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Strategies of Top Performing Organizations in Deploying AIOps - key findings

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DEJ's AIOps research study titled - Strategies of Top Performing Organizations in Deploying AIOps is based on insights from 1,100+ organizations (721 of them using AIOps capabilities).

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Strategies of Top Performing Organizations in Deploying AIOps - key findings

  1. 1. The key findings of Digital Enterprise Journal's AIOps research study based on insights from more than 1,100 organizations. Strategies of Top Performing Organizations in Deploying AIOps Key findings from the research study Bojan Simic, President and Chief Analyst Digital Enterprise Journal
  2. 2. Clarify what the term "AIOps" means to organizations and where they see the value. Identify key drivers, use cases and challenges for AIOps adoption and alignment with business goals 1 Analyze a group of AIOps top performing organizations (TPOs), their strategies and performance improvements Provide actionable recommendations to end-user organizations about how to achieve the success level of the TPOs 4 Key goals for the study Research approach DEJ analyzed the findings using it’s Maturity Framework to identify attributes and strategies of top 20% of participants organizations based on their performance (TPOs) in deploying AIOps Participants The study is based on insights from 1,100+ organizations (721 of them using AIOps capabilities) Foundation in a previous research 2.9x 57% 64% Increase in the number of organizations that have AIOps as their budget item, over the last 12 months Decline in number of organizations that perceive AIOps as “unproven technology” since 2018 Reported they find technology landscape for AIOps solutions “confusing” 3 2 Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  3. 3. 68% Reported increased customer expectations for engagement and experience 60% Reported impact on business outcomes as a top selection criteria 86% Average annual increase in the amount of change in IT environments since 2016 Market 55% reported driving innovation as the key reason for deploying microservices 91% Increase in missed revenue due to performance and availability issues since 2016 6.7x Increase in deploying cloud services to drive innovation since 2014 Technology 76% More organizations reporting that making IT data actionable as their key goal 64% listed a service-centric approach as a key attribute of a modern IT organization 52% Looking to take “Continuous Everything” approach (CI CD + assurance / reliability) Enablers 2.1x More organizations using technology to differentiate from competitors since 2017 4.5x More organizations making software a core part of their business strategy since 2017 77% ranked importance of automation for IT performance as "high" or "very high” Market context Body of research Over the last 6 months, DEJ conducted research from more than 7,000 user organizations in the following areas: 1. IT Transformation 2. State of IT Performance Management 3. Managing IT Operations 4. Enabling Engineering Teams and DevOps Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  4. 4. The term AIOps could mean different things to different people. To reduce market confusion, DEJ set the stage for the rest of the study by letting organizations define what AIOps means to THEM and identified the top goals they are looking to achieve by deploying AIOps capabilities. AIOps is often perceived as a solution for “alert suppressing” or “incident management”, but the research shows that the value for organizations go way beyond these 2 areas. Deploying AIOps to identify and resolve performance issues faster 61% Deploying AIOps to create actionable insights into IT data 73% Deploying AIOps to proactively prevent performance issues 66% increase in the number of organizations that are deploying, or looking to deploy AIOps capabilities since 2018 83% Beyond reducing “alert noise” 53% Deploying AIOps to reduce alert noise Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  5. 5. Top areas where organizations are looking to leverage actionable insights from AIOps Creating cost efficienciesNeed to streamline business processes Understand interdependencies between service elements Evaluate business impact of technology deployments Performance improvements by organizations leveraging AIOps Reduction in time to isolate a root cause of cloud performance issues Creating actionable insights with AIOps 65% 60% 57% 53% 63% 26% Reduction in the percentage of IT budgets spent on operating and maintaining IT services Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  6. 6. 76% Improve customer satisfaction and engagement 71% Use technology as a competitive advantage 64% Increase in customer expectations 59% Managing dynamic and hybrid environments 58% Need to ship better software faster 56% Increase in volume and velocity of data to be processed Fit for digital transformation All definitions of digital transformation have 2 common attributes: 1) using technology as a source of competitive advantage; 2) having a core focus on improving and creating customer experiences. The research shows that AIOps is well positioned to address both of these areas. Drivers for AIOps deployments Importance of AIOps for business goals – ranked “Important” or Very Important Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  7. 7. Key AIOps capabilities for DevOps Higher toil reduction by organizations that are deploying AIOps capabilities 49% Automated discovery of interdependencies and changes in dynamic environments Alerting through context-based automation Reduce toil for engineering teams Add more intelligence across entire code feedback loop Ship software faster Proactively prevent performance issues 62% 56% 48% 45% Key value areas of AIOps for DevOps and SRE 51%66% Service-centric, unified view across incident lifecycle Value for DevOps 71% Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  8. 8. 1 TPO class is defined with the goal to identify practices of these organizations that allow them to outperform their peers 2 To provide recommendations to "all other" organizations, DEJ identified TPOs capabilities that have the strongest impact on their performance 3 All key TPO capabilities are grouped in 4 categories - Strategy, Process, Organization and Technology DEJ's research shows no correlation between companies' sizes, industry sectors or geographical location and their representation in the TPO class KPI Top Performing Organizations (20%) All others Percent of non-actionable alerts automatically discarded 95% 54% Percent of performance issues that are proactively detected 82% 55% Average Mean Time to Resolution (MTTR) per incident 41 minutes 141 minutes (2 .4 hours) Average customer satisfaction score 94 points 73 points Definition of Top Performing Organizations (TPOs)
  9. 9. More likely to redesign internal processes to align with AIOps workflows More likely to have AIOps platform for IT Ops and DevOps collaboration More likely to have established process for identifying gaps in IT skill set More likely to have automated event to resolution workflow More likely to have bi-directional integration into ticketing and notification systems 2.9x Shorter average duration of a war room meeting 62% More likely to achieve Service Level Objectives (SLOs) as compared to all others 2.5x 81% 71% 69% 52% As a result of having these strategies, TPOs are more likely to report measurable benefits Attributes of TPOs – Org and Processes These capabilities are just a sample of 20+ TPO attributes identified in the study Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  10. 10. More likely be leveraging a high precision, time series database More likely to have the ability to ability to link events to business outcomes More likely to have capabilities for automated impact analysis More likely to have capabilities for Automated remediation of performance issues More likely to be leveraging a collaboration platform for different groups in the organization More likely to have capabilities for automated discovery of each element of service tree topology 2.5x 2.4x 71% 69% 64% 61% 69% Less likely to experience issues with application slowdowns 4.1x Fewer incidents escalated as compared to all others As a result of having these capabilities, TPOs are more likely to report measurable benefits Attributes of TPOs - Technology Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  11. 11. Business outcomes impact TPOs are 2x more likely to be leveraging these functions Prevention TPOs are 52% more likely to be leveraging these functions Contextualization, analysis and diagnostics TPOs are 18% more likely to be leveraging these functions Remediation TPOs are 33% more likely to be leveraging these functions. Collaboration TPOs are 65% more likely to be leveraging these functions. Data ingestion, enrichment, correlation and suppression The research doesn't show any significant differences in deploying these functions between TPOs and all others Importance of key AIOps functions Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  12. 12. $1,270,000 Spent annually, on average, on incident escalations that could be avoided Some of the contributing factors include: lack of context-based automation, amount and velocity of incidents and events, amount of alerts that are not actionable, time spent by engineers on handling incidents, etc. Incident management Annual cost of “war room” meetings $4,620,000 Some of the contributing factors include: frequency of incidents, inability to identify the root cause,, number of IT FTEs involved, lack of context, the amount of IT data that is not actionable, inefficient workflows and processes, etc. Troubleshooting & resolution $634,000 Average revenue lost per month due to application slowdowns Some of the contributing factors include: inability to proactively prevent performance issues, lack of end-to-end view into health of business services, increased expectation for performance, time to resolve performance issues, etc. User experience Cost of not acting Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  13. 13. The study strongly proves that not all AIOps solutions are created equal. The research also shows that in order to successfully adopt AIOps capabilities and close the gap with TPOs, organizations should be considering the following 6 areas. Organizations should think about AIOps as a strategic solution, not as a tool. That approach will allow them to achieve full benefits of AIOps deployments and get the value that goes beyond tactical tasks. 1 Successful AIOps deployments go beyond technology and require an organizational and strategic approach. 2 Organizations are increasingly understanding limits of manual work and identifying more tasks that are not humanly possible to complete without context-based automation. 3 By successfully addressing two key attributes of digital transformation - using technology as a competitive differentiator and improving customer experience - AIOps is well positioned for future growth. 4 Successful AIOps deployments are not easy, but many business areas being impacted and high cost of non acting makes it well worth it to make changes necessary for effective deployments. 5 AIOps plays a key role in reducing alert noise and improving the troubleshooting process, but maximizing the value of IT data, proactive management, enabling DevOps and dynamic environments are driving even more value. 6 Even organizations that do not fall into the TPO class are experiencing performance improvements from deploying AIOps capabilities. TPOs view closing skill gaps of IT staff as one of the key benefits of AIOps, while other organizations see IT skill set as one of the key challenges for AIOps deployment. Key takeaways Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  14. 14. Upcoming studies Enabling Top Performing Engineering Teams Publishing: May, 2020 Study format: Maturity Class Transforming IT Operations for Digital Economy Publishing: June, 2020 Study format: Technology Transformation The Value of Observability Publishing: June, 2020 Study Format: Technology Transformation AIOps Solution Selection Publishing: July, 2020 Study Format: Technology Transformation New Generation IT Monitoring Publishing: Jul-Aug, 2020 Study format: Maturity Class The Role of Automation in Enabling DevOps Publishing: Jul-Aug, 2020 Study format: Maturity Class Recent and upcoming research Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  15. 15. Focus on business outcomes Methodology framework leveraging a multi- step approach to connect vendor's differentiators with business outcomes Situational analysis Providing actionable recommendations to user organizations based on their individual requirements User Insight Platform Ongoing, personalized approach for research data collection and analysis Business model Ability to continuously leverage up-to-date research in each stage of the buying cycle & sales funnel Bringing together the most advanced concepts from analyst research and media industries Contact DEJ Copyright © 2020 Digital Enterprise Journal. All Rights Reserved. About DEJ Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.

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