Show Me The Money. Making a Case for Service Management Chris Morris Director, Services Asia Pacific

Transcription

1 Show Me The Money Making a Case for Service Management Chris Morris Director, Services Asia Pacific Copyright 2008 IDC Reproduction is forbidden unless authorized. All rights reserved.

2 Agenda IT and the Fourth Imperative Making the Case for IT Service Management Essential Guidance 2008 IDC 2

3 IDC Prediction #6: ITILv3 & performance-based pricing will continue to drive convergence of business & IT services Specific ITIL Processes Adopted by Country 73% of respondents to IDC surveys across countries such as Australia, Korea, China, and India indicated that they had adopted ITIL in some form. The expectation from the end user is that this convergence will result in IT projects that are more business-outcome oriented Source: IDC, IDC 3

4 The Fourth IT Imperative Since the beginning of commercial use of computing equipment, the roles of IT management have been shaped by 3 fundamental do-or-die imperatives: 1. Keep it up; 2. Keep it safe; and 3. Keep it cheap. The advent of the dynamic IT era in business has added a fourth imperative: 4. Keep it effective. This fourth imperative challenges IT management & support organizations to focus on their users business processes rather than on IT assets IDC 4

5 Future CIO Focus Driving Investment in Service Management Technologies and Management Disciplines Showing Highest Projected Change in Use, High priority activities require: High levels of integration High service levels Service based pricing New delivery models Source: IDC Australia and New Zealand's 2007 Forecast for Management Survey 2008 IDC 5

6 CIO Priorities Today: Key Performance Indicators Asia/Pacific CIO Poll: What are the top 3 leading KPIs (key performance indicators) that shape your role? 100% Transforming IT Growing IT Running IT 90% 80% 70% 60% 50% 40% 30% 20% 10% Strategy formulation Innovation Leveraging IT to achieve bus. goals Revenue target Attracting & retaining talent IT vendor/supplier/partner mgt External customer satisfaction Internal customer satisfaction Effectively supporting LOB Budget management On-time project completion 0% Aust & NZ INDIA CN TW,SG,KR Other ASEAN 2008 IDC 6 Source: IDC AP CIO Surveys (March 2008) N=219

7 Fueling The Transformation: Aligning IT With Lob Goals Aligning IT with LOB goals Running IT Supporting Business Processes Running The Business Growing IT Meeting Business Goals Growing The Business Transforming IT Driving Business Revenue & Profitability Transforming The Business CIO priorities moving forward: GREATER TRANSFORMATION 2008 IDC 7

8 Making the Case for ITSM: The CIO Challenge the bulk of the IT application issues are, unfortunately, uncovered We by need our investment Business Teams business prioritised in the business users - who are often NOT a happy group. We would like to be more proactive in strategy context detecting and monitoring these performance problems before complaints We need come systems from that them. -- Financial CIOs on their contact centres deliver value to the Technology-driven IT The IT business business within a defined We investment, understand delivery that there is a lot of sharing of services in our enterprise services value gap time today. conversations We have been scaling up on our quality in enterprise applications uptime and response but really need insights into degradation before problems become unmanageable. -- Telcos CIOs We need clear direction from Our organizations are focused on SOA and ITIL-based practices, strategy However, from an implementation perspective, we are finding it hard to break We down need the a collaborative silos from a approach to business change quality and IT operation perspective. IT Organisation -- Government CIOs on their e-government services. Increasing layers of legacy technology, applications and systems Governing future service quality and performance is difficult..but it is possible business about focus & Increasingly complex investment and sourcing landscape Closing the gap is aggravated by IT dialogue that is technology-focused 2008 IDC 8

9 ITSM Status, YE % of IT Organizations plan to deploy a BSM Solution within the next 12 months. A total of 15% correlate 50% or more of their IT events to business problems 2008 IDC 9

10 ITSM: High Priority Investment Areas Generally speaking, how important is an IT management solution to your organization? 100% 90% 80% 70% 60% 50% 40% 30% 20% Don't know 5 - Extremely important % 2 0% 1 - Not important at all Australia/NZ China Hong Kong Indonesia Korea Malaysia Singapore Thailand Vietnam Country Source: IDC IT Services Survey, IDC 10

11 ITSM Focal Points IT Process Workflow Automation Business Application Management Service Desk Availability N=78 Source: IDC, Business Service Management 2007: Survey Shows Rising Customer Adoption and Increasing Maturity, # IDC 11

12 Budget Considerations: Australia IT Spend Forecast Scenarios With China as its fastest growing export destination, the Australia market is expected to do well & lead to a continual focus on large IT transformation projects among businesses, unless China economy weakens There could be some negative impact from the lingering effect from the US although historically there has bee a low correlation between the 2 economies The government released its inflation-control strategy on March 3rd, with proposed reduction in public sector spending to ease inflationary pressures 35 IT Spending Forecast, Billion USD (Constant 2007 Dollars) $19.7 $22.3 $22.6 $27.9 $27.9 vq Prelim adjusted 2007 exch vq Prelim Mild recession Longer recession 2008 IDC 12 $ Source: IDC IT Spending & User Segmentations, March % Delta % A$ strengthened from 2006 to 2007

13 Finding the Money Running the Business: Maintain the status quo Infrastructure maintenance & support 45% Utility 25% Enhancements 20% Growing the Business New Apps 10% Drive the future Transforming the Business The lack of lifecycle integration between development and operations continues to drive costs up and operational service quality down IDC 13

14 One of Many Standards, But ITIL Takes the Headlines There are many different frameworks that offer different perspectives on aspects of IT Each serves the needs of a different audience While the trend is towards Convergence Today, organizations must integrate best practices from multiple sources into their management system 2008 IDC 14

15 ITIL and Best Practices: Where is the Business Case? If Exec Management has bought in to ITIL, you don t need a business case. If Exec Management hasn t bought in, an ITIL project itself does not deliver a business case: It doesn t display cost/benefit It doesn t prove headcount reduction It doesn t provide additional revenue the opposite in fact: Cost intensive Time intensive 2008 IDC 15

16 Some Inconvenient ITIL Truths Many service management strategies (e.g. ITIL) require additional work by new resources with different skill sets More work for same output Additional resources need training Lost resources take knowledge with them Many ITSM strategies require planning and large, supporting migration strategies Staff with planning skills are scarce Parallel systems often needed additional support Many ITSM strategies include a new support model that requires additional ongoing resources 2008 IDC 16

17 Best Practices is Good But Effective Execution is Better Having access to the right people is essential for any ITSM project, and they have to work cross-silo and cross-business People Skill requirements Roles, teams and functions Performance indicators Job descriptions Resource acquisition Staffing levels Staff training Training curriculum Process Technology and information requirements Policies and governance Process design Detailed workflows Workflow implementation Procedures Information Information requirements Data model Information flows Interfaces and integration Measurements Reports Technology Tool requirements ITSM architecture Tool installation Tool evaluation and selection Customization and integration Development environments Deployment Testing 2008 IDC 17

18 ITSM Implementation: Skilled Help Needed Did a third-party organization help with the implementation of your IT management solution? 100% 80% Don't know/ Not applicable - Do not deploy ITSM 60% None of these - all work done inhouse 40% Manage the solution: includes operations, asset Management Support the solution: includes on/offsite support, maintenance 20% Implement the solution : includes installation, configuration 0% Plan the solution implementation: includes planning, assessment Australia/NZ China Hong Kong Indonesia Korea Malaysia Singapore Thailand Vietnam Country Source: IDC IT Services Survey, IDC 18

19 Collaboration is Critical Successful service management depends on collaboration. Break down the legacy silos Drive collaboration across your organization Drive collaboration across disciplines Service management is complex and requires the collaboration of teams across domains 2008 IDC 19

20 Essential Guidance There is no business case for ITSM unless business goals are aligned with IT project goals Collaboration with and within an organisation is mandatory Buying an ITSM tool and not a solution will not deliver business value Using a skill-rich implementation partner will become commonplace Target the four key sources of business value: Improved IT Productivity Accelerated time to market for new apps Automated IT audit and compliance Improved uptime and quality Target the areas with most impact first change management, IT process automation Mature markets such as Australia and New Zealand demand comprehensive solutions based on best practices underpinned by deep expertise 2008 IDC 20

21 Thank You Please me at 2008 IDC 21