IT4IT. Transforming IT in the digital age. Erik Johansen Solution Architect, HPE Software Services 27/04/2017.

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1 IT4IT Transforming IT in the digital age Erik Johansen Solution Architect, HPE Software s erik.johansen@hpe.com /04/2017

2 Digital business transformation is happening now and it is driving IT transformation 50% 46% 30% 84% of CEOs say their industry will be digitally transformed by 2020 of product value will be digital by 2020 reduction in cost for business operations driven by smart machines by 2018 of CEOs expect digital to increase profit margin Source: Gartner, Best Practices for Implementing Automation in Data Centers With Cloud and Virtualized Environments, 2013 Source: Gartner, 2016 CEO Survey: The Year of Digital Tenacity

3 The Problem the OpenGroup sought to address The IT Value Chain is Broken Business models are changing, and IT services must adapt! Lack of cooperation across all IT leads to sub-optimality Greater than 25% efficiency gains Insufficiently integrated IT Management toolsets, lack of prescriptive guidance Tool rationalisation from 1000s to less the 40 (cost reduction) Inability to gain true insight in order to make good decisions Single dashboard view exploiting common data model Immaturity makes it virtually impossible to tackle complexities like cloud, agility, mobility, BYOD In the digital economy Software is the Product. One reference architecture supporting all of the above and of course, must always be better, faster, cheaper and safer 3

4 IT Value Chain What is IT4IT A prescriptive reference architecture / standard for running the business of IT owned by The Open Group Plan Build Deliver Run Efficiency Value Chains Porter Competitive Analysis Strategic Concepts Value Creation Activity cost to profit margin analysis Backbone & Finance & Assets Agility Sourcing & Vendor Intelligence & Reporting Resource & Project Value Streams Martin Lean / 6-sigma concepts Multi-Process Oriented Customer focused results Governance, Risk & Compliance Vendor neutral Fastest Growing OG Standard Launched Oct 2015 Supports an IT Operating model Applicable to all IT Environments Value based delivery

5 IT4IT : an Open Group standard for running the business of IT Original Consortium Shell Hewlett-Packard (IT & SW) Achmea MunichRe Accenture Pricewaterhouse Coopers University of South Florida AT&T Value Chain 9/2011 RA 0.5 (level 1) 8/2012 RA 1.0 (level 2) 1/2013 RA 1.2 (level 3) 3/2014 RA 1.3 (level 3) 10/2014 RA 2.0 (level 3) 7/2015 IT4IT 2.0 Std. 10/2015 Technical Standard > 10,000 downloads > 1100 organizations > 100 countries Pocket Guide Hot Seller > 2200 downloads RA 2.1 Jan 2017 Now 104 Members of the IT4IT forum! IT Operating Model Describes the structure of IT management IT Reference Architecture Prescribes the functional & information architecture Consumer-centric service model IT4IT is a trademark of The Open Group

6 The IT Value Chain has 4 IT Value Streams as in a stream of activities delivering value IT Value Chain Strategy to Requirement to Deploy to Fulfill Detect to Correct Drive IT portfolio to business innovation Build what the business wants, when it wants it Catalog, fulfill & manage service usage Anticipate & resolve production issues

7 Context / use case From initiatives to value There is more value created with overall alignment than local excellence (*) Core IT Process Tool Cloud Process Tool DevOps Process Tool Security Process Tool Multi Supplier Process Tool Mobility Process Tool Velocity / requirements (*) Don Reinertsen, The Principles of Product Development Flow

8 General approach to the IT4IT Reference Architecture Copyright 2017 The Open Group This diagram was developed/published by the IT4IT Forum, a Forum of The Open Group Functional Model High level definition of all functional areas for IT Based on customer use case analysis Enterprise Architecture Enterprise Architecture Defect Defect IT4IT Reference Architecture L1 Model Information Model Foundation Integration Layer Based on ITIL and service lifecycle and high level grouping of: Continuous Assessment, Continuous Integration, and Continuous Delivery and later into Value Streams Identification of key controlling IT artifacts Definition of artifact lifecycles according to lifecycle model Defines key control points for integration, based on artifact Link Information model with lifecycle model Policy Scope Agreement Policy Proposal Demand Backlog Item Requirement Source IT Initiative Requirement Source Control Project Test Case Build Build Package Test Build Build Package Offer Consumption Offer Management Offer Catalog Composition Catalog Entry Shopping Cart Rationalization Subscription Contract / Showback Usage Usage Problem, Known Error Contract Problem Level Diagnostics & Remediation Run Book Incident Event Incident Event Monitoring Monitor Functional Model Model Information Model Foundation Integration Layer Conceptual Strategy to Logical Design Release Release Composition Release Blueprint Fulfillment Execution Fulfillment Change Control Requirement to Deploy to Fulfill Detect to Correct Desired RFC Actual Configuration Management

9 IT4IT reference architecture level 1 Strategy to Enterprise Architecture Enterprise Architecture Requirement to Deploy to Fulfill Detect to Correct Defect Defect 9 Policy Requirement Test Offer Consumption Problem Incident Policy Requirement Test Case Shopping Cart Problem, Known Error Incident Scope Agreement Backlog Item Proposal Demand Source IT Initiative Source Control Project Build Build Package Build Build Package Offer Management Catalog Composition Offer Catalog Entry Rationalization Subscription Contract Usage / Showback Usage Contract Run Book Level Diagnostics & Remediation Event Monitor Event Monitoring Design Release Composition Fulfillment Fulfillment Execution RFC Change Control Configuration Management Conceptual Logical Release Release Blueprint Desired Actual This diagram is based on material developed by the IT4IT Forum of The Open Group Jan 2017 Key functional component Entity relationship model object Key data object Auxiliary data object IT4IT version: 2.1 IT4IT is a trademark of The Open Group

10 R2F Copyright 2017 The Open Group This diagram was developed/published by the IT4IT Forum, a Forum of The Open Group n:m 1:1 User Profile Engagement Experience Portal Catalog Collaboration Knowledge Self- Support Shopping Cart Shopping Cart Offer Consumption Conversation Knowledge Incident Offer Mgmt. Offer Catalog n:m Offer n:m 1:n Composite/Compound Contract (Template) Rationalization 1:n n:m Subscription 1:n Contract (Instance) 1:1 Level Status Level Contract Detect to Correct Subscription 1:n Status /Showback Contract 1:n Knowledge & Collaboration Supporting Function Incident Detect to Correct Finance (External to IT) Estimated Labor & Asset Cost Estimated Labor & Asset Configuration n:m Proposal Strategy to 1:n Catalog Entry (Bound) n:1 Monitor Project Requirement to Deploy Monitoring 1:n Usage Strategy to Catalog Composition Catalog Entry Catalog Entry (Unbound) Release Composition Release Blueprint Requirement to Deploy n:1 Release Package 1:n 1:n 1:1 Fulfillment RFC Change Control RFC Detect to Correct Fulfillment Execution n:1 Desired Actual 1:1 Configuration Management Actual Detect to Correct Detect to Correct Sourcing & Vendor Management (External to IT) Usage Fulfillment Engine & Deploy/ Provision Systems Invoice IT Asset Management Supporting Function Usage Usage Cost Functional Key Functional Auxiliary Model R2F 2.1 Data Object Key Data Object Auxiliary Entity Relationship Fabric Integration Engagement Dataflow Current Practice 10

11 R2F 11

12 It is all about accelerating outcomes One common ask - better, faster, cheaper and safer 60% 50% $1m 30% Reduction in budget overruns Faster application release Savings on efficiency Availability improvements S2P project & portfolio management R2D Continuous Release & Deployment R2F Self service, automated request fulfilment D2C Closed Loop Incident Management

13 Different frameworks mapped against IT4IT Strategy to Requirement to Deploy to Fulfill Detect to Correct TOGAF COBIT SAFe SIAM ITIL PRINCE 2 13

14 A Language for Digital Transformation 14

15 Useful websites IT4IT on HPE ITSM on HPE 15

16 Thank you 16

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