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Service Value with Business Service Management!

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Business Service Management Service Value ROI

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Service Value with Business Service Management!

  1. 1. Business Service ManagementValue and Benefits<br />Michele Hudnall<br />michele@BusinessServiceManagementHub.com<br />Click Here to hear the presentation!<br />
  2. 2. So What! Why Act Now?<br />1 hour of down time = ~$100,000<br />Most organizations experience ~ 10 hours / year<br />$1M / year in down time<br />>70% of outages are reported by customers<br />>80% of outages are bad changes<br />What about revenue impact?<br />How Can You Afford Not To?<br />
  3. 3. So What! Why Act Now?Service Focus, Growth & Increased Complexity<br />Conservative efficiency gain in an $100M organization<br />1-12% of Revenue is IT Spend<br />5% $5 M IT Spend<br />70% of IT Spend is Operations<br />$3.5 M Operations<br />50% is Spent on Human Capital<br />$1.75M People<br />85% of Time is Spent Reacting & Maintaining<br />$1.49M “Keeping<br />the Lights on”<br />1.5% of Revenue<br />Maintenance<br />30%<br />$1.49M<br />Maintenance<br />35%<br />Conservative 15% Improvement<br />Reduce 85% Reacting & Maintaining<br />To 70% Reduces $1.49M to $1.23M<br />$260,000 Shift To Adding Value<br />versus “Bulb Monitor”!<br />Reactive<br />40%<br />Reactive<br />50%<br />Proactive<br />15%<br />Proactive<br />30%<br />
  4. 4. So What! Why Act Now?Service Focus, Growth & Increased Complexity<br />Conservative efficiency gain in an $100M organization<br />1-12% of Revenue is IT Spend<br />5% $5 M IT Spend<br />70% of IT Spend is Operations<br />$3.5 M Operations<br />50% is Spent on Human Capital<br />$1.75M People<br />85% of Time is Spent Reacting & Maintaining<br />$1.49M “Keeping<br />the Lights on”<br />1.5% of Revenue<br />Maintenance<br />30%<br />Service Impacting Events:<br /><ul><li>$100,000 / hr –– Average 10 hrs / Yr
  5. 5. $1M in Outage time or
  6. 6. 1% of Revenue –– $1M</li></ul>Reactive<br />40%<br />Proactive<br />30%<br />
  7. 7. So What! Why Act Now?Service Focus, Growth & Increased Complexity<br />Conservative efficiency gain in an $100M organization<br />1-12% of Revenue is IT Spend<br />5% $5 M IT Spend<br />70% of IT Spend is Operations<br />$3.5 M Operations<br />50% is Spent on Human Capital<br />$1.75M People<br />85% of Time is Spent Reacting & Maintaining<br />$1.49M “Keeping<br />the Lights on”<br />1.5% of Revenue<br />Maintenance<br />30%<br />Total Cost Management and Impact Avoidance<br />$1.260M Shift To Adding Value<br />~20% Cost of a Tool = 80% Return<br />Further potential with tool consolidation<br />Reactive<br />40%<br />Proactive<br />30%<br />
  8. 8. The Value and Benefits of the Business Service Management Imperative<br />Efficiency Gains<br />Flexible Technologies Deployed & Managed<br />Impact Avoidance<br />Proactive Service Priority & Value<br />Risk & Impact Controlled<br />Technology driving Business<br />Grow Top Line with Technology<br />2% of Revenue Lost –> Revenue Growth<br />
  9. 9. Business Service ManagementImperative<br />Michele Hudnall<br />michele@BusinessServiceManagementHub.com<br />

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