a registered T-Systems trademark)

© SAP 2010 / Page 25

 AMbition ©
Quick Scan phase.

 Collection of quantifiable service requirements (users, sites,

AMS quality modules, systems, support hours, …)
check  Collection of current processes
 Evaluation of current services (optional)

 Definition of a rough service model including service processes, role

Rough service
distribution and service levels
description
 Table showing relevant AMS reporting parameters

Rough  Structural delivery model concept

delivery  Rough concept of the service team resources
concept  Identifying optimization potential

Price  "SAP AMS services at T-Systems" price information

information

© SAP 2010 / Page 26

 AMbition ©
Design & Operations phase.

CMO / FMO

Current Mode of Operation Reengineering Future Mode of Operation

 Keeping and
Positive and wish
 Evolution
characteristics

 Adapt
Inconsistent and  Changing
unwished
 Recreate
characteristics

Due Diligence Process New HW/SW/Process

Current Indicators Analyses Prior – SLA’s Final SLA’s

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 AMbition © Availability, Capacity and
Service Continuity Management
T-Systems Infrastructure is Highly Available

Based on that, T-Systems Tools (like business monitoring and Service Desk) are always available.

The Human Capitals are spreaded among the company

Through Knowledge Base tools

Via Internal Trainings Initiatives

Having people connected to the same Service Model and tools

Business Continuity COSIMA: Monitoring and

Operations Database High Available SLA Reporting
available at the Intranet Service Center Tool (KPIs)
(Emergency plans)

© SAP 2010 / Page 28

 AMbition ©
Transition phase.

Transition Phase

Preparation Concept Design / Test phase / Pilot phase / Steady State /

& Planning Knowledge transfer Shadow & Share Lead Controlled operation

 Environment  Prepare Knowledge  Implement Service  Go-Live service  SLAs entirely

Assessment Transfer Model without penalties / integrated
 Define service bonus
 Define Transition  Execute Knowledge  Monitoring and
Streams model Transfer  SLA reporting reporting
 Final requirements /  Establish processes
Activities

 Service Manual  Final Knowledge  Identify proactive

Transition Plan and communication Assessment improvements
 System check
 Prepare  Approval for Test  Review and final  Fixing rollout
Phase
 Documentation /
organization cut-over schedule
Play back session

 Resource Plan  Service Model  Service Manual  SLA work  SLA Report
 Transition Plan  Documentation  Documentation and  SLA report  Optimization items
Results

tracker Environment
 Review and  Rollout schedule
 Structure Service approval
Manual

© SAP 2010 / Page 29

 AMbition © Transition phase.
Monitoring & Quality Check

Quality Gate Quality Gate Quality Gate Quality Gate

Transition Phase

Preparation Concept Design / Test phase / Pilot phase / Steady State /

& Planning Knowledge transfer Shadow & Share Lead Controlled operation

Preparation Concept Design / Test phase / Pilot phase / Steady State /

 Environment  Prepare Knowledge  Implement Service  Go-Live service and  SLAs entirely
Assessment Transfer Model project team, without integrated
 Define service penalties / bonus
 Define Transition  Execute Knowledge  Monitoring and
Plan and final model Transfer including  SLA reporting reporting
requirements assessment
Activities

 Establish processes  Final Knowledge  Identify proactive

 Define Transition and communication  Service Manual Assessment improvements
Streams
 Approval for Test  Execute  Review and final  Fixing rollout

& Planning Knowledge transfer Shadow & Share Lead Controlled Op

 Prepare Phase documentation and cut-over schedule
organization system check

 Resource Plan  Service Model  KT Schedule  SLA work  SLA Report

 SLA report
Results

 Transition Plan  Documentation  Service Manual  Optimization items

tracker
 Status of  Review and  Rollout schedule
 Structure Service documentation and approval
Manual system

Monitoring
of captured
knowledge
artefacts
Steady
State

Aggregated
KT progress

Planning Ready for Ready Ready

Shadow & Share for pilot phase for Service

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AMbition ©
Live Operation phase.

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 Application Management Services
Operational flow.

End Users

TROUBLE TICKET

Service Desk

Support Team
Systems

© SAP 2010 / Page 32

 Application Management Services
Governance Relationship Model

Customer Business Service Delivery

Management Management
Top
Mgmt.
Request
Customer optimization
Optimization IT
through the
through services Management
Board delivery service
components based on cost-
controlling. effective solutions.
Steering
Committee

Contract Controlling Service Board Centralized

(day by day communication)
and Management Cost Control
shared responsibility for the results

© SAP 2010 / Page 33

 Application Management Services.
SLA.

Service Level
Evaluation Agreement Classification

User satisfaction & Reports

Issues per level of priority

Definition
Applicability

Issues types & SLA coverage Response time Solution time

© SAP 2010 / Page 34

 Application Management Services
Service Catalogue.
Service Catalogue – Detailed description of service operation

© SAP 2010 / Page 35

 Application Management Services
Quality Management System.

T-Systems Quality Management System (QMS) is backed by the vision, mission and values of the SI organization,
driven by strategy and processes;

T-Systems ’s QMS has a concrete foundation in various T-Systems Process Models like:
 Project Management (PM) Book;
 Software Engineering (SE) Book;
 Service Management (SM) Book;
 AMbition©;
 Sales Book; and
 Q-Gate checks.

© SAP 2010 / Page 36

Application Management Service
SAP Services Support

SAP Going-Live Check

SAP Upgrade Services

SAP EarlyWatch Check

SAP Solution Manager Starter Pack

Run SAP

© SAP 2010 / Page 37

 Application Management Service
SAP Services Support

SAP GoingLive Check helps you manage technical risk to ensure the optimal performance, availability,
and maintainability of your SAP solution.

SAP Upgrade Services

SAP EarlyWatch Check

SAP Solution Manager Starter Pack

Run SAP

© SAP 2010 / Page 38

 Application Management Service
SAP Services Support

SAP Going-Live Check

The Upgrade Services help to ensure quality, safety and effectiveness of the upgraded landscape
and certify the customer that the best upgrade strategy is in place.

SAP EarlyWatch Check

SAP Solution Manager Starter Pack

Run SAP

© SAP 2010 / Page 39

 Application Management Service
SAP Services Support

SAP Going-Live Check

SAP Upgrade Services

Depending on the customer needs and on the established SLA, T-Systems makes use of the EarlyWatch
Check for its customer on defined period in order to eliminate performance bottlenecks and to get
response time improvements

SAP Solution Manager Starter Pack

Run SAP

© SAP 2010 / Page 40

 Application Management Service
SAP Services Support

SAP Going-Live Check

SAP Upgrade Services

SAP EarlyWatch Check

As part of the T-Systems International Global Strategy, T-Systems aims the Solution Manager utilization
for SAP implementation, Service Desk requests, Monitoring the system performance, Integrating the
whole SAP Landscape

Run SAP

© SAP 2010 / Page 41

 Application Management Service
SAP Services Support

SAP Going-Live Check

SAP Upgrade Services

SAP EarlyWatch Check

SAP Solution Manager Starter Pack

The Run SAP methodology enables you to optimize the implementation and ongoing management of
end-to-end solution operations. The focus is on application management, business process operations,
and administration of the SAP NetWeaver® technology platform

© SAP 2010 / Page 42

 Agenda

1. Executive Summary
2. About T-Systems
3. Application Management & Modernization Strategy
4. Application Management Methodology and Tools
5. Benefits and References

© SAP 2008 / Page 43 © SAP 2010 / Page 43

 Flexibility to support the increase of
business demand
From technical application to business process expertise.
From a small team of R/3 professionals to a substantial team of experts with a wide range of knowledge to run SAP landscapes.

SAP R/3 SAP Business Suite

Business

supplier company customer supplier company customer

FI CO HR SD CRM SRM BI APO

Application

FI CO HR SD

etc. etc.
etc. Processes

SAP R/3 Admins SAP Admins

Technique

7 x 24 x 52

© SAP 2010 / Page 44

 Oversized or dynamic?
The Dynamic Services approach.

To slow
3 Design to the peek
Resources

Conventional Solution 2 Actual demand

1 Unused
Resources! Scheduled Demand

Dynamic Services are in accordance with the actual demand!

Month

© SAP 2010 / Page 45

 Brazil References

Customers References
Textbox Headline

© SAP 2010 / Page 46

 Global References

Customers References
Textbox Headline

Infineon Technologies

© SAP 2010 / Page 47

 Thank you!

© SAP 2008 / Page 48 © SAP 2010 / Page 48