Building Organizational Success
Bridging the Gap
Fixing the problem of ITSM
and ITAM alignment
Building Organizational Success 2
Agenda
• The evolution of ITAM and ITSM
• ITAM’s inconsistent position in IT organisatio...
Building Organizational Success
How did we get here?
IT Asset Management
• Developed regionally in the
1980s and 1990s
• F...
Building Organizational Success 4
ITAM’s Business Position
Within IT Service
Management
Other
Within
Finance
Direct report...
Building Organizational Success 5
Where are we today?
• Limited engagement between practitioner
communities
• Separate con...
Building Organizational Success 6
Evolving corporate IT
Consumerize
the front-end
Industrialize
the back end
Manage Servic...
Building Organizational Success 7
Key IT Trends Shaping ITAM
1980s to mid 2000s...
• The PC revolution
• Physical devices
...
Building Organizational Success 8
The rising cost of IT
$0
$50
$100
$150
$200
$250
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09...
Building Organizational Success 9
Alignment is vital for effective IT
management
• ITSM can’t fully understand the cost of...
Building Organizational Success 10
ITIL version 2 – “Asset”
“Literally, a valuable person or
thing that is ‘owned’”
Assets...
Building Organizational Success 11
ITIL version 3 – “Service Asset”
“Any Capability or Resource of a Service Provider”
The...
Building Organizational Success 12
Aligning with the IT service
blueprint
Service
Options
Infrastructure
Models
Applicatio...
Building Organizational Success 13
Aligning with the IT service
blueprint
• Asset information is a
fundamental building bl...
Building Organizational Success 14
Without ITAM, the service is not
fully understood
• Purchase or instantiation costs
• A...
Building Organizational Success 15
Supplier Assets in the
infrastructure
• Many supplier assets may need to come under
Ass...
Building Organizational Success
Aligning multi-sourced IT service
provision with Asset data
Line of Business,
partners, cu...
Building Organizational Success 17
Critical to align ITSM and ITAM for full
supplier-service understanding
Detailed, holis...
Building Organizational Success 18
“The age of the customer”
• IT is striving to be increasingly customer centric
– a key ...
Building Organizational Success 19
Cloud service sprawl
• Average of 545 cloud
services per company in
large enterprises.
...
Building Organizational Success 20
Challenges of Managing Cloud
Services
• Visibility – may need to use unorthodox
discove...
Building Organizational Success 21
Case study – the power of
aligning ITAM with ITSM
• The organisation is a large medical...
Building Organizational Success 22
Case study – the power of
aligning ITAM with ITSM
• A key requirement is Big Data
• Thi...
Building Organizational Success 23
Case study – the power of
aligning ITAM with ITSM
• They need specialist data storage a...
Building Organizational Success 24
Case study – the power of
aligning ITAM with ITSM
• The organisation spotted an opportu...
Building Organizational Success 25
Case study – the power of
aligning ITAM with ITSM
• This required good understanding of...
Building Organizational Success 26
Case study – the power of
aligning ITAM with ITSM
The result:
Building Organizational Success 27
Summary
• IT is increasingly expected to demonstrate cost
effectiveness and value to th...
Building Organizational Success 28
Asset can align its internal
maturity evolution with ITSM
What is owned?
Where is it?
W...
Building Organizational Success 29
Summary
• IT is increasingly expected to demonstrate cost
effectiveness and value to th...
Building Organizational Success 30
The Asset Manager is ideally
placed…
• …to understand how the infrastructure supports t...
Building Organizational Success 31
Any Questions?
@JonHall_
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Bridging the Gap: Fixing the problem of ITSM and ITAM alignment

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Presentation prepared for the 2014 IAITAM European ACE, Budapest.

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  • A significant part of the cost is either focused on maintaining or purchasing enterprise assets.
  • A cloud service offering can be modelled as three fundamental parts: Application Model (e.g. Web Server, Application Server, Database Server) Infrastructure Model (the way the application model is scaled and deployed, for different purposes) Service Options (additional, more granular options such as additional capacity or support)
  • A cloud service offering can be modelled as three fundamental parts: Application Model (e.g. Web Server, Application Server, Database Server) Infrastructure Model (the way the application model is scaled and deployed, for different purposes) Service Options (additional, more granular options such as additional capacity or support)
  • Geographical resilience- if a datacenter is impacted by a local issue, what services are impacted?
  • At true up time, the supplier will be in front of the CIO or decision maker who will of course paint a positive picture of the replationship
  • Bridging the Gap: Fixing the problem of ITSM and ITAM alignment

    1. 1. Building Organizational Success Bridging the Gap Fixing the problem of ITSM and ITAM alignment
    2. 2. Building Organizational Success 2 Agenda • The evolution of ITAM and ITSM • ITAM’s inconsistent position in IT organisations • The current evolution of corporate IT • Challenges with lack of alignment • How ITAM can engage with today’s ITSM • Case study
    3. 3. Building Organizational Success How did we get here? IT Asset Management • Developed regionally in the 1980s and 1990s • Frequently driven by regulatory or tax obligations (e.g. In France) • Key sponsor frequently Finance department. • Built around procurement and/or request fulfilment teams • Asset-niche focused toolset vendors: Peregrine, StaffAndLine, etc IT Service Management • ITIL emerged from the UK Civil Service through early-mid 1990s. • ITSM platorms proliferated in enterprise, e.g. Remedy • Maturity path built around CMDB, with little focus on asset financials and lifecycle 3
    4. 4. Building Organizational Success 4 ITAM’s Business Position Within IT Service Management Other Within Finance Direct report to CIO/CXO Source: The ITAM Review survey: “Where Does ITAM Sit In The Business?, Nov 2011 http://www.itassetmanagement.net/2011/11/25/itam-integrated-itsm/
    5. 5. Building Organizational Success 5 Where are we today? • Limited engagement between practitioner communities • Separate conferences, trade groups, publication • IT under increased demands to show business benefit and cost effectiveness • Rapidly evolving IT technology landscape
    6. 6. Building Organizational Success 6 Evolving corporate IT Consumerize the front-end Industrialize the back end Manage Services
    7. 7. Building Organizational Success 7 Key IT Trends Shaping ITAM 1980s to mid 2000s... • The PC revolution • Physical devices • Install-based licensing Mid 2000s to present... • Virtualization • Capacity-based licensing • Outsourcing 2014... • Cloud infrastructure and applications • Mass mobility & BYOD • Usage-based licensing • Multi-sourced IT ? 2015-2020 • Hybrid Cloud • The Internet of Things • Consumerisation • IT as a dynamic Service Broker
    8. 8. Building Organizational Success 8 The rising cost of IT $0 $50 $100 $150 $200 $250 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 SERVER SPENDING POWER + COOLING SERVER MANAGEMENT (PHYSICAL) SERVER MANAGEMENT (VIRTUAL) Source: U.S. and Worldwide Service Shipments and Installed Base, 1996-2011, Dec, 2012, IDC
    9. 9. Building Organizational Success 9 Alignment is vital for effective IT management • ITSM can’t fully understand the cost of providing a service without understanding the assets on which the service depends. • Asset Management can’t optimise spending without understanding what services the assets underpin.
    10. 10. Building Organizational Success 10 ITIL version 2 – “Asset” “Literally, a valuable person or thing that is ‘owned’” Assets will often appear on a balance sheet as items to be set against an organization’s liabilities.
    11. 11. Building Organizational Success 11 ITIL version 3 – “Service Asset” “Any Capability or Resource of a Service Provider” The ability of an Organization, person, Process, A pplication, Configuration Item or IT Service to carry out an Activity. Capabilities are intangible Assets of an Organization A generic term that includes IT Infrastructure, people, money or anything else that might help to deliver an IT Service. Resources are considered to be Assets of an Organization
    12. 12. Building Organizational Success 12 Aligning with the IT service blueprint Service Options Infrastructure Models Application Model Offering
    13. 13. Building Organizational Success 13 Aligning with the IT service blueprint • Asset information is a fundamental building block of the service Level Assets Cost type Cost Application Server Bronze Single Amazon Cloud VM Opex $25 per month Silver 4 private cloud VMs, 8 vCPUs, 16GB RAM Opex $200 per month Gold 4 dedicated servers, 8 CPUs, 24GB RAM Capex $8000 per unit
    14. 14. Building Organizational Success 14 Without ITAM, the service is not fully understood • Purchase or instantiation costs • Associated contracts • Software license implications • Geographical resilience
    15. 15. Building Organizational Success 15 Supplier Assets in the infrastructure • Many supplier assets may need to come under Asset Management – Assets deployed on company site, particularly in mixed environments – Supplier assets allocated to business users – Supplier assets running licensed company software • At end of contract, need up-to-date view of on- site supplier assets and their impact.
    16. 16. Building Organizational Success Aligning multi-sourced IT service provision with Asset data Line of Business, partners, customers CUSTOMERVIEW Customer IT, HR, Facilities Catalog Solution SUPPLIERVIEW Service Org Internal Provider + + +ITSM Platform New Assets instantiated Existing Assets allocated External ITSM Platform External Provider + + ++ Supplier provided Assets Private supplier assets
    17. 17. Building Organizational Success 17 Critical to align ITSM and ITAM for full supplier-service understanding Detailed, holistic view of costs, performance, trends. Strategic / Top-Down IT Asset Management Operational / Bottom-Up • Supplier assets • Software licenses • Asset contracts • Warranties, support and maintenance agreements • Service costs Supplier Management • Enterprise licenses • Supply and lease contracts • Master maintenance and service agreements • Customer and vendor obligations Strategic / Top-Down • Mean time between failure • End user-satisfaction • SLA performance IT Service Management
    18. 18. Building Organizational Success 18 “The age of the customer” • IT is striving to be increasingly customer centric – a key objective cited by CIOs for 2014 • Customers expect more choice and autonomy • Cloud services make independent adoption of IT services much easier • “Bring your own” culture seen as a significant productivity driver
    19. 19. Building Organizational Success 19 Cloud service sprawl • Average of 545 cloud services per company in large enterprises. • Does your business have more cloud services than it needs? • 70% feel that a fifth or more could be consolidated 48%34% 2010 2013 YES Skyhigh Networks: Cloud Adoption and Risk Report, Q3 2013
    20. 20. Building Organizational Success 20 Challenges of Managing Cloud Services • Visibility – may need to use unorthodox discovery techniques such as web log capture • “Shadow purchasing” outside IT • Multiple applications doing same tasks • Business expectations • The Asset Management function is best positioned to effect better control
    21. 21. Building Organizational Success 21 Case study – the power of aligning ITAM with ITSM • The organisation is a large medical research charity in the UK • They are directly involved in frontline scientific research • Medical research has significant and specialist IT requirements • The IT organisation needs to provide excellent capabilities in a cost-pressured environment
    22. 22. Building Organizational Success 22 Case study – the power of aligning ITAM with ITSM • A key requirement is Big Data • This requires specialist equipment • External cloud is not an option, primarily due to the volume of data transfer “The problem we’d have for active data is the access speed: A single genome is 100Gb. Imagine downloading that from Google!”
    23. 23. Building Organizational Success 23 Case study – the power of aligning ITAM with ITSM • They need specialist data storage and retrieval equipment. • Data growth is rapid. • A frequent refresh cycle is expected. “We buy kit that’ll fit our needs, front-loaded with three years support costs. After that time, you’re invariably needing bigger, better, faster”
    24. 24. Building Organizational Success 24 Case study – the power of aligning ITAM with ITSM • The organisation spotted an opportunity to repurpose, rather than dispose of, the specialist hardware. “We used the old system for second tier data: desktop backups, old data”
    25. 25. Building Organizational Success 25 Case study – the power of aligning ITAM with ITSM • This required good understanding of upcoming requirements of two very different user groups • A much cheaper support supplier was found for the older equipment: Backup does not need “gold-standard” support. • Significant savings were made in not purchasing new equipment for PC backups.
    26. 26. Building Organizational Success 26 Case study – the power of aligning ITAM with ITSM The result:
    27. 27. Building Organizational Success 27 Summary • IT is increasingly expected to demonstrate cost effectiveness and value to the business • There is wide adoption of service orientation and multi-sourcing • The range of assets in the organisation is rapidly broadening • Without effective alignment of ITSM and ITAM, it is not possible to give the CIO a complete picture.
    28. 28. Building Organizational Success 28 Asset can align its internal maturity evolution with ITSM What is owned? Where is it? Who is it assigned to? How much did we spend on it? IT Focused Business Focused Equipment Focused ITAM Maturity What does it support? How can we control changes? How can we discover more? What is its role in our key services? How can we optimize its use?
    29. 29. Building Organizational Success 29 Summary • IT is increasingly expected to demonstrate cost effectiveness and value to the business • There is wide adoption of service orientation and multi-sourcing • The range of assets in the organisation is rapidly broadening • Without effective alignment of ITSM and ITAM, it is not possible to give the CIO a complete picture.
    30. 30. Building Organizational Success 30 The Asset Manager is ideally placed… • …to understand how the infrastructure supports the business of IT. • …to work with Service owners and designers, to understand how IT assets underpin IT services • ...to work cross-functionally with ITSM teams, to identify opportunities that might otherwise be missed • ...to provide expert consultancy on the commercial and compliance impact of service design decisions • …to be a key trusted source of information to the CIO
    31. 31. Building Organizational Success 31 Any Questions? @JonHall_

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