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  • Let’s face it, few, if any of us, really like change. Change can be disruptive. And our customers have less time and more demands on their business than ever. That’s the reason we developed the Adaptive Enterprise strategy. We went to our customers and asked them: “What keeps you up at night.” And they said “Change.” Our Adaptive Enterprise strategy is about how to take advantage of change, how to turn it into an opportunity. In fact, change creates opportunity. You may have seen our worldwide advertising campaign, which uses the tag line: Change + HP. The point is that we help customers master change by uncovering the opportunities change creates to increase competitiveness and serve customers better. Let’s first look first at what’s causing all the change in today’s business world, and then see how it’s affecting our customers— enterprise companies and the public sector.
  • HP recognizes companies face unprecedented and continuous change. HP views change as a positive force to create business opportunity and a competitive advantage. While change is often unexpected and disruptive,  firms that adapt quickly gain a competitive advantage. These change drivers can be summarized into three primary customer benefits, simplicity , agility , and  value all gained from an Adaptive Enterprise. Customer example: DREAMWORKS – Ed Leonard, Head of Technology, DreamWorks Animation Make the ogre laugh, make the donkey sing." "Each animated film takes four years to produce using hundreds of artists and technicians. And IT is utterly central to the entire process. "HP put together a complete technology solution for us, from HP servers in our data center that manage graphic rendering files in real-time to HP work stations and printers for our animators. "Most importantly, HP's collaboration has helped us break new ground technically, creatively and financially with Shrek , Spirit and this summer's Sinbad . "With HP's help, IT has become an artistic tool that lets us produce animated films that, just a few years ago, were beyond imagining." DreamWorks demands more from IT and HP makes sure they get it.
  • A year ago, we announced our vision of the Adaptive Enterprise It’s all about synchronizing business and IT to capitalize on change The customer benefits are clear –simplicity, agility and value Why is our Adaptive Enterprise the right strategy for today? What’s driving companies to become more agile, more adaptive? Businesses today need to be able to deal more effectively with change. The speed of change is just phenomenal. If you look at the life expectancy of companies, it’s one-fifth of what it used to be 50 years ago. The lifecycle of a pharmaceutical product, for example, is one-third of what it was 50 years ago. Even the toy industry used to have the same brand for 15 or 20 years; now it’s down to five years, if you are lucky. So, that rate of change is sparking our customers to demand from us an infrastructure that can adapt to different circumstances very rapidly. The Adaptive Enterprise is all about managing change and making it an ally Significant progress toward giving this vision greater focus
  • HP’s Adaptive Enterprise Strategy “ It is not the strongest of the species that survives, not the most intelligent, but the one most responsive to change.” (Charles Darwin) To win, you need to become an adaptive enterprise. Ultimately, CIOs are working with their colleagues in the business to create an adaptive enterprise –that is, a company that is able to not just survive the onslaught of change, but a company that’s able to thrive in the face of change. Ultimate state of fitness – every business decision triggers an IT event. The steps to achieve this: first, stability; then efficiency; finally, business agility Base view: IT is in silos today, inefficient, hard to manage horizontally, inflexible but stable. Need is to gain insight into what exists <Second click> Some CIO’s are working hard to increase their value to the enterprise, to deliver required services at agreed-upon levels. As more and more IT is outsourced, CIO’s are experiencing the need to track and manage IT in a new way. They are taking that learning and applying it inward – learning new ways to organize their operations <third click> once the first two stages are mastered IT organizations are ready to implement the systems, technology and metrics and automation required to enable a completely adaptive enterprise. Today Department/ Project - specific actions to reduce IT capital or operating expenses Data Center Consolidation Outsourcing Leasing Hosting 3-5 years Enterprise-wide view of IT capital or operating ex savings Measure user productivity Managed Services IT Resource Virtualization 5+ Agility. Productivity. Enterprise wide benefits Grid Computing Custom/Internal Utility ServicesCommon / External Utility Services
  • We outlined 4 design principles to design and deploy IT for maximum agility: Simplification, Standardization, Modularity and Integration. You need to apply these principles consistently across your business processes, applications and infrastructure. In fact, this is where all the “heavy lifting” is going to be done. We expect customers will spend the next 3-5 years getting infrastructures built to handle change. What do you need to do? Simplification: A business can no longer have a United Nations of applications. You must be on a crusade to simplify. Go from 12 instances of ERP to two…eliminate customization! Standardization: Standardize on a single instance of a key enterprise application; adopt a well-defined enterprise architecture with sound governance principles; leverage HP OpenView for standard processes like IT Information Library (ITIL). Modularity: Design around building blocks like modular storage and virtual servers; these are easier to change; this also allows you to wrap your existing infrastructure and protect your investment; rapid step-wise approach to delivering return on IT; not rip and replace – extend and embrace. This also gives rapid, stepwise return on investment Integration: Integrate and manage business processes down into the raw hardware, from the fans in the servers back up to the service-oriented architecture. And then link those systems with customers and suppliers… From the 50,000 foot view it all boils down to a shift from “vertical stacks” where resources are housed in silos to a “horizontal infrastructure,” which creates a common foundation on which you can layer any application or process. When you get your IT infrastructure right, anything is possible, and change becomes an opportunity, not an obstacle
  • OVERVIEW The Darwin Reference Architecture provides customers with a roadmap to realized all the benefits of tightly linking business processes and IT Darwin represents a horizontal view of all the elements in your organization – beginning with the business processes, through applications, and down to the underlying infrastructure. Darwin embodies HP’s experience as a successful multinational corporation that can rapidly innovate and adapt to changes in the business environment, including rapid product introductions, acquisitions and mergers. The Darwin framework provides several key advantages: It leverages best-of-breed technology and components to create a new level of integration between business and IT via a service-oriented architecture It helps you optimize the resources you have through virtualization, Web services and management software – you do more with less It lowers IT acquisition and operating costs by applying industry standards to drive efficiencies and economies of scale And it provides an evolutionary path to an Adaptive Enterprise, enabling you to take the appropriate steps at the appropriate. You don’t have to eat the whole meal all at once... ------------------------------  The Darwin Architecture is our roadmap to help our customers get all the benefits of tightly linking their business processes and IT. It serves as a guide for how companies can align their IT strategy with their business objectives and strategy. It is a way of helping customers think about how to connect business services and application services and the underlying IT infrastructure services. It is, in fact, a logical framework for building the Adaptive Enterprise. It not only serves as a guide for applying the key design principles across the company, but helps implementers think about the entire enterprise: the people and processes, as well as the technology. Let’s go through it briefly. When we talk to customers, the business services level – from human resources to accounting to supply chain functions – is the highest point of leverage because it has such a direct impact on the ability of the company to meet customer needs. Through HP Services and partnerships with systems integrators, we help customers simplify, standardize and manage their business processes. At the applications services level, we partner with Oracle, SAP, PeopleSoft and many other companies. Our Darwin Architecture envisions applications being delivered as services using standards like .NET and J2EE. The infrastructure services level really encompasses two components: First are the infrastructure services that deliver the secure, continuous computing power and storage capacity required by applications. This is a combination of Web services, registry services and eventually even grid services. Second are the virtualized resources – the servers, storage, clients and networks that are shared, pooled and allocated as needed to support the business processes. The IT business management function on the left is the process that sets up the supply-demand relationship between IT resources and business needs. It’s how customers can integrate the people, processes and technology so they can run IT as a business and automate the dynamic link between business and IT...and the more they can do this the more they can free up resources and redirect them to doing the things that are critical to delivering new services. One of the big selling points for the Adaptive Enterprise is that it allows customers to spend less time and money on maintenance and more on innovation. What you see here in the Darwin Architecture is what we call a Service Oriented Architecture (SOA) — that is, where the infrastructure, applications and processes are delivered as services throughout the company. Darwin helps our customers tap the power of virtualization and model-driven automation to integrate these services and become a true adaptive enterprise. By virtualization , we mean combining computing and storage assets for specific tasks. Model-driven automation provides a level of self-governing for a complex IT infrastructure. As we said before, the Adaptive Enterprise is a journey of transformation for our customers and for the products and services HP will offer over the coming years. --- The Darwin Reference Architecture Guides the evolution of business and IT towards an adaptive enterprise. Darwin enables enterprises to model business and information systems at multiple levels to construct and evolve IT systems with emphasis on agility by using change as a normal state of affairs. The Darwin approach delivers an architecture with: Layers of business and IT functionality , with each layer including a comprehensive set of functional domains. A 'manage and control' capability To ensure correct operation and synchronization. A set of architectural principles to consider while implementing an instance of the architecture. A set of scenarios to demonstrate how the architecture adds value. Top-level Darwin layers are defined as: Business Strategy – Overall business objectives and plans that drive an enterprise’s business processes, including IT processes. An example is a multi-year plan to increase market share through mergers and acquisitions. Business Processes – Activities that result in the flow of goods, information, and value across the parties in the value chain to implement the Business Strategy. Examples are value chain processes such as create and manage products and services, market products and services, sell products and services, or perform order management. Information – Data managed by an adaptive enterprise information system for use by the Business Processes. Examples are customers, products, or orders. Application Services – Applications, such as Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM), presented as a collection of Web services, along with the mechanisms that support business process automation using these services. Infrastructure Services – Callable, application-independent routines that provide the basic IT environment functionality for building and executing applications. Examples are Web and Grid services, trust and security services, or database services. Virtualized Resources – Logical information processing elements that hide boundaries in physical resources (servers, storage, networks, printers, etc.), presenting the combined set of shared or pooled resources as a uniform, composite service. The physical resources and data center environment are included in this layer, too. Examples are virtual storage, physical storage, virtual local area networks.
  • HP recognizes companies face unprecedented and continuous change. While change is often unexpected and disruptive,  firms that adapt quickly gain a competitive advantage. These change drivers can be summarized into three primary customer benefits, simplicity, agility, and value all gained from an Adaptive Enterprise.
  • This shows the relationship of infrastructure to the business – HP designs the infrastructure to meet the business needs Stability - Examples: biz objectives keep running, financial return is predictable cost; e.g. businesses – ATM system (90% on NonStop systems) – cost billions an hour if network goes down; flip side – do transactions faster – implications for revenue generation (raises interest return by getting assets into your account a few seconds earlier; example: NYSE – if it goes down, millions of dollars in lost revenues Infrastructure components across the journey – stable, secure, managed, integrated etc Efficiency – optimize costs, Agility, eg Starbucks thought they were a coffee co., now offering wireless internet access to all customers – need agility to change biz model w IT in that way HP difference – our approach – architect & integrate across the journey Some customers are concerned today with just executing at a single stage, while others are wanting to move over time towards the top right. Wherever they are, and whether they want to move towards more agility or not, we will meet their needs. Stable : Standardize and ensure continuous secure availability for operations excellence Efficient : Integrate and optimize to drive quality of service and performance management Agile : Dynamically linked and synchronized for maximized business value
  • At HP, we recognize that not everything can be solved by software. And, even though I am responsible for the software division of HP, I know that I the products I offer are only a piece of the total solution that you need. The processes and people that work to deliver IT services to your customers are critical to your success as an IT organization. HP and our service partners are available to work with you to provide the assistance you need to develop and streamline your IT systems.
  • HP has been designing and implementing ITIL-based solutions for the past 8 years, and defines IT Service Management (as shown on the slide). It simply implies that implementing ITSM will provide an IT organization with service delivery capabilities that are stable, adaptive and cost-effective—the key to business innovation. Further, IT service quality will be measured and improved, thereby providing greater value to the business. These types of business impacts make ITSM a crucial factor in achieving sustained business success. Specifically HP’s IT Service Management definition talks about: IT transformation (bringing IT to a next evolutionary level) rather than IT reengineering (often read as: "doing it all over") Business driven (outward looking, customer oriented) rather than technology driven (inward looking, technology focused) Business IT alignment (customer relationship management, IT strategy planning) IT services (based on people, processes, and technology) rather than IT infrastructure (technology only) Service quality with metrics in areas such as security, continuity, availability, performance, and capacity Agility measured by speed, range, and ease as defined in the adaptive infrastructure program Service cost that is balanced with the quality and agility metrics and targets
  • HP recommends, as well as uses, a process-based, best-practices approach to addressing the changes necessary to evolve an IT organization. HP has developed an innovative approach to running the business of IT . We call this approach the ITSM reference model. ITSM looks at the people, process, and technology within IT to manage change. ITSM has been part of HP’s IT culture for well over 12 years. In fact, HP was one of the first major vendors to adopt a process-based approach to IT for its own internal use and has been delivering this same approach to our clients during the same time frame. By the way, it’s important to note that we do not confuse IT service management with merely thresholding on service level objectives. In fact, HP believes that IT Service Management is more than a product or service. It is a strategy not only for running the business of IT but for running IT for the business. The HP ITSM reference model is built upon the IT Infrastructure Library—ITIL . ITIL was developed in the UK and is a set of processes-based best practices from IT organizations. ITIL is one of the most powerful and widely accepted collections of best practices for IT service management. HP was the first major vendor to adopt the ITIL standard in 1996, has incorporated it into HP OpenView software, and has the highest number of ITIL-certified consultants across the globe.
  • HP’s ITSM model takes the ITIL descriptions and puts them into a structured model. It is like the picture on a puzzle box—like a road map that tells you where you are in the world of IT. Over the years, there have been many different lists and descriptions of IT processes—and as many different opinions about the relative importance of different processes. Because the ultimate goal of ITSM is to provide quality services to customers, HP has organized IT processes into five different groups that focus on different aspects of the service lifecycle. This industry-unique approach allows users to follow a complete service lifecycle . For example, starting at the upper left and proceeding clockwise around the model, users can follow the progress of an IT service from initial conception through delivery, eventual obsolescence, and updating or replacement by a new service. The processes in the Service Delivery Assurance group provide service information and change coordination to help the IT organization meet its service commitments. HP has placed the service delivery assurance process group in the center of the HP ITSM Reference Model because all other process groups revolve around this central hub. Without these processes, the other IT processes in the model cannot operate efficiently, nor can they be managed according to measurable service levels. The HP ITSM Reference Model is unique in part because it includes processes designed to foster proper business-IT alignment, which is critical to running IT as a business. The strategic processes contained in this group involve aligning IT strategy with business goals and developing a service portfolio that provides excellent business value. Service design and management processes provide the detailed service information required to design new services, manage the availability and quality of those services, and balance service quality with costs. Service development and deployment processes allow IT to build and test services and their related infrastructure components, such as procedures, tools, hardware staging, software installation, application development, and training plans, according to service design specifications. After a service and its components have been successfully built and tested, the service is deployed and integrated into a production environment, where it is tested again prior to final project signoff and release. These processes reduce service activation risks and minimize implementation costs. The processes identified under service operations work together to monitor, maintain, improve, and report on IT services. They provide command and control capabilities, as well as continuous service improvement and support for the IT environment. These processes also help maintain customer satisfaction by managing day-to-day IT customer service requests and confirming that service quality meets agreed-upon levels. HP uses ITSM model to coach IT organizations to leverage their people and processes to focus on the most critical business services that IT delivers. HP OpenView technology automates those processes, and further helps the organization measure and report on the business critical IT services that are most important.
  • When a customer follows our 4 design principles, it’s possible to achieve significant savings in several key areas of their IT infrastructure An agility assessment will show the customer where to start And since no two customers are alike, where each starts will differ… HP offers a range of solution starting points…. The data here brings the Adaptive Enterprise to life This shows a set of solutions from which customers can choose to start on the Adaptive Enterprise road and the estimated savings the customer can expect once they’ve implemented an Adaptive Enterprise project As the customer moves from stabilizing their infrastructure through consolidation for example, to standardizing their applications for greater efficiency and finally linking business processes to IT they will realize greater and greater savings HP also has a flexible business model to offer a choice of how customers can engage with us: From going it on your own to building with HP or buying from HP to a joint venture with Basically, HP offers everything a customer needs to transition to an Adaptive Enterprise Hardware, software, services, partnerships and financial services HPFS can help CIOs avoid making large cash outlays – especially as they are being asked to do more with less But it’s not only about acquisition – it’s also about managing IT effectively during its lifecycle to maximize its value (smooth, affordable trade ins, upgrades and add-ons, for example) And dealing with outdated equipment – when a customer leases through HPFS, HPFS takes on all obsolescence risk, takes everything back at the end of the lease to eliminate a customer’s disposition/environmental concerns
  • Management Buy-in: Can’t emphasis enough. Initial support and ongoing commitment via scorecard reports to show progress to plan. Changes are inevitable. With multi-million and even billion dollar deals in the funnel, priorities will be rest and resources will be redirected. This needs to be conveyed. We divided the program into 3 major groups: Management of Change – Organizational deployment and transition models Process – Process definitions: 3 phases: High level process 30k foot Mid-level process design – some technology influence Low-Level – detailed used cases with technology consideration
  • So I’ve talked about what we do from a Supply Chain perspective and from a customer operations point of view Now I want to take a look horizontally across all of HP IT We’ve already covered the Phase 1 results that we achieved in the merger But the next question is: How do we take it to the next level? It’s easy to hit a wall and see your progress slow down dramatically. So how do we continue to deliver results both in terms of efficiency and effectiveness? [Click] We believe that the focus during this next phase really has to be on improving business capabilities… …that’s what will enable us to achieve the aggressive goals that we’ve established for ourselves in this Phase 2 effort. …We’ve looked at 114 processes …We’re also using some standard process representation, such as SCORE ...[HP leadership in SCORE…leading role in defining those standards]
  • Yesterday slide Let’s take a look at the world as it was not too long ago Monolithic data centers ruled Environments were static, lots of batch type processing, end of month rituals, it took months if not longer to design and implement a new application IT resources were dedicated to applications and there was little or no linkage between the applications creating a rigid, inflexible infrastructure So when a change had to be it took time and lots of money Next Click to Today slide Things are vastly different Environments are dynamic You have little time to react to events You need to be able to "manage technology at the pace of change." You need to be able to manage everything from the data center to desktops, laptops, handhelds and camera-equipped cell phones The proliferation of these devices is the forcing function And as technologies such as RFID tags proliferate management only gets more and more critical and more complex. Customers, partners, employees want to be connected and receive services wherever/whenever they are in a format that suits the device they are connected with. Suppliers for example will want virtual access to your factories to manage supply chain. Next Click to Management is the key to success in meeting today’s demands head on.
  • Main idea: Management's role in the Adaptive Enterprise is extremely critical, because it's what we rely on to provide a dynamic link between business objectives and IT. Key thoughts: Management's role in the Adaptive Enterprise is to provide a dynamic link between business and IT. Through this dynamic link, IT can make breakthroughs in its cost structures. Simultaneously, the quality of performance in critical business services improve. Finally, IT's lag time between confronting an issue and implementing a business decision from a technology point of view is reduced. HP has backed this up with a portfolio of software and services that is leading the market in share, industry analyst opinion and thousands of satisfied customers around the world. Script: Management's role in the Adaptive Enterprise is extremely critical. It's what an enterprise relies on to provide a dynamic link between business and IT. When I talk about dynamically linking business and IT, I'm referring to IT having a legitimate understanding of what is important to the business, and insuring that IT’s attention and resources are directed towards those critical business services. Consequently, those critical business services are often automated, lowering the lag time between when they are required and when they are delivered; they become bulletproof. Always available. And, when IT considers that not all services are critical, it can selectively throttle back on the IT services that are less critical to the business, making breakthroughs in how it allocates its operations budgets. It's this kind of thinking that helps IT make a breakthrough in IT cost structures. Cutting costs is not about doing less IT. It's about doing it in a more efficient way, and in a manner that is prioritized relative to business requirements. Last year, the CIO of one of the ten largest retailers in United States said to me: "I have to reduce my IT budget by 10 percent, or $150 million. I just can't peel 10 percent off each department's budget and continue to be effective. I have to go about doing IT differently." He saw HP's approach, spanning people, processes and technology, as a ticket to doing IT differently. The return on the management investment this CIO has recognized has been outstanding. How do you go about improving quality while reducing budgets? By improving efficiency and automation. And by dynamically linking business and IT. Efficiency and automation are applied to those parts of IT that are delivering and supporting the most critical business services in the enterprise. It's also achieved by applying technology that not only has a deep understanding of your entire environment, and can effectively collect the information you need about IT, and also through the implementation of technology that can convert massive amounts of management information into actionable insight that your organization can use, or better yet, can be automated with related technology. It's this automation that creates a third benefit. Not only does it create breakthroughs in cost structures and improve the quality of critical business services, but it reduces the lag time between business decisions and IT enablement of those decisions. We're currently working with a large mobile phone operator in Europe. When new subscribers come on board, the desired approach is to perform an automated credit check on the new customer. If that credit check capability is unavailable, the mobile service provider can still provide a manual credit check. The difference is that a manual credit check requires nine times as many resources and far more time than an automated credit check. This is an excellent example of the value that automation offers. Through the implementation of automation, people can focus on higher value-added work while delivering higher quality services in less time. If you fail to recognize the value of automation, operations costs within your budget will continue to spiral upwards, forcing you to eventually cancel projects in innovation, and in the long run, reduce the quality of the services that you have been delivering. HP is best suited to render these benefits for several reasons. First, unlike other vendors, we recognize that good management means addresssing your people, processes and technology. This is proven through the broadest range of management software that spans management of business processes, IT services, and a hetrogeneous infrastructure spanning networks, systems, applications, and storage, coupled with the world’s largest force of ITIL certified professionals. This is why 100 of the Fortune 100 uses HP OpenView, and the HP is #1 in management software. Adding to that, HP was the only vendor to be a leader in Gartner 2003 Event Management, Gartner’s change and config management, META’s Event management MetaSpectrum Survey AND Forrester’s Wave scorecard for management. Whether you look at successful customers or analyst insight, HP is the consistent “must-consider” vendor in any IT management deal.
  • Slide 11: HP Software Offerings Today HP software offerings today provide unmatched scope – at all steps along the journey toward the adaptive enterprise And while most of the product announcements today are about OpenView, when we think about adaptive management, it spans broader than OpenView. I wanted to take a few moments to highlight a few of these areas: As you may know, we have very deep, system-level management solutions across our broad portfolio including Proliant Essentials, Insight Manager, and our recently announced Virtual Server Environment (announced May 6 th ). And you continue to hear about the great news related to our Utility Data Center offering, including an announcement we are making today (June 2 nd ) about a strategic relations that combines the HP Utility Data Center (UDC), HP’s market leading data center virtualization solution, with Opsware’s leading application automation software. UDC and Opsware will be integrated. HP Services will be an ‘Opsware Authorized Partner’, and HP will be able to distribute Opsware in conjunction with UDC. Our core offerings – Open View Network node manager and OpenView operations are installed at almost 100% of the F100 But I bet you did not know that HP is the leader in ITSM solutions… We have been the solution leader in this market for 5 years… The strength of our combined products and services ITSM presence has been recognized by analysts including Meta who says “HP is the clear front runner in the market” Though I can not name names, at persent, I can tell you that just recently our sales-led “Displacement program” has been successful as we have been selected by 8 pre-existing Remedy customers and 5 pre-existing Peregrine customers. And as for the upper right quadrant – HP ships UDC today – the innovative fully automated data center that is a integrated blend of virtualized infrastructure and business-aware management software. No other vendor delivers, in an installable product, anything close to UDC – where software and infrastructure work so closely together to enable the adaptive enterprise.
  • Instructor Notes: Enabling an Adaptive Enterprise is the highest level view of what HP offers to the market. Adaptive Enterprise is about the business of Public Sector, Health & Education and IT moving in lock step. It’s not just responding to change, but being able to master change. Mastery can be defined across three dimensions: time (quickly), range (broadly) and ease (how easy is it to respond to change). Given the velocity of change and demands facing our customers, they are looking for technology partners to enable them to be successful in delivering their mission – information and services to the public. Customers don’t buy an Adaptive Enterprise. They build one. And HP has a unique competitive edge to help customers on their journey toward an Adaptive Enterprise. This Darwin Reference Model is an amplification of the enterprise model we just discussed. This shows how we deliver focused technologies, services, and solutions to meet our customers needs across the enterprise. The Darwin Reference Architecture is a roadmap/framework/whatever for AE and HP Services provides a full range of capabilities to support it. Origins are how we drove the HP-CPQ merger of Business Operations and IT. (saved 3B savings vs. goal of 2B……500M was IT systems alone / 2.5B suppliers, people, etc) . HP Services core competency is its breadth of capabilities at AE levels of infrastructure, management, and integration. In the business solutions level HP won’t address all business processes, but will focus on specific processes – some of these for Public Sector, Health & Education are listed here Although HP may go to market with specific solutions in these industries, we will be still be working with service partners. HP DIFFERENTIATORS Provide clients with single accountability while leveraging best-of-breed solutions (& associated partners) Address client needs and preferences that drive solution (& partnering) decisions that emphasize flexibility -- and acknowledge heterogeneity Focus on target industries - and associated business requirements - expands opportunities for building executive relationships and seizing larger revenue opportunities Partnering approach complements HP’s core strengths in target industries Infrastructure, management & integration strengths provide required leverage to deliver integrated business solutions Opportunistically identifying solutions that are re-usable, scaleable that are developed by client, partner and/or hp that sit on the hp fabric
  • Transcript

    • 1. Managing the Adaptive Enterprise Business and IT Synchronized to Capitalize on Change Matt Anticevich ITSM Solution Architect 240-744-8109
    • 2. Quote slide “ I’m all for progress. It’s change I don’t like.” Mark Twain
    • 3. “ It’s not the strongest of the species that survives, nor the most intelligent; but the one most responsive to change.” Charles Darwin
    • 4. Change is the only constant
      • Change is constant
      • Everyday events that send ripples throughout the organization, and the IT that supports it
      • Change is unexpected
      • A merger, a new partner, a sudden shift in the competitive landscape, a new market opportunity
      • Change is disruptive
      • The goal is to minimize the impact of disruptions with an IT environment that is synchronized with the business
      • Change presents opportunities
      • The ability to adapt to change is a key advantage in business
      • To survive, compete and win, enterprises must adapt
    • 5. Government IT Trends
      • Transformation of organizations & agencies
      • Changing role of government/military personnel to fulfill oversight function
      • Increasing number of mandates, regulations, contracting requirements
      • Requiring contractors to adopt process standards – i.e. ITIL ® , ISO9000, CMM/CMMI, Six Sigma, etc.
      • Modernization of tool suites
      • Migration of contract types from T&M to PBSC
    • 6. Situation facing our customers
      • Multiple systems that are not interoperable
      • Interagency requirements for shared knowledge, systems, and networks
      • Separate networks for DOD, IC, DHS, and State & Local law enforcement
      • Systems and users that have varying security requirements
      • Cumbersome systems because of lack of common standards
    • 7. The Real Problem: Demand Outpacing IT Capability
      • Key Drivers
      Time IT Productivity | Service Delivery Quality | Agility (@ current staffing, workflow & tool leverage) Demands & Dependence on IT Gap is Widening Increased IT Accountability Branch Security Internet & Email Security Web Services Constituent Portals Purchased Application Implementations Old Culture & Processes Personnel Shortages Budget Deficits New Missions New Tactics E-gov Initiatives New Technologies
    • 8. The Adaptive Enterprise Business and IT synchronized to capitalize on change Business Information Technology Business benefits: simplicity, agility, value
    • 9. HP’s adaptive enterprise strategy
        • Architect and integrate heterogeneous IT environments for stability and control
      Business Information technology It’s the ultimate state of fitness in a world where every agency business decision triggers an IT event.
        • Establish and maintain a dynamic link between the agency and IT for business efficiency
        • Optimize resource utilization so supply flows to meet demand for maximum agency agility
    • 10. Adaptive Enterprise design principles Integration Simplification Standardization Modularity + + +
      • Applied consistently across:
        • Business processes
        • Applications
        • Infrastructure
      • Reduce number of elements
      • Eliminate customization
      • Automate change
      • Use standard technologies and interfaces
      • Adopt common architectures
      • Implement standard processes
      • Break down monolithic structures
      • Create reusable components
      • Implement logical architectures
      • Link business and IT
      • Connect applications and business processes within & outside the agency
    • 11. Darwin Architecture for the Adaptive Enterprise
      • Apply key design principles consistently across business, application, infrastructure
        • Simplification
        • Standardization
        • Modularity
        • Integration
      • Build around “service” as the unit of modularity
      • Separate functional and management perspectives
      • Leverage three design rules:
        • service-oriented architecture (SOA)
        • virtualization
        • model-driven automation
      Enterprise Business objectives & strategy Service delivery management Business services Application services Infrastructure services Service delivery IT Business management
    • 12. Adaptive Enterprise benefits Business and IT synchronized to capitalize on change Simplicity Agility Value
      • Reduce IT cost and complexity
      • Reduce agency operations costs
      • Make it easier to implement change
      • Ensure resources work together
      • Adapt in real time to agency needs
      • Drive change (time, range, ease)
      • Improve business processes
      • Accelerate time to market
      • Unlock the value of assets
      • Free up resources for innovation
      • Increase revenues and profitability
      • Create competitive advantage
    • 13. The Adaptive Enterprise experience
      • Migration to Adaptive Enterprise is a journey – not a “big bang”
      • Journey involves people and process – not just technology
      • Addresses existing pain points and areas for longer term transformation
      • Embraces heterogeneity – leverages investments, not “rip and replace”
      • Requires a collaborative approach – customer and partners + HP
      Business & IT strategy Architecture & governance Services, processes & measures People & change management Technology platform Program management
    • 14. Enabling the CIO’s journey CIO focus areas Business value of IT Operational Transformational HP helps CIOs manage critical transitions, while architecting and innovating for the future Adaptive + Business process + Time to value + Dynamic & synchronized + Flexible Efficient + Applications + Quality of service + Virtual & managed + Optimized Stable IT infrastructure Keep it running Simplified & standardized Predictable Architecture Economics Focus Objective
    • 15. Where are you on the Journey to the Adaptive Enterprise?
      • Adaptive
        • Manage end-to-end mission/business interactions across multiple services
        • Adopt a service management culture
        • Optimize utilization and performance of business processes and applications
        • Create a completely virtualized IT utility
      • Efficient
      • Virtualize key infrastructure elements
      • Formalize and automate IT processes
      • Link IT with the mission/ business – communicate, measure and deliver services
      • Align infrastructure and IT processes
      • Establish work flows and process owners with right skills, roles, metrics
      • Stable
      • Build firm foundation for IT infrastructure
      • Manage asset lifecycles
      • Ensure healthy resource management: servers, storage, network, PCs, printers, software
      Agility IT services Infrastructure Applications Business Operational Transformational
    • 16. Asset Based Charging IT as a Cost Center Technology Outcomes What does this mean? … . Transform from Silos to Services Service Based Charging Shared Service Centers & IT for Profit Business Outcomes IT Focused SLAs Business Focused SLAs Weak link between business & IT processes Business-IT process integration “ Run IT as a Business, For the Business”
    • 17. Where to Start? IT Transformation: Technology-centric  Service-centric IT Transformation IT Transformation Reduce costs & improve operational efficiency Increase value of IT to business critical processes Evolve IT’s business model to maximize price/performance ratio IT Process-Based Silos * Business Process-based Internal Service Provider Shared Services $ The IT Evolutionary Path Cost Center Profit Center * ITIL-based HP ITSM Reference Model IT Transformation Each stage is an iterative approach starting with a few services and expanding incrementally * Technology Service Customer Business Chart based on Gartner’s ISCo model Gartner Spring Symposium Itxpo presentation "Developing the Customer-Centric IS Product Line", B. Kirwin, March 2003 * HP additions
      • Key business imperatives
      • Current state on maturity path
      • Desired state
      • Focus on services delivered to the business
      • Standalone projects to achieve vision each with ROI and value
    • 18. For Public Sector, Health & Education - Adaptive Enterprise Translates into….
      • Access on demand to information and services
      • Collaborate and share information securely
      • Drive costs down or drive predictable costs
      • Improve performance (effectiveness/responsiveness)
      • Real-time intelligence for better decision-making
      • Streamline operations (efficiency)
      • Impact and improve overall quality of life (eLearning; Safety; socio-economic cohesion)
      • Optimize resource utilization
      • Increase transparency and build public trust
      • Support fair and competitive market environment
      • Improve constituent satisfaction
    • 19. Management is more than technology Process Simplify + standardize processes that maintain service delivery Integrate business and IT processes and align metrics People Define the right structure, roles, rewards, governance Develop a service-oriented culture and critical skill sets , Technology Instrument business processes into IT, and increase automation Optimize utilization and availability to match supply + demand
    • 20. What is the Information Technology Infrastructure Library (ITIL ® )?
      • Open, best practice for IT Service management
      • Created through sponsorship by the UK Government
      • Written by consultants, vendors and users
      • Accredited Education and Examination scheme
      • ISO9000 compliant
      • Independently managed by the IT Service Management Forum - a global organization consisting of more than 12,000 corporate and government members (25,000 individual members) responsible for advancing IT best practices through the utilization of the IT Infrastructure Library (ITIL ® ).
      • Used by over 10,000 major corporations and governments, including Albertson's, British Airways, Barclays Bank, Proctor and Gamble, ABN AMRO, Shell, Chevron, Capital One, Philips, Eaton Corporation, Hewlett-Packard, US State Department, Internal Revenue Service, ITA-Pentagon, Census Bureau, USDA, various IC agencies
    • 21. ITIL ® Structure
      • Service Support Library contains :
      • Service Desk/Incident Management
      • Problem Management
      • Change Management
      • Configuration Management
      • Release Management
      • Service Delivery Library contains :
      • Availability Management
      • Capacity Management
      • IT Service Continuity Management
      • Financial Management for IT Services
      • Service Level Management
      Other Volumes in the Library Security Management Customer Liaison IT Services Organization Managing Facilities Management Planning and Control for IT Services Quality Management for IT Services The Business Perspective ICT Infrastructure Management Application Management Planning to Implement ITIL
    • 22. The Foundation of an Adaptive Enterprise is IT Service Management (ITSM)
      • An approach to transform
      • IT organizations to being
      • business and mission-driven
      • focusing on continuous business-IT alignment ,
      • delivering IT services at agreed-upon service levels , quality , agility , and cost targets ,
      • and to support the business (agency) in becoming an Adaptive Enterprise .
    • 23. What is an IT Service?
      • An IT SERVICE can be defined as a set of related functions provided by IT systems in support of one or more business areas (bureaus, agencies, departments, etc). It can be made up of software, hardware, and communication facilities, but the customer (end-user) perceives it as being a self contained, coherent entity.
      End-User Customer Support Mgt Server Mgt ApplMgt Storage Mgt Network Mgt Desktop Mgt E-mail Service
    • 24. HP ITSM reference model Best-practice process model
      • Standardization & Breadth: The best of ITIL and COBIT in one model
      • Proven: Applied by thousands of IT organizations
      • Modular: Allows a step-by-step implementation
      • Depth : Includes work instructions and procedures for each process
      • Adaptive: requires cultural change but not necessarily a big reorganization
      • IT Governance linked to IT processes
    • 25. HP ITSM reference model IT business assessment Service planning IT strategy and architecture Customer management Service build and test Release to production Availability management Continuity management Security management Capacity management Financial management Service-level management Change management Configuration management Operations management Problem management Incident and service request management
    • 26. Solution packages for your IT transformation business value Stability Agility Efficiency IT maturity Business processes IT resources IT services Centrally monitor heterogeneous environments Infrastructure management Manage business- critical applications Application management - Business service views - Service health monitoring - Root-cause analysis - Impact analysis Service-driven operations - Business process modeling - Visibility into business process execution - Financial impact analysis Business process management - SLM - Configuration - Problem - Incident & request - Change IT processes core “Consolidated service desk” - Continuity, availability, capacity - Financial management, security - Build, test, release IT processes advanced - Advanced IT/business alignment - Manage investments - Regulatory compliance IT governance
    • 27. Adaptive Enterprise starting points
      • Utility Computing 10–40%
      • Real-time Solutions 10-40%
      • Business process outsourcing 10-50%
      • IT Consolidation 10–25%
      • IT Service Management 20–40%
      • Enterprise Integration 10-40%
      • Security 20-50%
      • Enterprise Portal Solutions 10–50%
      • IT Virtualization 10-40%
      • Storage Consolidation 20-50%
      Adaptive (Business Processes) Efficient (Applications) Stable (Infrastructure) Agility Assessment Results Increased savings (%) 0 – 12 mos. 12 – 18 mos. 18 – 36 mos.
    • 28. The ITSM effect Initiatives Software New initiatives People & process Infra- structure People & process Infra- structure Software Time Agility Service Quality $ Revenue Cost
      • IT optimized to meet the changing business needs and accelerate company strategy
      • Assure quality of critical business services
      • Achieve breakthrough reductions in cost structures
      • Demonstrate and extend the value IT delivers to the enterprise
      • Achieve regulatory compliance and validation
    • 29. Results: Sustained business model operating at reduced costs and increased business value Source: HP IT department 10% 40% Operation Consolidation Innovation 30% 60% Today 3 years from now 20-25% 35-40%
    • 30.
      • Improve the efficiency of the organization, IT staff and IT customers
      • Improve the effectiveness of the processes
      • Improve the ability of the technology to automate the processes
      • Enable better measurement and control of the IT environment - key to meeting contractual agreements
      ITIL ® / ITSM Value Proposition
    • 31. So how did HP approach IT Service Management?
    • 32. HP’s Results So Far
      • Downtime reduced 49%
      • Turn Around time for change requests went from 14 days average to 1.5 days average
      • Time to resolution dropped 90%
      • Customer satisfaction score increased from 2.5 to 4.2 (on 5 point scale)
      • First NO INCIDENT DAY on Feb 5, 2003
      • ITSM process IT savings: 20%
      • Incremental instrumentation savings: 18%
    • 33. The HP IT merger journey Adaptive (Business Processes) Efficient (Applications) Stable (Infrastructure) 85 Data Centers 300 Data Centers Today Pre-merger Innovation = 34% of IT spend Innovation = 28% of IT spend IT cost = 3.5% of revenue IT cost = 4.6% of revenue 19,000 servers 25,000 servers 4,000 applications 7,000+ applications Phase 1 Phase 2 Products Supply Chain Demand Chain Planning Customer and Sales Ops Marketing Order Management Finance Sourcing Making Delivering Indirect Procurement 11 Data Centers Target Innovation = 50% of IT spend IT cost = <3.0% of revenue 10,000 servers 1,500 applications
    • 34. Today management is about managing technology at the pace of change … and it has become the key to success in a fast-changing world Management
      • Dynamic environment
      • No time to react
      • Increasing complexity
      • Device proliferation
    • 35. Leadership in management software for Managing the Adaptive Enterprise
      • All Fortune 100 companies are using HP OpenView management software
      • 1000’s of ITIL certified IT Service Management experts
      • End to end management spanning business process, IT services and heterogeneous environments
      • Integrate people, process & technology to run IT as a service delivery business
      Enables shift of IT investment from maintenance to innovation
    • 36. HP Software Offerings Today
      • Real-time business agility
      • OpenView
        • Web Services management engine
        • Dynamic NetValue Analyzer
      • Utility Data Center
        • Utility Controller
      • Business efficiency
      • OpenView
      • Storage Accountant
      • Service Desk
      • Service Information Portal
      • Service Navigator
      • Service Activator
      • Service Quality Manager
      • Reporter
      • Internet Services
      • Transaction Analyzer
      • Smart application plug-ins
      • Internet Usage Manager
      • Virtual Server Environment
      • Business stability
      • OpenView
        • Operations
        • Network Node Manager
        • Performance Insight
        • Data Protector
        • TeMIP
        • Storage Area Manager
        • Self-healing solutions
      • ProLiant Essentials
      • Insight Manager
      utilization management & control discrete partitioned integrated clustered virtualized federated resources services business processes
    • 37. HP ITSM reference model Enabled by OpenView (OV)
      • OV Service Navigator
      • OV Performance Management
      • OV Web Management
      • Software Distribution
      • Storage Management
      • OV Web Management
      • OV Operations Management
      • OV Performance Management
      • OV Service Desk
        • Configuration
        • Change
        • Project
        • Organization
        • Service Level Management
      • OV Service Desk
        • Organization
        • Service Level Management
      • OV Service Desk
        • Configuration
        • Change
      • OV Network Management
      • OV Web Management
      • OV Service Navigator
      • OV Performance Insight
      • OV Operations Management
      • OV Performance Management
      • OV Service Reporter
        • OV Service Desk
          • Service Calls
          • Incidents
          • Problem Management
    • 38. Proof Points – HP’s Commitment to ITSM
      • Pioneer in IT Service Management
      • 10+ years experience in IT Service Management plus 20+ years in best practice operations data centre management
      • itSMF board members and Corporate member
      • Developer, reviewer and user of ITIL
      • Industry-broadest partnership & community for hp OpenView
      • Industry-leading Solution
      • 135,000 hp OpenView installations including all Fortune 500 enterprises
      • Have end-to-end value proposition across HP
      • Present and future roadmap (including Web Service Management)
      • Complete Service Offering
      • 35 support centers; 120 education centers
      • 3000+ dedicated service management consultants across HP Services
        • Most ITIL Foundation certified; >10% ITIL Service Manager
      • 500+ dedicated hp OpenView support engineers
      • 2500+ students trained on ITIL annually with HP Education
    • 39. HP – in the business of IT service management since 1994
      • 1994: HP began working with ITIL
      • 1996: Created the HP ITSM Reference Model v1.0
      • 1997: HP ITSM Reference Model launched to the public
      • 1997: HP acquired Prolin, leading ITSM tool vendor
      • 1997: HP leading founder of itSMF USA
      • 1999: HP leading founder of itSMF Canada
      • 2001: HP/Compaq: developers of Microsoft's ITIL-based framework (MOF)
      • 2002: HP collaborated on the book “ICT Infrastructure Management”
      • 2000-present: HP representative on itSMF USA board of directors
      • 2003: HP released HP ITSM Reference Model v3.0
      • 2003: HP leading founder of itSMF Japan
      • 2003: Ministry of Transportation, Canada publicly acknowledged HP as a major contributor to its award-winning ITSM program
      • 2004: HP Services Global Delivery India Center – one of the first organizations to receive BS15000 certification
      • 2004: HP Services acquired two industry-leading ITIL/ITSM education and consulting companies with key stakeholders who were involved in the original writings of ITIL and start-up of itSMF
    • 40. HP’s value proposition to Public Sector Infrastructure Efficiency hunt: drive out cost, simplify, standardize, consolidate, for improved ability to change. Security, ITSM, IT Consolidation and Mobility. Integration Web Services & Portals; Application Architecture; Enterprise Integration; Rich Media; Data/Voice Interoperability; …Oracle, Microsoft, BEA, etc. Business Solutions Customer focus: Student Information Systems; First Responder Planning & Response; Emergency Notification; Military & Intelligence; HIS; PACS; Treasury/Finance/Taxation; Case Management for Social Services, Secure ID Cards; Drivers Licenses. Horizontals: BPDM, Supply Chain (RFID); F&A/HR BPO; Network & Service Providers. Regulatory focus: Basel II, Patriot Act, HIPAA, etc. Management Use HP management services, solutions and capabilities to provide better instrumentation of IT and the business. Our Adaptive Enterprise strategy positions HP to deliver more agility, transparency, accountability, and return on IT through industry solutions. HP’s Darwin Reference Architecture for AE Business processes Extend and Link Architect & Integrate Infrastructure Business strategy Management Applications
    • 41. HP ITSM Federal Customers Other agencies where HP has provided services on a variety of scales, either directly or via partnerships:
      • Office of Naval Intelligence
      • National Security Agency
      • National Security Coucncil
      • Langley
      • SOCOM
      • PACAF
      • Army War College
      • TVA
      • Census
      • US AF
      • US Army
      • US Navy
      • USDA
      • Senate
    • 42. Questions?