This is Erik Gunvaldson, Service Program Manager for Microsoft Online. We are excited to be launching in the very near future an upgrade of Microsoft Online Services in 19 new countries and 4 new languages. As part of this upgrade, we’re introducing instant messaging and presence awareness with Office Communications Online as well as streamlined, low-cost email and collaboration with the Deskless Worker Suite. If you are interested in access to this upgrade before general availability in early April, let me know through our feedback form or the comments below.

In the spirit of this international upgrade, I wanted to share comments from GlaxoSmithKline, a recent customer who decided to standardize on Microsoft Online Services for their more-than 100,000 employees worldwide.  Below GlaxoSmithKline’s Vice President of Information Technology Strategy, Ingo Elfering, shares his experience deciding to make a platform change and provides advice for other companies considering a similar path. It is fascinating to hear this perspective from an industry leader like GSK, and a leader like Ingo who has such a significant global role in GSK’s IT organization.

- Erik

A Diverse IT Environment

GlaxoSmithKline, like many big companies today, was born of a merger in 2001 between GlaxoWelcome and SmithKline Beecham.  For us in IT, that meant a complex marriage of systems that would require some tough decisions.  Due to the investment in Notes applications supporting R&D processes, the Notes platform used by SmithKline was chosen over the Exchange platform used by Glaxo. The new Intranet, my GSK Portal, was implemented in 2001 on Plumtree Software providing a global single communications channel and B2E platform.  We used several in-house developed solutions to support Collaboration and rolled out Lotus Sametime globally.

In 2007, as part of a strategic IT Service Review, we identified several issues.  One was our ability to collaborate with external partners. Another was how effectively we were able to  support our growing markets outside of the US & UK. The final and most critical was the realization that all of these technology platforms were fast approaching ‘end of life’ or refresh scenarios that would require action and reinvestment in the next 3 years.

We decided that we needed to make a change to our systems to achieve the following:

·         Facilitate better collaboration internally and externally

·         Provide a better service and enable greater productivity for our global user community of more than 100,000 users in over 100 countries

·         Simplify the environment and move away from a culture of customized solutions

·         Decrease our operating and investment cost

Decision Process

Moving forward, a project team was established to understand, in more detail, what options we might have. We created a cross-functional team made up of representatives from the various global IT organizations, our partners in the business units and in the major growth markets. The team reviewed, in detail, what services were being offered at what service levels around the globe, how our existing technologies were used as application platforms and how the various tools worked together to create an integrated collaboration environment now and in the future. Other key questions that the team considered were: how the collaboration platform in the future would enable GSK to tap into a changing set of user profiles, devices and new software capabilities and how we could optimize opportunities to further simplify IT in other service areas.

In March 2008, the team kicked off a Request for Proposal (RFP) process to leading industry IT Vendors and in the Summer of 2008 we chose Microsoft Online Services, including Exchange Online, SharePoint Online, Office Communications Online, and Office Live Meeting for our platform.  Microsoft Online Services was selected for three main reasons:

·         Cost: With Online Services, we are able to reduce our IT operational costs by roughly 30% of what we’re spending now and introduce a variable cost subscription model for these technologies that allows us to more rapidly scale or divest our investment as necessary as we undergo a transformational change in the pharmaceutical industry

·         Voice of the Customer: Several types of user studies were conducted and confirmed the selection of Microsoft.

·         Focus:  The team needed the ability to focus internal IT on driving further innovation that differentiates GSK in the market while offloading innovation around communication and collaboration to Microsoft.  This ensures that we can focus on our core competencies and also that we have an ‘evergreen’ IT strategy where the latest technologies are always at our disposal via the cloud.

Now, the hard work begins.  Transitioning is a big challenge, so to ensure we are successful with our rollout, we’ve reorganized by bringing together all IT Services into one single team. We have started the Change Management Program and will have more details on this process as it progresses.

Lessons Learned

Through this process, we wanted to share with you what we’ve learned thus far on our journey.

• Understand the true cost of ownership of Collaboration Services – often this is more expensive than one thinks
• Understand what services are really being provided, to what service levels, where
• Understand what the customer really wants and what their real pain points are
• Be clear about the long-term business strategy  and what impact it will have to IT
• Understand the user (what functionality is really being used and how) and provide services that meet that need rather than deploying more than what is actually needed
• Consider the complexity of the IT environment and how one can implement strategic levers to reduce that complexity
• Be realistic about what to migrate and what not to migrate
• Don’t underestimate the commitment to Business Change Management
• Set up for organizational success and create the right team, sponsorship and leadership
• Explore the opportunities and innovations that a change enables one to make in neighboring areas in IT and the business
• Consider how one can accelerate the innovation one can bring to the customers now and in the future

Ingo Elfering

VP of Information Technology Strategy

GlaxoSmithKline