Title: Software%20Engineering%20Operation%20Application%20Services%20Business%20Plan
1Software Engineering OperationApplication
Services Business Plan
- Fast Track Business Plan v.2
- May 18, 1998
- This version includes the following revisions
since the 4/29 Management review - A revised segmentation model (same information)
(pg. 9-11) - Fine tuning of the service offerings (pg. 21-23)
- Adjustment on 3 Year Objectives (pg. 32)
- New forecasting scenarios (pg. 36-38)
- New sales assumptions and guidelines (pg. 43)
- Sales and marketing success tracking indicators
(pg. 44)
2Contents
- Customer Needs and Challenges......3-7
- Segmentation....................................8-
16 - Offer Services.............................17-30
- Goals, Financials Resources.......31-40
- Required Issues and Actions...........41-48
- Appendix of Misc.. Slides................49-66
- Contributors
- Gary Gujral, Joe Martinez, Helmut Bentsche, Terry
Ash, Donnie Foster, Matt ODonnell, Michael
Dautel, Mike McGarry, Satish Varma (TCS) - Business Plan written by
- Jeri Crittenden, Consultant
3Customer Needs Challenges
4F1000 Top Service Initiatives - 97
of Respondents
Customers resources and skills are stretched
across a wide range of initiatives, technologies,
and implementation timelines.
Source Dataquest end-user budget survey , 7/97
as quoted in Y2K Market Analysis
5Client Needs and Application Services
Key needs where customers look to application
developers, systems integrators and outsources.
Services Needs
New development Achieve competitive advantage,
accelerate TTM, increase profits, obtain new
skills, accelerate BPR efforts Data warehouse and
mining Business performance customer needs
analysis improvements Emerging Internet
Change customer and supplier business models,
accelerate TTM. technology Integrate with
legacy environments. Package Implementation Integr
ate business functions, improve TTM
functionality. Management Transitioning
Conversions, migrations, re-hosting,
transformation to new architectures for
performance, capability or cost improvements Year
2000 Services Assess problem, obtain resources,
convert or replace Retooling Teach staff new
processes, technologies, methodologies
Support Application help desk, 24X7
troubleshooting Maintenance Fix bugs, reduce
costs, improve operational performance or
productivity, shift of internal resources to
new development
Integrate w/ current environments
6IT Staffing Dilemma
Finding retaining skilled resources has become
a major IT challenge
Competition with providers for resources
Service provider as a solution to resource
shortage
Service provider as a competitor for resources
- Recruiting network
- Skills database
- Subcontractors
- Offshore
- Colleges
- Retention
Staffing Recruiting
- Methodologies
- Processes tools
- Service delivery model
- Management training
- Certification
- Career paths
- Interviews
- Skills tests
- Mentoring
- Project knowledge transfer
Training Reskilling
Skills Transfer Assessment
Three most important elements of the staffing
dilemma
Source Gartner Group 1997 from Deloitte Touche
survey of 1400 CIOs WW
7Competitive LandscapeMany Players
New Development Andersen Consulting Gap Gemini
Sogeti MCI Systemhouse Cambridge Technology
Group
Package Management Andersen Consulting EDS Pric
e Waterhouse CSC
Full Service EDS IBM Global Services CSC Perot
Systems SAIC Unisys
Staff Augmentation Computer Horizons Keane Comp
uter Task Group Accustaff
Offshore IMR CBSI HCL America Mastech Syntel
Infosys
Year 2000 Gap Gemini Ciber Inc. Cognizant
Technology Solutions IBM Global
Services Computer Horizons Compuware Data
Dimensions Mastech IMR Keane
Transitioning MCI Systemhouse Lockheed
Martin Andersen Consulting GE
Capital Entex Vanstar PKS
Legacy Maintenance Keane Coopers
Lybrand Andersen Consulting Cap Gemini
America IMR
Source Gartner Group, 7/97
IDC Top Providers, 1997
8Segmentation
9Application Services Segmentation Approach
SWEOs target segment for application services --
Value Seekers --enterprises aggressively
applying technology for new or improved business
capabilities - and are resource constrained.
Segment F
Segment E
Segment D
Segment B
Segment C
Segment A
Early adopter
Value seekers
Cost conscious
- Wants help to apply technology
- Lower risk
- TTM - Increase speed of implementation
- New functionality for competitive advantage
Deployment Capability The Gap
- Implement beta /emerging technologies
- Proof of concept technology does what is promised
- Focus on cost savings and improved operations
- Free in-house IS to work on strategic initiatives
Low or no Gap
High Gap
Routine/standardized
Emerging technology
New Solutions
Stage of Technology Integration in Marketplace
10Services for the Target SegmentFocus Which
Needs? Which Services?
Where can SWEO - Add the most value to solving
customers business problems - Earn profit
(premium price) - Set direction for future
growth - Leverage our strengths experience -
Establish credibility - Position w/ channel
competitors
Early adopters
Cost conscious
- Value seekers
- Wants help to apply technology
- Lower risk
- TTM - Increase speed of implementation
- New functionality for competitive advantage
- Possible Services to Meet Needs....
- New development
- Data warehouse and mining
- Emerging internet technology integration
- Package Implementation Management
- Transitioning
- Year 2000 Services
- Retooling
- Support
- Maintenance
New Solutions
11Services Mapping to the Target Segment
- SWEO Primary Application Services
- Address urgent business needs
- Add significant value for premium
- Leverage India expertise
- Differentiate on lowering risk and TTM
- Align w/ ISBU role
Early adopters
Cost conscious
- Value seekers
- Help apply technology
- Manage risk
- TTM - Increase speed of implementation
- New functionality for competitive advantage
Key Customer Services to Meet Needs.... New
development Emerging internet technology
integration Secondary Services Transitioning
Year 2000 Services Retooling
Support Maintenance
Integrate with existing/legacy environments
New Solutions
12Competition How Differentiate?
Vendors Value Propositions Resources, skills at
low cost Improve processing efficiencies,
manage costs Management expertise moving into
technology Integrate anything New /existing
technology know-how to use/ manage it
SWEO Target
Offshore Co.
IT Outsourcers
Mgmt Consultants
SIs/AC/ ISSC
Product Vendors
Different value for services over time
Help apply technology, increase speed of
implementation
Provide cost savings and to free in-house IS
Emerging technologies
13SWEO Internet Focus
Application Services helps drive HP emerging
software into the....
Internet Solution Landscape
Use ISBU SSG software for depth of integration
with enterprise legacy operations, applications,
and databases
Internal publishing Collaboration, workflow
Internal business- to-business apps.
Home pages Dynamic Web pages Business-to cons
umer apps.
Access Collaboration Transaction
SWEO Target for Internet Solutions
Intranet Internet
ISBU Emerging Solutions
Source SWEO modified from International Data
Corporation 1997
14SWEOs Target Client
Our strategic business initiatives require more
IS resources with the right skill set and
experience than we have or can reasonably hire
and train in the next 1-2 years.
- IS has a significant delivery gap they are
lacking 50 person years of development
capability and are in pain.Gap may be due to
numerous reasons - Lacking IS resources and skills to manage
business unit demands for applications to achieve
strategic/competitive advantage - Backlog of application revisions for new
capabilities or performance improvements - Year 2000 projects have consumed resources
- Organizations undergoing business initiatives to
take advantage of emerging internet technologies
- but concerned about implementation risk - Concerned about loss of control through
outsourcing
15Target Opportunity - Checklist
- Primary Criteria
- Customers in SWEO targeted, named enterprise
accounts - Focus on financial services market with FSBU
EAO - Major delivery gap 50 man years of development
- Skills gap for emerging technologies
- IT methodologies and tools dated - struggling
with move to new technologies - Planning to use internet and open systems (UNIX)
NT technologies to improve business to
business or business to consumer performance - Better than 50 chance to evolve from a
projects-to-alliance relationship - Open to or exploring India resources
- SWEO is NOT Targeting
- Stand alone Year 2000 projects
- Stand alone maintenance projects
16Target Opportunity - Checklist
Target Account s
Current Environment
Primary Criteria
Additional Qualifiers
High degree of custom S/W development (COBOL
M/Fs)
Financial Services (98)
- HP relationship at IT LOB
- Open to or exploring India for resource
- Possible to use SSG S/W products
- Dated IT Infrastructure Processes
- No entrenched SI or Outsourcer - or not
satisfied with current partners
Delivery Gap 50 man years
Skills Gap in newer technologies
Using IT for competitive advantage
- Legacy to......
- Internet/
- Emerging
- UNIX
- NT
Legislative or Industry pressure (deregulation)
High probability for long-term S/W partnership
No Standalone Y2K or Maintenance projects
17Offer Services
18SWEO Offer
Our Application Services Alliance Program (ASAP),
offers an approach to strategic application
development that reduces risk and accelerates
solutions deployment when compared to staff
augmentation, project based contracts, or
outsourcing alternatives.
Partnership
HP-Quality Application Development Services
Knowledge Transfer
ASAP
Access to large pool of skilled resources
Deep knowledge of HPs technologies
19Key Differentiation
ASAP is a collaborative approach that allows the
client to maintain contol of strategic
applications, provides access to large pool of
skilled resources, and reduces per project
start-up time and risks.
ASAP (IT Extension Approach)
IT Outsourcing
Resource Augmentation
- Requires Customer management oversight as the
prime - High per project start-up time
- Customer must find skilled resources
- Increases on-site infrastrucutre costs
- Ranges from bodies to SI projects
- TM to Fixed price
- Joint Project Office primes
- Manage multiple project streams
- Provides access to very large quantities of
skilled resources - Global, off-site resource infrastructure
- Consistent application of tools methods
- Deliverables based pricing
- Vendor primes and contols
- Long specification bidding process for 5-10
year outsource contract - Vendor buys assets
- Continue on-site infrastructure costs
- Fixed price with renegotiations
20Services-to-Alliance Strategy
What were after Clients we can engage 2-3
times and evolve to a multi-year Alliance
3
- Customer
- Business
- Drivers
- Changing business models
- Competitive advantage
- Multiple strategic application projects
2
Project 1
- Alliance
- 3 year relationship
- Minimum 50 man years of resources annually
- 10 million annual revenue minimum
Application Services
Supporting Services we do these in support of
application development engagements Platform
Transitions Code Conversions (Y2K) Application
Support
- 2-4M annual minimum per project to get started
- 2-3 projects that lead to alliance within 2 years
21ASAP Services
SWEOs primary service focus is strategic
application development. We provide three
complementary services to support the delivery of
the strategic application. For all four service
areas, integrating internet and newer
technologies into existing environments is a
major focus and significant part of our value
added.
ASAP Methodology
Strategic Application Development Deployment
Internet Enabled
Legislative, Year 2000, Euro 02
Application Platform Migrations
Application Enhancements
22ASAP Methodology
- Establishes and manages joint Client-HP software
development alliance and project office - Establishes a process to meet business priorities
- Provides rigorous project management and
processes to manage software engineering
resources on multiple project streams
simultaneously - Provides on-site design and large-scale
(hundreds) off-site software engineering resource
ramp and management - Establishes a distributed, physical environment
for quality software development and support - Implements a communication equipment
infrastructure - Applies integrated process management (i.e.
forecasting, production planning, quality,
documentation, etc.) - Applies clients tools and methodologies as
required - or HPs - Implements appropriate practices (re-use,tools
use) - Provides for knowledge transfer
ASAP Methodology
Strategic Application Development Deployment
Internet Enabled
Legislative, Year 2000
Application Platform Migrations
Application Enhancements
23Strategic Application Development Related
Services
- Application Development Service - Application
design, development and deployment for HP and NT
platforms - Application Transition Service - Application and
platform migrations from any current mainframe or
server environment - Application Compliance Service - Assessment and
code conversions for legislated situations like
Year 2000 or Euro currency, during Application
Development or Transition Services - Application Enhancements Services - Continued
support for developed or re-hosted applications
ASAP Methodology
Strategic Application Development Deployment
Internet Enabled
Legislative, Year 2000
Application Platform Migrations
Application Enhancements
24ASAP Methodologies Tools
.....Form the foundation for quality application
initiatives
- Methodologies
- IT Extensions (ASAP)
- Project Management (Focus PM)
- Software Development (CPLC)
- Migrations
- Year 2000
- Application Enhancements
- Quality
- Tools
- Project Management tools
- Software estimation tools
- Software defect tracking tools
- ISO 9000 based software process definitions
- SEI based process improvement methods
- Knowledge management
Documenting each...
25MigrationMethodology
Example.....
Customer Site HP Site Customer Site
- Application Analysis
- Environment Investigation
- Alternatives Analysis
- Establishing Project Objectives Scope
- Developing Project Estimates Plans
- Tools Specification
- Application Migration Tools
- Data Conversion Tools
- Environment Conversion Tools
- Tools Testing
- DB Conversion
- Pilot Migration
- Program Conversion
- Unit Testing
- Integration Testing
- System Testing
- Documentation
- Functional Verification
- Interface Development Testing
- Stress Testing
- Performance Tuning
- Installation
- User Training
- Maintenance Support
Deliverables Activities
- Migration Guide
- Implementation Proposal
- Migrated Pilot Application
- Migrated Code
- Data Migration Tools
- Environment Migration Tools
26ASAP ExpertiseDeep technical expertise and
critical resources to support strategic
initiatives
- HP Emerging Technologies
- Open Pix Security Change Engine
- Future....
- Languages
- COBOL FORTRAN
- C C
- Java OracleForms
- Basic VB
- PASCAL PowerBuilder
- Proprietary languages
- Platforms
- HP-UX MPE/iX
- MVS/CICS
- Windows NT Windows 95
- Databases
- DB2 Oracle
- Informix Sybase
- SQLServer Ingress
- Allbase Image
- IMS IDMS
- Case Tools
- Oracle IEW
- ParadigmPlus
Need to be able to describe depth...
27HP/ SWEO Contributions Summary
- Partnership
- Multi-year commitment
- Account Team local presence relations
- Lower risk
- Reliable partner
- HP-Quality Application Development Services
- Multi-vendor experience
- Globally distributed S/W development
methodologies - Global support
- Knowledge Transfer
- For application of emerging technologies
- Two-way for processes, tools, methodologies
ASAP
- Deep knowledge of HPs technologies
- HP R D Alliances
- Broad deep technology base
- Access to large pool of skilled resources
- Software Competence Center
- Rapid ramp of skilled resources
- Global communications infrastructure
28Market PositioningPerception and reality we are
after....
- HP technologies competence
- Large scale Project Management experience
- Large pool skilled resources
- Global distributed SW Engg
SWEO ASAP
TTM Ability High Med Low
Integrator
Offshore company
High Med Low Risk
- Management systems
- Global infrastructure
- HP - reliability experience
29Customer Examples
Need to find the optimum balance to premium price
Valueometer
State Farm - Falcon
M/F
HP 3000
Ability to ramp resources
Technology competence
- Claims Processing Migration
- Deadline 10 day close
- Needed 130 COBOL developers in 2-3 months
- GM 33,NOP 21.9 completed ahead of schedule
30Projects SummaryWhere we are....
31Goals, Financials Resources
32Statement of Purpose
- SWEO Purpose is to provide software engineering,
enterprise infrastructure integration and custom
support. We team with - the Internet Software Business Unit (ISBU)
product and operation groups to bring software
products to market to help create a profitable
software business for HP, and - EAO organizations to help build a strategic
presence in targeted enterprise accounts.
- SWEO Vision is to be a global, premier provider
of strategic internet enterprise solutions
enabled by HP software products.
- The ASAP purpose is to help build HPs strategic
presence in our target accounts. Well do this by
providing application services that support our
clients business needs for competitive
advantage. We will focus on - helping our clients achieve better time to market
and functionality on new or redesigned enterprise
applications, - reducing the risk of the transition to newer or
emerging technologies - and integrating existing environments with
emerging internet/e-business software and
solutions.
33Three Year Objectives1998 - 2000
- Objectives
- Build multi-year (3 year minimum) annuity revenue
application alliances with a portfolio of
clients. - Become a preferred software engineering partner
to targeted clients for integrating HP internet
SW and emerging technologies into existing
environments. - Key Strategies
- Focus on implementing ASAP and supporting
methodologies. - Target Financial Services in 1998, and two
additional industries by 2000. - Develop a team with competencies in delivering
premium software engineering services (emerging
technologies TTM functionality, re-use). - Leverage the India competency center for large
scale, skilled resources.
- Goals / Performance Tracking
- Evolve application services delivery to 50
internet/emerging technology development and
integration services by 2000. - Earn a top three position (HP, IBM, ?) as a
hardware vendor that provides internet
integration and development services. - Build annuity revenue via 1 new client alliance
in 1998, 2 in 1999 and 3 in 2000. - Continuously evolve our value added to be able to
premium price services to achieve a minimum 40
overall profit margin annually 1998-2000. - Achieve resource utilization rate of 85 in 1999.
- Achieve Application Services 98-01
- orders of US 20M, 32M, 58M, 76M
- revenue of US 15M, 27M, 52M, 73M.
34May 98 REVENUE Forecast(US000)
98 99 00 01 3,000 150 750
150 1,000? -0- 5,050 3,000 5,000 10,000
15,000 3,000 5,000 10,000 15,000 6,000 10,0
00 20,000 30,000 11,050 10,000 20,000 30,00
0
Current Customers Americas -State Farm ICAT
-AllTel migration -Ford -Disa Europe Japan Sub
total Funnel -State Farm Alliance -AllTel
Alliance Subtotal Total
Americas SERC annual revenue forecast goal for
SF AllTtel Alliances is 5M, 12M, 20M, 20M
respectively. The writer of the business plan is
taking a more conservative view.
35Project Size Scenarios
The Perfect World
Alliance 3 years 50 man years / year
Alliance Medium Small Assessment Annual
Revenue 5.5M 4.0M 2.0M 200K (3 Mo.) COGS
_at_60 3.3M 2.4M 1.2M 0.18 On-site Project
Director 1 1 (Proj Mgr) 1(Proj Mgr) Project
Admin 1 1 Clerical 1 On-site - From
India Project Mgr 1 1 1 1 Technical
Leads 2 2 1 2 Software Eng 1 1 Off-shore Projec
t Managers 2 2 1 Technical Leads 4 3 1 Programmers
38 26 10 Profit _at_ 40 2.2 1.6M 0.8M
0.12 Total H/C 50 36 16 4
36ASAP Forecast Scenarios
- The following forecasts are provided as a way of
opening the discussions with each SERC to
determine what is possible. - There are three forecast scenarios
- Aggressive
- Stretch
- of SWEO SCALE
- The forecasts will be reviewed with each SERC
Manager and goals will be set by the Management
team. - Each team will be asked to develop a bottom-up
forecast using current sales leads in the sales
cycle for forecasting. - Each team should consider and work towards
validating - What are the sales cycle phase time frames?
- What are the percentages to be used for tracking
between the phases? - What are the project sizes we are seeing in the
regions?
37ASAP Forecast Scenarios
38(No Transcript)
39Global Deployment
Americas USA Canada Mexico Brazil ROA Europe Ger
many/Austria/Switz UK France Scandinavia Italy Ibe
ria Eastern Europe Benelux Japan AAA
98 99 00 Build Grow Grow Opportunistically
only Build Grow Grow Build
Grow Grow Opportunistically only Build
Grow Grow
99 Country strategy should be determined by
leverage of target accounts we have done projects
in as well as the types of solutions.
99 add 1 country
99 add 2-3 countries
40Business DevelopmentMinimum Resource
Considerations
Americas Europe Japan 98 99 98
99 98 99 BD 2 2 2 2
1 1 Solutions Architect 3 3 2
2 1 1 Project Managers 3
3 2 1 1 1 India
Technical Scope Proposal Support 4
6 4 4 2 2 Program
Marketing 1 for Global Projects Project Managers
for each SERC on board in advance of project
start dates. India US based Project Team per
revenue targets 1998 194 1999 370
Business Development
Assumptions 1 BD/SA for every 8-10 Proposals
(Not all qualified leads make it to proposal
stage) Cupertino Marketing provides Program
Marketing Director 1 PM for every 1 small and 1
medium projects
41Example Business Development Data
- Canada Government Y2K bid
- Approximately 270 hours of presales for proposal
development - Cost about 24,000 for SERC (88 avg. HC hourly
cost) - Assume about 3X that cost for HP (field
resources, proposal marketing team, etc.) - State Farm Alliance effort
- January through March about 600 hours (Donnie,
Terry, Darryl, Mike) - Will require about another 3 months of 3 FTE for
1500 hours - Total about 2100 hours to evolve to an Alliance
over 6 months or 185,000 - Assumptions
- State Farm is a mature HP client. This effort
could double for accounts with no HP project
oriented experience (to 4000 hours) - SWEO gains experience after 3-5 Alliance
proposals and reduces costs to 3 FTE for 3 months
42Required Issues Actions
43Sales Assumptions Guidelines
- Assumptions
- Sales cycle for small and medium projects is 3
months from qualified lead through proposal
acceptance to project start date. - Alliance pre-sales is 6 months.
- Assume must complete at least 2 projects to
pursue Alliance in order to establish credibility
of performance, build relationship, and prove
value. - Guidelines
- SERC SBMs need to be able to find the balance on
project sizes - Only targeting small projects (2M range) wont
leverage India SW center. - Only targeting killer projects 6M require a
long sales cycle and higher risk if we fail to
develop a project - Best target is to start with 2-4M project size
starting points and continue to sell into the
account for the follow-on projects. - If the account doesnt have the ability to grow
to Alliance status (50 man years of
resources/year 10M of revenue/year) in three
years, dont pursue. - Note The assumptions and guidelines need to be
tested for each region.
44Sales Marketing Success Tracking Indicators
- Qualified leads - ability to get field to sell
SWEO capabilities and pull SWEO in. - Orders -ability to consistently build annuity
stream that meets or exceeds the SCALE forecast - Revenue - ability to achieve SCALE revenue
targets. Forecast assumptions 25 of order in
quarter booked 50 in 2nd quarter 25 in 3rd
quarter. - IP/Value - our value for creative solutions using
internet and emerging technologies, ability to
resource large development projects, ability to
manage down risk of using offshore resources for
TTM and implementing new technology. Our IP value
for pricing purposes should be in the 20 range. - Profit Margin - Target is 40 minimum, in
addition to the IP value. - Utilization rate - Target overall utilization
rate for project resources is 85. - Sales Cycle percentage monitoring (see following
page) - track how many contacts it takes to find
qualified customers, propose, close, and conduct
subsequent projects. See initial target
percentages on following page.)
45Issue Sales Delivery Lifecycle
- Leads - are everything. (EAO)
- Closing high is critical. (Right solution -
SBMs SAs) - Ruthlessly manage the timeframes down! (No
slop)
Avg Time in Mo. 2 1 1 1 9-12
Phase target phase-to-phase
Sales Contacts
Qualified Leads (75)
Solution Proposal/SOW (50)
Selection (90)
Delivery (100)
New Projects (90)
Negotiate (75)
100 10 4 3 1 .75 .25 50 38
19 15 14 14
12
Targets C/F Q1 Q2 Q3 Q4
Ccurrent Ffuture
- Funnel Management
- track numbers percentages
- types of projects (target segments/hit criteria?)
- size of projects
- watch for trends
46Critical Success Factors
- TEST the strategy - with field and with
customers. Are we positioned properly? Is this a
credible offer? Do customers believe we can
deliver? Will they buy from us? Is this the right
way to meet customers needs?.....etc. - Marketing and sales - focus to grow the lead
pipeline in the target market. Shorten the sales
cycle achieve repeat business - Hiring, training and retention of skilled
resources - Making the Global development approach work -
every time - Increase HP knowledge content and value
(knowledge retention increase skills) - Leverage re-use
- Developing synergies and smooth working
relationships with other HP organizations to gain
more of the services market - Careful not to get positioned as a body
shop/staff augmentation for maintenance!!!!
Mantra...we must add value.
47Critical Follow-on Actions
- SERCs
- Recruitment of SAs, PMs
- Assign focus SBMs on ASAP selling
- Become Proposal Gurus Ability to efficiently
create an incredible, credible marketing
document - Target account planning with EAO FSBU
(w/Marketing) - Systematic approach to begin reuse approaches
- Assess how SERCs can retain more revenue
- Cost tracking of Business Development
- Marketing
- Hire ASAP Program Manager
- Work with FSBU and EAO to target the top 50 and
next 50 - lead generation and account planning - Develop customer presentation
- Plan develop collateral/sales tools
- Continue work on business plan more detail
around solutions opportunities and industries.
Find the leverage points. - Teaming agreement with OSD
- India Competence Center
- Fine tune document methodologies areas of
expertise - Lead/train on technology assessments for
internet and emerging applications - Lead on identifying systematic approach for reuse
- Office of Project Management
- Knowledge Management Funnel, Proposal Project
Tracking Databases
48YIKES!! Action Timeline
SWEO Alignment
FSBU Alignment
Phase 3 TEST w/ 10
Phase 2 Field Training
Phase 1 Go-To-Market Strategies
Phase 4 Correct, launch
EAO Alignment
- SERCs assign resources hiring process
- Agree to target segments support ASAP
- Teaming agreements
- Target customers
- Develop account plan
- Plan sales training
- Draft collateral
- 1x1 training for target account reps
- Provide customer presentation
- Supporting sales tools
- Sales contacts and qualification of first 10
accounts - Feedback on message, collateral, etc.
- Program adjustments
- Launch contacts with the next 40 accounts
- Track program results
May June July Roles Marketing/Ron Marke
ting Marketing Field Field SERC/BD
E BDE BDE BDE
Marketing Marketing
49Fit with other SWEO Services
Use ASAP to form the foundation for targeted
solutions
Finance Telecom Other
- Primary target is
- Named target accounts - the SWEO target 50
50- with sales - Work strategy w/FSBU EAO
- Target clients enterprise HP accounts with a
50 man-year IT gap. - Opportunity has internet possibilities
- Leverage into
- Emerging internet opportunities
- Customer Service Delivery
- Leverage into
- Customer services via supply chain
- Financial transactions
Phase 1 - 1998 Application Services Evolve to
a solution focus? Phase 2 - 1999 CSD???
(EBanking/Comm) Phase 3 - 1999 Supply Chain???
- Customer Vendor supply chain services
Arrow direction indicates SWEO AD approach.
Dotted arows are secondary.
50Appendix of Additional, Miscellaneous Slides
- Customer Profiles
- WIP on SWEO capabilities
- Additional detail on ASAP services - customer
presentation fodder..
51Current Capabilities
Need India input
- Broad technical skill set in legacy and
distributed systems environments - Have in-depth knowledge of HP technology
- HP RD alliances
- Access to source code
- Experience in managing large software development
projects - Ability to manage distributed development
world-wide on/off-site India - Tools methodologies
- For development, migration, Y2K
- Can develop needed tools for the
environment/situation - Additional capabilities
- Have a global communications infrastructure
- Provide access to scalable resources (hundreds of
programmers)
52Amadeus Reservation System Consortium
- Situation
- IBM Transaction Processing Facility environment
(asssembly language high throughput operating
system) Migration - 2500 TPS
- 200,000 terminals over Europe managed by 2 TPF
switches protocol conversion connected to backend
systems - 200 IS personnel for maintenance
- HP - used RD extension team in India for Unix
and Network solution - Influenced RD to make changes to meet customer
requirements - 4M (loss) 18 months completed project
53State Farm
- Overview
- IT not able to meet LOB needs
- TTM on products/services - Legislative issues
- Y2K pressure - Rework-business
updates/mainenance - 4000 IT employees 7 turnover
- Post LOB research found needed 1000-1500
resources to meet needs - Tried project based work - found the start-up
time too high - Chose 4 partners IBM, HP, company in India, a
local bodyshop - Projects
- Claims Processing Systems
- Needed 130 COBOL SW developers for HP 3000
migration in 2-3 months - Closed the deal in 10 days
- Finished ahead of schedule- project ran 1996
through January 1997 - 10M revenue?
- Most profitable project to date for SWEO (50
PM) - ICAT
- Contract not signed interim order in place
- GUI onto regional claims offices PCs
- SF scrapping 6M worth of development that didnt
work
54Sarasin Bank
- Tele-banking application?
- Use object base to build 3 tier client/server?
- Offered free development thought wed make lots
of dollars - 2 year project - still going
- ?
- Environment?
Banco Bamerindus do Brasil
- Mainframe to client/server reengineering using OO
technology - No application development
- 30M? Loss? Break-even?
- Project canceled when customer ran out of money
customer didnt use change management practices.
55AllTel Information Services
- Company sells a m/f version of the Virtuoso 2
(V2) billing system for wireless services. - Current environment is a IBM m/f migrating to
HP9000 - Goal is to sell a marketable billing system WW.
- Drivers are TTM, cost and business opportunity
- Phase 1) 300K assessment complete 4/24
- Phase 2) 3.5-4M migration to be proposed on
4/24 start 5/15-6/1 - Will perform a Y2K impact analysis as part of the
project - Future strategy - propose a global version
(GPS) localization services for the billing
system toaster and maintenance.
56ALLTEL
gt20M
IT Alliance
gt10M
Virtuoso II Competency Center
SW Development Support Maintenance
6M
Migration Phase
Intl Localization RD SW Development Support Maint
enance
Business Relationship
300K
Investigative and Pilot Phase
Migration SW Development Y2K
Migration Analysis
Orders and Revenue ()
HP CO and ALLTEL Strategic Alliance
57Application Services Alliance Program (ASAP)
- Internet Integration Service Elements
- Assessment of internet and related technology for
internal, business-to-business and
consumer-to-business applications - Integration of internet and current environments
- Secure networks design
- Benefits
- Risk management in the use of emerging
technologies - Early review of emerging HP internet technologies
- Access to resources trained in the technologies
by the RD organizations - Implementation teams that support continuing HP
development on released products
58Application Services Alliance Program (ASAP)
- Platform Migration Service Elements
- Server consolidation
- Re-hosting from mainframes
- Applications redevelopment
- Benefits
- Knowledge and experience to port numerous
applications from multiple environments to HP
platforms - Performance improvements via new technology
- Improved operations
59Application Services Alliance Program (ASAP)
- Application Enhancement Services
- Software enhancements to address changing
business needs and improve operations - Software enhancements to improve operations
- Establish service level and reporting metrics
- Benefits
- Quickly address business unit needs
- Improve software operations management
- Access to resources with knowledge and experience
in all platform and environments
60Application Services Alliance Program (ASAP)
- Year 2000 Services
- Strategy Development (fix, update, replace)
- Analysis
- Conversion Pilot Tests
- Implementation Compliance testing
- Benefits
- Methodologies and tools specific to the Year 2000
problem - Ability to design tools for legacy environments
or use a chosen vendors tools - Ramp resources to the project size
- Access to large pool of COBOL resources
61Application Services Alliance Program (ASAP)
- Accelerate (the clients) benefits
- Transform information systems into a competitive
advantage - take on major initiatives and
implement strategic IS programs faster knowing
you have the knowledge and resource depth needed - Reduce the risk of integrating emerging
technologies into existing environments - Gain access to technology experts skilled in
multiple platforms, the newest development tools,
and software development quality programs - Implement a development management process that
will align and prioritize business units needs - Tap into a virtually unlimited resource that is
experienced and focused on your environment. - Go Forward Faster
62Year 2000Customer Need
- Legacy systems were not designed for full 4-digit
year representation - Systems may fail with the millennium date change
- Failures will be in
- Date arithmetic
- Date comparisons
- Sorting
- Areas affected will include
- File formats
- User interfaces (screens and reports)
- Program logic
- Examples
- Order fulfillment systems may not accept orders
beyond Y2K - Expiry date for a new credit card may set as 1900
vs. 2000, disallowing any transactions on the
expired card
63Year 2000 Methodology
Customer Site HP Site Customer
Site
Strategy Development
Analysis
Conversion
Implementation
- Existing applications data
- System Software
- Updated applications data
- Updated applications data
- Selected applications data
manual inputs
Pre-analysis Toolkit Services
Analysis Toolkit Services
Conversion Toolkit Services
- Retrofit production changes
- Change user interfaces
- Implement
- Compliance Test
Repository
Risks to the business are assessed and an
enterprise-wide Y2K strategy is evolved and
documented.
Impact Analysis Report is generated and
strategies for resolution are finalized
Application software and other related items are
changed and tested
Updated application is made to function in a
live environment
64Year 2000 Tools
- Analysis
- Scanners for languages like COBOL, C
- Repository Loader to load cross reference data -
attributes and relationships between various
objects - CASEPAC repository with extensions to support
XREF information - Special reporting tools on CASEPAC for Year 20000
inpact analysis - Provision for storing into the repository, inputs
regarding selection of date fields and
identification of changes to be made - Analyzer to determine changes to user interface
files - Load Modeule Analyzer to scan the load module and
determine the language of each component program
- Conversions
- Conversion Tool (filter) based on compiler
technology for carrying out changes to date
variables. Affected variables and the changes
will be automatically picked up from the
repository - Tools for generating file conversion programs
- Date Translation Tools for generating test data
for simulating runs in the next century - Date Simulation Tools for simulating system dates
of the next century - Data Comparator Tools for comparing data in
corresponding output and I-O files before and
after conversion
65Year 2000 Experience Tools in HP Platform
- Experience
- MPE/UNIX/IBM mainframes and AS400
- COBOL or C languages
- Over 1 million lines of code (6-8 person years of
effort minimum) - Strategic HP accounts
- MPE/iX operating systems
- Databases (IMAGE, IMAGE/SQL, ALLBASE/SQL)
- Networking products
- OpenVew client and WEB server products
- Tools
- Tools are based on parser and repository
technology which makes development of Y2K tools
for any language or platform possible - Current tools handle standard languages such as
COBOL and C with embedded SQL - Tools for HP 3000 and HP 9000
66Year 2000 Cababilities Summary
- Capability for over 5000 person-years and 1
billion lines of code - Proven methodology and processes
- Support for any date strategy
- Tool-based migration extensive tool set
including HP3000 and HP9000 expertise - Access to HPs technology groups
- Factory approach for maximum efficiency
- Value additions language conversions,
enhancements, performance tuning
Need HP projects vs. TCS
- HP - WIN Project
- HP WW Orders, Shipments and Invoices
- HP9000 HP-UX
- COBOL ORACLE SQL C PERL SHELLPJCL
- 2607 programs
- 463 datasets and flatfiles
- 550,000 LOC
- HP - OASYS Project
- Impact analysis and conversion
- HP3000 MPE COBOL VPLUS IMAGE BRW
- 88 programs, 36 datasets
- 165,000 LOC
- Insurance Project
- Impact analysis and conversion
- IBM AS/400 ILE DB2/400 COBOL
- 16 person years
67Application Services HP Channel Alignment
New development Transitioning/Migration Offshore
capabilities Inter/Intra/Extranet Year 2000
Services Retooling Support Maintenance Data
warehouse and mining Package Implementation
Management Outsourcing - any all above
SWEO SWEO PSO SWEO SWEO PSO SWEO
limited SWEO limited, PSO Partner SWEO
limited PSO SWEO OSD OSD, SWEO supporting