Federal IT Shared Services Strategy - Draft for Discussion - Subject to RevisionOverview - "Shared First" is the foundational paradigm for this Federal Information Technology (IT) Shared Services Strategy, which provides Federal agencies with guidance on the identification, implementation, and operation of shared services for commodity, support, and mission IT functions. The strategy is part of IT Reform #6 ("Develop a strategy for shared services") of the 25-Point Implementation Plan to Reform Federal Information Technology Management that seeks to increase return on investment (ROI), eliminate waste and duplication, improve the effectiveness of technology solutions, and reduce costs through shared approaches to program activities. This document reflects current thinking regarding the Federal Government's approach to Shared IT Services and incorporates preliminary feedback from the Federal CIO Council, Agency Chief Architects, and Managing Partner Agencies (for existing services). It is intended as a discussion draft and will evolve based on: input from agencies as they move towards shared IT services models; additional review from across the public sector; and feedback from industry, academia, and other interested groups. The final strategy document will be released in April 2012. Please provide feedback, as relevant, to egov@omb.eop.gov with subject line of "Shared First" by January 31, 2012.A shared IT service has six architectural components: requirements, workflow, data exchange, applications, hosting, and security/privacy controls. The first five components have a hierarchical relationship, while security/privacy controls pervade all of the component areas ... Component #1: Requirements. This includes the strategic and tactical requirements for the type(s) of functionality that the service has to provide to consumers. The number and type of functional requirements depends on the type of service area, number and diversity of participating agencies, sensitivity of information and data being exchanged. Component #2: Workflow. These are the business processes that function through the shared service. The design of the process must be such that the functional requirements from Component #1 are supported. Component #3: Data Exchange. This is the part of the business process in Component #2 that involves the creation, exchange, manipulation, storage, or deletion of data and information. Component #4: Applications. This includes the software and hardware that provide the functionality and data exchange capabilities that are identified in Components #2 and #3. Component #5: Hosting. This is the infrastructure that the application(s) are hosted in. This includes cloud-based, client-server hosting solutions. Component #6: Security and Privacy. These are the various types of logical, physical, process, and personnel controls that achieve required levels of protection and risk mitigation for the shared service.Executive Office of the President of the United StatesPOTUS78901c50-230a-4997-a95e-eeaf289a484eFederal CIO CouncilAgency Chief ArchitectsShared IT servicesefe1e1dc-51be-43ca-82fe-5444a471a822To provide Federal agencies with guidance on the identification, implementation, and operation of shared services for commodity, support, and mission IT functions.161b7a63-5951-475e-aca8-961906a64596Shared FirstWherever a business process or IT function can be reasonably altered in order to utilize an existing asset as opposed to performing new development, agencies must do so. By changing the "default setting" for IT investment decisions from the development of new components to the utilization of existing resources, agencies will be able to do more with less and streamline their operations.Future FirstGiven the rapid pace of change in technology, it's not enough to just build technology solutions that meet the government's needs today. This is why the Federal CIO has launched the Future First initiative to help the government continuously architect for the future. As it stands, agency IT investments are so highly specialized and difficult to integrate with one another that it is often less expensive to acquire a new proprietary system than to share existing systems. Future First is a set of principles for agencies to consider when embarking on planning, development, and modernization efforts. OMB has identified an initial set of Future First principles, which currently include the broad adoption of XML, virtualization, and other open standards. These principles will evolve as technology advances. These new default settings for architecting IT solutions will allow investments that are made today to take advantage of opportunities that will reveal themselves in the future, while laying the groundwork for greater interoperability. By agreeing to and implementing common standards across the Federal Government, we will ensure that agency assets are prepared to share data and functionality with one another in the coming years. Each shared IT service offering must have a business and technology architecture that fits the operating model and supports new Future First Federal EA methods. There are a number of general design principles that apply to Future First architectural designs for shared IT services, including: * Multiple consumers for each service, with minimal customization; * Process standardization (commercial product/workflow adoption); * Web-based solutions with standardized application interfaces; * Object reuse, machine-readable data, and XML data formats; * Cloud-based application hosting and virtualization of servers; * Security controls and continuous monitoring of service operations; * Configuration management and version control.StandardizationShared service providers must leverage consistent standards that streamline functions across the Federal Government. This enables communication, data sharing and function use across all agencies. It eliminates the use of decentralized and inconsistent resources to create new, unique solutions throughout agencies in response to a single set of Federal requirements.VisibilityA government-wide shared services catalog helps agencies discover the wide array of available services. This enhances the potential for service integration as some agencies will develop shared services for those functions not already being provided.ReusabilityShared services harness a way to support duplicated agency functions throughout the mission areas. This reduces the potential for development and maintenance costs by using repeatable services.Platform IndependenceAgencies no longer need to worry about integrating with their current platforms in-house. Shared services providers ensure a stable infrastructure and can manage systems changes and updates within a controlled environment.ExtensibilityThe basic shared services of a provider can be used as building blocks for other services that consumer agencies need. Services can be scaled up or down, based on demand.Location TransparencyUsers of shared services access the services from anywhere within the shared service network. This increases availability and end user access to strengthen SLAs between the provider and the services consumer.ReliabilityServices provided are robust and stable with service continuity capabilities to minimize critical system outages to levels established by SLAs.Kick-StartKick-start the move to intra-agency shared IT services, while ensuring that agencies have a suite of high-quality services from which to choosea578ae20-e023-4135-8961-3f775bee34121The implementation activities for 2012 are designed to kick-start the move to intra-agency shared IT services, while ensuring that agencies have a suite of high-quality services from which to choose. Leading up to the release of the final strategy document by April 2012, by March 1, agencies will be asked to:Shared First PlanImplement a Shared First Plan.aa83925e-f243-4930-9c35-32febd204b761.1Each agency will develop a shared services plan that includes, at minimum, two commodity IT areas for migration to a shared environment by December 31, 2012, with an initial focus on consolidation at the intra-agency level.8c60e70d-55b5-4ee6-9db3-3a0e202179f2To be determinedTo be determinedLoBsAssess & Benchmark Existing Lines of Business.5f27869f-4809-456a-bfaa-d033fbc33cd31.2Each existing LoB will assess current services and develop benchmark metrics to measure quality and uptake of services provided.8c60e70d-55b5-4ee6-9db3-3a0e202179f2To be determinedTo be determinedRoadmapsDevelop Roadmaps for Modernization & Improvement of Existing Services.6b9711d6-0627-4035-8404-9c57bba5c48e1.3Each Managing Partner will develop a roadmap for improvement of existing services. Agencies and OMB will work together to monitor progress toward these goals throughout the year.8c60e70d-55b5-4ee6-9db3-3a0e202179f2To be determinedTo be determinedSegmentationSegment the approach.03f6a525-11b8-4ae0-ba96-3c4c473ffeb12Overall, the approach is segmented into the following phases:Commodity ITExpand Intra-Agency Shared Services for Commodity IT.6f652e07-91b6-471a-bcca-fa038a08efd72.1Greater mission effectiveness and cost efficiency can be achieved through the adoption of shared services. This is especially true for large agencies and sub-agencies where there may be dozen(s) of business processes that meet strategic and/or tactical requirements in a number of lines of business / programs, yet due to the current design are "stove-piped" as they serve only one consumer group in that agency. M-11-29 requires CIOs to focus on elimination, duplication, and rationalize their portfolios in these areas. Accordingly, these services are the first building block of the overall strategy to move toward shared IT services.8c60e70d-55b5-4ee6-9db3-3a0e202179f2To be determinedTo be determined Inter-Agency Shared IT ServicesLeverage Existing Efforts to Develop the Next Generation of Inter-Agency Shared IT Services.08a7473b-230d-4b0f-ab6a-ac6088cc72662.2The Shared First approach will leverage current LoBs and existing inter-agency shared IT services to develop the next generation of inter-agency shared IT services. Managing Partner agencies will be required to create and implement roadmaps for the improvement of these services. It is imperative that the LoBs be assessed and strengthened, as they will compose the base upon which future inter-agency initiatives will be built. The current phase of the strategy will focus on strengthening and expanding the LoBs and accelerating the adoption of inter-agency shared IT services across the government.8c60e70d-55b5-4ee6-9db3-3a0e202179f2To be determinedTo be determinedHigh ROI InvestmentsDrive Shared Services Delivery Through Higher ROI Investments.93297700-34a6-4c5f-8c7a-175c3a7a5cb02.3Once this broad base has been established, the government will be prepared to move along the value chain to provide both intra and inter-agency shared IT services in mission areas. While it is significantly more complex to offer these types of services on a shared basis, they also have the potential to create far greater organizational efficiencies.8c60e70d-55b5-4ee6-9db3-3a0e202179f2To be determinedTo be determinedStrategy Implementation Plan7aaa51dd-6e3d-471b-9311-ec98c92febe43The Shared IT Services Strategy implementation during the 2012 calendar year will consist of the following steps:Strategy SessionsShared IT Services Strategy Information Sessions1b6caed1-42bf-43b7-96c4-454d1734c7133.1Starting in December 2012, OMB will lead a series of information sessions to discuss the Shared IT Services Strategy in depth with agencies. Agency feedback will be solicited and used to inform development of the final strategy for release in April 2012.8c60e70d-55b5-4ee6-9db3-3a0e202179f2To be determinedTo be determinedShared EnvironmentsIdentification/Migration of Two Areas to a Shared Environment by the End of 2012.b9d59a9c-c656-4243-975e-3819d505408f3.2To kick-start the adoption of shared IT services, agencies are asked to develop a shared services plan and to identify (at minimum) two commodity IT areas for migration to an intra-agency shared service model by the end of 2012. For each candidate area, agencies should: * Determine sources of value * Assess readiness * Assess current market offerings * Address business process changes * Develop cost-benefit analyses8c60e70d-55b5-4ee6-9db3-3a0e202179f2To be determinedTo be determinedShared Service Assessment & BenchmarksManaging Partners for existing LoBs (and E-Gov Initiatives, as relevant) will prepare an assessment report for OMB of each shared service area.5e1c4ac0-95b6-4248-be59-38b5dc1e5ee43.3This assessment will focus on: * How to improve the quality of the shared service; * How to increase customer uptake (how many customers -- other agencies -- are actually subscribing to the shared service out of the total potential subscriber population)? The assessment should also discuss challenges and opportunities that the shared service area presents, such as needed adjustments to funding models, service provider issues (e.g., in-sourcing, outsourcing, cloud-first implementation, security and privacy of systems and data), and changes in customer requirements that will result in significant changes to the service. Managing Partners should incorporate customer feedback into the assessments wherever possible. The assessment should also include benchmarks to evaluate shared service provider performance. The benchmarks must be measurable, attainable and clear to all of the different partners in the shared service -- Managing Partners, suppliers and customers. Examples of potential benchmarks follow... The Shared Service Assessments are due to OMB on March 1, 2012. The assessments will also be used to inform development of the final strategy for release in April 2012. 8c60e70d-55b5-4ee6-9db3-3a0e202179f2UsageCurrent Usage (e.g., number of services offered, number of active customers in each service area, percentage of agencies using or migrating to shared IT services)To be determinedTo be determinedf5bb226d-b0f8-4497-a687-cd6a3accef55UptakeUptake (e.g., total possible number of customers, number of current customers, change in user base compared to previous quarter)To be determinedTo be determined864ba271-a0c6-42d1-9dd0-ce83883ba724SLAsService Level Agreements (e.g., target service levels, "credits" provided to consumer when SLA levels are not maintained, customization of any mission-specific performance metrics)To be determinedTo be determined8ae36089-8d0e-4b72-890f-90a98f561d20Customer SatisfactionCustomer Satisfaction (e.g., number of repeat customers to service provider, tickets/requests opened compared to time required to resolve, periodic comprehensive surveys of customers and/or end users)To be determinedTo be determined706a9b56-8760-410e-a567-9e165c9584d6CostCost (e.g., cost per service/person/transaction, industry comparative prices, cost savings/avoidance of migrating to shared solution)To be determinedTo be determinedab55c92b-8e5f-4f46-8328-90dbb6e77b2aEffectivenessEffectiveness (e.g., agency-determined areas of focus, performance level metrics, comparison of usage rates against cost, percentage or number of transfers from non-shared to shared provider)To be determinedTo be determinedImprovement RoadmapsManaging Partners will prepare a Roadmap for the modernization and improvement of existing services (Roadmap) of each shared service area.c0867c21-f828-4a2d-8df7-f8a6a10327e03.4The Roadmap should prioritize objectives and improvement initiatives for the shared service and provide a three-year detailed Plan of Action and Milestones for each of the initiatives. A high-level Analysis of Alternatives for the approach to each initiative is also to be included, such that Administration and Agency priority goals and guidance are considered (e.g., elimination of waste and duplication, trusted internet connection, cloud-first, data center consolidation, IPv6, and HSPD-12 identity management). The Roadmap should also include the plans to improve customer service and increase customer uptake that were identified through the assessment described above. The Shared Service Roadmaps are due to OMB on March 1, 2012.8c60e70d-55b5-4ee6-9db3-3a0e202179f22011-12-08http://www.cio.gov/sharedservices.pdfOwenAmburOwen.Ambur@verizon.net