Integrated Service Management
Managing the World’s Infrastructure in a Smarter Planet
Technology is Driving Change and Creating Opportunity

 Transistors per                                                                             Global cellular service:2
 human:1                                                                             2007: 3.3 billion connections
 2001: 60 million                                                            64% of users are in emerging markets
 2010: One billion                                                                2010 (Q1): 4 billion connections


                                                                                                    Smart Sensors:5
                      RFID Tags:³
                           Tags:³                                                                   “…nearly
                                                                                                    “…nearly half of all sensors used
                      Nearly 4 trillion RFID events                                                  for critical measurements across
                      transmitted each day                                                           transportation, facilities & production
                                                                                                     equipment are now smart sensors.”


                             Cyber Attacks:4
                             2007: 37k on US government / private sector
                             158% increase in cyber attacks since 2006


Sources: 1) IBM Global Technology Outlook 2) GSM Association 3) Nilson Report 2007 4) US Department of Homeland Security 5) ARC Advisory Group
But Systems and Infrastructure are Reaching a Breaking
Point

       Inefficient Systems               Outdated Processes
     70 cents per dollar          $40B annual loss
     spent on maintenance         due to supply chain inefficiencies
                                  $11.5 billion worth of produce is
     45% traffic circling
                                  wasted in India because of outdated
     looking for parking in NYC
                                  post-harvest infrastructure

                        Wasted Resources
      85% idle                    2.9 billion gallons
      computing capacity          of gasoline wasted annually
                                  due to congested roadways
Yet the approach for managing this complexity
remains the same




 Silo-based monitoring
 Excel-based asset tracking process
 Security= Anti-virus+Firewall
 Tape-based back-up
The need for efficiency and superior service from IT
Operations is more critical then ever.

               How can I improve the            How can I improve
               customers' experience            the productivity of IT
               with our business                Operations staff?
               services?




            How do I manage a
            virtualized datacenter
                                     How can I simplify the number
                                     of tools used to manage IT
                                     Operations?
INTEGRATED SERVICE MANAGEMENT




INSTRUMENTED                                                    VISIBILITY
                  Integrated Service Management enables
                 delivery of innovative services by providing
                   Visibility. Control. Automation.TM across
INTERCONNECTED               business infrastructure.            CONTROL




 INTELLIGENT                                                    AUTOMATION
Service architectures tailored
by industry
Service lifecycle management
Service dashboards
Unified management of service
requests and incidents
Asset management
Automated management
Integrated Service Management- Across Industries


                                                                                                      IT/ITES
                                                                                     Transportation
                                                                        Healthcare
                                                   Telecommunications
                                            Life Science
                                     BFSI
                         Aerospace
         Manufacturing
Government
9

        How does Tivoli relate to Business Service
                                                                                                         S e r v ic e M a n a g e m e n t P l a t f o r m



                      Experience                                                                                                                                               Dependencies
              Real-time Transaction
         Performance, Service Status, and
                                                                              2                                                                                       Relationship and Discovery Data –
                                                                                                                                                                      CCMDB, Asset, Inventory, Network
                                                                                                                                                                                 Mgmt, BPEL

                                                                                                                                                                3
         End-User & Service Experience -




                                    1                                                                                        IBM Service
            Monitor                                                                                                          Management                                         Business
                                                                                                                                                                                 Metrics
                                                                                                                                                                    4
          Any Event or Fault from
               Any Source
                                                                                                                                                                             Business Support Data –
                                                                                                                                                                             Incidents, Call Records,

                                       6                    E xe
                                                                   c ut
                                                                          e   Mo
                                                                                   ni
                                                                                        to r
                                                                                                                                                                               Billing Data, Process
                                                                                                                                                                             dependencies, Revenue,
                                                                                                    e
                                                    Pl an




                                                                                                                                                                              and Risk Analysis data
                                                                                                   lyz
                                                                                               Ana




                                                                                                                                       5
                                                                                          a




                                                 Actions                                                                                                    Views
         What’s happening                    Impact Analysis, Task
                                                                                                                                                Business Views: SLM/SLA,
                                                                                                                                                Rev$$, Health, Customer        What actions do we
                                              Automation, Config,
              with the                      Provisioning, Activation,
                                                                                                                                                Operational Views: RCA,
                                                                                                                                                                               take to correct the
                                                                                                                                                Compliance, Impact
          infrastructure?                      and Orchestration                                                                                Analysis, Incident Mgmt.           problems?
    9
Integrated Service Management Solves Customer Problems
Only IBM delivers quantifiable benefits whatever the challenge

                                                                 Vale, World's 2nd Largest Mining
                Harley Davidson                                  Company
                 Globally integrated its IT Management           Leveraging IBM to achieve Pro-active
                Operation                                        maintenance for 1.2 Million assets at 52
                                                                 sites
                 Recorded savings of $25 million over 5
                years                                             Support real-time data collection from
                                                                 legacy to RFID interfaces
                 201% Return on Investment

                                                                 Bharti Airtel
                Swiss Re, leading global re-insurer
                Leveraged IBM Integrated Service                  Secured Sign-on Framework
                Management to                                     20 ID’s per user reduced to one single-
                 Improved scalability, flexibility by           sign-on
                consolidating 40 change processes into 1          User account provisioning time reduced
                 Support regulatory compliance                  from 2 days to < 1 hour


                                                                 IBM Toronto Labs, through
                According to IDC, client using IBM's             automation
                network management tools
                                                                  Reduced provisioning processes from
                Realize annual benefit of $24 million per       25 to 5
                year
                                                                 Freed-up 7 person-years of developers'
                Reduced capital expenditures by 1.3             time
                million annually                                 Recorded 305% return on its initial
                                                                 investment
Reducing expenses and
IBM’s internal adoption of Cloud
                                                                              driving innovation at IBM
 Without cloud                         With cloud
 $3.4M annual expense               $1.03M annual expense                      Business challenge:
                                          Liberated funding
                                          for transformation                    Reduce operational expenses and
         New
     Development                         investment or direct                    capital investment
                                                 saving
                                                                                Deliver end-user services with
                                         New development
                                          (for business-
                                                                                 elastic scaling
  Software and other
        costs                                enabling             Strategic
                                          capabilities)12
                                                                  change
                                          Deployment (1-time)     capacity     Smarter Software Helped:
      Labor costs
     (operations &                      Software and other                      Reduce labor expenses by 81%
     maintenance)                             costs
                                                                  Annual        Capital depreciation savings of 92%
                                              Labor cost
   Depreciation (and
                                          ( - 80.7 percent)       cost of       On-demand self-service
                                                                  operation
     amortization)                          Depreciation          (- 79.0       Ubiquitous network access
                                          ( - 91.6 percent)
                                                                  percent)      Location independent resource
                                                                                 pooling
  Note: 5-year depreciation period with 5 percent discount rate
                                                                                Pay per use pricing model
Reducing Software License
Cost at KPIT Cummins
 Business Challenges
  Reduce software license and IT costs
  Inability to verify license compliance
  Managing unnecessary licenses in a resource
   constrained environment.

 Smarter Software Helped
  Reduce Software Cost & Mitigate Risk
     Pinpoint under utilized software
     Avoid over purchasing
     Mitigate risk and fines due to failed license
      compliance and audits
  Increased negotiating power with software
   vendors
  Alignment of software usage with end-user
   needs
Aligning Business and IT to
Enhance Business Efficiency at
BPCL
Challenges
• Problem resolution becoming time-consuming; making C-
  Sat scores dip
• High costs associated with increased skill requirements
  and maintaining quality services
• High cost per incident with absence of escalation &
  notification matrix

Smart Moves
• Align IT operations with line of business through service
  level management with Tivoli Service Management
  Solutions
• Streamline incident and problem management processes
  for more rapid service restoration
• Optimize productivity of service desk personnel and
  increase end-user satisfaction
• Associate cost to IT service offerings and manage
  consumption
Reduce impact of data growth
with continual improvements in
scalability at IGL
Business Challenges:
• Ever-increasing data growth
• Need for 24X7 availability of mission-critical applications
• Manual and adhoc data-back-up process

Smart Moves:
Leveraged Tivoli Storage Manager to:
• Deliver cost-effective archival storage solutions that control
  data growth, enable scale-out, and provide long-term
  preservation
• Reduce infrastructure costs; management / admin costs and
  operating costs
• Improve Service Levels
• Reduce the amount of data at risk
• Improve data/application availability
• Recover faster from data disasters
Thank You
Gaurav Agarwal,
Tivoli Business Unit Executive
gagarwal@in.ibm.com

Gaurav Ism Pulse 2010

  • 1.
    Integrated Service Management Managingthe World’s Infrastructure in a Smarter Planet
  • 2.
    Technology is DrivingChange and Creating Opportunity Transistors per Global cellular service:2 human:1 2007: 3.3 billion connections 2001: 60 million 64% of users are in emerging markets 2010: One billion 2010 (Q1): 4 billion connections Smart Sensors:5 RFID Tags:³ Tags:³ “…nearly “…nearly half of all sensors used Nearly 4 trillion RFID events for critical measurements across transmitted each day transportation, facilities & production equipment are now smart sensors.” Cyber Attacks:4 2007: 37k on US government / private sector 158% increase in cyber attacks since 2006 Sources: 1) IBM Global Technology Outlook 2) GSM Association 3) Nilson Report 2007 4) US Department of Homeland Security 5) ARC Advisory Group
  • 3.
    But Systems andInfrastructure are Reaching a Breaking Point Inefficient Systems Outdated Processes 70 cents per dollar $40B annual loss spent on maintenance due to supply chain inefficiencies $11.5 billion worth of produce is 45% traffic circling wasted in India because of outdated looking for parking in NYC post-harvest infrastructure Wasted Resources 85% idle 2.9 billion gallons computing capacity of gasoline wasted annually due to congested roadways
  • 4.
    Yet the approachfor managing this complexity remains the same  Silo-based monitoring  Excel-based asset tracking process  Security= Anti-virus+Firewall  Tape-based back-up
  • 5.
    The need forefficiency and superior service from IT Operations is more critical then ever. How can I improve the How can I improve customers' experience the productivity of IT with our business Operations staff? services? How do I manage a virtualized datacenter How can I simplify the number of tools used to manage IT Operations?
  • 6.
    INTEGRATED SERVICE MANAGEMENT INSTRUMENTED VISIBILITY Integrated Service Management enables delivery of innovative services by providing Visibility. Control. Automation.TM across INTERCONNECTED business infrastructure. CONTROL INTELLIGENT AUTOMATION
  • 7.
    Service architectures tailored byindustry Service lifecycle management Service dashboards Unified management of service requests and incidents Asset management Automated management
  • 8.
    Integrated Service Management-Across Industries IT/ITES Transportation Healthcare Telecommunications Life Science BFSI Aerospace Manufacturing Government
  • 9.
    9 How does Tivoli relate to Business Service S e r v ic e M a n a g e m e n t P l a t f o r m Experience Dependencies Real-time Transaction Performance, Service Status, and 2 Relationship and Discovery Data – CCMDB, Asset, Inventory, Network Mgmt, BPEL 3 End-User & Service Experience - 1 IBM Service Monitor Management Business Metrics 4 Any Event or Fault from Any Source Business Support Data – Incidents, Call Records, 6 E xe c ut e Mo ni to r Billing Data, Process dependencies, Revenue, e Pl an and Risk Analysis data lyz Ana 5 a Actions Views What’s happening Impact Analysis, Task Business Views: SLM/SLA, Rev$$, Health, Customer What actions do we Automation, Config, with the Provisioning, Activation, Operational Views: RCA, take to correct the Compliance, Impact infrastructure? and Orchestration Analysis, Incident Mgmt. problems? 9
  • 10.
    Integrated Service ManagementSolves Customer Problems Only IBM delivers quantifiable benefits whatever the challenge Vale, World's 2nd Largest Mining Harley Davidson Company  Globally integrated its IT Management  Leveraging IBM to achieve Pro-active Operation maintenance for 1.2 Million assets at 52 sites  Recorded savings of $25 million over 5 years  Support real-time data collection from legacy to RFID interfaces  201% Return on Investment Bharti Airtel Swiss Re, leading global re-insurer Leveraged IBM Integrated Service  Secured Sign-on Framework Management to  20 ID’s per user reduced to one single-  Improved scalability, flexibility by sign-on consolidating 40 change processes into 1  User account provisioning time reduced  Support regulatory compliance from 2 days to < 1 hour IBM Toronto Labs, through According to IDC, client using IBM's automation network management tools  Reduced provisioning processes from Realize annual benefit of $24 million per 25 to 5 year Freed-up 7 person-years of developers' Reduced capital expenditures by 1.3 time million annually Recorded 305% return on its initial investment
  • 11.
    Reducing expenses and IBM’sinternal adoption of Cloud driving innovation at IBM Without cloud With cloud $3.4M annual expense $1.03M annual expense Business challenge: Liberated funding for transformation  Reduce operational expenses and New Development investment or direct capital investment saving  Deliver end-user services with New development (for business- elastic scaling Software and other costs enabling Strategic capabilities)12 change Deployment (1-time) capacity Smarter Software Helped: Labor costs (operations & Software and other  Reduce labor expenses by 81% maintenance) costs Annual  Capital depreciation savings of 92% Labor cost Depreciation (and ( - 80.7 percent) cost of  On-demand self-service operation amortization) Depreciation (- 79.0  Ubiquitous network access ( - 91.6 percent) percent)  Location independent resource pooling Note: 5-year depreciation period with 5 percent discount rate  Pay per use pricing model
  • 12.
    Reducing Software License Costat KPIT Cummins Business Challenges  Reduce software license and IT costs  Inability to verify license compliance  Managing unnecessary licenses in a resource constrained environment. Smarter Software Helped  Reduce Software Cost & Mitigate Risk  Pinpoint under utilized software  Avoid over purchasing  Mitigate risk and fines due to failed license compliance and audits  Increased negotiating power with software vendors  Alignment of software usage with end-user needs
  • 13.
    Aligning Business andIT to Enhance Business Efficiency at BPCL Challenges • Problem resolution becoming time-consuming; making C- Sat scores dip • High costs associated with increased skill requirements and maintaining quality services • High cost per incident with absence of escalation & notification matrix Smart Moves • Align IT operations with line of business through service level management with Tivoli Service Management Solutions • Streamline incident and problem management processes for more rapid service restoration • Optimize productivity of service desk personnel and increase end-user satisfaction • Associate cost to IT service offerings and manage consumption
  • 14.
    Reduce impact ofdata growth with continual improvements in scalability at IGL Business Challenges: • Ever-increasing data growth • Need for 24X7 availability of mission-critical applications • Manual and adhoc data-back-up process Smart Moves: Leveraged Tivoli Storage Manager to: • Deliver cost-effective archival storage solutions that control data growth, enable scale-out, and provide long-term preservation • Reduce infrastructure costs; management / admin costs and operating costs • Improve Service Levels • Reduce the amount of data at risk • Improve data/application availability • Recover faster from data disasters
  • 16.
    Thank You Gaurav Agarwal, TivoliBusiness Unit Executive gagarwal@in.ibm.com