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.

1. Reboot IT Service Management
Eveline Oehrlich, Principal Analyst
May 18, 2012
ay 8, 0
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2009

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3. The Bad News
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2009

4. Back into a
budgetary
deepfreeze . . .
. . . Priceless!
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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%
purchases
5 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

6. The Good News
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2009

7. Business Demands IT Help Even When Revenues Fall
June 2006 B t P ti
J 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. Three Sets Of Forces Shaping Business
Demand
2010 2012 2015 Beyond
8 © 2010 Forrester Research, Inc. Reproduction Prohibited

9. Business-ready, self-service technologies are on the rise
egree of business change
10% 33%
10%-33%
$28B
b
$258B
14M
De
80M
2010 2012 2015 Beyond
9 © 2010 Forrester Research, Inc. Reproduction Prohibited

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
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11. The business environment will be radically more
complex
usiness change
c
1B
gree of bu
$28T
Deg
2010 2012 2015 Beyond
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12. The Challenges
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2009

13. The result: An increasing IT capability gap
2010 2015
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14. 2012 Top Five IT Management Priorities
October 2011 “2012 IT Budget Planning Guide For CIOs”
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15. The MOOSE
M = Maintaining and
O = Ongoing
O = Operations
S = Systems and
E = Equipment
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16. 2011 IT budgets and the MOOSE
October 7, 2010 “2011 IT Budget Planning Guide For CIOs” Forrester report
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17. IT Reputation ?
17 © 2010 Forrester Research, Inc. Reproduction Prohibited

18. Only A Minority Perceive IT As Tightly Aligned With The
Business
December 2010 “Beyond Alignment: BT Strategic Planning”
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19. We could …
Source: Rudder Finn blog
http://www.ruderfinn.co.uk/blogs/dotcom/files/2009/06/enviromental-head-in-the-sand.jpg
19 © 2011 Forrester Research, Inc. Reproduction Prohibited

20. Reboot IT Service Management
20 © 2010 Forrester Research, Inc. Reproduction Prohibited
2009

21. Efficiency = People
+
Technology
21 Entire contents © 2010 Forrester Research,Reproduction Prohibited
21 © 2011 Forrester Research, Inc. Inc. All rights reserved.
+ Process

22. Which of the following initiatives are likely to be your
IT organization’s top IT management priorities over
the next 12 months?
Don't 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 2011
22 © 2012 Forrester Research, Inc. Reproduction Prohibited

23. Strategy
gy People
p Process Technology
gy
Service Management & Automation
23 © 2011 Forrester Research, Inc. Reproduction Prohibited

24. Got Strategy?
24 © 2011 Forrester Research, Inc. Reproduction Prohibited

25. The IT-To-BT Complexity Evolution
January 2012 “Develop An IT Service Management And Automation Strategic Plan”
© 2012, Forrester Research, Inc. Reproduction Prohibited

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 steps
26 © 2011 Forrester Research, Inc. Reproduction Prohibited

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
proliferation
27 © 2011 Forrester Research, Inc. Reproduction Prohibited

28. The Four Perspectives Of The IT Infrastructure And Operations Balanced Scorecard
January 2012 “Develop An IT Service Management And Automation Strategic Plan”
© 2012, Forrester Research, Inc. Reproduction Prohibited

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 Study
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30. Do you have a written down IT Service Management Strategy?
Does your team have access to it?
Do you understand your benefits?
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31. The change is lead by your team!
31 © 2010 Forrester Research, Inc. Reproduction Prohibited
2009

32. People
The I&O Organization Is Splitting Into The “I” Group And The “O” Group
I O
February 2012 “Refine Priorities Now For IT Service Management And Automation”
© 2012, Forrester Research, Inc. Reproduction Prohibited

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. Hot new roles emerge People
 Business relationship manager
 Automation architect
 Service designer
 Service manager
g
 Vendor manager
 Process owner
34 © 2011 Forrester Research, Inc. Reproduction Prohibited

35. The importance of processes
..in the age of the customer
35 © 2011 Forrester Research, Inc. Reproduction Prohibited

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 flexibility
36 © 2012 Forrester Research, Inc. Reproduction Prohibited

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 flexibility
37 © 2012 Forrester Research, Inc. Reproduction Prohibited

38. Focus on service support
- Determine your service levels
- Understand the cost of service support
38 © 2012 Forrester Research, Inc. Reproduction Prohibited

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 flexibility
39 © 2012 Forrester Research, Inc. Reproduction Prohibited

40. Customer Experience?
40 © 2012 Forrester Research, Inc. Reproduction Prohibited

41. Focus on customer experience
- Implement a ser ice catalog
service
- Introduce self service initiatives
41 © 2011 Forrester Research, Inc. Reproduction Prohibited

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 flexibility
42 © 2012 Forrester Research, Inc. Reproduction Prohibited

43. At home
At client sites
Can you support mobility?
y pp y
At satellite offices In transit
43 © 2012 Forrester Research, Inc. Reproduction Prohibited

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 flexibility
44 © 2012 Forrester Research, Inc. Reproduction Prohibited

45. Focus on usability
- Are your easy to do business with?
- How usable are your tools?
45 © 2011 Forrester Research, Inc. Reproduction Prohibited

46. How can you be reached?
46 © 2012 Forrester Research, Inc. Reproduction Prohibited

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 flexibility
47 © 2012 Forrester Research, Inc. Reproduction Prohibited

48. Have you felt like this?
48 © 2012 Forrester Research, Inc. Reproduction Prohibited

49. Two sides of the conversation
49 © 2012 Forrester Research, Inc. Reproduction Prohibited

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 processes
50 © 2011 Forrester Research, Inc. Reproduction Prohibited

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 flexibility
51 © 2012 Forrester Research, Inc. Reproduction Prohibited

52. Efficiency comes through good processes
February 2012 “TechRadar™ For I&O Professionals: IT Service Management Processes, Q1 2012”
© 2012, Forrester Research, Inc. Reproduction Prohibited

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% 4.1
75% 4.0 4.0
3.9
3.8
34%
63% 3.5 3.5 Don't know
5
50% 28% 35% 3.0 4
35% 34% 3
38% 40% 2.5 2
25%
1
25% 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. 2011 Forrester/itSMF USA ITSM Study
How would you assess your organization's 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 Don't know
3.3
36% 5
50% 3.0 4
33% 28
2.8
3
38% 32% 2.5 2.5
2.4 2
2.2
30% 1
25% 2.0
38% 28% Average
13% 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. Process allows you to automate!
The Forrester Automation Wheel Helps You Define Your Automation Tool Portfolio
February 2012 “Refine Priorities Now For IT Service Management And Automation”
© 2012, Forrester Research, Inc. Reproduction Prohibited

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 flexibility
56 © 2012 Forrester Research, Inc. Reproduction Prohibited

57. Collaboration is a critical success factor
Areas 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. 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 flexibility
58 © 2012 Forrester Research, Inc. Reproduction Prohibited

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 2011
59 © 2012 Forrester Research, Inc. Reproduction Prohibited

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 2011
60 © 2012 Forrester Research, Inc. Reproduction Prohibited

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. Questions
62 © 2011 Forrester Research, Inc. Reproduction Prohibited

63. Thank you
y
Eveline Oehrlich (Hubbert)
+1 617.613.8803
@
eoehrlich@forrester.com
www.forrester.com
© 2009 Forrester Research, Inc. Reproduction Prohibited