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Business Case for an Automated, Unified IT Service & Client Management Solution
Business Case for an Automated, Unified IT Service & Client Management Solution
Business Case for an Automated, Unified IT Service & Client Management Solution
Business Case for an Automated, Unified IT Service & Client Management Solution
Business Case for an Automated, Unified IT Service & Client Management Solution
Business Case for an Automated, Unified IT Service & Client Management Solution
Business Case for an Automated, Unified IT Service & Client Management Solution
Business Case for an Automated, Unified IT Service & Client Management Solution
Business Case for an Automated, Unified IT Service & Client Management Solution
Business Case for an Automated, Unified IT Service & Client Management Solution
Business Case for an Automated, Unified IT Service & Client Management Solution
Business Case for an Automated, Unified IT Service & Client Management Solution
Business Case for an Automated, Unified IT Service & Client Management Solution
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Business Case for an Automated, Unified IT Service & Client Management Solution

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Maximizing operational efficiencies, reducing IT costs, and improving service quality and compliance are just a few of the primary concerns for IT organizations looking to improve their efficiency and …

Maximizing operational efficiencies, reducing IT costs, and improving service quality and compliance are just a few of the primary concerns for IT organizations looking to improve their efficiency and deliver more strategic value to their companies. This challenge is made more complex when IT Service and Client Management processes are managed manually, or across a number of disparate systems or applications, which can be costly and time intensive in an increasingly complex IT environment.

Read this paper by ROI analysts of Hobson & Company which summarizes the research findings and the overall Return on Investment (ROI) implication for organizations considering an automated, integrated IT Service and Client Management solution.

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  • 1. The Business Case for an Automated, UnifiedIT Service and Client Management SolutionAn ROI White PaperAuthor: Tammy KleinHobson & CompanyFebruary 2013
  • 2. 2 Copyright 2013 FrontRange SolutionsExecutive SummaryMaximizing operational efficiencies, reducing IT costs, and improving service quality and compliance are just a few ofthe primary concerns for IT organizations looking to improve their efficiency and deliver more strategic value to theircompanies. This challenge is made more complex when IT Service and Client Management processes are managedmanually, or across a number of disparate systems or applications, which can be costly and time intensive in anincreasingly complex IT environment.The key to achieving a strong IT Service and Client Management solution is a single, unified system, containing all ofthe information for all of an organization’s IT services and its hardware and software inventories, and providing asingle solution via which to address incidents and deploy software packages to their end-users. Not only does thishelp ensure that the organization becomes more competitive overall, it also significantly improves the day-to-dayadministrative processes such as: handling in-coming incident and service request calls; managing service deskworkload; updating end-users on ticket status; preparing and deploying software packages; and maximizing end-useruptime, ensuring they are managed as efficiently as possible. Without a unified system, the ability to thoroughly andpro-actively manage all aspects of IT Service and Client Management cannot be easily achieved. This can result inreduced customer satisfaction due to end-user downtime or lengthy responses to incident reports, service desk staffde-motivation, and increased hardware and software costs. In addition, the Full Time Equivalent (FTE) time requiredto manage all of these processes can be substantial.FrontRange engaged the ROI analysts of Hobson & Company, a firm that specializes in discovering the key businessbenefits driving the adoption of new and emerging technologies, to better understand and validate the businessopportunities associated with each of these key challenges. This paper summarizes the research findings and theoverall Return on Investment (ROI) implication for organizations considering an automated, integrated IT Service andClient Management solution.Key IT Service and Client Management challenges facing organizations: Reducing time spent on routine tasks such as service requests, software deployments, and working acrossmultiple systems. Improving both IT and internal/external customer compliance and limiting exposure to risk. Ensuring maximum end-user uptime for improved customer satisfaction. Minimizing hardware, software, and IT support time and costs.The value of an automated and unified IT Service and Client Management solution is immediate anddemonstrable. A sample organization with 10,000 employees, 3,000 service requests a month, 40 hours a weekspent managing changes, and 25 application/upgrade deployments per year, can experience $1.5M in savingsfrom maximizing operational efficiencies and reduced IT costs alone. Through improved service quality andcompliance, annual benefits can be as much as $2.3M.
  • 3. 3 Copyright 2013 FrontRange SolutionsKey IT Service and Client Management challenges facing organizationsInterviews were conducted with Directors and Managers of IT Operations, Services Management, SystemsEngineering, Deployment, and Delivery and Support at a number of U.S. and international organizations. Coming outof these interviews four key IT Service and Client Management challenges were identified:Challenge 1: Reducing time spent on routine tasks such as service requests, software deployments, andworking across multiple systems.The number of different aspects involved in IT Service and Client Management, such as notifying end-users whenincident report tickets have been opened and closed, taking service request phone calls, answering status calls fromend-users, creating new software packages, and managing application and upgrade deployments, made managingthe processes manually, or across a number of disparate systems, very time consuming. Many of those interviewednoted that it used to take a significant amount of administrative time just to keep end-users updated on the status oftheir tickets, taking as much as 10-15 minutes per ticket, across thousands of tickets per month. In addition, timespent entering data between the IT Service and Client Management systems used to require a number of manualsteps and substantial time. As well as the time spent on these processes, they were also prone to errors. Thoseinterviewed reported that as many as 1% - 3% of tickets would get lost or misplaced each month when beingtransferred to different departments for resolution, requiring an average of an hour each to be found back.Challenge 2: Improving both IT and internal/external customer compliance and limiting exposure to risk.As environments become increasingly complex, maintaining compliance can be very difficult. Compliance can takemany forms, including: internal compliance to policies and procedures; configuration compliance; externalcompliance with licensing agreements from external vendors; data privacy and regulatory compliance; and therequirement to be able to prove compliance to outside agencies such as government and regulatory groups.Organizations interviewed noted that prior to moving to a unified system which automatically created full audit trails ofall activities, the risk for fines could be substantial, costing as much as $30K for the first infraction and escalatingfrom there to $100K or more for every subsequent breach. In addition to diligently tracking configuration compliancea further risk presented by the on-going automation within organizations is security compliance in regards to thesusceptibility to hacking and malware which could put large amounts of confidential corporate information at risk.Everyone interviewed noted that prior to moving to a system with the ability to deploy patches centrally, days andeven months used to be required to deploy patches to all of the machines within an organization, creating asignificant risk that organizational information could be exposed.Operating in a heavily regulated industry, which requires reporting of breaches within an hour of thebreach occurring, meant that it was critical to have a way to know of any security or data violationessentially as soon as it happened. The inability to report this in a timely manner resulted in large fines.– Manager, Service ManagementNotices to end-users, to let them know when tickets were opened and closed, used to be donemanually via e-mail, which could take 5-10 minutes per ticket across an average of 2,000 – 2,500tickets a month. In addition a new ticket needed to be created from scratch every time, even thoughthere were certain types of incidents that happened frequently and for which it would have been ideal ifa template could have been created.– Operations Manager
  • 4. 4 Copyright 2013 FrontRange SolutionsChallenge 3: Ensuring maximum end-user uptime for improved customer satisfaction.As organizations become more and more reliant on technology, and end-users often have multiple devices each, therequirement for uninterrupted end-user up-time and very quick resolution to end-user issues when they do occur, hasbecome paramount. End-user downtime could have been caused by a number of different issues including: actualsystem downtime driven by broken jobs or other technical issues; time required from the end-user to be a part ofinstalling updates or new application software, or waiting for upgrades to be installed on their machines; and timespent waiting for resolution to issues submitted to the service desks. Many of those interviewed noted that there hadbeen a number of areas in which they needed to improve customer service to end-users including: abandon rates;time to call answer; time to handle calls; and issue resolution times. Others noted that another key issue whenmanaging issues manually, or across a number of disparate systems, was lost or misplaced tickets, significantlyimpacting customer satisfaction. In addition, downtime due to broken jobs was also an issue, with some of thoseinterviewed reporting as much as an hour of end-user downtime per month due to technical issues with changes.Challenge 4: Minimizing hardware, software, and IT support time and costs.Without a unified, automated way to quickly and easily track all hardware and software usage within an organization,maintaining control of end-user IT costs was very difficult to do. For example, some of those interviewed noted thatwithout a way to track all of the machines within their organization it was very difficult to know if they were paying forlicenses that were no longer needed, on machines that had been decommissioned or for end-users that had left theorganization. Just conducting an inventory on all of the physical machines could take 1-2 weeks to complete. Inaddition to the end-user IT costs, there were also a lot of internal IT savings opportunities to be realized by bringingtogether their IT Service and Client Management processes into a single consolidated system, as opposed to beingmanaged across a number of disparate systems. Organizations interviewed noted that they were able to save asmuch as 25% - 30% in annual maintenance costs, or as much as $30K a year, as well as reducing the number ofservers needed, at $10K a server. IT FTE support time was also a key issue when systems were managedseparately or when a number of different vendors were involved, each with their own support and maintenanceterms.Prior to moving to a single, centralized incident management system there used to be a high number ofabandoned calls, as people were often put in long queue lines and would eventually just drop off withouthaving their issues addressed. In addition, tickets that needed to be transferred to other areas often fellthrough the cracks as there was no way to track a ticket once it had been passed on from one group tothe next.– Manager, Software ServicesMaintaining end-user hardware and software costs was a real challenge as there was no quickway to see which machines were out there and what software each machine had on it. Doing aninventory of machines could take a couple of weeks, only to find that a machine had beendecommissioned and didn’t exist anymore.– Network Manager
  • 5. 5 Copyright 2013 FrontRange SolutionsKey Sources of ValueThe value of an automated, integrated IT Service and Client Management solution is immediate and significant.Based on interviews with Directors and Managers of IT Operations, Services Management, Systems Engineering,Deployment, and Delivery and Support at a number of U.S. and international organizations, the value falls into threemain categories: Maximize Operational Efficiencies Reduce IT Costs Improve Service Quality & ComplianceEach value area can be further broken down into a set of specific benefits. A sample of the benefits for each aresummarized below and will be fully explained and supported in the following section.VALUE AREA SPECIFIC BENEFITSMaximizeOperationalEfficiencies Reduce time spent on routine tasks Reduce the number of service requests into the IT group Reduce the time spent collecting call details Reduce time spent creating software packages Reduce time spent on application deploymentsReduce IT Costs Reduce downtime due to unplanned/unapproved changes Reduce the purchase of unneeded end-user hardware/software Reduce IT systems & maintenance costsImprove ServiceQuality &Compliance Reduce fines and penalties Improve service desk agent motivation and productivity Reduce the risk of exposure to hacking and malware Reduce time spent transferring data between systems Improve overall customer service/end-user uptime and customer satisfactionFIGURE 1: VALUE AREAS AND SPECIFIC BENEFITS
  • 6. 6 Copyright 2013 FrontRange SolutionsThe following case study illustrates the potential value of an automated, unified IT Service and Client Managementsolution for each value area based on a sample organization using either the HEAT Help Desk or HEAT ServiceManagement solution which could include integration with HEAT Discovery, and HEAT Desktop and ServerManagement, and includes the following inputs: Number of employees = 10,000 Number of tickets per month = 5,000 Time spent updating end-users on ticket status/open/close = 5 minutes per ticket Number of service requests per month = 3,000 Average time to take and complete each service request = 45 minutes Number of calls received by the help desk per day = 200 Time spent per week managing changes = 40 hours Number of packages created per month = 10 Time required per package = 24 hours Number of application deployments per year = 25 Time required per deployment = 30 minutes per machine Number of patch deployments per year = 10 Number of exposed vulnerabilities that do still affect computers per year = 2 Time required to rectify exposures and clean up machines = 1.5 hours per machine
  • 7. 7 Copyright 2013 FrontRange SolutionsValue Source 1: Maximize Operational Efficiencies1. Reduce time spent on routine tasks. Service issues can often take a significant amount of time to resolve andoften require a good deal of time spent on routine tasks, such as updating end-users on ticket status, when theprocess is not fully automated. Incident Management provides the ability to quickly diagnose problems,determine workarounds and restore service with: best practices workflow, escalations, and notification toautomate routine tasks; easily accessible knowledge base; drill through analytics; intelligent ticketing; ITIL bestpractices workflows and SLA traffic lights.The sample organization reduced the time spenton routine tasks such as updating end-users onticket status by 95%.Impact on sample organization:$232,900 in annual productivity improvements2. Reduce the number of service requests into the IT group. A significant number of calls that come in to theservice desk are for services that could be fairly easily standardized, but which today take up significant IT time,both in answering calls and in setting up services for other departments. Service Catalog makes it easy todefine, publish and manage services with a drag-and-drop workflow designer and engine, significantly reducingor eliminating IT time needed. In addition many standard requests can also be completed by the user directly bychoosing an option from the service catalog.The sample organization was able to reduce the number ofservice requests and the time per service request by 10%.Impact on sample organization:$296,200 in annual productivity improvements3. Reduce time spent collecting call details. Time spent collecting all of the details for any given service call canbe extensive. In addition calls back out to the user might be required if key data is missing and needed beforethe incident can be addressed, slowing down the time to resolution. Voice Solutions speeds resolution time asthe service desk technician can answer calls with a pre-populated intelligent ticket which provides immediateaccess to the customer’s contact information, PC inventory, and compliance information for easy routing to thecorrect area for resolution. The automated attendant may also be used as the primary interface to provideextended after hours support.The sample organization reduced the time spentcollecting call details by 40%.Impact on sample organization:$108,000 in annual productivity improvementsIt used to take from 5-10 minutes per ticket to e-mailupdates to end-users, across thousands of tickets amonth, now this time has been reduced to essentiallyzero.– IT Operations ManagerAble to reduce time per call from 5-6 minuteseach down to 2-3, and increase the number ofcalls handled per agent from an average of 20 aday to 50 a day.– IT Service Manager60%-70% of all calls are service requestswhich could take 5-10 minutes each toanswer and 15-20 days to complete prior toFrontRange.– IT Service Manager
  • 8. 8 Copyright 2013 FrontRange Solutions4. Reduce time spent creating software packages. Whether it’s provisioning new employees or managing massmigration, package configuration is one of the most time consuming software management tasks. DSM allowspackages to be created quickly and easily with drag and drop menu functionality and tools such as SoftwareFactory and Packaging Workbench, as well as making it easy to find the right drivers. In addition to time saved,these tools also allow the work to be done by a broader group of people as the level of technical expertiserequired is reduced.The sample organization was able to reduce the timeneeded to build packages by 85% per package.Impact on sample organization:$120,000 in annual productivity improvements5. Reduce time spent on application deployments. The ever increasing complexity in client computing includingnew devices (laptops, notepads, smart phones), new delivery methods (SaaS, cloud computing, hosted virtualdesktops), new users, and new platforms, make application deployment difficult and time consuming. DSMautomates application management tasks with a single-console interface for packaging, testing, deploying andconfiguring software applications. Software sets can be created quickly and easily, and then applications can beautomatically deployed to users based on criteria such as job description, location, department, or individual userprofile.The sample organization reduced the time spent onapplication deployments by 95% per machine.Impact on sample organization:$465,800 in annual productivity improvementsValue Source 2: Reduce IT Costs1. Reduce downtime due to unplanned/unapproved changes. Failures caused by changes in IT can have asignificant impact on end user productivity and can result in significant added costs due to resulting downtime.Change, Release, and Configuration Management mitigate the risks of failures caused by changes in IT as theycan control the variations of IT asset configurations with sophisticated reconciliation and enforcement tools, andimprove deployment time and quality by managing planning, authorization and deployment from a singleinterface.The sample organization reduced unplanned downtime andunapproved changes by 80%.Impact on sample organization:$172,700 in annual revenue gainsReduced the time needed from as much as aday per software package to build down toabout one hour each.– Deployment OfficerAble to go from an average of 40 hours aweek spent managing changes to 4-8hours at most and virtually eliminatedbroken jobs.– Manager, Service ManagementAble to save 20 minutes per machine, perupgrade, over as many as 10 upgrades a yearacross 500+ machines each time.– Network Manager
  • 9. 9 Copyright 2013 FrontRange Solutions2. Reduce the purchase of unneeded end-user hardware and software. In today’s complex environments,knowing exactly what hardware and software exists and where it is on the network is a real challenge and canresult in unneeded purchases of additional hardware components or software licenses. Discovery makes it easyto catalog all IP-addressable hardware (including servers, desktops, laptops, network printers, switches, anddevices) and software, as part of a complete IT inventory that is always up-to-date. This 100% visibility can helpcontrol sprawling networks and manage them efficiently.The sample organization reduced theirannual end-user hardware and softwarecosts by 5%.Impact on sample organization:$125,700 in annual cost savings3. Reduce IT systems and maintenance costs. When IT Service Management and Client Management aremanaged across a number of disparate systems, or across different systems and vendors in differentdepartments, it can result in significant internal IT hardware and software costs. By moving to a single systemacross all IT Service Management and Infrastructure/Desktop and Server Management groups, the server,software and maintenance costs are substantially reduced.The sample organization consolidated 5 systems into1 across IT Service and Client Management.Impact on sample organization:$200,000 in annual cost savingsValue Source 3: Improve Service Quality & Compliance1. Reduce fines and penalties. With the complexity of today’s environments, ensuring compliance from an ITperspective can become incredibly complicated, resulting in fines/penalties. Change, Release, andConfiguration Management improve compliance and governance with: change and release templates andworkflow that ensure separation of duties and oversight; and multi-level approval assignment to streamlinechange approvals and provide detailed audit trails.The sample organization was able to reducefines by 1 a year and the cost per fine by 10%.Impact on sample organization:$110,000 in annual cost savingsAble to save license costs that were often being paid evenwhen the licenses were no longer being used. There wasno easy way to track this and it could take as many as 1-2weeks to complete an inventory of computers andlicenses, whereas now it takes just minutes.– Network ManagerRisk of fines substantially reduced which was key asfines could be anywhere from $30K - $100K+ perinfraction.– Manager, Service ManagementEliminated $30K in annual maintenancecontracts, as well as unneeded hardware at$10K a server, by moving to a single system.- Service Desk Manager
  • 10. 10 Copyright 2013 FrontRange Solutions2. Improve service desk agent motivation and productivity. When call centers are outfitted with hardwired/landline phone systems it results in very little mobility or choice of work location for the service agents, essentiallykeeping them at a single desk in a single room all day. Voice Solutions allows service desk agents a great dealof flexibility in work arrangements as the software based system does not require they be stationed at ahardwired phone all day, allowing them to take calls from various locations, including tele-commuting. Inaddition, call overflow can easily be handled by having more agents sign on, as there is no constraint on numberof phones available.The sample organization saw a 5% improvement inoverall service desk agent productivity.Impact on sample organization:$70,000 in annual revenue gains3. Reduce the risk of exposure to hacking and malware. Ineffective patch management can expose anorganization to security compliance risks such as hacking and malware, which often target weak points ofoperating systems and applications. DSM’s Patch Management enables a high level of automation for allphases of patch management, from identifying vulnerabilities in the network and selecting relevant patches, toquality control and rule-based implementation. Automated searches provide a complete overview of threats.The sample organization reduced the time perpatch deployment by 80% and the exposedvulnerabilities still affecting machines by 50%.Impact on sample organization:$171,600 in annual productivity improvements4. Reduce time spent transferring data between systems. When the IT Service and Client Managementsystems are not integrated it can result in users having to wait a good deal of time to have software installed, asthe process would often contain a number of manual steps to enter and pull the needed data from the twoseparate systems. Combining the IT Service Management and Client Management systems allows requeststhat require information from both systems to be handled much more quickly, as no human interaction is neededin transferring the information from one system to the other.The sample organization was able to reduce thetime spent transferring data and requestsbetween systems by 95%.Impact on sample organization:$168,700 in annual productivity improvementsThe agents now have the ability to telecommutewhich has resulted in much improved agentsatisfaction and higher retention rates.– Manager, Software ServiceCan now get a patch out to end users the same day itis created whereas before it might have taken weeksor even months to get all of the computers updated.Being able to defend against a security threat withinhours dramatically reduces the risk of exposure.– Network Manager30-40% of the tickets are equipment related andnow all of the needed information can beautomatically pulled from the asset managementdatabase into each ticket, saving the time of havingto find and re-enter this information.- Manager, IT Support
  • 11. 11 Copyright 2013 FrontRange Solutions5. Improve overall customer service/end-user uptime and customer satisfaction. When business processesare interrupted it can have a significant impact on employee productivity and satisfaction, yet given thecomplexity of today’s IT management challenges, the risk that service disruptions could occur is significant. ITService Management allows for the measurement of actual service delivery quality against establishedbenchmarks and availability metrics for every component within a service. Robust analytics help to determinewhere tuning will improve and transform the overall business service, so that productivity, performance andquality can be optimized. In addition, Client Management works across all areas of desktop and servermanagement to significantly reduce the amount of down-time incurred by end-users, whether it be from waitingto have new applications and upgrades installed, re-setting their preferences once an upgrade is complete,having to have vulnerabilities removed or other issues and trouble that can arise. This reduced downtimesignificantly increases end user productivity and satisfaction.The sample organization improved overallend-user productivity by 0.01% due to betteruptime and customer service.Impact on sample organization:$140,000 in annual revenue gainsSaw a 10% - 20% improvement in each of the followingareas of customer service: i) abandon rates; ii) time tocall answer; iii) call handling times; and iv) issueresolution time post-FrontRange.– Manager, Software Services
  • 12. 12 Copyright 2013 FrontRange SolutionsOverall ValueFor the sample organization, the three year investment totaling $890K generates a positive return in 5.2 months.The three year net present value (NPV) and return on investment (ROI) are very strong at $4.4M and 611%,respectively. The key financial metrics for the sample organization were calculated by standard methods and areshown below. The NPV calculation assumes a 10% cost of capital.FINANCIAL METRIC 3-YEAR VALUEPayback (months) 5.2 monthsNPV $4,391,010ROI 611%FIGURE 2: TABULAR DISPLAY OF KEY FINANCIAL METRICSThe chart below shows the extent to which each value driver contributes to the total value of the automated, unifiedIT Service and Client Management solution. For the sample organization, maximizing operational efficienciesrepresents the majority of the value.FIGURE 3: PIE CHART DISPLAY OF VALUE DRIVERS51%21%28%Benefits by Value DriverMaximize Operational EfficienciesReduce IT CostsImprove Service Quality & Compliance
  • 13. 13 Copyright 2013 FrontRange SolutionsAbout FrontRange SolutionsFrontRange is the global leader in Hybrid IT ServiceManagement (ITSM) solutions for enterprises of all sizes.With its suite of HEAT applications, FrontRange is the onlyITSM provider in the world that delivers Service Managementsoftware with fully integrated Voice Automation and ClientManagement capabilities on-premise and in the cloud. HEATmanages millions of service interactions a day for more than15,000 leading organizations around the world. HEATenables customers to deliver world-class service whilemaximizing operational efficiencies with reduced cost andcomplexity.For more information, please visit www.frontrange.comAbout Hobson & CompanyHobson & Company helps technology vendors andpurchasers uncover, quantify and validate the key sources ofvalue driving the adoption of new and emergingtechnologies. Our focus on robust validation has helpedmany technology purchasers more objectively evaluate theunderlying business case of a new technology, while betterunderstanding which vendors best deliver against the keyvalue drivers. Our well researched, yet easy-to-use ROI andTCO tools have also helped many technology companiesbetter position and justify their unique value proposition.For more information, please visit www.hobsonco.com

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