Automating Service Management: Decision Making for the Digital Age

IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Automating Service Management
Decision-Making for the Digital Age
Dennis Nils Drogseth
Vice President
Enterprise Management Associates
Roy Ritthaler
VP of Product Marketing
Micro Focus

INDUSTRY ANALYSIS & CONSULTING© 2018 Enterprise Management Associates, Inc.
Watch the On-Demand Webinar
2
• Automating Service Management: Decision Making
for the Digital Age On-Demand webinar is available
here: https://ema.wistia.com/medias/uwiqvbo947
• Check out upcoming webinars from EMA here:
http://www.enterprisemanagement.com/freeResearch

INDUSTRY ANALYSIS & CONSULTING© 2018 Enterprise Management Associates, Inc.3
Featured Speakers
Dennis Nils Drogseth, Vice President, EMA
Dennis joined Enterprise Management Associates in 1998 and currently manages the New
Hampshire office. Dennis brings several years of experience in various aspects of
marketing and business planning for service management solutions. He supports EMA
through leadership in IT Service Management (ITSM), CMDB systems, as well as
megatrends like advanced operations analytics, cross-domain automation systems, IT-to-
business alignment, and service-centric financial optimization. Dennis also works over
several practice areas to promote dialogue across critical areas of technology and market
interdependencies.
Roy Ritthaler, VP of Product Marketing, Micro Focus
Roy leads the go-to-market strategy and execution for software offerings in the Hybrid IT
management marketplace. This includes significant interaction with customers and markets
across the globe, as he helps direct and shape business direction and strategy. Prior to
joining Micro Focus, he has held senior product, R&D and marketing positions with Hewlett
Packard, Dell and BMC Software in their cloud and management businesses. His career
has been built on a passion for customer success, and it spans smaller companies in the
energy and technology sectors, and IBM where he started his career as an electrical
engineer.

INDUSTRY ANALYSIS & CONSULTING© 2018 Enterprise Management Associates, Inc.4
Logistics
An archived version of the event recording
will be available at
www.enterprisemanagement.com
• Log questions in the chat panel located on
the lower left-hand corner of your screen
• Questions will be addressed during the
Q&A session of the event
QUESTIONS
EVENT RECORDING
A PDF of the speaker slides will be
distributed to all attendees
PDF SLIDES

Agenda
• How are service management or ITSM teams
evolving?
• How have strategic priorities in service management
changed?
• How are ITSM teams beginning to adopt automation,
self-service, social IT and analytics and AI?
• What should service management teams look for in
the future both in terms of challenges and
opportunities?
5 © 2018 Enterprise Management Associates, Inc.

Some Demographic Highlights
• Geography (264 respondents):
– 62% in North America
– 38% in Europe (England, Germany, France)
• Strong Executive Presence:
– 41% director or above
• 23% CIO or CTO
• 6% CEO of CFO
– 14% non-IT business
• Lead Verticals:
– High-tech SW, Finance/banking/insurance/Retail
• Average IT budget: about $30 million

How Are Service Management
Teams Evolving?

IT Operations and the IT Executive Suite Led in Service
Management Oversight, with ITAM in Third Place
26%
23%
13%
11%
7%
5%
4%
3%
3%
3%
2%
0%
IT operations overall
IT executive suite (VP or CIO level)
IT asset management
Cloud
Service desk/help desk/customer support
Data center
Cross-domain service management organization
Customer service organization
Business line management
Call center organization
Network operations
Other
In your organization, which group oversees/coordinates
your ITSM-related capabilities?
Sample Size = 264

Most Service Management Teams
Are Slated for Growth
• 56% of service management teams were slated for
growth:
– 36% will stay the same
– 7% will be downsized
• 2% of these due to greater efficiencies
• Top reasons for growth
– Our company is growing and so is ITSM
– We are more actively engaging in operations
– Cloud has required an increased investment in ITSM
– We providing greater direction for ITAM/SAM
– We are assuming more responsibilities across the lines of
business

Next-Generation Service Management Touches
Many Roles and Brings Values
41%
39%
38%
37%
37%
36%
36%
35%
34%
34%
31%
1%
Integrated cross-silo support for IT asset management
Integrated cross-silo support for IT governance analytics for OpEx efficiencies
Integrated cross-silo support for the Internet of Things
Integrated cross-silo support for change management
Integrated support for business process workflow creation (HR, facilities, etc.)
Integrated cross-silo support for problem, incident, or availability/performance
management
Integrated cross-silo support for security/fraud/risk management
Integrated cross-silo support for DevOps
Core service desk/help desk operations (incident and request management)
Integrated cross-silo support for portfolio planning and optimization
Integrated cross-silo support for endpoint management (including mobile)
Other
Which of the following ITSM-related areas are you involved with?
Sample Size = 264, Valid Cases = 264, Total Mentions = 1,058

Some Role-Related Perspectives
• Roles:
– Exec suite
– ITSM
– Operations
– IT financial management
– Other (architecture, business
analysts, development, X-
domain)
• Governance
– All viewed service
management as the central
point of governance
• Greatest roadblock
– All see SW, deployment
and administrative
complexity as #1 issue

Micro Focus at a Large Global Manufacturer—
Delivering Service Management Value Across the Board
“Micro Focus’s solution is extremely feature-rich, with full cross-
domain insights. We are running a very high number of discovery
jobs, and across the board these solutions have delivered impressive
capabilities, enabled by both agentless and agent-based discovery.
The use cases are varied, including support for software asset
management, server and network management, compliance and
security needs, support for development, and virtually all operational
processes such as incident, change, and problem management.”

How Have Strategic Priorities in
Service Management Changed?

Improved Internal User Experience Led as the Top
Strategic Priority for Service Management
10%
9%
9%
8%
7%
7%
7%
7%
6%
6%
5%
5%
4%
4%
4%
0%
Improve end-user experience (internal to business)
Integrated cross-silo support for security/fraud/risk/compliance management
Transform end-user support through mobility, self-service, intelligence BOTs, and/or other options
Integrated cross-silo support for IT asset management
Core service desk/help desk operations (incident and request management)
Improve operations-to-service desk integrations/processes for incident/problem and availability
management
Improve operations-to-service-desk integrations/processes for configuration/change management
Integrated cross-silo support for the Internet of Things
Support the move to internal/external cloud
Integrated cross-silo support for IT governance for OpEx efficiencies
Integrated cross-silo support for portfolio planning and optimization
Improve customer/partner/supply-chain user experience
Enhance support for onboarding and brokering third-party services
Support for DevOps and accelerated agile application deployments
Integrated support for business process workflow creation (HR, facilities, etc.)
Other
What is your company's GREATEST strategic priority for the role of ITSM?
Sample Size = 264

Shifting ITSM Perspectives: 2015 Versus the Present
• Where they stayed the same:
– The top “strategic priority” in both years was ‘improve end-
user experience management for internal users.’
– The top three priorities for publishing cloud-related
services in service catalogs or portals were virtually identical
in 2015 and 2017. These were:
• SaaS (internal cloud)
• IaaS (internal cloud)
• SaaS (public cloud)

Shifting ITSM Perspectives: 2015 versus the Present
• Where they differed:
– The chief obstacle to ITSM success in 2015 was
‘organizational and political issues.’ In 2017 the chief obstacle
was ‘software, deployment and administrative complexity.’
– Growing Consolidation of IT and non-IT customer service
into a single organization
• In 2015, 72% of respondents had established an IT-to-enterprise
team with 11% having no plans to go forward. In 2017, 83% had
established an IT-to-enterprise team with only 4% having no
plans to go forward.
– Growing DevOps involvement dramatically accelerated.
• In 2015 only 65% of ITSM teams were actively involved in
agile/DevOps initiative—up from 39% in 2013. In 2017 that
number climbed to 89%.

Chief Impacts of Cloud in Changing ITSM Team
Priorities
1. Cloud and virtualization has made asset management more
challenging.
2. Cloud is shortening the review cycle for managing change.
3. Cloud is changing how we approach release management.
4. Cloud is changing how we’re organized.
5. Cloud is requiring higher levels of automation in provisioning
services.
6. Cloud is pushing us to pay more attention to SecOps.
7. We see cloud as a resource for reducing ITSM, ITAM,
operations and other related costs

One Perspective on the Need for Service Management
Change
“The goal with Micro Focus was to have the
resources to have a deeper and more unified
perspective on IT performance and IT data
than we could get from outsourcing.”

How Are ITSM teams Adopting
Automation, Self-service, Social IT
and Analytics and AI?

Automation Priorities
• Key priorities in automation:
– Workflow within and across IT (27%)
– Automation in support of infrastructure
inventory/discovery (14%)
– Service request management (14%)
– Analytics-driven automation (13%)
– Runbook or IT process automation (12%)
– Enhanced automation for self service (12%)
– Configuration for core infrastructure (9%)

Two Perspectives on Automation
“In many areas, for many IT
processes, our IT teams were doing
a lot of manual tracking, often using
spreadsheets. We do this now
across the board in a more
automated fashion.”
“Automation has been a
strong value—for supporting
and accelerating service
management and other
processes in incident
management, change
management, enterprise
services, and other areas.”

Technology Priorities for Self-Service
40%
40%
37%
26%
23%
20%
15%
0%
Knowledge mgmt
More effective automation for supporting end-user access
to services
More effective automation for resolving end-user issues
Service catalog
Mobile access
Enhanced role-based visualization
Social media
Other
Which two self-service capabilities are most important to your
organization's ITSM capabilities?
Sample Size = 270, Valid Cases = 270

Service Catalog or Portal Insights Into Self-Service
• What IT-related Services are published in
your service catalog?
– End-user device (PC, laptop, mobile, etc.)
provisioning
– End-user support (help and incident)
– End-user support for production services
(e.g. transactional applications
– Appstore-type access for end-user self-
provisioning
– IT professional services (project management)
– Internal IT-to-IT provisioning
– Support for cloud services
23

Social IT Across End Users and IT Staff Was the Top
Functional Priority for Service Management Teams
22%
20%
19%
19%
18%
17%
17%
16%
16%
13%
12%
11%
Social IT across the end-user community and ITSM staff
New or enhanced project management capabilities
Enhanced capabilities for software asset management
Mobile in support of IT stakeholders
Enhanced capabilities for IT asset management
Service catalog or service portal for cloud
New or enhanced analytics for improved insight
Enhanced automation for self-service
Social IT across the ITSM team
Service catalog or service portal for self-service
Mobile in support of non-IT service consumers
New or enhanced CMDB/CMS/ADDM
Which two (2) of the following functional capabilities are or will be most important for
your organization's ITSM initiative?
Sample Size = 264, Valid Cases = 264, Total Mentions = 528

Analytic Priorities for ITSM are Rich and Varied
• Analytics for:
– IT governance (30%)
– Change management (29%)
– Optimizing the IT infrastructure (28%)
– User experience/visibility into end-user problems (27%)
– Optimizing IT application services (26%)
– Using an ITSM knowledgebase (24%)
– Minimizing risk/fraud (22%)
– In support of IoT (22%)
– Assimilating data sources (21%)
– And the list goes on…
25

INDUSTRY ANALYSIS & CONSULTING© 2016, Enterprise Management Associates
And Don’t Forget the Power of Bots!
• Natural language processing
– Translates normal language from any input into
complex commands to run business workflows
• AI for summarizing huge volumes of data
– Automating knowledgebase insights
– Helping with routine end-user queries
– Helping with onboarding
– Helping Level 1 with critical resolution insights
• Bot/AI training-– an area of industry differentiation
26

Two Perspectives on the Benefits of Analytics
27
“In the past we caught
only 3% of our
problems proactively.
That percentage went
up to 88%.”
“We are also able to support more
projects and more business opportunities
without increasing headcount. It is
enabling us to prepare for reaching more
effective ways of working as an
organization in the future.”

What Should Service Management
Teams Look for in the Future?

What Correlated with Service Management Success?
• Executive suite leadership
• Investments in:
– Automation
– Self-service
– Social IT
– Analytics and AI
• Mobile access for ITSM professionals
• Offering consumers mobile access to ITSM services
• Mature consolidation of ITSM with customer service
• Viewing ITIL as more important
• Success in CMDB deployments
• Supporting usage and cost insights in service catalogs
• Effective ITSM support for DevOps overall
• Support for IoT

Integrated Support for Business Alignment and Optimization
Will Play a Greater Role in Service Management Going
Forward
26%
26%
23%
22%
21%
20%
19%
15%
14%
14%
0%
0%
Executive dashboards for sharing information within IT
Analytics for IT impacts on business outcomes (revenue/usage/process impacts)
Workflow/automation for processes linking IT and business stakeholders
Social media for customer satisfaction assessments
Analytics in support of partner-related business process optimization
Support for managing enterprise assets (Internet of Things)
Support for creating enterprise process workflows
Executive dashboards/reporting between IT and business stakeholders
Social media for improved dialogue between IT and business stakeholders
Omnichannel support for IT-to-business dialogue
Other
None of these (We are not focused on business-to-IT financial issues.)
Which two (2) of the following IT/business management capabilities are important
to your organization's ITSM directions?
Sample Size = 264, Valid Cases = 264, Total Mentions = 528

INDUSTRY ANALYSIS & CONSULTING© 2016, Enterprise Management Associates
Ten Points for Optimizing the
Service Management Value
1. Executive leadership/commitment is key
2. Prepare to support an expanding number of stakeholders
inside and outside of IT
3. Prioritize richer data insights from a more diverse set of
reconciled sources for service management decision
making
4. Prepare for toolset consolidation as it impacts core IT
processes and stakeholder alerting
5. Metrics count—including both performance and
governance-–so stay current and help to drive the metrics
process
6. Plan to progress in stages: Don’t try to boil the ocean all
at once
7. Remember that service management is central to
transforming IT for the digital age
31

Two Perspectives on Moving Forward
“We’ve been able to consolidate
our processes for change, incident,
and problem management across
our entire operation.”
“We can better evaluate
where we are, how we’ve
improved so far, and how we
can better prioritize where
we want to go from here.”

• For more information visit
https://software.microfocus.com/en-us/products/service-
management-automation-suite/overview
Q&A: Log Questions in the Q&A Panel

Automating Service Management: Decision Making for the Digital Age

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Automating Service Management: Decision Making for the Digital Age

Similar to Automating Service Management: Decision Making for the Digital Age (20)

More from Enterprise Management Associates

More from Enterprise Management Associates (20)

Recently uploaded

Recently uploaded (20)

Automating Service Management: Decision Making for the Digital Age