Next-Generation IT Service Management: Changing the Future of IT

IT & DATA MANAGEMENT RESEARCH,

INDUSTRY ANALYSIS & CONSULTING

Next Generation ITSMChanging the Future of IT:

How Real Is It Today, and

Where is It Going in the Future?

Dennis Nils Drogseth

Vice President

Enterprise Management Associates


INDUSTRY ANALYSIS & CONSULTING© 2014 Enterprise Management Associates, Inc.

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Today’s Speaker

3 © 2017 Enterprise Management Associates, Inc.

Dennis Drogseth, Vice President, EMA

Dennis joined Enterprise Management Associates in 1998

and currently manages the New Hampshire office. Dennis

brings several years of experience in various aspects of

marketing and business planning for service management

solutions. He supports EMA through leadership in IT Service

Management (ITSM), CMDB systems, as well as

megatrends like advanced operations analytics, cross-

domain automation systems, IT-to-business alignment, and

service-centric financial optimization. Dennis also works over

several practice areas to promote dialogue across critical

areas of technology and market interdependencies.



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Next Generation ITSMChanging the Future of IT:

How Real Is It Today, and

Where is It Going in the Future?

Dennis Nils Drogseth

Vice President

Enterprise Management Associates



Research Sponsors




Agenda

• Demographics and budget

• Organization, governance, strategic priorities, and

best practices

• Technology, analytic and service modeling priorities

• Service catalogs and app stores and endpoint

management

• Cloud and Agile/DevOps

• Obstacles and Success




Demographics and Budget



Some Demographic Highlights

• Geography (264 respondents):

– 62% in North America

– 38% in Europe (England, Germany, France)

• Strong Executive Presence:

– 41% director or above

• 23% CIO or CTO

• 6% CEO of CFO

– 14% non-IT business

• Lead Verticals:

– High-tech SW, Finance/banking/insurance/Retail

• Average IT budget: about $30 million




A Balanced Mix of Company Size, with Strong Mid-

Tier and High-End Presence


0%

6%

17%

17%

19%

10%

11%

20%

Fewer than 250

250 - 499

500 - 999

1,000 - 2,499

2,500 - 4,999

5,000 - 9,999

10,000 - 19,999

20,000 or more

How many employees are in your company worldwide?

Fewer than 250 250 - 499 500 - 999 1,000 - 2,499

2,500 - 4,999 5,000 - 9,999 10,000 - 19,999 20,000 or more

Sample Size = 264



Organization, Governance,

Strategic Priorities, and

Best Practices



Some Organizational Highlights

• Central IT versus LOB:

– 89% Central, 11 % LOB

• A single or multiple service desks:

– 50%/ 50% each

• Areas of involvement:

– Average respondent had four areas of involvement

– Top ‘primary’ areas of involvement were:

• Integrated cross-silo support for IT asset management

• Core service desk operations (incident/request management)

• Integrated cross-silo support for problem, incident and

availability and performance management

• Integrated cross-silo support for IT governance analytics/

OpEx efficiencies




Roles Were Mixed With 30% Executive, 24% ITSM-Specific,

15% Operations and 12% IT Asset or Financial Management


30%

9%

6%

4%

9%

2%

4%

1%

3%

2%

6%

9%

0%

1%

2%

3%

0%

0%

1%

3%

1%

1%

IT Executive Suite (VP-level and above)

IT Financial Management

IT Architecture

Business Analysis

IT Operations Planning/Design

Operations - Network Operations Center (NOC)

Operations - Data Center

Security/Risk/Fraud

(ITSM) Service Desk, Service Support, Help Desk administrator

IT Service Management (other please specify)

IT Service Management (ITSM) Manager

IT Service Management (ITSM) Director

Endpoint management (including mobile)

IT Asset Management

Software Asset Management

Project/Program Management

IT Portfolio Planning

Cross-Domain Service Delivery Organization

Cross-Domain Support Organization for IT

Applications Development

Applications Management

OtherSample Size = 264



Some Role-Related Perspectives

• Roles:

– Exec suite

– ITSM

– Operations

– IT financial management

– Other (architecture, business

analysts, development, X-

domain)


• Governance

– All viewed ITSM as the

central point of governance

• Greatest roadblock

– All see SW, deployment

and administrative

complexity as #1 issue



Some Role-Related Perspectives -2-

• Top Strategic Priorities

– Executive Suite – Transform end user support through mobility,

intelligent bots, self-service

– IT financial management – Integrated cross-silo support for fraud,

risk and compliance management

– ITSM – improve end-user experience for internal consumers

– Operations– improve operations-to-service desk integrations for

incident/problem and availability management tied support

integrated cross silo support for portfolio planning and optimization

– Other– Transform end-user support through mobility, intelligent bots,

and self-service; tied integrated support for business workflow

creation




IT Operations and the IT Executive Suite Led in

ITSM Oversight, with ITAM in Third Place


26%

23%

13%

11%

7%

5%

4%

3%

3%

3%

2%

0%

IT operations overall

IT executive suite (VP or CIO level)

IT asset management

Cloud

Service desk/help desk/customer support

Data center

Cross-domain service management organization

Customer service organization

Business line management

Call center organization

Network operations

Other

In your organization, which group oversees/coordinates your ITSM-related capabilities?

Sample Size = 264



Most ITSM Teams Are Slated for Growth

• 56% of ITSM Teams were slated for growth:

– 36% will stay the same

– 7% will be downsized

• 2% of these due to greater efficiencies

• Top reasons for growth

– Our company is growing and so is ITSM

– We are more actively engaging in operations

– Cloud has required an increased investment in ITSM

– We providing greater direction for ITAM/SAM

– We are assuming more responsibilities across the lines of

business




83% Were Managing ITSM and non-IT

Service/Customer Management as a Single Group


50%

33%

9%

3%

4%

Yes - operational for more than 3 years

Yes - operational for 1 to 3 years

Yes - implementation is in process and will becompleted within 12 months

No - but planning is underway

No plans to consolidate these functions

In your company, are the IT help/service desk environments and non-IT customer service or customer relationship management

being managed as a single group?

Sample Size = 264



Some Other Organizational Highlights

• Top team integration priorities:

– IT-to-business (BSM) teams

– Operations teams

– DevOps teams

– Cloud-specific teams

– ITAM/SAM teams

• Who led in measuring governing IT process/OpEx efficiencies?

– ITSM teams

– Executive suite

– Operations

– Cross-domain service management team

• Top process/Op/Ex-related KPIs

– Mean time to resolve incidents

– Customer satisfaction

– Success rates in managing change




Top Ten Strategic Priorities for ITSM

1. Improve end-user experience internal to

the business.

2. Integrated cross-silo support for

security/fraud/risk/compliance;

(tied with) transform end-user support

with mobility/self-service/ intelligent bots.

3. Integrated cross-silo support for ITAM.

4. Core service/help desk operations

(incident and request management).

5. Improve operations-to-service desk

integrations for incident/problem,

availability and performance

management.




Top Ten Strategic Priorities for ITSM

1. Improve end-user experience internal to the business.

2. Integrated cross-silo support for security/fraud/risk/compliance; (tied with)

transform end-user support with mobility/self-service/ intelligent bots.

3. Integrated cross-silo support for ITAM.

4. Core service/help desk operations

(incident and request management).

5. Improve operations-to-service desk integrations

for incident/problem, availability and

performance management.

6. Improve operations-to-service desk integrations for change and

configuration management.

7. Integrated cross-silo support for the Internet of Things.

8. Support the move to the internal/external cloud.

9. Integrated cross-silo support for IT governance for OpEx efficiencies.

10. Integrated cross-silo support for portfolio planning and optimization.




Management of Portfolio Led for Best Practices

22

18%

20%

26%

25%

19%

27%

27%

25%

20%

31%

22%

28%

0%

ITIL v2

ITIL v3/2011

ISO 19770-1

Six Sigma

IT4IT

Control Objectives for Information and Related Technology (COBIT)

IT Balanced Scorecard

Capability Maturity Model Integration (CMMI)

PMBOK for project management

Management of Portfolio (MoP)

PRINCE2 (for project management)

International Project Management Association (IPMA)

Other

Which of the following best practices are relevant to your ITSM initiative?

Sample Size = 264, Valid Cases = 264, Total Mentions = 759



Technology, Analytic and

Service Modeling Priorities



Functional Priorities

• The top five functional priorities in ranked order were:

– Social IT across the end-user community and the IBM staff.

– New or enhanced project management capabilities.

– Enhanced capabilities for software asset management (SAM).

– Mobile in support of IT stakeholders.

– Enhanced capabilities for IT asset management (ITAM).




Automation Priorities

• The top five functional priorities in ranked order were:

– Social IT across the end-user community and the IBM staff.

– New or enhanced project management capabilities.

– Enhanced capabilities for software asset management (SAM).

– Mobile in support of IT stakeholders.

– Enhanced capabilities for IT asset management (ITAM).

• The top five priorities in automation in ranked order were:

– Workflow within and across IT.

– Workload automation (job scheduling).

– Automation in support of infrastructure

inventory/discovery.

– Service request management.

– SecOps/ security-related automation.




Analytic Priorities for ITSM Were Rich and Varied


30%

29%

28%

27%

26%

24%

22%

22%

21%

21%

20%

17%

12%

0%

Analytics for IT governance in terms of efficiencies and effectiveness

Analytics for change management

Analytics in support of optimizing IT infrastructure

Analytics for user experience and visibility into end-user problems

Analytics in support of optimizing IT application services for cost/value

Analytics that can draw from an ITSM knowledge base

Integrated security analytics to minimize fraud and risk

Analytics to support lifecycle management for the Internet of Things (IoT)

Analytics for assimilating and reconciling multiple data sources

Analytics to support superior asset and financial optimization

Analytics for incident/problem and availability management

Analytics in support of optimizing cloud costs and resources

Analytics for asset management and financial optimization

None of these (Analytics are not a priority for us.)




Top Five IT-to-Business Management Priorities

for ITSM Teams

1. Executive dashboards for sharing information

within IT (tied with) analytics for business

outcomes (revenue, business process

impacts/usage).

2. Workflow automation for processes linking IT

and business stakeholders.

3. Social media for customer satisfaction

assessments.

4. Analytics in support of partner-related business

process optimization.

5. Support for managing enterprise assets (IoT).




Data Center Utilities and HR Led

for Enterprise Process Automation


47%

45%

36%

31%

31%

26%

4%

0%

Data center utilities and power

Human Resources

Building and Facilities

Transportation/fleet management

Manufacturing

Other vertically specific infrastructure costs (retail operations,healthcare operations, power grids, airports, etc.)

None, we are not currently supporting enterprise services.

Other

Which of the following areas does your company's ITSM team or ITSM integrations currently support or have committed plans

to support in terms of workflow and/or process automation?




65% Are Currently Supporting IoT Initiatives


37%

28%

19%

16%

We are actively leveraging IT capabilities to support IoT.

We are beginning to leverage IT capabilities to support IoT.

We have plans to leverage IT capabilities to support IoT.

We have no plans to leverage IT capabilities to support IoT.

To what degree is your ITSM team or ITSM integrations supporting Internet of Things (IoT) requirements?

Sample Size = 264



Some CMDB/CMS/ADDM Perspectives

• 51% had CMDBs/ or CMS/s actively working and deployed– 69% had federated data,

and 25% were looking to federate

• Federating data correlated with overall ITSM success

– Average weekly time spent reconciling data was circa 12 hours

• Those who invested more time were more successful in their overall ITSM initiative


CMDB

Incident Management

Problem Management

Change Management

Configuration Management



CMDB

Incident Management

Problem Management

Change Management

Configuration Management

Some CMDB/CMS/ADDM Perspectives

• 51% had CMDBs/ or CMS/s actively working and deployed

– 69% had federated data, and 25% were looking to federate

• Federating data correlated with overall ITSM success

– Average weekly time spent reconciling data was circa 12 hours

• Those who invested more time were more successful in their overall ITSM initiative

– Most dominant use cases were asset and change management

• But in terms of those most currently targeted, data center migration, financial optimization and integrated security led

– CMDB/CMS success correlated strongly with overall ITSM success

• 25% had application discovery and dependency mapping deployed (ADDM)

– Dominant use case was performance and availability.




Data Sources for ITSM, ITAM or Integrated

Operations: Average of 4.5 Per Respondent


38%

31%

28%

27%

27%

24%

23%

20%

20%

20%

19%

18%

17%

17%

16%

16%

16%

15%

12%

11%

10%

10%

9%

5%

0%

IT governance/efficiency-related data repository

Asset Management Database

Data store integrated with an ITSM platform

CMDB internal to the ITSM platform

Software license data resources

Application Discovery and Dependency Mapping (ADDM)

Spreadsheet data

Federated CMS

Inventory or discovery tools

Internet of Things (IoT)-specific data repository

CMDB external to the ITSM platform

Social media/ social IT data resources

Application portfolio-related data repository

Operational sources (events, log files, etc.)

User experience management-related data

Operations sources (performance, transaction, etc.)

Capacity planning-related data store for internal infrastructure (including virtualized and cloud)

Visio data resources

Business planning data store

Aggregated data store for performance analytics

Capacity planning-related data store for public cloud

Aggregated data store for change management-related analytics

Aggregated data store for security risk-related analytics

Aggregated data store for financial analytics

Other

Sample Size = 264, Valid Cases = 264, Total Mentions = 1,181



Service Catalogs, App Stores and

Endpoint Management



60% Had Multiple Service Catalogs or App Stores:

Only 1% Had Neither


25%

37%

11%

11%

9%

1%

3%

3%

We have one service catalog

We have multiple service catalogs

We have one app store

We have multiple app stores

We have both service catalog(s) and app store(s)

We have neither a service catalog nor an app store

We have multiple service catalogs (or app stores) but areseeking to integrate into a consolidated view

Don't know

Sample Size = 264



Some Service Catalog or App Store Highlights

• 75% currently support

cost and usage insights

– And 21% plan to do so

within the next 12 months

• Supporting cost and

usage insights and cloud

services strongly

correlates with success




Some Service Catalog or App Store Highlights

• 75% currently support cost and usage insights

– And 21% plan to do so within the next 12 months

• Supporting cloud, cost and usage in catalogs/ app stores strongly correlates with overall ITSM success

• Chief IT services in catalog were:

– IT professional services (e.g. project management/ architecture)

– End-user device provisioning

– End-user support (help/ incident)

• Chief enterprise groups using catalogs were:

– Operations

– Sales

– Human resources

– Facilities management




Endpoint Management Requirements Are Becoming

Increasingly Diverse


89%

71%

59%

16%

0%

Desktops/laptops

Mobile phones

Tablets

VDI

Other

Which types of endpoints/devices is your organization currently managing?




Some Endpoint and Mobile Management Perspectives

• Top 5 requirements for

managing endpoints

1. Security

2. Software usage

3. Software distribution

4. Operating system deployment

5. License management

• 86% were offering mobile support for ITSM

professionals, and 87% for IT service

consumers– both of which correlate with

overall ITSM success




Cloud and Agile/DevOps



Chief Impacts of Cloud on ITSM Teams

1. Cloud and virtualization has made asset management more

challenging.

2. Cloud is shortening the review cycle for managing change.

3. Cloud is changing how we approach release management.

4. Cloud is changing how we’re organized.

5. Cloud is requiring higher levels of automation in provisioning

services.

6. Cloud is pushing us to pay more attention to SecOps.

7. We see cloud as a resource for reducing ITSM, ITAM,

operations and other related costs




89% Have Integrated Release Management for

Application Services with ITSM


53%

36%

4%

7%

Yes, we recently (within the last 12 months) integratedITSM support.

Yes, we have had integrated ITSM support for more than12 months.

Yes, we will integrate ITSM support in the next 12 months.

No

Is release management for new or enhanced (updates) application services integrated with your ITSM capabilities or will it be in the next 12 months?

Sample Size = 264



Some Perspectives on ITSM/DevOps Integrations

• Top four areas of ITSM/DevOps integration were:

– Common workflows with development teams moving into

production

– Scheduling releases

– Active feedback loops on

service quality

– Active feedback loops on

usage and requirements

• 71% have created a fast track for certain applications

• Integrated ITSM/DevOps shows very strong

positives both in itself and for ITSM’s overall success

– 36% say it’s been transformative, and 44% very positive




Obstacles and Success



Software Deployment and Complexity Was the Greatest

Obstacle for ITSM Success

44

27%

16%

15%

14%

14%

14%

0%

Software, deployment, and administrative complexity

Vendor Selection

Warring technologies and siloed tools

Organizational and political issues

Poor dialogue and communication across IT

Lack of effectively defined processes

Other

Which of the following is the greatest obstacle for superior integrated ITSM leadership?

Sample Size = 264



What Correlated with ITSM Success?

• Integrating cloud services into a common portal

or catalog

• Mobile access for ITSM professionals

• Offering consumers mobile access to ITSM

services

• Continuous application release updates (multiple

times a day)

• Establishing a fast track for release management

• Effective ITSM support for DevOps overall

• Support for IoT




What Correlated with ITSM Success? -2-

• IT budget growth, ITSM team growth

• Larger versus smaller enterprises

• Executive suite leadership

• Mature consolidation of ITSM with customer

service

• Viewing ITIL as more important

• Success in CMDB deployments

• Supporting usage and cost insights in service

catalogs




Q&A

47

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