Digital Service Efficiency: New Management Scorecard

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This presentation, from Shekhar Dasgupta (Founder, GreenField Software) was an educational session at the Data Center World in Las Vegas on 2nd May 2014. In this session, titled “Digital Services Efficiency: A New Management Scorecard,” Shekhar first outlined management scorecards, including Kaplan & Norton’s Balanced Scorecard. He then discussed why a supplementary scorecard should be used to measure IT efficiencies with respect to specific Data Center operational roles. Finally, he presented how next-gen Data Center Infrastructure Management (DCIM) software would have a role-based Digital Services Efficiency (DSE) framework to achieve organizational objectives and goals.
Shekhar made a case for integrating the DSE framework within DCIM Software and extend the scope to cover Key Performance Indicators (KPIs) by different roles in Data Centers, namely: Data Center Managers, Infrastructure & Operations Staff, and IT Staff. This would be similar to the Balanced Scorecard methodologies which now see a place within ERPs. The mantra: What gets measured gets done!

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Digital Service Efficiency: New Management Scorecard

  1. 1. 1 Digital Service Efficiency: - A New Management Scorecard Shekhar Dasgupta Founder GreenField Software
  2. 2. 2 Digital Service Efficiency: A New Management Scorecard This presentation defines and outlines management scorecards, including Kaplan & Norton’s Balanced Scorecard. It then discusses why a supplementary scorecard should be used to measure IT efficiencies with respect to specific Data Center operational roles. Finally, it goes to show how next-gen DCIM software should build a role-based DSE framework to achieve organizational objectives and goals.
  3. 3. 3 Scorecard Examples Management Scorecards What are they? Organizational Performance Management frameworks • Mix of financial & non-financial measures against benchmarks • Started in late 1970s by Dr. Aubrey Daniels • Goal: alignment of top management towards common organizational objectives & positive outcomes through key measurement parameters What do they measure?  People Performance  Process Efficiency  Systems Efficiency
  4. 4. 4 Balanced Scorecard • Developed by Kaplan & Norton in 1990s • Linked company strategy to Financial & Non-Financial KPIs • Multiple variants, including industry- specific templates • Technology recognized as enabler for business process efficiencies and driver for innovation and growth • Observations:  Tool for objectively incentivizing executives on non-financial KPIs  Practitioners have not evolved any IT infrastructure-related KPIs nor directly linked them to the BSC framework
  5. 5. 5 Why a New Scorecard for Data Centers? • For the Data Center to function effectively/compete better • Who are responsible to make that happen? • How does one measure the new processes are being managed effectively? • What are the costs and how do they measure against benchmarks? • How does one measure that the innovations/ new systems are delivering desired outcomes?
  6. 6. 6 Digital Service Efficiency: A New Scorecard for Data Centers. “Digital Service Efficiency (DSE) methodology is ebay’s miles-per-gallon (MPG) equivalent for viewing the productivity and efficiency of technical infrastructure across four key areas: performance, cost, environmental impact and revenue”. “The DSE methodology equips decision-makers to see the results of their technical infrastructure choices to date (i.e., what MPG they achieved with their design and operations), and serves as the flexible tool they need when faced with making new decisions (i.e., what knobs to turn to achieve maximum performance across all dimensions). Ultimately, DSE enables balance within the technology ecosystem by exposing how turning knobs in one dimension affects the others”. Original Designer: Dean Nelson from eBay, Inc.Original Designer: Dean Nelson from eBay, Inc.
  7. 7. 7 DSE Dashboard ebay’s real-time dashboard available on http://tech.ebay.com/dashboard
  8. 8. 8 Next Gen DCIM Delivering Role-Based DSE Scorecard
  9. 9. 9 DCIM & Role-Based Digital Services Efficiency Today’s DCIM • Current DCIM measures real-time:  IT Asset utilization  DC Power usage (PUE, CUE)  Cooling Requirements  Floor & Rack Space Occupancy • Data analyzed for improving Energy Efficiencies & Capacity Planning • Helps to predict & prevent failures Today’s DCIM • Current DCIM measures real-time:  IT Asset utilization  DC Power usage (PUE, CUE)  Cooling Requirements  Floor & Rack Space Occupancy • Data analyzed for improving Energy Efficiencies & Capacity Planning • Helps to predict & prevent failures Next-Gen DCIM • DCIM DSE will provide Role-Based Scorecards • DCIM DSE will provide granular cost measurement across complete IT infrastructure • DCIM DSE scorecard will measure Infrastructure Capability for Process Improvements & Technology Innovations. Next-Gen DCIM • DCIM DSE will provide Role-Based Scorecards • DCIM DSE will provide granular cost measurement across complete IT infrastructure • DCIM DSE scorecard will measure Infrastructure Capability for Process Improvements & Technology Innovations.
  10. 10. 10 Data Center Operations & Roles Data Center Manager Facility Staff IT Staff Data Center Manager: Responsible for overall data center operations Data Center Manager: Responsible for overall data center operations Data Center Facility Staff: Responsible for data center facilities operations Data Center Facility Staff: Responsible for data center facilities operations Data Center IT Staff: Responsible for data center IT operations Data Center IT Staff: Responsible for data center IT operations
  11. 11. 11 DCIM DSE Scorecard For Facility Staff
  12. 12. 12 Data Center Facility Staff FacilityKRAFacilityKRA Infrastructure monitoring & health checkInfrastructure monitoring & health check Scheduled & Preventive MaintenanceScheduled & Preventive Maintenance Incident and Problem ManagementIncident and Problem Management Maintaining Energy efficiencyMaintaining Energy efficiency Uptime ReportingUptime Reporting FacilityKPIsFacilityKPIs
  13. 13. 13 Infrastructure Monitoring KRA & KPIs DCIM provides better DC facility monitoring by  Real-time monitoring of power systems > Electrical panels (HT & LT panels), UPS, PDUs (row & rack)  Real-time monitoring of cooling systems > Chillers, PACs, AHU  Real-time monitoring of environmental statistics of DC > temperature, humidity, water- leak, smoke, fire  Ability to monitor above subsystems through a single dashboard and get alerts on abnormal conditions over email/SMS DCIM provides better DC facility monitoring by  Real-time monitoring of power systems > Electrical panels (HT & LT panels), UPS, PDUs (row & rack)  Real-time monitoring of cooling systems > Chillers, PACs, AHU  Real-time monitoring of environmental statistics of DC > temperature, humidity, water- leak, smoke, fire  Ability to monitor above subsystems through a single dashboard and get alerts on abnormal conditions over email/SMS KRA: Data Center infrastructure monitoring & health check KRA: Data Center infrastructure monitoring & health checkDCIMDCIM Cooling KPIs UPS KPIs Environment KPIs Fan Runtime Utility Line & Output Voltage Cabinet Internal Temperature Supply Air Temperature Power Loss Cabinet Internal Humidity Supply Air Humidity UPS Load Room Ambient Temperature/Humi dity Rack Cooling Index Remaining Battery Capacity Smoke Return Temperature Index Internal UPS temperature Water Leak Detection Return Air Humidity UPS battery run time remaining before battery exhaustion Cabinet Door Ajar Power Consumption (kW) The elapsed time since the UPS has switched to battery power Motion
  14. 14. 14 Maintenance KRA & KPIs  Real-time monitoring & alerts help staff during routine checks as well as preventing failures of facility equipment.  Helps scheduling routine maintenance for facility devices  Breakdown maintenance analysis prevents similar failures or enables faster recovery  Real-time monitoring & alerts help staff during routine checks as well as preventing failures of facility equipment.  Helps scheduling routine maintenance for facility devices  Breakdown maintenance analysis prevents similar failures or enables faster recovery KRA: Preventive & Breakdown Maintenance KRA: Preventive & Breakdown MaintenanceDCIMDCIM Scheduled Maintenance Breakdown Maintenance Age of Device Failure Rate Criticality of Device Mean Time Between Failures Date of Last Check-Up Mean Time To Repair Check-Up Frequency Total Maintenance Cost Asset Replacement Value Condition Based Maintenance % Uptime Required Time Spare Part Used Versus Availability Immediate Corrective Maint. Time Total DT Related to Maintenance
  15. 15. 15 Incident Management KRA & KPIs DCIM enforces ITSM best practice framework on data center facility operations and ensures that all incidents, service requests are tracked till closure DCIM enforces ITSM best practice framework on data center facility operations and ensures that all incidents, service requests are tracked till closure KRA: Incident and Problem Management KRA: Incident and Problem Management DCIMDCIM Incident Measures Resolution Measures Number of Incidents Mean Response Time versus target response time Breakdown of incidents at each stage (logged, WIP and closed) Mean elapsed time for incident resolution (Turn around Time) Number and % of major incidents % of incidents resolved within target resolution time Number of incidents reopened as % of total Number and % of incidents incorrectly assigned Breakdown of incidents by time of day Number and % of incidents incorrectly categorized
  16. 16. 16 DCIM: Helping facility staff with their PUE KPI Ensure a stable PUE for the data center Ensure a stable PUE for the data center DCIM monitors data center PUE at real-time and also does analytics on historical PUE data to recommend ways to improve PUE DCIM monitors data center PUE at real-time and also does analytics on historical PUE data to recommend ways to improve PUE KPI: Maintain efficiency level (PUE) KPI: Maintain efficiency level (PUE) DCIMDCIM Other power management measures: watt per sf, RCI Other power management measures: watt per sf, RCI
  17. 17. 17 DCIM: Helping facility staff in their Uptime KPI Periodic reporting of Facility uptime, RTO & RPO statistics of Facility Services & subsystems. Periodic reporting of Facility uptime, RTO & RPO statistics of Facility Services & subsystems. DCIM provides Facility Uptime and recovery metrics. Includes reporting on health & functional statistics of facility subsystems like power, cooling and environmental components. DCIM provides dashboards, analytics and scheduled reports on facility uptime, DC energy efficiency (PUE) and incident management DCIM provides Facility Uptime and recovery metrics. Includes reporting on health & functional statistics of facility subsystems like power, cooling and environmental components. DCIM provides dashboards, analytics and scheduled reports on facility uptime, DC energy efficiency (PUE) and incident management KPI: Facility Uptime as per SLA KPI: Facility Uptime as per SLA DCIMDCIM
  18. 18. 18 DCIM DSE Scorecard For IT Staff
  19. 19. 19 KRA: Data Center IT StaffITKRAITKRA IT MonitoringIT Monitoring IT Hardware MaintenanceIT Hardware Maintenance IT Asset ManagementIT Asset Management IT Vendor/Contract ManagementIT Vendor/Contract Management Business ContinuityBusiness Continuity ReportingReporting ITKPIsITKPIs
  20. 20. 20 Monitoring & Provisioning KRAs & KPIs Real-time monitoring of resource utilization of IT devices: server CPU, memory, storage, network bandwidth. Real-time monitoring of resource utilization of IT devices: server CPU, memory, storage, network bandwidth. KRA: IT Monitoring & Provisioning KRA: IT Monitoring & Provisioning DCIMDCIM Proactive monitoring enables alerts when thresholds are breached. Proactive monitoring enables alerts when thresholds are breached. Auto Provisioning of Racks & DevicesAuto Provisioning of Racks & Devices Virtualization Planner Identifies servers that can be virtualized. Also identifies under-utilized IT devices; recommends retirement, replacement. Virtualization Planner Identifies servers that can be virtualized. Also identifies under-utilized IT devices; recommends retirement, replacement. Monitoring Provisioning CPU Utilization Time to Harden a New Server Memory Utilization Time to Provision a New Device Power Consumption Time to Provision New Rack space Storage Utilization versus Free Storage Time to Virtualize a new system Server Uptime versus Target Time to replace a legacy system Failures Prevented Due to proactive monitoring Time to decommission a legacy system Failures due to human errors Time to install patches & updates
  21. 21. 21 IT Hardware Maintenance KRA & KPIs DCIM helps schedule preventive maintenance (PM) based on following: Age of a device as recorded in DCIM Utilization/load of device as monitored by DCIM  DCIM helps IT staff understand cascading effect of temporary unavailability (due to PM) of a particular device: send prior notification DCIM helps schedule preventive maintenance (PM) based on following: Age of a device as recorded in DCIM Utilization/load of device as monitored by DCIM  DCIM helps IT staff understand cascading effect of temporary unavailability (due to PM) of a particular device: send prior notification KRA: IT Hardware Maintenance KRA: IT Hardware Maintenance DCIMDCIM Scheduled Maintenance Breakdown Maintenance Age of Device Failure Rate Criticality of Device based on utilization and application hosted Mean Time Between Failures Date of Last Check-Up Mean Time To Repair Date of last upgrade/nature of upgrade Total Maintenance Cost Asset Replacement Value Condition Based Maintenance % Uptime Required Time Spare Part Used Versus Availability Immediate Corrective Maint. Time Total DT Related to Maintenance
  22. 22. 22 IT Asset Management KRA & KPIs  DCIM serves as enterprise asset management software for both IT & Facilities.  DCIM auto-discovers intelligent assets and creates asset database.  DCIM helps manage IT asset relationships  DCIM also maintains information about redundant assets in HA and DR setup  DCIM serves as enterprise asset management software for both IT & Facilities.  DCIM auto-discovers intelligent assets and creates asset database.  DCIM helps manage IT asset relationships  DCIM also maintains information about redundant assets in HA and DR setup KRA: IT Asset ManagementKRA: IT Asset Management DCIMDCIM Asset Management Time taken to add or delete intelligent & Non-intelligent asset Time taken to update due to MAC Time taken to add interdependencies between assets % accuracy of asset database % Over & Under Provisioned
  23. 23. 23 Vendor/Contract Management KRA & KPIs  DCIM tracks support renewal dates  Tracks hardware vendor/supplier and services provider  DCIM tracks support renewal dates  Tracks hardware vendor/supplier and services provider KRA: Vendor/Contract Management KRA: Vendor/Contract Management DCIMDCIM Vendor Management % of systems out of support renewal % Uptime by device category and vendor % Contractor’s Compliance by SLA terms
  24. 24. 24 Business Continuity KRA & KPIs DCIM helps in better impact analysis of outages and in faster RCA of any incident and thereby helps in faster turn-around-time DCIM helps in better impact analysis of outages and in faster RCA of any incident and thereby helps in faster turn-around-time KRA: Business ContinuityKRA: Business Continuity DCIMDCIM Business Continuity Recovery Time Objective (RTO) Recovery Point Objective (RPO) Actual versus RTO & RPO
  25. 25. 25 DCIM: Helping IT staff in their Reporting KRA DCIM provides superior reporting on IT infra availability, resource utilization and incident management DCIM provides superior reporting on IT infra availability, resource utilization and incident management KRA: ReportingKRA: Reporting DCIMDCIM Trend Comparison for Multiple Servers
  26. 26. 26 DCIM DSE Scorecard For Data Center Manager
  27. 27. 27 KRA: Data Center Manager DCManagerKRADCManagerKRA Increase profitability by controlling data center costIncrease profitability by controlling data center cost Minimize DC failure and improve availabilityMinimize DC failure and improve availability Improve operational efficiency and meet business SLAImprove operational efficiency and meet business SLA Data center capacity planningData center capacity planning Adopt ‘Green’ practices for sustainable DC operationsAdopt ‘Green’ practices for sustainable DC operations Reports & AnalyticsReports & Analytics DCManagerKPIsDCManagerKPIs
  28. 28. 28 Data Center Manager Cost & Profitability KRA & KPIs Control CapEx:  Repurpose under-utilized servers  Discover stranded capacities & defer costly upgrade Reduce OpEx:  Reduce cooling costs  Reduce server footprint Control CapEx:  Repurpose under-utilized servers  Discover stranded capacities & defer costly upgrade Reduce OpEx:  Reduce cooling costs  Reduce server footprint KRA: Increase profitability by controlling data center cost KRA: Increase profitability by controlling data center cost DCIMDCIM
  29. 29. 29 Data Center Manager Availability KRA & PIs Ability to predict failures Better impact analysis in the event of subsystem/component failure Faster RCA and Turn around Time capabilities Ability to predict failures Better impact analysis in the event of subsystem/component failure Faster RCA and Turn around Time capabilities KRA: Minimize DC failure and improve availability KRA: Minimize DC failure and improve availability DCIMDCIM Actuals Number of Incidents/alarms SLA Benchmarks Breakdown of alarms at each stage (logged, WIP and closed) Major alarms by type Facilities: Fire, Temp, …. IT: Server, Storage, Application… RTO RPO
  30. 30. 30 Data Center Manager Operational Efficiency vs. SLA  DCIM automates critical data center processes like Asset Management, Capacity Planning and Provisioning, thereby minimizing human error, increasing accuracy and data integrity and improving operational efficiency of the data center.  DCIM automates critical data center processes like Asset Management, Capacity Planning and Provisioning, thereby minimizing human error, increasing accuracy and data integrity and improving operational efficiency of the data center. KRA: Improve operational efficiency and meet business SLA KRA: Improve operational efficiency and meet business SLA DCIMDCIM Actuals Asset DB Accuracy SLA Benchmarks Time and Cost to Provision additional resources Availability by Servers, Storage and Applications Watt Per Rack and Watt per sq ft PUE & CUE
  31. 31. 31 Data Center Manager: Capacity Planning KRA & KPIs Monitor current capacity utilization Forecast future capacity requirement accurately Design and implement critical capacities efficiently without under/over- provisioning Monitor current capacity utilization Forecast future capacity requirement accurately Design and implement critical capacities efficiently without under/over- provisioning KRA: Data center capacity planning KRA: Data center capacity planning DCIMDCIM Monitoring Planning & Forecasting Incidents due to Capacity Shortages Exactness of Capacity Forecast Capacity Adjustments % reduction in panic buying Unplanned Capacity Adjustments % reduction in lost business due to inadequate capacity Resolution Time of Capacity Shortage Capacity Reserves Percentage of Capacity Monitoring Relative reduction in cost of production of Capacity Plan Sources: 1. Clemson Computing & Information Technology 2. IT Process Maps
  32. 32. 32 Data Center Manager ‘Green Practices’ KRA & KPIs  Monitor energy consumption in the data center till the lowest level  Find ways to reduce energy consumption and improve efficiency  Ensure that DC operations comply with organization’s sustainability goals  Monitor energy consumption in the data center till the lowest level  Find ways to reduce energy consumption and improve efficiency  Ensure that DC operations comply with organization’s sustainability goals KRA: Adopt ‘Green’ practices for sustainable DC operations KRA: Adopt ‘Green’ practices for sustainable DC operations DCIMDCIM
  33. 33. 33 Data Center Manager Reporting KRA & KPIs Reports & Analytics on - Uptime and availability - Energy efficiency and health - Data center costs and savings - Capacity/Resource utilization and availability - Operational efficiency and SLA Compliance Reports & Analytics on - Uptime and availability - Energy efficiency and health - Data center costs and savings - Capacity/Resource utilization and availability - Operational efficiency and SLA Compliance KRA: Reports & AnalyticsKRA: Reports & Analytics DCIMDCIM
  34. 34. 34 How Will DSE Scorecard Help Data Center Operations? Link Back to Organizational Vision & Strategy & BSCLink Back to Organizational Vision & Strategy & BSC Are the Data Centre Infrastructure & Capital Costs aligned to process improvements? Have we been able to reduce Infrastructure OpEx? Are we maintaining a Risk-free Data Centre Infrastructure? Is the infrastructure delivering on the technology innovation? Next Gen DCIM w/ DSE Scorecard
  35. 35. 35 Thank You Shekhar Dasgupta shekhar.dasgupta@greenfieldsoft.com www.greenfieldsoft.com

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