Michelle Jaramillo Cherwell Software Michelle S. Jaramillo is primarily focusing on the development and management of the business analytics and data visualizations features for Cherwell Service Management. Michelle’s previous product and pricing management experience in the telecom and utility industries allow her to bring a multi-disciplinary approach and perspective to ITSM by leveraging ideas from various industries. In addition to her professional experience, Michelle holds a Bachelor of Science in Information Systems and Finance from the University of Colorado, Colorado Springs. Currently, she is pursuing her MBA in Information Systems, Finance and Business Intelligence from “Metrics for Maturity, Intelligence for Innovation: Your Value Proposition”
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Metrics to Maturity, Intelligence for Innovation: Your Value Proposition
Managing the perception of value is a key strategic initiative that solidifies the business case for further investment in an organization’s service desk. However, metrics are the key to achieving this difficult and challenging proposition. Taking a segmented approach to metrics can bring speed and relevancy to reports and dashboards by empowering the user’s data literacy and the organization’s overall strategic goals. This session will explain how correctly managing metrics for maturity can go hand-in-hand with innovation and value. Status quo BI initiatives will no longer be good enough for IT to maintain its value proposition. The IT organization should manage the user’s perception of value with business intelligence and metrics.
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Michelle JaramilloCherwell Software
Michelle S. Jaramillo is primarily focusing on the development and management of the business analytics and data visualizations features for Cherwell Service Management. Michelle’s previous product and pricing management experience in the telecom and utility industries allow her to bring a multi-disciplinary approach and perspective to ITSM by leveraging ideas from various industries. In addition to her professional experience, Michelle holds a Bachelor of Science in Information Systems and Finance from the University of Colorado, Colorado Springs. Currently, she is pursuing her MBA in Information Systems, Finance and Business Intelligence from the University of Colorado, Denver.
“Metrics for Maturity, Intelligence for Innovation: Your Value Proposition”
Metrics to Maturity, Intelligence for Innovation:
Your Value PropositionMichelle S. Jaramillo
Cherwell Software, LLCProduct Analyst, Business Intelligence &
Analytics
Presentation Preview
• Business Intelligence• Intelligence for Innovation• Communicating Value• Questions?
Who am I? Why am I speaking?
Michelle S. Jaramillo Product Analyst for Cherwell Software. Develops and manages analytic and visualization
features for CSM (Cherwell Service Management). ITSM & BI industry market research.
Conducts interviews with customers and prospective ITSM software buyers and analytics practitioners.
Challenger of the ITSM status quo by taking a multi-disciplinary approach to IT and Service Desk.
Avid analytics advocate and practitioner (pricing, rate design, P&L, web and marketing operations)
What is Business Intelligence? More importantly, where do metrics fit in?
What is Business Intelligence? Business intelligence (BI) is a set of theories, methodologies, architectures, and technologies that turn raw data into meaningful and useful information for business initiatives.
Business Intelligence is made up of number of components, these are:• Multidimensional aggregation and allocation• Denormalization, tagging and standardization of data • Real-time reporting with analytical alerts• Interface with unstructured data source(s)• Group consolidation, budgeting and rolling forecast• Statistical inference and probabilistic simulation• Key performance indicators optimization• Version control and process management
Business Intelligence & Analytics Maturity
DescriptiveAnalytics
DiagnosticAnalytics
Predictive/PrescriptiveAnalytics
How Analytic Mature Am I? The Early StagesDescriptive, Diagnostic• Reactive stance.• Status quo.• Looking at the past; post-mortem.• Looking in the rear view mirror while driving
forward.• Start trending and acting on those trends.
Time Consuming Tasks
How Insight is Shared
Users and Consumers
MetricsWhat’s the deal?
The Meaning of Metrics
THE IMPORTANCE OF LEARNING“A method of measuring
something.”
“Metric is any type of measurement
used to gauge some quantifiable
component of a system or process.”
ITSM & BI: Where do we stand?
Business Intelligence for Service Desks• Metrics
– Over 200 industry metrics and more with different derivations.
– KPIs: Metrics that are combined or calculated with other metrics to provide a summary calculation (ratio or average) of the related metrics.
• Reporting– Usually done as a paper hand out done in Excel.– This is where people tend to report on everything possible. – Scorecards
Metrics are the basis of where we begin our journey into business intelligence. It is the main content for reporting, analytics and dashboards.• How do we know which ones are the right ones for our
service desk? • How do we know that what we are reporting is
relevant to the business and to the service desk?• How do we navigate with metrics when they are in
place? Other Ancillary Questions• Do we have the data available? • Do we have software/people to do the analysis?• Do we have the right processes in place?
Forrester’s 10 Common Mistakes with Metrics
1. “Metrics for metrics sake”2. Too many metrics3. Measuring the easy things4. Focusing internally rather than from a business POV5. Thinking that all metrics were born equal6. Trusting benchmarks7. Metrics are poorly reported8. Ignoring behavioral issues • Meaning metrics can drive the right or wrong behavior9. Old metrics never die10. Not understanding what metrics really mean
A Segmented Approach
Metrics for Mitigation: Technicians & AnalystsMetrics for Maintaining Strategy: Management
Metrics for Momentum and Motivation: CIOMetrics for the Majority: Everyone else
Consider your audience!!!
Metrics Value Template
User Value Proposition: Users have NO downtime when we prevent problems from occurring. You haven’t experienced any downtime since: “XX XX, 2014”
Intelligence for Innovation
The Next Stages: Realized ValuePredictive – 2nd Stage
Driving just being able to see beyond the hood of your car.
Prescriptive – 3rd StageDriving with the GPS on and car drives itself,
making corrections based on new and multiple information sources.
Intelligence for Innovation
Intelligence can turn insight into innovation which, in turn, creates
VALUE!
Examples of predictive analytics at work: • Staffing models• Volume of tickets• Location analytics
• Capacity
• Sentiment Analytics • Collaboration & social channel analysis• Imagine no more surveys!
• Text Analytics
Communicating ValueDifferent methods to help users perceive value.
Business Intelligence & Analytics Maturity “Customer
experience is how your customers perceive their interactions with your company.”
What is Value?
People associate value with a price or cost of a service or product.
Demonstrating value in ITSM is, typically, tied to the following:Cost Control
TCO (Total Cost of Ownership) Cost Avoidance, Reduction and/or Savings
ROI (Return on Investment) Generate the most benefit for the least amount of
investment whether this is related to a project or operations.
What is Value, Really?
Perceived value is often intangible and can be difficult to quantify.
IT costs can be completely unrelated to the benefits that users are actually experiencing or receiving.
Intangible business value drivers are typically tied to strategic initiatives.
Higher productivity (including quality, velocity, effectiveness and efficiency)• Maximum access & availability for all users.• Open and engaging collaboration channels.• Giving the business a competitive advantage.Self-service portal (self-sufficiency)• Availability of training in different formats. • Documentation.Risk avoidance• Legal and compliance issues that are industry relevant. • Enable transparency through out the business so progress can be
marketed internally.Overall user sentimentUser adoption rates• Ease of use.• Access to multiple systems without disparity.Innovation • Effective products, processes, services, technologies, or ideas within the
market or industry.• Anticipate the needs of the business before the business knows it.
Communicating Value
Monetize it!or
Manage users’ perception of value with metrics!
Monetization Example
The Perception of Value
Metrics do matter if they show business value in a tangible or intangible benefit. In an ideal IT organization, metrics should influence strategic business initiatives by providing insight into user awareness.
The perception of value should be driven by the service desk.
Goals to achieving this: Users are constantly aware of what IT is doing to make their jobs and lives
better by internal marketing and transparency. Users are “buying” more from IT. Users are engaged in metrics that are relevant to them.
Meaning you are using their semantics to communicate to them. Users are participating and consuming more within the company by using
more IT services. Communicate, communicate, communicate!
If users don’t understand what your value proposition is, you need to communicate more effectively until they get it!
Resources
The Data Warehousing Institute (CBIP Certification and BI Maturity Model) http://www.tdwi.org
Information Week’s BI/Analytics Surveyhttp://reports.informationweek.com/abstract/81/11715/Business-Intelligence-and-Information-Management/Research:-2014-Analytics,-BI,-and-Information-Management-Survey.html
Books on ITSM Metrics
The Definitive Guide to IT Service Management - ITSMf, McWhirter & GaughanMeasuring ITIL - Randy A. SteinbergMetrics for IT Service Management - Peter Brooks
ITIL Service Operations Metrics http://wiki.en.it-processmaps.com/index.php/ITIL_KPIs_Service_Operation#ITIL_KPIs_Incident_Management
Free courses on Data Science, Statistics, and R Programminghttps://www.coursera.org/https://www.edx.org/http://bigdatauniversity.com/
To learn more about value (from a pricing perspective that can be applied to any product or service)http://home.leveragepoint.com/resources/webinars/value-pricing-webinars