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© IG Service ConsultingApr 2013 Project Scoping Decisions Lift & Shift v Transform & Shift
© IG Service ConsultingApr 2013 Lift v Transform There is much discussion recently concerning the outsourcing of services and whether to simply ‘Lift and Shift’ services and processes or whether to ‘Transform’ before ‘Shifting’ services ‘Lift and Shift’ is cheaper and quicker ‘Transform and Shift’ takes longer, but can –Eradicate poor practice –Remove embedded tacit knowledge from long term staff –Provide a level playing field for service partner –Clearer measures for the client This paper provides a view of pros and cons of the two options
© IG Service ConsultingApr 2013 Service Imperatives Process and Toolset redesign provide the basis for improved: Effectiveness - doing the right thing Efficiency - doing the thing right Economics - doing it at the right price Behaviour - shifting behaviours through improved system controls and ease of use Ensuring key controls are met: Compliance- meeting policy and legal requirements Governance - meeting management control requirements and performance IT Risk - meeting IT control requirements
© IG Service ConsultingApr 2013 Lift and Shift Pros and Cons Pros –Shorter initial implementation –Lower initial project risk –Need only consider current process capabilities Cons –Limited review of current operational processes and interfaces –Toolset design/development to incorporate existing bespoke processes, functionality, reporting etc. –Toolset design/development required for interfaces, integrations, 3 rd parties etc. –May uncover discrepancies between defined process and actual process –Limited improvement in behaviours –Limited improvement in operational outcomes –Scope may ‘drift’ to meet functionality of new toolset –Higher risk and cost of future transformations if no action is taken
© IG Service ConsultingApr 2013 Transform and Shift Pros –Detailed review of current organisation, processes, toolset, interfaces and integrations –Drives review of integrated systems and services –Optimisation and standardisation of processes and service –Improved automation –Consideration of future requirements –Faster implementation of future requirements –Greater change in service performance –Reduced administration and support –Improved system usability –Improvement in behaviours –Improvement in Operational outcomes Cons –Longer initial implementation –Resistance to change –Higher risk of implementation due to wider scope
© IG Service ConsultingApr 2013 High Level Tasks Task DescriptionLift and Shift Transform and Shift Stakeholder Buy-in Existing Toolset Functional Review Existing Process Review Existing Toolset Environment Review System Interfaces Review System Integrations Review Data Sources Review Reporting and Dashboards Admin and Support Review Users Review 3rd Party Users Review Non-functional requirements Gathering Functional Requirements Gathering Process Requirements Gathering Non-functional Improvements Analysis Functional Improvement Analysis Process Improvement Analysis Wider Business Process Review Behavioural Change Review Organisational Improvement Analysis ‘Fit’ to Service Roadmap Process Design Process Development/Build Define Toolset Environment Toolset Design Toolset Development/Build Data Sources Integrations System Integrations Development/Build IT Risk Review IT Governance Review User Acceptance Testing System Testing Integration Testing Deployment Planning Training
© IG Service ConsultingApr 2013 Lift v Transform Outcomes Lift and Shift Outcomes –Similar/same process –Significant design and development effort required to retrofit existing system functionality and processes –Low user opinion of new toolset (low perception of toolset due to retention of older processes) –Limited shift in behaviours –Limited uplift in operational performance Transform and Shift Outcomes –Process optimisation –Toolset optimisation –Opportunity for standardisation –Stakeholder input and buy-in –High user opinion of new toolset and processes –Greater shift in behaviours –Greater uplift in operational performance –Specifically built-in controls and governance
© IG Service ConsultingApr 2013 Major Considerations ‘Lift and Shift’ Requires a significant amount of effort to assess, design and build the new environment, interfaces and integrations etc., and there is likely to be a ‘drift’ towards easily accessible functional benefits of the new toolset Likely to create a poor perception of the new toolset e.g. people, process and existing issues are likely to be retained in the new environment Delays the inevitable major transformation required at some stage in the future Does not eradicate existing functional and process deficiencies ‘Transform and Shift’ Provides opportunity to optimise toolset, processes and organisation Engages a wider business audience and perspective of requirements Creates opportunity to design and develop the toolset platform in line with the forward looking Service Roadmap Standardisation of processes, enabling improved controls and audit Provides a platform for future service and process improvements
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