Business white paper

Be a multi-
sourced
IT services
broker.
HP Service Integration
and Management
Table of contents

3 Introduction
3 The business has already embraced multi-sourced services.
3 Short-term gain, long-term pain
4 The CIO as an IT service broker
4 Critical capabilities for an IT service broker
5 Taking charge and working with HP on service integration and management
5 Governance and process—SIAM f­ ramework and capability model
6 Technology—HP IT Performance Suite software
7 People—management of organizational change and training
7 SIAM solution benefits
8 Getting started
8 Conclusion
8 Learn more
Introduction
Today’s organizations view IT as just another essential business
service to be delivered on demand like energy, human capital,
and financing. Behind the scenes, IT professionals struggle to
deliver seamless, consistent, and cost-effective IT and application
services, flexibly serving short-term business needs but aligned to
long-term ­corporate goals.
Key business processes are now enshrined in IT, increasing the
pressure for IT to provide innovative services more quickly and
efficiently. Additionally, delivering s­ ervices is becoming more
complex. Business process outsourcing, rising globally1 5 percent
annually, has replaced many IT processes previously delivered
in house. Analysts predict enterprise cloud services will be used
by eight out of 10 of the Fortune 1,000 companies. Both provide
valid alternatives to on-premises infrastructures and in-house IT
resources, but require sophisticated integration and management
of IT services.
Even now, despite decades of progress on IT best practices via
service management and ITIL, delivering to strict performance
levels eludes all but a few world-class IT organizations. Wrestling
this growing mixture of delivery platforms (cloud and on premises),
working practices (internal and from outsourcers) with multiple
vendor service contracts to build a coherent service portfolio is one
of the most difficult challenges facing senior CIOs.
However, this new multi-vendor “supply chain of IT” offers the
best opportunity in a decade for IT to strike up a new relationship
with its internal customers—one based on the value of the service
delivered, rather than just the applications and infrastructure it is
entrusted to manage. This paper explores how CIOs can seize the
opportunities offered by a cloud-enabled multi-supplier service
delivery chain.
The business has already embraced
multi-sourced services.
Businesses realize that success depends on having the right IT
services available at the required service levels when the business
needs them. Enterprise cloud IT services have been mainstream
for some time and the economic arguments for this method of
delivering IT via external services are unavoidably compelling.
Budget holders now routinely source IT services and IT-enabled
business processes from outside the organi­zation. Sourcing basic IT
services such as storage capacity, telecommunications provision, or
computing cycles cost effectively from an external provider is easier
than requesting the internal IT department to create and provision
them. In their view, asking forgiveness is easier than permission.
1
Forrester Research, Forrsights Software Survey, Q4, 2010.
This has changed the relationship between the “con­sumers” and the
largely internal providers of IT. The ease of commissioning cloud
services provision is driving risky behavior. For instance, consumer-
level storage solutions used for enterprise data, without regard for
corporate IT policy, or consumer-level unified communications, such
as Skype or IM, bypassing corporate governance guidelines.
Increasingly the IT-as-a-service model means external IT services
compete head to head for budget with internal IT teams. Quick
wins from cloud provisioning build user confidence for more such
purchases. In fact, business groups are now adopting cloud services
five times faster than IT groups and software vendors are planning
to deliver 85 percent of new software as a service by 2012. These
trends mean that IT will likely be asked to support services it did
not provision and then be asked to support the services whether
resources are available or not.
Short-term gain, long-term pain
In the short term, the advantages of ad hoc cloud adoption are
deceptively attractive to business divisions. Flexibility and improved
time to market for new offerings are compelling capabilities.
Forrester research reports that speed of implementation
and deployment is the b ­ iggest reason for moving to an SaaS
environment.1 However, these benefits come with a long-term
cost. Externally sourced IT services require clarity within contracts
to manage the roles, responsibilities, and, most importantly, the
service levels expected and liabilities incurred by providers. As the
number of providers and externally sourced services increases, so
does the c­ omplexity of contract management, due to the inter-
dependence of the services. This can lead to a wide variance in
service levels that will negatively impact the perception of IT’s
performance and value to the business. Effective corporate IT
governance becomes extremely difficult with IT service contracts in
the hands of different business units.
And without a strategy for multi-supplier service integration and
management (SIAM), there is a real risk of “supplier sprawl,” in which
it is difficult to manage suppliers, identify how each service maps to
the business’ strategic goals, and govern the overall service delivery
to meet corporate and industry requirements. As the ­balance of power
switches from IT experts directly employed by the enterprise, to a
widening pool of external suppliers, executing their own business
strategies, the less strategic and relevant the internal IT organization
seems to non-IT executives. This creates a vicious cycle whereby IT
works to demonstrate value but lacks the ­necessary authority and
governance processes to ensure consistent quality of performance,
cost efficiency, and innovation that drives business growth.
The questions below are a useful guide to check how deeply IT is
involved in buying and integrating IT services.
3
Who really owns service integration and management?
For each major IT service provided for your businesses
who owns:
• The procurement process for IT services?

• The budget for that IT service?

• The final decision on service level agreements?

• Sign off on external supplier contracts?

• Onboarding and integrating new IT services?

• Researching new IT services?

The CIO as an IT service broker

While the business typically only cares about receiving services
reliably and on demand, the CIO is also concerned about how the
services are delivered day to day, assuring the quality of service, Critical capabilities for an
and keeping the total cost of service within expected budgets. With
a smaller proportion of IT services delivered internally, the skill set
IT service broker
required for today’s CIO must change to more of a service broker, Creating an integrated, transparent IT service supply chain requires
bringing IT service efficiently to wherever needed by the business an organization be able to assess its strategic goals and portfolio of
through a hybrid portfolio of IT services. The urgency generated by services carefully—and be able to rapidly institute change when it is
the emerging hybrid service delivery model requires the CIO and IT to required. The three steps to becoming an IT service broker are:
work across the entire spectrum of IT service sources, which include:
1. Align the IT services portfolio with the business strategy.
• In-house provisioning of traditional and internal private cloud
services (across applications, data services, and infrastructure) 2. Manage multiple suppliers and their contracts to drive effective
• Public cloud service providers and integrated IT service delivery.
• Managed service or communications service providers
3. Deliver excellence in IT services provisioning.

IT service broker capabilities

IT service broker success factor Challenge Capability required

1. A
 lign the IT services portfolio Service portfolio and demand Distinguish between core and commodity IT services. Manage demand and create the right
with the business strategy. management service portfolio mix from internal and external providers that maps to strategy.

Enterprise architecture and risk Create standard enterprise and IT architectures that flexibly support the business operating
management model and mitigate disruption through business changes, including future acquisitions.

Financial and value management Establish and compare service costs, review return on investment, and interpret value over
time at the enterprise level, not just IT.

2. Manage multiple suppliers Service sourcing strategy Identify the suppliers able to provide the services most suited for the business, reflected by
effectively. terms and conditions, business culture, and service portfolio.

Multi-supplier management to ensure Manage service suppliers and discuss their performance and relative strengths. Conduct
optimal supplier performance performance reviews, supplier comparisons, and hold effective contract negotiations.

3. D
 eliver excellence in IT End-to-end service integration, Integrate end-to-end services at required service levels. Capture service management,
services provisioning. management, and governance including operational and support activities, in governance structures and contractual roles
and responsibilities.

Service automation and optimization Automate provisioning of on-demand services from the service catalog.

Service catalog with self-sourcing Create a service catalog containing available and planned services, easily visible and
controls accessible, which can be self-sourced as required by business users.

Service integration standards Standardize governance structures, processes, management tool architecture, and interfaces
to drive ease of on-boarding providers and services.

4
IT service broker capabilities
Taking charge and working with HP on
Governance management
service integration and management
HP’s position as the world’s largest IT provider, its pioneer­ing position
Business management as the author of ITIL v3 books and industry best practices, and its
consultancy work with the most demanding IT teams globally make it
Operational service management
the ideal partner to guide your service integration and management
journey. HP Service Integration and Management solutions offer
world-class techniques, tools, and training to help IT professionals
rnance framework
Gove establish the new IT and business architectures necessary to manage
across today’s multi-vendor IT s­ ervices environment.
Proc
est man urem
HP Service Integration and Management (SIAM) capa­bility model
qu t
nt

Re llmen age en is a reference model used to streamline and reduce the cost and
me

me
Co
lfi
ge

fu complexity of global multi-supplier IT environments. Capable

mp
t

OSM interm
ana

nt

of scaling up to meet the needs of the largest clients, it can be

lian
e
Risk m

ce successfully deployed with confidence by any organization with

dia

a need to handle multi-vendor IT service provisioning and regain

te

management
Demand

control of supplier sprawl. The HP SIAM capability framework

Service
g

SIAM
base
o

is designed to help companies manage complex, multi-supplier

tal
ement

environments and derive more business value from their IT

OSM
c

Projec
OS

investment. HP SIAM transformation helps in three ways.

and

M
g

ad
a

• Governance and process—SIAM framework and ­capability model

tion

van
an

t go

ced
m

nt

re
• Technology—HP IT Performance Suite software
ica

me p
n

Fin ortin
o
n

age
na
C ati
u

man voice an g • People—management of organizational change and training

m

nc
al

cial
m

c In
e

es
o

Governance and process—SIAM

Sta
ndard
s and architectu
In this new model, changes in service requirements are reflected,
supported, and enforced for each vendor involved in providing
the services portfolio. Alignment of services and contracts may
involve a rationalization of suppliers or a re-tendering of internal or
externally provided services.
New service configurations may involve new or existing suppliers
collaborating to provide innovative end-to-end services, which none
of them could supply on their own. For instance, providing a new cloud
service may involve collaboration between a data center hosting
company, an outsourced application provider, and internal IT.
Benchmarking and comparing price and quality of service against
others, from within and outside an industry sector, can help create
a much more optimized IT service supply chain. However, obtaining
credible data can be time consuming. Without previous experience
of benchmarking service provisioning and without clear objectives
and project management, change will not produce the efficiencies
hoped for.
For best results a keen understanding of best practices and the IT
implications of process redesign, even at this stage, is important. This
may dictate an operating model where service integration, perhaps
for the first time, becomes the key role for senior IT managers.
re
­framework and capability model
HP has developed the SIAM capability framework to help companies
manage complex, multi-supplier environments and derive more
business value from their IT investments.
• Governance management—outlines the governance framework
across suppliers and interface to the customer’s business units. It
is designed to help you align strategy and operations to business
goals, comply with corporate, architectural, and regulatory
requirements, and establish service level requirements.
• Business management—describes demand, procurement, and
service request management handling as well as the engagement
of suppliers. This also includes how to perform cost benefit
analysis to influence the service portfolio, investment, and
sourcing decisions.
• Operational service management—addresses foundational
processes for service operations and transitions that
require integration across internal IT groups and third-party
providers in order to assure the required end-to-end service
quality and performance. These ITIL-based service management
processes will be ­specifically tailored to reflect client specific
integration requirements.

5
HP IT Performance Suite

Strategy, planning, and governance

Executive Scorecard

IT Financial Management Project and Portfolio Management Application Portfolio Management Workforce and Vendor Management

Security intelligence and risk management

Software Security Assurance (SSA) Security Information and Event Management Network Security

Application lifecycle management Operations management Information management

Application Quality Application Governance Data Center Application IT Service Network Security
Management Automation Availability and Management
Performance
Information Archiving
Requirements Performance Validation Client System Asset
Management Automation Management Management
Enterprise Records Management
Development Application Security Network
Management Validation Management

IT performance suite foundation

Extensibility, Orchestration, and Analytics

Technology—HP IT Performance Suite
software
HP IT Performance Suite software automates the critical business
processes that provide IT leaders with the transparency and
governance needed to successfully manage and optimize a multi-
supplier hybrid environment. It automates and streamlines multi-
vendor service deployment, management, tracking, and reporting.
The HP IT Performance Suite offers an open extensible data model
and bundled integration capabilities. Based on best-practice
frameworks like ITIL, the HP IT Performance Suite is designed to
inter-operate with existing client products and IT standards.
HP Executive Scorecard provides IT executives with role-based views
into real-time financial and non-financial IT performance and priorities.
HP Project and Portfolio Management Center software helps
manage service demand across the business.
HP Business Availability Center and HP Operations Center
software solutions provide service operations and highlight
service health, verifying the performance of internal and external
services provisioning. They also enable automated service
provisioning on demand.
HP Universal CMDB, HP Service Manager, Release Control,
and HP Asset Manager solutions support service assurance and
asset management.

HP Quality Center and Performance Center software help test new

services being introduced for functionality and performance.

6
People—management of organizational
change and training
IT transformation and the introduction of new technology,
governance, and processes will invariably be seen as a disruption
to end users, which can lead to adoption resistance. Managing the
change formally will help create a smoother implementation by
providing a process and framework for the transition, including
effective communications that continuously engage all stakeholders
and end users.

HP Management of Organizational Change (MOC) Methodology

guides SIAM clients through a four-step change process:
• Mobilization: understanding a client’s environment, creating the
change team and its change agent structure, and engaging sponsors
• Readiness: drives ongoing stakeholder engagement, development
of performance reviews and benchmarks, and overall
communication strategy and plans
• Execute: rolling out communication plans, relationship and
teamwork development, and supporting training initiatives
• Realization: measuring the performance of the new system,
capturing and reviewing lessons learned, review of needed skills,
and further fine tuning of processes and process conformance

Training and establishing the right new skills and competencies
are also part of an effective transformation initiative. HP Education
provides client-tailored training solutions for the SIAM processes and
service integrator layer of HP IT Performance Suite software. These
courses can be delivered off-site or on client premises. In addition,
HP is able to create on-line and recorded on-demand training.
SIAM solution benefits
Reduced complexity: The SIAM approach allows companies to
manage suppliers based on a single standardized framework reducing
complexity and easing the benchmarking of suppliers and services.
Reduced cost and effort: Standardized, modularized, and lean
multi-supplier governance and management structures facilitate
measurable cost reduction for both company and its suppliers.

Increased transparency: Structured and reliable information

flows from all relevant service areas and suppliers, and consistent,
service-oriented, and fully customizable management reports.

Clear accountability: Clear service accountability across all

suppliers using pre-defined roles and responsibilities, highlights
agreed obligations and sanctions.

Business relationship management: A powerful escalation and

communication model and related mechanisms, processes, and
procedures for business-triggered management and direction
across all suppliers are provided.

Risk management: A mature and proven governance, risk, and

compliance environment for the company and its suppliers avoids
service disruptions or regulatory breaks.

7
Getting started
HP Software Professional Services offers two services to help clients
confirm their goals and plan their SIAM transformation activities in
order to operate an optimized multi-sourced service delivery model,
including sourcing of cloud services.
SIAM transformation workshop is a one-day consulting workshop
to clarify scope and build a high-level roadmap.
SIAM roadmap service is a four- to eight-week service that supports
the definition, planning, and future decision making of the required
SIAM transformation consisting of four key stages:
1. F uture-state description, starting with the business impact
2. Current-state assessment establishing the gap with the future state
3. Project and schedule creation of the program to transform the
organization
4. Business case with quantified value/benefit of the future state
For clients seeking a solution that is completely managed and
operated by HP, can offer SIAM as an outsourced service.
Get connected
hp.com/go/getconnected Share with colleagues
Get the insider view on tech trends,
support alerts, and HP solutions.
© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and
services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors
or omissions contained herein.
4AA3-9091ENW, Created January 2012, Updated August 2012, Rev. 1
Conclusion
IT-savvy employees increasingly reject poor service levels,
demanding timely IT services provided by whoever can deliver
operational excellence, customer intimacy, and drive innovation
and product leadership. HP SIAM offers customers the opportunity
to avoid the inevitable pitfalls of “supplier sprawl” that will
result in the race to procure valuable new services. HP Software
Professional Services has over twenty years’ experience in service
management for large, complex IT environments, providing
its customers’ access to best-practices in service integration
and management. Additionally, HP consultants are experts in
the HP IT Performance Suite software and have direct access
to HP R&D, ensuring latest product capabilities are applied to
customer environments. HP Software Professional Services
offers an end-to-end-consulting portfolio that combines
strategic advisory services, process design, management of
organizational change, and solution implementation ­services to
help companies manage complex, multi-supplier environments
and derive more business value from their IT investments.
Learn more
For more information about how HP Software Professional Services
can help you manage multi-supplier service integration, please
contact the HP Software Professional Services representative in
your region. Or visit the following websites:
hp.com/go/SIAM
hp.com/go/hpswprofessionalservices
hp.com/go/hpexperts