Midagon Sweden helped Ellevio acquire the equivalents to all the IT services previously delivered from Fortum or its external suppliers.
In the spring of 2015, Ellevio, formerly Fortum Distribution, was sold to a consortium of new owners from Fortum. The sale meant that Ellevio's operations would be completely separate from Fortum by June 1, 2017, which meant, among other things, that Ellevio needed to acquire equivalents to all the IT services that were previously delivered from Fortum or its external suppliers, to continue operating its operations.
Midagon Sweden (formerly Kontract) and Copper were hired to, together with Ellevio, carry out an analysis to produce a decision basis for the procurement and introduction of new IT services and, subsequently, the implementation of these.
"Kontract and Copper, with their experience and competence, have been decisive in ensuring that the procurement assignment could be carried out with the required high quality and speed." - Jan Olsson, Manager Network & Infra Solutions
The separation of Ellevio from Fortum meant not only the need to replace existing IT services but also an opportunity for Ellevio to review and optimise them based on the new internal and external conditions. It was an important guiding light in the analysis work that focused on the following areas:
Mapping the market and identifying the appropriate supplier profile
Preparation of impact targets for the procurement and the agreement
Mapping the current situation in IT
Division and delimitation of areas in the procurement, which also included analysis of production-related IT services
Preparation of a rough plan for procurement and implementation
Proposed sourcing strategy
Proposed procurement model
The analysis was conducted through interviews, group discussions, fact-gathering and supplier meetings, which Midagon compiled into a decision document. The decision document thereby provides fact-based proposals for goals, scope and plan for implementing IT services procurement. Ellevio chose to decide according to the proposal.
The procurement work started with the establishment of projects to be able to control and ensure the quality of the procurement more clearly. The project establishment entailed the following:
Establishment of project organisation with resources from Midagon and Ellevio
Implementation of risk analysis (risk management and planning)
Development of project directives and project plan
Creation of detailed activity and time plan for the various phases of the procurement
In the planning work, a business case was also developed to make the benefits of procurement concrete in financial terms.
Governing the procurement work and its various phases was the choice of procurement model – in this case, negotiated procurement with prior advertising under LUF (Act on procurement in water, energy, transport and postal services). In the first step, a selection of suppliers was also made because Ellevio was looking for a well-established partner that was professional and mature in its organisation, its structure and its services. The main activities in the procurement were:
Production of advertisement
Advertising
Production of request documents
Selection of suppliers
Tender period
Evaluation and tender presentations
Negotiation and Due Diligence
Allocation and contract signing
The procurement was carried out as a single sourcing, i.e. an agreement was signed only with one supplier, and its scope was the areas of the data centre, communication, workplace, service desk, integration, telephony, IT consulting services with an option for production IT, system management and additional services within telephony.
To obtain valuable information about which IT services could be offered by the market and which requirements could be too cost-driving or misdirected before we sent out the request documents, we conducted a dialogue with selected suppliers. This provided substantial input to the requirements work.
Short term
A cost-effective delivery of the entire IT environment and related services
Follow-up options that make the delivery's quality and costs clear, transparent and influenceable
Long term
Increased scalability (both up and down) and change capacity
Cost-effectiveness
Correct operating level
Customer satisfaction
The procurement followed the established schedule and contracts could be signed without any review.
The establishment of the supplier and implementation of the agreement was carried out in line with the main activities below:
Preparation of project plan under the guidance of new supplier
In-depth/revised Risk and impact analysis together with the selected supplier
Transition following project plan, including tests
Development of collaboration manual
Evaluation analysis based on short-term KPIs and report
