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© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

Running IT as a Business: OverviewMark Bodman

Enterprise Architect

V 3.6


2

A New Style of IT

© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.3

A New Style of IT has emerged…Based on Forces Transforming Business today


APQC Process Classification Framework

IT is one Portion of an Organization APQC PCF

ITILCOBITTOGAFTest ManagementStrategic PlanningProject ManagementDevOpsDevelopmentAgile DevelopmentMonitoringProblem ManagementChange ManagementConfigurationDemand ManagementCapacity ManagementRequirements ManagementDiagnostics

Event ManagementIncident ManagementBuild ManagementDesign ManagementGRCPolicy ManagementProposal ManagementSLA ManagementDeployment ManagementRelease ManagementCloudMobilSocialFinancial ManagementSaaSPaaSIaaS

SD*Technology DebtOutsourcingMore with lessMultisourcingUpgradesMTTRLifecycle ManagementFinancial ManagementGRCLicense ManagementSOXPCIDatacenter ConsolidationPerformance Management

With many concerns to address


The journey towards a New Style of IT…An Industry Perspective

Traditional IT New Style of ITJOURNEY (1-5 Years)

• Drive efficiencies• Run the business; Secure the enterprise• Systems of Record

• TTV for LOBs• Use Cloud Services; Self-service Experience• Systems of Record Fabric

• TTV for Business• Lifecycle mgmt defined in apps; Developer Driven• Systems of Engagement & Insight

Basic Automation Advanced Automation Self-Service Service Broker IT as Low-touch Service ProviderIT as a Service Provider

“Process-Centric” “Insight-Centric”“Service-Centric”

Details of the Journey:

Roadmap:

Roadblocks:

& Cloud& Cloud

HAVEn

IT ManagementReference Architecture

IT ManagementReference Architecture

HP Solutions


6

IT Management Practice

IT Value Stream & Reference Architecture


Designed by IT organizations for IT organizations like you

IT4IT Consortium - Evolving IT for IT

IT4IT ConsortiumStrategy/Exec board

Shell, Achmea, AT&T, Munich RE, PwC, Accenture, HP

Community Members

Disney, NBC, Nestle, ING, Barclays, Proctor & Gamble, Paychex, Rabobank, Raiffeisen, AkzoNobel, …

Efficiency

&

AgilityFinance & assets

Intelligence & reporting

Resource & project

Governance, risk and compliance

Sourcing & vendor

IT V

alu

e Ch

ain

Plan Build Deliver Run

Reference Architecture

This work is based upon material developed and published by the IT4IT Consortium


Applying business concepts to understand “IT as a business” vs. cost center

Business Point of View: Value Chains and Streams

Order to Cash

Quote to Order

Supply Chain

Product to Market

Idea to Product

Manufacturing to Distribution

Value Chains – Porter

• Competitive Analysis• Strategic Concepts• Value Creation• Activity cost to profit margin analysis

Value Streams – Martin

• Lean / 6-sigma concepts• Multi-Process Oriented• Customer focused results


New Viewpoint – How to operate IT, continuouslyThe Vision: Create Integrated IT management capabilities across the entire service lifecycle

Plan Build Deliver Run

Reference Architecture

IT Value Streams

Strategy toPortfolio Requirement

to Deploy

Request toFulfill Detect to

Correct

Traditional IT Value Chain


IT Operating Model: Value Chains & Reference Architecture

Monitor & change• Optimize portfolios• Communicate value• Evaluate benefit

realization

Demand• Consolidate demand• Create business cases• Business value, risk,

costs, benefits & resources

Strategy• Define objectives• Financial planning• Set up policies and

guidelines• Enterprise architecture

• What-if-analysis• Rationalize portfolio• Ensure governance• Allocate resources, fund

and charter projects

Selection

Strategy to Portfolio

KPIs:• IT Service Value• IT Service Gap

Deploy• Release plan• Deployment assets• Change and

configuration process• Knowledge

management• App monitoring

Develop• Technical policy• Development (Agile,

iterative, waterfall…)• Source & set up dev

environment

Requirements

• Business process model

• User experience• Functional & technical

• Functional: desktop, web, mobile

• Performance: desktop, web, mobile

• Security: static, dynamic

Test

Requirement to Deploy

KPIs:• R2D Cycle Time• Requirements ‘Churn’• Production Defects

Measure & charge• Chargeback /

showback• Cost transparency • Influence demand• Surveys and ratings

Order a service• Portal / IT engagement• Personalized experience• Self-service

Define & publish• Repeatable service• Standardization• Alignment with business

objectives

• Integrate with incident, change, asset & demand

• Automate provisioning & status update

Route & fulfill

Request to Fulfill

KPIs:• Cycle Time• Cost/Service

Resolve• Implement change• Verify recovery• Close records

Diagnose• Root cause• Severity & business

impact• Define escalation path• Auto-fix common

issues

Detect• Events, alarms &

metrics from everything• User issues• Relationship among

events

• Change request• Risk analysis• Approvals

Change

Detect to Correct

KPIs:• MTTR• MTBF


Without service backbone, it’s impossible to create value and measure outcomes

Service Lifecycle: The Value Chain “Back Bone”

Strategy toPortfolio Requirement

to Deploy

Request toFulfill Detect to

Correct

Conceptual Model Physical Model

Drive Value Creation

Traceability, Insight and Measurement

Logical Model

Service Catalog

Entry

Logical Service

Blueprint Service Release

Service Release

Blueprint

Service

BlueprintActual Service

(CI)

Desired Service

(CI)


Start with IT management use cases to build the proper business model

Our Approach to a Comprehensive Architecture

Functional Model

•What IT does, not how•Based on use case, best practice, and standards

Lifecycle

Model

•Service Lifecycle with continuous Assessment, Integration, Delivery, and Operations

Information Model

•Identify key controlling IT artifacts.•Definition of artifacts lifecycles according to lifecycle model.

Integration Foundation

•Key integrations, based on artifacts•Link Information model with Lifecycle model. Foundational Integration Layer (key control points)

Common Data/Information Model

Common Lifecycle Model

Functional Model


Test Mgmt.

Release Mgmt.

Project Delivery mgmt.

Service Monitoring

Prob Mgmt.

Configuration Mgmt.

Event Mgmt.

Incident Mgmt.

Billing/Chargeback

Subscription Mgmt.

Request & Routing Mgmt.

UsageMgmt.

Catalog Mgmt.

Change Mgmt.

Deployment Mgmt.

Service Development

Mgmt.

Defect Mgmt.RequirementMgmt.

Service Design Mgmt.

Policy Mgmt.

Demand Mgmt.

Proposal Mgmt.(Investment)

Service PortfolioMgmt.

Business Architecture

Reference Architecture – An IT Functional Model

Diagnostic Remediation

Build Mgmt.

IT Architecture Mgmt.

Requirementto Deploy


RequirementMgmt.

Test Mgmt.

Release Mgmt.


Service Monitoring

Prob Mgmt.

Configuration Mgmt.

Event Mgmt.

Incident Mgmt.

Billing/Chargeback

Subscription Mgmt.


UsageMgmt.

Catalog Mgmt.

Change Mgmt.

Deployment Mgmt.

Service Development

Mgmt.

Defect Mgmt.


Policy Mgmt.

Demand Mgmt.



BusinessArchitecture

Service Catalog

Entry

Reference Architecture – The Service Model Overlay

Actual Service

(CI)

Service Release

Blueprint

Logical Service

Blueprint

Desired Service

(CI)

Service Release

Conceptual Service

Conceptual Blueprint


Build Mgmt.




RequirementMgmt.

Test Mgmt.

Release Mgmt.


Service Monitoring

Prob Mgmt.

Configuration Mgmt.

Event Mgmt.

Incident Mgmt.

Billing/Chargeback

Subscription Mgmt.


UsageMgmt.

Catalog Mgmt.

Change Mgmt.

Deployment Mgmt.

Service Development

Mgmt.

Defect Mgmt.


Policy Mgmt.

Demand Mgmt.




Service Catalog

Entry

Reference Architecture – The Information Model Overlay

Business service

Policy

Demand

IT Contract

ITProject Test

Case

Defect

Release Package

Source

Requirement

Subscription

Fulfillment

RequestUsage record

Chargeback

Record

RFC

offer

Service Monitor

IncidentProblem

Event

Actual Service

(CI)

Service Release

Blueprint

Logical Service

Blueprint

Desired Service

(CI)

Service Release

Conceptual Service



Runbook

Build Mgmt.

Deployment

Package

Design Package


IT Architect

ure



Test Mgmt.

Release Mgmt.


Service Monitoring

Prob Mgmt.

Configuration Mgmt.

Event Mgmt.

Incident Mgmt.

Billing/Chargeback

Subscription Mgmt.


UsageMgmt.

Catalog Mgmt.

Change Mgmt.

Deployment Mgmt.

Service Development

Mgmt.

Defect Mgmt.RequirementMgmt.


Policy Mgmt.

Demand Mgmt.




Service Catalog

Entry

Reference Architecture – Integrations & Dependencies

Business service

Policy

Demand

IT Contract

n:m

n:1

1:n

1:n

ITProject Test

Case

Defect

Release Package

Source

Requirement

1:n

n:m

n:m

n:m

1:n 1:n

1:n

1:n

n:1

Subscription

Service Catalog

Entry

Fulfillment

RequestUsage record

Chargeback

Record

RFC

offer

n:1

1:n

1:n

1:n

n:1

n:1n:1

Service Monitor

Incident

n:m

n:m

1:n

n:1

n:1

n:1

n:1

n:1

Problem1:1

Event

Actual Service

(CI)

Service Release

Blueprint

Logical Service

Blueprint

Desired Service

(CI)

Service Release

Conceptual Service



Runbook

1:1

Build Mgmt.

Deployment

Package

Design Package


IT Architect

ure

1:n

1:n

1:n

1:n

n:m

1:n



17

Strategy to Portfolio


Strategy to Portfolio Lifecycle

Monitor & change

• Optimize portfolios

• Communicate value

• Evaluate benefit realization

Demand

• Consolidate demand

• Create business cases

• Business value, risk, costs, benefits & resources

Strategy

• Define objectives

• Financial planning

• Set up policies and guidelines

• Enterprise architecture

• What-if-analysis

• Rationalize portfolio

• Ensure governance

• Allocate resources, fund and charter projects

Selection

Executive Scorecard

Project & Portfolio Management

Application Portfolio Management

Enterprise Manager


Strategy to Portfolio Functional ModelThis work is based upon material developed and published by the IT4IT Consortium


20

Requirements to Deploy


Requirements to Deploy Lifecycle

Deploy

Release plan

Deployment assets

Change and configuration process

Knowledge management

App monitoring

Develop

Technical policy

Development (Agile, iterative, waterfall…)

Source & set up dev environment

Requirements

Business process model

User experience

Functional & technical

• Functional: desktop, web, mobile

• Performance: desktop, web, mobile

• Security: static, dynamic

Test

Agile Manager

Application Lifecycle Management

Quality Center

Performance Center

Service Virtualization

Dev integrations

Business Service Mgmt.

Service Mgmt.

HP Anywhere

Fortify Continuous Delivery Automation

Executive Scorecard


Requirement to Deploy Functional ModelThis work is based upon material developed and published by the IT4IT Consortium


23

Request to Fulfill


Request to Fulfill Lifecycle

Measure & charge

Chargeback / showback

Cost transparency

Influence demand

Surveys and ratings

Order a service

Portal / IT engagement

Personalized experience

Self-service

Define & publish

Repeatable service

Standardization

Alignment with business objectives

• Integrate with incident, change, asset & demand

• Automate provisioning & status update

Route & fulfill

Asset Management

Service Management

Cloud Service Automation

Automation & Orchestration

Executive Scorecard


IT Service Catalog: Converged Infrastructure Deliverables

Storage

Servers

Networking

SAAS

IAAS

PAAS

Security

Management software

Software Services

POD

REUSE, OPEN, COMMODITIZED, AUTOMATED DELIVERY


Request to Fulfill Functional DiagramThis work is based upon material developed and published by the IT4IT Consortium


27

Detect to correct


Resolving Problems in Production: Detect to Correct

Resolve

Implement change

Verify recovery

Close records

Diagnose

Root cause

Severity & business impact

Define escalation path

Auto-fix common issues

Detect

Events, alarms & metrics from everything

User issues

Relationship among events

• Change request

• Risk analysis

• Approvals

Change

Business Service Management

Universal CMDB, Universal Discovery

Automation & OrchestrationService Manager

Network Management

Systems & Storage Management

App Performance Management

Ops Analytics & Intelligence

Executive Scorecard


CLIP: Mature Incident Management Process for Detect to Correct

As Is

App Response Time Slow

J2EE DB Connection Failing

Oracle Slow Query Time Ticket #3

Ticket #1

Ticket #2

App Expert

Java Expert

DB ExpertManual

ResolutionProcess

Human Error re-work

CloseIncident

DatabaseProblem

CloseIncident

Automatic Resolution

Flow

Runbook resolution process

Automatic resolution

Closed Loop

Incident Process

App Response Time Slow

J2EE DB Connection Failing

Oracle Slow Query Time

Cause

Symptom

Symptom

Auto Event Correlation

Event correlation

Ticket #1

DB Expert or Operations

Bridge

Auto assignment


Detect to Correct CLIP : Closed Loop Incident Process


RequirementMgmt.

Test Mgmt.

Release Mgmt.


Service Monitoring

Prob Mgmt.

Configuration Mgmt.

Event Mgmt.

Incident Mgmt.

Billing/Chargeback

Subscription Mgmt.


UsageMgmt.

Catalog Mgmt.

Change Mgmt.

Deployment Mgmt.

Service Development

Mgmt.

Defect Mgmt.


Policy Mgmt.

Demand Mgmt.




Use Case: DevOps


Build Mgmt.


Requirement to Deploy

2

1

3

5

4

6Business involvement defines demand & requirements as Epics & stories

Implement Sprint vs. Project planning

Design in automation & portability 7

Automate Testing for- Unit- Functional- Performance- Integration- Security

Automated / Assisted Deployment

Leverage in combined Backlog Management

Automated Build process

8

Automatically updated topology


Measuring Success in terms of Effectiveness and Efficiency

Detect to Correct – KPIs critical for CLIP

Event ManagementService

MonitoringIncident

Management

Diagnostics and Remediation

• Size of current incident backlog for each

service

8

8

• Number and percentage of major incidents for

each IT Service

7

7

• Number of incidents resolved without impact to

the business

6

6• Number and percentage of events

that require human intervention

3

3

• Number and ratio of events

compared to number of manually

created incidents

4

4

• Number and percentage of events

that indicate potential reliability or

availability issues

5

5

• Number of events/alerts

generated without actual

degradation of service

2

2

• Number and percentage of

repeated or duplicate events

1

1

Change Management

• Percentage of changes creating outages9

9


Detect to Correct

Detect to Correct – A maturity model

MonitoringNetwork, server, storage Virtual User experience Service viewpoint Hybrid

Event Independent NOCs Operations bridge Correlation AutomationContinual service improvement

Incident Workgroup focusConsolidated service desk

Linked to Event, Problem, Config

SLM, self-service & scorecard

Linked to supplier

Remediation Expert based Some runbooks Many runbooksRunbooks at deployment

Automation

Change Expert based For key changes Dependency awareService, config & asset aligned

Linked to supplier

Configuration Discovery Dependency maps SACM Service models Linked to deploy

ReactiveControl

ManageService-aligned

Business partner


Detect to Correct Functional Diagram

This work is based upon material developed and published by the IT4IT Consortium


Reference Implementation: Detect to Correct


36

FoundationalBuilding Blocks


Download: http://support.openview.hp.com/sc/solutions/index.jsp#tab=tab3

Support site: Over 450 Supported Integrations

http://support.openview.hp.com/sc/solutions/index.jsp


Common data model for HP Software Products

UDM – Universal Data Model

Used for:

Integrations

Common Vocabulary and protocol

Aligned to industry standards (ITIL, CIM, COBIT)

Example model

Public Site: https://hpln.hp.com/group/universal-data-model

https://hpln.hp.com/group/universal-data-model


Conclusions

New style of IT puts service at the center – equal emphasis on delivery and consumption

Reference Architecture is process & tool agnostic – use appropriate process, mature function, keep artifacts / work flowing

Managing full service and information lifecycles are critical

Functional components produce/consume artifacts that power the service lifecyclecontinuously

End to end traceability connects IT to expected business results


Proposed Strategic Activities – Next Steps

Strategic Roadmap & Planning

Rationalization Exercise

Maturity Assessment

Typical Assessments and Activities leveraging the Reference Architecture


Workshop focus and Milestones to be determined in Workshop 1

Example Workshop Milestones and Activities

Workshop 1

•“IT as Business” review

•Begin “as-is” Detect to Correct assessment

Workshop 2

•Detect to correct deep-dive

•Began Request to Fulfil t “as-is”

Workshop 3

•Completed Detect to correct “as-is”

•Request to Fulfill deep-dive

Workshop 4

•Reviewed detect to Correct “To-Be” (CLIP)

•Propose change by function

•Complete Request to Fulfil “as-is”

M1 M2 M3 M4


IT spend per % of revenue: %10 (Best in class = 3%)

Example Value Stream Prioritization

StrategyService

PortfolioDemand Selection

Plan & Design

Develop Test Deploy

Define & Publish

Subscribe Fulfil Measure

Detect Diagnose Change Resolve

?

?

2

1

Not Evaluated

Medium Maturity

Low Maturity

High Maturity

Strategy to IT Portfolio – Growth & Risk

Requirements to Deploy – Growth & productivity

Request to Fulfil – Productivity & Growth

Detect to Correct – Risk & Productivity

ProductivityGrowth

CostRisk

Corporate Priorities2

1

3

4

1a 1b

2b

Priority = maturity / Step KPI Impact


Test Mgmt.

Release Mgmt.

Project Delivery

mgmt.

Service Monitoring

Prob Mgmt.

Configuration Mgmt.

Event Mgmt.

Incident Mgmt.

Billing/Chargeback

Subscription Mgmt.


UsageMgmt.

Catalog Mgmt.

Change Mgmt.

Deployment Mgmt.

Service Development

Mgmt.

Defect Mgmt.

RequirementMgmt.


Policy Mgmt.

Demand Mgmt.



BusinessArchitectur

e

Example Functional Maturity Assessment

Business service

Policy

Demand

IT Contract

n:m

n:1

1:n

1:n

ITProject Test Case

Defect

Release Package

Source

Requirement

1:n

n:m

n:m

n:m

1:n 1:n

1:n

1:n

n:1

Subscription

Service Catalog

Entry

Fulfillment

RequestUsage record

Chargeback Record

RFC

offer

n:1

1:n

1:n

1:n

n:1

n:1n:1

Service Monitor

Incident

n:m

n:m

1:n

n:1

n:1

n:1

n:1

n:1

Problem1:1

Event

Actual Service (CI)

Service Release

Blueprint

Logical Service

Blueprint

Desired Service (CI)

Service Release

Conceptual Service


Diagnostic Remediatio

n

Runbook

1:1

Build Mgmt.

Deployment Package

Design Package


IT Architectur

e

1:n

1:n

1:n

1:n

n:m

1:n

Medium Maturity

Low Maturity

High Maturity

StrategyService

PortfolioDemand Selection

Plan & Design

Develop Test Deploy

Define & Publish

Subscribe Fulfil Measure

Detect Diagnose Change Resolve

Dependencies

Dep

end

encies

Dep

end

encies

Dep

end

encies

Dep

end

encies


Example D2C Rationalization


Example Service Monitoring Recommendation

1. Route all monitoring through BSM (RTSM) to capture all events• Generate complete metrics view• Necessary for CLIP processing in correlation and automation

2. Reduce event source tools• Disparate drives greater cost and increased management overhead

3. Longer term: driver pagers from event management vs. monitoring directly


Test Mgmt.

Release Mgmt.

Project Delivery

mgmt.

Service Monitoring

Prob Mgmt.

Configuration Mgmt.

Event Mgmt.

Incident Mgmt.

Billing/Chargeback

Subscription Mgmt.


UsageMgmt.

Catalog Mgmt.

Change Mgmt.

Deployment Mgmt.

Service Development

Mgmt.

Defect Mgmt.

RequirementMgmt.


Policy Mgmt.

Demand Mgmt.



BusinessArchitectur

e

Example Functional Maturity Assessment

Business service

Policy

Demand

IT Contract

n:m

n:1

1:n

1:n

ITProject Test Case

Defect

Release Package

Source

Requirement

1:n

n:m

n:m

n:m

1:n 1:n

1:n

1:n

n:1

Subscription

Service Catalog

Entry

Fulfillment

RequestUsage record

Chargeback Record

RFC

offer

n:1

1:n

1:n

1:n

n:1

n:1n:1

Service Monitor

Incident

n:m

n:m

1:n

n:1

n:1

n:1

n:1

n:1

Problem1:1

Event

Actual Service (CI)

Service Release

Blueprint

Logical Service

Blueprint

Desired Service (CI)

Service Release

Conceptual Service


Diagnostic Remediatio

n

Runbook

1:1

Build Mgmt.

Deployment Package

Design Package


IT Architectur

e

1:n

1:n

1:n

1:n

n:m

1:n


Medium Maturity

Low Maturity

High Maturity


Example Business Capabilities AssessmentImportance-weighted GapHighest HighMediumLow

Sample Capability Map with Weighted Strategic Gaps


48

Thank you

Running IT as a Business: Overviewc.ymcdn.com/sites/ Process Classification Framework IT is one Portion of an Organization APQC PCF ITIL COBIT TOGAF ... configuration process • Knowledge

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