Volvo Information Technology Global IT-Service Provider

1. Volvo Information TechnologyGlobal IT-Service Provider Final Report, Summary Gothenburg, May 24, 2004 Lena.Nordqvist@volvo.com Marius.Pascalau@profaber.com

2. The Purpose with Today • Present the proposal • Discuss the role-definitions for phase 1

3. Agenda • Background and Deliverables • Action Plan • Customer Interaction Model • Global Service Delivery Model • Phase 1: BITE2 CID-C Project Rollout • Phase 2: Handover to a Global I&O Line Organization • Further Recommendations • Next Steps

4. Background • The CID-C project will migrate all AB Volvo PC's to Bite2 in 2004-2005 • The Bite2 desktop service is defined uniquely by each BA/BU, but the underlying infrastructure will to the most extent be common • Each BA/BU expect their service will be globally provided with the same service definitions and the same pricing principles • A complete desktop service includes a number of GFS products - client, applications, storage, support, LAN/WAN and possibly some more • In order to provide this new desktop service on a global BA/BU basis we need to establish a Bite2 Service delivery organization structure that has the mandate and authority to coordinate the complete supply organization globally for a specific customer (Directive by Hans Orrheim, Volvo Information Technology AB)

5. Deliverables • Define a Service delivery responsibility matrix covering all BA/BU's and all Volvo IT data centers, based on an • appointed Customer Service Manager role for each customer and • appointed contact role within the supply organization • Proposed way of interacting with the customer • Document issues and questions to be studied and resolved at a next phase • The responsibility matrix will be handed over to the supply organization for implementation • Input and prerequisites • Use the ITIL model and nomenclature • If possible, take advantage from the Global operations study ideas. • Use the CSM role definition (Directive by Hans Orrheim, Volvo Information Technology AB)

6. Agenda • Background and Deliverables • Action Plan • Customer Interaction Model • Global Service Delivery Model • Phase 1: BITE2 CID-C Project Rollout • Phase 2: Handover to a Global I&O Line Organization • Further Recommendations • Next Steps

7. Action Plan Phases Phase 1: BITE2 CID-C Project Rollout Focus on project roll-out and existing premises • Customer interface model applied • Service Delivery global coordination • Adapt for handover to a Global I&O Line Organization Phase 2: Handover to Global I&O Line Organization Focus on efficiency, effectiveness and competitive advantage • Global product-lines coordinated by global processes • Align to business needs of global customers • Implement the organizational change

8. Agenda • Background and Deliverables • Action Plan • Customer Interaction Model • Global Service Delivery • Phase 1: BITE2 CID-C Project Rollout • Phase 2: Handover to a Global I&O Line Organization • Further Recommendations • Next Steps

9. Strategy Management Guidelines, Functional Requirements People & Org IT Gov Processes Planning & Design Generic Agreement Corporate SLA Application Dev SLA GAM SAM GCSM CIO Tools Contract Negotiation Global IT Service Mgmt Processes Specific Agreement BA/BU SLA OLA OLA OLA BA/BU Buying Center Team BA/BU IS/IT Director AM CSM SLA Service Operations Management Team Support & Oper GDO Win GDO … Design & Planning Contract Monitoring & Management (run-time) BA/BU Contract Monitoring Manager BA/BU Contract Monitoring Team AM CSM SOM IT-Services Demand Marketing, Sales, Service Delivery Phase 1 Phase 2 Customer Interaction Model Corporate Buying Center Team Global I&O Line Org Supply

10. Customer Interaction Model Principles and prerequisites: • The model shall be general, not BITE-specific • The customer interface shall not change when migrating to Phase 2 • Focus on the day-to-day relationship with the customer • The Marketing, Sales and Delivery of services shall be independent from where the service is produced • Liaise with customers about high-level model and principles • Sign framework corporate agreements with customers when possible • The BA/BU shall base suborders on corporate agreements • Develop and use the Volvo IT Global Services Catalogue • The external (customer) Services Catalogue shall be aligned to the internal service and product descriptions, standards and norms • Offer service content diversity and modularity, but few Service Levels • A Global Service Delivery is required to front the customers globally • A Global I&O Line organization, based on global product-lines and global processes is needed to handover the project outputs, when finished

11. Customer Main Contact Site Customer Main Contact Site (definition): • The customer headquarters location or the location where the customer has located its senior management team (for a BU), including the CIOor A location “appointed” by the customer senior management team • Volvo IT (the supplier) usually places the GAM and GCSM for respective customer at the Customer Main Contact Site or a Volvo IT location nearest possible.

12. Agenda • Background and Deliverables • Action Plan • Customer Interaction Model • Global Service Delivery Model • Phase 1: BITE2 CID-C Project Rollout • Phase 2: Handover to a Global I&O Line Organization • Further Recommendations • Next Steps

13. Global Service Delivery Model Global Service Delivery • Phase 1: Global Service Delivery cross-regional team (virtual) • Phase 2: Global Service Delivery line organization (based on Global OP study) • The proposed front-stage roles and responsibilities are created from the beginning (Phase 1) • Smooth transition to the line organization (Phase 2) • The customers shall not be affected by the transition to Phase 2 Service Operations Management (Runtime) Delivery Office (Projects) Customer Service Management

14. Customer, Service and Product Perspective • The service perspective (SLA) is broken down to service components or products (OLA) to be produced by the Global I&O Line Organization Customer (Business) Perspective Service Perspective Product Perspective Volvo IT Global I&O Line Organization Customer Customer Service Management SLA OLA Contract Service Operations Management SP SP SLA SP BTF BTF BTF

15. Roles in Global Service Delivery • Customer Service Manager • Assigned per customer, globally handles all day-to-day issues related to the services the customer has signed for (SLA), acting as the ‘ambassador’ of the customer within the supply organization • Service Operations Manager • Assigned per service, globally guarantee delivery of the service according to SLAs by coordinating and resolving issues related to the products that make up a service (through OLAs) from the operational, availability and quality perspective, on a day-to-day basis • Delivery Office Project Manager / Coordinator • Handles all once-time issues and projects

16. Customer Service Manager (summary) • Take part in negotiations, agreement and maintenance of the Customer Service Level Agreements together with the GAM/AM • Make sure customer demands are understood within the Volvo IT • Follow up that deliveries meet agreed customer demands for functionality, quality, security, efficiency • Negotiates and agrees with the Service Area Manager (SAM) and the Service Operations Manager any Service Level Requirements for any proposed new/developing services • Work actively to find and drive new business cases within the customers’ organization and keep the GAM/AM informed about these potential business cases to increase and add value to customer business • Analyses and reviews service performance against the SLAs • Initiates any actions required to maintain or improve service levels • Take active part in optimizing cost for operations & support of global services

17. Service Operations Manager (summary) • Responsible, during the whole service lifecycle, for achieving and improving the availability and overall quality targets for the assigned service (composed of different products deliverable to services) • Create and maintains a Service Delivery Plan for the assigned service, containing the details related to improving short and long-term operational, availability and quality aspects • Coordinates the global product-line organizations, that deliver products deliverable to services to the assigned service, in reaching and improving the operational, availability and quality parameters that affect the assigned service • “Negotiates”, agrees and maintains the Operational Level Agreements (OLAs) with the global product-line organizations • Analyses and reviews service performance and individual product performance against the OLAs with the global product-line organizations • Take part in optimizing cost for operations & support of global service • Produces regular reports on service performance and achievement to the Customer Service Managers and Global I&O Line Organization at an appropriate level and initiates Service Improvement Programmes

18. Agenda • Background and Deliverables • Action Plan • Customer Interaction Model • Global Service Delivery Model • Phase 1: BITE2 CID-C Project Rollout • Phase 2: Handover to a Global I&O Line Organization • Further Recommendations • Next Steps

19. Global Service Delivery Model Customer (Business) Perspective Service Perspective Product Perspective Volvo IT Global I&O Line Organization Customer Service Management Service Operations Management • The proposed roles and responsibilities are created in phase 1: • Customer Service ManagerAssigned per customer, globally handles all day-to-day issues related to the services the customer has signed for (SLA), acting as the ‘ambassador’ of the customer within the supply organization • Service Operations Manager = Desktop Operations ManagerAssigned per service, globally guarantee delivery of the service according to SLA by coordinating and resolving issues related to the products that make up a service (through OLAs) from the operational, availability and quality perspective, on a day-to-day basis

20. Roles and responsibilities – phase 1 Customer (Business) Perspective Service Perspective Product Perspective Customer Service Manager per BA/BU Desktop Operations Management Role 1: Customer Service Manager Role 2: Desktop Operations Manager For a BITE environment to work as efficient and smooth as possible globally, the Desktop service needs to be coordinated between all affected Data Centers • For a BITE environment to work as business driven as possible from a BA/BU perspective,the Desktop service needs to be coordinated between the customer and the supplier • For small BUs the role can be carried by the assigned AM or a CSM can handle more than one BA/Bu for smaller companies For a BITE environment to work as efficient and smooth as possible on a site, the Desktop service needs to be coordinated between all affected productsper site

21. Virtual teams – phase 1 Global Service Delivery for Desktop GAM/AM CSM per BA/BU Site-coordinators migration PAM Client Located at Customer Main Contact Site for BA/BU Desktop Operations Management Customer Service management Delivery Office One-Time coordination coordination … DC1 DC2 DC3 DC4 DC14 • This role globally guarantees delivery of the service according to SLA by coordinating issues related to the service from operational, • availability and quality perspective. • Case by case the role of • the Desktop Operations Mgr • can be carried by one of • the DC Desktop Operations Mgrs. Desktop Operations Management Client Storage Op&Support LAN/WAN

22. Service Delivery responsibility distribution Customer Service Manager per BA/BU GAM/AM Desktop Operations Mgmt Only examples of names!

23. Service Delivery responsibility matrix – Data Center responsibility distribution coordination Only examples of names!

24. Phase 1: BITE2 CID-C Supply Support Rollout Roles are established for Global Customer Service Manager and Desktop Operations Manager and people are assigned to roles - then • Supply organization are being prepared through • Global Customer Service Managers taking part in BA/BU project • Desktop Operations Managers taking part in Site-coordination projects • SLA and OLA are being established • CSM and DOM will take part – driven by GAM/AM • Supply organization ready to deliver according to agreed BA/BU-specific SLAs • Volvo IT is responsible for the customer (through the Global Service Delivery) even when the service is sourced from a third party • CSM and SOM will be part of Global Service Delivery function in phase 2 when the Global I&O Line Organization will be established

25. Agenda • Background and Deliverables • Action Plan • Customer Interaction Model • Global Service Delivery Model • Phase 1: BITE2 CID-C Project Rollout • Phase 2: Handover to a Global I&O Line Organization • Further Recommendations • Next Steps

26. Proposed Global I&O Line Organization Model Global Service Delivery (line organization) Roles Customer Service Manager [Customer] Service Operations Management (Runtime) Delivery Office (Projects) Customer Service Management Service Operations Manager [Service] GDO Supp & Oper GDO Win GDO Stor GDO Comm GDO … Project Manager / Coordinator Service Operations Manager BITE Product Area Manager GDO [Product] Service Operations Manager … Global Process Manager Incident Manager Problem Manager Change Manager Availability Manager Capacity Planning Manager … Coordination Point Global IT Service Management Processes

27. Agenda • Background and Deliverables • Action Plan • Customer Interaction Model • Global Service Delivery Model • Phase 1: BITE2 CID-C Project Rollout • Phase 2: Handover to a Global I&O Line Organization • Further Recommendations • Next Steps

28. Further recommendations Phase 1: • Set up OLA-structure (internal agreements) to secure deliveries in line with BA/BU - to be defined by Global Desktop Operation Mgr and the team of DOMs • Implement mandatory processes, methods, routines etc • How to secure global problem handling … • How to optimise operation … • How to coordinate global changes • How to treat 3rd parties … • How to maint the BTF ….. • Define communication scenario between Customer Service Managersand between CSMs and adjacent roles • Define communication scenario between Desktop Operations Managersand between DOMs and adjacent roles • Sort out roles and responsibilities for Product Maintenance and Second Level Support between Desktop Council and Volvo IT – to be defined by CID-C • Organization for Product Maintenance and Second Level Support - to be defined by Phase 2-project

29. Agenda • Background and Deliverables • Action Plan • Customer Interaction Model • Global Service Delivery Model • Phase 1: BITE2 CID-C Project Rollout • Phase 2: Handover to a Global I&O Line Organization • Further Recommendations • Next Steps

30. Next Steps • Decision regarding CSM-role and Customer Interaction model • Appoint team-leader Global CSM team • Appoint CSM for each BA/BU • Appoint Customer Main Contact Site for each BA/BU • Appoint Desktop Operations Manager for each Data-Center • Appoint Global Desktop Operations Manager • The appointed Customer Service Mgrs and the Desktop Operations Mgrs take part in ongoing project • Each ROC implement other site-specific organizational changes • Handover of result from study to phase 2

31. Discussion!

32. Extra material Some of the interviews • Thomas Klahr • Dave Geiger, Travis Kelley • Christine Hamel • Patrick Eduards • Thomas Buskas, Staffan Bjurek • Hans Orrheim • Jean-Dominique Faure • Christina Eide • Mikael Wärnås, Bo Thidell • Björn Österborg • Margaretha Westesson • Tomas Svensson, Anders Åkerström • Karl-Simon Ohlsson, Tobias Larsson • Carina Björklund, Karin Magnusson • Peter Fransson • Anders Wester • Jan Axelsson • Lena Bengtsson, Fredrik Blimark, Fredrik Påls, Anna Jonsson, Magnus Olsson • Eva Nilsson

33. SAM Responsibilities: Detect and identify what the market and the customer needs, and that can be developed into a service, providing revenue and profit for Volvo IT For a service or a family of services, be responsible for and controlling the lifecycle from bringing a service to the market, to managing it (and finally terminating it), together with other Volvo IT roles as SOM, product managers, AM, external providers Manages the service line development programme and roadmap Pricing the service and specify what research is needed to obtain market information Assess market and market competition Obtain and build market share by working with the AM to build sales strategies Recommends service packaging and changes Recommends about the scope and nature of present and future service lines by developing new service ideas Prepare short- and long-term sales forecasts and special reports and analysis Provides ground data for service-line communications by defining marketing communications objectives Coordinate with the SOM in producing the Service Delivery Plan SOM Responsibilities: Responsible, during the whole service lifecycle, for achieving and improving the availability and overall quality targets for the assigned service (composed of different products deliverable to services) Create and maintains, together with the SAM, a Service Delivery Plan for the assigned service, containing the details related to improving short and long-term operational, availability and quality aspects Coordinates the global product-line organizations, that deliver products deliverable to services to the assigned service, in reaching and improving the operational, availability and quality parameters that affect the assigned service “Negotiates”, agrees and maintains the Operational Level Agreements (OLAs) with the global product-line organizations Analyses and reviews service performance and individual product performance against the OLAs with the global product-line organizations Take part in optimizing cost for operations & support of global service Produces regular reports on service performance and achievement to the Customer Service Managers and Global I&O Line Organization at an appropriate level and initiates Service Improvement Programmes Extra material SAM and SOM Roles Compared

34. CSM Responsibilities: Focus on the continuous process of delivery of services as agreed through SLAs Analyses and reviews service performance against the SLAs with customer’s Contract Monitoring Manager Take part in negotiations, agreement and maintenance of the Customer Service Level Agreements together with the GAM/AM Make sure customer demands are understood within the Volvo IT Negotiates and agrees with the Service Area Manager (SAM) and the Service Operations Manager any Service Level Requirements for any proposed new/developing services Work actively to find and drive new business cases within the customers’ organization and keep the GAM/AM informed about these potential business cases to increase customer business Initiates any actions required to maintain or improve service levels Take active part in optimizing cost for operations & support of global services AM Responsibilities: Focus on providing leadership to sales and revenue growth within assigned account Do direct sales and interface to (enhance) other specialist sales Direct of other Volvo IT specialized resources assigned to account (ex. CSM, project managers, etc.) Develop account business plans to meet or exceed sales Identify new business opportunities based on sound business cases, that will enhance the customer business value of Volvo IT services and products Manage contact interface between Volvo IT and customer (product specialists, new solutions, corporate contact) Interface with key customer executives If possible, try to establish the customer account as a Reference Account Know the whole Volvo IT offerings regarding products and services Follow-up regularly with customer the Volvo IT overall performance within assigned account Extra material CSM and AM Roles Compared

35. Extra material Delivery Office Project Manager (detail) • Responsible for coordinating the process of making the Volvo IT organization ready to deliver a new service or making effective any changes to a currently delivered service • Works with the Design and Planning in coordinating the rollout of projects • Works on a project basis with the deployment of new infrastructure required for new services or changes to these (IDP process) • Works with the Service Operations Managers and Customer Service Managers in services rollout/changes • Coordinates with Change Management and Configuration Management regarding deployment of new infrastructure • Responsible for testing of the new service/infrastructure before delivering it to customer and overall quality of the service • Assures that SLAs, OLAs, all requirements, standards, documentation, (internal and external) are followed after • Handover to the Service Operations Manager the service when the functional and quality aspects are met