Service Centric IT Integration. Chris Flynn Service Level Manager BMC Software, Inc

Transcription

1 Service Centric IT Integration Chris Flynn Service Level r BMC Software, Inc

2 IT Challenges Perceived by the business to be a cost black hole Difficulty showing the value of IT to the business Not viewed as a strategic partner by the business Copyright 6/22/2010 BMC Software, Inc 2

3 Goals and Objectives Our goals - Cost transparency to the business - Improved demand management - Create value along key business dimensions - More holistic view of IT performance So what? - Focus on where money is being spent - Focus on why money is being spent - Ability to communicate in business terms the value IT provides - Measure performance with a business focus Copyright 6/22/2010 BMC Software, Inc 3

4 Where does everything come together? Business Integration Investment Application Service Catalog Resource Infrastructure Process Copyright 6/22/2010 BMC Software, Inc 4

5 Service Catalog Business Integration Investment Application Service Catalog Resource Infrastructure Process Copyright 6/22/2010 BMC Software, Inc 5

6 Bridge Service Catalog Service Model Logical Layer Business Processes & Business Technical Physical Layer Servers, Network Devices, Storage, Etc. Copyright 6/22/2010 BMC Software, Inc 6

7 Service Catalog What is a Service Catalog? Business Process Specific Sales Marketing Shared Multi-Process Enablers Network & Telephony Business Intelligence SLM Requirements Business SLAs Signed agreements between IT the Business Area for agreed upon terms of service. Shared OLAs Signed agreements Between the Business Service rs and Shared rs for agreed upon terms of service. Are used to support SLAs Technical Applications, SaaS Providers, 3 rd Party Providers Oracle Financials Sales Force.com Service Targets only. Part of a larger Service Level Agreement or Operational Level Agreement. Aligned to ensuring SLA success Requestable Re-image PC Onboard New Hire Reset Password New Laptop Service Targets only. Part of a larger business Service Level Agreement Copyright 6/22/2010 BMC Software, Inc 7

8 Business Integration Business Integration Investment Application Service Catalog Resource Infrastructure Process Copyright 6/22/2010 BMC Software, Inc 8

9 Business Integration How Did We Decide Our Business STRATEGY TO PLAN CONCEPT TO PRODUCT MARKET TO CASH FORECAST TO DELIVERY ACCOUNT TO REPORT HIRE TO RETIRE SUPPORT TO CONTROL Corporate Strategy Gather Corporate Intelligence PLM Portfolio Mgmt. Ideas & Concepts Market Products & CRM Marketing Introduce New Products Plan & Execute Campaigns Source to Purchase ERP Procurement Finance HR Financial ment Workforce Planning & Talent Review Support Information Technology ment Plan Strategy Market & Product Research Sales Force Sales Customer Accounts Opportunities Procure to Pay General Financial Accounting Selecting & Acquiring Talent Legal Partner ment Set Goals Product Portfolio Channels Channel Sales Customer Care Audit & Compliance On-Boarding & Assimilation Facilities Align Organization Product Lifecycle Professional Education Treasury Operations Managing & Rewarding Performance Order ment Plan Technology Alliances Product & Pricing Data Process Quotes Process Orders Fulfill Orders ment Accounting Developing and Retaining Talent Product Dev. Projects Contracts Billing Receivables Licenses & Entitlements Information Develop and Test Software Copyright 6/22/2010 BMC Software, Inc 9

10 Business Integration Final List of Business STRATEGY TO PLAN CONCEPT TO PRODUCT MARKET TO CASH FORECAST TO DELIVERY ACCOUNT TO REPORT HIRE TO RETIRE SUPPORT TO CONTROL Corporate Strategy PLM ESM Product Development Marketing CRM Customer Care Finance ERP HR Support End User MSM Product Development Sales Education Professional Collaboration Order ment Shared Data Center Operations Network & Telephony Business Intelligence Master Data ment IT ment Data Administration Integration Copyright 6/22/2010 BMC Software, Inc 10

11 Application Business Integration Investment Application Service Catalog Resource Infrastructure Process Copyright 6/22/2010 BMC Software, Inc 11

12 Application Integration Map Technical To Business STRATEGY TO PLAN CONCEPT TO PRODUCT MARKET TO CASH FORECAST TO DELIVERY ACCOUNT TO REPORT HIRE TO RETIRE SUPPORT TO CONTROL Corporate Strategy PLM ESM Product Development Marketing CRM Customer Care Finance ERP HR Support End User Technical Service 1 Technical Service 2 Technical Service 3 Technical Service 4 Technical Service 5 Technical Service 6 MSM Product Development Technical Service 7 Technical Service 8 Technical Service 9 Technical Service 10 Technical Service 11 Technical Service 12 Sales Professional Order ment Education Collaboration Technical Service 13 Technical Service 14 Technical Service 15 Technical Service 16 Technical Service 17 Technical Service 18 Technical Service 19 Technical Service 20 Technical Service 21 Technical Service 22 Technical Service 23 Technical Service 24 Technical Service 25 Technical Service 26 Technical Service 27 Technical Service 28 Technical Service 29 Technical Service 30 Technical Service 31 Technical Service 32 Shared Data Center Operations Network & Telephony Business Intelligence Master Data ment IT ment Data Administration Integration Copyright 6/22/2010 BMC Software, Inc 12

13 Infrastructure Business Integration Investment Application Service Catalog Resource Infrastructure Process Copyright 6/22/2010 BMC Software, Inc 13

14 Infrastructure Mapping Of How Infrastructure Is Distributed Copyright 6/22/2010 BMC Software, Inc 14

15 Process Business Integration Investment Application Service Catalog Resource Infrastructure Process Copyright 6/22/2010 BMC Software, Inc 15

16 Process ITIL V3 Process Mapping Copyright 6/22/2010 BMC Software, Inc 16

17 Process Questions Addressed By Process Area Service ment Office Enterprise Architecture Infrastructure & Operations Copyright 6/22/2010 BMC Software, Inc 17

18 Business Integration Investment Application Service Catalog Resource Infrastructure Process Copyright 6/22/2010 BMC Software, Inc 18

19 Resource What Resources Do We Have? Hardware Labor Hardware Software People Copyright 6/22/2010 BMC Software, Inc 19

20 Resource Traditional Resource View YTD FY10 thru Qtr 3 ($ Millions) Actual Budget Variance WAGES BONUSES (0.6) BENEFITS (0.1) PAYROLL TAXES (0.2) WELFARE AND RECOGNITION OTHER EMPLOYEE EXPENSES PROFESSIONAL DEVELOPMENT PS PERSONNEL EXPENSES (0.0) CAPITALIZED INTERNAL DEVELOPMENT (2.5) (1.4) 1.1 PERSONNEL EXPENSES TRAVEL AND ENTERTAINMENT (0.4) PROFESSIONAL FEES (1.0) FACILITIES EXPENSE (0.1) SUPPLIES AND SERVICES (1.1) EQUIPMENT EXPENSE DEPRECIATION ADMINISTRATIVE EXPENSES (0.1) ALLOCATIONS OPERATING EXPENSES Common Costs (1.6) Total (0.8) (Simulated Data) Copyright 6/22/2010 BMC Software, Inc 20

21 Resource Service Costing Dimension Non-FTE Project-Related Expenses Internal Labor Related Labor Cap Other Expense TOTAL COST ESM MSM R&D Support 3, ,909.7 (23.4) , , ,935.6 Engineering - ESM 2, ,108.6 (21.8) , , Engineering - MSM 1, ,801.1 (1.7) , ,935.6 Front Office 6, ,232.2 (3,184.9) , , ,134.1 Customer Care 2, ,569.3 (1,322.7) , , ,426.1 Professional 2, ,140.5 (814.1) , , Education (286.1) Sales 1, ,484.8 (759.2) , , ,122.2 Marketing (2.9) Back Office 3, ,342.1 (790.8) , , ,036.3 Finance 2, ,832.3 (252.4) , , ,533.0 Human Resources (82.1) , , Order ment 1, (456.3) (4.8) 1, , Shared 10, ,525.3 (264.6) ,563.1 Business Intelligence ,426.6 Collaboration & Content Mgmt 1, (264.4) ,615.2 Data Administration Integration IT ment 7, (8.6) 9.1 7,843.8 Infrastructure 8, ,869.3 (1,327.3) 2, , , Data Center Operations 5, ,468.5 (1,293.0) 2, ,555.1 Network & Telephony 1, ,017.1 (0.2) - 6,071.6 End User Support 1, ,383.7 (34.1) - 5, , Total 33, ,878.5 (5,591.1) 3, , , ,636.5 (Simulated Data) Copyright 6/22/2010 BMC Software, Inc 21

22 Investment Business Integration Investment Application Service Catalog Resource Infrastructure Process Copyright 6/22/2010 BMC Software, Inc 22

23 Investment Current Capability Coverage STRATEGY TO PLAN CONCEPT TO PRODUCT MARKET TO CASH FORECAST TO DELIVERY ACCOUNT TO REPORT HIRE TO RETIRE SUPPORT TO CONTROL Corporate Strategy Gather Corporate Intelligence PLM Portfolio Mgmt. Ideas & Concepts Market Products & CRM Marketing Introduce New Products Plan & Execute Campaigns Source to Purchase ERP Procurement Finance HR Financial ment Workforce Planning & Talent Review Support Information Technology ment Plan Strategy Market & Product Research Sales Force Sales Customer Accounts Opportunities Procure to Pay General Financial Accounting Selecting & Acquiring Talent Legal Partner ment Customer Care Set Goals Product Portfolio Channels Channel Sales Customer Care Audit & Compliance On-Boarding & Assimilation Facilities Align Organization Product Lifecycle Professional Education Treasury Operations Managing & Rewarding Performance Order ment Plan Technology Alliances Product & Pricing Data Process Quotes Process Orders Fulfill Orders ment Accounting Developing and Retaining Talent Product Dev. Projects Contracts Billing Receivables Licenses & Entitlements Information Develop and Test Software Technical Service 1 Technical Service 2 Technical Service 3 Technical Service 4 Shared Service 1 Copyright 6/22/2010 BMC Software, Inc 23

24 Investment Investment Opportunities STRATEGY TO PLAN CONCEPT TO PRODUCT MARKET TO CASH FORECAST TO DELIVERY ACCOUNT TO REPORT HIRE TO RETIRE SUPPORT TO CONTROL Corporate Strategy Gather Corporate Intelligence PLM Portfolio Mgmt. Ideas & Concepts Market Products & CRM Marketing Introduce New Products Plan & Execute Campaigns ERP Procurement Finance HR Source to Purchase Financial ment Workforce Planning & Talent Review Support Information Technology ment Plan Strategy Market & Product Research Sales Force Sales Customer Accounts Opportunities Procure to Pay General Financial Accounting Selecting & Acquiring Talent Legal Partner ment Customer Care Set Goals Product Portfolio Channels Channel Sales Customer Care Audit & Compliance On-Boarding & Assimilation Facilities Align Organization Product Lifecycle Professional Education Treasury Operations Managing & Rewarding Performance Order ment Plan Technology Alliances Product & Pricing Data Process Quotes Process Orders Fulfill Orders ment Accounting Developing and Retaining Talent Product Dev. Projects Contracts Billing Receivables Licenses & Entitlements Information Develop and Test Software $0 M to $5 M Economic Payoff Potential $5 M to $10 M $10 M to $15 M $15 M to $20 M $20 M to $25 M (Simulated Data) Copyright 6/22/2010 BMC Software, Inc 24

25 Delivered Catalog Business Integration Investment Application Service Catalog Resource Infrastructure Process Copyright 6/22/2010 BMC Software, Inc 25

26 Service Catalog Table of Contents Business Customer Care Sales Professional Marketing Education Collaboration Pg 3 Pg 4 Pg 5 Pg 6 Pg 7 Pg 8 Order ment Finance Human Resources MSM Product Development ESM Product Development End User Pg 9 Pg 10 Pg 11 Pg 12 Pg 13 Pg 14 Shared Data Center Operations Networking & Telephony Business Intelligence Master Data ment Pg 15 Pg 16 Pg 17 Pg 18 IT ment Data Administration Integration Pg 19 Pg 20 Pg 21 Appendix A Service rs Pg 22 Appendix B Incident Response and Resolve SLAs Pg 23 Appendix C Service Continuity (Disaster Recovery) Tiers Pg 24 Copyright 6/22/2010 BMC Software, Inc 26

27 Business Order ment Rebecca Smith What Is This Service? Order covers most aspects of the Quote to Cash process including but not limited to the following: - Provides the visibility for Executive ment to track the revenue being generated from Orders. - Offers a unique pricing structure for the Sales Reps to work with remotely. - Tools that allows for highly complex orders to be entered efficiently. - Allows BMC to recognize revenue on a timely and accurate basis. - Provides for a Special Bids Automated approval system -Customized Collections module Users Corporate Order ment () 20% 29% 51% Cost Breakdown Non FTE Related Internal Labor Project Costs What Is Included? AR Cash ment Billing Collections Contract Agreement Order ment Financed Receivables License Key ment License Product ment Official Orders Pricing Month/Qtr End Close Revenue Recognition Revenue Summary Sales Commissions Sales Quotes Support Contracts Support Quote Support Renewals Revenue applications Cost $1,514,309 Allocation Basis Based upon number of users on the system. Key Cost Drivers Oracle maintenance and license fees Production Support of a customized application Planned Enhancements Pricing updates Revenue Accounting Recast and Subscription updates Support Quote expiration updates Licensing updates Opportunity ID updates Add Credit Limits in OE+ What Should You Expect? Incident SLA Service Continuity Tier 1 See Appendix B See Standard Incident ment Response/Resolve SLA SLA Performance Availability last 90 days Incident Compliance Copyright 6/22/2010 BMC Software, Inc % Critical High 96.4% 97.8% # of Outages last 90 days (Simulated Data) 3

28 IT Transformation Integration & Optimization Payoff Design (Architecture) Build (Engineering) Run (Operations) 5% 10% 70% 25% 55% 35% Total Spend Before (Circa 2006) Total Spend Today (20% Reduction) Copyright 6/22/2010 BMC Software, Inc 28

29 Lessons Learned Do not do this in a silo Fewer Business the better Engage with the business early and often Really promote the catalog within IT and the business Copyright 6/22/2010 BMC Software, Inc 29

30 Questions? Copyright 6/22/2010 BMC Software, Inc 30