Enterprise Service Management: The New System of Engagement. Charles T. Betz Principal

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1 Enterprise Service Management: The New System of Engagement Charles T. Betz Principal October, 2018

2 Agenda From CX to EX to ESM The 2018 ESM Wave Looking forward 3 From CX to EX to ESM Why ESM Matters 4

3 Enterprise Service Management? Is there a link between being happy at work, customer experience, and sustained financial performance? 6

4 The Factors That Lead To Positive Customer And Employee Experience Source: Forrester report Use Customer Experience Insights To Unshackle Employee Potential, January 5, Behind Every Customer Touchpoint There Is A Technology Story Customer Journey Employee Journey 8

5 It s all about services HR Services Marketing And Communication Services Legal Services Facilities Services IT Services 9 The digital service Outcome Act System 10

6 The outcome (or offering) 11 The act 12

7 The service system 13 Trend is to commoditization and automation of professional services (e.g. infrastructure engineering) Service Portfolio Response SLAs Some, but not all, production services require or support a provisioning process. Service Pipeline Service Catalogue (Requestable Services) Professional Services Workflow Provisioned Services Delivery SLAs Retired Services Application Services Infrastructure Services Production Services Availability and performance SLAs 14

8 The 2018 Forrester ESM Wave What we learned 15 Vendors

9 Wave research structure ITSM core (25%) ESM ESM (25%) DevOps Request Change Incident HR Asset Facilities etc etc etc 3 rd party Platform & portal (30%) EIM (analytics, knowledge, data governance etc) (10%) Platform admin & integration (10%) ITOM 17 ESM Conceptual Architecture Service accessibility Service fulfillment consistency, speed, and transparency Flexible service configuration Core IT service management Strategic digital services Workflow-based services External services 18

10 What we learned ESM is an organic, bottom-up, emergent market ESM is a fast moving space, with much innovation. It is not commodity. commercial use permitted 19 What we learned (2) Low/no-code suites are getting strong CIO positioning is a strength and a weakness Product strategies are evolving 20

11 Advanced Analytics and Agents (CogOps) Process area Before After Request Incident Change Available services hidden. Mis-routing, lack of value realization Lack of learning Mis-routing Subjective and static change risk assessment Portals with chatbots reduce friction, left shift support to Tier 0 (automated) Incidents routed to best resolution faster Dynamic change risk assessment. Specific value varies by process area 21 As ITSM Expands Into ESM, It Encroaches On BPM And low/no code PaaS more generally 22

12 Looking forward Positioning ESM and developing a strategy 23 What is the relationship between DevOps and ESM? DevOps is a harbinger of where the REST of work needs to go Fast flow Continuous learning Collaborative Relentlessly automated, but people are NOT replaced the sociotechnical system as a whole becomes more capable because the competition demands it. Defining DevOps Continuous Delivery Lean product development DevOps Effective Culture & Organization Source: Forrester Research, Inc. Unauthorized reproduction, citation, or distribution prohibited. 24

13 ITSM vs CDRA Change Risk Assessment ITSM User scoring (subjective) Inferred from configuration item (e.g. high value service dependency) Track record of similar changes Track record of team Stability/history of service CDRA Commit history Build history Deploy history (e.g. in lower environments) Retries Static analysis Dependency analysis Schedule adherence Both markets increasingly applying AI. Forrester recommends strong integration of these capabilities. 25 ESM covers the entire Digital Pipeline Continuous Delivery And Release Automation 26

14 The Future of Work As software eats the world, and we automate MOST of the things (not all), what does the remaining work for people look like? More variable Input/outputs less standardized: it s all just work Arrival rate less predictable Unplanned work (e.g. incidents) increase and becomes more variable of outcome Higher touch More collaborative More generalized Operations starts to look more and more like R&D 27 Digital = The rise of the knowledge worker The most important contribution of management in the 21st century will be to increase knowledge worker productivity... So far, almost no one has addressed it. Peter F. Drucker,

15 So what does knowledge work require? 29 What does a day in the life of today s knowledge worker look like? Accounting HR Facilities IT Procurement Legal COO?????? Employees Contractors Suppliers Partners 30

16 The ESM Strategic Play The problem of invisible work in progress is still big for ALL knowledge-based companies This is ESM s strategic justification Applying real math and analytics to an integrated view of enterprise service queues Heatmapping queue spikes, real time demand management, greater top of the house in theory ESM has the data 31 Recap Enterprise Service offerings IT Service offerings Service portal Local & federated Portfolio/Release/Change/Incident (fundamental control processes, i.e. meta-processes) CIO sponsorship (not rogue or shadow ) Workflows Low/no code (disruption of that market) EX expectations (consumerization) Visible -> Invisible work in process (ERP for IT) Specialization -> Collaboration End of Taylorism -> Rise of the knowledge worker Changing nature of work - Easy stuff automated - What s left is more variable & harder - DevOps (R&D) and high touch service - Bell curves -> long tails & black swans 32

17 Charles Betz Thank you FORRESTER.COM