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Getting to Business Value: A Review of BSM Maturity Survey Results by BSMReview.comIntroduction to NetIQ\'s Business Service Management Solution
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Getting to Business Value through IT
Findings of 2011 BSM Maturity Benchmark Survey
About BSMReview – Survey Source
Online Community - BSM Best Practices
Thought Leading Content
Vendor Independent Community
Focus On Next Steps For Successful BSM
Features Cadre Of Experts
Cadre of Contributing ExpertsBill Keyworth (Gartner VP) Peter Armstrong (former BMC)Jeroen Bronkhorst (HP) Matthew Burrows (itSMF UK)Peter Doherty (CA)Doug McClure (IBM)Ariel Gordon (Neebula)
BSM Experts
Troy DuMoulin (Pink Elephant)Peter J. McGarahan (ITSM guru)Robert Stroud (CA ITSM evangelist)Sharon Taylor (former chief architect of ITIL)Ken Turbitt (ITIL v3 guru/HP)Paul Wilkinson (ITIL Author/Consultant)
ITIL Experts
John Seely Brown (former Chief Scientist PARC)John Hagel III (Deloitte Center for the Edge)
Technical/Business Luminaries
Tom Bishop (former CTO BMC)Malcolm Fry (IT industry luminary) Israel Gat (Agile industry expert)Bob Multhaup (IT Business Modeling)Rich Ptak (IT Industry Research)Annie Shum, PHD (Performance)
Enterprise IT Experts
Titles: CIO, Vice President, Director, Manager, Staff
Roles: Information Technology Strategy & ArchitectureOperationsStrategic PlanningGlobal OperationsManaged ServicesTechnical SupportService and SupportSystems & Performance ManagementApplication Performance Network and System SecurityGovernance and Compliance, …
34,254 subscribersRepresenting 9200+ companies
Company Size (employees)• 43% (5000+)• 18% (1000 – 4999)• 23% (99 -- 999) • 16% (under 99)
Website Demographics
Survey Demographics
47%
20%
17% 16%
Company Size
1 to 9999 to 9991000 - 49995000+
23%
16%
43%
18%
Retai
l
Ener
gy
Tele
com
Man
ufac
turin
g
Health
Car
e
Gov/E
duca
tion
Fina
ncia
l
Cross
Indu
stry
Tech
nolo
gy0%
5%
10%
15%
20%
25%
Industry Sector
Resp
on
se
BSM Maturity Model
Level IT Maturity
Business Maturity Business Benefits
BusinessMetric
5 Pervasive Market Leadership
Sustained Competitive Advantage
Market Expansion
4 Optimized Competitive Differentiation
Product & Service Leadership
Market Penetration
3 Aligned Business Value Customer Acquisition & Retention
Profit Maximization
2 Predictive Secure & Reliable Operations
Cost Effective Operations
Revenue Focuses
1 Essential Business Fundamentals
Technology Supporting Business
Minimize IT Investment
Getting to Business Value …thru IT?
Bu
sin
ess M
atu
rity
IT Operational Maturity
Utility Strategic
Leader
Sust
ain
Desired State
BS
MR
evie
w I
nsig
ht
Getting to Business Value …thru IT?
Bu
sin
ess M
atu
rity
IT Operational Maturity
AlignedStrategicInnovative
AlignedUtilityCost Efficient
Not AlignedStrategic ITImmature Business
Utility Strategic
Leader
Sust
ain
Not AlignedStrategic BusinessImmature IT
Desired State
BS
MR
evie
w I
nsig
ht
Getting to Business Value …thru IT?
Bu
sin
ess M
atu
rity
IT Operational Maturity
Utility Strategic
Leader
Sust
ain
Desired State
Current Reality
BS
MR
evie
w I
nsig
ht
Not AlignedStrategic BusinessImmature IT
AlignedUtilityCost Efficient
1
Converge on the definition of BSM Assess both IT and Business maturity
BSM Maturity Assessment
Increasing consensus that business needs drive definition of BSM
BSM Definition Response
BSM is measurable activity for aligning IT with business objectives 34.9%
BSM is a business-oriented approach to IT operations and deliverables 31.8%
BSM is a (mature) process oriented approach to IT service management 17.1%
BSM focuses on "running IT as a business entity" 11.6%
BSM is managing and analyzing application performance 3.9%
Resp
on
se
Conflicting Views of Technology Contribution
Response Options(Strongly agree and agree)
Business View IT View
We use technology to create product and service leadership in our industry
84% 55%
We leverage technology to focus on customer acquisition and retention 84% 75%
We use technology to ensure cost effective operations 91% 80%
Our technology provides us with a unique, sustained competitive advantage
83% 30%
We limit the use of technology to basic business functions 42% 67%
Resp
on
se
2
How does your company recognize the benefit from technology?
“ … is a key component to delivering quality with speed to market”
“… allows us to provide exceptional patient care”
“… enables top line revenue growth and margin improvement”
“… improved finding of Oil & Gas and the development of these assets”
“… reduced operational costs & increased customer satisfaction”
“We are a technology center …technology is our livelihood”
How IT Investment Decisions are Made
Best Case
“IT investments are determined by added value, effectiveness and efficiency of the business”
Typical Case
“Investments build a global infrastructure and product set that should improve efficiency and drive business”
Worst Case
“IT investments are always reactionary”
Resp
on
se
How business and IT work toward an alignment Perceptions of IT based on role and title
Business/IT Culture
Evidence of Collaboration is Minimal
Resp
on
se
Business does not trust IT and has minimum confidence in IT meeting business needs
Business feels IT is responsive to reasonable IT requests, not expecting IT miracles
IT is recognized for contributing to reduction in production costs of existing products & services
IT has a history of success in automating business process improvements
Business effectively leverages IT for core operating processes (supply chain, CRM, product innovation...)
IT is trusted to do the "right" thing in leveraging technology for business benefits
19%
30%
33%
26%
30%
26%
30%
52%
34%
25%
33%
25%
Biz View IT View
3
“IT has a history of not delivering on time or budget & when on-time functionality doesn’t
work”
“The business submits work requests, IT determines required and available resources,
and business prioritizes projects”
“We are a large organization, so trust is higher in some areas than others.”
“Executive level is NOT yet supportive of a single approach or point of view”
“Business is beginning to participate in governance activities to prioritize IT projects”
How do business and IT interact/cooperate in your company?
Resp
on
se
Technology Understanding is a GAPR
esp
on
se
Has little to no technical strategy (services are managed to be "good enough")
Uses only proven, safe technologies that have been validated and tested elsewhere
Provides real-time visibility into business impact of technology issues
Is an early adopter of leading edge technologies
Is core to strategic business execution
48%
66%
48%
36%
70%
50%
75%
96%
86%
74%
Strongly Agree/Agree
IT View Biz View
4
Impact of service performance Impact of outages on business operations
Service Level Management
Business/Executives View Metrics Improving
95%84%
90% 90%
70%80%
65%
77%
60%70% 65%
70% 73%66%
Improved or Stayed the Same
Business View IT View
Resp
onse
Limited Alignment of “Business Impact”
Business Impact Executives Mid-Level IT Staff
Lost Revenues Medium High Medium
Poor Customer Retention
Low Medium High
Medium
Increased Time-to-Market
Low Medium Medium
Decreased Business Agility
Low Medium Medium
Employee Productivity
High High High
Increased Cost to Business Operations
Medium Medium High
Medium
Visibility to External Customers
Medium Medium High
Medium
Resp
on
se
5
“Find better ways to leverage existing technology”
“The things that declined are good things”
“Need to hold staff accountable”“Meetings and more meetings … but
nobody with the guts to truly change.”
“We’re implementing an improved ITSM toolkit and plan to soon have
metrics available.”
Improving IT performance metricsR
esp
on
se
Focus on “Process” to Improve Service
Outsource service management
Improve service management processes
Upgrade existing technology
16.3%
38.4%
66.3%
29.1% 31.4%
12.8%
Resp
on
se
What ITIL v2 process capabilities are you using today and planning to use?
Incide
nt M
anag
emen
t
Chan
ge M
anag
emen
t
Prob
lem
Man
agem
ent
Serv
ice
Reque
st M
anag
emen
t
79%66% 60% 54%Implemented
Resp
on
se
What ITIL v3 process capabilities are you using today and planning to use?
Reque
st Fu
lfillm
ent(O
pera
tion)
Contin
ual S
ervi
ce Im
prov
emen
t
Knowle
dge
Manag
emen
t (Tr
ansit
ion)
Serv
ice
Portf
olio
Man
agem
ent (
Stra
tegy
)
Serv
ice
Asset
& C
onfig
urat
ion
Man
agem
ent (
Tran
sitio
n)
Serv
ice
Catal
og M
anag
emen
t (Des
ign)
35% 36% 41% 44% 49% 54%
Top ITIL 3 Planned
Resp
on
se
6
Business maturing faster than IT IT/Business disparity too significant to ignore Business has optimistic but dated view of technology IT needs to “market IT’s unique differentiations Strong benefits for roles with cross fertilization
Conclusions
Executive with IT/Business alignment responsibility Benchmark both IT & Business maturity for next steps State-of-the-Business workshop for IT Annual “Technology for Business Summit” Provide vision & insight to technology trends IT Marketing Strategy/Plan for IT brand identity
Recommendations
7
Getting to Business Value through IT:BSMReview.com 2011 Survey Findings
Michele Hudnall
Solution Marketing
February 29, 2012
New Technologies (Change)Mean New Complexity
Virtualization Cloud
“Anything” as a Service Mobile devices
ComplexityDecreases Value
Virtualization Cloud
“Anything” as a Service Mobile devices
Downward Pressures on Achieving Success
IT Departments Are Under Great Pressure
32
Things are Virtualand mobile
Budgets are shrinkingThe cloud is here
Growing list of alternatives
SecureManageMeasure
STRATEGY
PHYSICAL
VIRTUAL
CLOUD
Allows you to securely deliver, manage and measure computing services across physical, virtual and cloud computing environments
Identity, Security and ComplianceManagement
Data CenterManagement
SOLUTIONS
Operations CenterTransforming IT to Drive Value and Competitive Advantage
• Are we open for business?• How well are we performing?• What is my current risk of outage?
“Giving IT the ability to answer:”
“driving an organizations performance with technology requires the ability to transform the sea of technical data into actionable, intelligent information .”
© 2011 NetIQ Corporation. All rights reserved.36
What IT Needs is ControlKey Value. . . Transforming Data into Actionable, Intelligent Information
Delivered Through a Single, Consolidated View of
Service Performance
Asset Data
Service Desk
Performance
Business KPIs
Configuration
Availability
1. Are we open for business?2. How well are we performing?3. What is our current risk?
© 2011 NetIQ Corporation. All rights reserved.37
What Makes it Compelling?Orders to Cash – Open for Business & Performing – It’s Simple
“A Picture is Worth a Thousand Words”
IT Makinga Difference
© 2011 NetIQ Corporation. All rights reserved.38
Business Value – Operations CenterIt’s about the Service – It’s all about the Business
Physical Virtual Cloud
Infrastructure
Applications
ManagementTechnology Performance
and AvailabilityConfiguration Service Desk
Service Monitoring
Service Measuring
Service Mapping
ControlOperate
Deliver
© 2011 NetIQ Corporation. All rights reserved.39
Operations CenterMany Roles – Many Views – Configurable by Role
Order Processing Availability Management
Multi Metric Monitoring
Network Services
SLA Compliance IT Management
Service Impacting Events Cost Organizations 1 – 2% of Revenue Annually
Large Focused ISV
Large enough to deliver,small enough to care.
$350 Million
Customer Service
Strong Vision
Technical Expertise
www.netiq.com/BSM
This document could include technical inaccuracies or typographical errors. Changes are periodically made to the information herein. These changes may be incorporated in new editions of this document. NetIQ Corporation may make improvements in or changes to the software described in this document at any time.
Copyright © 2011 NetIQ Corporation. All rights reserved.
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