iaitam 2012- improve uptake of core technology
DESCRIPTION
Signe Marie Stenseth presented this slideshow at the International Association of IT Asset Managers conference and Exhibition on October 19th, 2012.TRANSCRIPT
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Cost Optimization & Technology Uptake
– Help business leaders produce more value for your company
By: Signe Marie Stenseth
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Meter Usage - Optimize Value!
• Independent software vendor
• Meters usage of software applications and licenses, with globally deployed, dynamic use models including concurrent licensing and pay-per-use agreements.
• Meters hardware usage to support optimization and usage-based chargeback models.
3.
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Global Hub for Collection & Distribution of Usage Data
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Key Business Drivers Financial
• Cut Costs • Improve Cost Awareness • Create Scalability and Simplicity
Risk• Document Compliance
Productivity• Improve Asset Efficiency/User Productivity• Document Business Value of IT
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Top priority: Improving IT Efficiency“Which of the following initiatives are likely to be your IT organization’s top IT management priorities over
the next 12 months?”
Improve IT performance by adopting processes like CMM or ITIL
Market the IT department within the firm
Improve the sustainability and energy efficiency of IT opera-tions and infrastructure
Expand eBusiness or Internet initiatives
Define strategy for risk and compliance
Improve the measurement of IT's impact on business per-formance
Increase the scope of IT's centralized or shared services
Increase IT capacity/resources to drive business innovations
Improve our customer management capabilities
Improve or streamline business processes
Improve the efficiency of IT
36%
38%
40%
38%
47%
47%
47%
48%
49%
48%
50%
13%
13%
15%
23%
21%
22%
23%
27%
27%
29%
31%
High priority Critical priority
According to an independent survey of over 500 IT managers and CIOs in the U.K. (IAITAM & FASTIiS, 2011)
92% of managers had unused shelfware.77% of organizations have never reclaimedany unused software licenses.
“Proactive IT Asset Management can recover over 25% of the existing IT budget.” -- IAITAM “Executive Briefing Overview”
Market Research Facts – ITAM/SAM Waste
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Slice and Dice – Prepare for Multiple Views
Multiple views provide critical insights:
• By business unit/ location
• By application/ application suites
• By users/User-group
• By fixed vs. variable costs
• By vendor
• By project
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Software Usage Support Cost Optimization
IT Procurement: • Sizing & best terms
Cost Savings within IT• Identify opportunities to reduce costs within your current IT
Budget
Joint Business and IT Cost Savings• Implement cost-saving technologies that also help the business
be more productive
Enable Innovation & Business Restructuring• Get the right mix of software to support the business• Implement process improvements/technology uptake 9
What customers say…
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“$ 1.35 Million in documented first year savings.”
“47% annual savings on our engineering applications.”
“10 % cost reduction on overall software licenses.”
Meter Usage During Technology Uptake
• Monitor programs effectiveness.
• Measure key performance indicators (KPIs).
• Reduce the loss of productivity during the switch.
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Issues Considered Adopting New Technology:
• Data Conversion• License Costs• Features/Functionality• Usability• Required Infrastructure
Change• Support Costs
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• Building a user community with application champions to promote and mentor others.
• Minimizing productivity loss.
• Improving business performance through the effective use of the new core business technology.
Holistic Implementation Program Focus:
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• Deployment - Require the target user base to use the new technology by a set date.
• Adoption - Each user or organizational unit has the option to use the new technology or not.
Strategies for Holistic Implementation Programs:
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License User Metrics
• Needed to support Key Performance Indicators (KPIs), measuring the success of both program performance and business performance throughout implementation.
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• Total Unique Users – Named Users
• Concurrent License Usage
• Trend License Usage per Application (target growth rate
per product, feature etc.)
• Compare Active vs. Inactive Usage per Application
Sample Usage Metrics to Support KPI
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Support the Different Stages
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Monitor License Usage to:
• Identify Power Users
• Build a strong user community
• Identify users that are reverting to the old system to get their job done
• Reduce productivity loss during the switch.
Identify Power Users
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Identify Power Users – Customer Case
Document Weekly Progress
Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11
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40
60
80
100
New Version Usage By Region
WestEastSouthNorthCorporateCombined
Max
. Lie
nses
In U
se
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Conversion of Old-Version Users to New-Version Users
Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 20110%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Percentage of Total Usage Over Time - Old Versus New
New VersionOld Version
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0.00 h
200.00 h
400.00 h
600.00 h
800.00 h
1,000.00 h
1,200.00 h
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Usage Duration Versus Used Licenses - New Version
Elapsed TimeCumulative Percentage
Total Usage over Time for each License
Create Real-time Dashboard
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Improve Decisions w/ Objective Usage Data
Financial/ Cost Optimization• Reduce spending on underutilized SW and HW• Standardize versions and tools• Improve technology acquisition• Lower the costs of reporting and administration
Risk/ Compliance• Mitigate license compliance risk
Productivity/User Efficiency • Identify power users and product champions to support technology uptake
programs• Uncover training needs• More effective communication between and within units
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Burlington Resources – Business Goals• Improve team synergies and global sharing of information• Shortened project cycle time • Drill fewer dry holes • Find more reserves per well drilled and find more total reserves• Preserve analysis results• Continue reducing annual software costs
Summary: Improve the quality of the work being done.
Operations management “Raised the Bar”
Training
Standards
Independent Technology Enhancement Team budget
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Burlington Resources – Cost Optimization
.
Cost of Savings over $5 Million
Y0 Actual Y1 Actual Y2 Actual Y3 Actual
Maintenance New Software
Usage metering tool used: OpeniT
-36% software maintenance cost (Year 1)
-19% software maintenance cost (Year 2)
-3% software maintenance cost (Year 3)
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Business Value to Burlington Resources
Computed June 2005
0
2 0 ,0 0 0 ,0 0 0
4 0 ,0 0 0 ,0 0 0
6 0 ,0 0 0 ,0 0 0
8 0 ,0 0 0 ,0 0 0
1 0 0 ,0 0 0 ,0 0 0
1 2 0 ,0 0 0 ,0 0 0
Business Case 2002 Actual 2003 Actual 2004 Actual
Add reserves
Productivity
Finding costs
%dry holes
SW savings
+ savings in management time
+ opportunities for better long-range planning
+ opportunity to do even better
92%
255% 253%
Goal: 10X SW savings
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Q/A
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Thank You!Open iT, Inc.
Two Park Ten Place16300 Katy FreewayHouston TX 77094+1 281 599 3400
Karoline Kristensens v. 5N-0661 Oslo, Norway+47 22 20 40 50
Quellenstr. 2071229 Stuttgart, Germany+49 7152 3070900
PO Box 265 ForusN-4066 Stavanger, Norway +47 51 64 09 80
3rd Floor Insular Life Bldg.M.L Tagarao cor Granja St.Lucena City 4301Philippines +63 42 710 8566
www.openit.com
If you can measure IT, you can optimize IT!
Email me at:[email protected] Marie Stenseth
OpeniT solves IT resource monitoring, reporting and optimization challenges to reduce the cost and complexity of managing assets in distributed and complex environments.
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About the Speaker
• Signe Marie Stenseth has worked for OpeniT since early 2000, first for two years in Europe, then in Houston, TX. Before starting full time for the company, she was Board member for OpeniT. Signe also has many years of experience working as an advisor for the Norwegian Government, EU Commission in Brussels, and Statoil.
• Signe holds an MBA from the Norwegian School of Economics and Business Administration, with additional studies in economics from the University of Mannheim in Germany, and the College of Europe in Belgium.
• Contact info: Signe Marie Stenseth, OpeniT, Inc., Two Park Ten Place, 16300 Katy Freeway, Houston, TX 77094. Email: [email protected].
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