Reboot Your IT Service Management

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Reboot Service Management

Eveline Oehrlich, Principal Analyst, Forrester Research

There are a variety of forces which are changing – complexity of the business environment, new technologies such as cloud and self-service and the workforce. What does this mean to you in IT? What are the challenges you are facing and how can you reboot your Service Management initiatives. Eveline discusses what can you do as an individual contributor, team lead or manager to gain or improve your Service Management program.

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Reboot Your IT Service Management

  1. 1. Reboot IT Service ManagementEveline Oehrlich, Principal AnalystMay 18, 2012 ay 8, 01 © 2011 Forrester Research, Inc. Reproduction Prohibited 2009
  2. 2. About ITSM Academy  Accredited Education  Since 2003 - Tens of Thousands  Certified Process Design Engineer (CPDE) Trained and Certified  ITIL® Foundation  ITSM Professional Diplomas  ITIL Capability (OSA|PPO|RCV|SOA)  Change/Support/SLM  ITIL Lifec cle (SS|SD|ST|SO|CSI) Lifecycle  Public Classes throughout U.S.  ITIL Managing Across the Lifecycle (MALC)  Corporate On-Site Classes  ISO/IEC 20000 Foundation  Virtual Classes  ISO/IEC 20000 Foundation Bridge /  Courseware Licensing  MOF Foundation  Corporate & Partner (GEM)  Practical, Value-Add Workshops p  Al Alumni P i Program  ITSM Leadership  PMI Global Education Provider  ITIL, MOF, ISO 20K Overviews  Apollo 13, Visible Ops: The Class 13  Certified Woman-Owned  And more!ITIL® is a Registered Trade Mark of the Cabinet Office.© ITSM Academy 2 Welcome!
  3. 3. The Bad News3 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  4. 4. Back into a budgetary deepfreeze . . . . . . Priceless!4 Entire contents © 2010 Forrester Research, Inc. All rights reserved.
  5. 5. Global business and government purchases of IT goods and services h f d d i (*Forrester Forecast) 2010 2011* 2012* Infrastructure 11.6% 10.7% 5.5% Telecom 6.4% 5.7% 3.0% Software 6.6% 9.8% 5.4% IT consulting lti 7.7% 7 7% 11.0% 11 0% 6.0% 6 0% IT 6.7% 10.6% 6.7% outsourcing Total IT 7.8% 9.7% 5.4% purchases5 Entire contents © 2010 Forrester Research, Inc. All rights reserved.
  6. 6. The Good News6 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  7. 7. Business Demands IT Help Even When Revenues FallJune 2006 B t P tiJ 2006, Best Practices “H “How IT M t Sh Must Shape A d M And Manage D Demand” d” © 2006, Forrester Research, Inc. Reproduction Prohibited
  8. 8. Three Sets Of Forces Shaping BusinessDemand 2010 2012 2015 Beyond8 © 2010 Forrester Research, Inc. Reproduction Prohibited
  9. 9. Business-ready, self-service technologies are on the rise egree of business change 10% 33% 10%-33% $28B b $258B 14MDe 80M 2010 2012 2015 Beyond 9 © 2010 Forrester Research, Inc. Reproduction Prohibited
  10. 10. And a self-sufficient, tech-savvy workforce is rising with it 60% usiness change 22% c 40% IT gree of bu 78%Deg 46% 26% 2010 2012 2015 Beyond 10 © 2010 Forrester Research, Inc. Reproduction Prohibited
  11. 11. The business environment will be radically more complex usiness change c 1B gree of bu $28TDeg 2010 2012 2015 Beyond 11 © 2010 Forrester Research, Inc. Reproduction Prohibited
  12. 12. The Challenges12 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  13. 13. The result: An increasing IT capability gap 2010 201513 © 2010 Forrester Research, Inc. Reproduction Prohibited
  14. 14. 2012 Top Five IT Management Priorities October 2011 “2012 IT Budget Planning Guide For CIOs”14 © 2010 Forrester Research, Inc. Reproduction Prohibited
  15. 15. The MOOSE M = Maintaining and O = Ongoing O = Operations S = Systems and E = Equipment15 © 2010 Forrester Research, Inc. Reproduction Prohibited
  16. 16. 2011 IT budgets and the MOOSE October 7, 2010 “2011 IT Budget Planning Guide For CIOs” Forrester report16 © 2010 Forrester Research, Inc. Reproduction Prohibited
  17. 17. IT Reputation ?17 © 2010 Forrester Research, Inc. Reproduction Prohibited
  18. 18. Only A Minority Perceive IT As Tightly Aligned With The Business December 2010 “Beyond Alignment: BT Strategic Planning”18 © 2010 Forrester Research, Inc. Reproduction Prohibited
  19. 19. We could … Source: Rudder Finn blog http://www.ruderfinn.co.uk/blogs/dotcom/files/2009/06/enviromental-head-in-the-sand.jpg19 © 2011 Forrester Research, Inc. Reproduction Prohibited
  20. 20. Reboot IT Service Management20 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  21. 21. Efficiency = People + Technology21 Entire contents © 2010 Forrester Research,Reproduction Prohibited 21 © 2011 Forrester Research, Inc. Inc. All rights reserved. + Process
  22. 22. Which of the following initiatives are likely to be your IT organization’s top IT management priorities over the next 12 months? Dont know Not on our agenda Low priority High priority Critical priority Create a comprehensive cloud/as-a-service 2% 25% 35% 26% 12% adoption/migration plan Lower IT’s operational costs to free up money for new 1%8% 31% 41% 20% initiatives. Improve the sustainability and energy efficiency of IT 1% 16% 38% 33% 13% operations and infrastructure Improve or streamline business processes 1%7% 24% 45% 23% Improve our customer management capabilities 1%7% 26% 44% 21% Increase IT capacity/resources to drive business 1% 6% 23% 47% 24% innovations Market the IT department within the firm 1% 22% 38% 30% 10% Increase the scope of IT’s centralized or shared services 1%10% 30% 43% 17% Define strategy for risk and compliance 1%9% 35% 40% 15% Improve the efficiency of IT (e.g., Lean initiatives) 1% 4% 22% 50% 23%Improve IT performance by adopting processes like CMM 4% 23% 35% 29% 10% or ITIL Improve the measurement of IT’s impact on business 1%10% 31% 43% 16% performance Base: 2741 North American, European, Asia Pacific, and Latin American IT budget decision-makers Source: Forrsights Budgets and Priorities Tracker Survey, Q2 201122 © 2012 Forrester Research, Inc. Reproduction Prohibited
  23. 23. Strategy gy People p Process Technology gy Service Management & Automation23 © 2011 Forrester Research, Inc. Reproduction Prohibited
  24. 24. Got Strategy?24 © 2011 Forrester Research, Inc. Reproduction Prohibited
  25. 25. The IT-To-BT Complexity EvolutionJanuary 2012 “Develop An IT Service Management And Automation Strategic Plan” © 2012, Forrester Research, Inc. Reproduction Prohibited
  26. 26. ITSM Strategy Why needed  Determine specific objectives and resources needed  Not just an idea but a systematic transformation from an informal to a formal strategy  Determines next steps26 © 2011 Forrester Research, Inc. Reproduction Prohibited
  27. 27. ITSM Strategy Benefits  Improve decision-making and stability  Measure progress towards the enterprise’s long-term vision  Transition IT to BT and from utility to trusted business partner  Evaluate resources and budgets in the future – objectively  Analyze the cost versus value of projects objectively  Deliver more value at lest cost by tightening execution model  Reduce costs from redundancies in tools and their uncontrolled proliferation27 © 2011 Forrester Research, Inc. Reproduction Prohibited
  28. 28. The Four Perspectives Of The IT Infrastructure And Operations Balanced ScorecardJanuary 2012 “Develop An IT Service Management And Automation Strategic Plan” © 2012, Forrester Research, Inc. Reproduction Prohibited
  29. 29. How has ITIL (IT Service Management) impacted the following? Org Reputation Ops Productivity Service Quality Significantly beneficial Beneficial No change Detrimental Significantly detrimental Don’t know Ops Costs Source: Service Management Insights from the 2011 Forrester/itSMF-USA ITSM Study29 © 2011 Forrester Research, Inc. Reproduction Prohibited
  30. 30. Do you have a written down IT Service Management Strategy? Does your team have access to it? Do you understand your benefits?30 © 2011 Forrester Research, Inc. Reproduction Prohibited
  31. 31. The change is lead by your team!31 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  32. 32. People The I&O Organization Is Splitting Into The “I” Group And The “O” Group I OFebruary 2012 “Refine Priorities Now For IT Service Management And Automation” © 2012, Forrester Research, Inc. Reproduction Prohibited
  33. 33. People Situation  What skills are needed in the future?  Do you have the right skills to take you into the future?  How to transition your people?  What training should they have?33 © 2011 Forrester Research, Inc. Reproduction Prohibited
  34. 34. Hot new roles emerge People  Business relationship manager  Automation architect  Service designer  Service manager g  Vendor manager  Process owner34 © 2011 Forrester Research, Inc. Reproduction Prohibited
  35. 35. The importance of processes ..in the age of the customer35 © 2011 Forrester Research, Inc. Reproduction Prohibited
  36. 36. Process in the age of the customer implications 1. Linking service desk to the entire service support value chain 2. Increased emphasis on customer experience 3. Mobility (manage on mobile and manage mobile devices) 4. Usability factor 5. Change in roles and functions 6. The need for process maturity 7. Collaboration across all functions 8. Business model flexibility36 © 2012 Forrester Research, Inc. Reproduction Prohibited
  37. 37. Age of the customer implications 1. Linking service desk to the entire service support value chain 2. Increased emphasis on customer experience 3. Mobility (manage on mobile and manage mobile devices) 4. Usability factor 5. Change in roles and functions 6. The need for process maturity 7. Collaboration across all functions 8. Business model flexibility37 © 2012 Forrester Research, Inc. Reproduction Prohibited
  38. 38. Focus on service support - Determine your service levels - Understand the cost of service support38 © 2012 Forrester Research, Inc. Reproduction Prohibited
  39. 39. Age of the customer implications 1. Linking service desk to the entire service support value chain 2. Increased emphasis on customer experience 3. Mobility (manage on mobile and manage mobile devices) 4. Usability factor 5. Change in roles and functions 6. The need for process maturity 7. Collaboration across all functions 8. Business model flexibility39 © 2012 Forrester Research, Inc. Reproduction Prohibited
  40. 40. Customer Experience?40 © 2012 Forrester Research, Inc. Reproduction Prohibited
  41. 41. Focus on customer experience - Implement a ser ice catalog service - Introduce self service initiatives41 © 2011 Forrester Research, Inc. Reproduction Prohibited
  42. 42. Age of the customer implications 1. Linking service desk to the entire service support value chain 2. Increased emphasis on customer experience 3. Mobility (manage on mobile and manage mobile devices) 4. Usability factor 5. Change in roles and functions 6. The need for process maturity 7. Collaboration across all functions 8. Business model flexibility42 © 2012 Forrester Research, Inc. Reproduction Prohibited
  43. 43. At home At client sites Can you support mobility? y pp y At satellite offices In transit43 © 2012 Forrester Research, Inc. Reproduction Prohibited
  44. 44. Age of the customer implications 1. Linking service desk to the entire service support value chain 2. Increased emphasis on customer experience 3. Mobility (manage on mobile and manage mobile devices) 4. Usability factor 5. Change in roles and functions 6. The need for process maturity 7. Collaboration across all functions 8. Business model flexibility44 © 2012 Forrester Research, Inc. Reproduction Prohibited
  45. 45. Focus on usability - Are your easy to do business with? - How usable are your tools?45 © 2011 Forrester Research, Inc. Reproduction Prohibited
  46. 46. How can you be reached?46 © 2012 Forrester Research, Inc. Reproduction Prohibited
  47. 47. Age of the customer implications 1. Linking service desk to the entire service support value chain 2. Increased emphasis on customer experience 3. Mobility (manage on mobile and manage mobile devices) 4. Usability factor 5. Change in roles and functions 6. The need for process maturity 7. Collaboration across all functions 8. Business model flexibility47 © 2012 Forrester Research, Inc. Reproduction Prohibited
  48. 48. Have you felt like this?48 © 2012 Forrester Research, Inc. Reproduction Prohibited
  49. 49. Two sides of the conversation49 © 2012 Forrester Research, Inc. Reproduction Prohibited
  50. 50. Exciting service support - Enable your front end with domain knowledge - Introduce knowledge management (across lifecycle) - Make the job exciting with tools - E Empower the t th team with training ith t i i - Enforce discipline through tools and processes50 © 2011 Forrester Research, Inc. Reproduction Prohibited
  51. 51. Age of the customer implications 1. Linking service desk to the entire service support value chain 2. Increased emphasis on customer experience 3. Mobility (manage on mobile and manage mobile devices) 4. Usability factor 5. Change in roles and functions 6. The need for process maturity 7. Collaboration across all functions 8. Business model flexibility51 © 2012 Forrester Research, Inc. Reproduction Prohibited
  52. 52. Efficiency comes through good processesFebruary 2012 “TechRadar™ For I&O Professionals: IT Service Management Processes, Q1 2012” © 2012, Forrester Research, Inc. Reproduction Prohibited
  53. 53. 2011 Forrester/itSMF USA ITSM Study How would you assess realistic value of the p y practices outlined in each of the official ITIL v3 books (1 = worthless and 5 = valuable)?100% 5.0 9% 9% 8% 8% 10%88% 45 4.5 30% 29% 19% 24% 4.175% 4.0 4.0 3.9 3.8 34%63% 3.5 3.5 Dont know 550% 28% 35% 3.0 4 35% 34% 338% 40% 2.5 2 25% 125% 2.0 Average 23% 21% 19%13% 14% 14% 1.5 8% 7% 5% 5% 4% 0% 1% 1% 1.0 Service Service Design Service Service Continual Strategy Transition Operations Service Improvement 53 © 2011 Forrester Research, Inc. Reproduction Prohibited
  54. 54. 2011 Forrester/itSMF USA ITSM Study How would you assess your organizations maturity in the p y y g y practices outlined in each of the official ITIL v3 books (1 = worst and 5 = best)?100% 5.0 6% 6% 5% 4% 5% 3% 3% 4% 9% 6%88% 4.5 11% 12% 20% 11%75% 4.0 19% 35% 24%63% 27% 3.5 Dont know 3.3 36% 550% 3.0 4 33% 28 2.8 338% 32% 2.5 2.5 2.4 2 2.2 30% 125% 2.0 38% 28% Average13% 28% 1.5 17% 21% 17% 8% 0% 3% 1.0 Service Service Design Service Servce Continual Strategy Transition Operations Service Improvement 54 © 2011 Forrester Research, Inc. Reproduction Prohibited
  55. 55. Process allows you to automate! The Forrester Automation Wheel Helps You Define Your Automation Tool PortfolioFebruary 2012 “Refine Priorities Now For IT Service Management And Automation” © 2012, Forrester Research, Inc. Reproduction Prohibited
  56. 56. Age of the customer implications 1. Linking service desk to the entire service support value chain 2. Increased emphasis on customer experience 3. Mobility (manage on mobile and manage mobile devices) 4. Usability factor 5. Change in roles and functions 6. The need for process maturity 7. Collaboration across all functions 8. Business model flexibility56 © 2012 Forrester Research, Inc. Reproduction Prohibited
  57. 57. Collaboration is a critical success factorAreas for collaboration Guardrails and Synergies Guidelines Process Experience Knowledge across areas Service Outsourcer Delivery Consultant CIO Service Desk D k Other IT Groups LOB 57 © 2010 Forrester Research, Inc. Reproduction Prohibited
  58. 58. Age of the customer implications 1. Linking service desk to the entire service support value chain 2. Increased emphasis on customer experience 3. Mobility (manage on mobile and manage mobile devices) 4. Usability factor 5. Change in roles and functions 6. The need for process maturity 7. Collaboration across all functions 8. Business model flexibility58 © 2012 Forrester Research, Inc. Reproduction Prohibited
  59. 59. Cloud adoption accelerates in 2012 “What are your firm s plans to adopt the following software technologies?” What firm’s technologies? (Respondents who selected “implementing, not expanding,” “expanding/upgrading implementation,” “planning to implement in the next 12 months,” or “planning to implement in a year or more”) 60% SaaS 50% By the end of 2012, 45% of all companies will be using SaaS (60% in 2012!). 40% IaaS 30% PaaS 20% 10% 0% 2012 2013+ 2009 2010 2011 (planning to  (planning to  (actual) (actual) (actual) implement in the  implement in a year  next 12 months) or more) IaaS 9% 14% 17% 29% 41% PaaS 5% 8% 11% 19% 32% SaaS 21% 25% 30% 45% 60% Base: 1,900 to 2,438 software decision-makers decision makers Source: Enterprise And SMB Software Survey, North America And Europe, Q4 2009; Forrsights Software Survey, Q4 2010; Forrsights Software Survey, Q4 201159 © 2012 Forrester Research, Inc. Reproduction Prohibited
  60. 60. The shift from cost and speed to business performance “How important were the following benefits in your firm’s decision to use SaaS?” (Percentage of respondents who selected 4 [important factor] or 5 [very important factor]) (Select one for each row) “Lower overall cost” “Improved business agility” 71% 72% 58% 61% 60% 32% 2009 (N = 287) 2010 (N = 534) 2011 (N = 920) 2009 2010 2011 (N = 287) (N = 534) (N = 920) Base: North American and European software decision-makers who are using or p g planning to use SaaS g Source: Source: Enterprise And SMB Software Survey, North America And Europe, Q4 2009; Forrsights Software Survey, Q4 2010; Forrsights Software Survey, Q4 201160 © 2012 Forrester Research, Inc. Reproduction Prohibited
  61. 61. Conclusion Stop running blind: Strategize! Adapt organization, structure and skills Change the perception that process is stifling and at the mercy of the process police (ITIL can’t be a religion) Act like a service provider – then become one - then partner with business A t Automate and streamline t d t li  Yes with tools but rationalize! Look back celebrate – then check what can be improved © 2012, Forrester Research, Inc. Reproduction Prohibited
  62. 62. Questions62 © 2011 Forrester Research, Inc. Reproduction Prohibited
  63. 63. Thank you yEveline Oehrlich (Hubbert)+1 617.613.8803 @eoehrlich@forrester.comwww.forrester.com © 2009 Forrester Research, Inc. Reproduction Prohibited

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