Asset Management: Climbing the Asset Maturity Curve


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At the 2013 ISG Sourcing Industry Conference in the Americas, Terri Hart-Sears held a workshop on asset maturity assessment, transformation and solutions for driving toward asset intelligence that is useful for IT decisions.

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Asset Management: Climbing the Asset Maturity Curve

  1. 1. © 2013 Information Services Group, Inc. All Rights Reserved. Proprietary and Confidential. No part of this document may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval devices or systems, without prior written permission from Information Services Group, Inc. #ISGSIC Climbing the Asset Maturity Curve Asset Management 9-10 September 2013 Terri Hart-Sears
  2. 2. © 2013 Information Services Group, Inc. All Rights Reserved 2 Implementation Gap: Exponential Effect Customers, advisors, providers agree that accurate, objective data is critical to building trust Initial asset baselines are frequently between 15-20% inaccurate, and without remediation, can fuel a host of downstream complications 1. Inaccurate billing 2. Additional outages 3. Increased time and cost of recovery 4. Unnecessary investment in hardware and software Inaccurate asset information can build a lack of trust increasing the gap between the client and the supplier How can we address this "The 15% Problem"
  3. 3. © 2013 Information Services Group, Inc. All Rights Reserved 3 The Primary Challenges and Inherent Risks to the Global Enterprise The Business Challenge: Managing Asset Information Navigating risk complexity requires the understanding the boundaries of technology and asset management (BYOD) Navigating regulatory complexity requires the need to know where your assets and information resides Pursuing growth needs to manage the Q in the P*Q equation to control costs Driving global information reporting must address the quality of information to manage the IT Estate and outsourcing relationships  Fines accessed for data loss  Reputation impacted by compromised environment  Increased demand drives increased volumes and costs  Financial penalties with audits  Unanticipated increased volumes  Increased outage time (missing information)  Only 16.1% are satisfied with the amount and quality of information to manage the outsourcing relationship (According to IAOP) Building trust and transparency to address governance  Lost value of contracts, mergers, and acquisitions and increased human capital
  4. 4. © 2013 Information Services Group, Inc. All Rights Reserved 4 Asset Management Set of business practices that join financial, contractual and inventory functions to support life cycle management and strategic decision making for the IT environment. Asset Management Architecture, Policies and Standards Reporting Hardware Hardware Inventory Acquisition Spares Disposal Software Software Inventory Acquisition Catalog Mgmt. Contract Portfolio Contract Compliance Inventory. Asset Life Cycle Software Mgmt.  Gain control of the inventory  Increase accountability to ensure compliance  Enhance performance of assets and the life cycle management  Improve Availability Time of the Business/Applications/Processes
  5. 5. © 2013 Information Services Group, Inc. All Rights Reserved 5 IT Asset Maturity Model: Where are you? An IT asset maturity model can help organizations assess their current state. If you want to move forward, you need to understand where your organization fits on the IT asset maturity curve. Simultaneous progress on both axes will improve accuracy and trust in the data. Trusted Reports support key decisions 5 Accurate Accurately reflect the estate Automated compliance reporting 4 3 Current All CIs and contracts are accounted for 2 Updated Changes are reflected 1 Implemented Asset tool 0 Operating model without process = pause Tools without process = insecurity MaturityModel Asset Accuracy Reconciled From multiple sources Limited compliance Reporting
  6. 6. © 2013 Information Services Group, Inc. All Rights Reserved 6 ► Assessment is based on Operating, Asset Recording, License Management, Asset Cost, and Life Cycle Factors Asset Maturity Assessment Summary Updated Current Reconciled Accurate Trusted 1 2 3 4 5 6 7 8 9 10 OPS Operating Factors 3.8 30% ASR Asset Recording Factors 2.9 20% LIC Licence Management Factors 4.3 20% ASC Asset Cost Factors 2.0 20% LIF Life Cycle Factors 4.9 10% 3.5 100% Key Observations 1 2 Filter Weighting Filter ValuesAsset Maturity Assessment Maturity Score Enter specific observations / facts
  7. 7. © 2013 Information Services Group, Inc. All Rights Reserved 7 Asset Recording Operating Maturity Assessment Factors ► How often does the organization reconcile usage to assets ► What percentage of retired hardware is tracked to enable redeployment of software ► What percentage of purchased are made through a centralized or controlled procurement process ► All assets in a asset register aligned with change and configuration management ► Organization identifies legal, regulatory or contractual requirements ► Organization performs an required audit of assets License Management ► Maintains a register of all software licenses and associated agreement ► Conducts an audit to identify instances of installed software ► On a regular basis considers whether better terms obtained by upgrades or changes in licensing
  8. 8. © 2013 Information Services Group, Inc. All Rights Reserved 8 Life cycle Asset Cost Maturity Assessment Factors (continued) ► Review the overall asset base considering whether it is aligned with business requirements ► Assesses maintenance costs ► Review the overall base to identify opportunities for standardization, sourcing and other strategies to lower procurement and support costs ► Procure assets based on approved requests in accordance with procurement policies ► Approve payments according to agreed contract conditions ► Deploy assets following standard life cycle
  9. 9. © 2013 Information Services Group, Inc. All Rights Reserved 9 Build better negotiating power Pay only for the IT assets and services you use Top 5 benefits of climbing the IT asset maturity curve ► Be sure that you are not only getting what you pay for but that you are not paying for what you are not getting. Without a good handle on your assets, you may end up managing too many assets or paying for “platinum” level support that is not used outside business hours. ► Knowing what assets are active will allow for better contracts. How do you know you have the right asset counts? What is the cost of being wrong? Missing discounts or terms with the wrong asset information? Unanswered questions about assets can drive up costs. Get right with operational compliance ► Today’s environment is very complex; it takes multiple data sources to reconcile information. Make sure you can answer these questions: Have we run all the back- ups? Are the assets up to date on virus protection? Navigate risk and regulatory compliance ► The financial loss exposure from these types of risks can include penalties for lost data as well as the cost of re-creating information. The proliferation of mobile devices and remote service points only increases this risk. Better asset management will provide cost savings from improved compliance and ensure assets are mapped to security parameters. Enact ITAM process discipline ► ITAM is closely linked to ITIL processes and enables improvements in four critical service management processes: change management, asset management, service performance and service level management, add in IT governance. AM Process disipline not only reduces the time spent in reconciling diverse reports; it also optimizes value by reducing unapproved changes, cycle time and downtime.
  10. 10. © 2013 Information Services Group, Inc. All Rights Reserved Proper IT asset management (ITAM) is more than just good business; it results in hard dollar savings that drop to the bottom line. To conduct proper ITAM, an organization needs an enterprise-wide view of its asset estate, including identity, usage, spend and compliance. AM Solutions
  11. 11. © 2013 Information Services Group, Inc. All Rights Reserved 11 Finding the right resources to help 1. Clients and Suppliers often have staff/cost constraints to provide asset oversight and reporting Both need to focus on the higher level activities. 2. Processes not linked for all parts of the organization Standard processes are essential to effectively govern complex environments. 3. Integration of the Tools / Technology is needed to support the governance of the IT asset estate Need to manage asset utilization and services and prioritize planning initiatives 4. Time to successfully accomplish all of the above is at a premium Tools can be designed and ready to identify prioritized changes needed
  12. 12. © 2013 Information Services Group, Inc. All Rights Reserved 12 ► We create new value from existing sources of information that will: ► Reduce costs ► Manage change ► Minimize Risk Driving toward Asset Intelligence that is useful for IT Decisions Leverage accurate IT estate information to make confident, data-driven decisions that support IT transformation through a modest, turn-key model CIO’s need the measurements and controls to achieve operational and financial transparency with a true end-to- end view of all HW/SW assets leveraging analytics, process discipline and data quality intelligence Consolidate a view of all IT asset data throughout the organization into one place Achieve improved data quality/integrity using a fine tuned sophisticated, multi-source reconciliation process Leverage existing databases, tools & agents without deploying additional software Build discipline processes to ensure gaps and opportunities are addressed Deliver both out-of-the box analytics and customized reporting focused on your needs Realize rapid Time-to-Value with actionable results
  13. 13. © 2013 Information Services Group, Inc. All Rights Reserved 13 Built for an imperfect data environment; Developing trust thru transparency by integrating all the Asset information into a single source of truth Consumption Management offers IT Asset Intelligence A ISG integrates technology and proven processes to address gaps and opportunities found through the reconciliation Proven Processes Actionable Analytics and Reporting  Load diverse and separate sources of data about IT assets for reconciliation  Tool Administrator Build dashboards/reports; drive insight and corrections for:  Data accuracy  Delivery of asset services  Volume Validation Provide recommendations to reduce costs, mitigate risk and Governance / ITSM process improvements Intelligent Technology
  14. 14. © 2013 Information Services Group, Inc. All Rights Reserved 14 Asset Management delivers value ► Reduce IT costs ► Manage Demand ► Sound Business decision ► Mitigate Non Compliance Penalties ► Focus on Operations ► Eliminate Risk Better Bottom line Mitigate Risk Manage Change ► Deliver a complete IT estate profile ► Focus on the business ► Eliminate surplus assets Wrap-up Proper IT asset management (ITAM) is more than just good business; it results in hard dollar savings that drop to the bottom line. To conduct proper ITAM, an organization needs an enterprise- wide view of its asset estate, including identity, usage, spend and compliance.
  15. 15. Information Services Group is a leading technology insights, market intelligence and advisory services company, serving more than 450 clients around the world to help them achieve operational excellence. ISG supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services, with a focus on information technology, business process transformation, program management services and enterprise resource planning. Clients look to ISG for unique insights and innovative solutions for leveraging technology, the deepest data source in the industry, and more than five decades of experience of global leadership in information and advisory services. Based in Stamford, Conn., the company has more than 800 employees and operates in 21 countries. knowledge powering results® #ISGSIC