Professional Documents
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Shared Service Model
Shared Service Model
Agenda
> Introduction
ESS Organization Update IT Strategy Communication
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2005 Objectives
> Shared Services IT:
Complete the implementation of the IT shared services operating model including organizational design, service levels, operating procedures and funding model (4Q). Realize approximately $750k in operating expense savings through application co-location and the elimination of redundant activities (4Q). (Scope: Finance/HR Trans Systems, Owner/Plan: Sheridan, Establish Engineering/Ops capability: Piscitello, Id/Effect Opportunities: Lotier/Blair) (stratmap intersection: OPEX/Internal Process)
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Value Proposition
Value Proposition
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2005 Plan
1Q05
Operating Model Savings Opportunities
2Q05
3Q05
4Q05
Consolidation
Finance
Restructure IT Support for PTP Finance IS Integration EZ-Expense Upgrade for Corp HRIS Integration EZ-Expense Upgrade for USHH Global Consolidation Plan Consolidation
HR
MRL PeopleSoft time tracking supporting CLPA US PeopleSoft time and labor implementation for US PeopleSoft Payroll for US requirements, development and testing for 1Q06
Integration with GI Shared Services Plan and Implementation of Integration, Decision Support and IM Shared Services
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Strategy
Financial Perspective
If we succeed, how will we look to the corporation as a whole? High Value/High Strategic IT will Merck assess our contribution to its success?) Cost Structure Use of Assets (How Return Initiatives Focused Optimized Optimized
Focused Worldwide Service Attributes BusinessQuality Driven To achieve Focused our vision, Predictable, Reliable & Responsive CostEffective Relationship Image
Manage Investment
Drive Efficiencies
Customer Perspective
how must we look to our customers? Value-Driven Integral (How will our customers understand our contribution?) Trusted
Partner & Innovative
Architecture & Breakthrough Portfolio & Information To Opportunities satisfy our customers and the Governance Management
as a whole, Compliance
Regulatory &
To achieve our
Leadership
Business & Engineering & Innovative Thinking vision, Acumen capabilities must we Operational Discipline put in place? Technical what Adaptability and Diversity
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Benefits
Benefits
Business Clients
ESS
Budget
Financial Savings
Cost Efficiencies
Quality of service
Delivery time-to-market
Time savings
Time Efficiencies
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Benefits Realization
Financial Savings and cost efficiencies
Year Activity Savings Status
Benefits
HRIS Integration Finance SLAs and SOPs PeopleSoft Payroll Puerto Rico JDE North America consolidation
2005
2005 2006 2006
200-400K
300K 500K 100K
In Progress
Planned Planned Planned
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Organization Model
Marketplace Model
* Includes professional and advisory services * Separates governance and service functions * Services charged to recover fully loaded costs
* Profit is retained
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IT Shared Services
GI Shared Services
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Operating Model
Organization Model
Business
Corporate Functions
Finance HR Legal/PA Procurement MRL
Business Divisions
MMD HH
Enterprise Architecture
Division IT
Corporate RIS A&IT HH
Support Run Services
Application Services
(Development & Maintenance)
Architecture Services
Manage GI Strategy
ESS
Global Infrastructure
IT Process Management
Build Services
Relationship Management
Client Services
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Organization Model
Client Services
Finance, Global Procurement, Legal, IS & Public Affairs
Client Services HR
Architecture Services
Application Services
Information Management Services Policies & Procedures Standards development Usage guidelines Training & Education Enterprise IM requirements IM Strategy and planning Enterprise reference consultation IM Innovation Consultation
ESS Services
Application and Project Information Management Architecture Application Architectural Engineering strategy and (inc web plan application & IM development) Application Support Service Management
Financial management Comm. Human Resources Administration processes Measurement and Reporting
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Services
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Services
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Services
>
>
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Services
Responsible for providing policies, procedures, reusable assets and specific solutions in support of Mercks enterprise integration needs.
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Services
Responsible for managing and deploying shared compliance, system testing, release management and resourcing (staffing) services to ESS Projects. Compliance will be monitored according to both regulatory and internal Merck requirements. Release Management is the coordination of the overall release of new technologies / functionalities. Resource Managers will administratively manage and deploy resources from a single resource pool. Deployment will be based on matching resource competency with client demand. Resource managers will not be responsible for formal staff (performance / development) management functions
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Enhance
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> Assess education/skill relevant to role > Invest in team building > Capture lessons learned and develop action plans (continuous process improvement) > Define workflows by projects in relation to project size and roles
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Small
ESS Client
Medium
ESS Client
AM/PM
Architect
AM/PM
BA
Architect
AM/PM
BA
PM/Dev
GI
PM
GI
TL
PM
TL
GI
Dev Team
Dev Team
Dev Team
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AM
BA
GI
PrgM
Architect
TL
PM
PM
TL
PM
TL
Dev Team
Dev Team
Dev Team
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ESS Client
GI
PrM
Architect
Ops Team
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1 2
3
4
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Location
India
Vendor
Tata Consultancy Services (TCS)
Comments
400-700 FTEs in IT worldwide by beginning 2006
Dedicated offshore development center
Top 10 Pharma - 1
Top 10 Pharma - 2 Top 10 Pharma - 3 Top 10 Pharma - 4 Top 10 Pharma - 5 Top 10 Pharma - 6 Top 10 Pharma - 7
India
mPhasis
India
Infosys mPhasis
IT systems management
India
Satyam
TBD TBD
TBD TBD
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Location
India
Operating Model
Outsourced
Vendor
mPhasiS
India
Outsourced
Infosys
India
Outsourced
mPhasiS
India
Outsourced
Satyam
Dedicated offshore development center Applications for mainframe, AS/400, Lotus Notes, Domino, SAP Data management for clinical trials Systems development, maintenance and outsourcing
India
Outsourced
TCS
Montevideo (Uruguay)
Outsourced
TCS
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Contractor
~100
~90
Employee
~50
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>Activity groups
>USHH
>MMD-A&IT
>Infrastructure DBA
>Total
20.5
29.2
>ESS
>USHH Helpdesk
>USHH Support >MMD/ Infrastructure
Total 69.7
34
Portfolio Applications Support: 60* MMS Impact: 3 QRIS LIMS: 4 124 7 7 DBA: 7
60*
14
207.7
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3
4
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CLIENT
Organizational Support
Large Capital Projects
A c c o u nt M a n a g er
Program Manager #1
Program Manager #2
1 2
Recent Activities
3
4
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Candidate
Grade 4 Grade 5
Grade 6
Grades 7-9
Grades 7-9
Contractors
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Grade 4 Grade 5
Grade 6
Grade 6
Grades 7-9
Grades 7-9
Strategic Outsourcing
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1 2
Recent Activities
3
4
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