AMI - Building a Business Case for ITAM
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Everyone who deploys an IT hardware asset management solution does so with the intention that it will improve accuracy, procedures and the financial bottom line. But how do you really know if those goals are being achieved? In this fast-paced webinar, we’ll show you the key steps to asking the right questions, defining the right metrics and getting the answers you need to measure return on an ITAM investment.
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AMI - Building a Business Case for ITAM
- 1. Building the Business Case for ITAM Presented by: Tom Watson, AMI President & CEO December 13, 2012
- 2. Tom Watson Tom Watson President & CEO of AMI © 2012 AMI 2
- 3. ITAM Return on Investment © 2012 AMI 3
- 4. GQM G = Goal Q = Question M = Metric © 2012 AMI 4
- 5. Define the Goals © 2012 AMI 5
- 6. Define the Goals Make a long list © 2012 AMI 6
- 7. Example Goal 35x Reduce cycle time for inventories © 2012 AMI 7
- 8. Example Goal 35x Improve receiving speed and accuracy © 2012 AMI 8
- 9. Example Goal 35x Optimize maintenance contracts © 2012 AMI 9
- 10. Define the Goals Edit based on impact © 2012 AMI 10
- 11. Define the Questions © 2012 AMI 11
- 12. Questions to Ask • What are the steps to inventory each asset class? • How many different receiving scenarios exist? • Where is the most time spent in each process? • What are the primary sources of errors requiring re-work? • How often are there exceptions to the norm? © 2012 AMI
- 13. Define the Metrics © 2012 AMI
- 14. © 2012 AMI
- 15. Answers lead to Metrics • Q: Where is the most time spent in the process? • A: Determining asset information when no unique identifier available • A: Inventorying new assets that have not previously been enrolled in the database • A: Receiving assets with no order information available • A: Locating assets coming off maintenance © 2012 AMI
- 16. Metrics • Average time to inventory in normal cases vs. exception cases by asset class • Percentage of each asset class • Percentage of shipments with no order info • Percentage of assets with no identifier • Percentage of unknown assets encountered during inventory © 2012 AMI 16
- 17. Collect the Data © 2012 AMI
- 18. Capture data during the course of work 35x Average Time Overall Percentage Exception Count © 2012 AMI 18
- 19. Interpret the Data © 2012 AMI 19
- 20. Translating the Data into Dollars © 2012 AMI 20
- 21. Make Changes © 2012 AMI 21
- 22. Using Results to Affect Change Implement Advanced Shipping Notices Ensure Order Info on All Shipments Capture Rogue Assets as a Separate Process © 2012 AMI
- 23. Does ITAM Save Money? © 2012 AMI 23
- 24. Measure Again © 2012 AMI 24
- 25. Other Advantages Reveal more about other aspects of your business © 2012 AMI 25
- 26. Let's Review Step 1: Define Goals Step 2: Define Questions Step 3: Discover the Metrics Step 4: Interpret the Data Step 5: Make Changes Step 6: Measure Again © 2012 AMI 26
- 27. Questions? © 2012 AMI 27
- 28. Getting More Information • Web: amitracks.com • Phone: (877) 297-7618 • Presenter – Thomas Watson: tom.watson@amitracks.com – President & CEO, Co-founder – linkedin.com/in/tomwatsonami © 2012 AMI 28
Editor's Notes
- Welcome everyone. I’m Tom Watson, president and CEO of AMI. We work with enterprise IT to set up asset management processes, typically focused on hardware asset tracking. As we go today, please use the Question control to submit questions, and I’ll take a moment at the end to answer.Today we’re going to talk about a processToday we’re talking about building a business case for AMI. They’re getting asked questions, does this make sense?
- This webinar subject came up because of a common experience we have with potential clients who come to us with question “How much?” which invariably means how much they’ll have to pay fore our solutions, but the real question should be “How much return are we expecting from the solution.” We find more often than not, our prospects don’t know. They mainly concerned with having to go ask for budget, and the desire is to keep that budget request minimal as to not raise questions.IAITAMBut in order to get pricing, We start to ask questions to find out more about their business, we often find out they’ve also been asked by management to present a case for return on investment and performance in a hardware asset management solution.Change this to Performance / Price = ROI. If you save $2 by spending $1, $1 is your return on investment. How do you measure ITAM value?
- We’ve found that building a relevant and accurate business case for IT asset management starts best by applying the principles of G Q M, a system first developed at NASA. Conceptual Level (goal)Operational Level (question)Quantitative Level (metric)Develop a set of corporate, division and project business goals and associated measurement goals forproductivity and qualityGenerate questions (based on models) that define those goals as completely as possible in a quantifiable waySpecify the measures needed to be collected to answer those questions and track process and product conformance to the goalsDevelop mechanisms for data collectionCollect, validate and analyze the data in real time to provide feedback to projects for corrective actionAnalyze the data in a post mortem fashion to assess conformance to the goals and to make recommendations for future improvements
- There are many reasons for implementing ITAM. You’ve read the materials, drank the KoolaideSo the first step is defining how we intend to measure the return. This means defining what our business goals are. What are we here for? What is it expect the solution to do?Let’s use an actual example of how this might work under real enterprise conditions.
- To define goals, the first step making a big list first…Save time Save moneyImprove data qualityImprove levels of serviceReduce riskWhich of these are important to the business?
- Let’s set our goal as reducing cycle time for inventories.
- Citing our example about reducing cycle time for inventories, we might start with a measurement of time spent receiving, measured regularly over a period of weeks. We may find that the pace of receiving varies significantly. What causes that? In an effort to find you, we’ll note particularly which assets were accompanied with an ASN versus those that were not. After taking a practical number of measurements for large and small purchase orders, we could extrapolate that enterprise-wide.
- Citing our example about reducing cycle time for inventories, we might start with a measurement of time spent receiving, measured regularly over a period of weeks. We may find that the pace of receiving varies significantly. What causes that? In an effort to find you, we’ll note particularly which assets were accompanied with an ASN versus those that were not. After taking a practical number of measurements for large and small purchase orders, we could extrapolate that enterprise-wide.
- Then paring that list down, again and again, until you have a manageable number of goals you’re convinced will have the most significant effect on achieving your main goal.You can’t measure everything. Try to start smaller and affect one or two goals at a time. Otherwise, you’ll just get wrapped around the axle.
- Now that we have a goal defined, we need to take a look at the tasks and activities involved in data center audits, so that we can define the operational questions that impact blah, blah.
- Next, we need to define the right questions, the answers to which will have the biggest impact on achieving our goal. In this case, we might ask what percentage of shipments arrive with no order information? How long does it take to receive assets without order information versus those that do? We might also ask about the percentage of received assets that are pre-loaded into the database via advanced shipping notices.
- Citing our example about reducing cycle time for inventories, we might start with a measurement of time spent receiving, measured regularly over a period of weeks. We may find that the pace of receiving varies significantly. What causes that? In an effort to find you, we’ll note particularly which assets were accompanied with an ASN versus those that were not. After taking a practical number of measurements for large and small purchase orders, we could extrapolate that enterprise-wide.
- Which brings us to the importance of accurate and well structured reporting. The most important aspect of this stage of the process is formatting the reports in a manner that most clearly highlights patterns and reveals contrasts. You want this information to be as clear and accessible as possible as you head into the final step of this evaluation process…Translate it into meaningful results.This means hours spent into dollars.In our case, we found that the biggest impact to data center inventory cycle time was most impacted by the collection of rogue assets. When rogues are encountered, the speed of inventory drops dramatically.Therefore, the most impactful factor for data center cycle audit time is not in the inventory itself, but in the enrollment of assets into the repository at the receiving dock. The greatest impact we can have on cycle counts, therefore, is reducing the number of assets deployed with out ever being enrolled.
- Of course, the first thing people want to measure is the difference in dollars. Does the ITAM tool save money?
- To know this, you establish a baseline measurement, implement the change to the process, then measure again.With our baseline established, we can then launch the ITAM solution and measure again, getting a clear before and after picture.
- But in our experience, this type of exercise can reveal much more about other aspects of business that may not be as easy to count, but are just as vital. Things such as customer satisfaction and enhanced levels of communication.