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Key Take-aways for Delivering ITOperational Excellence and Business Valueto the Enterprise

IT Infrastructure, Operation and Data CenterSummit

April 9-10, 2013Sheraton Sao Paulo WTC HotelSao Paulo, Brazil

David Coyle

This presentation, including any supporting materials, is owned by Gartner,Inc. and/or its affiliates and is for the sole use of the intended Gartneraudience or other authorized recipients. This presentation may containinformation that is confidential, proprietary or otherwise legally protected, andit may not be further copied, distributed or publicly displayed without theexpress written permission of Gartner, Inc. or its affiliates. 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

Notes accompany this presentation. Please select Notes Page view.These materials can be reproduced only with written approval from Gartner.Such approvals must be requested via email: [email protected] is a registered trademark of Gartner, Inc. or its affiliates.


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This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use ofhe intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential,

proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without theexpress written permission of Gartner, Inc. or its affiliates. 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

Key Take-aways for Delivering IT Operational Excellence and Business Value to theEnterprise


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In the past, many companies have had a different strategies for selecting, deploying, and managinginfrastructure and operations. They may have had methodologies for classifying infrastructure, byapplication, organization, geography or technological viability, but they did not recognize that differentaspects of infrastructure are fundamentally different based on how they are used by the organization.Gartner has created three categories to distinguish these infrastructure and operations types and helporganizations develop more-appropriate strategies for each one. The same infrastructure may be classifieddifferently in one company than another based on its usage and relationship to that business model.Differentiating infrastructure components by categories allows the I&O organization to avoid acumbersome and expensive "one size fits all" approach and instead determine appropriate levels ofinvestments and appropriate management controls for each layer.

Action Item: Map your infrastructure components into categories or layers so you can better determinelevels of investment and levels of control.


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As I&O teams work to progress in their maturity, skill needs expand. For example to become "Proactive" asan effective process manager, process and business skills are needed not just silo technology skills. Eachprogression up in maturity drives the need for new skills.


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Business metrics must align to each side of the triangle to understand the balance of efficiency, productivityand satisfaction. In determining which side to align business-oriented metrics to, the metrics should not beused twice to eliminate hyper-focus. Metrics may overlap, but having providing a balanced viewpointrequires that organizations interpret metrics appropriately as they align to business objectives. For example,a metric such as MTRS can show how efficient a team is being, but it can also be an indicator of howproductive the team is as well. Deciding how to use the metric eliminates hyperfocus. This is also importantbecause steering performance toward the wrong metric can have un-intended consequences. For instance,should you choose to use FCR as your main measure and the IT service desk staff knows that is how theyare being measured, they may begin to spend too much time on one particular issue. Although this maycertainly address that one issue, it can cause the backlog to become unmanageable, impact the MTRS, aswell as the resolution time distribution, and more importantly, cause a dissatisfaction of other customerswho may be waiting in the queue for assistance with their issue.

Action Item: Establish metrics triangles to ensure you are using small subsets of metrics that work in unisonto tell the story of performance for the I&O.


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I&O organizations often engage Gartner and ask the question of how their operational metrics compare with otherorganizations, seeking some sort of benchmark. This is generally discouraged because one organization's incidentmean time to restore service (MTRS) is 2.5 hours, which does not necessarily mean your organization should also beat 2.5 hours. This is due to a lack of standard methods by which a metric is produced. For instance, while everyonemay agree about what MTRS means, it would also have to be agreed on as to what issues within an organization wereclassified as incidents and as well as an agreed on manner in how time is calculated. Because of that lack ofconsistency, benchmarking against other organizations becomes difficult. Additionally, given that metrics must be

aligned to goals specified by your business, aligning to benchmarked metrics of another organization is not ideal.Ultimately, there are two methods by which an I&O might use benchmarking. If comparison with anotherorganization is required, then find an organization that is as identical to your organization as possible and endure thatmetrics are defined and calculated in the same manner as yours. Alternately, choose to benchmark against your ownperformance. Determine baselines for your metrics, establish improvement targets, and continue to measure againstyour existing benchmark until reaching the target. If the target is tied to a CSF, then you will have not only improvedyour performance as compared with the previous benchmark, but also achieved an established CSF.

Action Item: Use Gartner's IT key metrics data for metrics comparisons when available, but focus on establishingbenchmarks within your own organization with targeted improvements that align to established CSFs.


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Key ChallengesExecutive dashboards focus on showing the operational and technical metrics (such as uptime) thatgenerally justify the I&O organization's existence.Business value dashboards (BVDs) provide CIOs with a value-based view of how the I&O group impactsnot only business productivity, but also the key initiatives that transform and grow the business.CIOs focus on reducing the cost of IT, because they can't clearly delineate the actual value of what IT

brings to the business.I&O organizations that can't clearly demonstrate business value risk substantial budget reductions.

RecommendationsTake the current executive dashboard components, and transform them from productivity and

performance statements into value statements.Gather the appropriate level of financial information needed to ensure that reporting that's focused onrevenue, cost savings and spending is as accurate as possible.Understand the business goals from the CIO's perspective, and use the BVD to report on the metrics thatwill appeal most to the CIO.


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Organizations need several mobile strategies, typically business to employee (B2C) and business toconsumer (B2E) are separate and within each category there may be further sub-strategies. e.g., for BYO,sales force automation and so on. In some areas especially consumer facing areas and those impacted bytrends such as consumerization "strategy" will be very dynamic and more akin to tactics.


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David CoyleThis presentation including any supporting materials is owned by Gartner Inc and/or its affiliates and is for the sole use of


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