Money making machineOpen source spiritEncourage openessLess commercialMore testimonials Successes, lessons learned etc.
Service management time to fly, time to die it sm-fbe 2012
Service Management:Time to Fly or Time to Die?
Live the Business ITILv3 IT Service Management IT-Business integrationAlignment’ was no longer enough IT and Service Management need to progress. serve the business stakeholdersdifficult to persuade businesses to support or to fund Service Management the ITSM community is unable to show the value in a clear way loud call for a revolution coming from the business Is it really more “control” that we need, or the ability to think beyond that control
Time to Fly or Time to Die?The combination of a rapidly changing IT environment and aneconomic downturn are placing big demands on CIO’s and ITDepartments. More than ever before, the ITSM community isunder fire to explain its added value. So where do we go fromhere?This session shows how new ways of connecting with theBusiness can drive ITSM to its next stage of evolution.Looking at all elements of the organization, from HR and FacilityManagement to Business Desk, opportunities for integratedquick wins become apparent. This, combined with our existingservice experience, can bring immediate value and restoreconfidence. But is your organization ready?
Time to FlyChanging IT environment IT Departments ITSM communityAdded Value Connecting with theBusiness ITSM evolution Integrated quick winsService experience Immediate value Restore Confidence But is your organization ready?
Topics• Have empathy with IT• Let’s put on the Business Hat• Tips to Fly• Is your organization ready?
IT Departments under fire!• Consumer IT overtaking Business IT• Business more IT savvy• Innovation vs. Cost reduction• Cloud computing• Returns from IT investments vs. Technology spending
Service Management under fire!• IT-centric• Complex to use• Limited (re)use of people, process or tools• Costly and proven value unclear• ITIL and ITSM community lagging behind
IT Industry … where is it heading? Distant past Recent past Present Data & Technology focused Internet & Process focused Cloud, Social & Mobile focused IT and Business seperated IT and Business aligned IT and Business integrated What will the IT Department look like in 2020?Reference: http://www.silicon.com/management/cio-insights/2011/06/29/video-the-future-of-the-it-department-39747638/
So what do you think?1. No IT Department by 2020 ?2. IT Department driving the Business ?3. IT Department which is fully integrated with the Business ?
IT Department’s dilemma Traditional Current trendReduce Costs New capabilitiesEfficiency ResponsivenessImproved security Open architectureIT predictable Business AgilityExecute to plan Strategic focusPush solutions Pull solutions
The Challenge! Cost Business & IT Integration IN/Outsourcing Innovate Partner with the Business Simple & Agile ProcessesCloud computing Mobility Social Media
The Business and IT perspectives Business view of IT Business perceptions of IT • Overly complex • Slow response• Competitors at their heels • Cost focus• Need to respond to change daily • Technology focus• Customers want more for less • Performance • Project failureTo succeed: • Information diarrhea • Data Quality• Stable • Poor support• Flexible • Unclear ROI• Responsive
The Business and IT perspectives IT view of the Business IT perceptions of Business • Unclear requirements • Reactive mode• Overload and reactive to crisis • Changing priorities• Constant change, shifting priorities • No early engagement• Mixture for new and existing technologies • Excessive resource pooling• Constant backlog • Low value automation • Data qualityTo succeed: • Legal compliance• Modern & Cost effective • Outsourcing• Quality • Budget constraints• On-time delivery
Business / IT perspectives Service Management Business view of IT IT view of the Business• Complex to use • Last minute• Slow to react • Slow to react• Not a Business fit • No documentation• No access to tool • Access to tool• Not our Business • Resistance to IT• Business/IT divide • No time to discuss• Communication • Business/IT divide• Different culture • Communication• Expensive • Different culture
ITIL is a success, right?So why does an estimated 70% of organizationsfail to achieve the business value they expected?
Key Reasons given• Lack of Management commitment• Saying “yes” but meaning “no”• ITIL is the objective• No continual improvement process• Forget the procedures. Lets do as before• ITIL will never work here• Unable to specify the valueSource: by Paul Wilkinson (http://bsmreview.com/itilresistance.shtml)
Another reason might be … The frogs that decided to jump!
Focal Areas for Improvement Service Management with leadership IT Financial Management IT Culture IT(SM) Marketing Business & IT Integration
Service Management Leadership• Enterprise Service Management Business Business Business Sales/ Unit Unit Unit Marketing Human Facility IT Finance Resources Management Holistic Approach • Vision, Mission, E-Strategy alignment, Scope • Selecting the right approach • Enterprise-wide roles • Value and ROI responsibilities
Service Management Leadership• SM Framework ... but with caution – Keep the stats in mind – ITIL/ ISO 20K certification is not the goal – Select Key processes: • Get one right in terms of: – User satisfaction – Quality – Value • Expand scope from there
IT Financial Management• IT Financial Management maturity• Develop a (simple) Cost optimization approach• Establish a ROI process
ITFM Maturity IT as a Business partner Sustainable Improvement IT as a Profit Center Improving Business Partner Value IT as a Cost Center Profit Center IT is unpredictable Control ReactiveIT Accounting IT Charging IT Budgeting Accurate Predictive Business Aligned Insight Value Reliable Efficient Transparent Accountable Strategic Level 1 Level 2 Level 3 Level 4 Level 5
IT Cost Optimization engagement• Budget allocation – Projects vs. Maintenance? ID Initiative Owner Effort Risk Cost Savings• 1 The key - get people 5involved Server consolidation Jan Hi €300k €500k2 – everyone has a Business head! Runbook automation Piet 1 Lo €100k €70k3 Terminate application xy Sam 2 Lo €35k €700k4 Freeze legacy upgrades Inge 3 Lo €0k €35k5 Software licence audit Ingrid 3 Med €3k €30k
Return on Investment Process• Not just to get the project approved!• Capture financial and organizational benefits• Ability to think beyond the horizon• Demo the value of IT as strategic partner• Tool to improve communication between Business and IT• Focus on business culture and IT value Design Screen Measure
IT Culture• Improve the Customer focus• Climate of accountability using Financials• Shift focus from Maintenance to Innovation• Create the right CSI environment
IT(SM) Marketing• Know what to sell• Know how to sell• Report ongoing success!
Business and IT Integration• Effective Governance• IT Performance Management• IT Skill enhancement – Finance – Business Relationship – Business process experts Based on Balance scorecard from Kaplan & Norton
Before crossing the bridge• Are existing processes efficient?• Are they easy to understand and use?• Can they be replicated and shared?• Does current technology support the approach?• Do you have the skills to make it happen?
Identify the Value• Process reuse• Automation of Business specific processes• Shared technology• Improved communication• Merging of Support initiatives• Enterprise dashboarding• Shared resources• Business and IT knowledge exchange
ESM Touch points Strategic Tactical Operational IT Department Business Operational Tactical Strategic• Service Desks • Service Level • Business Relationship• Incident Management • Supplier • Business/IT Strategy• Request Fulfilment • Asset/Contract • Governance
Gain confidence• Look for low hanging fruit – Business process automation • It does not have to be an ITIL one: – Facility Management – HR Procedures – Theft and Security – Transport and Delivery – Service Desk integration • Enterprise Service Desk • Mutilple Service Desks using same technology • Shared Knowledge Base
Gain momentum• Establish the ESM Team• Create a shared vision and execute• Gain visibility at Board level• Culture change across the enterprise
Tips to Fly SM Community Enterprise IT Department
How can we improve as One?• Terminology – ITSM, ITIL (2011), itSMf • Why not ESM, ESMBoK and ESMforum?• ITIL – room for improvement – The Books: theory vs. reality – Proven value – Commercial – Few documented successes – Future evolution – Online community
The future is bright Business Business Information IT Technology• Key player between Business and Technology• New skills required to drive it forward• Experts in: Operational models, Process automation and IT Business• Enterprise Service Management will rock!• Integration with Project Management and SDLC
Is your organization ready?• Board members to think “process”• Matrix-type management structure• IT becoming more business centric• Enterprise Service Management. The way to go!
Presenter• John M Walsh• Enterprise Architect & IT Adviser• Contact: www.johnmwalsh.com firstname.lastname@example.org
One more thing ... Remember the frogsLets not just decide.Lets jump into the Business pond and … Live the Business! Thanks for listening