Organizations today recognize the need to change their IT service delivery models by centralizing core enterprise delivery services, integrating IT service management (ITSM) software platforms, and standardizing their IT processes on ITILv3. However, more often than not, “paralysis by analysis” makes the task of making IT service delivery more cost-effective and operationally efficient is perceived as too overwhelming, risky, and costly.
The session will focus on the benefits of leading out and going through the enterprisewide ITSM transformation. It will also cover the approach and steps you’ll need to take to control the costs and risks and achieve the goals you establish for your corporation.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
‒ Four (4) years with Deloitte on the HP Alliance team
‒ Prior to Deloitte, many years in the computer field with HP (Field and
Factory), CSC (NASA Johnson Space Center/JSC), IBM (Federal Systems
Division, JSC), University of Houston, and University of Southern Mississippi.
‒ Master of Computing Sciences, Texas A&M University
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Table of Contents
Executive Summary
Common Current State of ITSM Platform
How did we get here?
What does our current state look like?
Why should we change?
Strategic Roadmap – Approach to ITSM Transformation
How do we change?
What will guide us?
Data Collection Interviews
Current State Review & Baseline
Target State Development
Gap Analysis
Business Case
Transition Planning
Critical Success Factors (CSF)
Key Performance Indicators (KPI)
Call to Action
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Executive Summary
IT Service Management (ITSM) processes, tools, and organizations are most often built
over time as discrete reactions to immediate business/IT needs
Typically, this evolution over time results in an IT function with very low efficacy/efficiency
and inordinately high costs when compared to value of services rendered to the BUs
Typically, corporate IT departments spend 70% of their time/resources on resolving issues
and 30% on innovation for BUs
Inertia sets in and IT departments “fear” the risks of change, allowing “rigor mortis” to set in
and continue year after year at a very high cost
Though investment costs in process/organization reengineering and state-of-the-
art/integrated ITSM management tools are generally substantial, they are less costly than
the status quo forecasted over time
And, the ROI and short breakeven time until a positive cash flow is reached are compelling
Using a rigorous, proven, planning and implementation methodology with integrated ITSM
management tools and a strong program/project governance office; corporations can follow
an implementation Roadmap that leads them to many new quality improvements and
financial/efficiency benefits
Critical Success Factors (CSF) and Key Performance Indicators (KPI) must be thoroughly
vetted before the ITSM Transformation begins and rigorously adhered to during the
transformation journey
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Custom IT Processes are defined on demand over time
ITSM Tools are selected on demand over time without strategic/integrated plan
Each functional area is normally more mature than the whole
Some areas perform at a high maturity level
The lack of cross organizational governance creates process gaps and
communication loop-holes
Technology integration is often difficult across organizational boundaries with
differing views of importance
Budget constraints often exist across organizational boundaries
While some cross organizational integration of IT process and ITSM technology
exists, It is usually targeting a specific sub-process and while effective can be less
than efficient
Common Current State of ITSM PlatformHow did we get here?
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Manual Re-entry
of Purchase orders
Employee data
(a view in the
PS Database)
Problem Management
(Root Cause)Patches/Inventory
(Workstations and
Windows Servers)
Patch information
Inventory/discovery
(MS SMS)
Incident Managment
Incidents
(Magic 7.5.3)
Legend
Manual update
Automated update
*LUNs by server
**Databases by server
***Tool list inconclusive
Silo
#3
Silo
#2
Facets updates
(Spreadsheet)
Change Management
(Software)
ERP
(Purchasing, HR)
Purchase orders,
Employees
(PeopleSoft)
Change
Management
(Infrastructure/
TICM)
Changes
(Magic)
Silo
#1
Occasional
exports
Last logon
Silo
#4
Silo
#5
IT Asset
Management
No automated sharing of informationMinimal automated sharing of information
Client
Updates
via SMS
Configuration Management
Problem Management
Fault/Event Management
(Windows/Network)
Release Management
Change Management
(Technical Infrastructure)
Configuration Management (SCM)
Change Management (SW)
Release Management
Configuration Management
Problem Management
Fault/Event Management
(AIX, HP/UX, Mainframe)
Service Desk
Incident Management
Problem Management
SR Lifecycle
(eForms/Outlook)
Server
configurations
(Spreadsheets)Master Server List
(Access DB)
Hotfixes
(Access DB)
Windows and Network
Server assets
(Spreadsheet)
Storage Management*
Limited Storage
Information**
Source Code (Windows, AIX)
Amisys DINs (HP/UX)
(Harvest)
Definitive Software Library
Source Code (Mainframe)
(SCLM)
AIX, HP/UX, Mainframe
Mainframe
Summary
(Doc)
HP/UX Server Overview
AIX Server List
(Spreadsheets)
Cro
ss d
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art
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fun
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Database
Management**
Problem
Management
(Root Cause)
Database
Management**
Problem
Management
(Root Cause)
Fault/Event Management***
Job Scheduling
Batch jobs
(TWS)
Backup Management
Backups
(TSM)
Storage
(Director)
Asset Management
Peregrine
AssetCenter
Purchasing
Module
User
ListAssets
Fault/Event Management***
Network
(eHealth)
Servers
(NetIQ)
Web
(Patrol)
Servers
(Nettuitive)
MF
(IBM)
AIX
(Patrol)
HP/UX
(Glance+)
Source Code (Web etc)
(Visual Source Safe)
Standard Problems &
Resolutions
(Magic 7.5.3)
Definitive
Software
Library
Common Current State of ITSM PlatformWhat does our current state look like?
Non-Integrated
Silo’ed ITSM Mgmt Systems
No Single Pane of Glass Mgmt
Manual Operations
Multiple, Non-Linked ITSM Data Repositories
No Event Correlation (Monitoring)
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IT Organization Leadership
ApplicationDev
Network MgtServer
MgtTechnical Support
MainframeMgt
Service Desk
Operations Mgt
IT Organization Leadership
ApplicationDev
Network MgtServer
MgtTechnical Support
MainframeMgt
Service Desk
Operations Mgt
i.e. Lab Support, Admissions, Discharges,
Transfers, Medical Records Mgt etc.
Services now cross many technologies
ITSM unlocks the black box of IT by making the connection between the assets (people, processes, and tools) embedded in different technology silos with the services that the
business values - IT morphs from a black-box cost center into an internal service provider
that is customer-centric rather than technology-centric
IT Cannot Continue To Manage By
Technology Silos In A World Where
Business Services Cut Across Those
Silos Without Incurring Higher Costs
And Lower Service Quality
Common Current State of ITSM PlatformWhy should we change?
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Strategic Roadmap – Approach to ITSM Transformation How do we change?
Strategy Outcome(s)
Manage IT as a portfolio of IT service investments • Direct alignment to the business• Greatly higher service quality• Transparency of IT costs in business terms
Operate IT with standard ITSM platform, infrastructure and tools, and processes to reduce variation in delivery of IT services
• Reduced service outages• Greatly lowered IT delivery costs• Greatly increased customer satisfaction
Tie resource capacity directly to business demand that consumes those services
• Reduced unplanned IT expenditures• Greatly higher service quality• Can articulate IT unit costs in business terms• Can model cost impacts for future business plans
and decisions
The impacts of this shift and
how to deal with it are
encapsulated within IT
Service Management and
ITIL Service Strategy
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Strategic Roadmap – Approach to ITSM TransformationWhat will guide us?
Kick-off Meeting
Overview and Scoping
Workshop
Data Collection
Interviews
Build Assessment
Tool with Data
Develop Current State
Report
Startup &
Assessment
Conduct Target State
Workshops
Identify Desired
Maturity Levels
Build Target Operating
Model
Build Target Tool
Architecture
Develop Target
Process Architecture
Perform Gap Analysis
Target State &
Gap Analysis
Develop Transition
Strategy
Develop
Implementation Plan
Develop Business
Case
Develop and Present
Executive Summary
Transition Plan &
Roadmap
Assemble Team
Identify Key Stakeholders
Develop Project Management Plan
Project Management
Strategy Design Transition Operate Improve
Finalize Project Schedule
Finalize Scope
Status Reporting
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Strategic Roadmap – Approach to ITSM TransformationData Collection Interviews
– Global Operations (e.g.; Contract
Processing/Service Delivery, Client Svcs,
Hosting Eng., Network Operations and
Operational Service Management)
– Engineering (e.g.; Product Dev., OSS Eng.,
Portal Dev., and Custom Eng.)
– Marketing / Product Mgmt/ Supply Chain
– Change Management
– Configuration Management
– Fault/Event Management
– Incident Management
– IT Operations Management
– Problem Management
– Service Level Management
– And so forth…
– Network Operations Center(s)
– Data Centers
– Disaster Recovery Centers
– ITSM Tools – existing and planned
– Data Center Operations
– Element Management
– Configuration Management
– Span of coverage across existing IT
processes
– Level of tools integration across IT
processes
– Level of tools database integration
across IT processes
– Single pane of glass
span of control
No Stone Left Unturned via Surveys, Interviews, and Legacy Documentation!
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Manual Re-entry
of Purchase orders
Employee data
(a view in the
PS Database)
Problem Management
(Root Cause)Patches/Inventory
(Workstations and
Windows Servers)
Patch information
Inventory/discovery
(MS SMS)
Incident Managment
Incidents
(Magic 7.5.3)
Legend
Manual update
Automated update
*LUNs by server
**Databases by server
***Tool list inconclusive
Silo
#3
Silo
#2
Facets updates
(Spreadsheet)
Change Management
(Software)
ERP
(Purchasing, HR)
Purchase orders,
Employees
(PeopleSoft)
Change
Management
(Infrastructure/
TICM)
Changes
(Magic)
Silo
#1
Occasional
exports
Last logon
Silo
#4
Silo
#5
IT Asset
Management
No automated sharing of informationMinimal automated sharing of information
Client
Updates
via SMS
Configuration Management
Problem Management
Fault/Event Management
(Windows/Network)
Release Management
Change Management
(Technical Infrastructure)
Configuration Management (SCM)
Change Management (SW)
Release Management
Configuration Management
Problem Management
Fault/Event Management
(AIX, HP/UX, Mainframe)
Service Desk
Incident Management
Problem Management
SR Lifecycle
(eForms/Outlook)
Server
configurations
(Spreadsheets)Master Server List
(Access DB)
Hotfixes
(Access DB)
Windows and Network
Server assets
(Spreadsheet)
Storage Management*
Limited Storage
Information**
Source Code (Windows, AIX)
Amisys DINs (HP/UX)
(Harvest)
Definitive Software Library
Source Code (Mainframe)
(SCLM)
AIX, HP/UX, Mainframe
Mainframe
Summary
(Doc)
HP/UX Server Overview
AIX Server List
(Spreadsheets)
Cro
ss d
ep
art
me
nt
fun
ctio
ns
Database
Management**
Problem
Management
(Root Cause)
Database
Management**
Problem
Management
(Root Cause)
Fault/Event Management***
Job Scheduling
Batch jobs
(TWS)
Backup Management
Backups
(TSM)
Storage
(Director)
Asset Management
Peregrine
AssetCenter
Purchasing
Module
User
ListAssets
Fault/Event Management***
Network
(eHealth)
Servers
(NetIQ)
Web
(Patrol)
Servers
(Nettuitive)
MF
(IBM)
AIX
(Patrol)
HP/UX
(Glance+)
Source Code (Web etc)
(Visual Source Safe)
Standard Problems &
Resolutions
(Magic 7.5.3)
Definitive
Software
Library
Strategic Roadmap – Approach to ITSM TransformationCurrent State Review & Baseline
Costly/Unleveraged ITSM Platform – People, Process, and Technology
Technology
Process
Organization
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Strategic Roadmap – Approach to ITSM TransformationTarget State Development
IT organization aligned with definition and execution of IT processes
Standardize on an industry framework for IT
processes – e.g. ITILv3, CoBIT, ISO2000, etcetera
Processes identity core workflow and required policies
and outline the level of “localization” appropriate for
specific IT groups
The formalized definition of customer facing Service
Level Agreements and of internally-facing Operational
Level Agreements between the COEs and Business
Unit IT groups should be a near term priority of the
Governance Office.
This formalization helps ensure communication
between groups, enforces process compliance and
helps mature the organization to a process-based
culture.
By driving process control through a single office,
constant process improvement can be formalized,
measured and become a process unto itself.
Strategic Roadmap – Approach to ITSM TransformationTarget State Development
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Strategic Roadmap – Approach to ITSM TransformationGap Analysis
Thread 2
Thread 3
Thread 1
Gaps are identified by analyzing the target state against the current state, and prioritized based on stakeholder feedback
A list of projects is developed, aimed at filling the identified gaps. A project may address one or more gaps.
Projects are logically grouped into threads. Threads are a set of projects that span multiple phases, and specifically address a subset of operational functions (e.g. the Fault and Event Management Thread)
Projects are prioritized and sequenced into phases based on the urgency of the gaps they address, their feasibility, the overarching ITSM principles, and Deloitte experience.
The following diagram summarizes this approach:
Project
Project Project
Project Project Project
Project Project Project
Project Project
Project
Project Project
Project
Project Project Project
Phase 1 Phase 2 Phase 3
Identified gaps become projects in threads transcending multiple phases
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Cash Flow Projections
Key Cost Drivers include: Lack of visibility and control of IT hardware/software assets causing labor intensive
activity to determine which servers’ software needs to be updated
Explosive growth in Data Center servers leading to added system admin staff required to manually distribute updates/patches to additional servers
Risk of non-compliance due to immature/non-standard IT processes and lack of automated audit trail as software patches are applied, ultimately leading to potential regulatory violations and monetary fines
Executive vision to improve service quality with no server automation tools resulting in added staff/labor costs to attempt to get incremental quality gains
Key Benefit Drivers include: Self-funding with short breakeven period via OPEX/labor savings
Reduction of costly rework caused by error-prone manual distribution/installation/configuration of software releases/patches/updates
Improved compliance reporting completeness and timeliness with less labor effort due to server tools’ automated audit trail capabilities
Improved stability and availability of business services due to software fixes being applied in an accurate and timely manner
Projected InvestmentsCost/ Benefit Drivers
$(70,000)
$(1,000,000)
-
-
-
Server Hardware
Software
Consulting/ Labor Costs
Training & Communications
Maintenance
Total Investment $(1,070,000)
-
-
-
-
-
-
-
$(234,000)
$(1,146,736) $234,000)
$(1,146,736)
$(1,000,000)
$(70,000)
-
$(702,000)
$(2,918,736)
Capital One-TimeTotal
Recurring¹Total
This Business Case is predicated on one segment of ITSM, i.e., Data Center Automation (DCA). This is a very labor intensive segment of IT. The cost reduction related to DCA activities is representative of savings in other ITSM segments such as Event, Configuration, Incident/Event/Problem/Knowledge, and Change Management.
Corporate Executives in this example have a mid-low propensity for work force reduction through means other than attrition.
1000 Unix and 1000 Windows Servers are managed with 5% annual growth rate
Amortization period for DCA tool software license purchases is three (3) years
Benefits realized at 50% year 1, 100% in years 2 and 3
Annual maintenance costs are 20% of hw assets and 22% of DCA sw assets
Number of system administrators on IT staff is 150 with a servers:sysadmin ratio of 14:1 before DCA automation software is implemented
Annual system administrators hourly utilization rate is 80%, i.e., 249,600 hours for 150 system administrators for one (1) year
Med Risk High RiskMed-High RiskLow-Med RiskLow Risk
Key Assumptions
Strategic Roadmap - Approach to ITSM TransformationBusiness Case
Risk Factors Legend
-
$(1,146,736)²
2010 2011 2012
$3.88M
$9.26M$9.75M
¹Annual cost totaled over 3 years
²Includes Process, Organization, & Tools
Data Center Automation (DCA) is just one component of the ITSM Platform
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Strategic Roadmap - Approach to ITSM TransformationTransition Planning
Process Assessment
Gap analysis
Target State
Processes
Procedures
Work Instructions
Forms & Reports
Use-case Testing
Process Training
Documentation
Process Evaluation
Process Execution
Process Monitoring
Process
Maintenance
Process Audits
Metrics Reports
Improvement
Recommendations
Organization
Assessment
Gap analysis
Target operating
model
Role Descriptions
Responsibilities
Training Plans
Awareness
Campaigns
Communications
Strategies
Training
Ongoing Training
Workforce
Management
Skills Retention
Lessons Learned
Technology
Plan Technology
Define target
architectures
Gap analysis
Functional
Requirements
Technical
requirements
Technical designs
Configure Tools
Test Solutions
Tool Training
Tool Operation,
Administration &
Maintenance
Tool
Enhancements
Automation
Measurements &
Reports
Program
Management
PM Plan
Implementation
Roadmap
Business Case
Service Metrics
Process Metrics
Operational Metrics
Solution Warranty
Performance
Reporting
Issue Resolution
Risk Mitigation
Performance
Reports
Solution Validation
Policy Enforcement
Status Reporting
Prioritize
Improvement
Recommendations
Strategy Design Transition Operate Improve
Plan using a proven end-to-end methodology for the delivery framework
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Fault/Event Thread HP Operations
Implementation
Services Management
Thread HP SM Change Management
(VMAC process for Facilities
Management
Global Incident Process
Design (start)
CMDB Thread uCMDB Design (start)
Operations Management
Thread Server Management Pilot
(ongoing)
Backup Management Pilot
(ongoing)
Fully Integrated & Managed
Operations: Process improvement in place for Incident,
Problem, Change, Configuration, and Fault
Management
Measured at individual and team levels
On-going procedures enhancement and
knowledge transfer
Advanced correlation framework,
continuously updated and improved
Fault/Event Thread Event Automation
Facilities Monitoring and
Integration
Backup Monitoring and
Integration
Security Monitoring and
Integration
Services Management Thread HP SM Incident Management
HP SM Change Management
Enhancements
Global Problem Process Design
Global Service Level
Management (SLM) Process
Design
Notification Engine
CMDB Thread uCMDB Implementation
Operations Management
Thread Server Management
Implementation
Patch Management
Implementation
Fault/Event Thread Correlation and Business
Impact
Utility Computing Monitoring
and Integration
Services Management
Thread Provisioning
SLM Implementation
CMDB Thread uCMDB Integration
Operations Management
Thread Network Provisioning
Storage Resource
Management
Keep your eye on the target through planned progress at each phase
Phase 1 Phase 2 Target StatePhase 3
Strategic Roadmap - Approach to ITSM TransformationTransition Planning
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Strategic Roadmap - Approach to ITSM TransformationTransition Planning
This is not staff augmentation, but rather enablement of the solution
Define a charter to enable a client to reach a level of process control and overall IT Service
Management capability
Implement a process metrics framework
Provide guidance to Client Staff to achieve these goals through:
‒ Metrics capture
‒ Metrics reporting
‒ Mentoring on execution
‒ Counsel on process honing
Utilize objective criteria for measuring the client’s progress over time (on-going assessment)
Enable awareness at all layers of the organization to gain support and funding
A Center of Excellence (COE) is an actual or virtual organizational structure that adds
an improvement layer to the operational structures of a logically related group of
defined and managed processes, thus fostering continuous process improvement,
performance gains, increased knowledge sharing and cross-platform consistency. Our
solutions approach to COE is:
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Strategic Roadmap - Approach to ITSM TransformationTransition Planning
HP Operations Center
HP Network Management Center
HP System Insight Manager
Event Console
HP Performance Mgr/Agent
HP GlancePlus
Business Availability Center (BAC)
Capacity/Availability Analysis
Service Management Center
Decision Center
Service Management
HP Quality Center
HP Performance Center
HP Application Security Center
HP Data Center Automation Center
HP Client Automation Center
Testing and Provisioning CoE
HP SOA Center
BAC Center
Portal Management
Universal CMDB (UCMDB)
Discovery & Dependency Mapping (DDM)
Asset Management
Configuration Management System (CMS)
Select Tools for
Target State ITSM
Platform Logical
Architecture
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Demand Mgt.
HP PPM
Business
Outcomes
(desired /
realized)
Value
Users
Strategy
Mgt.
Service Strategy
Financial Mgt
HP PPM
HP Asset Mgr
Service Portfolio
Mgt.
HP PPM
Access
Mgt.
Request
Fulfillment
HP Svc Mgr
Incident Mgt
HP Svc Mgr
Event Mgt.
HP Ops Mgr
HP BAC
HP NNM
Operational
Activities
Problem
Mgt.
HP Svc Mgr
Service
Evaluation
Release &
Deployment.
HP DCA Center
HP Client Automation
Release Control (RC)
Validation & Testing
HP QC/PC
HP Application
Security Center
Transition
Planning&Support
HP Svc Mgr
uCMDB
Asset/Config. Mgt
HP uCMDB/DDMae
HP Asset Mgr/DDMi
(Federated)
Knowledge Mgt.
HP Svc Mgr
Change Mgt.
HP Svc Mgr
Bus. Impact Anal.
IT Perf. Analytics
Supplier
Mgt
HP Asset Mgr
Availability
Mgt.
Capacity
Mgt.
IT Service
Continuity
Mgt.
Information
Security
Mgt.
Service
Level Mgt.
HP Svc Mgr
Svc Catalog
Mgt
HP Svc Mgr
Service
MeasurementService
ReportingService
Improvement
Service Transition
Service Operation
Continual Service Improvement
Service DesignCustomer/
Business
Projects
Business IT Tie-in Tools to
ITILv3 Processes
Strategic Roadmap - Approach to ITSM TransformationTransition Planning