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Mainframe and server consolidations are a core competency. I was involved in my first large scale IT
transition when GTE Data Services (now Verizon IT) undertook the
consolidation of 12 national data centers into four standardized
facilities in 1977. Since that time I have been actively involved in
dozens of IT mergers and consolidations, some of which were the largest
and most complicated of their day.
I recently (2004) produced a white paper for a
client as a primer on consolidation methodology and practice. That paper
has since been revised (and added to) for general review and posted on my Blog site at
http://jbennetts-technology.blogspot.com/. The following
is an outline of my experience. to date.
- Bennett Group Inc. - 1995 to 2003
In 1995, KPMG disbanded their national IT
practice in favor of dependent line of business consultancies.
If it were not for this fact, I would probably still be with KPMG
(now Bearingpoint). Many of my former KPMG clients were in need of
the types of services provided by our practice, so I started the
Bennett Group Inc (BGI). In many ways, this smaller, more
nimble consultancy was more successful than the KPMG practice.
At BGI I lead consolidation studies and
implementation projects for:
- State Farm Insurance
- Food Lion merger with Kash ‘n Karry
- Prudential Insurance stage II process
improvements
- FirstStar Bank
- Zurich American Insurance
- ING Reliastar
- Bank One
- The Internal Revenue Service
State Farm represented the largest single
effort. I spent a year consulting to State Farm through IBM
Global Services. Twenty Seven regional mainframe data centers
were to be consolidated into 3 regional centers in Atlanta, Dallas
and Phoenix. I developed much of the strategic planning and
operational standardization plans.
Next in scale was the IRS project.
10 Regional centers consolidation to two national centers. I
was also engaged in year 2000 compliance for the IRS TPS systems.
- KPMG Peat Marwick, 1993 to 1995:
When I joined KPMG, I was introduced to
Big 5 consulting practices and the feasibility study aspects of
consolidation analysis, as well as consolidation planning.
The key difference with KPMG and prior
experience was the use of sophisticated cost accounting methods to
benchmark current multi-site operations and forecast the costs and
savings associated with various consolidation scenarios. My
past experience in consolidation implementation and IT operations
added value to the cost projection metrics. I, in turn,
learned the methodology used to provide clients with ROI models and
feasibility metrics.
While at KPMG I was involved with the
consolidations of:
- Citizens Insurance
- Prudential Insurance
- Weirton Steel
- Hi-Lo Markets
- Ingram Micro
- DISA (Department of Defense)
I was involved in the benchmarking of
outsourcing contracts for IBM's ISSC for:
- Hertz Corporation
- Southern Pacific Transportation
While my tenure was only about 2 1/2
years, I learned a considerable amount about managing to cost and
delivery objectives. KPMG was primarily an accounting firm
specializing in financial audits for Fortune 500 clients. Thus,
their attention to cost models and ROI projections was extremely
detailed and professional.
I was surprised to learn that many of the
Fortune 500 companies did not have a good handle on the expense and
best practice parameters of their IT operations. Often this
was
due to the considerable growth of the IT infrastructure through
mergers and IT technology advances. Periodic review,
benchmarking and a process of continued improvement is lacking in
many IT organizations that barely have the resources to keep up with
demand.
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InterFirst Bank - 1983:
InterFirst bank had two processing centers. One in Dallas the other in
Houston. I was hired specifically for my experience in the GTE
consolidations.
During the two year project I helped
establish common standards, transition plans, test plans and fallback plans.
The two data centers represented the operational profiles of two separate
banks. The Dallas data center being the primary location for InterFirst and the Houston data center being the primary location for a bank
acquired some years earlier.
I entered the software development business and had no further
consolidation experience until 1993.
- Summary
Most of these engagements included
feasibility studies and ROI projections. All included project
planning and various levels of project management. The key to
any consolidation is two fold:
1. An accurate accounting of the costs
involved with operating the current environment and the in-scope
process functions that are to be consolidated.
2. A well designed transition plan complete
with resource plans, test/acceptance plans. fallback plans, training
plans, systems management plans, etc.- these and dozens more
independent and interdependent plans are required.
Poor management of these two steps - the first
steps of feasibility and the final steps in transition - are often
the prime drivers to failed consolidations, cost overruns, invalid
ROI projections and scope creep.
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