Hampshire Constabulary IT Sourcing Strategy Steve Vercella Head

Hampshire Constabulary IT Sourcing Strategy Steve Vercella (Head of IT) & Martin Nel (IT Vendor Manager)

Policing Plan 2009 -12 Providing an excellent service Catching criminals & Active Presence in Protecting our managing offenders every neighbourhood communities Business Relationship Management Programme Management Making the most of resources Service Delivery Support Function IT Sourcing Strategy Information Management Strategy IT Infrastructure Strategy IT Vendor Management IT Architecture Strategic IT Delivery Plan (Added Value) (Commoditisation Service) IT Impact and Contribution Equipping the team

Question…. Your Previous IT Strategy: Do you know what it was? Did you understand it? Do you know what it delivered? No…. . , you have a problem with your strategy!

This is Something New…… Strategy: Introduce established commercial philosophies to align IT Technology, Resourcing and Sourcing practices to: l l Generate Significant Savings Improve Performance Increase Flexibility Underwrite strategic policing demands Transforming IT - from a technologies solution to a service solution environment Strategy is about outcomes, not technology

Historiography IT Market Developments 70 s 80 s Purchase software license & code Develop & maintain own applications 00 s Service Solution Driven Self-managed with proprietary applications Purchase Hardware 90 s Self-managed with package applications Purchase hardware External support necessary, particularly for software customisation Technology Solution Driven Single sourcing Focus on infrastructure sourcing and project based application development Multi Sourcing Disaggregation of IT in to sourcing components Increasing market standardisation & commoditisation

Inherited Legacy IT infrastructure and sourcing practices remain technology focused – a self managed applications and hardware environment The result: A failure to capitalise on two decades worth of IT market development Requires extensive and specialised internal resources to effectively maintain Dominated by proprietary application and technologies support arrangements Inflexible Complex High levels of operational risk Prohibitively costly to maintain Failure to concentrate on key competencies (Policing!)

Legacy Assessment Strategic Partners Strategic Suppliers Increasing Value - Lock-in - but high added value Opportunity to change - Unique Competence and high added value - Guaranteed Service Commitment Price / Economies of Scale - Best - Accept Responsibility / Risk - Guaranteed Service Commitment - Aligned Customer Strategic Focus - Accept Responsibility / Risk - Significant Service Improvement - Aligned Customer Strategic Focus - Significant Service Improvement Proprietary Suppliers Commodity Supplier - Opportunity to change - Lock-in £ 20 m and low added value but low added value - Best Price - Improved Service Commitment £ 26. 9 m Resources, Applications / Suppliers Resources, Apps, Suppliers Low Opportunity to Change Hardware High Opportunity to Change Increasing Savings

Can we afford not to change?

Re-engineering for change Resources Technology Sourcing

Alignment Barriers Technology: Proprietary technical solutions – inflexible & tied development or support arrangements Heterogeneous hardware and communications infrastructure Resources: Staff - too specialised or inexperienced - unwillingness to consider or embrace change - honest belief that current practices are the best! Internal Procedures & Bureaucracy Sourcing: Reactive Sourcing – the most basic and inefficient form of corporate purchasing promoting large and complex solutions and support-base No in-house commercial sourcing, contract or vendor management expertise Profile – failure to integrate and align with corporate strategic objectives

Effecting Change – Resources Alignment Increasing Value Strategic Partners Strategic Suppliers Alignment Objectives Resources Commodity Supplier Resources Low Opportunity to Change High Opportunity to Change Increasing Savings

Effecting Change – Technology Alignment Increasing Value Strategic Partners Strategic Suppliers Alignment Objectives Technology Commodity Supplier Technology Low Opportunity to Change High Opportunity to Change Increasing Savings

Effecting Change – Objective Symmetry Strategic Suppliers Resources, Technology & Sourcing Objectives Combined Our Strategy Commodity Supplier y log no ch Te Re so urc es Increasing Value Strategic Partners Sourcing Low Opportunity to Change High Opportunity to Change Increasing Savings

Change in action – Whole-life-cycle contract Increasing Value Strategic Partners Strategic Suppliers Alignment in Action – An Example Proprietary Suppliers Resources & Sourcing Commodity Suppliers Hardware Low Opportunity to Change Whole-life-cycle contract High Opportunity to Change Increasing Savings

Projected Outcomes – Network & Comms Strategic Partners Strategic Suppliers Increasing Value Strategy in action Possible Objectives – Network & Comms Proprietary Suppliers Commodity Suppliers Managed Service / Outsourced Supplier NIA – L 5 Intra-net /CSouth NIA – L 4 Xtranet & Telecom-BT NIA – L 3 SM – L 4 Low Opportunity to Change High Opportunity to Change Increasing Savings

Projected Outcomes – Applications Strategic Partners Strategic Suppliers Increasing Value Managed service solution Strategy in action Possible Objectives – Applications Altaris, Carm - Serco Commodity Suppliers RMS, Airwave, Holmes Software asset & external application management DBM – L 5 Ops & COTS applications SM – L 5 DBA – L 4 SM – L 4 Low Opportunity to Change High Opportunity to Change Increasing Savings

Effective Action Taken Achieved: • • • Whole Life Cycle (Saving £ 527 k ytd) Software Asset Management Solution (Saving £ 400 k pa) Call Management (Altaris) Network Management (Saving £ 1 m pa) IT Help Desk (Saving £ 165 k pa) Planned: • • User Support Review Open Source Potential Print Strategy Data Centre Review

Secret to unlocking this potential? Embrace modern-day IT sourcing practices, through: Right Sourcing Multiple Sourcing remains the key to delivering service improvements and savings Recognise that targeted outsourcing represents a valid “normalised” sourcing option Supply-chain focus and strategic objectives need to align with those of the Constabulary Greater acceptance and assignment of risk to the supply-chain

Maximising Benefits and Returns? Collaboration Acting Collaboratively, increased economies of scale and amalgamation of repeat service functions provides the greatest possible opportunity for the generation of highly significant savings and service improvements Collaboration needs to be a key strategy objective Will fail without Strategy Alignment between collaborative partners

Next Steps Strategy: § Agreement § Publish Strategy § Communicate: • Police Authority • Strategic Suppliers • SERIT Forces • NPIA Implementation: § Complete Outsourcing Market Review § Build Strategic Delivery Plan