Proving the value of IT on the bottom line

Transcription

1 Proving the value of IT on the bottom line Arne Löfgren Business Development Manager ITMS SAS International

2 A quick summary so far...! Ensure that IT delivers business value! Correct Service! Correct Price! Correct Quality! Correct Time! To the right customer Or. Turning IT into a business Stop talking, start acting!! 2

3 So, what are the challenges?! How do you constantly evaluate and optimise costs, internal processes, products and services?! Do you know when and what to outsource or insource?! Can you understand, manage and communicate your entire value process? 3

4 IT Managers need to make immediate decisions What are my most and least profitable Products, Services and Customers? I need to cut 15% from my budget this quarter. Where should I cut? Are we producing the demanded quality? How can I maintain customer satisfaction, while reducing cost? 4

5 New IT market situation Profitability Increased revenue Decreased cost New customers Increased sales More effective Downsize Production Market Customer Avtal Avtal 5

6 What s the issue? Organisational maturity Customer satisfaction Customer driven Cost centric Service driven business >95% of the market Operational support Business centric Technical measurements Focus 6

7 Managing the change process Performance Measurement Quality rules Business rules New Business Model Change process Increased Customer and Service focus 7

8 Business, Customers and Users The Service Delivery Process according to ITIL. Management tools & IT Infrastructure Availability Management Availability, Plan, Design criteria Targets/Threshold Reports Audit reports Alerts and Exceptions Changes Capacity Management Capacity Plan CDB Target/Threshold Capacity reports Schedules Audit reports Service Level Management Queries Enquiries Requirements Targets Achievements Financial Management For IT Services Financial Plan Types & models Costs & Charges Reports Budgets & Forecasts Audit reports Communications Updates Reports SLAs, SLRs OLA s Service Catalogue SIP Exception reports Audit reports IT Service Continuity Management IT Continuity Plans BIA & Risk Analysis Control centers DR contracts Reports Audit reports 8

9 So, what s so difficult? Follow processes, not only service components! Client Network Applicationserver Servers (MVS, Unix, NT) Consultant Invoice the consumption of a packaged IT service, with the right price, to which there is an agreement of delivery, consisting of for example an SLA with demand for points of measurement and service levels.

10 The contract is the key to positive contribution and control! Performing organisation Consumption Contract Services Services Tender Tender Agreement Agreement Invoice Invoice Customer Standardize Harmonize Automate 10

11 Business Value through Service Management? To establish a balance between quality and costs! Service provider or internal IT: Service and customer focus Proactive Correct investments Value creation Efficiency Budget Business development IT $$$$ Service The Business: Base for negotiations Business-support Right price depending on the quality of the service Budget Conrtract of delivery Automated follow-up of: Operational agreements Customer agreements The defined processes Usage and volumes Defined service levels (Quality) Business rules - Provide base for invoicing 11

12 What does our environment look like? What key ratios should we track? Facts for understanding and improving How should we formulate agreements and contracts? What does the customer expect? What services should we sell? Correct service What do we produce? Correct quality Satisfied customer Correct price Report content? What does production cost? What should the invoice itemise? On time What is the customer prepared to pay? How should we organize? Is it the right customer? 12 Copyright 2002, SAS Institute Inc. All rights reserved.

13 Data Unique SAS functionality? ITFM Network ITRM Contract ABC Servers MVS ITRM SLM Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Time Reports Print Helpdesk IT Management Warehouse Items/Components Cost per unit models OLA Service component Contract and Customers Service catalogue & price SLA Resources Billing Follow up SLA Cost Revenue Export to finance (GL) Compare real cost to ABC models 13

14 Models using ABC 14

15 Agreements in IT FM When? For whom? By whom? Cost Revenue Quality Billing What? 15

16 Service levels in IT SLM 16

17 On defined services...! Software services! Workplace services! Telephoni services! Support services (Helpdesk)! Network services! Production and maintenance of applications! Internet related services! Graphical servies! Consultancy services 17

18 Service Level Management Functionality Financial Management for IT Services Functionality SLA admin Service Level Requirements Service Catalogue (service-component aspects) OLA admin Service Catalogue Admin Penalties, Costs & Charges Financial Plan Contract admin Service Catalogue (financial aspects) Costs & Charges Financial penalties Service Improvement Program Exception reports Customer reports Audit reports Billing Forecasts Audit reports Types & Models (I.e. ABC/M) Budgets 18

19 SAS IT business solutions Man. trans ABC/M Contract Service catalogue SMF IT Scorecard IMS Time report Intelligence architecture Financial management SLA Graphic prod. Capacity planning Stand. input SAP R/3 Colllector Logic Reports Define cornerstones Extract and load points of measurement Transforming process (Metadata) Storage Realize service levels and contracts Datamodel Framework for rules Metadata Technical Customer Management Contract, etc 19

20 Getting control of the botttom-line! With SAS IT Financial Management the whole business will have a system solution to support the day-to-day work. A solution for continuous improvements, including: Agreements Service catalogue Prices and costs Customers Resource/Supplier Misc. dim. Time Customer Supplier Agreement Service 20

21 The impact on the business IT decides Internal department Monopoly Users & Technicians Unspecified offer Divided Cost 0% agreement Unspecified delivery Unspecified expectation Unclear base for debit IT = Black hole BU fully responsable for IT IT Company Competition Seller & Buyer Well defined services Clearly priced services 100% agreement Agreed service & range Agreed service level Clear invoice IT = manageable costs 21

22 1700 And the value... Customer satisfaction! Yearly cost MS E K Cost Centric Business Centric Volume index

23 The power to know! 25 years experience in supporting change processes by delivering knowledge and information 23

24 24 Copyright 2002, SAS Institute Inc. All rights reserved.