THE STATE OF UK IT SERVICE MANAGEMENT IN 2018

Transcription

1 THE STATE OF UK IT SERVICE MANAGEMENT IN 2018

2 THE STATE OF ITSM IN % 39.2% Imrove customer service is still the number one business goal Aim to close IT security vulnerabilities in next 12 months During the June 2018 Service Desk and IT Suort Show (SITS) in London, TeamUltra, one of EMEA s leading ServiceNow artners, undertook its annual survey of event attendees. The results are organised across three themes: IT Service Management (ITSM) ressures and objectives ITSM tool adotion Service management futures Key survey findings Key conclusions drawn from the 2018 SITS survey results include: Day-to-day challenges: IT organisations are increasingly struggling with the volume of change-related activities. Budget availability continues to be a big obstacle/challenge for ITSM rofessionals. Lack of secialist skills and constraints of current ITSM systems are cited as major obstacles/challenges for ITSM rofessionals in the next 12 months. Perhas surrisingly (and for the second year in a row), GRC has fallen in oularity as a next-year initiative esecially as the introduction of the EU s GDPR legislation should have laced a higher IT and cororate emhasis on risk management and comliance. Service management technologies: Over 40 % of survey resondents are looking to change ITSM tool in the next 12 months. This is a ten ercent jum, after a dro in While still low-ranking, artificial intelligence (AI) has jumed as a very imortant business objective from 6.6% in 2017 to 15.1% in Survey resondents consider IT and customer service scenarios to be the most beneficial use cases for AI. ServiceNow continues to sit ato the UK ITSM-tool marketshare table, with close to one in four of survey resondents stating that their comany uses ServiceNow. The ServiceNow market share nearly summates the total of the next three most successful vendors. Meeting business objectives: High-quality customer service and end-user exerience continue to be key business objectives, with the imortance of imrove customer service increasing six ercent to 76.1% in IT security and vulnerability still laces highly for nextyear initiatives juming to 39.2% from 33.1% in This is reflected in the oularity of using ITSM caabilities for security oerations (in terms of enterrise service management).

3 Digital transformation: Only half of organisations have digital transformation strategies. The 46% of resonses that don t have a strategy in lace reresent a big concern. The to two outcomes of digital transformation are imroved end-user exerience and making it easier for customers to do business with us. Interest in both enterrise service management and service integration and management (SIAM) as next-year initiatives has bounced back from dros in 2017 to 19.7% and 15% of survey resondents resectively. The biggest gains in line-of-business adotion of ITSM best ractices and tools, i.e. back-office digital transformation, are; customer service (u ten ercent on last year), security oerations which has jumed straight into third lace at 26.6%, and financial service management which has increased six ercent to 15.6%. 1. ITSM ressures and objectives Many cororate IT deartments have been under ressure to reduce costs since the global financial crisis of 2008, articularly their IT service desks which have commonly seen team sizes cut and salaries remain static. Costs, however, are just one art of the business imrovement holy trinity of better, faster, cheaer; and the 2018 TeamUltra SITS survey highlights several additional challenges that resondents exect to face during the next 12 months - chiefly obstacles and challenges that affect quality. 1.1 Financial ressures are still rife but other ressures are rising Budget availability has been knocked off the to sot for the first time since this SITS survey began in The new highest-scoring resonse is: too many cometing rojects at 46.8% (see Diagram 1). Diagram 1: Which of these obstacles and challenges will you face in next 12 months? Obstacle/Challenge Too many cometing IT rojects 46.8% 45.5% 40.6% Availability of budget 46.1% 51.7% 45.6% Lack of secialist skills 37.3% 26.7% 30.0% Constraints of current ITSM systems 30.6% 22.6% 24.3% Getting buy-in for imroving non-core IT rocesses Year on year increase 25.2% 19.4% 18.1% Access to internal resources 22.3% 18.4% 25.9% Two ressures that organisations should be concerned about with scores rising between 2017 and 2018 are: Lack of secialist skills (37.3%). This could be due to skills shortages for newer technologies (such as cloud) or demand for scarce security skills. Whatever the cause it s one to watch and to build contingencies for. Constraints of current ITSM systems (30.6%). This is also highlighted as being a concern in other survey resonses related to ITSM tools that are covered later in this aer. Getting buy-in for imroving non-core IT rocesses has also risen considerably between 2017 and 2018 to 25.2%. 1.2 The continued imortance of customer service and end-user exerience In the 2016 and 2017 surveys, when asked about the imortance of several business objectives over the next 12 months, resondents rated two customer-centric objectives higher than both reducing costs and imroving service levels. In the 2018 SITS survey, imrove customer service was again the to business objective at 76.1%, imrove end-user exerience second at 59.7% and increase efficiency third (see Diagram 2). Diagram 2: How imortant are the following business objectives over the next 12 months? Business Objective Classed Classed Classed as Very as Very as Very Imortant Imortant Imortant Imrove customer service % 69.7% 66.9% Imrove end user exerience 59.7% 61.3% 60.1% Increase efficiency % 56.1% 54.6% Imrove service levels 40.3% 41.1% 45.0% Reduce costs % 44.6% 47.2% Automation 38.0% 32.1% 39.6% Drive innovation % 26.5% 36.5% Relace legacy IT systems 32.7% 28.2% 30.7% Introducing AI 15.1% 6.6% Year on year increase

4 ITSM Solution Vendor ServiceNow There are four objectives that have changed significantly in ranking: The imortance of introducing AI has risen to 15.1%. Automation has rebounded from its dro in 2017 to be at 35.2% in Innovation has also rebounded from its 2017 dro to be at 35.2% (and close to its 2016 level). Reducing costs has droed for the second time to 39.9%. Most likely because the continued realisation that the mantra of imroving against better, faster, cheaer is usually best effected in the listed order % Atlassian 11.4% 2.1BMCITSM tool churn is rising again 6.7% Hornbill 6.3% % 9.6% 7.1% 20.8% 16.2% 7.6% 6.8% The 2018 TeamUltra survey, (see Diagram 3), shows that 10.9% Ivanti (was LANDESK and HEAT) 5.1% 2.9% 1.6% 40.1% of resondents are looking to change ITSM tool in the Zendesk 41.% 4.3% 7.6% next 12 months. This is a ten ercent rise, after falling in 3.2%initiative 3.9% 6.6% Microand Focus (was HP) 2017, laces it at the most imortant for survey House on thethe Hill need to ugrade ITSM1.9% 1.8%risen2.3% resondents. systems has to Other/None 46.9% 29% and this will likely be art of the48.2% driver for 46.1% change. As will the obstacles and challenges related to the constraints of the current ITSM system that scored highly in Diagram 1. Diagram 3: What initiatives are you looking at in the next 12 months? It s also worth noting that imroved end-user exerience also came to in the survey question that asked about the most imortant outcomes for lanned digital transformation. This is shown later in Diagram 6. Initiative 2. ITSM tool adotion Ugrade ITSM systems Governance, risk, and comliance (GRC) Extend ITSM to non-core IT lines of business (ITOM, CSM, etc.) SIAM (service integration and management) Outsource IT functions 2018 Introduce a new service management system IT security and vulnerability Service desk alignment to ITIL Other Year on year increase The ITSM tool marketlace has changed dramatically over the last ten years and continues to do so. The introduction, and continuing adotion, of SaaS ITSM solutions has not only shaken u the ITSM vendor status quo during this time but has also raised customer exectations of tools. This ranges from the exectations of imlementation timeframes, the frequency and ease of ugrades, the focus on value over costs, to the ease of moving between different vendors and tools % 30.1% 38.3% 39.2% 32.8% 29.0% 25.8% 33.1% 29.1% 24.8% 29.1% 36.7% 32.9% 26.3% 30.3% 19.7% 12.2% 17.7% 15.0% 10.8% 13.9% 10.5% 2.2% 10.4% 2.2% 10.1% 2.2% Obstacle/Challenge Too many cometing IT rojects Availability of budget Lack of secialist skills Constraints of current ITSM systems Getting buy-in for imroving non-core IT rocesses Access to internal resources % 46.1% 37.3% 30.6% % 51.7% 26.7% 22.6% % 45.6% 30.0% 24.3% 25.2% 19.4% 18.1% 22.3% 18.4% 25.9%

5 There are many other interesting results to note: IT security and vulnerability still laces highly for next-year initiatives juming to 39.2%. This is also reflected in the oularity of using ITSM caabilities for security oerations which is shown later in Diagram 7. The number of resondents wanting to align their service desks to ITIL, the oular ITSM best ractice framework, has bounced back from its 2017 di robably due to the announcement of a new version of ITIL aearing this year. Interestingly, GRC has droed for the second year in a row whereas the introduction of the EU s GDPR legislation should have laced a higher emhasis on risk management and comliance. Interest in both enterrise service management and SIAM has also bounced back from resective dros in 2017 with this erhas an indication of differences in the survey samle, and the size and comlexity of the organisations the survey resondents work for. 2.2 The UK ITSM-Tool market share The SaaS delivery (and business) model has altered the ITSM tool marketlace forever, with the 2018 TeamUltra SITS survey showing just how much. Looking at Diagram 4, ServiceNow continues to sit ato the UK market-share table with close to one in four survey resondents stating that their comany uses ServiceNow. The ServiceNow market share is also close to the total of the next three most-successful vendor shares combined. However, the inclusion of Atlassian and Zendesk in the to 6 laces is testament to how two even newer SaaS ITSM tool roviders can quickly gain market share (albeit when measured by customer numbers rather than seats). Both comanies are no doubt leveraging their existing customer bases, in the alication issue tracking and external hel desk saces resectively, to win ITSM business. Diagram 4: What ITSM or service desk solutions are you currently using? ITSM Solution Vendor ServiceNow 23.5% 22.5% 20.8% Atlassian 11.4% 9.6% 16.2% BMC 6.7% 7.1% 7.6% Hornbill 6.3% 6.8% 10.9% Ivanti (was LANDESK and HEAT) 5.1% 2.9% 1.6% Zendesk 41.% 4.3% 7.6% Micro Focus (was HP) 3.2% 3.9% 6.6% House on the Hill 1.9% 1.8% 2.3% Other/None 48.2% 46.1% 46.9% Year on year increase Finally, the continued rise in Ivanti market share the largest ositive erformer relative to 2017 is likely in-art due to the inclusion of LANDESK and HEAT customers. 3. Service management futures The business and technology landscaes continue to change raidly and so do the demands made of ITSM and its enabling tools. ITSM is changing to embrace new technologies and new ways of working, with the SITS survey focusing on the following areas: 1. Digital transformation 2. Customer exerience 3. Enterrise service management 4. AI adotion 3.1 The focus on, and of, digital transformation Digitalisation the use of digital technologies to change a business model and rovide new revenue and value-roducing oortunities (Gartner) i and the associated cororate transformation to become a digital business was one of the hottest business trends of 2016 and And this has continued into Imortantly, digital transformation is so much bigger than the cororate IT deartment, desite the name evoking thoughts of technology, with the need and direction usually driven down from the CEO and other C-suite members. This broader view of digital transformation is described as: The use of technology to radically imrove erformance or reach of enterrises to change customer relationshis, internal rocesses, and value roositions ~ MIT Sloan ii. When SITS attendees were asked whether their organisations have digital transformation strategies, worryingly only slightly more than half said that they do; with the remaining half equally slit between no s and don t knows (see Diagram 5).

6 Diagram 5: Does your comany have a digital transformation strategy? 2017 YES 48.1% 2016 YES 46.3% 2018 NO 23.0% 2017 NO 32.4% 2016 NO 25.4% 2018 DON T KNOW 22.7% 2017 DON T KNOW 19.5% 2016 DON T KNOW 28.2% While there s a good increase in yes resonses from 2017 to 2018 that 46% of resonses are a no or don t know in 2018 is surrising (after so many years of industry interest and action). Any comany that thinks digital transformation isn t alicable to them is the business equivalent of an ostrich burying its head in the sand. Looking at the desired business outcomes, digital transformation strategies are focused on imroving the offered and delivered exerience with the to two scoring outcomes being: imroved end-user exerience and making it easier for customers to do business with us (see Diagram 6). Diagram 6: What are the most imortant outcomes for your lanned digital transformation? 2018 YES 54.3% Outcome 2018 Imroved end user exerience 59.1% Making it easier for customers to do business with us 39.8% Reduced cost 35.7% Seeking a better ROI on existing technology 19.3% Enhancing our brand to aeal to the next generation of workers and customers 12.3% These survey results show that digital transformation activities are thankfully more focused on eole than they are cost efficiencies and greater technology exloitation. 3.2 Customer exerience is no longer just for B2C Comanies, nor is it just for ITSM In 2018, business-to-consumer (B2C) comanies continue to use customer exerience to differentiate themselves in their marketlaces, with a laser focus on winning and retaining customers. And it s raidly becoming more and more relevant to IT deartments thanks to consumerisation where emloyee exectations of IT, and other cororate service roviders, are based on their often-suerior consumer-world exeriences. The SITS survey results reflect this in terms of: Imortant business objectives (Diagram 2), and Imortant digital transformation outcomes (Diagram 6). The need for a better customer exerience is also being felt by other cororate service roviders such as HR and facilities. Both consumerisation and customer exerience are driving the extension of ITSM rinciles, ractices, and technology into other lines of business to: Increase efficiency Imrove service quality Reduce costs Deliver a better service exerience to emloyees. It might be considered back-office digital transformation but it s also enterrise service management in action. 46.8% Cite too many cometing rojects as their to ressure in the next 12 months

7 3.3 Enterrise Service Management continues to hel other lines of business This use of ITSM rinciles, ractices, and technology outside of IT is nothing new savvy ITSM tool vendors have been selling their wares to HR deartments for over ten years. What is new, however, is how ITSM is being used outside of the two original most-oular use cases HR and facilities. Plus, what IT calls enterrise service management can deliver against the cororate needs for back-office digital transformation. The TeamUltra SITS survey backed this growth in enterrise service management adotion in 2016, with only 14.9% of resondents not using ITSM ractices to hel with service delivery and suort use-case scenarios in other lines of business (see Diagram 7). Oddly, this increased to 22.6% in 2017 and then to 26% in This goes against the results shown in Diagram 3, where extend ITSM to non-core IT lines of business (ITOM, CSM, etc.) as a next-year initiative rose to 19.7%. Rather than this being a backwards ste for enterrise service management with eole slowing down or stoing their use of ITSM in other lines of business this is more likely due to samling differences. 40.1% Looking to change ITSM tool in next 12 months Diagram 7: Has your organisation alied ITSM rinciles and ractices to any other lines of business? Line of Business IT oerations management 49.0% 52.5% 55.7% Customer service 35.4% 25.9% 29.4% Security oerations 26.6% - - Software develoment 25.0% 21.2% 19.3% Human resources 21.1% 21.2% 25.6% Project and ortfolio management 17.5% 14.6% 15.2% Emloyee relations and ayroll 10.0% 10.2% 8.5% Financial service management 15.6% 9.5% 11.7% Other 1.9% 1.8% 1.6% Facilities management % 19.6% Only in IT not gone to other lines of business Year on year increase 26.0% 22.6% 14.9% In terms of biggest gains in line-of-business adotion of ITSM best ractices and tools: Customer service has increased to 35.4% Security oerations added to the list of ossible answers in 2018 in lace of facilities has jumed straight into third lace at 26.6% Financial service management is u to 15.6%. Interestingly, HR, emloyee relations and ayroll have remained static.

8 3.4 AI adotion AI, and in articular machine learning, offers additional automated caabilities to ITSM and enterrise service management oerations. The technologies and use cases are still evolving but the industry is already seeing utake for: Reducing the labour-related costs of reetitive service desk tasks Better event management and the redictive identification of issues, along with automated remediation Imroved demand lanning and staffing otimization Automated categorization, work routing, and rocessing Providing an automated 24x7 first-contact chat(bot) exerience AI-assisted knowledge management. Diagram 8: Which area of the business do you think AI will benefit the most? Line of Business 2018 IT 68.9% Customer service 50.0% Security 26.4% Sales 16.3% Finance 16.0% HR 12.6% Other 1.3% A new survey question related to AI use cases was added for the 2018 SITS survey. While only 6.6% of resondents had introducing AI as an imortant business objective in the 2017 survey, it was exected that this would have risen significantly in 2018 which it had, to 15.1% (see Diagram 2). But where do survey resondents exect AI to benefit their businesses most? As shown in Diagram 8, AI use cases in IT (68.9%) and customer service (50%) scenarios were considered the most beneficial. While this might ultimately be true, it should also be considered in the context of the survey-resondent samle and the tyes of AI-enabled successes they have read about, been marketed-to, or have ersonally introduced. Longer-term AI successes are most likely to be enterrise-wide. 15.1% Introducing AI has risen significantly in imortance

9 3 RECOMMENDATIONS The ITSM industry, and the technology that suorts it, will continue to change at a raid ace. As in 2017, many asects of ITSM and IT oerations need to change in 2018 and beyond to meet the exectations of the arent organisation and its key stakeholders. At an enterrise level, CIOs need to focus their IT organisations to: 1. Imrove the emloyee exerience. Enabling the delivery of a better customer or emloyee exerience is now an exectation of IT deartments, and other cororate service roviders such as HR, based on the often-suerior consumer-world advances in service delivery and suort. This necessitates a need to transform service rovider caabilities, in articular through new emloyee focused strategies and technology exloitation based on truly understanding emloyee wants and needs. 2. Hel with enterrise-wide back-office digital transformation. As with enterrise service management use cases, IT needs to hel other lines of business, such as HR and facilities, with their digital transformation activities. Moving them away from manually managing service through s and sreadsheets; to offering a better service and customer exerience, and business-level efficiency and cost benefits. ITSM rofessionals will of course need to lay their art in both CIO-level recommendations. They will also be resonsible for ensuring that the eole, rocesses, and technologies emloyed in doing so are fit for urose. TeamUltra have a third recommendation to: 3. Reassess ITSM tools against both resent day and future business requirements. An ITSM tool is now so much more than an IT hel desk. Not only are there the ITSM needs related to better IT service delivery and suort, there s also the need to meet enterrise-wide demands for technologies that will deliver back-office digital transformation (in other lines of business) and a better emloyee exerience. Plus, to revent the industry s continued high rate of ITSM tool churn, comanies need to ensure that they re selecting their new ITSM tools based on delivered value across enterrise-wide use cases rather than just the traditional ITSM tool features and functions. i htt:// ii htt://sloanreview.mit.edu/article/the-nine-elements-of-digital transformation/ iii SDI reort: Life on the Service Desk in 2016 (2016) TeamUltra, a Comutacenter comany, is the EMEA s leading ServiceNow Gold Sales and Services artner. We enable our customers to change the way eole work, by using the ServiceNow latform, to enable service management for every deartment in the enterrise with IT Service Management, IT Oerations Management, Security Oerations, Customer Service Management, Field Service, Human Resources, Facilities, Governance Risk and Comliance. We rovide Professional Services, Managed Services and Suort and Integration Solutions based around the ServiceNow latform to the global ServiceNow community. sales@teamultra.net +44 (0)