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Best practices: Software-as-a-Service for IT Service Management
Best practices: Software-as-a-Service for IT Service Management
Best practices: Software-as-a-Service for IT Service Management
Best practices: Software-as-a-Service for IT Service Management
Best practices: Software-as-a-Service for IT Service Management
Best practices: Software-as-a-Service for IT Service Management
Best practices: Software-as-a-Service for IT Service Management
Best practices: Software-as-a-Service for IT Service Management
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Best practices: Software-as-a-Service for IT Service Management

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  • 1. Best practices: Software-as-a-Service for IT Service Management White paper
  • 2. Table of contents Why service management is more important now than ever . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 How software-as-a-service can drive financial benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 What to look for in a SaaS provider . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Market-leading technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Rapid time to value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Completeness of solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Subject-matter expertise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Flexibility to move in-house . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Long-term commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 True service levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Customer case study: Value in 14 days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 HP Service Manager and HP SaaS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Next steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
  • 3. “Software-as-a-Service (SaaS) enables firms to significantly reduce upfront costs and even eliminate some costs—like one-time software license purchases . This fact alone may make it easier for software buyers to get budget approval in economically tight times .“ Firms Can Benefit from SaaS in Times of Economic Uncertainty, Forrester, July 2008 It is tempting to react to the downturn in the The main motivation for service management projects economy by cutting costs across the board, including is to address negative customer satisfaction issues investments in customer satisfaction . However, associated with the help desk . Typically, most process customers will not put up with poor service in any improvement programs, therefore, start by addressing economy . Investments in service management today the Incident and Problem Management IT processes will not only lead to improved customer satisfaction, within the help desk; and at some point, the help desk but ultimately customer retention . becomes a service desk . Of course, these investments must be made Today’s service management solutions rely on wisely . One attractive option is to deploy service best-practice frameworks such as Version 3 of management software using the software-as-a-service the IT Infrastructure Library (ITILv3) . IT Service (SaaS) model . The SaaS model offers several financial Management (ITSM) is a core component of ITIL and advantages including lower upfront costs, reduced involves standardizing, consolidating, and automating operating costs, and the tax advantage generated IT processes to increase efficiency and improve quality when costs are shifted from capital expenditure to of service . In functions critical to business success, operational expenditures . such as event, incident, and problem management; change, configuration, and release management; This white paper examines why companies are service level management; knowledge management; continuing to invest in service management in light of service catalog; and request fulfillment, ITSM helps today’s focus on relentless cost cutting and how SaaS to mitigate the risk of outages that can stop revenue can be of benefit both financially and operationally . streams and reduce customer satisfaction . Why service management is more By enabling a central point of contact among end users, lines of business, and IT, ITSM helps to align important now than ever IT with the business, to focus efforts on the end-user Despite technology investments, many companies are experience, and to integrate complex IT operations . still in reactive mode when it comes to service desks . And it enables IT organizations to manage services Unfortunately, this reactive mode comes at a steep across a lifecycle that spans strategy and design, price . In a recent study on IT Service Management, development, and operations to establish, monitor, IDC found that customers who use service desk and report on service levels, reduce efforts, and management software with embedded processes contain costs . have experienced a 559% return on investment and a payback period of less than one year .1 Clearly, 1 IDC Whitepaper sponsored by HP, HP IT Service Management: An ROI organizations who are not using these tools and Study, #217237, January 2009 processes are putting their company at a competitive disadvantage . 3
  • 4. “SaaS shifts software expenditures from a capex to an opex model, which can be beneficial from a cost recognition standpoint—and therefore a tax standpoint—in the short run .” Firms Can Benefit from SaaS in Times of Economic Uncertainty, Forrester, July 2008 Effectively implemented, ITSM makes it possible to: How software-as-a-service can drive • Measure and optimize IT value delivered to the business almost continuously by proactively financial benefits monitoring service levels to meet or exceed Software-as-a-Service has long been viewed as a way performance objectives, make informed decisions to accelerate implementation, reduce the risks inherent that balance cost and service quality, and provide in rolling out new technology, and introduce flexibility decision-makers with actionable key performance into IT . However, in today’s budget crunch, SaaS has indicators across the IT service portfolio taken on a new role as a financial enabler . • Optimize cost control by automating IT services, SaaS acts as a financial enabler in four ways: processes, and tasks to increase staff efficiency and 1 . SaaS has lower upfront costs . Instead of purchasing reduce spending, to integrate end-to-end service licenses in perpetuity, SaaS customers either pay delivery, and to fully understand the total cost of a fee inclusive of software and services or a ownership of the services IT delivers term-based license fee plus services . Maintenance • Mitigate risk by centralizing and enforcing and support fees are excluded from the equation . processes and automating change and configuration 2 . SaaS presents a tax advantage . By recognizing management to reduce service disruptions, achieve costs as operational expenses rather than capital regulatory compliance and certification, and isolate expenses, organizations are able to lower their potential sources of business problems and address tax burdens . them according to financial priorities 3 . SaaS offers a pay-as-you-go model . Rather than IT departments that have well-defined ITSM practices making an initial purchase based on expected in place are already ahead of the game, and usage over three or more years, you can purchase the businesses they support will have less trouble additional capacity as needed . weathering the storm . And, they are well poised once 4 . SaaS offers predictability . Because the costs are all the economy rebounds . inclusive, there are no additional surprises around additional server, storage, or network expenditures . It is no surprise, therefore, that IT organizations both large and small are embracing the SaaS model . 4
  • 5. A complete service management solution should cover: What to look for in a SaaS provider Completeness of solution • Incident management Even if the SaaS solution is the best in class, if it only Once you have decided to go with SaaS, the next step • Problem management covers a small portion of your IT needs, it may present is to determine your provider . In addition to selecting a • Change management difficulties . IT organizations can quickly find themselves proven vendor with a reputation for excellent customer • ervice asset and configuration S managing multiple SaaS vendors and facing multiple management service, you should also consider the technology integration challenges . It can also mean additional • elease and deployment R underpinnings, flexibility of the solution, and level of management challenges around tracking passwords, access rights, subject-matter expertise provided . • Knowledge management and charge-back models . • Request fulfillment Market-leading technology A complete solution also needs to be configurable • Service level management Whether it is a SaaS solution or deployed in-house, and extensible (see sidebar) . For example, you may • Service catalog the quality of the software is the foundation for need to add descriptive fields, add business rules, • Service portfolio management success . No matter how complete a vendor’s create workflows, or manage the service catalog . • Availability management SaaS model is, if the software delivered is not well designed, full featured, and proven, you will not get Subject-matter expertise the results you want . In the most recent Gartner Magic To deliver the full benefits of service management on Quadrant for IT Service Desk,2 HP was positioned in SaaS—especially fast deployment and reduced risk— the Leaders Quadrant based on ability to execute and your vendor needs staff expertise and established completeness of vision . best practices . SaaS vendors should provide a named technical account manager to see you through the Rapid time to value implementation phase and attend to your on-going Within 30–60 days, your organization should have needs . Through this constant interaction, your technical completed the on-boarding process . One way to account manager can help you get more out of your accelerate the process is to use templates to import service management solution and share best practices your historic data such as foundational data and gleaned from working with other organizations . Your open tickets . Best practices are often embedded in technical account manager should also be product the software rather than forcing you to create new certified and well-versed in ITIL version 3 if that is a workflows or ITIL modifications . framework which you use within your organization . One area often neglected is training . Your SaaS vendor should include training for both end-users and 2 David M. Coyle and Kris Brittain, Gartner Magic Quadrant for the IT Service Desk, November 4, 2008 administrators and provide guides to allow them to be effective day one . 5
  • 6. Flexibility to move in-house True service levels Your SaaS provider should offer you the flexibility to In the software-as-service business, you need the move your data and configurations to an in-house assurance of true service levels, that measure the deployment if you so chose . SaaS may be the right availability of your ability to use the service rather short-term choice based on in-house staffing resources than simple infrastructure uptime commitments . or to transition during a merger or acquisition, but it is The end-user service availability should be defined important to have the option to take your deployment in your vendor contract and should include financial in house if you so chose . Your SaaS provider should penalties if those commitments are not met . have tools in place to accelerate the transition and offer the ability to move to an in-house environment Customer case study: Value in 14 days easily . There is no need to have firewall access to your In 2008, a major financial institution in Europe in house implementation for management or upgrades . acquired the consumer finance business of another Security bank . Having a working service desk during the Whether it is a shared deployment offering economies transition was a key factor in seamlessly transitioning of scale or a dedicated one, SaaS must have the employees to their new company . necessary safeguards in place to protect your data . The acquiring company needed an ITIL-compliant Providers should conform to international standards for help-desk tool with a look and feel consistent with the information security such ISO 27001 and infrastructure HP ServiceCenter the employees were accustomed to, security standards such as SaaS Type II data centers and needed to migrate a portion of the existing tickets . in the United Sates or BS7799 security standards for It also wanted 99% availability, 24x7 support, and the British information security . In addition, other security scalability to support 5,000 tickets per week . measures should include network security including 256-bit encryption, documented and audited process In order for the new employees to hit the ground security, and personnel security background checks . running, the help desk solution had to go into production as soon as possible after the acquisition Long-term commitment happened . But to keep acquisition costs low, it As businesses scramble to cut costs and SaaS becomes had to be as economical as possible . The solution more and more attractive, new entrants will respond was HP SaaS for Service Manager, based on a to the need . Generally speaking, you can expect yearly contract, with patches and upgrades to be a more-established vendor to have a more reliable implemented by HP SaaS . infrastructure, a well-thought-out communication and support program, hassle-free upgrades, and best practices for meeting your requirements . 6
  • 7. Within 14 days, the solution was in place, delivering HP Service Manager was evaluated and HP is placed 99 .9% availability and around-the-clock support in the Leaders Quadrant by Gartner4 .* In addition, serving three European countries from one location . HP Service Manager is ITILv3 certified by Pink Elephant in 11 processes and is the first software from a major The advantages gained by achieving productivity with vendor to achieve certification in service portfolio minimal cost and effort helped the company reduce management .3 It includes Web-supported, integrated the risk and gain the rewards of the acquisition . And modules including: these benefits are equally applicable to the challenges businesses face in today’s economic climate . • Incident management • Problem management HP Service Manager and HP SaaS • Change management Together, HP Service Manager and HP SaaS make • Service asset and configuration management a combination that is a perfect answer to today’s • Release and deployment management economic challenges . They give your IT organization the opportunity—even within today’s tight budgets—to • Knowledge management make a significant contribution to the business • Request fulfillment initiatives that will keep your business healthy today • Service level management and position it to lead the recovery when it comes . • Service catalog Like the business it supports, your IT organization • Service portfolio management cannot afford to be passive in the face of today’s challenges . You need to deliver breakthrough business • Availability management outcomes to solve problems rather than simply survive them . HP Service Manager, delivered as SaaS, can 3 PinkVERIFY ™ vendor comparison scorecard, as of February 2009, at https://www.pinkelephant.com/en-US/ResourceCenter/PinkVerify/ give you the ability to deliver business results rapidly, PinkVerifyToolsetV3.htm with the cost and risk protection your business needs 4 David M. Coyle and Kris Brittain, Gartner Magic Quadrant for the in turbulent economic times . IT Service Desk, November 4, 2008 *The Magic Quadrant is copyrighted 2008 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner’s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the “Leaders” quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. 7
  • 8. HP SaaS provides the infrastructure, operational A named technical account manager becomes the support, and technical resources to make your customer’s advocate, making sure the solution is HP Service Manager solution successful . HP enables configured to meet customer goals, providing best businesses to access secure, pre-deployed HP Service practices, mentoring customer staff, and becoming Manager software . Because security is our top intimately familiar with customer requirements . It is priority, HP has implemented secure data centers this personal attention that drives user efficiency rates (SaaS Type II in the United States and BS7799 for to 85%, more than twice the industry standard, and UK-based customers), network security (including AES renewal rates of 95%+ . 256-bit encryption), process security (KPMG-verified and audited ISO 27001-compliant processes), and Next steps personnel security background checks . In addition, To learn how the financial benefits and faster time to each customer has its own dedicated application value of HP SaaS for Service Manager can benefit server and database instance to further limit the risk your organization, contact your HP representative of security breach . today . Or learn more about HP SaaS at: www.hp.com/go/saas Technology for better business outcomes To learn more, visit www .hp .com/go/btosoftware © Copyright 2009 Hewlett-Packard Development Company, L .P . The information contained herein is subject to change without notice . The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services . Nothing herein should be construed as constituting an additional warranty . HP shall not be liable for technical or editorial errors or omissions contained herein . 4AA2-5815ENW, April 2009

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