IT Service Transformation for Leading US-Based Auto OEM Using LTM’s O2T Model

The client

The customer is the North America subsidiary of a global manufacturing conglomerate of worldclass automobiles, motorcycles, and power equipment.

Our Experience

LTM applied Operate to Transform framework using automation and chatbots to improve operational efficiencies. Transformation was achieved through grass-root innovations and alignment of application portfolio by means of rationalization, modernization and consolidation, delivering USD 7.5 million+benefits a year, via value additions and cost savings.

Challenges

• Complex application support portfolio with unstable applications, resulting in high volume and high severity tickets.
• Inability to support key internal projects due to lack of operations bandwidth.
• Absence of requisite application design documents, SOPs for support and code promotion standards.
• Application instability and ineffective root-cause analysis leading to downtimes and financial losses.

LTM Solution

LTM’s solution was largely based on Operate, to Transform (O2T) model, where the focus is on driving efficiencies for the client and getting more value from operations. The key building blocks of the solution are built around the 4Ds (Do Less, Do Fast, Do better, Do More) framework of O2T:

• Do Less: Improving operational efficiencies and system stabilization by effective problem management, incident elimination and automation.
• Do Fast: Improving Turn Around time (TAT) with L1.5 team introduction, SOP based resolution, IT process optimizations.
• Do Better: Improving system stability, knowledge and governance with portfolio consolidation, technical debt reduction, application documentation and business process documentation of critical applications, design thinking-led digitized governance via persona- based reporting.
• Do More: Defined processes and improved efficiencies to support projects by centralized AMS transformed into product-line IT with “One Team” concept, business process value stream and data modeling, defined and developed ~50+ processes with the client.

Business benefits

• 26%

YoY incident reduction with effective problem management and automation in just one year with 60% cumulative reduction over last five years.

• 95%

Customer satisfaction index for yearly average of 400 permanent counter measures, and 1,400 enhancements, improving application stability.

• 12%

Technical debt reduction, 24 applications consolidated and decommissioned by modernization/elimination.

• 66%

MTTR reduction with the introduction of L1.5 team for speedy resolution.

• 115

Incidents reduced, and 1,800 hours saved annually through IT process automation.

• 20+

Products working in Agile and DevOps models to create a product-line IT.