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A Forrester Total Economic Impact™
Study Commissioned By BMC
January 2019
The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
Cost Savings And Business Benefits Powered By BMC Helix
Table Of Contents Executive Summary 1
Key Findings 1
TEI Framework And Methodology 4
The BMC Helix ITSM Customer Journey 5
Market Overview 5
Interviewed Organizations 7
Solution Requirements 7
Key Results 9
Composite Organization 9
Analysis Of Benefits 11
Ticket Deflection 11
Agentless Ticket Resolution 13
Agent Productivity 15
End-User Productivity 18
Cost Avoidance Of Legacy On-Premises Solution 20
Unquantified Benefits 21
Flexibility 23
Analysis Of Costs 26
Implementation Labor 26
BMC And Third-Party Technology Licensing And Professional Services 28
Ongoing Labor 30
Financial Summary 31
BMC Helix: Overview 32
Appendix A: Total Economic Impact 34
Appendix B: Endnotes 35
Project Director:
Benjamin Brown
ABOUT FORRESTER CONSULTING
Forrester Consulting provides independent and objective research-based
consulting to help leaders succeed in their organizations. Ranging in scope from a
short strategy session to custom projects, Forrester’s Consulting services connect
you directly with research analysts who apply expert insight to your specific
business challenges. For more information, visit forrester.com/consulting.
© 2019, Forrester Research, Inc. All rights reserved. Unauthorized reproduction
is strictly prohibited. Information is based on best available resources.
Opinions reflect judgment at the time and are subject to change. Forrester®,
Technographics®, Forrester Wave, RoleView, TechRadar, and Total Economic
Impact are trademarks of Forrester Research, Inc. All other trademarks are the
property of their respective companies. For additional information, go to
forrester.com.
1 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
Executive Summary
Delivering a seamless and incident-free user experience has never been
more difficult — or more important — as employees rely on the whole
stack of organizational technology to complete everyday tasks.
Organizations stand to achieve substantial returns by enhancing traditional
IT service management (ITSM) technologies to empower users with self
service and accelerate ticket resolution with cognitive automation.
BMC Helix is a software-as-a-service (SaaS) offering that delivers IT
service management with cognitive capabilities to be run across multicloud
environments. With BMC Helix ITSM, organizations can deploy a myriad of
enhanced ITSM and enterprise service management (ESM) solutions such
as chatbots, cognitive automation, and multicloud service management.
EMS solutions like BMC Helix can extend IT service management
capabilities beyond technology services to address business-centric use
cases such as human resources or facilities; manage service demand and
supply through a common platform, portal, and service catalog; and speed
up innovation and workflow automation through platform-as-a-service
(PaaS) and low-code development tooling.
BMC commissioned Forrester Consulting to conduct a Total Economic
Impact™ (TEI) study and examine the potential return on investment (ROI)
enterprises may realize by deploying BMC Helix ITSM, BMC Helix Digital
Workplace, and BMC Helix Chatbot in the cloud. This study’s purpose is to
provide readers with a framework to evaluate the potential financial impact
of BMC Helix solutions for service management on their organizations.
To better understand the benefits, costs, and risks associated with this
investment, Forrester interviewed seven customers using these BMC Helix
solutions and constructed a composite financial analysis based upon the
aggregated information from these interviews. These customers chose
BMC Helix because it enabled them to quickly and effectively modernize
their ITSM operations, facilitating operational efficiency savings, enhanced
user experience and productivity, and business agility for future needs.
Prior to deploying BMC Helix ITSM, the customers used legacy on-
premises ITSM solutions that were either offered by BMC, a third-party, or
were built in-house. Customers wanted an easily scalable solution to meet
the demands of their growing business that would not require a significant
investment of time and resources to implement and maintain. Customers
also desired a centralized ticketing system, to facilitate prioritizing and
routing service requests. Furthermore, the organizations needed a mobile-
friendly solution, so end users and service desk agents would not be
limited by location in making and resolving requests. Throughout these
needs, they wanted a system that could be embedded with artificial
intelligence and automation for maximum impact.
Key Findings
Quantified benefits. Forrester’s model quantifies the following three-year
risk-adjusted present value (PV) benefits for the composite organization:
› Deflect up to 25% of tickets through self service and 10% with a
chatbot, saving $2.7 million. Replacing confusing and disjointed
submission processes for end users with a centralized self-service portal
and knowledge base, helps end users find instructions and resolve
would-be tickets themselves. By launching a virtual chatbot for IT
requests, organizations can further deflect tickets by automating certain
Key Benefits
Tickets no longer requiring agent labor due to self service, chatbots, and automation:
45% deflection $4.1 million in savings
Improved agent efficiency to resolve the remaining tickets:
15% to 20% reduction $2.2 million in savings
Improved end-user productivity:
3 hours/user per year $4 million in savings
2 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
IT requests and helping users locate the correct self-service articles.
Ticket deflection benefits both end users with faster resolution, and IT
agents who free up time from performing simple, redundant requests.
› Automatically resolve up to 18% of Tier 1 tickets without agent
involvement, saving $1.4 million. Through cognitive automation and
multicloud service management, certain tickets such as provisioning
environments or changing user access can be handled automatically —
saving IT labor and accelerating resolution for end users.
› Streamline agent productivity by reducing labor per ticket by 15%
to 20%, saving $2.2 million. BMC Helix ITSM helps enterprises
analyze the efficiency of the service desk and identify opportunities for
improvement. Submitted tickets feature more complete and accurate
information, and combined with better routing, agents spend less time
gathering information and waste less time on tickets requiring another
agent. Further, cognitive classification and multicloud brokering reduces
manual labor for tickets, accelerating resolution.
› Improve end-user productivity for submitting and managing tickets,
saving $4.0 million. BMC Helix Digital Workplace provides an easy-to-
use, centralized ticket request portal to submit information more
efficiently. Users face less confusion, spend less time on the phone
submitting a ticket, and can have fewer interactions throughout ticket
resolution with more complete, consistent requests. End users saved an
average of 15 minutes per ticket across an estimated 12 tickets per year,
leading to an average time savings of 3 hours per year, per user.
› Avoid costs for legacy on-premises solutions, saving $632K. By
adopting BMC Helix, organization no longer need to pay prior licensing
or invest in on-premises servers. Additionally, organizations can
redeploy systems administration labor to other activities by moving to
the cloud, which can result in significant labor savings that could
otherwise approach the on-premise hardware costs themselves.
Unquantified benefits. The interviewed organizations also experienced
the following benefits that could not be quantified in this study:
› Improve end-user experience with BMC Helix Chatbot.
› Scale and modify BMC Helix cloud deployments faster, easier, and more
cost efficiently.
› Increase availability, user productivity, and satisfaction with faster ticket
resolution.
› Improve field technician responsiveness and productivity.
› Empower senior help desk staff to focus on higher value-add tasks.
› Improve service level agreement (SLA) monitoring and compliance.
› Drive productivity savings for other teams.
Flexibility. The interviewed organizations looked to other potential use
cases and outcomes, which are not quantified for this study:
› Deploy and move BMC Helix across hybrid or multicloud environments.
› Launch new or joint service offerings powered by multicloud service
management.
› Implement future functionality with ease.
› Launch additional automation for password resets.
ROI 354%
Benefits PV
$11 million
NPV $8.6 million
Payback <6 months
3 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
› Utilize BMC Helix Business Workflows for enterprise service
management to handle broader tasks and workflows beyond IT.
› Utilize BMC Helix ITSM to provide and manage direct customer support.
› Improve management of both hardware and software assets using BMC
Helix CMDB (configuration management database).
› Streamline audit compliance and reduce the risk of violations.
› Prevent issues and reduce labor to resolve change incidents.
Costs. The composite organization experiences the following three-year,
risk-adjusted PV quantified costs:
› Implementation costs of $459K. The organization deploys BMC Helix
ITSM with multicloud service management, BMC Helix Digital
Workplace, and BMC Helix Chatbot over a six-month period, dedicating
IT agents, engineers, and other cross-functional employees to
deployment and training for the new solution.
› BMC and third-party technology licensing and professional
services costs of $1.4M. Licensing includes BMC Helix ITSM with
multicloud service management, BMC Helix Digital Workplace, and BMC
Helix Chatbot. The organization employs BMC’s professional services to
help migrate data, deploy the BMC Helix capabilities, and provide
continuing support and customization as the organization updates and
enhances their environment on an ongoing basis. A small amount of
telephony costs are also incurred to support BMC Helix Chatbot
operating over an optional SMS messaging service.
› Ongoing labor costs of $570K. One systems administrator is devoted
to ongoing management of the environment, and additional FTEs devote
part of their time to building knowledge base articles, training the
chatbot, and deploying new use cases for the chatbot, automation, and
multicloud service management.
Forrester’s interviews with seven existing customers and subsequent
financial analysis found that a composite organization based on these
interviewed organizations experienced benefits of $10,978,827 over three
years versus costs of $2,419,757, adding up to a net present value (NPV)
of $8,559,070 and an ROI of 354%.
Total benefits
PV, $11.0M
Total costs PV,
$2.4M
Initial Year 1 Year 2 Year 3
Financial Summary
Payback:<6 months
$2.7M
$1.4M
$2.2M
$4.0M
$631.7K
Ticketdeflection
Agentlessticket
resolution
Agentproductivity
End userproductivity
Costavoidanceof legacy
on-premisessolution
Benefits (Three-Year)
4 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
TEI Framework And Methodology
From the information provided in the interviews, Forrester has constructed
a Total Economic Impact™ (TEI) framework for those organizations
considering implementing BMC Helix.
The objective of the framework is to identify the cost, benefit, flexibility, and
risk factors that affect the investment decision. Forrester took a multistep
approach to evaluate the impact that BMC Helix service management
solutions can have on an organization:
DUE DILIGENCE Interviewed BMC stakeholders and Forrester analysts to gather data relative to BMC Helix.
CUSTOMER INTERVIEWS Interviewed seven organizations using BMC Helix to obtain data with respect to costs, benefits, and risks.
COMPOSITE ORGANIZATION Designed a composite organization based on characteristics of the interviewed organizations.
FINANCIAL MODEL FRAMEWORK Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewed organizations.
CASE STUDY Employed four fundamental elements of TEI in modeling the impact of BMC Helix: benefits, costs, flexibility, and risks. Given the increasing sophistication that enterprises have regarding ROI analyses related to IT investments, Forrester’s TEI methodology serves to provide a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
The TEI methodology
helps companies
demonstrate, justify,
and realize the
tangible value of IT
initiatives to both
senior management
and other key
business
stakeholders.
DISCLOSURES
Readers should be aware of the following:
This study is commissioned by BMC and delivered by Forrester Consulting. It is
not meant to be used as a competitive analysis.
Forrester makes no assumptions as to the potential ROI that other
organizations will receive. Forrester strongly advises that readers use their own
estimates within the framework provided in the report to determine the
appropriateness of an investment in BMC Helix.
BMC reviewed and provided feedback to Forrester, but Forrester maintains
editorial control over the study and its findings and does not accept changes to
the study that contradict Forrester’s findings or obscure the meaning of the
study.
BMC provided the customer names for the interviews but did not participate in
the interviews.
5 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
The BMC Helix ITSM Customer Journey
BEFORE AND AFTER THE BMC HELIX INVESTMENT
Market Overview
BMC Helix ITSM is the newest evolution of BMC’s IT service
management (ITSM) solution, which enables customers to run ITSM as a
service in the cloud with flexibility to support hybrid-cloud and multicloud
environments via containerization of core services. Interviewed
customers described how on-premises deployments often led to out-of-
date versions, significant capital expenditures for hardware, and
extensive ongoing systems administration. With BMC Helix, interviewed
customers migrated these deployments to an “as-a-service” model,
which reduced the cost and effort of upgrades and ultimately enabled the
organizations to remain up-to-date with the newest capabilities.
Market Trends: Cloud Migration
According to Forrester’s research, organizations are looking to migrate
legacy workloads not originally built for the cloud. While many
enterprises quickly embraced the cloud with workloads such as mobile
applications or retail websites, legacy systems like enterprise resource
planning (ERP) or ITSM have lagged behind. Enterprises are rapidly
exploring the possibility of migrating these systems to recognize the
potential availability, scalability, and cost-reduction benefits provided by
the cloud.
› Cloud migration is a key enterprise strategy. In surveys conducted
by Forrester with infrastructure decision makers, 90% of respondents
said they are developing a comprehensive cloud strategy over the next
12 months.1 Also, 75% of respondents stated that migrating existing
applications to cloud environments was part of their cloud strategy.2
Moreover, these respondents shared that they have begun targeting
workloads that would benefit due to location or cost model.
› Most organizations now have hybrid-cloud or multicloud
deployments. Hybrid cloud refers to the use of cloud in combination
with other cloud and non-cloud technologies, and multicloud refers
more specifically to the use of multiple cloud environments.3 These
hybrid deployments are now the norm.4 For those organizations
already leveraging at least some form of public cloud offering, 91%
report having two or more environments in place.5 Further, in
Forrester’s surveys, 77% of respondents describe their cloud strategy
as hybrid, with no single platform dominating on-premises, private
cloud, or public cloud plans.6
› Software-as-a-service (SaaS) provides agility and amplifies
benefits. According to Forrester: “Many SaaS products deliver higher
benefits faster than on-premises ones because they are easier to use
and configure. They also enable businesses to be more agile — for
instance, allowing them to introduce new business models.”7
Market Trends: Containerization
Containers can help organizations tackle the challenges of managing
hybrid-cloud environments — and in 2019, Forrester predicts them to
increasingly reshape core enterprise apps.8 Moving workloads from one
cloud to another isn't simple, and organizations are looking for ways to
manage these challenges. Containers are “stateless ways to package
6 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
applications to establish abstraction from
underlying environments.”9
They bundle applications with the libraries they
depend upon, reducing complexity and increasing
efficiency, helping to bridge the gaps between
legacy systems and new services.10 Containers
can help update applications faster and at scale,
with higher resiliency and flexibility across a wider
range of implementation options.11
Containerized applications can therefore play a
valuable role in an organization’s efforts regarding
cloud migration (moving a workload from a non-
cloud to cloud environment), portability (moving a
cloud-based workload to another cloud
environment, helping to avoid potential vendor
lock-in), and interoperability (connecting a cloud
workload or environment to other cloud or non-
cloud workloads or environments through APIs).12
In Forrester’s surveys, 63% of respondents now use containers to
support their public cloud deployments.13 Large enterprises want to
recognize the cost benefits of the cloud, while avoiding the time
investment involved in rearchitecting their applications. Containers
enable the flexibility for organizations to choose their preferred
deployment and, if public, vendor.
Market Trends: Next Steps For Service Management
Many service desks have not been forward-looking enough to anticipate,
let alone drive, disruptive changes. Process discipline and compliance
must be more agile in the digital age.14 ITSM solutions are expanding to
address the pace of innovation and provide ways to make the service
desk more agile, faster, and accurate.
› Organizations are evaluating smart chatbots to augment agent
activity. These “virtual agents” can use natural language processing to
provide real-time recommendations.15 And according to Forrester,
“automation is no longer optional for excellent customer experience —
it's mandatory.”16
› Cognitive capabilities can enhance efficiencies to under-
automated areas. Organizations are applying cognitive features to
their service operations, to accelerate request fulfilment and optimizing
workflows.
› Digital transformation heightens the importance of enterprise
service management (ESM) within the modern enterprise. As
enterprises engage in transformation efforts, both internal and external
enterprise services must also become digital. Internal corporate units,
such as human resources and facilities, typically maintain separate
systems of record specialized for their function. While robust, these
systems often do not efficiently handle service requests, which are
typically funneled to a shared inbox or handled via collaboration tools
(e.g., Sharepoint and Lotus Domino). With no intelligent way to
manage or measure these requests, they can easily be lost or
overlooked. Many enterprises are now expanding their ITSM service
platforms to handle requests across their entire organization, providing
a centralized location to manage service requests.17
7 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
Interviewed Organizations
For this study, Forrester conducted seven interviews with BMC
customers using BMC Helix ITSM along with a combination of multicloud
service management capabilities, BMC Helix Digital Workplace and BMC
Helix Chabot. Interviewed customers include the following:
Solution Requirements
Interviewed organizations identified several key solution requirements
that led to their investment in BMC Helix ITSM, BMC Helix Digital
Workplace, and BMC Helix Chatbot:
› Improve user experience. Organizations aimed to simplify the
process for end users, replacing multiple separate (and potentially
confusing) portals, emails, and phone numbers with a centralized
portal for all requests. They looked to knowledge base articles, self-
service forms, and chatbots to empower users to get what they need
themselves instantly without waiting for agents. Finally, they aimed to
improve the routing and resolution of tickets to minimize the effort and
interactions required of end users and to get the tickets resolved faster.
The director of service management at an education
organization shared: “The key driver [for our investment in
BMC Helix] is the customer service experience. Reducing
errors or saving time is a side benefit, we’re not using that as
the primary prioritization. What we’re looking at is finding the
best way to improve the experience and connect the user for
fulfilment as efficiently as possible.”
The director of service management for an IT services
organization elaborated on similar ambitions: “In the past,
[tickets] went through email and different approval systems in
INDUSTRY REGION INTERVIEWEE SERVICE DESK STATISTICS
Professional services
Global • VP of IT sourcing
• VP of enterprise applications
• 90,000 end users
• 750,000 tickets
• 80 agents
Education United states
• Director of service management
• Associate director of IT service delivery
• Assistant director of service management
• 32,000 end users
• 70,000 tickets
• 15 agents
IT services Global Customer services director
• 30,000 end users
• 400,000+ tickets
• 60 agents
Healthcare United States Systems administrator
• 12,000 end users
• 15,000 tickets
• 30 agents
Insurance EMEA Director of service management
• 10,000 end users
• 92,000 tickets
• 7 agents
Education United States Systems administrator
• 6,000 end users
• 70,000 tickets
• 95 agents
IT services EMEA Director of service management • 66,000 tickets
• 200 agents
“The key driver [for our
investment in BMC Helix] is
the customer service
experience. Reducing errors
or saving time is a side
benefit, we’re not using that as
the primary prioritization. What
we’re looking at is finding the
best way to improve the
experience and connect the
user for fulfilment as efficiently
as possible.”
Director of service management,
education
8 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
three systems, and now it is all in [BMC Helix ITSM]. This is a
big improvement in satisfaction and efficiency for [service desk
agents] and end users. On many levels it will be better.”
› Deflect tickets. Organizations wished to deflect tickets from the
service desk through knowledge bases and chatbots, and to resolve
some submitted tickets entirely via automation.
› Improve agent efficiency. Organizations wanted to shift tickets from
phone or email to portals or chatbots to enrich requests with more
information, reduce the need for follow-up questions, and shorten
communication. They sought to route tickets to the right teams to
reduce redundant labor and avoid wasting the labor of higher tier
agents or subject matter experts for simple requests.
› Quickly scale to meet business growth. Business growth naturally
led to an increased number of end users and tickets, but IT lacked
resources to support the growth. Interviewees needed an easily
scalable service management solution they could implement quickly
and that could meet their growing business demands cost-effectively.
› Reduce upfront expenses, upgrade costs, and administrative
effort. By moving to the cloud, organizations hoped to avoid hardware
purchases, maintenance, and systems administration and aimed to
stay up-to-date with new features. They sought to shift focus from
“keeping the lights on” to higher-value work.
The customer services director for an IT services company
described their drive towards the cloud via software-as-a-
service (SaaS, “Our preference is SaaS-first for everything so
we can focus on doing what we need to do.”
An education organization’s assistant director of service
management shared: “The reality is that we are not data
center managers. There are places that do this for a living that
are purpose-driven and efficient. We're looking to reduce our
on-premises footprint and cost by taking advantage of the
efficiencies that exist in the cloud.” She continued: “We were
looking to free up staff resources for development and
innovation in operations versus the day-to-day of trying to
maintain, configure, and upgrade the service. We're restricted
on resources, so we need to help them work at a higher level.”
› Gain flexibility to tackle future challenges, such as advanced use
cases. Interviewed organizations searched for an ITSM solution which
could fit their current needs while also providing capabilities to tackle
future challenges such as supporting other workflows (such as human
resources), change management, asset management, and auditing.
An education organization’s director of service management
described: “We wanted artificial intelligence integrated with the
back-end systems and actual outcomes. A key decision in
choosing [the BMC Helix Chatbot] was our ability to prototype
and demonstrate the support on the back end. It makes our
support efforts more efficient and feasible, so we can do more
complex and varied things while supporting our users.”
› Provide solutions for the breadth of today’s and tomorrow’s
needs in a unified, continually updated, flexible solution.
Organizations sought a provider whose systems could support the full
breadth of ITSM and enterprise service management needs, so they
could continually grow and launch new capabilities easily and quickly.
“We wanted artificial
intelligence integrated with the
back-end systems and actual
outcomes. A key decision in
choosing [the BMC Helix
Chatbot] was our ability to
prototype and demonstrate the
support on the back end. It
makes our support efforts
more efficient and feasible, so
we can do more complex and
varied things while supporting
our users.”
Director of service management,
education
“Our preference is SaaS-first
for everything so we can focus
on doing what we need to do.”
Customer services director, IT
services
“The reality is that we are not
data center managers. There
are places that do this for a
living that are purpose-driven
and efficient. We're looking to
reduce our on-premises
footprint and cost by taking
advantage of the efficiencies
that exist in the cloud.”
Assistant director of service
management, education
9 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
Choosing a technology with continual updates and modular
deployments in the cloud was essential.
The professional services’ VP of enterprise applications
explained how BMC’s Helix offerings met ESM needs: “[BMC
Helix] provides the first single, shared services platform across
functions and geographies for our organization. We used to
have many teams who didn't even have a way for people to
reach out for support, and we had multiple other help desks in
different regions. Now we have global reporting for all our
tasks such as IT, HR, payroll, and more.” He also explained
the value of the BMC Helix Chatbot deployment using IBM
Watson: “With the [BMC Helix Chatbot] built on IBM Watson,
BMC offered one platform that could be used across the entire
shared services team. The additional capabilities that [BMC
Helix] brings with every release has made it a good choice.”
Key Results
Organizations revamped their service desks and enhanced the rigor of
their information technology infrastructure library (ITIL) operations with
BMC Helix. The customer interviews revealed that organizations can
achieve a number of key results from the investment in BMC Helix:
› Enhance the end-user experience. Users found it easier to find
information, communicate with the service desk and chatbot, and
submit tickets, while also enjoying faster ticket resolution speed, better
SLAs, and reduced downtime — which previously wasted productivity
and increased frustration.
› Deflect up to 45% of tickets from the service desk. Knowledge
base articles, self-service forms, chatbots, and automation across
environments can slash the number of tickets submitted and/or that
require agent involvement.
› Improve service desk productivity for ticket resolution by up to
20%. Redundant labor is reduced through better routing, while
enriched upfront information reduces communication needs.
Automation, analytics, and service integration further accelerates
ticket resolution for service desk agents.
› Eliminate legacy licenses, hardware, and systems administration
labor. With BMC Helix available on choice of cloud, organizations no
longer need to invest in and manage an on-premises installation —
allowing employees to focus on higher-value work and helping to
keep systems up-to-date with the newest capabilities.
Composite Organization
Based on the interviews, Forrester constructed a TEI framework, a
composite company, and an associated ROI analysis that illustrates the
areas financially affected. The composite organization is representative
of the seven organizations that Forrester interviewed and is used to
present the aggregate financial analysis in the next section. The
composite organization:
› Is a global enterprise based in the United States.
› Upgrades from an on-premises, third-party ITSM solution to BMC
Helix ITSM, BMC Digital Workplace, and BMC Helix Chatbot.
Key assumptions:
• Global enterprise based in the United States that adopts BMC Helix ITSM, BMC Digital Workplace, and BMC Helix Chatbot
• 40,000 supported end users
• 12 annual tickets per user
• 480,000 total annual tickets
• 169 Tier 1 and 58 Tier 2 or Tier 3 service desk agents
• Tickets distributed with 35% at Tier 0, 55% at Tier 1, and 10% at Tier 2 or Tier 3
• 47 minutes average labor to resolve a ticket prior to Helix
• $24 per hour weighted average salary for agents
“Return on investment [for
implementing BMC Helix] was
based on efficiency, time, and
the ability to grow related to
scale. Can it help us resign
some existing customers for
an additional three or five
years? That is the kind of
things we’re looking at.”
Customer services director, IT
services
10 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
› Supports 40,000 end users who submit an average of 12 tickets per
year (both service requests and incidents). Tier 0 tickets account for
35% of ticket volume and take an average of 30 minutes of labor to
resolve by Tier 1 agents, but could be handled by users themselves.
Tier 1 tickets account for 55% of ticket volume and take an average of
45 minutes of labor, while Tier 2 and Tier 3 tickets account for 10% of
ticket volume and take an average of 120 minutes of labor to resolve.
› Employs 169 Tier 1 agents at a fully burdened rate of $22 per hour and
58 Tier 2 and Tier 3 agents at a fully burdened rate of $31 per hour.
These agents work 2,080 hours per year at a utilization rate of 80% for
tickets (1,664 hours). The other 20% of their time is devoted to other IT
projects, knowledge creation, training, and administrative tasks.
› Resolves tickets with an average of 47 minutes of labor each. Agents
work for a weighted average cost of $24 per hour, for a per-ticket cost
of approximately $17.23 (prior to adopting BMC Helix ITSM).
The following reference table provides the baseline assumptions
regarding the composite organization’s service desk, including ticket
volume, ticket type, resolution time, and agent employment.
Composite Organization And Assumptions: Reference Table
REF. METRIC CALC. VALUE
R1 Number of end users supported by service desk 40,000
R2 Annual tickets submitted per user 12
R3 Baseline ticket volume R1*R2 480,000
R4 Percent of tickets that could be resolved at Tier 0 Assumption 35%
R5 Volume of Tier 0 ticket candidates R3*R4 168,000
R6 Minutes of labor currently required to resolve Tier 0 ticket candidates Assumption 30
R7 Percent of tickets that can be resolved by Tier 1 agents Assumption 55%
R8 Volume of Tier 1 tickets R3*R7 264,000
R9 Minutes of labor required to resolve Tier 1 tickets Assumption 45
R10 Percent of tickets requiring Tier 2 or Tier 3 agents Assumption 10%
R11 Volume of Tier 2+ tickets R3*R10 48,000
R12 Minutes of labor required to resolve Tier 2+ tickets Assumption 120
R13 Minutes of labor required to resolve a ticket, weighted average (R5*R6+R8*R9+ R11*R12)/R3
47
R14 Number of T1 agents (80% utilization) (R5*R6+R8*R9) /60/1664
169
R15 Fully burdened hourly salary for Tier 1 service desk agents $35K annually + 30% burden rate
$22
R16 Number of T2 and T3 agents (80% utilization) (R11*R12)/60/1664 58
R17 Fully burdened hourly salary for Tier 2 and Tier 3 service desk agents
$50K annually + 30% burden rate
$31
R18 Weighted average service desk hourly salary (R14*R15+R16*R17) /(R14+R16)
$24
“With the BMC Helix Chatbot
built on IBM Watson, BMC
offered one platform that could
be used across the entire
shared services team. The
additional capabilities that
BMC Helix brings with every
release has made it a good
choice.”
VP of enterprise applications,
professional services
11 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
The table above shows the total of all benefits across the areas listed below, as well as present values (PVs) discounted at 10%. Over three years, the composite organization expects risk-adjusted total benefits to be a PV of almost $11 million.
24%
three-year benefit PV
$2.7 million
Analysis Of Benefits
QUANTIFIED BENEFIT DATA AS APPLIED TO THE COMPOSITE
Ticket Deflection
Organizations created unified support portals for their IT services in BMC
Helix, featuring knowledge base articles, self-service forms, and for
some, a chatbot. These self-service offerings can handle common and
simple requests (referred to in this study as Tier 0 tickets), empowering
users to quickly and easily resolve their need themselves without
involving an IT support agent. Ensuring that the information is robust,
relevant, and easily navigable is important; when done correctly, it can
deflect significant ticket volume from the service desk.
› An education organization slashed tickets with self service, as the
associate director of IT service delivery described, “Our customer base
has grown while support requests have decreased by 30% due to
launching more self-services and developing solutions that are more
intuitive to use by the user.” He continued, “Our self-service efforts and
self-help documentation in the knowledge base have greatly
empowered end users who opt to ‘fix it themselves’.”
› The VP of IT sourcing for a professional services company described
how deploying knowledge base articles led to immediate ticket
deflection, “In every area we've implemented a knowledge base article,
we have reduced tickets within three months by 10% to 15%.”
BMC Helix ITSM provides the platform for the knowledge base and its
service desk analytics can surface common requests, challenges, or
points of confusion. Organizations can then leverage these findings to
build new articles and forms, improve existing ones, or better organize or
surface content so users can find what they need as easily as possible.
› The associate director of IT service delivery for an education
organization described the value of data from BMC Helix ITSM in
building knowledge base articles: “We can now automatically classify
work requests through the use of templates. This helps improve our
metrics and our ability to know what our customers are struggling with,
which allows us to prioritize what areas to focus on for self-service
documentation and/or automation.”
Total Benefits
REF. BENEFIT YEAR 1 YEAR 2 YEAR 3 TOTAL PRESENT VALUE
Atr Ticket deflection $628,320 $1,099,560 $1,570,800 $3,298,680 $2,660,093
Btr Agentless ticket resolution $352,836 $705,672 $705,672 $1,764,180 $1,434,142
Ctr Agent productivity $633,071 $1,092,733 $1,017,889 $2,743,693 $2,243,359
Dtr End-user productivity $1,224,000 $1,836,000 $1,836,000 $4,896,000 $4,009,497
Etr Cost avoidance of legacy on-premises solution
$308,275 $222,775 $222,775 $753,825 $631,736
Total benefits (risk-adjusted) $3,146,502 $4,956,740 $5,353,136 $13,456,378 $10,978,827
Ticket deflection: 24% of total benefits
“In every area we've
implemented a knowledge
base article, we have reduced
tickets within three months by
10% to 15%.”
VP of IT sourcing,
professional services
12 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
Along with BMC Digital Workplace, the BMC Helix Chatbot helps users
navigate self-service offerings, finding the information they need more
quickly and easily, and ultimately amplifying ticket deflection from the
service desk. The virtual agent provides users with a more pleasant,
conversational experience that is available at all hours and can be easily
accessed (over SMS, for example), and it can also automatically resolve
certain issues through automation or aid in ticket submission.
› Deflecting basic tickets was essential to the professional services
company when choosing BMC Helix Chatbot, as the VP of IT
explained: “The primary driver for [BMC Helix Chatbot] was to move
our staff away from the rudimentary work they were doing and improve
their productivity.” The organization’s initial chatbot deployments
included 16 standard human resources queries for policy and
procedure questions such as insurance, benefits, promotions, and
relocation. They then deployed transactional capabilities such as
checking balances or managing applications, and are now deploying a
range of IT-specific functions with a major focus on providing and
revoking access to applications and infrastructure.
› By implementing BMC Helix Chatbot, an education organization’s
service performance has caught the attention of other departments
seeking call deflection, as the assistant director of service
management described: “Since launching the [BMC Helix Chatbot],
several other departments have requested to add their frequently
asked questions to the chatbot to trim down their call volume. In the
long run, it won't just serve IT, it will serve the organization as a whole.”
› The professional services’ VP of IT sourcing shared: “We did not have
ITIL processes before [BMC Helix ITSM], so agents took a lot of time
to diagnose problems and determine the process to take. Now, users
are immediately shown a knowledge base when submitting tickets and
tickets have gone down as a result. Further, users can now select the
right type of ticket which helps route tickets to the right team. Finally,
we have consolidated the services to equalize work across teams.”
Forrester’s financial evaluation of this benefit assumes the following:
› Thirty-five percent of the organization’s 480,000 tickets (168,000) can
be considered Tier 0, meaning that they could instead be solved by the
user themselves before becoming a ticket with knowledge base
articles or the BMC Helix chatbot, and no agent interaction.
› Tier 1 agents resolve these tickets, at an average fully burdened hourly
salary of $22 (approximately $35,000 per year burdened at 30% for
benefits and other costs of employment).
› The average agent labor per Tier 0 ticket is 30 minutes.
› As the knowledge base is launched, promoted, and enhanced, and as
the chatbot expands and helps drive users to the appropriate articles, it
deflects 30%, 50%, and 70% of Tier 0 tickets in years 1 through 3,
respectively — effectively deflecting 24.5% of overall ticket volume.
› As the chatbot is launched, promoted, and enhanced, it deflects 10%,
20%, and 30% of Tier 0 tickets in Year 1, Year 2, and Year 3,
respectively — effectively deflecting 10.5% of overall ticket volume.
Forrester recognizes that impacts will vary depending upon the unique
characteristics of every organization. Specific risk considerations include:
› Existing IT ecosystem and any pre-existing knowledge base.
Tickets deflected by
knowledge base articles:
24.5% deflection
Tickets deflected by the
BMC Helix Chatbot:
10.5% deflection
“Our customer base has grown
while support requests have
decreased by 30% due to
launching more self-services
and to developing solutions
that are more intuitive to use
by the user.”
Associate director of IT service
delivery, education
“Since launching the chatbot,
several other departments
have requested to add their
frequently asked questions to
the chatbot to trim down their
call volume. In the long run, it
won't just serve IT, it will serve
the organization as a whole.”
Assistant director of service
management, education
13 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
Impact risk is the risk that the business or technology needs of the organization may not be met by the investment, resulting in lower overall total benefits. The greater the uncertainty, the wider the potential range of outcomes for benefit estimates.
13%
three-year benefit PV
$1.4 million
› Complexity, severity, and overall volume of tickets.
› Internal talent, focus, and implementation of knowledge base and
chatbot capabilities.
› The average salary and level of service desk employees.
› Training and end-user adoption of BMC Helix technologies.
To account for these risks, Forrester adjusted this benefit downward by
15%, yielding a three-year risk-adjusted total PV of $2,660,093.
Agentless Ticket Resolution
BMC Helix ITSM provide automation capabilities that can allow certain
tickets to be handled entirely without the involvement of a live agent. This
can be effective for certain tasks such as provisioning or shutting down
services or environments, updating passwords, or editing other relevant
information. Brokering tickets from the standard portal to other services
such as project management, CRM, sales, voice, or cloud tools enables
a user to submit a ticket easily while ensuring it gets to the correct
service, sets up the correct credentials, and passes back the end result
for the user as needed – all with little to no agent intervention.
Interviewed organizations are in early days of agentless automation,
especially across multicloud environments, but are beginning to
experiment and finding early wins. While they may only have one or a
Ticket Deflection: Calculation Table
REF. METRIC CALC. YEAR 1 YEAR 2 YEAR 3
A1 Volume of Tier 0 ticket candidates R5 168,000 168,000 168,000
A2 Minutes of labor per ticket R6 30 30 30
A3 Fully burdened hourly salary for Tier 1 agents R15 $22 $22 $22
A4 Percent deflected by self service 30% 50% 70%
A5 Tickets deflected by self service A1*A4 50,400 84,000 117,600
A6 Hours saved via self service A2*A5/60 25,200 42,000 58,800
A7 Self-service labor cost savings A3*A6 $554,400 $924,000 $1,293,600
A8 Percent deflected by virtual agent 10% 20% 30%
A9 Tickets deflected by virtual agent A1*A8 16,800 33,600 50,400
A10 Hours saved via virtual agent A2*A9/60 8,400 16,800 25,200
A11 Virtual agent labor cost savings A3*A10 $184,800 $369,600 $554,400
At Ticket deflection A7+A11 $739,200 $1,293,600 $1,848,000
Risk adjustment ↓15%
Atr Ticket deflection (risk-adjusted) $628,320 $1,099,560 $1,570,800
Three-year, risk-adjusted present value of ticket deflection: $2,660,093
Agentless ticket resolution: 13% of total benefits
14 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
couple of tasks automated, they see significant potential for a broad
array of other services to be automated – promising huge benefits to
users who would no longer wait days or weeks for their request, and
major savings for agents who no longer would work on those tickets.
› The professional services company automated over 16 use cases,
eliminating almost 50,000 tickets per year and allowing the reallocation
of eight agents to focus on more valuable work. Examples including
setting up printers, installing VPNs, establishing or revoking application
access, provisioning access to specific buildings when a user is
traveling, or changing permissions as a user changes their job role.
› An education organization enabled users to instantly set up their
devices on the wireless network with no agent involvement – a task
that would have taken days to be resolved, causing frustrating delays
for end users. The associate director of IT service delivery elaborated:
“We've piloted automating the provisioning of specific end-user devices
to our wireless network. Three-to-five day delays were changed to just-
in-time provisioning.” In a separate initiative, the organization also
automated voice service tasks: “End users can now provision their own
voice services, manage voice-related passwords, and customize their
voice service functionality. . . . We've eliminated our communication
services team [with multicloud service management].”
› The insurance company can now automatically provision new users by
leveraging integrations with a variety of applications and web services.
Instead of getting a spreadsheet and manually conducting these tasks,
it all can happen automatically – saving significant labor.
Forrester’s financial evaluation of this benefit assumes the following:
› Fifty-five percent of the organization’s 480,000 tickets (264,000) can be
solved by Tier 1 agents (not including Tier 0 tickets).
› Tier 1 agents are paid an average fully-burdened hourly salary of $22
(approximately equivalent to $35,000 per year burdened at 30% for
benefits and other costs of employment).
› The average agent labor per Tier 1 ticket is 45 minutes.
› As automation and multicloud service management is deployed and
expanded, 9% of Tier 1 tickets in Year 1 and 18% of Tier 1 tickets in
Year 2 and Year 3 can be solved entirely via automation without any
agent involvement – reducing the overall ticket volume handled by
agents by approximately 10%.
Forrester recognizes that impacts will vary depending upon the unique
characteristics of every organization. Specific risk considerations include:
› The other technologies in use as part of the IT stack and their potential
for integration and automation.
› Nature of tickets including complexity, severity, potential for
automation, and overall volume.
› Internal talent and implementation of multicloud service management
integrations and other forms of automation.
› The average salary and level of service desk employees.
› Training and end-user adoption of BMC Helix technologies.
To account for these risks, Forrester adjusted this benefit downward by
10%, yielding a three-year risk adjusted total PV of $1,434,142.
Tickets handled by
automation without any
agent interaction:
10% automated
“We've piloted automating the
provisioning of specific end-
user devices to our wireless
network. Three-to-five day
delays were changed to just-
in-time provisioning.”
Associate director of IT service
delivery, education
“End users can now provision
their own voice services,
manage voice-related
passwords, and customize
their voice service
functionality.”
Associate director of IT service
delivery, education
15 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
20%
three-year benefit PV
$2.2 million
Agent Productivity
Organizations also leverage BMC Helix ITSM to further streamline their
service desks and improve productivity for the remaining tickets. The
interviewed IT services organization anticipates at least a 10%
improvement in productivity, while an education organization’s associate
director of IT service delivery described achieving significant savings:
“We've been able to reallocate 17% of our agents to proactive problem
management over the last three years. We also saw a shift in work
patterns that allow our help desk agents to spent 20% more of their time
working on developing knowledge articles, project work, and other
operational duties not directly related to support.” To improve efficiency
and achieve such gains, organizations use BMC Helix ITSM to:
› Shift tickets from phone or email to standard forms. Before BMC
Helix ITSM, organizations frequently received tickets via phone and
email. Requests lacked context and often required further
investigation. With BMC Helix, requests are submitted via a consistent
portal (via the chatbot or Advanced Digital Workplace), which collects a
minimum required standardized amount of information. Having richer
context in service requests reduces the amount of time agents must
spend communicating with the end user and investigating issues.
› Automatically categorize and route tickets to the correct
resources or teams. This helps decrease the calls and emails that
users typically send directly to their go-to support agents (often a
higher tier), preventing that agent from wasting time on basic work.
BMC Helix ITSM helps the organization ensure that tickets had rich
context for resolution, resulting in fewer tickets escalating to Tier 2 or
Tier 3 workers. The associate director of IT service delivery for an
education organization described, “Using work request templates in
[BMC Helix ITSM] has improved ticket routing to the correct team.”
› Reduce manual rekeying and ticket management — even across
environments and service providers. Integrating environments with
Agentless Ticket Resolution: Calculation Table
REF. METRIC CALC. YEAR 1 YEAR 2 YEAR 3
B1 Volume of Tier 1 tickets R8 264,000 264,000 264,000
B2 Minutes of labor required to resolve Tier 1 tickets R9 45 45 45
B3 Fully-burdened hourly salary for Tier 1 agents R15 $22 $22 $22
B4 Percent resolved entirely via automation 9% 18% 18%
B5 Tickets resolved entirely via automation B1*B4 23,760 47,520 47,520
B6 Hours saved via automation B2*B5/60 17,820 35,640 35,640
Bt Agentless ticket resolution B3*B6 $392,040 $784,080 $784,080
Risk adjustment ↓10%
Btr Agentless ticket resolution (risk-adjusted) $352,836 $705,672 $705,672
Three-year, risk-adjusted present value of agentless ticket resolution: $1,434,142
Agent productivity: 20% of total benefits
16 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
BMC Helix ITSM’s multicloud service management capabilities enables
tickets to be seamlessly passed between systems without re-entering
data and simplifies the process of brokering and monitoring tickets.
Automation also helps accelerate certain tasks, and by collecting ticket
information from users via forms rather than emails or calls, agents
spent less time entering information — simultaneously reducing the
risk of wrongly entered data.
An education organization built automation with BMC Helix
Digital Workplace and BMC Helix ITSM’s multicloud service
management capabilities, as the assistant director of service
management explained: “We are resource-constrained, so
automating processes behind the scenes is very appealing.
We need to be able to cut across decentralized environments
so we can integrate systems to speak to each other and pass
tickets without the end user seeing any difference.”
› Enable agents to update, monitor, and resolve tickets from mobile
devices. Empowering service agents to work on-the-go improves
productivity as agents can review information when away from the
main service desk — especially benefiting deskside or field assistance.
One education organization’s systems administrator saw huge
impacts, “The biggest benefit we received was that our techs
were able to be mobile. They didn’t have to be tethered to
desktops or laptops to get their service tickets. Before, they
were always constantly going back to their desk to get their list
of what was going on [at their job sites].”
› Scale and streamline IT service desk operations. Organizations
create key performance indicators (KPIs) and dashboards to monitor
the effectiveness of the service desk in a consolidated view. They also
complete system performance checks with BMC Helix ITSM and
analyze the frequency, type, and complexity of tickets — using this
information to adequately provision service desk resources.
› Forecast user ticket demands and mold hiring strategy. Better
understanding of needs and capabilities can help identify key skillsets
and potentially prevent excess hiring of Tier 2 and Tier 3 resources.
Forrester’s financial evaluation of this benefit assumes the following:
› The remaining Tier 0 tickets not deflected (as noted in the first benefit
category) still require agent involvement for resolution — 100,800
tickets in Year 1, 50,400 tickets in Year 2, and 0 tickets in Year 3.
› The remaining Tier 1 tickets not automated (as noted in the previous
category) still require agent involvement for resolution — 240,240 in
Year 1 and 216,480 tickets in Year 2 and Year 3.
› The remaining 10% of the organizations’ overall ticket volume, 48,000
tickets, require escalation to Tier 2 or Tier 3 agents.
› The average agent labor per Tier 0 ticket is 30 minutes, per Tier 1
ticket is 45 minutes, and per Tier 2 and Tier 3 ticket is 120 minutes.
› The average fully burdened hourly salary for Tier 1 agents is $22 and
for Tier 2 and Tier 3 agents is $31.
› Tier 1 agents achieve productivity improvements of 8% in Year 1 and
15% in Year 2 and Year 3.
› Tier 2 and Tier 3 agents achieve productivity improvements of 10% in
Year 1 and 20% in Year 2 and Year 3.
“The biggest benefit that we
received was that our techs
were able to be mobile. They
didn’t have to be tethered to
desktops or laptops to get their
service tickets. Before, they
were always constantly going
back to their desk to get their
list of what was going on [at
their job sites].”
Systems administrator,
education
“It’s a more efficient procedure
to resolve the tickets [with
BMC Helix ITSM]. We can
push more information on how
to auto-solve their request.
There are portals to manuals
for when they don’t know or
remember how to access it,
that helps us to solve more
tickets automatically.”
Director of service management,
insurance
17 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
Forrester recognizes that impacts will vary depending upon the unique
characteristics of every organization. Specific risk considerations include:
› Nature of tickets including complexity, severity, potential for
automation, and overall volume.
› Internal talent, training, and end-user adoption of BMC Helix.
› The average salary and level of service desk employees.
To account for these risks, Forrester adjusted this benefit downward by
10%, yielding a three-year risk-adjusted total PV of $2,243,359.
Agent Productivity: Calculation Table
REF. METRIC CALC. YEAR 1 YEAR 2 YEAR 3
C1 Volume of Tier 0 tickets not deflected R5-A5-A9 100,800 50,400 0
C2 Minutes of labor required to resolve Tier 1 tickets R6 30 30 30
C3 Fully burdened hourly salary for Tier 1 agents R15 $22 $22 $22
C4 Labor hours dedicated to Tier 0 ticket resolution C1*C2/60 50,400 25,200 0
C5 Percent reduction in agent labor per Tier 0 ticket 8% 15% 15%
C6 Reduction in Tier 0 labor hours C4*C5 4,032 3,780 0
C7 Tier 0 labor cost savings C6*C3 $88,704 $83,160 $0
C8 Volume of Tier 1 tickets not resolved via automation R8-B5 240,240 216,480 216,480
C9 Minutes of labor required to resolve Tier 1 tickets R9 45 45 45
C10 Labor hours dedicated to Tier 1 ticket resolution C8*C9/60 180,180 162,360 162,360
C11 Percent reduction in agent labor per Tier 1 ticket 8% 15% 15%
C12 Reduction in Tier 1 labor hours C10*C11 14,414 24,354 24,354
C13 Tier 1 labor cost savings C12*C3 $317,108 $535,788 $535,788
C14 Volume of Tier 2+ tickets R11 48,000 48,000 48,000
C15 Minutes of labor required to resolve Tier 2+ tickets R12 120 120 120
C16 Fully burdened hourly salary for Tier 2 and 3 agents R17 $31 $31 $31
C17 Labor hours dedicated to Tier 2+ ticket resolution C14*C15/60 96,000 96,000 96,000
C18 Percent reduction in agent labor per Tier 2+ ticket 10% 20% 20%
C19 Reduction in Tier 2+ labor hours C17*C18 9,600 19,200 19,200
C20 Tier 2+ labor cost savings C19*C16 $297,600 $595,200 $595,200
Ct Agent productivity C7+C13+C20 $703,412 $1,214,148 $1,130,988
Risk adjustment ↓10%
Ctr Agent productivity (risk-adjusted) $633,071 $1,092,733 $1,017,889
Three-year, risk-adjusted present value of agent productivity: $2,243,359
18 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
37% three-year benefit PV
$4.0 million
End-User Productivity
BMC Helix ITSM, BMC Helix Digital Workplace, and BMC Helix Chatbot
provides users with intuitive self service on any device. Prior to BMC
Helix, users struggled to find the correct information and reach support,
navigating multiple confusing sites, forms, phone numbers, and emails.
Organizations replaced these redundant, confusing processes with
unified ticketing systems on BMC Helix to allow users to easily find
information (such as FAQs or directions), simplify ticket submission, and
save users time by pre-populating information, attaching photos, and
identifying the necessary information upfront. Users can find information,
submit tickets, and monitor status on-the-go — enabling them to submit
tickets faster and with more ease. Since tickets have more detail, fewer
interactions are required between agents and end users to gather
additional information during remediation. Further, agents can engage
users more easily through these tools — reducing the time required for
checking on ticket status and providing follow-up information. And with
the knowledge base, chatbots, and automation, users can often solve
their issues immediately — preventing frustrating downtime while they
wait for a response from IT.
› The healthcare systems administrator described, “[BMC Helix ITSM]
saves time for the end user to submit requests and get responses
because they are entering specific questions related to their issues.
With the legacy submissions, a large majority of tickets we received
would say “‘computer broken’ or ‘can’t do my job’ and the service desk
must then call the user back. It might take a week to get back to the
user, and then that’s a whole week that the user has had their ticket
open and nothing has happened with it.”
› The director of service management for an insurance company shared:
“It’s easier for our users to request something from us. Before using
[BMC Helix Digital Workplace], there were several users who would try
to phone in to IT and try to solve incidents with our agents. Now it is
easier for them to use the application and much easier to reduce the
total request time.”
› An education organization’s associate director of IT service delivery
described the benefit of self service: “Our self-service efforts and self-
help documentation in our knowledge base have greatly empowered
our end users who opt to fix it themselves. For example, end users can
now provision their own voice services, manage voice-related
passwords, and customize their voice service functionality.” The
associate director provided another example, “[One of our multicloud
service management integrations] eliminates the wait time for students
to register their device on our Wi-Fi networks, as it happens
immediately and does not require the processing of a ticket.”
Summarizing the impact: “We've decreased turnaround time and
empowered end users to help themselves to the services they want on
their schedule, not just during our IT operating hours.”
Forrester’s financial evaluation of this benefit assumes the following:
› The service desk supports 40,000 end users that submit an average of
12 tickets per user, per year.
› By deploying clear ticket submission processes, the knowledge base,
and chatbot, end users are able to submit tickets faster, easier, and
with better information upfront. They also save time on reduced back-
and-forth interactions with IT agents during the ticket resolution
End-user productivity: 37% of total benefits
“BMC Helix ITSM saves time
for the end user to submit
requests and get responses
because they are entering
specific questions related to
their issues. With the legacy
submissions, a large majority
of tickets we received would
say ‘computer broken’ or ‘can’t
do my job’ and the service
desk must then call the user
back. It might take a week to
get back to the user, and then
that’s a whole week that the
user has had their ticket open
and nothing has happened
with it.”
Systems administrator,
healthcare
19 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
process. End users save on average 10 minutes per ticket in Year 1,
and 15 minutes per ticket in Year 2 and Year 3.
› End-user positions and salaries vary greatly with an average fully
burdened salary of $36 per hour, near the United States’ average
hourly rate of $36.63 as identified US Bureau of Labor Statistics in its
2018 Employer Costs for Employee Compensation report.18
› Only 50% of the time saved for end users is recaptured by the
business for increased value of productivity.
Forrester recognizes that impacts will vary depending upon the unique
characteristics of every organization. Specific risk considerations include:
› Existing channels for IT support and the complexity and clarity of the
ticket submission process.
› The average number of tickets per end user.
› The breakdown of ticket types, complexity, and severity.
› The average salary per end user.
To account for these risks, Forrester adjusted this benefit downward by
15%, yielding a three-year risk-adjusted total PV of $4,009,497.
End-User Productivity: Calculation Table
REF. METRIC CALC. YEAR 1 YEAR 2 YEAR 3
D1 Number of end users supported by service desk R1 40,000 40,000 40,000
D2 Annual tickets submitted per user R2 12 12 12
D3 Minutes reduced per ticket for submission and communication
10 15 15
D4 Hours saved per end user D2*D3/60 2 3 3
D5 Total hours of time savings for end users D1*D4 80,000 120,000 120,000
D6 Average end user fully burdened hourly salary US Bureau of Labor Statistics, 2018
$36 $36 $36
D7 Amount of hours recaptured for business productivity
50% 50% 50%
Dt End-user productivity D5*D6*D7 $1,440,000 $2,160,000 $2,160,000
Risk adjustment ↓15%
Dtr End-user productivity (risk-adjusted) $1,224,000 $1,836,000 $1,836,000
Three-year, risk-adjusted present value of end-user productivity: $4,009,497
20 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
6%
three-year benefit PV
$631,736
Cost Avoidance Of Legacy On-Premises Solution
Deploying a cloud-based, SaaS version of BMC Helix ITSM in
replacement of a on-premises ITSM deployment offers significant
efficiencies. Systems administration is vastly simplified, with much less
effort required to install, update, and maintain the previous solution.
Rather than investing in hardware, maintenance, and other on-premises
costs like space and heating or cooling, BMC Helix is available on an
organization’s preferred cloud provider — either BMC’s cloud services,
an alternative public provider, or on private cloud or on-premises. As
BMC Helix is containerized, it offers portability to change providers or run
it across a hybrid- or multicloud environment. These cost savings and
efficiencies allowed organizations to more quickly deploy BMC Helix than
prior ITSM solutions, keep it up-to-date with minimal cost, deploy new
modules as desired, and scale flexibly as needed by the organization.
Forrester’s financial evaluation of this benefit assumes the following:
› BMC Helix replaces a legacy on-premises ITSM solution that cost
$150,000 annually and avoids upgrading six servers in Year 1 at an
estimated price of $15,000 each had it not moved to the cloud.
› The organization is able to reallocate one systems administrator from
management of the on-premises environment to other business tasks,
saving their fully loaded burdened salary of $84,500 per year.
Forrester recognizes that impacts will vary depending upon the unique
characteristics of every organization. Specific risk considerations include:
› Prior ITSM solution and related licensing and hardware costs.
› Complexity of the environment and need for systems administration.
To account for these risks, Forrester adjusted this benefit downward by
5%, yielding a three-year risk-adjusted total PV of $631,736.
Cost Avoidance Of Legacy On-Premises Solution: Calculation Table
REF. METRIC CALC. YEAR 1 YEAR 2 YEAR 3
E1 Avoided legacy ITSM solution licensing costs $150,000 $150,000 $150,000
E2 Avoided server purchases 6
E3 Price of server $15,000
E4 Hardware cost avoidance E2*E3 $90,000 $0 $0
E5 Reallocated systems administrators 1 1 1
E6 Fully-burdened systems administrator annual salary $84,500 $84,500 $84,500
E7 Labor cost avoidance E5*E6 $84,500 $84,500 $84,500
Et Cost avoidance of legacy on-premises solution E1+E4+E7 $324,500 $234,500 $234,500
Risk adjustment ↓5%
Etr Cost avoidance of legacy on-premises solution (risk-adjusted)
$308,275 $222,775 $222,775
Three-year, risk-adjusted present value of cost avoidance of legacy on-premises solution: $631,736
Cost avoidance of legacy on-premises solution: 6% of total benefits
“Your cost benefit comes from
being on-demand. You’re not
paying for a tier 3 or 4 system
administrator to keep your
systems up and running as if
you were on-premises. BMC’s
servers are up. They are doing
their own upgrades.”
Systems administrator,
healthcare
21 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
Unquantified Benefits
Interviewees also identified a variety of benefits achieved with BMC Helix
that could not be quantified in this study but were important factors in
determining success. BMC Helix helps these interviewed organizations:
› Improve end-user experience with BMC Helix Chatbot. The solution
provides an easy, conversational way for users to find the information
they need or submit tickets, at any time or on any device.
For one education organization, deploying the BMC Helix
Chatbot is all about user experience, as the assistant director
of service management described: “The immediate initiative for
piloting the BMC Helix Chatbot was user experience. Because
we are so diversified as an [organization], everyone has their
own websites and elements. Our users have to identify what
the issue is, figure out what division of the organization owns
that element, then figure out how to put in a ticket. We want to
move the onus of that issue off the user and move it onto us.”
It resonated with users, as she explained: “We surveyed pilot
chatbot users and found that 88% of respondents enjoyed it
and wanted it as an enterprise service.” She elaborated, “Our
end users don't care that different requests are handled by
different groups. We looked at artificial intelligence to blur the
lines between these divisions by interacting with users and
helping them submit the ticket in the correct way.”
The professional services company is currently expanding its
virtual agent to a new region, and expects to automatically
handle 10% to 15% of IT tickets in the next six months using
BMC Helix Chatbot. Within three to five years, it aims for 100%
of tickets to be created or raised with the virtual agent —
replacing today’s multiple channels of a mobile app, SMS,
BMC Helix Digital Workplace catalog, email, and phone. The
VP of IT sourcing described, “We see the [BMC Helix Chatbot]
becoming the main operating channel for users.” End users
are responding favorably, with a recent survey from one
human resources pilot showing 75% satisfaction.
› Scale and modify the BMC Helix cloud deployment faster, easier,
and cheaper. Upgrading versions and adding modules costs less and
requires much less effort to implement than before, helping stay
current and adapt to changing business needs. Furthermore,
environments can be scaled to accommodate changing user and ticket
volume without the need to purchase hardware (or risk excess capacity
should volume decrease). One interviewee described, “We were able
to increase velocity of deploying and integrating with apps [with BMC
Helix ITSM].” The insurance company that was interviewed for this
study cited significant benefits for major system upgrades: while the
previous upgrade required six months for seven FTEs, upgrading the
BMC Helix environment from 9.0 to 9.1 required less than one week for
one employee — and they believe it will continue to get easier.
› Increase availability, user productivity, and satisfaction with faster
ticket resolution. While this study quantifies reduced ticket
submission and administration labor, faster resolution drives additional
benefits — ending downtime faster, getting users their services to start
work more quickly, and otherwise improving end users’ experience with
IT. For instance, the healthcare company interviewed for this study was
“Our end users don't care that
different requests are handled
by different groups. We looked
at artificial intelligence to blur
the lines between these
divisions by interacting with
users and helping them submit
the ticket in the correct way.”
Assistant director of service
management, education
“We’ve seen a lot of
improvements in the timing of
[BMC Helix ITSM] updates.
Before, we needed about six
months to update from one
version to another. Now, [BMC
Helix ITSM] technicians
update the cloud and it’s only
two conference calls and one
person’s week of work. It has
been really, really easy for us
to update [BMC Helix ITSM]
because we moved to the
cloud.”
Director of service management,
insurance
“We surveyed pilot chatbot
users and found that 88% of
respondents enjoyed it and
wanted it as an enterprise
service.”
Assistant director of service
management, education
22 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
able to slash its mean time to resolve (from beginning to end) by three
full days with BMC Helix ITSM.
Better routing with more complete data helps agents prioritize
critical incidents, resolving them before turning their attention
to lower priority issues. Critical incidents often cause downtime
which plagues end users with frustrating wasted productivity.
BMC Helix helps service desks: 1) lower the percentage of
issues causing downtime; 2) minimize the number of affected
users; and 3) shorten downtime periods.
The time waiting for a service request may cause lost
productivity, especially when that request involves needing a
new application, a machine repair, or some other service that
is essential to the user’s work. Turning these requests around
faster therefore improves productivity and further results in an
improved experience for users.
› Improve field technician responsiveness and productivity.
Technicians can go from one job to the next without returning to their
office site by accessing complete information directly on their mobile
devices. They add photos and updated tickets on-the-go, improving the
company’s data records and downstream productivity. Since tickets
contain more complete data upfront, techs are more likely to arrive at
the job site with all the correct equipment, avoiding wasted trips back
and forth. These factors combine to enable technicians to get to job
sites faster and complete their work with reduced labor, resulting in
heightened user productivity and customer satisfaction. An education
organization interviewed for this study shared that, with BMC Helix
ITSM, “we can dispatch a lot faster.”
› Empower senior help desk staff to focus on higher value-add
tasks. Tier 2, 3, and beyond, gain time to tackle key IT challenges and
work on strategic initiatives proactively — potentially empowering them
to improve data security, develop further automation, or even to identify
new business opportunities.
› Improve service level agreement (SLA) monitoring and
compliance. BMC Helix helps IT teams analyze their service desk
speed and effectiveness, even across multicloud environments and
multiple service providers. While automation and productivity
improvements increase SLA performance, organizations can also more
quickly identify SLA breaches and resolve them quickly. The VP of IT
sourcing for a professional services company shared: “We improved
the monitoring and tracking of deliverables and SLAs. We've improved
SLA consistency; we had pockets of inconsistent delivery where we
only met the SLA between 75% to 80% of the time. In the six months
since deploying [BMC Helix ITSM], our SLAs have crossed 90% due to
better tracking and monitoring as our teams can nail down what
caused an SLA to be breached.” An education organization’s assistant
director of service management shared how BMC Helix ITSM’s
multicloud service management capabilities could improve SLAs, “It
would reduce the likelihood of IT support agents keying errors.”
› Drive productivity savings for other teams. Both BMC Helix ITSM
with multicloud brokering features and BMC Helix Business Workflow
for enterprise service management deployments can help deflect calls
and improve productivity for teams outside of IT. Organizations can
save time for a range of teams such as human resources, facilities,
and catering.
“We improved the monitoring
and tracking of deliverables
and SLAs. We've improved
SLA consistency; we had
pockets of inconsistent
delivery where we only met
the SLA between 75% to 80%
of the time. In the six months
since deploying [BMC Helix
ITSM], our SLAs have crossed
90% due to better tracking and
monitoring as our teams can
nail down what caused an
SLA to be breached.”
VP of IT sourcing,
professional services
23 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
Flexibility, as defined by TEI, represents an investment in additional capacity or capability that could be turned into business benefit for a future additional investment. This provides an organization with the "right" or the ability to engage in future initiatives but not the obligation to do so.
Flexibility
The value of flexibility is clearly unique to each customer, and the
measure of its value varies from organization to organization. There are
multiple scenarios in which a customer might choose to implement BMC
Helix and later realize additional uses and business opportunities.
Interviewees identified potential use cases for the core system including:
› Deploy and move BMC Helix across hybrid- or multicloud
environments. BMC Helix’s containerized architecture allows
organizations to use it on BMC’s cloud, other public clouds, private
cloud, and on-premises environments — and to run it across multiple
environments or shift its location as needed in the future.
› Launch new or joint service offerings powered by multicloud
service management. The customer services director for an IT
services company shared, “We're looking at using [BMC Helix ITSM’s]
multicloud service management capabilities for different types of
service offerings or partnerships.” The organization hopes to increase
sales through joint bids that would not be possible without these
integration capabilities.
› Implement future functionality with ease. BMC’s regular updates
require minimal-to-no labor to deploy, ensuring today’s buyers get
tomorrow’s features and remain competitive. The professional services
VP of IT shared, “We are very excited with the new functionalities
[BMC Helix] provides with each upgrade; we look forward to these
updates to each new part of [BMC Helix] because it helps us transform
our business and continually improve.” An education organization’s
systems administrator shared: “If you can dream it, you can build it on
[BMC Helix]. When you buy their product, there is so much more in
that box than what you think, and people don't take the opportunity to
use what they have.” For the insurance company, ITSM-related apps
could be developed and deployed faster, as the director of service
management described, “We were able to increase velocity of
deploying and integrating with apps [with BMC Helix].”
› Launch additional automation for password resets. Eliminating
agent labor for these tickets could offer massive savings, as the
associate director of IT service delivery for an education organization
shared, “We hope to automate our password resets in the future [with
BMC Helix Chatbot], which would further reduce our tickets by
probably 25%.”
› Utilize BMC Helix Business Workflows for enterprise service
management to handle broader tasks and workflows beyond IT.
The system could be used internally to manage a variety of key tasks
for business units such as facilities, legal, marketing, and fulfillment.
One interviewed organization previously used a spreadsheet for
tracking their food service equipment. They had no idea how much
they spent on equipment or repairs, or even which items might be
under warranty, and found the process to track and manage repairs to
be very time-consuming. They turned to BMC Helix ITSM forms to
reduce this administrative labor and ultimately reduce the cost of food
service equipment and maintenance.
› Utilize BMC Helix ITSM to provide and manage direct customer
support. Customers could submit requests and issues via a modern
BMC Helix Digital Workplace solution, while agents use the BMC Helix
ITSM system to manage and resolve these externally-facing issues.
“If you can dream it, you can
build it on [BMC Helix ITSM].
When you buy their product,
there is so much more in that
box than what you think, and
people don't take the
opportunity to use what they
have.”
Systems administrator,
education
“We are very excited with the
new functionalities [BMC
Helix] provides with each
upgrade; we look forward to
these updates to each new
part of [BMC Helix] because it
helps us transform our
business and continually
improve.”
VP of IT sourcing,
professional services
24 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
This has the potential to improve customer experience and satisfaction
by responding and resolving their requests more quickly.
Multiple interviewees identified that they utilized additional BMC Helix
products integrated into their overall solution. Significant positive impacts
were achieved utilizing these modules and extensions, including:
› Improved management of both hardware and software assets
using BMC Helix CMDB (configuration management database).
Organizations can reduce labor to manage assets. More complete data
with better accuracy can enable better forecasting and ordering and
help companies to reduce excess or redundant configuration assets.
The insurance company interviewed for this study utilized BMC
Helix’s asset management functionality to track and manage
hardware assets. They previously sent spreadsheets back and
forth; but with 300 locations, exorbitant administrative effort
was incurred to share information between site staff and the
central office. BMC Helix software enabled them to move their
asset tracking to a centralized, online-accessible database.
Data was also more accurate and up-to-date, ultimately
helping the company to predict and control hardware costs.
This saved 12 hours per year, per location along with two
hours per week for a central administrator, adding up to over
3,700 hours of labor saved annually.
A healthcare company, interviewed for this study, reduced
labor across a three-person team by 30% by moving hardware
asset management to BMC Helix CMDB. This system replaced
a legacy discovery tool which caused redundancy and
duplicates, as one interviewee described, “The number of
duplicates was outrageous; with over 100,000 hardware
assets, we averaged three duplicates for every item.” BMC
Helix CMDB enabled the company to establish a true source of
information that cleanly integrated with other systems. It was
easier to create and update assets, and ultimately, employees
achieved significant time savings for entry, normalization, and
reconciliation. The company further cut out steps and
improved data quality by replacing spreadsheets.
In the future, the healthcare company plans to utilize the BMC
Helix CMDB data for asset life cycle auditing and software
configuration management. While asset life cycles are
currently tracked manually in a huge spreadsheet, in the
future, this data will enable the company to be more accurate
in ordering. It will drastically reduce the time and effort required
to complete the refresh cycle and audits. Adding software
assets will further improve productivity, accuracy, and help the
company to reduce redundant license and maintenance costs.
› Streamlined audit compliance and reduced the risk of violations.
With BMC Helix, companies can streamline the process of responding
to audits or even addressing violations themselves — reducing IT
labor. Furthermore, interviewees hoped to reduce the number and
scope of audit violations in the first place through better ITIL practices
and a centralized change management via BMC Helix CMDB.
› Prevented issues and reduced labor to resolve change incidents.
Interviewees identified that BMC Helix ITSM’s change management
functionality helped to discover changes as they occurred and identify
ones that may have an adverse impact. As a result, incidents and
“At this point in time, we are not
utilizing asset life cycles in
[BMC Helix ITSM], they are
being tracked in a humongous
spreadsheet. There are
definitely mistakes. Come next
year, we will have a full life
cycle [in BMC Helix ITSM] so
we can refresh timelier, know
the status, know when to
order, and know what to
order.”
Systems administrator,
healthcare
“We didn’t have an impact view
of what changes were being
made in our systems before
[BMC Helix ITSM]. Now that
we track every change we
make in our applications and
hardware, we reduced the
number of incidents by 80%
and the time to resolve these
incidents from 6 to 8 hours
down to about 2 hours.”
Director of service management,
insurance
25 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
outages could be prevented by catching changes and upgrades before
they went into production and affect users. Furthermore, organizations
could provide proactive support when changes were discovered.
Before using BMC Helix for change management, the
insurance company interviewed for this case study identified
that changes would sometimes go into production without
anyone knowing for one or two weeks. BMC Helix ITSM
helped this organization pinpoint users and control releases.
More control using BMC Helix has helped them to reduce the
incidents related to those changes. The company reduced
incidents by 80% from 1,000 to less than 200, and furthermore
slashed mean time to resolve from 6 to 8 hours to only 2 hours
on average.
Flexibility would also be quantified when evaluated as part of a specific
project (described in more detail in Appendix A).
26 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
The table above shows the total of all costs across the areas listed below, as well as present values (PVs) discounted at 10%. Over three years, the composite organization expects risk-adjusted total costs to be a PV of approximately $2.4 million.
19%
three-year cost PV
$459,140
Analysis Of Costs
QUANTIFIED COST DATA AS APPLIED TO THE COMPOSITE
Implementation Labor
Organizations came from a variety of legacy ITSM systems from third-
parties, BMC, or that were built internally, adopting BMC Helix ITSM in
the cloud along with a range of related BMC Helix services. The amount
of labor and overall time varied due to the prior and goal state, along with
the size and complexity of the organization’s ITSM practice. Deployment
was generally fast, with most conducting deployment in phases —
ranging from three months to two years for overall deployment time, with
most Phase 1 implementations between three and nine months and
Phase 2 implementations typically adding two to four additional months.
› For those organizations upgrading from legacy, on-premises versions
of BMC’s ITSM solutions, the upgrade process was fast and easy.
BMC conducted the bulk of the work for the upgrade and migration,
which involved not only upgrading their ITSM software suite, but
migrating all data and core applications from their prior on-premises
installation of a legacy BMC ITSM solution to the cloud.
› For those organizations deploying a new environment or shifting from
an alternative third-party or homegrown ITSM solution, more labor was
naturally required to rebuild systems and convert data. However, these
organizations generally found deployment to be faster and easier than
expected — and with BMC professional services involved, it could be
done quickly and with minimal internal labor.
BMC Helix Chatbot deployments, specifically, took between six and 18
weeks for the initial launch with additional use case development,
training, and promotion continuing post-launch. Interviewees noted that it
was important to focus on a small selection of simple, highly-requested
services, and to grow from there. They found success bringing in cross-
functional employees such as communications teams to craft effective
responses, to test BMC Helix Chatbot, and to promote it broadly.
› The associate director of IT service delivery at an interviewed
education organization explained the agility of their pilot BMC Helix
Chatbot deployment: “We identified 14 frequently requested services
for new users, and worked to identify the intents and the ways they
should be answered. It was a very fast-moving project; we built,
Total Costs
REF. COST INITIAL YEAR 1 YEAR 2 YEAR 3 TOTAL PRESENT VALUE
Ftr Implementation labor $459,140 $0 $0 $0 $459,140 $459,140
Gtr BMC and third-party technology and professional services
$372,857 $399,426 $414,143 $416,260 $1,602,686 $1,390,981
Htr Ongoing labor $0 $314,600 $200,200 $157,300 $672,100 $569,636
Total costs (risk-adjusted) $831,997 $714,026 $614,343 $573,560 $2,733,926 $2,419,757
Implementation labor: 19% of total costs
27 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
Implementation risk is the risk that a proposed investment may deviate from the original or expected requirements, resulting in higher costs than anticipated. The greater the uncertainty, the wider the potential range of outcomes for cost estimates.
trained, and tested our chatbot to launch the pilot for those services in
under two months.”
Forrester’s financial evaluation of this cost assumes the following:
› Implementation of BMC Helix ITSM occurs over six months. Six IT
employees are employed for implementation and creation of the
knowledge base, spending 50% of their time on the project. Most
deployment effort is completed by BMC professional services, as
quantified in the next cost section.
› Implementation of BMC Helix Chatbot takes three months. Two IT
employees dedicate half their time to the project, while three engineers
dedicate their full time to the project during this period. An additional 12
cross-functional employees dedicate 25% of their time during this
period for training, writing communications, testing, project
management, and internal promotion.
› Implementation of BMC Helix ITSM’s multicloud service management
capabilities takes two months for key integrations with two external
services. This requires two fully dedicated engineers and two IT
employees dedicating half their time to the project.
› All 227 service desk agents take part in 4 hours of training on the new
systems.
› The average fully burdened hourly salary for this group of IT
administrators, engineers, and cross-functional employees is estimated
at $50 per hour, equating to approximately $80,000 per year plus 30%
burden rate for benefits and costs of employment.
Forrester recognizes that costs will vary depending upon the unique
characteristics of every organization. Specific risk considerations include:
› The complexity, size, and type of software of the legacy ITSM
deployment that is being upgraded.
› The complexity, size, and specific features of the BMC Helix system
being deployed.
› The level of internal expertise and desired ratio of work being
completed by BMC, third-party professional services, or by internal
employees at the organization.
To account for these risks, Forrester adjusted this cost upward by 10%,
yielding a three-year risk-adjusted total PV of $459,140.
28 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
BMC And Third-Party Technology Licensing And
Professional Services
BMC’s licensing costs will vary depending upon the number of IT users,
the number of end users, ticket volume, the volume and complexity of
cognitive automation, the type and number of services integrated, and
Implementation Labor: Calculation Table
REF. METRIC CALC. INITIAL
F1 IT FTEs for BMC Helix ITSM implementation and knowledge base creation
6
F2 Hours per FTE 50% dedicated for 6 months 520
F3 BMC Helix ITSM implementation hours F1*F2 3,120
F4 IT FTEs for BMC Helix Chatbot implementation 2
F5 Hours per FTE 50% dedicated for 3 months 240
F6 Engineer FTEs for BMC Helix Chatbot implementation 3
F7 Hours per FTE 100% dedicated for 3 months 480
F8 Cross-functional FTEs for BMC Helix Chatbot implementation 12
F9 Hours per FTE 25% dedicated for 3 months 120
F10 BMC Helix Chatbot implementation hours F4*F5+F6*F7+F8*F9 3,360
F11 IT FTEs for multicloud brokering implementation 2
F12 Hours per FTE 50% dedicated for 2 months 160
F13 Engineer FTEs for multicloud brokering implementation 2
F14 Hours per FTE 100% dedicated for 2 months 320
F15 Multicloud brokering implementation hours F11*F12+F13*F14 960
F16 Service desk agents R14+R16 227
F17 Training hours per agent 4
F18 Service desk training hours F16*F17 908
F19 Total implementation hours F3+F10+F15+F18 8,348
F20 Estimated average fully burdened hourly salary for cross-functional implementation FTEs
$80K annual salary + 30% burden rate
$50
Ft Implementation labor F19*F20 $417,400
Risk adjustment ↑10%
Ftr Implementation labor (risk-adjusted) $459,140
Three-year, risk-adjusted present value of implementation labor cost: $459,140
29 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
57%
three-year cost PV
$1.4 million
the specific features (such as a chatbot) deployed. Professional services
costs can range significantly depending upon the deployment needs and
complexity. For organizations leveraging chatbots, additional costs such
as SMS delivery from a third-party provider may also be relevant.
Forrester’s financial evaluation of this cost assumes the following:
› Licensing fees are based on the complexity and size of its service desk
needs for BMC Helix ITSM (with multicloud service management),
BMC Helix Digital Workplace, and BMC Helix Chatbot. These
technology costs are slightly over $300,000 per year.
› Licensing costs are also incurred during the initial six-month
implementation period, equating to approximately $150,000 (half of the
annual spend) in costs before full deployment.
› BMC professional services are employed to lead deployment, incurring
$200,000 in initial costs.
› BMC professional services provide ongoing management, upgrades,
and enhancements, at a rate of approximately 22% of the annual
technology spend for approximately $70,000 per year.
› The BMC Helix Chatbot utilizes an optional third-party service for SMS
communication, incurring an estimated $.01 per SMS sent or received
at an average of 12 messages per ticket deflected by the chatbot.
Forrester recognizes that costs will vary depending upon the unique
characteristics of every organization. Specific risk considerations include:
› The complexity, size, and type of software of the legacy ITSM
deployment that is being upgraded.
› The size (number of service desk users, end users, tickets,
integrations, cognitive automation calls) of the BMC Helix environment
and the particular features that are deployed.
› Whether work is conducted by BMC, third-party professional services,
or by internal employees at the company.
To account for these risks, Forrester adjusted this cost upward by 5%,
yielding a three-year risk-adjusted total PV of $1,390,981.
BMC And Third-Party Technology Licensing And Professional Services: Calculation Table
REF. METRIC CALC. INITIAL YEAR 1 YEAR 2 YEAR 3
G1 BMC technology costs $155,102 $310,390 $320,390 $320,390
G2 BMC professional services G1*22% (excluding initial)
$200,000 $68,000 $70,000 $70,000
G3 BMC costs G1+G2 $355,102 $378,390 $390,390 $390,390
G4 Third-party chatbot communication technology for SMS
A9*12*$.01 $0 $2,016 $4,032 $6,048
Gt BMC and third-party technology and professional services
G3+G4 $355,102 $380,406 $394,422 $396,438
Risk adjustment ↑5%
Gtr BMC and third-party technology and professional services (risk-adjusted)
$372,857 $399,426 $414,143 $416,260
Three-year, risk-adjusted present value of BMC and third-party technology and professional services: $1,390,981
BMC and third-party technology licensing and
professional services: 6% of total costs
30 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
24%
three-year cost PV
$569,636
Ongoing Labor
Organizations also incur ongoing costs to manage their BMC Helix
environment, train service agents to use the new system, develop and
improve knowledge base articles, automation, and integration, train the
chatbot, and continually expand use cases.
Forrester’s financial evaluation of this cost assumes the following:
› BMC’s professional services, as calculated in the previous benefit,
provide significant upgrade, customization, and support services on an
ongoing basis — helping keep ongoing labor to a minimum.
› BMC Helix is supported by one full-time systems administrator.
› The organization continues to improve and develop new knowledge
base articles, dedicating 50% of 1 FTE in Year 1, 25% of 1 FTE in Year
2, and one-eighth of 1 FTE in Year 3.
› The organization expands and improves the chatbot, dedicating 1 FTE
in Year 1, 50% of 1 FTE in Year 2, and 25% of 1 FTE in Year 3.
› The organization launches a third multicloud service management
integration and automation, devoting 25% of 1 FTE during Year 1.
› The average fully burdened hourly salary for IT and engineer FTEs is
estimated at $50 (approximately $80,000 per year burdened at 30%).
Forrester recognizes that costs will vary depending upon the unique
characteristics of every organization. Specific risk considerations include:
› The particular improvements needed to be made for the knowledge
base, chatbot, automation, and multicloud service management.
› The complexity of improvements that need to be made.
› Internal expertise and desired ratio of work completed by BMC, third-
party professional services, or internal employees at the organization.
To account for these risks, Forrester adjusted this cost upward by 10%,
yielding a three-year risk-adjusted total PV of $569,636.
Ongoing Labor: Calculation Table
REF. METRIC CALC. INITIAL YEAR 1 YEAR 2 YEAR 3
H1 Systems administration hours 2,080 2,080 2,080
H2 Knowledge base improvement hours 1,040 520 260
H3 Chatbot improvement hours 2,080 1,040 520
H4 Automation and MCSM improvement hours 520 0 0
H5 Ongoing labor hours H1+H2+H3+H4 5,720 3,640 2,860
H6 Estimated average hourly salary F20 $50 $50 $50
Ht Ongoing labor H5*H6 $0 $286,000 $182,000 $143,000
Risk adjustment ↑10%
Htr Ongoing labor (risk-adjusted) $0 $314,600 $200,200 $157,300
Three-year, risk-adjusted present value of ongoing labor costs: $569,636
Ongoing labor: 24% of total costs
31 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the composite organization's investment. Forrester assumes a yearly discount rate of 10% for this analysis.
Financial Summary
CONSOLIDATED THREE-YEAR RISK-ADJUSTED METRICS
Cash Flow Chart (Risk-Adjusted)
-$2.0 M
$2.0 M
$4.0 M
$6.0 M
$8.0 M
$10.0 M
$12.0 M
Initial Year 1 Year 2 Year 3
Cashflows
Total costs
Total benefits
Cumulative net benefits
These risk-adjusted ROI,
NPV, and payback period
values are determined by
applying risk-adjustment
factors to the unadjusted
results in each Benefit and
Cost section.
Cash Flow Table (Risk-Adjusted)
INITIAL YEAR 1 YEAR 2 YEAR 3 TOTAL
PRESENT VALUE
Total costs ($831,997) ($714,026) ($614,343) ($573,560) ($2,733,926) ($2,419,757)
Total benefits $0 $3,146,502 $4,956,740 $5,353,136 $13,456,378 $10,978,827
Net benefits ($831,997) $2,432,476 $4,342,397 $4,779,576 $10,722,452 $8,559,070
ROI 354%
Payback period <6 months
32 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
BMC Helix: Overview
The following information is provided directly by BMC. Forrester has not validated any claims and does not
endorse BMC or its offerings.
BMC Helix: Cognitive Service Management On Your Cloud Of Choice
Every industry is going through a major transformation where they are under competitive pressure to provide
service across multicloud, multidevice internet of things (IoT), and multichannel environments at the highest
efficiency, speed, and lowest cost. Service management is being disrupted by technologies like artificial
intelligence (AI) and machine learning (ML), chatbots, and virtual agents to help businesses manage these
increasingly complex landscapes. Hence, business leaders who are highly cognizant of this wave are embracing
and applying cognitive technologies to solve real business challenges and get a competitive edge in the market.
BMC Helix embeds AI, machine learning, and automation throughout the service portfolio to increase the
accuracy of updates and resolutions, leading to greater overall service and improved customer satisfaction. The
powerful mix of cognitive technologies and automation empowers service desks to improve accuracy and
satisfaction even as IoT, multicloud, and other trends are expected to increase ticket volumes in most enterprises
over time.
Deliver everything-as-a-service with intelligent, omnichannel experiences in the cloud.
› Cognitive capabilities embedded across the service management portfolio improve the accuracy and speed of
service ticket resolution.
› Delivery via containers provides a choice of clouds, as well as flexibility and scalability of operations.
› Chatbots and virtual agents help deflect Tier 0/1/2 tickets to lower support costs.
› Powered by BMC Helix Innovation Suite, our cloud-native application development platform.
Deliver predictive ITSM across multicloud environments.
BMC Helix ITSM fuels your IT transformation with intelligent, people-centric user experiences that help you work
smarter. It is delivered in the cloud, on-premises, or in hybrid environments for unprecedented choice. BMC Helix
ITSM has everything you need to deliver predictive, industry leading service management.
› Modern persona-based UX optimized across devices.
› Comprehensive and intuitive change management capabilities.
› Multicloud service management for a seamless service experience across multicloud environments.
› Cognitive automation capabilities that transform the agent experience.
› Powerful, stunning reports and visualizations allowing data driven insights.
› Container deployment to run in any type of public cloud.
Deliver intelligent, omnichannel self-service experiences.
BMC Helix Digital Workplace provides intuitive and intelligent consumer-like experiences to help organizations
step into the future of work. BMC Helix Digital Workplace establishes modern self service for the digital
workplace.
33 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
› Intuitive omnichannel conversational experiences for end users beyond web to Slackbot, Chatbot, SMS, and
Skype.
› Consumer-like shopping experience: Simple interface provides a familiar way to help employees get what they
need.
› Single service catalog across your organization: Eliminate catalog sprawl by presenting services from multiple
business units including IT, HR, and facilities in a single catalog.
› Workflow and automation: Decrease Tier 1 ticket costs by deflecting routine help desk calls.
› Powerful connectors: Easy to integrate into leading industry services and platforms like Microsoft Office 365,
Microsoft Azure, Atlassian JIRA, Amazon Web Services (AWS), and more.
Deliver fast and accurate responses to users.
BMC Helix Chatbot brings the cognitive enterprise to life with intelligent, omnichannel experiences that lets users
find and request services through a conversational and personalized interface.
› Consumer-like experience: BMC Helix Chatbot is tailored to platforms and devices employees are already
using.
› Service delivery: BMC Helix Chatbot can call and execute custom processes and workflows created in the
platform.
› Skype for Business, Office 365: Communicate with BMC Helix Chatbot through a familiar contact channel.
› SMS messaging: Use BMC Helix Chatbot from your mobile device without needing to access an additional
app.
› Web chat: View the full status of your requests and rate knowledge that BMC Helix Chatbot has provided.
› Available with BMC Helix Digital Workplace and BMC Helix Business Workflows.
For more information, visit bmc.com/helix.
34 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
Appendix A: Total Economic Impact
Total Economic Impact is a methodology developed by Forrester
Research that enhances a company’s technology decision-making
processes and assists vendors in communicating the value proposition
of their products and services to clients. The TEI methodology helps
companies demonstrate, justify, and realize the tangible value of IT
initiatives to both senior management and other key business
stakeholders.
Total Economic Impact Approach
Benefits represent the value delivered to the business by the
product. The TEI methodology places equal weight on the
measure of benefits and the measure of costs, allowing for a
full examination of the effect of the technology on the entire
organization.
Costs consider all expenses necessary to deliver the
proposed value, or benefits, of the product. The cost category
within TEI captures incremental costs over the existing
environment for ongoing costs associated with the solution.
Flexibility represents the strategic value that can be
obtained for some future additional investment building on
top of the initial investment already made. Having the ability
to capture that benefit has a PV that can be estimated.
Risks measure the uncertainty of benefit and cost estimates
given: 1) the likelihood that estimates will meet original
projections and 2) the likelihood that estimates will be
tracked over time. TEI risk factors are based on “triangular
distribution.”
The initial investment column contains costs incurred at “time 0” or at the
beginning of Year 1 that are not discounted. All other cash flows are discounted
using the discount rate at the end of the year. PV calculations are calculated for
each total cost and benefit estimate. NPV calculations in the summary tables are
the sum of the initial investment and the discounted cash flows in each year.
Sums and present value calculations of the Total Benefits, Total Costs, and
Cash Flow tables may not exactly add up, as some rounding may occur.
Present value (PV)
The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PV of costs and benefits feed into the total NPV of cash flows.
Net present value (NPV)
The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made, unless other projects have higher NPVs.
Return on investment (ROI)
A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs.
Discount rate
The interest rate used in cash flow analysis to take into account the time value of money. Organizations typically use discount rates between 8% and 16%.
Payback period
The breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs) equal initial investment or cost.
35 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot
Appendix B: Endnotes
1 Source: “Adoption Profile: Private Cloud In North America, Q2 2018,” Forrester Research, Inc., April 19, 2018.
2 Source: Ibid.
3 Source: “Top 10 Facts Every Tech Leader Should Know About Hybrid Cloud,” Forrester Research, Inc., April
25, 2018.
4 Source: “Benchmark Your Enterprise Cloud Adoption,” Forrester Research, Inc., January 3, 2017.
5 Source: “A Clear Multicloud Strategy Delivers Business Value,” Forrester Research, Inc., April 18, 2018.
6 Source: “Adoption Profile: Private Cloud In North America, Q2 2018,” Forrester Research, Inc., April 19, 2018.
7 Source: “How To Secure Funding For Your SaaS Migration,” Forrester Research, Inc., October 11, 2017.
8 Source: “Predictions 2019: Cloud Computing,” Forrester Research, Inc., November 8, 2018.
9 Source: “The State Of Cloud Migration, Portability, And Interoperability, Q4 2017,” Forrester Research, Inc.,
January 5, 2018.”
10 Source: “Brief: Why The CIO Must Care About Containers,” Forrester Research, Inc., May 10, 2016.
11 Source: “Navigate The Kubernetes Ecosystem,” Forrester Research, Inc., June 23, 2017 and “Vendor
Landscape: Container Solutions For Cloud-Native Applications,” Forrester Research, Inc., March 16, 2017.
12 Source: “The State Of Cloud Migration, Portability, And Interoperability, Q4 2017,” Forrester Research, Inc.,
January 5, 2018.”
13 Source: “Adoption Profile: Public Cloud In North America, Q2 2018,” Forrester Research, Inc., April 19, 2018.
14 Source: “Shift To Enterprise Service Management To Improve The Employee Experience,” Forrester
Research, Inc., February 12, 2018.
15 Source: “The Changing Landscape Of IT Incident And Crisis Management,” Forrester Research, Inc., February
20, 2018.
16 Source: “Digital Transformation Demands A New Automation Framework,” Forrester Research, Inc., July 9,
2018.
17 Source: “ESM: Elevate Service Value Beyond The Technology Organization,” Forrester Research, Inc., August
2, 2017.
18 Source: “Employer Costs for Employee Compensation – September 2018,” Bureau of Labor Statistics, U.S. Department of Labor, December 14, 2018.