Service Management: Time to Fly or Time to Die?
Live the Business
ITILv3 IT Service Management IT-Business integration
Alignment’ was no longer enough
IT and Service Management need to progress.
serve the business stakeholders
difficult to persuade businesses to support or to fund Service Management
the ITSM community is unable to show the value in a clear way
loud call for a revolution coming from the business
Is it really more “control” that we need, or the ability to think beyond that control
Time to Fly or Time to Die?
The combination of a rapidly changing IT environment and an economic downturn are placing big demands on CIO’s and IT Departments. More than ever before, the ITSM community is under fire to explain its added value. So where do we go from here? This session shows how new ways of connecting with the Business can drive ITSM to its next stage of evolution. Looking at all elements of the organization, from HR and Facility Management to Business Desk, opportunities for integrated quick wins become apparent. This, combined with our existing service experience, can bring immediate value and restore confidence.
But is your organization ready?
Time to Fly
Changing IT environment
IT Departments
ITSM community
Added Value Connecting with the Business
ITSM evolution
Integrated quick wins
Service experience
Immediate value
Restore Confidence
But is your organization ready?
Topics
• Have empathy with IT
• Let’s put on the Business Hat
• Tips to Fly
• Is your organization ready?
IT Departments under fire!
• Consumer IT overtaking Business IT
• Business more IT savvy
• Innovation vs. Cost reduction
• Cloud computing
• Returns from IT investments vs. Technology spending
Service Management under fire!
• IT-centric
• Complex to use
• Limited (re)use of people, process or tools
• Costly and proven value unclear
• ITIL and ITSM community lagging behind
IT Industry … where is it heading?
Distant past
Data & Technology focusedIT and Business seperated
Recent past
Internet & Process focusedIT and Business aligned
Present
Cloud, Social & Mobile focusedIT and Business integrated
What will the IT Department look like in 2020? Reference: http://www.silicon.com/management/cio-insights/2011/06/29/video-the-future-of-the-it-department-39747638/
So what do you think?
1. No IT Department by 2020 ?
2. IT Department driving the Business ?
3. IT Department which is fully integrated with the Business ?
IT Department’s dilemma
Traditional Current trendReduce Costs New capabilitiesEfficiency ResponsivenessImproved security Open architectureIT predictable Business AgilityExecute to plan Strategic focusPush solutions Pull solutions
The Challenge!
Innovate
Partner with the Business
Simple & Agile Processes
IN/Outsourcing
CostBusiness & IT
Integration
Mobility
Social Media
Cloud computing
The Business and IT perspectives
• Competitors at their heels• Need to respond to change daily• Customers want more for less
To succeed:
• Stable • Flexible• Responsive
Business perceptions of IT
• Overly complex• Slow response• Cost focus• Technology focus• Performance• Project failure• Information diarrhea• Data Quality• Poor support• Unclear ROI
Business view of IT
The Business and IT perspectives
• Overload and reactive to crisis• Constant change, shifting priorities• Mixture for new and existing technologies• Constant backlog
To succeed:• Modern & Cost effective• Quality• On-time delivery
IT perceptions of Business
• Unclear requirements• Reactive mode• Changing priorities• No early engagement• Excessive resource pooling• Low value automation• Data quality• Legal compliance• Outsourcing• Budget constraints
IT view of the Business
Business / IT perspectivesService Management
Business view of IT IT view of the Business
• Complex to use• Slow to react• Not a Business fit• No access to tool• Not our Business• Business/IT divide• Communication• Different culture• Expensive
• Last minute• Slow to react• No documentation• Access to tool• Resistance to IT• No time to discuss• Business/IT divide• Communication• Different culture
Tips to Fly
SM Community
Enterprise SM
IT SM
Role of IT as Service Provider
The Role of IT is to support, enable and automate Business activities so that the Enterprise can achieve its Strategy and
Goals
A Service is a means of delivering value to customers by facilitating outcomes
customers want to achieve without the ownership of specific costs and risksITIL©
ITIL is a success, right?
So why does an estimated 70% of organizations fail to achieve the business value they expected?
Key Reasons given
• Lack of Management commitment
• Saying “yes” but meaning “no”
• ITIL is the objective
• No continual improvement process
• Forget the procedures. Let's do as before
• ITIL will never work here
• Unable to specify the value
Source: by Paul Wilkinson (http://bsmreview.com/itilresistance.shtml)
Another reason might be …
The frogs that decided to jump!
Focal Areas for Improvement
Business & IT Integration
Service Management with leadership
IT Culture
IT Financial Management
IT(SM) Marketing
Service Management Leadership
• Enterprise Service Management
IT
Sales/Marketing
BusinessUnit
BusinessUnit
BusinessUnit
Human Resources
Facility Management
Holistic Approach• Vision, Mission, E-Strategy alignment, Scope• Selecting the right approach• Enterprise-wide roles• Value and ROI responsibilities
Finance
Service Management Leadership
• SM Framework ... but with caution
– Keep the stats in mind– ITIL/ ISO 20K certification is not the goal– Select Key processes:
• Get one right in terms of:– User satisfaction– Quality– Value
• Expand scope from there
Service Management Leadership
• It's an Organizational Change
John Kotter ©
IT Financial Management
• IT Financial Management maturity
• Develop a (simple) Cost optimization approach
• Establish a ROI process
ITFM Maturity
Reactive
Control
Profit Center
Business Partner
SustainableImprovement
Level 1 Level 2 Level 3 Level 4 Level 5
AccurateReliable
PredictiveEfficient
Business AlignedTransparent
InsightAccountable
ValueStrategic
IT is unpredictable
IT as a Cost Center
IT as a Profit Center
IT as a Business partner
IT AccountingIT Charging
IT Budgeting
ImprovingValue
IT Cost Optimization engagement
• Budget allocation– Projects vs. Maintenance?
• The key - get people involved– everyone has a Business head!
ID Initiative Owner Effort Risk Cost Savings
1 Server consolidation Jan 5 Hi €300k €500k
2 Runbook automation Piet 1 Lo €100k €70k
3 Terminate application xy Sam 2 Lo €35k €700k
4 Freeze legacy upgrades Inge 3 Lo €0k €35k
5 Software licence audit Ingrid 3 Med €3k €30k
Return on Investment Process
• Not just to get the project approved!• Capture financial and organizational
benefits• Ability to think beyond the horizon• Demo the value of IT as strategic partner• Tool to improve communication between
Business and IT• Focus on business culture and IT value
Design Screen Measure
IT Culture
• Improve the Customer focus
• Climate of accountability using Financials
• Shift focus from Maintenance to Innovation
• Create the right CSI environment
IT Culture and CSI
Plan DO
CheckAct
Plan Do Stop React
The Message:
• It must be supported - top down.• It takes repeated effort – so plan!• Endurance across the organization• Patience• Start small and build gradually
The Theory
The Practice
Deming Lifecycle©
IT(SM) Marketing
• Know what to sell
• Know how to sell
• Report ongoing success!
Business and IT Integration
• Effective Governance
• IT Performance Management
• IT Skill enhancement– Finance– Business Relationship– Business process experts
Based on Balance scorecard from Kaplan & Norton
Before crossing the bridge
• Are existing processes efficient?
• Are they easy to understand and use?
• Can they be replicated and shared?
• Does current technology support the approach?
• Do you have the skills to make it happen?
Tips to Fly
SM Community
Enterprise SM
IT SM
Identify the Value
• Process reuse• Automation of Business specific processes• Shared technology• Improved communication• Merging of Support initiatives• Enterprise dashboarding• Shared resources• Business and IT knowledge exchange
ESM Touch points
IT Department Business
Operational
Tactical
Strategic
Operational• Service Desks• Incident Management• Request Fulfilment
Tactical• Service Level• Supplier• Asset/Contract
Strategic• Business Relationship• Business/IT Strategy• Governance
Gain confidence
• Look for low hanging fruit– Business process automation
• It does not have to be an ITIL one:– Facility Management– HR Procedures– Theft and Security– Transport and Delivery
– Service Desk integration• Enterprise Service Desk• Mutilple Service Desks using same technology• Shared Knowledge Base
Gain momentum
• Establish the ESM Team
• Create a shared vision and execute
• Gain visibility at Board level
• Culture change across the enterprise
Tips to Fly
SM Community
Enterprise
IT Department
How can we improve as One?
• Terminology– ITSM, ITIL (2011), itSMf
• Why not ESM, ESMBoK and ESMforum?
• ITIL – room for improvement– The Books: theory vs. reality– Proven value– Commercial– Few documented successes– Future evolution– Online community
The future is bright
Business
IT
Business
Technology
Information
• Key player between Business and Technology• New skills required to drive it forward• Experts in: Operational models, Process automation and IT Business• Enterprise Service Management will rock!• Integration with Project Management and SDLC
Is your organization ready?
• Board members to think “process”
• Matrix-type management structure
• IT becoming more business centric
• Enterprise Service Management. The way to go!
Presenter
• John M Walsh
• Enterprise Architect & IT Adviser
• Contact:www.johnmwalsh.com
One more thing ...
Remember the frogs
Let's not just decide.
Let's jump into the Business pond and …
Live the Business!Thanks for listening