How to Drive Business Value with Capacity Management · Translate business requirements into IT requirements Map demand to Supply Initiate recl . strat or procurement strategy Present

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How to Drive Business Value with Capacity Management18 July 2017


Your Presenter

Jim Smith


Executive Buy-in

Benefitsrealization

AssessmentRoles and

responsibilities

StrategyToolset

exploitation

Charge/Show

Back model

Demand Management

Reporting

The Building Blocks


Maturity Level

Toolset Exploitation

Balance Strategy & Operations

GAP Analysis

Roadmap

Cost Avoidance & Benefits

Assessment Feedback

RACI


People

Process

ToolsChaotic Reactive Proactive Service Value

Discover and manage Analyze and transform Contextualize to influence

Data Analytics Decision support OutputInput

IT Service Optimization


IT Maturity Questions


Actual Maturity Level

42% Believe they

are at the

Service Level

53% Actually

assess at the

Chaotic Level


5 Business Partner: Business Capacity Planning

4Service Aligned: IT Service Capacity Planning

1 Reactive: Real-Time Monitoring

2Committed: Historical Analysis

0Chaos: Clueless

3 Proactive: Resource Capacity Planning

Use “Introducing the Gartner IT Infrastructure and Operations Maturity Model” (G00147962) for guidance

Each step along the way represents increased

business value

Investment made in People, Process, Technology

Where are you?


Defining a Capacity Management Roadmap


GAP Analysis

• Value of capacity management questioned

• Communications within teams not aligned

• Capacity processes not documented

• Scope of capacity management not fully understood

• Capacity policy not supported by all concerned parties

• Roles and responsibilities (RACI) not created

• No visibility of future infrastructure (demand)

• No standardized format / template for monthly reporting

• No analysis from monthly capacity reports

• No virtual team established (capacity champions)

• Teams bypassing capacity management processes

• Weak CMDB (configuration management database)

• OLAs not aligned to capacity management


Roadmap

Assessment of policies, processes, and SLAs

Reporting at various levels

Planning and strategy Cost avoidance Demand ManagementContinuous Service

Improvement

• Review current reports

• Establish virtual operational team

• Identify all data sources

• RACI based upon policy and processes

• Review SLA/OLA with service providers

• Presentation to stakeholders

• Create capacity dashboard

• Amend monthly capacity reports

• Validate data from service providers

• Identify gaps in reporting

• Review events, incidents etc.

• Exploit toolsets in environments

• Mature reporting

• Address risk assessment

• Create capacity plan

• (Ops & Strategic)

• Assess reliability and availability improvements

• Understand sources of capacity demand

• Create a draft demand calendar

• Align planning and operational growth

• Review cost savings initiatives

• Backup strategy

• Archiving/data solutions

• Storage reclamation

• Review all POCs and clean up

• Virtualization targets

• Consolidation targets

• Gather and analyze infrastructure demand

• Create visibility of project demand

• Attach cost to infrastructure required

• Re-assess progress

• Re-position

• Roadmap creation

• Communication of yearly achievements

• Review capacity plan

Timeframes are dependent on resources allocated and priorities attached to each subset.


Assessment

Q1 Assessment of maturity of capacity management processes and review or create policies, SLAs, & OLAs

STRATEGYQ2 Create demand

calendar. ensure alignment with ITIL.

Timeline

Reporting

Q2Define reports and dashboards for capacity management

Forums Q3Review/create capacity risk management report forum

PeopleQ1

Establish and contract a virtual team across company

Review existing toolsets, data source validation, and address gaps

Q4Cost avoidance strategy and benefits realization. Create a capacity plan.


• Projects

• Demand calendar

• Architecture designs

• Unknown demand

• Trends

• Thresholds

• Reduce timeframes

• Improve availability

• Networks

• Mainframe

• Open Systems

• Storage

• Databases

• EUC

• Datacentre

• Thresholds

• Configuration

• Alerting

• SLAs

• Availability

• Monitoring

• Licensing

• Monthly capacity reports

• Risk

• Licensing

• Cloud

• Incidents

• Monitoring

• Trending

• Manager of managers

• Infrastructure monitoring

• Off-shelf application plugins

• Availability reporting

• Service level management

• Integration with service desk

• Custom agents for integration and applications

Environments Services ReportingCapacity Planner

EvaluationCriteria

Toolset Exploitation


Chaotic

Reactive

Proactive

Service

Value

Identify and manage

Analyze and transform

Contextualize to influence

Data Analytics Decision supportDriver

Toolset Drives Maturity


RACI

Co

llect

Cap

acit

y

Data

Data

Co

llecti

on

17 Identify capacity metrics for collection A R C I I I I I I I I I I I I

18 Identify if appropriate tools are available for these metrics A R C I I I I I I I I I I

19Motivate/Procure and obtain approval for respective tools A R C I C C C C C C C C C C

20Maintain tools and procedures A R

21Run data collection and monitor metrics A R

22Validate data collection A R R

23Summarise historic data A R I I I I I I I I I

Evalu

ate

Cu

rren

t U

sag

e

Evalu

ate

C

ap

acit

y

Uti

lisati

on

24Define monitoring and reporting guidelines A R I I I I I I I I I I I I I

25Report on capacity and performance A R R I I I I I I I I I I I

26Analyse current system data and reports A R R C C C C C C C C

26Conduct and attend capacity risk forum A R R I I I I I I R R R R R R R

27 Identify and resolve capacity issues/risks A R R I I C C C R R R R R R R

28Communicate to service level management A R I I I I I I I I I I I I I

Evalu

ate

fu

ture r

eso

urce

req

uir

em

en

ts

Mo

dell

ing

an

d A

naly

sis

P

hase

29Gather an collect baseline data A R R C C C C C C C C

30Apply calibration (if applicable) A R

31Analyse baseline data for relevant peak periods A R

32Apply legacy and seasonal growth to baseline A R

33Apply new initiative requirements to baseline A R

34Verify growth with assumptions A R C C I C C C C C C C C C C C

35Document external factors affecting growth A R

36Analyze resource constraints and potential hot spots A R R I R R R R R R R

37Define minimum requirements A R C I I I I C R R R R R R R R

38Ascertain tuning or optimisation potential A R C I I C R R R R R R R I


Strategic vs. Operational


Industry Standard vs. New ITIL Methodology

• Service providers

• Network team

• End user computing team

• Mainframe team

• Open systems & storage team

• Clients

Capacity Manager–EUC Networks–Mainframe

Storage–DBA

• Service providers

• Networks team

• End user computing team

• Storage team

• Open systems

• Applications

Capacity Planner (Analyst)

OperationalApplication sizingReal-time monitoringPerformance tuningReclamation targetsGathering data

StrategicReplacement strategyLifecycle managementDashboard creationBudget cycle inputCapacity procurementMonthly MANCO reports


ITIL Service Strategy: People Process

VS

Operational20%

Strategic80%


• Roadmaps and tech

• Client trends & bottlenecks

• SLA breaches & roadmaps

• Demand management

• Capacity related risk

• New services

• CIO

• IT execs

• Business execs

• Senior IT managers

• SME & architects

• Service line managers

• Server & storage

• Network & mainframe

• Cloud & floor space

• Demand forecasts

• Business trans. volume

• Charge-out

• Change advisory board

• Business unit meetings

• Service delivery

• Service acceptance

• Change advisory board

• Service provider

• Risk

• Architecture

• Business one-on-one

Forums

Data Sources

Tech / Non

Agenda topics

People


Value Add

Meetings &

Toolsets

Collect Data

Where?

NoiseReduction

Analysis

What?

Level of Maturity

Recommendation

Why?

Chaotic Reactive Proactive Service Value


Artifacts of monitoring as a discipline in their organization

Data

Information

Knowledge

WisdomC

on

text

Understanding

Who?What?Where? When?

How?

Why?

ComponentInfrastructure

AnalysisTrends Forecast

OutcomesReportsProactive

RecommendationsValueBusiness Speak

Reporting


Creating Value and Realizing Savings


Opportunities for Cost Optimization

Duplication and redundancy

Dormant or outdated assets

Wasteful consumption or demand

Portfolio Management

Lifecycle Management

Capacity Management


Why Capacity Management?

Proactive mitigation of risks

Replacement of man. processes

Informed risk exposure

Resilience

Defeat over-/under provision.

Reclaim unused resources

Automated and unified tools and processes

Efficiency

Clarity about current positions

Confid. in forecasting ability

Max. exploitation of opportunities

Agility


Drivers of Excess Demand and Consumption

• Self-service provisioning

• Vendor estimates/recommendations taken at “face value”

• Lack of sizing guidelines and reviews

• Public cloud services treated like traditional on-premises resources

• Virtual machines rarely returned or deleted after end of life


D

Managing Consumption and Demand

Use of standard configurations (S-M-L)

Assess feasibility, challenge assumptions

Increased customer engagement and active demand management

ReactiveProactive Investment


ProjectionsBusiness Growth• Projection: 5%• Projection: 12%• Projection: 15%• Projection: 17%

Probability Rating

• Quarter 1: 80%• Quarter 2: 60%• Quarter 3: 50%• Quarter 4: 30%

Demand Process

Identify business unit owners

Create monthly forum for discussion

Document each business unit’s requirements

Translate business requirements into

IT requirements

Map demand to Supply

Initiate recl. strat. or procurement

strategy

Present demand report monthly

• Be present at monthly business meeting(s)

• Translate business into IT infrastructure requirements

• Present KNOWN Growth, cater for unknown growth

• Understand 3–6 months demand (IT & business)

• Highlight demand at risk and dependencies

Demand Calendar


D


Discovery of unused or over-provisioned assets

Reclamation of resources supported by a formal policy

Close the feedback-loop to improve future estimates



Process Flow for Reclamation

• Surveyor to identify targets based on 3-month analysis of performance metrics.

• Delete or resize virtual machine

VM Targets

• Server owner notified of pending action to server

• Opportunity to provide updates on infrastructure

SME Approval

• IT executive to ensure due process was followed

• Target list must be attached to approval email

IT Exec approval

• Approval from CAB and all potential parties informed of change

Change Advisory Board

• IT team action change request and ensure that CMDB is updates

IT team

• Report on quarterly reclamation

• Provide infrastructure charge-out model

Capacity Team

Identify Verify CAB Reclaim CMDB Monitor




Activity-based costing: Allocating cost in relationship to actual consumption will make consumers more thoughtful about how they request resources

If charge-back is too hard to sell, start with show-back…


Create Charge-out Model

Chargeback / Showback reporting


Organizational thinking

Assessment

Agreement of the GAP

Defining the roadmap

Mandate to implement

Implementation Plan: Approach and Approval


Management buy-in

Do an assessment

People , process, and technology

Strategic, not operational

Short-term demand (3–6 months)

Charge-out or show-back

Reporting and benefits

Be assertive

More analysis and less noise

In Summary

How to Drive Business Value with Capacity Management · Translate business requirements into IT requirements Map demand to Supply Initiate recl . strat or procurement strategy Present

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