Benchmarking ITAM: Understand and grow your organization's IT Asset Management Maturity (IAITAM ACE 2012, Palm Springs)
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Jon Hall's presentation from the IAITAM (International Association of IT Asset Managers) Annual Conference and Exhibition in Palm Springs, USA, in 2012
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Benchmarking ITAM: Understand and grow your organization's IT Asset Management Maturity (IAITAM ACE 2012, Palm Springs)
- 1. Benchmarking ITAM: Understand and grow your organization's Asset Management maturity Click to edit Master subtitle style
- 2. The Asset Manager’s Challenge “It’s clear that we are struggling without effective Asset Management, but how do I convince my CIO?” “ITAM isn’t a hot topic for my company”
- 3. The Asset Manager’s Challenge • “How can I build an effective business case for investment in IT Asset Management?” • “How can I identify where to target my ITAM budget for the best possible results?”
- 4. The Asset Manager’s Challenge • “ITIL assessment tells us a lot about our organization’s ITSM maturity, but it doesn’t help us to reflect our achievements in operational IT Asset Management”
- 5. The Current Landscape • Benchmarking is well established in IT... in some areas. • Key frameworks have evolved with limited reference to ITAM. • IT Service Management – ITIL, ISO 20000 • IT Governance – COBIT
- 6. The Current Landscape • Well-established, trusted assessments have supported organizational maturity for many years. e.g: • PinkVerify • COBIT Process Assessment Model
- 7. Why Benchmark? • Understand where you and where you can be. • Build a stronger case for ITAM investment. • Get budget, and spend it more effectively. • Align your business with your peers, to understand how you are performing. • Show your business what you are achieving.
- 8. Getting Started • Define maturity levels. • Define the scope. • Define measurement detail
- 9. Define Maturity Levels • A simple set of measures enabling consistent, summarized ranking across a range of assessments: LEVEL 1: Immature LEVEL 2: Control LEVEL 3: Established LEVEL 4: Optimized
- 10. Define Maturity Levels • Build a clear, generic profile of each maturity level: Little or no effective management, process or automation. Evidence of established processes, automation and management. Partial coverage and value realisation. Some automation. LEVEL 1: Immature LEVEL 2: Control Fully established and comprehensive processes. Centralized data repository. Significant automation. LEVEL 3: Established Best-in class processes, tools and results. Integral part of wider business decision support and strategy. Extensive automation. LEVEL 4: Optimized
- 11. Getting Started • Define maturity levels. • Define the scope. • Define measurement detail
- 12. Define the Scope • Broad categories in which we want to measure maturity: STRUCTURAL Data Processes Tools DELIVERY Value Compliance Environmental
- 13. Define the Scope • Break each category down into a few component parts: Structural – Data: Coverage Proportion of IT Assets under management Single Viewpoint Proportion of IT Assets held in single central repository Accuracy Accuracy of data in the IT Asset repository Asset Characteristics Depth and breadth of Asset and supporting data
- 14. Define the Scope Structural - Processes Asset Processes Maturity Level of IT Asset Management processes Standardization Degree of usage of standard Asset processes Software License Mgt Effectiveness of management of Software Licenses Supplier Management Effectiveness of management of Asset suppliers Structural - Tools Asset Repository Effectiveness of the IT Asset Repository Automation Degree of embedded automation in ITAM processes
- 15. Define the Scope Delivery – Value Asset Re-Use Effectiveness of ITAM in avoiding unnecessary purchases Supplier optimization Benefits realised through effective ITAM supplier mgt ITAM efficiency Cost effectiveness of the ITAM operation Decision support Contribution of ITAM to wider IT planning and strategy Delivery - Compliance Regulatory compliance Compliance against external regulation Software license Compliance against software usage entitlement
- 16. Getting Started • Define maturity levels. • Define the scope. • Define measurement detail
- 17. Define Measurement Detail • Establish clear levels of maturity for each discipline: Little or no effective management of the organization’s IT Assets. Key parts of the IT Asset estate under management, but some significant gaps remaining Majority of the IT Asset estate is under management, with few gaps LEVEL 1: Immature LEVEL 2: Control LEVEL 3: Established DATA (structural): COVERAGE Entire IT Asset estate under full management by the ITAM function. LEVEL 4: Optimized
- 18. Define Measurement Detail DATA (structural): COVERAGE Component Description Level 1 IMMATURE Level 2 CONTROL Level 3 ESTABLISHED Level 4 OPTIMIZED Score Coverage Proportion of IT Assets under management Little or no effective management of the organization’s IT Assets. Key parts of the IT Asset estate under management, but some significant gaps remaining Majority of the IT Asset estate is under management, with few gaps Entire IT Asset estate under full management by the ITAM function. 3 Single Viewpoint Proportion of IT Assets held in single central repository Asset data in disparate systems with little knowledge of definitive source of data on each asset. Recognized single source of Asset data, but not all data effectively consolidated into it. Core data on IT Assets accessed via single, definitive source of data. Comprehensive single source of Asset data, including all data on assets, plus service and contractual dependencies. 2 Etc...
- 19. Leveraging the Results DATA (structural): COVERAGE Component Description Level 1 IMMATURE Level 2 CONTROL Level 3 ESTABLISHED Level 4 OPTIMIZED Score Asset Re-Use Effectiveness of ITAM in avoiding unnecessary purchases Procurement is uncontrolled and reactive: User requests typically result in new purchases Some degree of IT asset inventory, reclamation, and reuse, but not comprehensive Asset requests typically fulfilled from spare/reclaimed inventory whenever possible Highly proactive avoidance of unnecessary purchase, supported by ITAM processes and systems. 1 Monthly IT equipment spend: $100k Percentage of purchases avoidable through re-use: 20% Implementation of effective asset repository and reclamation process could save $240k per annum in unnecessary equipment purchases
- 20. What We Gain... • STRUCTURE – We can plan and measure our efforts to deliver improvements in key areas. We know we are planning effectively. • CONFIDENCE – Our business cases to our CIO are backed up by solid analysis and evidence. It’s a strong case, and we know it. • PROFILE – The ITAM function can show the business the benefits it is delivering. People realise the importance of IT Asset Management.
- 21. Questions and Answers? Jon Hall Lead Product Manager – Asset Management. BMC Software. jon_hall@bmc.com
Editor's Notes
- Last week, in London, I watched a leading Gartner analyst in this sector place IT Asset Management tools firmly in the “Trough of Disillusionment”“Interest wanes as experiments and implementations fail to deliver”Can we have a quick show of hands, please? How many of you are directly involved in IT Asset Management? And how many of you feel that your organization invests all it ought to invest.As a product manager, I’m fortunate enough to be able to speak to scores of IT Asset Managers every year. These are some of the challenges we hear about...
- Why this topic?Conversation with an analyst. We’re going to look at three typical challenges that we hear from Asset Managers all over the world.There’s the visibility challenge. Asset Managers know what they could deliver to their organizations, but often it can be difficult to get it up the agenda.And if it’s going well, it goes well under the radar.Are they really noticing the cheques they’re NOT having to write, because of the great job you’re doing for them?
- Give me a little more money, and I’ll give you really great results.Or... Given what I do have, how am I going to deliver the most valuable outcome?
- And of course, we want to show our audience all the great things that we’ve achieved.I worked for an organisation that was really committed to process improvement around an ITIL framework. We built an IT strategy around it. The strategy delivered really great results, and praise was justifiably lavished on ITIL process teams like the Change Management group and the service desk. But at the same time, a small team built up a really superb asset inventory management and request process, which didn’t even get looked at by the ITIL assessors.It’s no surprise whatsoever that the IT Asset Managers just got on with it.Three challenges then – gaining visibility and support, focusing the efforts, and demonstrating the results. Today, we’re going to look at a framework do achieve all three.
- Over the last few decades, we have seen the emergence of a number of structured standards in the IT industry. A good example is ITILBut whenever we ask an Asset Management professional about ITIL’s coverage of Asset Management, we tend to get the same answer .
- This is a shame, and here’s why: Companies that take notice of strong process frameworks know that they have a clear path to improvement and maturity.
- ... So let’s look at how we get started with a program like this.
- Three phases. Firstly, we need to understand how we’re going to rank the things we’re assessing.
- Four levels or five would typically be recommended. We like four.1: We don’t know what we’re doing.2: We know what we’re doing, and we know there is still stuff we’re NOT doing.3: We know what we’re doing!4: We’re redefining how to do it!
- We want a ranking system that can be applied to any aspect of what we’re assessing. Make it clear and simple.
- Next, we have to frame up what we’re actually measuring...
- We’ve used two categories for this.Structural elements are the things that come together to make up our ITAM function – the tools, the data and the work practices that ensure they hold together.Delivery measures reflect the end results we achieve. So now we need to drill into each area...
- Let’s take the example of data, which is one of our structural measures.
- Walking through our other examples,
- So now we have a set of maturity levels which we’re going to apply to aspects of our IT Asset Management... And a list of things to apply them to. Let’s take a look at the next step;
- For each of our measured disciplines, we can take our general ranking criteria and get a bit more specific.“Little or no effective management” “Evidence of established processes and management.Partial coverage and value realisation”
- ...and now we can build that into a worksheet.We had a discussion at BMC about what to do with our Asset framework, but our view is that the best thing we can do is to share it as widely as possible. Let’s help the ITAM industry while tapping into the expertise of all the great ITAM practitioners out there.So please feel free to download our draft copy, from the BMC communities site. If you google BMC Communities Asset Management, you’ll find it there.
- As for what we do next... Well there are a huge range of possibilities. We’ve identified the weak areas, and we can start to apply this to the circumstances we find in any particular organization. Typical asset scenario – we find that assets are being purchased whenever a request is made. Does anyone recognize that?If we can reuse assets to fulfil requests which account for 20% of our IT equipment budget, then – in this example – we can find almost quarter of a million in savings. By comparing that against the estimated cost of getting to the elevated level, we have can decide – in a structured and clear way – whether it’s worth proceeding.This structure builds out our business case.In fact, we’ve used it to enable our sales force with a really detailed business case builder.