Tivoli Usage and Accounting Manager TUAM Implementation and Utilization Process

1
Tivoli Usage and Accounting Manager (TUAM)
Implementation and Utilization Process

• Stephanie Shrake
• Lead Financial Analyst
• CareFirst BlueCross BlueShield

2
CareFirst Key Points

• Case Study Data Center Cost Allocation -
  Business Drivers
• Mainframe Distributed Systems
• Next Cost Allocation Projects

3
CareFirstBusiness Profile

• CareFirst is the largest health insurer in our
  region
• Mid-Atlantic Region Maryland, District of
  Columbia (DC) and Northern Virginia
• Lines of Business
• Regional Health Insurance Company servicing
  individuals, small employer groups, large
  employer groups, State and Local Governments and
  Federal Employee Program (OPM Office of
  Personnel Management)
• Company Statistical Profile
• 3,000,000 Members
• Process 600M in health claim benefits each month
• 4,800 employees across Maryland, District of
  Columbia, Virginia, North Carolina and West
  Virginia
• Other Information
• We are a not-for-profit BCBS plan that was
  originally the MD and DC plans we merged
  together to become CareFirst, Inc. in 1998. This
  created issues related to combining operational
  systems.

4
CareFirstCost Accounting

• Cost Accounting Functions
• Administrative Expense allocations to all of
  CareFirsts lines of business
• Various statistical drivers are utilized to
  accomplish this task
• Claim Counts (Claims Division)
• Contract and Member Counts (Sales Division)
• Customer Inquiry Counts (Customer Service
  Division)
• CPU Seconds (IT Data Center)
• IBM TUAM product
• Summarizes all of the CPU seconds by job name
• Creates text load file that is loaded into the
  Cost Allocation System

5
CareFirst InformationTechnology (IT) Profile

• Organization
• IT Structure IT supports the TUAM software for
  daily mainframe SMF (System Management
  Facilities) data feeds and for monitoring
  purposes only
• Cost Accounting TUAM is supported by the Cost
  Allocation Team located in the Finance Division.
  All TUAM maintenance, processing and testing is
  performed in Finance
• Topology
• Data Center We have one data center that
  houses two independent mainframes (2,844 MIPS)
• Networks We support both Windows (Virtual and
  Standalone Servers) and UNIX networks. We have
  156 UNIX Servers and 548 Windows Servers
• Other
• We do not perform Chargebacks at CareFirst. All
  IT administrative expenses reside and remain
  within the various IT Division cost center
  budgets. We are utilizing TUAM for CPU seconds
  allocations back to Lines of Business only

6
CareFirst TUAM History

• Due to MD DC regional merger activity, CPU
  seconds data was collected from two homegrown
  collection programs
• Data Center personnel were maintaining both
  mainframes in same data center location
• CPU seconds were not consistent in their
  measurement (mainframe speed, record layout, job
  name conventions, etc.)
• Outcome requirement one consistent CPU seconds
  measurement for both CareFirst mainframes

7
CareFirst IT Data Center Cost Allocation Project

• Project team of 12 associates was formed and
  began researching software solutions January
  2004
• Project Team included associates from the
  following areas UNIX servers, Windows servers,
  Desktop, Cost Accounting, IT Finance, Mainframes
  (DB2, CICS and Batch experts) and Purchasing
• No Internal IT support to create a homegrown
  system
• External vendor software package was the best
  solution
• Requirements were created

8
CareFirst IT Data Center Project Impacts

• Project Team Selection Requirements
• Software will be maintained within Finance
  Division not the IT Division
• Graphical User Interface (GUI) Front End is easy
  to maintain and understand no programming
  efforts are necessary
• Available Features
• Normalization Factors two mainframes, 156 UNIX
  and 546 Windows Distributed Servers
• Future Statistics Help Desk tickets, IT Time
  Reporting, etc.
• Training classes

9
CareFirst IT Data Center Project Impacts

• Project Team Selection Requirements
• Periodic software updates that include new
  programs and features for example, zIIP and
  zAAP
• Friendly and knowledgeable staff
• Vendor Office close to CareFirst Headquarters
• RFP was submitted to five vendors
• CareFirst selected CPU software package from CIMS
  Lab, Inc. CIMS Lab Inc was purchased by IBM in
  January 2006
• TUAM software implemented effective January 2005
• Phase I Mainframe collectors installed and in
  production mode
• Phase II Distributed Systems (Fall 2008)
• Implementation is lagging due to CareFirst
  internal resource and time constraints and not
  due to TUAM issues

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Know what IT costs The IBM TUAM funnel
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CareFirst Top Cost Accounting Issues

• Our 1 Financial Management Issue at this time is
  auditability by internal and external auditors,
  including external Federal Government Auditors
• Supportability of current and historic cost
  allocations to Federal Agencies. All of the CPU
  seconds statistics are available at granular or
  summary level (for example, job name, Logical
  Partition (LPAR), etc)
• Reportability of actual CPU seconds statistics
  utilized in the Cost Allocation Process by
  system. Additional statistical measurements (like
  tape, print, etc) are available, even though
  CareFirst is not currently utilizing these
  statistics

12
CareFirst Current TUAM Deployment

• TUAM Version deployed Mainframe 12.2 installed
  in November 2005 CIMS (TUAM) server version 4.3
  installed in October 2006 Windows and UNIX
  collectors version 4.3 installed in January 2006
• IBM Blue Branded version 7.1 expected Fall 2008
• Business uses TUAM is utilized for CPU seconds
  data collecting and normalizing purposes only
  all cost allocations are performed in a separate
  Cost Allocation System.

13
CareFirst Current TUAM Deployment

• Benefits to the business Provides consistent CPU
  seconds for two independently utilized
  mainframes. Also, provides detailed information
  regarding the CPU Seconds, such as Job name,
  LPAR, etc.
• CareFirst Usage Challenges
• We are still on the client-based CIMS Server
  version must be in the office to perform
  maintenance or utilize VPN (Virtual Private
  Network) to perform remote maintenance. We are
  planning to upgrade to latest version in July
  2008 that is web based.
• We originally implemented CIMS in January 2005
  (production) and have yet to archive any data
  there is a certain concern regarding archiving
  due to accessibility for upcoming audits.
• In the Fall 2008, the TUAM software will be
  virtualized with the Window Servers

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Current ArchitectureTUAM at CareFirst Today
GUI Client Based Reports Web Based
CIMS Server (Windows) v 4.3
v 12.2
UNIX Windows v 4.3
Mainframes
Distributed Servers
15
CareFirst 12-24 Month Cost Acctg Plans
Priorities

• TUAM servers (production and test) will become
  virtualized in Fall 2008
• Currently, CareFirst is virtualizing all
  Windows-based servers with 3 years of service
  TUAM collectors will be deployed on both
  standalone and virtual Windows servers
• TUAM upgrade to latest IBM version 7.1 will take
  place in Fall 2008
• Testing and implementing UNIX based servers CPU
  seconds data for input into Cost Allocation System

16
CareFirst 12-24 Month Cost Acctg Plans
Priorities

• Testing and implementing Windows based servers
  CPU seconds data for input into Cost Allocation
  System (virtual and standalone servers)
• Investigate additional IT statistics that could
  be utilized for the Cost Allocation Process
• Continue to educate CareFirst internal end
  clients on TUAM

17
Questions?

• Contact Information
• Stephanie Shrake
• E-mail stephanie.shrake_at_carefirst.com
• Phone [phone]