IT Transformation

Moving Beyond Service

Management to a
Strategic Business Role
August 2013

kpmg.com
KPMG surveyed over 275 attendees at
ServiceNow’s Knowledge13 conference,
here is what we learned.
Key Survey Insights
& Critical Findings
Taking advantage of IT’s emerging capabilities
In industries from financial services to healthcare, energy to
retailing, organizations are recognizing that the IT function can be
used to deliver greater strategic value. But knowing what other
organizations are doing is only the beginning of the story. KPMG
wanted to learn more about how companies were approaching IT
transformation.
From our perspective, it’s clear that more and more IT
organizations are moving beyond IT service management and
into a more strategic business role – one in which IT is able not
only to support today’s dynamic business environment, but to
help evolve their service delivery model.

Our survey results bear this out. To help gain a greater

understanding about how the IT function is evolving, we
surveyed more than 275 IT professionals attending the
ServiceNow Knowledge13 conference. We learned that there are
several emerging capabilities that respondents felt were critical in
shaping this new strategic role of IT.

Following are the results and more information about these four
critical capabilities.
3 | IT Transformation: Moving Beyond Service Management to a Strategic Business Role
IT leverages platform as a
service (PaaS) capabilities
The agility, scalability and operational
efficiency made possible by PaaS
has led to its’ widespread adoption
within many enterprises and our
survey data during K13 underscores
this acceleration. Many organizations
have started applying the ServiceNow
platform capabilities to domains
beyond IT service management
(ITSM) to address similar service
management requirements in other
business areas, among them human
resources, accounts payable, and
research and development. Leveraging
a common technology platform
such as ServiceNow for the service
management across the enterprise
allows organizations to develop a
consistent approach and look and
feel to the delivery of all enterprise
services which enhances operational
efficiencies, improves quality and
drives high user satisfaction rates.
As IT gains more traction as a business Additionally, even though the
partner, and the business confidence enablement of complex business
in IT’s agility increases, IT will begin needs may leverage the ServiceNow
to support more complex business ITSM application instance, it would
service applications on the platform be prudent to map the application
and we expect this trend to ramp architecture within the ServiceNow
dramatically higher in the coming year. configuration management database
(CMDB), leverage the Release
Key PaaS considerations
Management application for
and takeaways
managing features and bugs against
As ServiceNow PaaS evolves into
planned releases, and leverage the
the platform of choice for complex
knowledge management application
business service management
for dissemination of the application
applications, it will become all the
information to the end-users and
more critical for IT to establish strong
support teams as part of the transition
governance around the administration
services. Moreover, the existing
and maintenance/support of the
Service Catalog, Request Fulfillment,
ServiceNow instances. This will help
Incident Management, and Problem
prevent issues that can be caused by
Management applications should be
upgrades run by ServiceNow, resulting
leveraged and enhanced in order to
in unforeseen errors. IT organizations
support the application effectively
should establish strong enhancement
within operations.
request controls and strong release
management frameworks to manage
the environment.

IT transformation brings with it
increasing needs for software asset
management to help manage IT
costs, limit risks related to software
ownership and use, and increase IT
and end-user efficiencies. An effective
SAM program enables companies to
better manage the infrastructure and
processes that control and protect
software assets throughout the life
cycle. This can significantly reduce
software expenditures through better
license management and reduce audit
risk through better understanding of
controls.
As IT budgets shrink and software
vendors ramp up their audit programs,
companies that ineffectively manage
their software assets could be
vulnerable – unaware of where cost
cutting measures can be taken and
exposed to costly compliance issues.
IT Transformation: Moving Beyond Service Management to a Strategic Business Role | 4
Software asset management
(SAM) emerges as a priority
Many of our survey participants already
recognize the strategic value to their
organizations of cohesively managing
software assets. Nearly half (47%) said
they currently are using an IT asset
management tool to manage corporate
hardware and/or software assets.
However, 53 percent said they are not
yet leveraging this capability.
Key SAM considerations
and takeaways
SAM is about more than just tools.
Beyond the repositories necessary to
track and manage software assets,
SAM relies on sound integrations with
key systems, including procurement,
human resources/identity access
management, and discovery tools.
Trained and knowledgeable licensing
resources, good lifecycle processes
and enforceable policies are essential
as well.
SAM also requires collaboration across
various departments and functions
of an organization, spanning lifecycle
processes from planning and request
through retirement and disposal. To
avoid roadblocks, areas of weakness
should be identified and rectified early
on.
A careful focus on scope, workload
assessment, and prioritization of
effort are also imperative. This can
include determining: which vendors
are high audit risk; the current
software deployment footprint; which
vendors make up the majority of IT
expenditures; and which contracts are
up for re-negotiation in the near future.
5 | IT Transformation: Moving Beyond Service Management to a Strategic Business Role
Most are considering IT governance,
risk and compliance (GRC)
applications
Today’s enterprises face a multitude
of risk and compliance challenges
that affect a broad range of business
functions. These challenges include
increasing regulatory compliance
requirements, as well as new risks
and security exposures brought on
by business complexity and the use
of new technology. Reputational risk
is another pressure many businesses
face. Today’s advanced GRC
applications meet these challenges
by providing a top-down, risk-based
approach across multiple functions
– operations, finance, information
technology, compliance, and regulatory
teams.
GRC applications offer a host of
benefits. They provide cost efficiencies
by replacing costly patchworks of
process monitoring and regulatory
reporting tools and instill agility into
critical governance efforts. They
also afford organizations significant
value in GRC data that can inform
decision-making to aid boards, audit
committees, and corporate leadership
in addressing many risk exposure and
other diverse concerns.
Through the use of a common set of
risk taxonomy, issues management,
and reporting processes, GRC
applications enhance consistency,
transparency, and operational
efficiencies. Increasingly, organizations
look to GRC applications to coordinate
an enterprise’s key components:
their risk profile, culture and
behavior, governance, organization,
infrastructure and enterprise
assurance.
The use of GRC applications is a
fast-growing trend borne out in
our survey, in which nearly three-
fourths of survey participants (73%)
indicated their IT organizations are
considering leveraging IT governance,
risk management and compliance
applications.
Key GRC considerations
and takeaways
Although GRC generally is considered
in the context of technology tools, GRC
actually has the capability to become
pervasive across a business, at all
levels of its operations. It is vital, then,
that GRC be closely aligned with an
organization’s strategy and mission,
and that setting priorities on IT risks
is accomplished collaboratively, with
input from all stakeholders. Policies
and controls should be created and
mapped to regulations and internal
compliance requirements. It is also
important to assess whether controls
are actually in place and working.
Once strengths and weaknesses are
clarified, corrections and adjustments
can be made.

Technology Business Enablement
More and more enterprises are looking
to manage IT from a business results
and value perspective. In order to do
this, the organization must have a clear
picture of its services from both cost
and quality perspectives. Technology
business enablement harnesses a
number of key capabilities, all of them
needing maturity and integration with
one another, to provide CIOs with
a complete panorama of IT service
value and costs across the enterprise.
Among these key capabilities are
IT financial management (ITFM),
analytics, and service provider
management. Our survey shows that a
significant number of IT organizations
are embracing all three to varying
degrees.
IT financial management (ITFM) tools
provide broader insights
IT financial management (ITFM)
software brings costs into sharp focus
and provides transparency into a host
of key financial metrics and analytics,
data vital to helping the CIO run the
IT Transformation: Moving Beyond Service Management to a Strategic Business Role | 6
(TBE) gains ground
business of IT. More than a quarter
of the IT professionals we surveyed
indicated their organizations already
are using ITFM tools.
Advanced analytics and service
provider management just taking off
IT organizations operate a number of
tools to monitor and manage their IT
services and processes. Within these
tools is a wealth of information on the
technology business. The analysis of
this data, which we call IT intelligence,
is a trend that is early, but gaining
momentum. The KPMG survey found
that advanced analytics are, as yet,
underused, with only 12 percent of
respondents taking advantage of this
TBE capability. A slightly larger number
– one-fifth of survey participants – are
using their current platform to manage
their portfolio of IT service providers.
We believe these are important
emerging trends that have significant
potential for the near future.
Key TBE considerations
and takeaways
IT intelligence, by definition, requires
an assessment of what metrics and
analytics are needed by the CIO
in order to make highly informed
decisions. This is a key aspect of a
process that begins with sufficient
groundwork, staffing and buy-in by all
stakeholders.
In addition, while both ITFM and
analytics are critical components of
the business of IT, indications are that
many enterprises may be lacking in the
robust, scalable tool sets needed to
support, automate and ensure these
practices.
With multiple options for service
delivery (e.g., internal, hosted,
cloud) and support (e.g., internal
or outsourced), IT organizations
in many cases are functioning as
Service Integrators; pulling together
components from a number of
providers into a seamless, business-
facing service. This makes the
comprehensive management of
diverse service providers imperative.
One function of a strong TBE program
is an integrated capability of processes
and tools to manage and drive value
from those service providers.
7 | IT Transformation: Moving Beyond Service Management to a Strategic Business Role

Conclusion

Our survey shows many IT
organizations, are in the midst
of IT transformation, taking their
organizations well beyond IT service
management and into a strategic
business role. In shaping this
transformation, they are leveraging
a number of new and emerging
capabilities, including PaaS, asset
management, and GRC applications.
They also are in the beginning stages
of conceptualizing a group of key
capabilities under the umbrella of
technology business enablement.
These capabilities, which are just
beginning to be leveraged, include
software license management, IT
financial management, and advanced
analytics.
Clearly, IT organizations are not only
moving forward with technology,
but elevating their role as a critical
business partner. They are tapping
powerful technology platforms such
as ServiceNow to support their
holistic approach to managing the IT
organization as a business.

To read more about KPMG & ServiceNow, visit the ServiceNow website:
https://www.kpmg.com/US/en/about/alliances/Pages/servicenow.aspx
 IT Transformation: Moving Beyond Service Management to a Strategic Business Role | 8

KPMG Thought Leaders

KPMG teams with ServiceNow, our Alliance Partner, to help enterprises
find and sustain value in their IT spending. As a leading provider of cloud-
enabled IT transformation solutions, KPMG provides implementation
services and process consulting for ServiceNow enterprise customers.

Rick Wright
Principal Mitch Kenfield
Managing Director
617.988.1163
richardwright@kpmg.com 404.222.3295
mkenfield@kpmg.com
Two Financial Center
60 South Street 303 Peachtree Street, N.E.
Boston, MA 02111 Atlanta, GA 30308

Troy McLaughlin
Ross Rexer Manager
Managing Director
617.874.6291
773.266.4505 rtmclaughlin@kpmg.com
rrexer@kpmg.com
Two Financial Center
200 E Randolph Drive, Suite 5500 60 South Street
Chicago, IL 60601 Boston, MA 02111

Sriram Damaraju Ferdinand Hamada

Director Director

973.912.4566 212.872.3135
srdamaraju@kpmg.com fhamada@kpmg.com

150 JFK Parkway 345 Park Avenue

Short Hills, NJ 07078 New York, NY 10154
kpmg.com

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