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

info@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