Case Study
IT Ecosystem/Digital Business Transformation
Overview
American Fortune 500 electric and natural gas utility generating $9BN of revenue whilst serving several markets in the American states of Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas.
Problem
- Operating Cost continued to grow even though the IT Infrastructure remained static
- Lack of standardized infrastructure, automation, and cloud enablement
- IT focused on day-to-day delivery of IBM run infrastructure
- No standard processes aligned with ITIL/ITSM or Automated tasks
- Requirement to innovate at the “edge” with IOT solutions for field engineers
- IT Ecosystem was fragmented with a number of duplicate initiatives
- NO Measurable Business Outcomes
Action
- Developed a Run Rate Analysis - identified $30M/annum run rate savings
- Assessed IT Ecosystem Options (Deloitte, ServiceNow, Mobius, SAP, HPE, IBM)
- Created and Managed a “Path to Value” based on measurable savings and outcomes
- Aligned IT Ecosystem with Cloud Options in the “Path to Value”
- Designed a Hybrid Cloud Operating Model and Security Segmentation
- Created an Executable program, governance structure, and communication forum
- Provided the leadership to execute the programs to completion
Outcome
- Consolidated 2 Primary Data Centers with Security Segmentation and Business Continuity
- Accelerated Automation of Process and Service operating models with IT Partners
- Achieved annual operational savings of $40M in year 1 increasing cost avoidance by $50M
- Created a 4-year road map with funding and growth targets:
- IT Ecosystem (Deloitte, ServiceNow, Mobius, SAP, HPE, IBM)
- IT Ecosystem Optimization (TCO, Quarterly Value, O&M reduction)
- Path to Value ($120M of O&M savings in 4 years)
- Discovery and Rationalization of Applications (HPE)
- Analysis of Hybrid Cloud Capable Applications (HPE)
- 34% reduction is servers, 45% reduction in storage
- Automation and AI Requirements (Mobius Consulting)
- Data Center Segmentation
- Migration of Microsoft Applications to the Cloud (Microsoft)
- “As a Service” IT Service Model (ITIL, ITSM) for Hybrid Cloud