Cover image for IT services : costs, metrics, benchmarking, and marketing
IT services : costs, metrics, benchmarking, and marketing
Tardugno, Anthony F.
Personal Author:
Publication Information:
Upper Saddle River, N.J. : Prentice Hall PTR, [2000]

Physical Description:
xxvii, 201 pages : illustrations ; 24 cm.
Format :


Call Number
Material Type
Home Location
Item Holds
HD9696.67.A2 T37 2000 Adult Non-Fiction Non-Fiction Area

On Order




Author Notes

Anthony F. Tardugno is Manager, Site Manufacturing Information Technology for the Corporate Strategic Services Division at Xerox.



Preface It was not our initial intention to write a book dealing with IT services. We were assembled as a team to solve a real business problem. We were given our mission, put on our armor, jumped on our horses, and rode off to " slay dragons " in the name of customer satisfaction. The reason we draw this distinction is to point out the advantage this has for you, the reader, of being able to see demonstrated and proven results. It becomes obvious as you progress through each chapter that you are not getting a bunch of theory or unproved strategy. Instead, you are getting the benefit of a strategy and approach that has been implemented and refined, and is providing results. It is without question that we now live in an age where customer satisfaction is the primary motivating factor among industries. Businesses are focusing their efforts toward improved, expeditious, and more convenient products and services. There is a growing customer "obsession" that is having a net effect not only on what products and services a company or organization is offering, but how they are organized to deliver them. IT services are no exception. In the not too distant past, business was tied to its internal IT shop as the "only game in town" to deliver their requirements. With consulting and outsourcing strongly making their way onto the scene in the early nineties, the need to get services "inside" has waned, opening up delivery options to the business. This competition alone has probably done more for customer satisfaction than any single factor in the IT arena. As a business manager and customer of IT services, you want the most cost-effective solution that best meets your requirements regardless of who delivers them. As an IT provider of services, you want to maximize customer satisfaction by optimizing the level of service and optimizing cost. Whether the service delivery remains in-house or goes outside is almost immaterial. The delivery must go to the supplier most capable of delivering to the metrics defined. It is meeting or exceeding the customer's requirements that matters most. The "knowledge revolution" has spawned an army of "knowledge workers" equipped with "intellectual property" ready to do battle in today's "information on demand" market. As a result, there is an ever-increasing need for applications and associated infrastructure to be up and available when the customer requires them, and to keep the critical supply of information flowing. It is for this reason that your business needs to have the delivery of its IT services organized and resourced to meet the current business requirements, and at the same time be flexible enough to be able to change with the same frequency and velocity that the business does. For years, customers of IT computer services have long enjoyed the stability and predictability of centralized legacy mainframe applications. Most of their interactions with systems were through straightforward, unsophisticated, character-based screens, which essentially reflected a relatively simple single-threaded work process. Uncomplicated data structures served as the solid foundation on which the well-established custom application would reliably "chug" along. Database and system administrators lived a pretty uneventful existence, given the maturity of not only the application and hardware, but also the monitoring and maintenance tools. In the scheme of things, it is really only recently that large-scale enterprise resource planning (ERP) applications, residing on a distributed UNIX environment with sophisticated front-ends served by PC-based servers and workstations, have really begun their assault on the mainframe market. Commercial off-the-shelf (COTS) ERP packages are becoming commonplace and more and more appear to be among the strategy of major industries. With the systems trend moving in this direction, IT operations have turned their attention to the infrastructure required, both environment and support structure, to deliver the level of service to which the customer base has become accustomed. Having had the experience of little information and benchmarking from which to draw, it seemed to make sense that we put pen to paper, or more appropriately finger to keyboard. Our goal was simple: to document and share our findings, and more importantly, share the process we used to develop an integrated service delivery (ISD) model. IT Services: Costs, Metrics, Benchmarking, and Marketing was written to address the issues and challenges surrounding the development and implementation of an enterprise-wide operations center for application software. It's no mystery, if you are able to clearly define your end state, where you want to be, and if you have a "map" clearly marked with how to get there, and you have the resources and the means, then you will successfully make the "trip!" This book is your "map" to successfully developing, implementing, and measuring an ISD model. As you progress through the book you will see that there are no "magic formulas" or proprietary methodologies, just a straightforward, organized, customer-oriented approach. The key being customer-oriented. With technology so widespread and readily available, competitive advantage must be sought through other avenues. These days a main competitive advantage comes through customer care and satisfaction. Think about your last PC shopping experience. In your search you probably noticed that PCs, for the most part, are essentially all the same. What factors went into your choice? After-sale support and service, 800 number ease of use, onsite repair versus depot or mail-in repair? All of these are customer-related factors. It is for this reason that we took a customer approach in developing our ISD model. Whether it is PCs, appliances, cars, or computing operations services, customers all want to be "handled with care." Using a ground-up approach, we modeled the services required and expected by our customer base, and it was from this base set of services that we developed and defined the entire ISD model. An approach that is implemented, is working, and is proven! Here is a brief overview of what is contained within the book: Chapter 1 frames the book by describing the background and the reason for developing an integrated service delivery model. This chapter basically puts the book in perspective and gives you a frame of reference. Chapters 2 and 3 provide the detailed steps necessary to get started-from writing the "job ticket" and "charting the approach" to organizing the project and management teams. Chapters 4 and 5 describe the business linkages from a services and services framework perspective while defining the marketing and communication aspects of service development and delivery. Chapters 6 and 7 describe the development of requirements and the service model from a customer perspective. The chapters further detail how to develop the processes necessary to deliver the service model to the defined level of service. Chapters 8 and 9 detail how to structure the organization to deliver the service model, as well as how to develop a correlating resource and cost model. Chapters 10 and 11 walk you through the benchmarking process, help you to define the metrics against which you should measure your ISD delivery, and define how you know when you reach success. Chapters 12 and 13 review lessons learned and "key messages" along with the answers to frequently asked questions. Who Should Read This Book? IT Services: Costs, Metrics, Benchmarking, and Marketing was written to be viewed from multiple perspectives: the IT professional, the business manager, the customer, and the student. It serves as a "road map" for IT executives, IT managers, and IT senior technical personnel who are tackling the issues surrounding the development and implementation of an enterprise-wide operations center for commercial off-the-shelf (COTS) application software. It is a practical guide for business managers working with the IT community to develop a stable, predictable, cost-effective support infrastructure for COTS application software supporting the enterprise. It is an educational vehicle to help customers better understand what they should expect from their COTS application software support infrastructure and to be better able to articulate their requirements. It is also an educational vehicle that provides the student, the aspiring IT and business professional, with a real-life practical application of developing and implementing an integrated service delivery model. Practical, not just theory. Excerpted from IT Services: Costs, Metrics, Benchmarking and Marketing by Anthony F. Tardugno, Thomas DiPasquale, Robert Matthews All rights reserved by the original copyright owners. Excerpts are provided for display purposes only and may not be reproduced, reprinted or distributed without the written permission of the publisher.

Table of Contents

List of Figuresp. xvii
List of Tablesp. xix
Prefacep. xxi
Who Should Read This Book?p. xxiv
Acknowledgmentsp. xxvii
Chapter 1 Introductionp. 1
1.1 Backgroundp. 2
1.2 Sourcing from Within--Why Insource?p. 3
1.2.1 Customer Satisfactionp. 5
1.2.2 Definability and Measurabilityp. 5
1.2.3 Stability and Variabilityp. 5
1.2.4 Predictabilityp. 6
1.3 Planning for Successp. 7
1.3.1 Understand and Define Your Problem Setp. 7
1.3.2 Define Your Scopep. 7
1.3.3 Establish Guiding Principlesp. 8
1.3.4 Make Fact-Based Decisionsp. 8
1.3.5 Benchmarkp. 8
1.3.6 Understand Your Goal/Define Your End Statep. 9
1.3.7 Establish Coalitions/Gain Buy-Inp. 9
1.3.8 Exercise Qualityp. 9
1.3.9 Develop a Plan and Stick To Itp. 10
Chapter 2 Getting Startedp. 11
2.1 Writing the Job Ticket--"The Ask"p. 11
2.1.1 Problem Statementp. 12
2.1.2 Purpose/Statement of Deliverablesp. 13
2.1.3 Scope/Boundariesp. 13
2.1.4 Team Definitionsp. 14
2.2 Forming "The Core Team"p. 15
2.2.1 Find a Strong/Capable Project Managerp. 16
2.2.2 Selecting the Members of the "Core Team"p. 16
2.2.3 Staff Team with Dedicated Resourcesp. 16
2.2.4 Empower the Work Group--Autonomyp. 17
2.3 Charting the Approachp. 17
2.3.1 Restate the Problem Setp. 17
2.3.2 Define the Scopep. 18
2.3.3 Define Your Work Process/Review and Feedback Loopp. 19
2.3.4 Gain Buy-In Earlyp. 19
2.3.5 Have Fun!p. 20
Chapter 3 Establishing and Managing Coalitions--Gaining Buy-Inp. 21
3.1 Establish Management Buy-In Earlyp. 21
3.1.1 Supporterp. 22
3.1.2 Non-Supporterp. 22
3.1.3 "On the Fence"p. 22
3.2 Establish Customer Buy-In Earlyp. 23
3.3 Establish Supplier Coalitionsp. 24
3.3.1 Procure Subject Matter Experts (SMEs)p. 24
3.3.2 Test Market for Resource Availability-- Can It Be Staffed Effectively?p. 24
3.4 Establish an Information Networkp. 27
3.5 Identify and Understand Riskp. 28
Chapter 4 Business Linkagep. 29
4.1 Understanding the Company Missionp. 29
4.2 Services in a Traditional Business Frameworkp. 30
4.3 Object-Oriented Service Delivery Frameworkp. 32
4.4 Balancing the Servicesp. 35
4.5 Services Linkagesp. 38
Chapter 5 Marketing and Communicationsp. 41
5.1 Marketing 101p. 42
5.1.1 Identify and Define the Product/Servicep. 42
5.1.2 Determine the Value and Price of the Product/Servicep. 44
5.1.3 Establish a Distribution or Delivery Vehiclep. 46
5.2 Communicate Early and Often-- Who, What, When, Where, Howp. 48
5.2.1 Whop. 48
5.2.2 Whatp. 48
5.2.3 Whenp. 49
5.2.4 Wherep. 49
5.2.5 Howp. 49
5.3 Define/Communicate the Metrics Upfront-- Quality, Cost, Delivery, Valuep. 50
5.3.1 Qualityp. 50
5.3.2 Costp. 53
5.3.3 Deliveryp. 53
5.3.4 Valuep. 56
5.4 Understand/Identify and Communicate Riskp. 56
5.5 Explain Roles and Responsibilitiesp. 58
5.5.1 Account Managementp. 59
5.5.2 Help Deskp. 59
5.5.3 IT Managementp. 59
5.5.4 Operations Managementp. 60
Chapter 6 Taking a Customer Approachp. 61
6.1 Understanding Your Customers' Requirementsp. 62
6.2 Developing the Service Modelp. 62
6.2.1 Brainstorm Listp. 63
6.2.2 Work Package Grouping Example Listp. 66
6.3 One-Stop Shopping--Seamless Deliveryp. 68
6.3.1 Project Managementp. 69
6.3.2 Support Servicesp. 70
6.3.3 Operationsp. 72
6.3.4 Asset Planning and Controlp. 75
6.3.5 Help Deskp. 75
6.4 Customer Satisfactionp. 79
Chapter 7 Processes and Proceduresp. 81
7.1 Introductionp. 81
7.2 Customer Communicationp. 81
7.2.1 Help Desk Notification Procedurep. 83
7.2.2 Customer Escalation Processp. 84
7.2.3 Exception Reporting Processp. 87
7.3 Internal Communication Processes and Proceduresp. 88
7.3.1 Help Desk Off-Hour Escalation Processp. 89
7.3.2 Team Member and Vendor Contact Listsp. 90
7.3.3 ISD Internal Request Procedurep. 92
7.4 Change Control Processp. 93
7.4.1 Change Controlp. 94
7.4.2 Change Control Listp. 94
Chapter 8 Structuring for Successp. 97
8.1 Introductionp. 97
8.2 Structuring the Organizationp. 97
8.2.1 Help Deskp. 99
8.2.2 Job Descriptionsp. 100
Chapter 9 Resource and Cost Modelp. 103
9.1 Introductionp. 103
9.2 Resource Modelp. 104
9.2.1 Scheduled or On Demandp. 104
9.2.2 Offered Timep. 104
9.2.3 Skill Setp. 105
9.2.4 Frequencyp. 105
9.2.5 Unit of Measurep. 106
9.3 Estimating Server Unitsp. 106
9.4 Resource Spreadsheetp. 108
9.5 Cost Managementp. 109
9.6 Ongoing DB Monitoring and Maintenancep. 110
9.7 Application Server Supportp. 112
9.8 Cost Modelp. 113
Chapter 10 Benchmarkingp. 117
10.1 Why Benchmark?p. 118
10.1.1 Understanding the Current Environmentp. 118
10.1.2 Get New Ideasp. 118
10.1.3 Ratify Old Ideasp. 119
10.2 Establishing a Company Profilep. 119
10.2.1 Understand Business Contextp. 119
10.2.2 Key on Primary Areas of Concern, Vulnerability, or Exposurep. 120
10.2.3 Understand Yourselfp. 120
10.3 Identifying Target Companiesp. 122
10.3.1 Identify Peersp. 123
10.3.2 Utilize Vendor's Resourcesp. 123
10.3.3 Coordinate Data Collection/Visitsp. 123
10.3.4 Sensitivity to Peer Sitesp. 124
10.3.5 Confidentialityp. 125
10.4 Developing Your Questionnairep. 125
10.4.1 Structure Queries Appropriatelyp. 125
10.4.2 Site Visit Questionnairep. 125
10.5 Analyzing the Benchmark Datap. 128
10.5.1 Document, Document, Documentp. 129
10.5.2 Analyze Efficientlyp. 129
10.5.3 Be Quick or Be Deadp. 129
10.6 Implementationp. 130
Chapter 11 Measuring Successp. 131
11.1 Defining Successp. 131
11.1.1 Define Success Before You Startp. 132
11.1.2 Service Level Agreementsp. 134
11.2 Ensuring Successp. 135
11.3 Metricsp. 137
11.3.1 Service Level Definitionp. 137
11.3.2 Service Metricsp. 139
11.4 When Have You Reached Success?p. 141
11.4.1 Service Satisfaction Surveyp. 142
11.4.2 Continuous Successp. 143
Chapter 12 Lessons Learned--Key Messagesp. 145
12.1 Overviewp. 145
12.2 Processesp. 146
12.3 Peoplep. 146
12.4 Communicationp. 146
12.5 Technologyp. 147
Chapter 13 Frequently Asked Questions (FAQ)p. 149
Appendix A Job Descriptionsp. 153
A.1 Account Managerp. 153
Educationp. 153
Experiencep. 153
Skillsp. 154
Performance Expectationsp. 154
Training and Developmentp. 156
A.2 Oracle System Administrator (OSA)p. 156
Educationp. 156
Experiencep. 156
Skillsp. 157
Performance Expectationsp. 157
Training and Developmentp. 159
A.3 System Administrator (SA)p. 160
Educationp. 160
Experiencep. 160
Skillsp. 161
Performance Expectationsp. 161
Training and Developmentp. 163
A.4 Database Administrator (DBA)p. 164
Educationp. 164
Experiencep. 164
Skillsp. 165
Performance Expectationsp. 165
Training and Developmentp. 167
A.5 Network Specialist (NS)p. 168
Educationp. 168
Experiencep. 168
Skillsp. 168
Performance Expectationsp. 168
Training and Developmentp. 170
A.6 Operational Manager (Ops Mgr)p. 171
Educationp. 171
Experiencep. 171
Skillsp. 171
Performance Expectationsp. 171
Training and Developmentp. 173
A.7 Manager Customer Services (CS Mgr)p. 174
Educationp. 174
Experiencep. 174
Skillsp. 174
Performance Expectationsp. 174
Training and Developmentp. 175
Appendix B Sample Service Level Agreementp. 177
Section I System Availabilityp. 178
Section II Problem Managementp. 179
Section III Support Servicesp. 181
Attachment B Problem Severity Definitionsp. 182
Attachment C Problem Resolution Controlp. 183
Attachment D Status Call Contactsp. 183
Attachment E Escalation Contactsp. 184
Indexp. 193