How to Drive Business Value with Capacity Management

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1 How to Drive Business Value with Capacity Management 18 July 2017

2 Your Presenter Jim Smith

3 The Building Blocks Executive Buy-in Benefits realization Assessment Roles and responsibilities Strategy Toolset exploitation Charge/Show Back model Demand Management Reporting

4 Assessment Feedback Maturity Level GAP Analysis Roadmap RACI Balance Strategy & Operations Toolset Exploitation Cost Avoidance & Benefits

5 IT Service Optimization People Process Chaotic Reactive Proactive Service Value Tools Input Data Analytics Decision support Output Discover and manage Analyze and transform Contextualize to influence

6 IT Maturity Questions

7 Actual Maturity Level 53% Actually assess at the Chaotic Level 42% Believe they are at the Service Level

8 Each step along the way represents increased business value Where are you? Investment made in People, Process, Technology Use Introducing the Gartner IT Infrastructure and Operations Maturity Model (G ) for guidance 5 Business Partner: Business Capacity Planning Service Aligned: IT Service Capacity Planning 4 3 Proactive: Resource Capacity Planning Committed: Historical Analysis 2 1 Reactive: Real-Time Monitoring Chaos: Clueless 0

9 Defining a Capacity Management Roadmap

10 GAP Analysis Value of capacity management questioned Communications within teams not aligned Capacity processes not documented Scope of capacity management not fully understood Capacity policy not supported by all concerned parties Roles and responsibilities (RACI) not created No visibility of future infrastructure (demand) No standardized format / template for monthly reporting No analysis from monthly capacity reports No virtual team established (capacity champions) Teams bypassing capacity management processes Weak CMDB (configuration management database) OLAs not aligned to capacity management

11 Roadmap Assessment of policies, processes, and SLAs Reporting at various levels Planning and strategy Cost avoidance Demand Management Continuous Service Improvement Review current reports Establish virtual operational team Identify all data sources RACI based upon policy and processes Review SLA/OLA with service providers Presentation to stakeholders Create capacity dashboard Amend monthly capacity reports Validate data from service providers Identify gaps in reporting Review events, incidents etc. Exploit toolsets in environments Mature reporting Address risk assessment Create capacity plan (Ops & Strategic) Assess reliability and availability improvements Understand sources of capacity demand Create a draft demand calendar Align planning and operational growth Review cost savings initiatives Backup strategy Archiving/data solutions Storage reclamation Review all POCs and clean up Virtualization targets Consolidation targets Gather and analyze infrastructure demand Create visibility of project demand Attach cost to infrastructure required Re-assess progress Re-position Roadmap creation Communication of yearly achievements Review capacity plan Timeframes are dependent on resources allocated and priorities attached to each subset.

12 Timeline Assessment Assessment of maturity of capacity management processes and review or create policies, SLAs, & OLAs Q1 Q1 Establish and contract a virtual team across company People Reporting Define reports and dashboards for capacity management Q2 Review existing toolsets, data source validation, and address gaps Q2 STRATEGY Create demand calendar. ensure alignment with ITIL. Review/create Forums capacity risk management report forum Q3 Q4 Cost avoidance strategy and benefits realization. Create a capacity plan.

13 Toolset Exploitation Capacity Planner Environments Services Reporting Evaluation Criteria Projects Demand calendar Architecture designs Unknown demand Trends Thresholds Reduce timeframes Improve availability Networks Mainframe Open Systems Storage Databases EUC Datacentre Thresholds Configuration Alerting SLAs Availability Monitoring Licensing Monthly capacity reports Risk Licensing Cloud Incidents Monitoring Trending Manager of managers Infrastructure monitoring Off-shelf application plugins Availability reporting Service level management Integration with service desk Custom agents for integration and applications

14 Toolset Drives Maturity Chaotic Reactive Proactive Service Value Driver Data Analytics Decision support Identify and manage Analyze and transform Contextualize to influence

15 Evaluate future resource requirements Modelling and Analysis Phase Evaluate Current Usage Evaluate Capacity Utilisation Collect Capacity Data Data Collection RACI 17Identify capacity metrics for collection A R C I I I I I I I I I I I I 18Identify if appropriate tools are available for these metrics A R C I I I I I I I I I I 19Motivate/Procure and obtain approval for respective tools A R C I C C C C C C C C C C 20Maintain tools and procedures A R 21Run data collection and monitor metrics A R 22Validate data collection A R R 23Summarise historic data A R I I I I I I I I I 24Define monitoring and reporting guidelines A R I I I I I I I I I I I I I 25Report on capacity and performance A R R I I I I I I I I I I I 26 Analyse current system data and reports A R R C C C C C C C C 26Conduct and attend capacity risk forum A R R I I I I I I R R R R R R R 27Identify and resolve capacity issues/risks A R R I I C C C R R R R R R R 28 Communicate to service level management A R I I I I I I I I I I I I I 29Gather an collect baseline data A R R C C C C C C C C 30Apply calibration (if applicable) A R 31Analyse baseline data for relevant peak periods A R 32Apply legacy and seasonal growth to baseline A R 33 Apply new initiative requirements to baseline A R 34Verify growth with assumptions A R C C I C C C C C C C C C C C 35 Document external factors affecting growth A R 36Analyze resource constraints and potential hot spots A R R I R R R R R R R 37Define minimum requirements A R C I I I I C R R R R R R R R 38Ascertain tuning or optimisation potential A R C I I C R R R R R R R I

16 Strategic vs. Operational

17 Industry Standard vs. New ITIL Methodology Capacity Planner (Analyst) Operational Application sizing Real-time monitoring Performance tuning Reclamation targets Gathering data Service providers Network team End user computing team Mainframe team Open systems & storage team Clients Capacity Manager EUC Networks Mainframe Storage DBA Service providers Networks team End user computing team Storage team Open systems Applications Strategic Replacement strategy Lifecycle management Dashboard creation Budget cycle input Capacity procurement Monthly MANCO reports

18 ITIL Service Strategy: People Process VS Operational 20% Strategic 80%

19 Service delivery Service acceptance Change advisory board Service provider Risk Architecture Business one-on-one Forums Data Sources Tech / Non Server & storage Network & mainframe Cloud & floor space Demand forecasts Business trans. volume Charge-out Change advisory board Business unit meetings CIO IT execs Business execs Senior IT managers SME & architects Service line managers People Agenda topics Roadmaps and tech Client trends & bottlenecks SLA breaches & roadmaps Demand management Capacity related risk New services

20 Value Add Analysis What? Meetings & Toolsets Collect Data Where? Noise Reduction Level of Maturity Recommendation Why? Chaotic Reactive Proactive Service Value

21 Context Reporting Recommendations Value Business Speak Outcomes Reports Proactive Analysis Trends Forecast Information Knowledge How? Wisdom Why? Artifacts of monitoring as a discipline in their organization Component Infrastructure Data Who? What? Where? When? Understanding

22 Creating Value and Realizing Savings

23 Opportunities for Cost Optimization Duplication and redundancy Dormant or outdated assets Wasteful consumption or demand Portfolio Management Lifecycle Management Capacity Management

24 Why Capacity Management? Resilience Efficiency Agility Proactive mitigation of risks Replacement of man. processes Informed risk exposure Defeat over-/under provision. Reclaim unused resources Automated and unified tools and processes Clarity about current positions Confid. in forecasting ability Max. exploitation of opportunities

25 Drivers of Excess Demand and Consumption Self-service provisioning Vendor estimates/recommendations taken at face value Lack of sizing guidelines and reviews Public cloud services treated like traditional on-premises resources Virtual machines rarely returned or deleted after end of life

26 Managing Consumption and Demand Proactive Investment Reactive Use of standard configurations (S-M-L) Assess feasibility, challenge D assumptions Increased customer engagement and active demand management

27 Demand Process Identify business unit owners Create monthly forum for discussion Document each business unit s requirements Translate business requirements into IT requirements Map demand to Supply Initiate recl. strat. or procurement strategy Present demand report monthly Projections Business Growth Projection: 5% Projection: 12% Projection: 15% Projection: 17% Probability Rating Quarter 1: 80% Quarter 2: 60% Quarter 3: 50% Quarter 4: 30% Demand Calendar Be present at monthly business meeting(s) Translate business into IT infrastructure requirements Present KNOWN Growth, cater for unknown growth Understand 3 6 months demand (IT & business) Highlight demand at risk and dependencies

28 Managing Consumption and Demand Proactive Investment Reactive Discovery of unused or over-provisioned assets D Reclamation of resources supported by a formal policy Close the feedback-loop to improve future estimates

29 Process Flow for Reclamation Identify Verify CAB Reclaim CMDB Monitor Surveyor to identify targets based on 3- month analysis of performance metrics. Delete or resize virtual machine VM Targets SME Approval Server owner notified of pending action to server Opportunity to provide updates on infrastructure IT executive to ensure due process was followed Target list must be attached to approval IT Exec approval Change Advisory Board Approval from CAB and all potential parties informed of change IT team action change request and ensure that CMDB is updates IT team Capacity Team Report on quarterly reclamation Provide infrastructure charge-out model

30 Managing Consumption and Demand Activity-based costing: Allocating cost in relationship to actual consumption will make consumers more thoughtful about how they request resources If charge-back is too hard to sell, start with show-back Proactive Investment Reactive

31 Create Charge-out Model Chargeback / Showback reporting

32 Implementation Plan: Approach and Approval Organizational thinking Assessment Agreement of the GAP Defining the roadmap Mandate to implement

33 In Summary Management buy-in Do an assessment People, process, and technology Strategic, not operational Short-term demand (3 6 months) Charge-out or show-back Reporting and benefits Be assertive More analysis and less noise

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