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How to optimize IT for future business needs


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Sharon Taylor, the Chief Architect of ITIL® V3 discusses how strategically focused IT service management can be used to drive value for the business. The focus is changing from IT powering the business to IT driving the business forward.

This video focuses on how IT and the business can move together as one. You will learn how ITSM can address the delivery of value-driven services through operational efficiency, service optimization and transformation with market time agility.

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How to optimize IT for future business needs

  1. 1. Agenda <ul><li>Introductions </li></ul><ul><ul><li>Host – Scott Sorensen - </li></ul></ul><ul><ul><li>Global Head of Solutions Consulting at Axios Systems </li></ul></ul><ul><ul><li>Speaker – Sharon Taylor – President, Aspect Group, Inc. </li></ul></ul><ul><ul><li>Service Value Management: A Business Imperative </li></ul></ul><ul><ul><ul><li>The evolution of value </li></ul></ul></ul><ul><ul><ul><li>Why it is changing </li></ul></ul></ul><ul><ul><ul><li>What it is changing into </li></ul></ul></ul><ul><ul><ul><li>The benefits of the change </li></ul></ul></ul><ul><ul><ul><li>How you can achieve it </li></ul></ul></ul><ul><ul><ul><li>When you will know you have </li></ul></ul></ul><ul><ul><li>Brief Axios Systems Overview </li></ul></ul><ul><ul><li>Question and Answer Session </li></ul></ul>
  2. 2. Your Speaker Today . . . <ul><li>Sharon Taylor </li></ul><ul><li>President, Aspect Group, Inc. since 1999 </li></ul><ul><li>CIO for 14 years </li></ul><ul><li>CEO for 10 years </li></ul><ul><li>Author, thought leader </li></ul><ul><li>Dedicated to the ITSM industry </li></ul><ul><li>Chief Architect ITIL V3 </li></ul><ul><li>Chief Examiner ITIL V3 </li></ul><ul><li>Chair, itSMF International </li></ul><ul><li>ISM, Fellow </li></ul><ul><li>Strategic Advisor, ICSM </li></ul>
  3. 3. Sharon Taylor, Aspect Group, Inc. June 30, 2009 Service Value Management: A Business Imperative
  4. 4. What is Value? <ul><li>Has understood worth </li></ul>Collective vision Supports objectives Enables or avoids Has meaning Its absence has impact Is measured in many ways
  5. 5. Value by the Book <ul><li>What are we trying to address with SVM? </li></ul><ul><li>Changing market dynamics that drive business priorities </li></ul><ul><li>Changing market conditions that drive business reactions </li></ul><ul><li>Changing service lifecycles that drive business process </li></ul>
  6. 6. Evolving toward SVM Infrastructure Management Service Management Distributed Computing Environment IT-Enabled Business Agility Value Management Business Aligned ITSM Service Infrastructure fusion Predictive optimization OGC/APMG contract, ITIL V3 released ISO 20000, CoBIT ISACA collaboration Self-managing resources BS15000 released following by ISO 20000 Infrastructure standardization and instrumentation ITIL V2 released Computing and infrastructure islands (chaotic, expensive management) Policy-based resource allocation Chaotic Transition
  7. 7. SVM Lifecycle <ul><li>Create Value – These are the actions we consider worthwhile that must increase or generate maximum future value. This is part of Service Strategy and Design practices. </li></ul><ul><li>Manage Value – Applying practices that allow for repeatable actions which satisfy governance, change, culture, communication and leadership within the IT service organization. These exist within the Transition and Operation of services. </li></ul><ul><li>Measure Value – Using metrics and systems knowledge to benchmark and compare performance of services against expected return on value. This is an iterative, ongoing part of Continual Service Improvement. </li></ul>
  8. 8. Building SVM Intelligence Enablers – High level objectives that allow the creation of service value Elements – The Service Management capabilities that quantify service value outcomes Characteristics – The Service Management behavioral traits that define service value Ingredients – The activities that execute and underpin service value
  9. 9. SVM Enablers – Achieve Business Objectives <ul><li>Decrease in fixed costs </li></ul><ul><li>Decrease in unit costs </li></ul><ul><li>Lower start up time </li></ul><ul><li>Improve market position </li></ul><ul><li>Decreased operational risks </li></ul><ul><li>Reduced performance variation </li></ul><ul><li>Business process compliance </li></ul><ul><li>Competitive advantage </li></ul><ul><li>Increase in customer satisfaction </li></ul>
  10. 10. SVM Elements – Organize Capabilities <ul><li>Quality – Retaining market share, capturing new market share, retaining and increasing customer loyalty, repeatable and consistent product quality and consumer experience. </li></ul>Agility – Competitive advantage, speed to market, adaptability to changing needs, predictive preparedness. Value – Product competitiveness, production efficiency, predictable business process/outcomes, regulatory compliance, risk tolerance, managing constraints. Quality Value Agility
  11. 11. SVM Characteristics <ul><li>Driven by process </li></ul><ul><ul><li>People </li></ul></ul><ul><ul><li>Process </li></ul></ul><ul><ul><li>Products </li></ul></ul><ul><ul><li>Partners </li></ul></ul><ul><ul><li>Best practices </li></ul></ul>Efficiency Cost Avoidance Effectiveness Value Available Responsive Reliable Quality Risk Mitigation Change Control Change Prediction Agility
  12. 12. Service Value Management Ingredients SVM Enabler - Operate SVM Characteristics Available, Reliable, Responsive SM Ingredients <ul><li>Incident </li></ul><ul><li>Events </li></ul><ul><li>Logging </li></ul><ul><li>Resolving </li></ul><ul><li>Problem </li></ul><ul><li>Trending </li></ul><ul><li>Root Cause </li></ul><ul><li>Knowledge </li></ul><ul><li>Capacity </li></ul><ul><li>Forecast </li></ul><ul><li>Patterns </li></ul><ul><li>Investment </li></ul><ul><li>Demand </li></ul><ul><li>Behavior </li></ul><ul><li>Patterns </li></ul><ul><li>Adjustment </li></ul>SVM Element Quality SVM Enabler - Optimize SVM Characteristics Efficiency, Effectiveness, Cost Avoidance SM Ingredients <ul><li>Measurement </li></ul><ul><li>Metrics </li></ul><ul><li>Baseline </li></ul><ul><li>Reporting </li></ul><ul><li>Dashboard </li></ul><ul><li>Scorecard effect </li></ul><ul><li>Analysis </li></ul><ul><li>Trending </li></ul><ul><li>Monitoring </li></ul>SVM Element Value SVM Enabler - Transform SVM Characteristics Control, Predict, Mitigate SM Ingredients <ul><li>Change </li></ul><ul><li>Impact </li></ul><ul><li>Scheduling </li></ul><ul><li>Release </li></ul><ul><li>Configuration </li></ul><ul><li>Data </li></ul><ul><li>Relationships </li></ul><ul><li>Cause and effect </li></ul><ul><li>Risk </li></ul><ul><li>Identification </li></ul><ul><li>Mitigation </li></ul><ul><li>Controls </li></ul>SVM Element Agility
  13. 13. Iterative Improvement and Evolution Event Incident Problem Change Config Service Desk Service Level Capacity Value Driven Proactive Reactive Incident Change Config Problem Measure Strategy Design Improve Transition Operation
  14. 14. SVM Guiding Principles <ul><li>All Services are not created equal. </li></ul>
  15. 15. All Services are not Created Equal <ul><li>Business A </li></ul><ul><li>Decreased operational risks from performance variation </li></ul><ul><li>Business process compliant with regulations </li></ul><ul><li>Competitive advantage with point of sale to delivery accuracy </li></ul><ul><li>Increase in customer satisfaction </li></ul><ul><li>Business B </li></ul><ul><li>Decrease in fixed costs of business process </li></ul><ul><li>Decrease in unit costs of shipping administration </li></ul><ul><li>Lower start up time for new or expanded areas of operation </li></ul><ul><li>Improved market position </li></ul>
  16. 16. SVM Characteristics
  17. 17. Scott Sorensen Global Head of Solutions Consulting Axios Systems
  18. 18. Axios Systems Business driven Technology  Technology powered Business Axios founded assyst Classic launched assyst Enterprise launched European expansion begins Entry into the US market Axios ranked #1 vendor in HDI 'Customer Experience' report Expansion into Canada Axios retains #1 vendor ranking in HDI 'Customer Experience' report assyst launched on Java architecture Further expansion in the US, Europe and entry into Asia Pacific Axios awarded Software Company of the Year First in the world to achieve BS 15000 certification Entry into Middle East and Africa The number of assyst end-users tops 10 million Axios awarded Software Company of Year (again) Axios rated #1 vendor for 3rd time in succession in HDI 'Customer Experience' report . 1988 2005 1990 1995 1997 2000 2001 2003 2004 2006 2007 2008 2009 SVM Messaging Update Expansion into Russia, Eastern and Southern Europe and South America Axios wins International Excellence Award Expansion into Middle East ITIL V1 ITIL V3 ITIL V2 Windows Web Web 2.0 Green-Screen assyst 8 Launches NA Expansion
  19. 19. <ul><li>Service Value Management . . . </li></ul><ul><ul><li>Delivering value driven business services through operational </li></ul></ul><ul><ul><li>efficiency, service optimization and “ market time” agility. </li></ul></ul>Essential Service Value Management Drivers Business driven Technology  Technology powered Business <ul><li>Is your technology organization powered to respond with agility to: </li></ul><ul><ul><li>Market Dynamics  Driving Business Priorities </li></ul></ul><ul><ul><li>Market Conditions  Driving Business Reactions </li></ul></ul><ul><ul><li>Market Technology  Driving Business Innovation </li></ul></ul><ul><ul><li>Service Lifecycles  Driving Business Processes </li></ul></ul>
  20. 20. assyst – IT Service Management Solution Transform Operate Optimize Business driven Technology  Technology powered Business
  21. 21. Delivering Service Value <ul><li>Incident/Problem Management – Service Desk </li></ul><ul><ul><li>50% Reduction in Incident Restoration Time </li></ul></ul><ul><ul><li>50% Reduction in Business Impacting Incidents </li></ul></ul><ul><ul><li>Customer Retention, Quality Services </li></ul></ul><ul><ul><li>Reliability and Responsiveness </li></ul></ul>SVM Enabler - Operate SVM Characteristics Available, Reliable, Responsive SM Ingredients <ul><li>Incident </li></ul><ul><li>Events </li></ul><ul><li>Logging </li></ul><ul><li>Resolving </li></ul><ul><li>Problem </li></ul><ul><li>Trending </li></ul><ul><li>Root Cause </li></ul><ul><li>Knowledge </li></ul><ul><li>Capacity </li></ul><ul><li>Forecast </li></ul><ul><li>Patterns </li></ul><ul><li>Investment </li></ul><ul><li>Demand </li></ul><ul><li>Behavior </li></ul><ul><li>Patterns </li></ul><ul><li>Adjustment </li></ul>Contact Information Speed to Root Cause Speed to Log Current Events SVM Element Quality Quality & Availability
  22. 22. Delivering Service Value <ul><li>Change & Configuration Management </li></ul><ul><ul><li>50% Reduction in “Emergency” Changes </li></ul></ul><ul><ul><li>50% Reduction in Failed Changes </li></ul></ul><ul><ul><li>Controlled Risk and Automated Governance/Auditability </li></ul></ul>Control & Agility SVM Enabler - Transform SVM Characteristics Control, Predict, Mitigate SM Ingredients <ul><li>Change </li></ul><ul><li>Impact </li></ul><ul><li>Scheduling </li></ul><ul><li>Release </li></ul><ul><li>Configuration </li></ul><ul><li>Data </li></ul><ul><li>Relationships </li></ul><ul><li>Cause and effect </li></ul><ul><li>Risk </li></ul><ul><li>Identification </li></ul><ul><li>Mitigation </li></ul><ul><li>Controls </li></ul>Impacted Users Change Scheduling Speed to Submit/Log Standard Processes SVM Element Agility
  23. 23. Delivering Service Value <ul><li>Service Management </li></ul><ul><ul><li>75% Reduction in “Reporting” Effort </li></ul></ul><ul><ul><li>30%+ Improvement in Resource Efficiency </li></ul></ul><ul><ul><li>Delivery of Service Management with Value </li></ul></ul><ul><ul><li>Continuous Process Improvements </li></ul></ul>SVM Enabler - Optimize SVM Characteristics Efficiency, Effectiveness, Cost Avoidance SM Ingredients <ul><li>Measurement </li></ul><ul><li>Metrics </li></ul><ul><li>Baseline </li></ul><ul><li>Reporting </li></ul><ul><li>Dashboard </li></ul><ul><li>Scorecard effect </li></ul><ul><li>Analysis </li></ul><ul><li>Trending </li></ul><ul><li>Monitoring </li></ul>Incident Trending Resources Rescheduling Asset Usage Event Management SVM Element Value Proactive Service Management Efficiency & Effectiveness
  24. 24. Axios Delivers Service Value Management Today! AGILITY FOCUS ACHIEVE <ul><ul><li>Time to Value & Cost of Ownership – We Live Service Value Management! </li></ul></ul><ul><ul><li>Customers 8+ Years, Some 16 Yrs – 90%> Current Release or -1 Release </li></ul></ul><ul><li>One Vision . . . . . </li></ul><ul><ul><li>Longevity </li></ul></ul><ul><ul><li>More than two decades of a “laser focus” on the delivery of value through IT Service Management solutions! </li></ul></ul><ul><li>One Solution . . . . . </li></ul><ul><ul><li>Predictability </li></ul></ul><ul><ul><li>Always an Upgrade – Never a Re-Implementation </li></ul></ul><ul><ul><li>Agile adoption of technology and functionality! </li></ul></ul><ul><li>One Goal . . . . . . </li></ul><ul><ul><li>Partnership </li></ul></ul><ul><ul><li>With our customers through our people – skills and knowledge </li></ul></ul><ul><ul><li>Voice of the customer always counts! </li></ul></ul>
  25. 25. Just to Name a Few Global Customers
  26. 26. <ul><ul><li>Business driven Technology – </li></ul></ul><ul><ul><li>Technology powered Business </li></ul></ul>
  27. 27. Further Service Value Management Resources <ul><ul><li>Service Value Management White Paper: </li></ul></ul><ul><ul><li>The business imperative of delivering service value to your organization </li></ul></ul>Questions?