Improving Service Delivery ThroughAn Electronic Service Catalog

Kai Holthaus Director, Shared Services Governance McKesson Corporate IT

Brandy DeMarco Sr. Product Manager, IT Shared Services McKesson Corporate IT

2

Introduction

3/16/2010

3

Agenda

ITIL v3 and the Service Delivery Model

Electronic Service Catalog

Lessons Learned and Q&A

3/16/2010

Who Is McKesson?

Largest healthcare services company in the world Fortune 18 – $93 billion in revenues (FY07) More than 32,000 employees dedicated to healthcare

Oldest U.S. healthcare company Established 1833 –175

years driving innovation in healthcare

Only company offering solutions at every point of care

Deep clinical, IT and process expertise

43/16/2010

No. 1 pharmaceutical distributor in U.S., Canada and Mexico

No. 1 primary care and extended care medical-surgical supply distributor

No. 1 independent retail pharmacy franchise, Health Mart

No. 1 generic drug distributor

The Market Leader in Our Businesses

No. 1 in hospital pharmacy robotics No. 1 in care management software

and services for payors No. 1 in disease management for

Medicaid agencies Leader in clinical, revenue cycle and

resource management More “Best in KLAS” products than

any other company

McKesson Distribution Solutions

McKesson Technology Solutions

53/16/2010

6

SERVICE DELIVERY MODEL

3/16/2010

7

Service Delivery ModelOverview

Ser

vice

Por

tfol

ioS

ervi

ce C

atal

og

Service Life C

ycle

Governance

Change Management

Financial Management

Service Design & Implementation

Demand Forecasting

Capacity Management

Service Level Management

Request Fulfillment

Portfolio Management

Sunsetting

3/16/2010

Service Delivery Model:Life Cycle

8

IdeaOppor-tunity

DesignTran-sition

Oper-ations

Retired

Receive Ideas Validate Ideas Enter into Service

Portfolio

Prioritize Service Pipeline

Build Service Design Package

Business Case

Enter services into Service Catalog

Release new and changed services into production

Operate Service “Factory”

Charge customers for services

Manage Service Strategy

ManageService Sunset

3/16/2010

9

Life Cycle Process DesignProcess Flows and RACI Model

Sequence of tasks Deliverables

Clear roles and responsibilities Clear accountabilities

3/16/2010

IT Service Governance

10

Product Review Committee

Governing Board

EC

CIOCouncil

Product Review Committee:

CIT Portfolio Oversight Approve ideas

Technology Council:

Enable joint planning Recommend Opportunities

CIO Council:

Approve recommendations Prioritize initiatives

TechnologyCouncil

3/16/2010

11

Email Server

Service Catalog

Business Catalog Technical Catalog

All items in Business Catalog are made up of one or more items in Technical Catalog.

EmailService

Network Infrastructure

Server

OS

Storage

LAN

WAN

Service Components

3/16/2010

12

Service Catalog

Inventory of Services

• Inventory of all services we deliver

• Categories

Hardcopy of Catalog

• Scrubbed list of services

• Services that customers choose to order

• Served as launching pad for next step

Electronic Catalog

• Implemented service catalog system

• Allows customers to order or budget for services they need

3/16/2010

13

ELECTRONIC SERVICE CATALOG

3/16/2010

14

Why Have a Service Catalog?

Would you rather search for and fill out

7 forms…

Or push a single button?

3/16/2010

15

Effective IT transformation strategies start with a customer-focused Service Catalog, defining the relationship between IT & the Business.

The Starting Point for IT Transformation

Enhanced Visibility

Request Services

Defined Delivery

Service Catalog

A Service Catalog is a full menu of services that IT provides to its business customers, including information about service-level agreements and costs. Benefits include:

3/16/2010

16

Service Catalog

16

PortfolioCenter & DemandCenter

MyServicesConsumer

MyServicesConsumer

Demand

ServiceManager

ServiceManager

Delivery

Relationship Manager

Relationship Manager

Relationship

MyServices Executive

MyServices Executive

Portfolio

RequestCenter

End User

Fulfillment Teams

BusinessCustomer

Relationship Managers

Analytics

ServiceCatalog

3/16/2010

Numerous Data Sources

Service Portfolio

Service Catalog

Database

Asset Management

PhoneManagement

LDAP

Mainframe

Storage Management

Project Portfolio

Management

Financial Management

Email

PeopleManagement

Perform Calculations

Reporting and

Invoicing

Service Catalog

Transaction

3/16/2010

18

“I need a new cell phone!”

“My computer needs to be refreshed!”

“I need a LAN line connected to the third port in my office, a new monitor, a new headset for my VoIP phone and a new AirCard, but one that’s not USB because the USB ones stick out and snap off all the time and last time it happened I needed to get a new motherboard for my laptop too!”

“I need a network account for my new hire.”

“I need a new shared calendar for the team.”

“I need a cubicle, preferably one away from the break room.”

“When am I eligible for an upgrade?”“Who needs to approve my request?”

“Where do I send this request?”

“When do those new iPhones come out?”

I need a …

3/16/2010

19

Suzy’s manager would have to know how to order all of these items, manually on separate forms and from various places around the company:

• Facilities (Office Space)• Computer / Laptop• Desk Phone• Windows Network

Access• Email Access• File Shares• VPN Access

Suzy the “New Hire”Vice President of Some Organization

3/16/2010

20

Suzy the “New Hire”Vice President of Some Organization

Import of people data and asset management. Pre-defined “bundles” of services. Standard (and now automated) fulfillment. Role based permissions to order services, based on business and function. Clearly defined products and services that are measureable and repeatable

and “make sense” to the end user!

The Mission:

Quick, easy, one-stop-shop for all employees.

Easy to use as Amazon.com.

3/16/2010

21

The Service Catalog:

Here’s the “how” …

Service SLAs

LDAP/ PeopleManagement

Asset Management

Service Pricing

Service Descriptions Pre-populated Data

Logical Groupings of Types of People

Access Controls Automation of

Approvals Audit trails Automation of

Repeatable Processes

Sets Expectations Targeted

“Marketing” Flexibility

3/16/2010

22

Suzy Needs an Upgrade!

Suzy had to HUNT down the form online, hope that the devices on the document were still accurate, and fill it out…

Then … get signatures from her manager and her manager’s manager before she could fax the form.

And Finally … HOPE for the following: The fax went through The order was

placed The device would

arrive within 7 days

3/16/2010

23

Suzy’s Phone Upgrade Experience

Which phone should I choose?

What phone am I eligible to order?

Is there coverage in my area?

Who needs to approve this order?

What does the new phone look like? Is it a flip phone?

When will I get my phone?

How do I keep the same phone number?

What’s THAT box asking me to enter??

3/16/2010

24

Orders are transferred immediately to the vendor for processing. Orders are completed within 48 hours (typically). Cut excessive spending. Automates the gathering of required approvals, customized by the

business, device and role of the customer. Provides customers with the information to make educated decisions.

Suzy’s Phone Upgrade Experience

Now the orders go directly through the catalog. The catalog pulls information from various places:

Who is Suzy? What device does Suzy have and

what is she eligible to order? Everything else too!

3/16/2010

25

Key Success Factors

Strong executive sponsorship

Listen to your customers

Communicate, communicate,communicate

Change Leadership is important

Process first

Use technology

3/16/2010

26

Q & A

Thank You!

3/16/2010