Bryce Dunn Senior Product Manager Vantage. SLM/BSM & IT Business Alignment March 6, 2008
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1 Bryce Dunn Senior Product Manager Vantage SLM/BSM & IT Business Alignment March 6, 2008
2 IT and Business The Disconnect IT manages assets Business consumes services Servers PC s Networks Software licenses Storage B S M Payroll Remote access Information access Call center support 2
3 The Inhibitors No foundation for communication Mismatched expectations Technology-focused SLAs IT in reactive mode 3
4 ..The Drivers on IT Cost Cut Strategic Sourcing Outsource: Selective/Full/Offshore/BP O/Managed Services Reduce Staff Consolidation Operational efficiencies The Business of IT Business Value Improved IT Service Provide IT/Business Alignment Support Business Agility Improved information and analytics Provide real time service visualization 4
5 Business Service Management Business service management (BSM) software aids IT organizations in linking the availability and performance status of underlying IT infrastructure and application components to business-oriented IT services that enable business processes. Gartner Group Hype Cycle for IT Operations Management,
6 ITIL v3: Highlights Highlights ITSM life-cycle approach Integration vs. alignment Service portfolio Supplier management/ito Industry Practices e.g., Six Sigma, CoBIT, ISO Knowledge management Event management Business Service Management 6
7 Thinking Business Thinking IT Thinking Business Business Benefit Inventory Application been available 99.2% this month Number of missed customer deliveries today/month The Mother s Day computer failure resulted in 2,000 missed customer deliveries (value $275,000) infrastructure investment required. The FX123 server has been available 99.8% this month The number of trades processed today/month The increase in availability allowed our traders to process X more trades in the same time period. Resulting in an additional X million dollars The web site performance as average response time of 3 seconds The number of customers who performed transactions on the internet banking system today/month The increase/decrease of customers transactions resulted in a increase/decrease of X million dollars of fees this month. 7
8 8 Moving up the maturity model
9 Value: Business Service Management Visibility Do I have insight into what s important to the business? Compliance Am I meeting my client SLAs? Unification How do I leverage existing IT management investments? Prioritization What impact does it have when the fan is hit? Improvement How do I continually improve service quality? 9
10 Business Services Business Services: Business Data Above the water line: Services the business units need, expressed in business terms Are not serviced by a single technology platform Mainframe Distributed End User Experience Below the water line: Technical means and mechanisms for achieving those services Must be measured in multiple contexts End User Experience Infrastructure performance and availability Infrastructure Data Service Desk Data Service Desk Business KPI The complete picture is a true representation of Service Quality 10
11 Example Business Service 1 Business Service 4 End-user Transactions Experiences 20 Client and Server Interactions 200 Data Packets Enter Request HTTP Get Loan Request Assess Risk DB Query Preset Terms HTTP Get Loan Accept. SOAP Request Four key steps that result in revenue to the business Each step is dependent on IT services Top-down service decomposition Which IT systems does it depend upon? Can revenue from the service be quantified? Example metrics How many loan applications? Success / failure ratio? What is the service status? 11
12 Business Impact Business Process Dispatch Application Forms Process Loan Application Assess Customer Risk Accept Reject Create Drawdown Facility Monitor Funds Availability Maps the business services to the IT components they rely on Measures and reports on those components Visualizes the business impact IT Infrastructure 12
13 BSM Example: A top-down approach Service Strategy IT organization worked closely with the bank to understand their business goals Business executives, IT executives, business users Service Design ITO designed business services to meet the needs of the bank. Check processing, business key performance indicators, SLAs, ITO as supplier Service Transition Tested, implemented services defined and in production in 6 months. Service Operation ITO maintains and supports the new implemented solution 500 business indicators, 2,200 services measured/reported on 7 layers of staff inc. business/it execs, business users, administrators, developers.. 50 FTEs saved = reorganized to other areas for improvement 50 % saving in time Continual Service Improvement ITO continues to look for ways to improve services ITO is looking at Six Sigma 13
14 Service Level Management Purpose: Ensure that all operational services and their performance are measured in a consistent, professional manner in the IT organization, and that the services and reports produced meet the needs of the business and customers. 14
15 Service Level Management Key ITIL SLM Objectives: Define, document, agree, monitor, measure, report and review the level of IT services provided Proactively measure and report on service quality Improve customer satisfaction and relationships 15
16 SLM Lifecycle Service Design Service Transition define & document: SLRs, SLAs OLAs, UCs test, validate & baseline Service Strategy Service Portfolio Service Operation Service Catalogue Business Service Catalogue Technology Service Catalogue Continual Service Improvement measure & report report, analyze & improve 16
17 17 Example of business-focused SLAs
18 Business-Relevant Metrics End User Experience is Key Web server App server Mainframe Clients Web Firewall Web server App server Database 18
19 Continual Service Improvement (CSI) ITIL key objective Continually improve service quality while minimizing costs CSI highlights: Include other quality management methods Six Sigma, TQM Technologies for measurement and reporting Turn raw data into meaningful information for corrective actions 19
20 CSI: 7 step improvement ITIL v3 Highlights: Service measure/report Data into information Use of methods/tools 20
21 Summary Business Impact Management Quality of Service Real Impact Business Calendar Visualization Data to the right audiences Service Level Management Proactive not reactive Process Integration Collect and Correlate IT Management Data ITIL Process Six Sigma for Continual service Improvement 21
22 Compuware Founded in 1973 One of the largest ISVs in the world with $1 billion+ in annual revenue Headquarters in Detroit, Michigan 99 offices in 31 countries 6,500+ employees Public company traded on NASDAQ under CPWR Member of the S&P 500 and NASDAQ S Global Select Market 22
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