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Creating Business Value With information teChnology
A collection of thought leadership articles on issues, best practices, and trends
Business Service Management • IT Infrastructure Library ® (ITIL® ) Best Practices • IT Financial Justification • Automated Request and Delivery of Business Services • Service Support • Service Awareness
Driving Business value anD innovation
In today’s highly competitive business world, the battle cry has been “lead, follow, or get out of the way. This constant focus on innovation has driven most corporations to seek ” a future-proof IT infrastructure that will increase revenue, reduce costs, and lower risk. You can help your company reach these objectives by following best-practice frameworks, such as the IT Infrastructure Library® (ITIL®), and managing IT from a business perspective, known as Business Service Management (BSM). In this latest issue of INNOVATION, members of the BMC Thought Leadership Council, along with other industry experts, offer guidance on ITIL and BSM based on experience gained through many deployments in real-world situations. They also talk about how to use processes and technology to achieve improved operational efficiency and other business benefits. They explore how you and your IT team can ensure that your systems and infrastructure are aligned consistently with business needs and objectives. This is critical because any IT disruptions, however major or minor, have the potential to cause significant losses to the bottom line. These experts discuss how these solutions can be used to standardize, govern, and control processes, while providing clear visibility and measurement of service level agreements and performance. This book provides useful insight into how technology can be used to help solve business problems. It covers a broad range of topics, from how to get your organization to adopt ITIL best practices, to discussing how open source technologies affect service management. Several articles explore financial-related IT issues, such as measuring return on investment, understanding return on value, and justifying the cost of the mainframe. Other articles discuss how to reduce complexity through automation, the evolution of the service desk, and virtualization. My article reviews practical guidelines for greening the data center — a topic that’s making headline news today, but will grow in importance as energy costs consume a growing percentage of the annual IT budget. I hope you enjoy this third edition of INNOVATION and that you can use it to help drive greater business value for your company. Be sure to visit www.bmc.com/thoughtleadership for more information about white papers, podcasts, articles, and other material by the council members. Tom Bishop Chief Technology Officer, BMC Software
Driving Business value anD
© 2008 BMC Software, Inc. All rights reserved.
Business serviCe ManageMent > What Is Business Service Management and Why Should You Care? By Peter Armstrong, Corporate Strategist, BMC Software .................................... 4 > Why Delivering High-Quality IT Services Should Cost Less By Jim Grant, Senior Vice President and General Manager, Enterprise Service Management Business Unit, BMC Software ........................................................ 9 > Six Steps to Reinventing Your IT Staff By Peter Armstrong, Corporate Strategist, BMC Software .................................. 16 > Consulting Services and ITIL: When It’s Time to Bring In a Guide By Stephen Davito, Director of Consulting Services, BMC Software .................. 21 i.t. inFrastruCture liBrarY Best PraCtiCes > Moving Out of the Comfort Zone: Guiding Principles for Changing Old Habits and Successfully Implementing ITIL V3 Practices By George Spalding, Vice President of Global Events, Pink Elephant; Ken Turbitt, President and CEO, Service Management Consultancy (SMCG) Ltd.; and Atwell Williams, Solutions Architect, CTO Office, BMC Software ....................... 27 > From Data to Knowledge to Action: Delivering Business Value with a Configuration Management System By Tom Bishop, Chief Technology Officer, BMC Software, and Ken Turbitt, President and CEO, Service Management Consultancy (SMCG) Ltd. ................. 33 > Where the Bazaar Meets the Cathedral: Making ITIL, Business Service Management, and Open Source Work for Your Organization By whurley, Chief Architect, BMC Software ........................................................ 40 > Practical Lessons for Speeding ITIL Adoption: Leveraging Educational Services to Achieve Your ITIL and Business Objectives Faster By Linda Moss, Vice President, Worldwide Educational Services, BMC Software; Bronna Shapiro, Director, Solutions Marketing for Services, BMC Software; and Atwell Williams, Solutions Architect, CTO Office, BMC Software ..................45 i.t. FinanCial JustiFiCation > Proving the Value of Your IT Investment with ROI By Mary Nugent, Vice President, Service Assurance, BMC Software, and Marina Yesakova, Senior Strategic Marketing Manager, BMC Software .............. 51
.... Enterprise Service Management Business Unit........................ BMC Software ..... Chief Corporate Architect............... BMC Software ............. Vice President........taBle of Contents > Measuring IT Value with a Service-Oriented Approach Based on ITIL By Ken Turbitt......... 100 > Virtualization: Toward a Fluid Infrastructure By Herb VanHook............................ Co-founder of Remedy and Chief Technology Officer............ BMC Software ....................... President and CEO................ Business Planning.............. Chief Technology Officer......... BMC Software ............ 83 > Taking Service Beyond the Service Desk By Doug Mueller.................. CTO Office. BMC Software ............... and Marina Yesakova.. Enterprise Service Management Business Unit Customer Support...... 72 > Using Automated Application Problem Resolution to Overcome Offshoring Challenges By Doug Laney................ Service Management Consultancy (SMCG) Ltd.............. BMC Software .... Senior Strategic Marketing Manager................. Chief Technology Officer...... 67 autoMateD reQuest anD DeliverY oF Business serviCes > Five Steps to Gain Control and Manage Complexity in the Data Center Through Service Automation By Kia Behnia...................................... Vice President...... BMC Software ...... BMC Software .89 serviCe aWareness > Cut Through Alarm Clutter: Prioritizing Events to Make Business Sense By Mary Nugent. Vice President...........58 > Justifying the Cost of the Mainframe: Increasing the Business Value of the Data Center By Ralph Crosby. 78 serviCe suPPort > Customer Support: One Size Does Not Fit All By Alisa Nessler........ 95 > Practical Methods for Greening the Data Center By Tom Bishop.. 106 3 .... Mainframe Service Management Business Unit.... Director of Customer Solutions Strategy................... BMC Software . Service Assurance..............
What is Business service Management and Why should You Care? By Peter Armstrong Corporate Strategist. Typically the IT department was separated into silos according to specialization — a network group. BSM combines best-practice IT processes. Each was charged with ensuring that its part ran efficiently and could report on any technical metric imaginable. many businesses ran IT systems without understanding how the disparate systems worked together to deliver a business service. and a shared view of how IT resources directly support the business. Instead. and a separate mainframe group. they needed to focus on managing IT from a business perspective. which is known as Business Service Management (BSM). desktop applications group. A main benefit of this 4 . automated technology management. database group. BMC Software As recently as a few years ago. whether or not that metric was pertinent to the business.
change. but they often did not have the time or tools to concentrate on running IT more efficiently and effectively. do you care about how many components are involved in the transaction? Do you care if the front-end switch is working or what database management system is used on the back end? Or do you just want your money in 30 seconds? Of course you want the money. The “business” did not understand IT. Understanding all sides of the business makes it easier to meet regulatory requirements. IT is viewed as providing an essential business service delivery function. Today it’s very different. The role of IT has been elevated. A common complaint in many companies was that IT was disconnected from the business community. Instead of just delivering disparate services. That was then. and so on — are conducted from a business perspective. the value of Managing it from a Business Perspective Management expects IT to respond to problems and create new applications in anticipation of or response to market demands. BSM has evolved to address this issue. and enables staff to move from one department to another without extensive cross-training. and the IT staff did not understand the business requirements and priorities behind the systems they had to maintain. problem management. When things went wrong. accelerates training. As a result. The basis for BSM is that all IT activities — incident management. instead of just delivering disparate services. and BSM has a proven track record in delivering these results. do you complete work orders on a first-in-first-out basis and work only on the problems you know how to fix? Or do 5 . IT resources were often allocated to unproductive tasks. there was no way to know who was affected — or if it mattered. IT needs to be connected with the business. reduces conflicts over how a process is performed. IT organizations in the past mainly focused on helping other departments run more efficiently. For example. They were the cobbler’s children. monitoring. when you pull cash out of an ATM. but to make this happen. it is viewed as providing an essential business service delivery function.Business serviCe ManageMent approach is making customers happy. The business expects rapid results from IT. capacity planning. From an IT perspective.
it’s often easier said than done. it is an incredibly powerful ally when properly engaged. Unfortunately. IT is an incredibly powerful ally when properly engaged. IT often spends too much of its resources on other organizations and neglects its own. Self-service is a key part of a successful BSM integration. you’ve circled back to where you started — running separate IT silos without understanding the business. It’s also important to use service automation to streamline processes. and impact analysis — to ensure that IT is working on productive and appropriate tasks. it and management must engage in an ongoing two-way conversation that emphasizes the importance of direct it involvement in the overall strategic planning for the business. IT and management must engage in an ongoing two-way conversation that emphasizes the importance of direct IT involvement in the overall strategic planning for the business. Essentially. 6 . To achieve this insight. How Do You get there? Even when you’ve identified the need for change. and to use techniques — such as intelligent thresholding. for instance. The entire IT staff should have a clear understanding of priorities relative to this information. The result is a bundle of different tools that lack integration and provide no overview of the infrastructure. saves IT time and effort. event filtering.you address the issues that affect the most customers and jeopardize the most revenue? How do you determine the order in which to fulfill a work order when the business has a laundry list of demands for new applications? Effectively managing IT from a business perspective means that IT groups must understand how all systems work collectively to deliver services to end users and how much these services are worth to the business. IT departments can struggle for years with integration. The ability for users to implement a self-service request mechanism for IT services. Building an architecture accessible by others helps you move toward a BSM approach (business partners love this concept and it saves customers money).
backup. you may have to go back halfway through the project and rip down the walls to put in something you forgot at the beginning. At the same time. IT departments go into a full-time firefighting mode. Unless the foundation is in place. you should also look at best practices. chances are IT has wasted resources building dual data centers with redundancy. electricity. The most expensive resources going forward will be people. and how long can you live without them? What is the most important business process in your company? the correct answer may surprise you. and little or no proactive work gets done. and 24x7 operations. the Bottom line In the past. Many businesses have a linear view of their systems: Everything is equally important and must run continuously. maintenance and crew scheduling are probably more important than ticketing. In response. total panic sets in. You ensure that the foundation and basic services (gas. For an airline. What is the most important business process in your company? The correct answer may surprise you.Business serviCe ManageMent Your architecture should contain information about each system and how all systems work together. Few IT organizations looked at performance from a business perspective. what are they worth. and so forth) are in place before you start building the structure. Food service definitely comes last in terms of priorities! Is it essential to your business for all the applications to run around the clock? If the answer is no. It’s like designing a house. What are the key services that IT provides? Which ones are vital to the business. It’s difficult to maintain the competitive edge when you’re constantly reacting to crises. to see how you could improve your existing processes. 7 . When something goes awry. water. such as the IT Infrastructure Library® (ITIL® ). the IT staff focused on the “technology” part of IT. so you need to ensure that you use their time toward revenue-generating activities. Key metrics revolved around how well different pieces of the infrastructure were performing. Prioritize The first step in building the architecture is to decide what matters. 24 hours a day.
Today. The impact goes straight to the bottom line by increasing business efficiency and competitiveness and keeping IT costs under control. ensuring that every effort in IT contributes to the goals of the business. it’s a different world. marketplace. BSM is at the heart of this effort. 8 . They are using their knowledge of the business to understand which systems are critical to business operations.com/bsm. He works closely with the company’s development labs to keep them informed on customer plans and activities. BSM integrates IT with the business. particularly in the non-U. thus helping to ensure that the solutions BMC delivers are pertinent worldwide. and ensure that all systems meet end-user and customer expectations for performance. For more information about BSM.S. keep those critical systems up and running. Successful IT organizations are using metrics that relate to business strategy and goals. corporate strategist for BMC. aBout tHe autHor Peter Armstrong. is responsible for the increasingly important domain of how business and information technology need to work together. visit www.bmc. Armstrong has helped to develop the Business Service Management (BSM) approach introduced by BMC.
9 .Business serviCe ManageMent Why Delivering High-Quality it services should Cost less By Jim Grant Senior Vice President and General Manager. Experience now shows that starting from the top by focusing on the key services IT delivers to the business. and then standardizing and automating the IT processes that deliver them. but it takes a different approach to IT service delivery than the one you may be following today. You may worry that you’ll have to cut back on the quality of services so you can meet the demand. is the path to success. IT organizations around the globe are proving this approach today. and the history of similar evolutions in other industries has also shown that improving quality can cost less. What you may not realize is that quality can cost less. BMC Software It’s budget review time again and if you’re like most IT executives. you’re probably trying to figure out how you can deliver new services while reducing costs. Enterprise Service Management Business Unit.
S. If a machine that stamped out the hoods of U. the automakers’ processes centered on making sure that their expensive machines were running 24 hours a day. we’ll take a look at manufacturing. what types were needed. how many. or perspective. lessons learned from thinking Differently What can IT organizations learn from this example? The standard U. while U. a more effective approach would have involved thinking about how many cars were needed. companies still used analyses that assumed changeovers took an entire shift. and when? They then realized they could use invested capital better. they looked at the big picture: What cars did the customer want. This frame. In retrospect. they made the entire manufacturing process more efficient. and offer a wider variety of model options if they sped up the changeover process. and so on. and when? Japanese automakers. two decades later. production-line approach focused on maximizing the use of machines that required a large capital investment. how many. with higher quality. at a lower cost.In this article. automakers in Japan had achieved a changeover time of only minutes. And by speeding up changeovers. They looked at the big picture: What cars did the customer want. and the automotive industry in particular. agility. The Japanese car manufacturers looked at things holistically.S. when they were needed. One Japanese car manufacturer could change models in as little as 43 seconds! As a result. however. Many of them looked at the problem in terms of how many cars should be made in a single production run before the line changed over to a different model. automobiles cost $48 million. 10 . framed the question of manufacturing efficiency quite differently. So. the Japanese auto manufacturers achieved a competitive advantage through improved efficiency. Their production run calculations assumed that changeover time was fixed at something like six to eight hours. blocked out the idea that the changeover time itself could be cut. automakers addressed the problem of improving efficiency in the 1970s. and return on invested capital. Change Your Perspective Consider how U. to see what lessons IT organizations can learn and apply to accomplish the seemingly impossible — deliver more services.S.S. carry smaller inventories.
IT organizations placed more emphasis on the things that were producing value. Instead of spending resources on keeping excess materials on production floors. many cars sat on lots because no one purchased them. manufacturing style just described is analogous to the way IT organizations historically focused on leveraging large capital investments. When IT executives decide which processes to follow.s. manufacturers had to cut prices and offer rebates. To get these cars off the lots.S. rather than the value of the product being produced. and workin-process inventories went down. Is it putting out more fires faster? Preventing those fires from happening in the first place? Reducing costs? Increasing quality? Delivering innovative new services? What is the “frame” that best suits the business? several things improved profitability as u.Business serviCe ManageMent What does each way of thinking have to do with IT? The U. Until U. manufacturers began to think differently. they must first set boundaries and determine the organization’s mission. all of which had a negative effect on profits. assembling the steering wheel. 11 . They implemented statistical process modeling. car manufacturers eventually shifted their thinking to determine the required process flow of a particular car model. Product quality improved in the eyes of the final customer. because the businesses began to study how and why customers used or bought their products.S. Like the manufacturing industry. That was more of a business-driven approach than focusing on the discrete tasks of installing the back seat.S. corporations could invest their resources in the things that mattered. so that the right models arrived in the market at the right time. which studies the flow of value through a series of steps in production lines. The cars either didn’t meet the demographic requirements or they were too late to market — the market had moved on. And then they focused all of their manufacturing ingenuity on giving the customers what they wanted. and so on. As a result. Several things improved profitability as U. automakers began to think differently. U. automakers began to think differently.S. IT needs to focus less on automating individual tasks and more on the full process and the entire IT value chain. when they wanted it. production lines became more efficient.
” or trouble spots. For example. known as Business Service Management (BSM). Brakes (controls) are equally important to IT. There are many twists and turns in the way that technology and information flow through an IT organization and a data center.asking the right Questions It’s important for IT organizations to manage their activities from a business perspective. 12 . or the best change processes. organizations that have the strongest controls. BSM is all about working with the business to determine what is important. going Faster requires Better Brakes Achieving quality through process efficiency also involves having the right controls. the customers will shop elsewhere. rather than resist it. can better adapt to business conditions and changes. making sure that the company’s Web site can always process orders immediately — no matter how much traffic is on that site — is an important business priority. It helps them increase revenue. This involves automating some processes and tools. but the cars with the best brakes and suspension have better control and handling on the corners — the most treacherous parts of the course. so having the proper controls means that you end up being more agile around the “corners. and then be savvy about how IT delivers value as the business defines it. but it is also very much about thinking differently. Process-based decision-making is already influencing the way things are done in IT organizations. IT should build processes around a business. The cars that have the fastest lap times have the absolutely best brakes. People in IT organizations need to have a conversation with the people in the businesses they support and to collaborate with them to identify their priorities and the reasons for these priorities. and combining best-practice IT processes with a shared view of how IT services support basic business priorities. This approach enables companies to deliver the desired product or service to the customer at the right time and at the right quality level. IT leaders and their teams need to accept this approach. reduce costs. If the company can’t receive orders when customers want to make them. and lower risk. Think about a race car going around a racetrack. All of the cars may have equal engines. than IT organizations that make changes without sufficient procedures.
and BSM is essential for process efficiency.Business serviCe ManageMent IT organizations are forced to make frequent changes in their environments. managed. Control is important. This entails using a configuration management database to maintain a constant flow of accurate information to and from that database. you must think differently as you frame your questions on the basis of business needs. BSM has evolved into a focus area for getting change management under control. and making sure that everything works together smoothly and efficiently. Whenever a change is needed in a computing environment. The appropriate brakes — changeover control processes — were not in the system. in essence. Change for an IT organization involves such tasks as bringing on and taking off more computers. Then solutions that combine human processes and machine processes can help IT organizations become more agile. or the best change processes. can better adapt to business conditions and changes. and moved along automatically with an IT service management suite. it is often because a change was made in IT. adding new applications. This approach involves marrying the human processes around change control and management with technology solutions. Being 13 . or making technology changes in an IT organization — such as changing capacity. Those with the loosest controls actually slow down their businesses. Any reconfiguration has the potential to throw the IT “car” off track. It involves bringing together automation technologies. it requires reconfiguration — a dangerous “corner” for that IT department. or bringing up a new Web site. whether you’re turning a corner in a race car. because so many things break when changes are made. Organizations that have the strongest controls. to succeed. A BSM approach. This is an important aspect of doing BSM well. such as a technician misconfiguring a service. where human processes are monitored. you must think differently as you frame your questions on the basis of business needs. such as bringing up a new service in an accelerated time frame. rolling out a new application or service. rolling cars off a production line. When business service is interrupted due to technology failure. approved. the Bottom line To succeed. reduces the time from when a business decision is made to when the decision is enabled by IT.
and you can see how IT can have an immense economic impact on businesses. Instead. The cost of downtime of computing environments — when businesses suffer because their IT services are not available to them — ranges from 2 to 16 percent of total revenues per business. By focusing on optimizing and automating core processes. and the time required to deliver new. you can reduce operations expenses as well as operational downtime. Combine the lost revenue at the top line with the lost IT productivity and the lost productivity of the business. you will free up time that can be devoted to creating breakthroughs. This money can be redirected to innovation. you will free up time that can be devoted to creating breakthroughs. When those outages occur. As a result. As a result. This involves dealing effectively and systemically with the changes that business imposes upon the IT organization. the IT organization can have a positive impact on cost structure. If you are able to change that outage statistic and dramatically reduce the number of outages affecting a business that are caused by change.oriented toward the value that IT brings to a business has a lot to do with how well it adapts to business needs. Now. you’ll have a greater opportunity to deliver new IT services that satisfy emerging business needs. When processes are working well. you can adapt to business needs more effectively because you will not be devoting all of your time to firefighting and chaos. it is focusing on crisis management — getting everything back online and working in the old-fashioned way. innovative services to market. Instead. you will be a more productive and efficient IT organization. relate that statistic to a statistic cited by a leading industry analyst that eight out of ten outages are caused by IT. quality. IT is no longer working on adapting to the change that is necessary for the business. You’ll be more process-wise because you’ll have change under control. By focusing on optimizing and automating core processes. 14 .
Grant spent more than 20 years at Hewlett-Packard.bmc. and general management. By thinking differently — by asking the right questions of the business and by becoming process-centric and process-compliant to support business needs — you will discover that great quality can cost less. You can demonstrate that you are maintaining control of the critical IT processes and. Historically. senior vice president and general manager for the Enterprise Service Management Business Unit at BMC. where he held key management positions across the functional spectrum. is responsible for running the business that drives the concept. therefore. Prior to joining BMC. product marketing. strategy. most people thought that great quality cost more. visit www.com/bsm. 15 .Business serviCe ManageMent An additional benefit of this approach is a more compliant environment. For more information about BSM. including manufacturing and materials management. and delivery for Business Service Management (BSM) through his operating divisions and across the company. you can control the business processes upon which customers and corporate shareholders rely. operations. aBout tHe autHor Jim grAnt.
To make this happen. The transition will have a major impact on service management. manner of interacting with others. 16 . your IT organization is moving to a new. BMC Software When an actor takes on a new role. and view of the world.six steps to reinventing Your it staff By Peter Armstrong Corporate Strategist. you must go through the same type of assessment as an actor preparing for a role. your IT organization must re-engineer its service management processes and deploy new technologies that automate tasks wherever possible. and reducing risk. In the future. more strategic role that focuses on business priorities. The actor must also learn the details of the character’s environment and motivation. What does acting have to do with IT? Today. Consequently. lowering costs. he or she prepares rigorously — “getting inside the head” of the new character and determining the character’s strengths and weaknesses. everything your IT staff does in service management must be done in the context of contribution to business value — increasing revenue.
To help your IT staff become more business savvy. you must address the people part of the process/technology/people formula for successful IT service management. you must first establish a service management vision based on business goals and strategy. which is known as Business Service Management (BSM). and start talking about the end-to-end response time of entering an order online or the number of sales orders processed per hour. however. your staff will drop the technospeak. by effectively communicating that vision. step 1: get People Closer to the Business Before you can change anyone’s mindset. People will stop talking about CPU utilization. This approach affects all areas of IT — process. Reinventing your IT staff means shifting their mindset from one with a technology focus to one with a business focus. IT Infrastructure Library® (ITIL® ) guidelines help considerably in preparing your IT people for their new role. Then. In short. It means fostering an environment in which every decision and every action considers the contribution to business value and regulatory compliance. It will require reinventing your IT staff. Through this collaboration. will require much more than incorporating new processes and implementing new technologies. Here are six steps for reinventing your staff based on ITIL guidelines. I/O activity. and network speed. technology. you need to foster collaboration with the business community. Over time. A major theme throughout ITIL is that everything IT does must be done in light of its business impact. to help your it staff become more business savvy. and people — and has major implications for IT service management. it deals with both the technology and people issues associated with adopting the processes. 17 . you can increase staff members’ understanding of the business.Business serviCe ManageMent Successfully navigating the transition. Moreover. you need to foster collaboration with the business community. ITIL provides an extensive set of process guidelines based on proven best practices. business managers and IT staff members can set joint service goals and objectives and establish joint business metrics for measuring progress toward those goals and objectives.
and continually improving them. Like them. and other financial implications of new initiatives. the transition to business-centric it often calls for new staff positions. The business liaison acts as a link between the business community and the IT staff. tasks. but necessary. and documenting processes. They will incorporate these benefits into IT project proposals. If your people spend much of their time on mundane and repetitive. The process manager ensures that service management processes align with the service management vision. In organizations adopting ITIL. step 2: improve and exploit skills You can’t improve skill sets until you understand the skills your people already have. Take a lesson from consulting firms that have many consultants and many projects in progress at any given time. The business liaison and the process manager are two new positions to consider. this person also ensures that processes align with ITIL guidelines. The business liaison also builds the business case and makes convincing. implementing. your challenge is to match people to projects on the basis of skills. Once you understand the skills available.As their business orientation increases. you need to assess how you’re applying them. step 3: Define and Develop new staff skills and Positions The transition to business-centric IT often calls for new staff positions. return on investment (ROI). 18 . standardizing them across the IT organization. business-oriented presentations to justify projects. This person uses language that businesspeople understand to explain what IT is doing and why. you’re wasting valuable skills and precious time. Responsibilities include selecting. Responsibilities include obtaining business input and communicating this information to IT people. Service management solutions can free up staff time by automating repetitive tasks. they will begin to think in terms of business benefits. highlighting the costs.
step 6: re-evaluate Your organizational structure Becoming strategic represents a big change for most IT organizations. step 5: acquire Knowledge The new IT role requires extensive skills and knowledge in a broad range of IT disciplines. Automating everything isn’t feasible. Most organizations do not have the full complement of knowledge necessary to ensure predictable and successful outcomes. Make it clear that automation is not about eliminating headcount. so you need to look at individual tasks in light of how they fit into broader service management processes. freeing up staff time for more strategic activities. be sensitive to the fact that some employees may wonder if they will be automated out of a job.Business serviCe ManageMent step 4: automate Processes One of the most pressing problems that IT faces is expending a major portion of staff resources for just “keeping the lights on. It is about eliminating boring. It is about increasing staff productivity and getting the IT staff out of firefighting mode. Education speeds knowledge acquisition and accelerates your transition to business-centric IT.” Service management solutions automate many tasks. As you automate. Find ways to increase efficiency in these processes through automation. mundane tasks and catching up on the projects that have been put on the back burner due to a lack of resources. Service management solution vendors should be able to augment their solutions with a comprehensive and flexible offering of ITIL-specific education services that address all levels of your IT staff. it is about increasing staff productivity and getting the it staff out of firefighting mode. 19 . It may demand a reorganization of your current staff structure to optimize the utilization of current skills and accommodate new skills and staff positions. Make it clear that automation is not about eliminating headcount. Search out opportunities for end-to-end process automation.
aBout tHe autHor Peter Armstrong.com/itil. Selective outsourcing permits the IT organization to focus on its core competencies. is responsible for the increasingly important domain of how business and information technology need to work together.bmc. Armstrong has helped to develop the Business Service Management (BSM) approach introduced by BMC. setting the stage for Business success Re-engineering service management processes and enhancing service management solutions are critical to preparing the IT organization for its new strategic role. corporate strategist for BMC. improving the efficiency and quality of service delivery. Social networking permits people who are forming teams to find others in the company who have the skills the team needs. this may be the time to consider outsourcing selected services — for example.S. Service management solutions can help by streamlining process and information flow. time zones. Your reinvention efforts will build a strong partnership between IT and the business — a partnership that unleashes the power of IT to help the enterprise achieve its business objectives. management of network components or desktops. Social networking technologies may also help you exploit current skills by facilitating the formation and operation of virtual teams that span groups and geographies. particularly in the non-U. thus helping to ensure that the solutions BMC delivers are pertinent worldwide.Process integration is a core tenet of ITIL. and geographies. because it’s the people in IT who will actually play the new role. Reinventing the staff is equally important. 20 . so you need to move from a siloed structure to one in which process and information flow smoothly across multiple IT disciplines and groups. These six steps will help you give your staff the competence and confidence to deliver an award-winning performance in creating business success. marketplace. visit www. Finally. It also enables collaboration across business units. For more information about ITIL. He works closely with the company’s development labs to keep them informed on customer plans and activities.
depending on where they planned to visit. BMC Software Most people wouldn’t go on a long trip without making plans. the journey would be painful and the results wouldn’t be what they anticipated. and the cost of the trip would probably increase. and they may even hire a guide. If they didn’t make these plans. their much-anticipated vacation could turn into a stressful experience. They might as well have stayed at home! 21 . they might miss the opportunity to visit some great sites. They’d probably look at maps before they leave. In essence. reserve a rental car and hotels. plane flights might not be possible at convenient times. The hotels they wanted might not be available. and select various sites to explore. They’d get their plane tickets.Business serviCe ManageMent Consulting services and itil: When it’s time to Bring in a guide By Stephen Davito Director of Consulting Services.
and reduce costs. BSM combines best-practice IT processes. IT leaders and their teams are pressured to deliver greater value to their end users.In some ways. but there is still work to be done. A Business Service Management (BSM) approach can help IT organizations arrive at their destination. In essence. There’s more up ahead. ITIL and BSM provide the IT traveler with a comprehensive map. IT organizations often struggle to achieve higher IT service management maturity levels. BSM provides a fast lane for your journey to ITIL. > Know what you need. > Don’t stop now. and a shared view of how IT resources directly support the business. This approach is based on managing IT according to business priorities. Their ultimate destination is to have an organization in which IT and business services work together. Think of successful ITIL adoption as a journey. > Be sure your gear includes BSM solutions. Many IT organizations have opted to achieve this transformation by implementing best-practice processes based on ITIL. improve service levels. As with any adventurous journey. Solutions can implement ITIL processes and enforce their use. seven-step itinerary An effective way to approach ITIL is by following a sequence of seven incremental steps. a skilled and knowledgeable guide can help make the experience a rewarding and enriching one. Driven by these demands. Each step paves the way for the next: > Know where you’re going. > Get the best guide available. The pressure is compounded by the need to roll out more services. together. > Create an IT transformation road map. itil and BsM provide the it traveler with a comprehensive map. > Assess your current position. Together. 22 . automated technology management. planning a trip is like the journey IT organizations take to get the most value out of the IT Infrastructure Library® (ITIL® ). and consulting services can be your guide in that fast lane.
limit your choices according to their practicality and the cost and time to implement. A major step in this journey is to outline the best plan for moving ahead to ITIL and deploying BSM solutions. To make this journey successful. so determine the foundation data you need for the processes you’ve selected. such as consulting services. But be realistic. will ensure that you get what you want from your ITIL journey by providing resources to augment your in-house resources — experts who have been through many BSM implementations based on ITIL best practices.Business serviCe ManageMent step 1: Know where you’re going. and agility in accommodating changes. 23 . Before you start. consolidation. too. first select from the ITIL guidelines the processes you need to implement. ITIL is process driven. and the roles of employees. step 4: Create an it transformation road map. and people you have in place today that will support your goals. processes. cost containment. and processes are data driven. You can’t figure out where to go unless you know where you are now. you’ll need to define the goals and mission of your IT organization: Where do you want to go? What is at stake if you do not reach your goals? You may have several intended outcomes: Standardization. Perform a gap analysis to delineate needed improvements in technology. You can’t figure out where to go unless you know where you are now. Do you need infrastructure configuration data? Performance and availability data? What about user data? Determine whether to train some employees to be ITIL certified. step 3: Know what you need. This plan is your IT transformation road map. Consider your IT and technology structure and your business practices. step 2: Assess your current position. processes. so they can eventually help guide the organization. Establish metrics and incentives to keep everyone moving ahead. regulatory compliance. Zero in on deficiencies and shortcomings. A good guide. Assess the technology. Starting a trip unprepared leads to setbacks and pitfalls.
you’ve come to the point of your journey where you can deploy those BSM solutions. A configuration management database (CMDB) will be an essential component. Just when you think you’ve reached the summit. Now. Continue to measure and improve the results in an iterative fashion. you see another peak ahead. Out-of-the-box BSM solutions translate the ITIL process guidelines into detailed bestpractice processes. which ITIL V3 defines as the set of tools and databases you use to manage your configuration data. Your transformation road map will also include metrics to record the services delivered. or a process — across the IT environment. The horizon is always out there ahead of you. there’s more up ahead. It is a repository of information that relates to all the configuration items — which can be hardware. you’ve already covered a lot of ground. And you’ll need to build into your transformation map a training program on BSM solutions. You’ve created the IT transformation road map. The CMDB provides a single source of accurate information about your infrastructure. people. And don’t forget to put technical support in place to help your end users in their use of BSM solutions. You can use the metrics you developed in Step 4 to make changes that will move you along on your journey and improve your results. You’ve defined the BSM solutions sequence. This gives you a significant head start. step 6: Don’t stop now. The CMDB is part of the configuration management system (CMS). 24 . out-of-the-box BsM solutions translate the itil process guidelines into detailed best-practice processes. But you’ll still need to install the solutions and deploy the CMDB. By the time you arrive here at Step 5. software. step 5: Be sure your gear includes Bsm solutions. Identify the BSM solutions you need to support your processes based on ITIL.Where will you begin? With incident and problem management? Or with change management or access management? How will you proceed? Each area in your incremental approach will be translated into technology. from the end-user perspective.
They know how to use those plans to accurately identify the resources required for each activity. a guide for the Planning stages The journey to ITIL adoption requires disciplined planning and preparation. and prevent potential mistakes. you’ll need to closely estimate resource requirements. From planning and preparation. The consultant will then help you manage the people involved in those processes and define their roles and responsibilities. money. To find the best guide. 25 . an experienced BsM consultant will help you define and document the scope of your processes and break them down into smaller increments. An experienced BSM consultant will help you define and document the scope of your processes and break them down into smaller increments. estimating resource requirements. your consultant is indispensable. or resources along the way. so you’re not just following his or her lead blindly. You can’t go on this trip alone. Here. and avoiding pitfalls along the way. to starting out right and staying on course. in-depth experience in ITIL V3. A qualified guide should help you through all the stages of your journey: putting theory to practice. and proven service delivery. setting up ongoing metrics to accurately monitor your progress. and energy. Their knowledge at this stage will save you time. make sure that the consulting service you choose provides all of the following elements: comprehensive service offerings.Business serviCe ManageMent step 7: get the best guide available. You can also expect the consultant’s assistance as you develop a process management approach. you’ll need a qualified guide. choosing the right starting point. BSM providers are experienced in creating and validating realistic and detailed project plans. money. expertise in BSM strategy and BSM solutions. Know what you can expect from your guide. To avoid waste. This expert guide offers substantial experience in ITIL practices and BSM solutions to move you through the steps toward your destination without wasting time.
and identity management. aBout tHe autHor As director of consulting services for BMC. With the benefit of expert guidance.bmc. He has achieved certification as a BMC Remedy approved consultant and certified ITIL practitioner. When you arrive at your destination. Davito has more than 13 years of experience in service management. visit www.a guide for the road The current state and maturity level of your processes will determine the approach you take in implementing new processes. such as interdependent processes. 26 . the rewards of your journey will be well worth its rigorous planning and execution. stePhen DAvito is responsible for worldwide practice management in IT transformation consulting. It may be necessary to implement several processes in parallel. lower costs of service delivery. an experienced ITIL/BSM guide has learned from the mistakes of others and can save you from making those same mistakes. organizational change management. Having been down this road before. Consultants use proven methodologies and metrics to accurately assess your current situation and get you started out right. For more information about BMC consulting services. while also checking that the BSM solutions you implement support that integration. service automation. and greater ability to meet regulatory requirements. he or she can help you benefit from the successes of others. you will find enhanced service quality. and consulting to IT leadership on how best to align their organizations to the business.com/consulting. Let the journey begin. consultants can ensure proper integration among processes. IT service management. Likewise. Leveraging their experience.
This resistance to change is one of the biggest obstacles to successfully implementing IT Infrastructure Library® (ITIL® ) practices. infrastruCture liBrarY Best PraCtiCes Moving out of the Comfort Zone: guiding Principles for Changing old Habits and successfully implementing itil v3 Practices By George Spalding Vice President of Global Events. CTO Office. Pink Elephant Ken Turbitt President and CEO. Service Management Consultancy (SMCG) Ltd. BMC Software We are creatures of habit. 27 .t. We cling to our old ways and hesitate to move out of our comfort zones. Atwell Williams Solutions Architect.i.
So. a big-bang cultural change is not necessary. a phased approach to itil adoption allows you to address the peoplerelated challenge through incremental behavioral changes. and they are reluctant to try new ones. saving the day. and understanding how they touch business processes and services. facilitates ITIL adoption and promotes cultural change. Fortunately. integrated processes for IT operations and support. which is based on managing IT from a business perspective. Consequently. For example. you can initiate ITIL adoption by finding out what the objections are and addressing and countering them in positive ways. IT staff members sometimes create their own unique processes. 28 . repeatable processes for managing IT. Defined and recommended within ITIL V3.Adopting ITIL means adopting consistent. integrating these processes across the IT organization. Many IT organizations. instead of teamwork. Bringing ITIL practices into such an environment may seem like an impossible task. many IT people operate in a “hero” mode — troubleshooting. it reinforces a siloed approach to IT management. are so heads down with day-today tasks they don’t have the resources to develop standardized. Business Service Management (BSM). A phased approach to ITIL adoption allows you to address the people-related challenge through incremental behavioral changes. With a BSM-focused approach and our guiding principles. BSM is an approach to running IT that combines best-practice IT processes and automated technology management with a shared view of how IT services support basic business priorities. you can get your organization to adopt ITIL without trauma and pain. This approach promotes solo acts. or even advisable. anticipate resistance and tackle it Head-on The key to getting people past resistance to change is managing objections effectively. so it undermines integration and efforts at collaboration. repeatable. however. and then leaving. Moreover.
This raises the visibility of IT value and the individual contributor’s value to the organization. increasing job security. look Beyond Process transformation As you transform processes and make them more efficient. and with measurable and demonstrable results. which may lead to an understanding of how it will work. as you transform processes and make them more efficient. 29 . IT employees can demonstrate their contributions to business value using metrics that business managers understand.” In doing this. don’t overlook the people-related issues involved in that transformation. Ask people to write down their concerns so you can review and track them. Look for potential sources of people-related problems in each of the process areas you transform. “This won’t work because…. Even more important. IT employees add valuable skills to their repertoire when they learn industry best practices and gain a higher-level view of IT that enables them to better relate IT to the business. > enhance skills.” help the person dig deeper and reach a statement such as. watch for opposition and seek to understand the nature of the resistance.i. As you work toward transformation. structure. Leadership and structure are the two most important factors with respect to the behavioral change that must accompany ITIL adoption. motivating people by showing them how the change will benefit them is equally important. it may uncover valid issues that you have missed. and the human resources (HR) systems that support these.t. When you hear someone say. infrastruCture liBrarY Best PraCtiCes A mandate from top management is important because it tells people that the change is inevitable. “This will never work. Addressing those issues will enhance the transformation process. shape Behavior Four factors shape behavior in an organization: leadership. However. don’t overlook the people-related issues involved in that transformation. By automating repetitive tasks and approaching more activities with business impact in mind. you encourage the person to closely examine the new approach. strategic definition. Communicate clearly how an ITIL-based approach supported by BSM technology will: > make their jobs easier. IT people can perform their jobs more effectively and more easily. > increase the visibility of value contribution.
Every member of the staff must understand why ITIL adoption is vital to the business. That’s why it’s essential to have a top-level sponsor. 30 . needs more than expertise in the mechanics of change operations. To create those teams. A change manager. it staff members can no longer limit their expertise to a single discipline. Publicize early wins along the way and give credit to the people who contributed to them. for example. You need structure to change behavior. and operation. Leaders foster the right behaviors by: > Clearly articulating strategy. He or she must also understand the implications of change in strategy.People need to know that senior leadership backs the initiative fully. Actions speak louder than words. > modeling. That means IT staff members can no longer limit their expertise to a single discipline. A mandate to attend an ITIL class is far more effective at motivating people to embrace training if a senior leader also attends the class. design. but also how they will benefit the IT staff. That environment must provide a structure that enforces standard processes and makes it easy for staff members to use the processes. such as the CIO. Examples include automation and step-by-step guidance. you’ll need to break down barriers and bring together groups that may not have worked together before. they must also understand the interaction of their areas of expertise with other areas. > rewarding desired behavior. address teaming issues ITIL best practices call for the creation of cross-functional teams that are diverse and widespread. Everyone appreciates recognition. They must also understand the interaction of their areas of expertise with other areas. Effective process integration requires that IT people have a broad outlook. Communicate as early as possible not only the BSM approach and ITIL strategy. so create an environment in which IT staff members can safely adapt to new ways of doing things.
t. ITIL also emphasizes the importance of defining the roles and responsibilities within the organization for the various activities.i. It is also the most difficult to accomplish. the sooner you start. 31 . offers a structure that guides IT in the right direction. people-oriented approach. Of the three. grounded on ITIL principles and built on BSM solutions. the better. For more information about ITIL. Training should cover not only ITIL-specific content. An incremental. the better. infrastruCture liBrarY Best PraCtiCes address organizational implications Adopting ITIL may call for organizational changes. behavioral change is by far the most important in achieving success. particularly when siloed groups need to accomplish process integration with other groups. but also behavior. but also BSM principles and technology and how BSM supports ITIL.com/itil. it is vital to clearly define and scope the roles. The overall goal of training is to change people’s perspective from a focus on implementing hot new technologies to a focus on implementing and automating processes that will improve service delivery and enhance business value. Behavioral Change for itil success Successful adoption of ITIL requires changing not only processes and technologies. give attention to training Training is an essential ingredient in getting people involved in the transition to ITIL. visit www. and ad hoc delivery of services > Hierarchical structures that separate functional activities > Proper application of a decentralized organizational structure > Use of formal systems in achieving greater coordination > Stronger collaboration with the business training is an essential ingredient in getting people involved in the transition to itil. When designing a service or a process. The sooner you start. informal. ITIL provides guidance in handling organizational implications and describes five stages of organizational development: > Rapid.bmc. facilitating the behavioral changes required to transition to ITIL.
. Ken turBitt. Previously. and service manager. Atwell williAms. 32 . After his appointment to the faculty of Yale University. In addition to a quarter century of commitment to improving the IT Service Management industry. He has served as an ITIL instructor and is certified in the following ITIL areas: ITIL foundation. practitioner.aBout tHe autHors george sPAlDing. Spalding is a much sought-after presenter. availability. He has spent the last 25 years helping individuals on six continents in nearly 20 countries realize their full potential by simplifying complex topics and inspiring people to embrace change. British Computer Society (BCS). Turbitt is a member of the Institute for the Management of Information Systems. a solutions architect in BMC’s CTO Office. is a recognized industry expert in IT best practices. he worked as a consultant to the White House on technical presentations and White House Conferences. Williams was an ITIL instructor and education manager for the BMC Software Business School and director of IT Service Management for the BMC IT department. Service Management Consultancy (SMCG) Ltd. and recoverability of the company’s internal production applications. He has been qualified as an ISEB ITIL Manager for more than 12 years and was an official reviewer of the ITIL V3 Service Design book. security. where he was responsible for assuring the overall performance. has a unique combination of IT process expertise and real-world IT experience. vice president of global events for Pink Elephant. and itSMF . president and CEO. was selected as one of the ten authors of the international team charged with creating ITIL V3.
BMC Software Ken Turbitt President and CEO.t. you may be wondering just what a CMS is. and how it might be helpful to meet your organization’s needs. One of the most important new concepts is that of the configuration management system (CMS).i. The five core volumes of the IT Infrastructure Library® (ITIL® ) Version 3. also known as ITIL V3. 33 . how it differs from a configuration management database (CMDB). Service Management Consultancy (SMCG) Ltd. infrastruCture liBrarY Best PraCtiCes From Data to Knowledge to action: Delivering Business value with a Configuration Management system By Tom Bishop Chief Technology Officer. contain a substantial amount of valuable new best practice information. Whether or not you’ve had the opportunity to go through the new books.
suppliers. The CMDB is the core database that powers a comprehensive CMS. customers. and releases to locations. 11 May 2007. Ci Configuration item a Ci is “any component that must be managed to deliver an it service. business units.best-management-practice. and all formal documentation. changes.com/gempdf/ITIL_Glossary_V3_1_24. such as slas and process documentation. problems. CMs Configuration Management system a CMs comprises tools and databases and is used for managing configuration data. and configuration items (CIs) are the components that make up your IT infrastructure. update. throughout its lifecycle. a Ci is maintained by configuration management. it provides tools that enable you to collect.IT organizations that want to help their companies meet business objectives — or at least not get in the way of them — will find the CMS an invaluable tool.24. Terminology1 1 ITIL V3 Glossary V3. 34 . store. and users. employees. it includes extensive it and other information ranging from known errors. people. Published by the British office of government Commerce. A CMS should become a vital component of your longer-term IT strategy. a CMDB is a repository of information that relates to all the Cis associated across the it environment. manage. itil sets the Foundation for actionable information acronym itil v3 What it stands For it infrastructure library explanation itil is an integrated. cohesive set of best-practice recommendations with common definitions and terminology. itil has become the de facto standard for it service management worldwide.” 1 including software and the hardware that runs it. www.1. and present data about individual configuration items and their relationships. incidents. Ci information resides in a configuration record within the CMs. See Configuration Item. CMDB Configuration Management Database Table 1.pdf.
you will decide what type of design you want for your CMS. service level agreements (SLAs). hardware. the CMDB brings together data from multiple sources. software.”2 A service provider refers to both internal IT and external suppliers. serving as a single source of reference about the IT environment. It is the place where information describing all of your IT infrastructure components resides. Similarly. process documentation. Federation makes it all achievable today. or a change management system. providing a consistent way to represent CIs and. 35 . more importantly. a CMS is a central knowledge system that turns raw data (nerve impulses) into information. a CMDB provides a single place for referencing data about IT services. more importantly. As you develop your IT strategy. Federation means that not all configuration data must reside in a physical database. it makes the information actionable by converting it into knowledge.t. and more. The purpose of a CMS is to provide a foundation that supports a complete service lifecycle across IT. for example. author. providing a consistent way to represent Cis and. See Configuration Management System. The CMDB brings together data from multiple sources. or actionable information. The expectation is that this knowledge. A library catalog offers users a standard format for understanding information and various ways to search for items — title. and subject. Through analytics. A CMDB is like a library catalog. The CMDB is a primary building block of a CMS. Like the human brain. infrastruCture liBrarY Best PraCtiCes Putting it all together The ITIL V3 definition of a CMS calls it “a set of tools and databases that are used to manage an IT service provider’s configuration data. category. A CMS should include various IT management tools as well as databases — such as an asset database. buildings. people. which provides a single place for locating basic information about any item in the library.i. 2 Ibid. improves decision making. one or more CMDBs. serving as a single source of reference about the it environment.
Here’s an example. > An accounting manager logs an incident with the service desk because she can’t access payroll information. IT uses the service impact view. The sales order-entry system outage. users. > To determine the cause of the incident and what business services might be affected. such as e-mail availability. a CMS will provide the insight necessary for you to make smart decisions that keep the business running smoothly. however. not to mention the potential financial impact this outage has on revenue. This view might also reveal that the same server supports the sales order-entry service. How a CMs Delivers Business value The core function of a CMS is to help IT organizations address issues and problems from the perspective of the business. while the CMDB becomes the catalog that points to where this information lives and that tells how to access the information. the core function of a CMs is to help it organizations address issues and problems from the perspective of the business. With this knowledge. This raises the awareness level for operators of the status of real-time business services. and the underlying IT infrastructure. > The asset view tells the service desk staff where the payroll server is located and how it is configured. and so forth. It will provide that insight by presenting information in a variety of views. Web site performance. By ensuring that all IT management applications have access to properly cataloged IT configuration data. it isn’t immediately critical. > A dashboard view provides management with quick insights. An effective CMDB supports a federated approach. ITIL V3 recommends that this federated approach be a core part of the structure of a CMS. The dashboard shows that although lack of access to the payroll service affects 20 people. applications. The incident view tells the IT staff that the payroll service is inaccessible. which shows that the payroll service is unavailable because a server is down. the staff can dispatch the right resource to the right place to resolve the problem. affects 100 salespeople. they haven’t been able to enter orders for two hours.The CMS becomes the definitive reference mechanism for all IT decisions by providing business-aware visibility into the dependencies among business processes. and you are about to breach a critical service level. Primary systems and data repositories remain the authoritative source for information. which has a Severity 1 SLA. 36 .
the business service view helps IT understand why this problem is so important to the business. Solutions at this layer automate the population and maintenance of configuration and relationship data. Subscribe BSM Dashboards Topology Viewer (Incident. infrastruCture liBrarY Best PraCtiCes > Finally. these solutions reduce the chance that changes will disrupt the business.Query and Analysis . elements of a CMs When you are ready to build your CMS. Presentation Layer WISDOM . timely decision to reprovision the sales order-entry service to another server.Service Definition .Modeling . Change. allowing you to discover information to manage identities. Consequently. 37 . requests.Store.Monitoring and Alerting CMDB Analytics Capacity Management Performance and Availability Management Reconciliation Event Management INFORMATION Information Integration Layer .Forecasting and Planning . you should ensure that the solutions you implement address four key layers: data and information. for example. This view makes it clear that the service affects the core business and requires urgent response. indicate how much revenue is at risk if the system is not brought back online. and so on.i. Synchronization Service Definitions CMDB Federation Integration Model Schema. and presentation. Retrieve.t. Problem. Service Impact) . the staff makes a prioritized. Metadata Data and Information Layer DATA CMDB CMDB CMDB Service Request Management Software Configuration Discovery Asset Definitive Software Library Management Service Desk Identity Management Application The data and information layer is the foundation for a consistent view of business services.Search. Schema Mapping .Publish. which enables the staff to make decisions on the basis of business priorities.Process Data and Information.Collaborate Technical Configuration (CI Viewer) Service Desk KNOWLEDGE Knowledge Processing Layer . Update . Browse . It may. By standardizing. and normalizing configuration changes across data sources. reconciling. assets. knowledge processing. Release.Reconciliation. information integration.
bmc. Dashboards link critical it processes into a graphical presentation with aggregated performance indicators. capacity. Without this layer. IT management solutions for the knowledge processing layer use information to help manage IT availability. requiring your staff to go to multiple reference points to get a complete picture of that CI. Dashboards link critical IT processes into a graphical presentation with aggregated performance indicators. monolithic repository. you would have multiple records for the same CI. implementing an effective CMS will be vital to gaining the insight required for making sound IT and business decisions. 38 . which involves applying data standards from each source to a single source of reference and standards. Conclusion Although the concept of a CMS is not new.The information integration layer eliminates duplication and simplifies integration. ITIL V3 gives it considerable focus. Arming your IT staff with actionable data at the right time and in the right format will position them to make informed decisions that improve IT service quality and drive business agility and productivity. At this layer. visit www.com/atrium. and continuity from a business service perspective. That’s because in the long term. This layer requires a reconciliation engine to normalize data. Ad hoc analysis and data drill-down across IT functions using consistent configuration data increase IT effectiveness. performance. you get a centralized view of all business services without the cost and risk of moving all data into a single. Knowledge processing helps you quickly establish the business context and impact of various problems. For more information about BMC solutions that support the ITIL V3 CMS. Presentation is based on roles and responsibilities: A business manager can see and drill down from the business services perspective while an IT service manager works from the perspective of delivering value-added IT services to those business services. The presentation layer gives you the appropriate knowledge at the appropriate time to meet the business objectives.
He holds nine patents in fault-tolerant computing and has been involved in the development of industry standards. BMC Software. He has been qualified as an ISEB ITIL Manager for more than 12 years and was an official reviewer of the ITIL V3 Service Design book. by InfoWorld magazine in 2004 and is a well-known industry innovator. was named one of the top 25 CTOs . British Computer Society (BCS).i.. and itSMF . president and CEO. Ken turBitt. such as the Distributed Management Task Force (DMTF) and the Portable Operating System Interface (POSIX). Service Management Consultancy (SMCG) Ltd. 39 . is a recognized industry expert in IT best practices.t. infrastruCture liBrarY Best PraCtiCes aBout tHe autHors tom BishoP chief technology officer. Turbitt is a member of the Institute for the Management of Information Systems.
Business service Management.Where the Bazaar Meets the Cathedral: Making itil. Gartner 1 The Cathedral and the Bazaar. however. Raymond likens an open source project to a great babbling bazaar of differing agendas and approaches.org/~esr/writings/cathedral-bazaar.catb. 40 .”1 The open source reputation for rowdiness and unruliness makes many IT professionals uncomfortable. and open source Work for Your organization By whurley Chief Architect. BMC Software Traditional IT and open source are as different as night and day — or. traditional software is built like a cathedral. as different as the bazaar and the cathedral. he says. as author and open source software advocate Eric S. Raymond claims. Today. www. open source is attracting a widening audience. “carefully crafted by individual wizards or small bands of mages working in splendid isolation. In contrast.
open source is converging with itil and BsM. to address service management. the people faced 2 M. In this book. 2 What’s the appeal? > Lower cost of ownership through reduced acquisition costs > Faster development and enhancement cycles and more timely fixes to problems because so many developers can participate in a single software project The problem is that open source software doesn’t provide all the capabilities that today’s enterprises need for service management. Gartner’s Top Predictions for IT Organizations and Users. Companies are adopting best-practices frameworks. opening the doors of the cathedral and welcoming in the bazaar. such as the IT Infrastructure Library® (ITIL® ). So. January 2008. but also for open source software. 41 . 2008 and Beyond: Going Green and Self-Healing. IT people may feel like the “earthlings” in a science-fiction novel published in the 1930s entitled. Many organizations are also using Business Service Management (BSM) software solutions as their preferred approach for implementing ITIL processes. To tackle the challenge. 80 percent or more of all commercial software will include elements of open source technology. When Worlds Collide. Those solutions must come from vendors who make at least a part of their source code available to the open source community. companies must implement solutions that encompass service management not only for traditional systems. and it professionals are finding themselves in the middle of this convergence. and IT professionals are finding themselves in the middle of this convergence. Gartner Research. The challenge lies in creating an effective service management strategy that merges open source with ITIL and BSM. Driver.t. Open source is gaining momentum at a time when IT is under pressure to improve service quality and reduce costs by streamlining the management of vital business services.i. BSM is the most effective way to manage IT based on business priorities. Worlds Collide Open source is converging with ITIL and BSM. IT organizations are deploying and maintaining both open source and traditional software. infrastruCture liBrarY Best PraCtiCes predicts that by 2012.
a cataclysmic collision between Earth and a runaway planet. IT organizations cannot adopt a totally open source approach to service management until open source solutions offer strong heterogeneous platform support. particularly for IT organizations adopting an enterprisewide BSM approach that supports ITIL best practices. 60 percent are considered inactive and 70 percent are authored. open source limitations Today’s open source service management solutions have significant limitations. IT environments are typically heterogeneous. so they do not fully support mixed environments. and service automation — areas that together provide the ability to achieve endto-end service management. combining open source and proprietary platforms. but they have significant shortcomings. an effective service management strategy can rationalize and combine the three worlds so that they coexist in peace and harmony. While tens of thousands of open source projects have been launched in the service management arena. The success of the open source movement has already stimulated the expansion of open source into many areas. it can deploy an integrated system of BsM solutions that manages the entire it infrastructure. such as service level management and incident management. Fortunately. and supported by only one person. Currently. 42 . servers. However. including service management. open source solutions for service management are not as mature as other open source software. open source solutions do not cover mainframes and other important infrastructure components. By taking a holistic approach. none of them addresses all three key categories of service assurance. based on following itil process guidelines and leveraging open source solutions for service management where appropriate. In particular. What’s more. and applications. they do not address key areas of ITIL service management. managed. Viable open source monitoring. service support. discovery. and software provisioning solutions do exist.
and information security management. This type of approach ensures that service management processes are integrated within and across IT disciplines.i. as it organizations pursue open source solutions for service management. based on following ITIL process guidelines and leveraging open source solutions for service management where appropriate. violating a fundamental tenet of ITIL. most open source solutions for service management are point solutions. service level management. IT service continuity management. Organizations committed to open source will need BSM solutions that enable the IT staff to manage the entire infrastructure as a unified whole. including service catalog management. 43 . infrastruCture liBrarY Best PraCtiCes Limited ITIL support is another concern. Additionally. release. availability management. Only a few open source service management solutions support ITIL. IT needs this information to determine the business impact of events in the IT infrastructure.t. IT organizations cannot ensure that changes are properly approved and implemented. a fundamental requirement for ITIL and BSM. They lack process integration across IT disciplines. thus enabling service management from a business perspective. processes. they must consider the impact on their ITIL and BSM initiatives. and even fewer integrate with a configuration management database (CMDB). For example. Holistic Management through Business service Management As IT organizations pursue open source solutions for service management. and configuration management processes. and people — as CIs. IT can deploy an integrated system of BSM solutions that manages the entire IT infrastructure. they must consider the impact on their itil and BsM initiatives. The CMDB defines a set of configuration items (CIs) and maintains all the components of the IT environment — technology assets. Another limitation is the inability to map underlying IT infrastructure components to the business services and business processes they support. By taking a holistic approach. capacity management. The solutions should address all areas of service management. a fundamental component of the configuration management system (CMS) recommended by ITIL. without the integration of change.
uniting the Bazaar and the Cathedral ITIL and BSM are helping IT address service quality and cost issues.com/whurley. He oversees BMC’s participation in — and contributions to — various open source communities.talkbmc. 44 . aBout tHe autHor whurley (williAm hurley). enterprises should consider the vendor’s commitment to open source. is a technology visionary and open source advocate. have not matured to the level of proprietary solutions.An effective system of these solutions also provides integration across all applications and is built on a CMDB that permits data sharing across all applications. In choosing a solution. holistic BSM approach that encompasses both traditional and open source infrastructure components. For more information about BMC and open source. In that way. IT can successfully merge the bazaar and the cathedral and fully exploit the benefits of open source. chief architect for BMC Software. By selecting the right BSM solutions. Important indicators include participation in the open source development community (the extent to which the vendor’s solutions interface with open source) and the availability of convenient and permissive open source licensing. and connectors to link the applications to various systems across the enterprise. monitors to track performance and availability. Open source solutions for service management. visit www. data adapters to take data from disparate repositories and integrate it into the CMDB. This type of system encompasses automatic discovery to populate the CMDB. IT organizations can put in place a single. however. Named one of 2008’s Top Leaders in Open Source Business by LinuxWorld magazine. he is the chairman of the Open Management Consortium and has received awards from IBM and Apple for computing innovation.
BMC Software Bronna Shapiro Director. infrastruCture liBrarY Best PraCtiCes Practical lessons for speeding itil adoption: leveraging educational services to achieve Your itil and Business objectives faster By Linda Moss Vice President. Worldwide Educational Services. Go through some of the indexes. BMC Software Atwell Williams Solutions Architect.t. pick up several instructional books right now. You are given an assignment to build and integrate a system that is based on several complex technologies. 45 . Imagine having to learn these technologies armed only with a stack of thick and highly detailed textbooks. many of which are new to you. Solutions Marketing for Services. To make this experience even more real.i. CTO Office. BMC Software Consider this scenario.
Others are well along the ITIL Version 2 (V2) path. which can all be addressed through educational services. or are much further ahead and transitioning to ITIL V3. or Business Service Management (BSM). you can shrink the learning curve and speed the itil adoption process — without jeopardizing your success. So. How do you gain the knowledge you need in your required time frame? There’s not enough time to read and digest all the material. release and configuration management. So how do you determine what you need to know? How do you translate the theoretical information in the books into the practical knowledge you need to implement the system? What happens when you have a question related to interpreting the material? This kind of scenario may be familiar if yours is one of the many IT organizations that have chosen the IT Infrastructure Library ® (ITIL® ) for service management guidance. there’s probably a lot of material covered in these books. others are just launching ITIL initiatives. incident and problem management. The five core ITIL V3 books cover a broad range of complex topics in considerable detail. Change management.As this exercise demonstrates. and available IT resources. and asset management all require ITIL knowledge. Many have implemented certain aspects of ITIL and are looking to move further along. Your IT team may not have the breadth and depth of ITIL know-how to move forward successfully at the speed you’d like. and some are considering the implications of moving to ITIL V3. ITIL Version 3 (V3) recommendations will help you to manage IT based on business priorities. 46 . key areas that cause problems to the business. Practical lessons Can speed itil adoption Whether you are at the very beginning of ITIL adoption. Some companies may have experienced slowdowns in their progress and need to re-energize their initiatives. How well your organization succeeds with ITIL adoption depends upon your organization’s service management priorities. Companies differ in their position along the ITIL path. By using educational services. how do you shrink the learning curve to fit your required timetable — without jeopardizing your success? Educational services can help. and there’s often no need to read everything. Some are in the planning stages. you have a lot of complex material to master and a limited time frame to do it in.
IT organizations have turned to educational services to gain the knowledge they need in the time frame they require.t.i. They tell you what you need to do in considerable detail. operation. Prioritizing what to learn first and how to translate theory into practical know-how adds complexity. According to Robert Stinnett. and applied to your organization’s specific learning needs. By using educational services. senior IT analyst at CARFAX. and that’s a tall order. A well-designed educational program provides the all-important how-to instruction on implementing and using IT processes and the solutions that support them.” 47 . Realizing value with BSM and ITIL requires educating staff on a new way of thinking and approaching IT. One such organization is CARFAX. Targeted curricula directed to specific roles within IT will maximize training effectiveness by imparting the right knowledge to the right people. Although ITIL provides considerable guidance. This approach introduces the right information to the right people in the correct order at the appropriate time. You will more effectively manage IT according to business priorities and can significantly speed your progress by presenting ITIL in a structured. The core ITIL V3 books present comprehensive and detailed service management guidelines — not implementation instructions. A good education provider offers different paths for different organizational roles. programmatic fashion. you can shrink the learning curve and speed the ITIL adoption process — without jeopardizing your success. You must translate the guidelines into the actual implementation of processes. “Education is undoubtedly a central pillar of success for ITIL and BSM. and as such it gives rise to many questions. but not how to do it. and continual improvement. transition. digested. this massive information needs to be sequenced. design. the leading provider of vehicle history and used car information. Each book addresses one of the five key aspects of the service lifecycle: strategy. infrastruCture liBrarY Best PraCtiCes ITIL is a framework of guidelines. a good education provider offers different paths for different organizational roles.
and People Meeting the ITIL challenge involves addressing three important dimensions: process. It has to be holistic. implementing full-fledged ITIL processes. 48 . Choosing and deploying the supporting technology — the BSM solutions you need to implement and enforce these processes across the organization — is another significant undertaking. as well as integrating interdependent processes. Finally. ITIL V3 discusses the need for BSM. Selecting the processes you need to meet your service management goals and translating the process guidelines in the ITIL books into actual implementable processes isn’t simple. and people. addressing all levels of the IT staff because ITIL touches everyone in the IT organization — from high-level executives to the people who are going to implement and use the service management solutions that support ITIL. It must be comprehensive. Lastly. Educational services review how to implement and maintain service management solutions to support ITIL processes. education helps each person achieve the level of knowledge appropriate to his or her particular job function. By exposing all staff members to itil. an approach for managing IT from the perspective of the business by prioritizing IT resources and activities according to their impact on business services.a successful Program addresses Process. Your IT staff members must be well prepared to leverage the full capabilities of the service management solutions deployed. educational services Help You ramp up Fast To be effective. an education program must meet three criteria: it must be comprehensive. It requires establishing roles and tasks for each process. education helps each person achieve the level of knowledge appropriate to his or her particular job function. technology. holistic. such as performing upfront needs analyses. The solutions and processes help to facilitate IT transformation. so that it satisfies different organizational objectives. and people. and structured. so it can address all three critical dimensions of the ITIL challenge: process. By exposing all staff members to ITIL. so you can derive the maximum value from your investment in these solutions. offering ITIL certification. motivating and informing all your employees so they embrace ITIL-based best practices is yet another challenge. and obtaining how-to instruction in using the BSM solutions that support ITIL processes. technology. technology. the educational offering should be structured.
please visit www. They should be ITIL certified and have extensive practical experience in implementing and using ITIL based processes and BSM solutions.bmc. Only tailored.com/education. infrastruCture liBrarY Best PraCtiCes Strategy • ITIL and Process Education • Cultural Change Messaging Implementation • Implementation Training • Administration and Development Training Value Measurement • Best Practices Education Operation and Optimization • End-User Training • Certification Programs IT Transformation • Administration • ITIL V3 Education Foundation around Service • ITIL V2 Management Practitioner and Service Manager Solutions • Development • COBIT Education for Key • ISO 20000 Solution Platforms • Mobilization • Solution Sessions Installation and Configuration • Solution Optimization and Best Practices • End-User Application Education • Solution PerformanceTuning Education • Solutions-based Certification Programs BMC Educational Services Figure 1. Educational services support IT transformation that is part of an ITIL-based BSM delivery system effective learning.i. For information about BMC Software educational services that support ITIL. experienced teachers The most effective instructors have more than just an academic familiarity with ITIL.t. that insight adds significant value to the instruction and helps students learn from the successes of others and avoid common pitfalls. expert educational services can deliver the right lessons so your company achieves its ITIL objectives faster — with less risk and greater predictability. 49 . When an instructor can answer questions on the basis of practical experience.
Williams was an ITIL instructor and education manager for the BMC Software Business School and director of IT Service Management for the BMC IT department. and in product management of key mainframe products. and a Ph. Atwell williAms. security. 50 . an M. He has served as an ITIL instructor and is certified in the following ITIL areas: ITIL foundation. Her prior industry experience is in marketing leadership for identity management as well as distributed and mainframe solutions. has a unique combination of IT process expertise and real-world IT experience. England. She has also been an instructor for courses on IMS and DB2. in Gendered Learning from The University of Kent at Canterbury. where he was responsible for assuring the overall performance.. Prior to joining BMC. vice president. manages a team that is responsible for marketing and strategy for consulting services. director of Solutions Marketing for Services at BMC. Inc. availability. a solutions architect in BMC’s CTO Office. practitioner.D. she was senior director of Worldwide Education for Brocade Communications Systems. and customer support. Previously. England. Managerial Leadership concentration.B. and recoverability of the company’s internal production applications. has more than 20 years of extensive training and development experience in the global IT industry. Worldwide Educational Services at BMC. Moss holds a Bachelor of Arts in English from The University of Gloucester.A. educational services.aBout tHe autHors linDA moss. BronnA shAPiro. Her experience also includes operating a successful training and management consultancy in Europe for ten years. from City University. and service manager.
or contemplating what kind of car to buy. you continually make decisions about purchases by considering the value you’ll get from your investment.i. 51 .” Your stock broker might urge you to invest in a startup company that promises to be “the next millionaire-maker. BMC Software In life. Then you might try to project the value that each option will deliver for your investment. Whether you are evaluating which stock or mutual fund to add to your retirement portfolio. considering different real estate options. Service Assurance.t. as in business. you will most likely begin by comparing several possible choices. BMC Software Marina Yesakova Senior Strategic Marketing Manager. You may even solicit advice from “experts. finanCial JustifiCation Proving the value of Your it investment with roi By Mary Nugent Vice President.” Your real estate agent may try to talk you into buying a home in a new development that is “selling out fast!” And your local car dealer might try to persuade you of the benefits of buying a luxury car by building a case for its resale value.
the focus on financial returns has heightened. To get a project funded. It’s no different in the business world. ROI measures how much value the business will realize (the benefits) relative to the investment (the cost) over a specified period of time. you must present a solid business case that shows tangible benefits and that promises excellent roi. But knowing instinctively that a particular IT project will deliver value to the business isn’t enough. to get a project funded. and both benefits and costs (if applicable) are discounted to the present value. or exciting new personal data devices with features the sales team will love. software with unique capabilities. The results are presented as a percentage. you must present a solid business case that shows tangible benefits and that promises excellent ROI. a short Course in roi Let’s start with the basics. whether it is part of your retirement portfolio.The deciding factor for where and how you invest your money most likely hinges on the answer to this question: How much money will you earn over time (return) on the money you invest now? You want to know the projected return on your investment (ROI). But wouldn’t it be nice if there were a tried-and-true method that takes the guesswork out of ROI calculations and makes it easy to defend your case to the business? Fortunately. the focus on financial returns has heightened. This article will outline several effective steps to address ROI analysis and demonstrate the value of your project in terms business leaders understand. Your IT team might be lured by new hardware. minus total investment and costs. As IT continues to move from a cost center to a revenuegenerating business unit. 52 . divided by total investment and costs. The calculation is a simple one that works for any industry: benefits divided by costs. as it continues to move from a cost center to a revenue-generating business unit. And you may be convinced that such purchases would be a great boon to the business. the home you live in. Even people without a strong finance background must do financial analysis in their personal lives. Another way to calculate ROI is this: total benefit. And you may well have this experience when calculating ROI for your IT department. there is. or the car you drive.
and the quantified value of customer retention. Outside consultants and trusted vendors complement internal analysts. conservative. These outside resources can help validate your assumptions and provide relevant industry data. People within your IT organization know your company well and can provide insight into how the business operates. an ROI analysis must be sound and trustworthy. because the model is applicable to any type of purchase and can be adjusted according to your company standards and requirements. Our simple. As costs. because the model is applicable to any type of purchase and can be adjusted according to your company standards and requirements. To be effective. outside experts can give you a fresh perspective from which to benchmark your company against your competitors. you can include IT improvements. For example. risk avoidance. 53 . Make it Credible Would you purchase a home in an expensive neighborhood just because one person says it’s a good investment? Or would you check out local property values. compare similar neighborhoods. a credible ROI analysis leverages input from multiple sources. Similarly. as benefits. you might include the purchase price of the software. such as additional revenue generated with the new solution. the cost of solution deployment. optimized labor resources. and comprehensive. you can customize the analysis based on the metrics that are critical to your business. And because of their knowledge of the industry. offering insights into best practices unique to your industry. the training needed to use it properly. That is. 4C framework will help you ensure soundness and trustworthiness by building an analysis that is credible. and upgrades.i.t. roi is an attractive tool for evaluating it investment decisions. such as reduced mean time to repair (MTTR) and faster resolution of service desk calls. as well as business metrics. and perform your own due-diligence research to see whether something else would better suit your family’s needs? Chances are pretty good that you wouldn’t settle for one opinion on a purchase as important as your home. customer focused. as well as relating the experiences of other companies that have successfully undertaken similar projects. finanCial JustifiCation ROI is an attractive tool for evaluating IT investment decisions.
or are you implying that they will all occur immediately? > Has project risk been considered? Being conservative does not mean simply cutting all the benefits and expected improvements in half. Being conservative does not mean simply cutting all the benefits and expected improvements in half. recommendations for overly optimistic returns usually fall apart under scrutiny. For example. it means that you are using a thoughtful. On the other hand. and used by other companies in your industry? > Has the model been calibrated by post-deployment ROI studies of actual results? Be Conservative Just like a too-good-to-be-true stock tip that promises to make you a fortune in no time at all. critical examination. a promise to reduce IT operating costs by 95 percent while the department retains the same functions and processes isn’t likely to survive a close. 54 . Your answers to the following questions will help ensure a conservative approach to calculating ROI: > Are the cost reductions or performance improvements backed by documented research or industry standards? > Are the savings based on realistic costs for your industry and geography? > Are the benefits phased over time.To ensure credibility. rather than the other way around. extensive interactions with hundreds of organizations reveal that conservative ROI models stand up to scrutiny time and again. you need to find the answers to each of these questions: > How recently was the ROI analytical model developed? > Was it certified by a third-party research or analyst firm? > Has the model been benchmarked. analytical approach that considers realistic costs and benefits backed by industry data and internal research. analytical approach that considers realistic costs and benefits backed by industry data and internal research. tested. There is also an important psychological advantage to using a conservative approach to ROI: Think how much happier management will be if the actual ROI exceeds your projected ROI. It means that you are using a thoughtful.
Answers to the following questions will help you bring customer focus into the equation: > Did you receive input from the people who will benefit from the new system or technology? > Or.t. Or maybe safety is your key concern. the intangible benefit of working closely with customers and having an ongoing dialogue with them to understand benefits in the longer term will enhance your relationship and trust position with customers. instead. In addition. consider your current maturity level relative to the area where you are making the investment. the closer the projected benefits will be to actual results. but a hybrid might be more your style. The most effective ROI analysis is based on your company’s unique situation. your analysis should reflect the incremental value beyond what you are receiving today. and the sedan doesn’t have the features you want to protect your family. 55 . the bottom line is that the more the roi analysis reflects your environment. did you rely on industry averages of companies like yours? > How precisely does the business case reflect your specific situation? Your results will be realistic if your analysis is based on the business-critical applications your company uses and the actual business impact of downtime for each application. It is unlikely that you are starting from scratch. It should. This approach shows what you can realistically expect to achieve given the technology or processes that are in place. for example. so you already have at least some capabilities in the area where the investment will be placed. Consequently. Maybe you’re more concerned about the impact on the environment than on the status of a fancy car. Considering these types of unique concerns is analogous to what you need to do when calculating ROI. the closer the projected benefits will be to actual results.i. finanCial JustifiCation stay Customer Focused Your car salesperson may think a luxury sedan is the best vehicle to hold its resale value. The bottom line is that the more the ROI analysis reflects your environment.
take a Comprehensive approach
When you first started making purchasing and investment decisions, you were not as savvy about your options as you are today. You may not have known what questions to ask before making a decision. With more experience, you now know that you must be thorough and analyze every contingency before deciding where to place your money. That same kind of comprehensive approach will help you calculate realistic ROI on your IT investments. You can ensure that your analysis is comprehensive by getting satisfactory answers to the following questions: > What does the ROI model cover? > Does the model research both IT and business benefits? > Are all costs and benefits included as applicable for your industry? > Is it based on third-party research? > Has it evolved over the years? > Are your benefit metrics current? > Does your model include cost savings as well as the business benefits? Your analysis should reach beyond IT benefits to include the expected business benefits the investment can deliver. By closely collaborating with the business, IT can become a change agent as well as a trusted advisor to the business. Situations in which IT proactively seeks solutions to satisfy potential business needs, or cooperates with the business in solving existing business-critical issues, will yield excellent companywide results and tangible business impact. This includes increased gross profit, higher customer satisfaction ratings with the IT services, and an equal partnership between IT and business management.
Your analysis should reach beyond it benefits to include the expected business benefits the investment can deliver.
From the cost side, it’s essential to include all major purchase components — software licenses, hardware, maintenance costs, training, and consulting, as well as internal costs. A good guideline is to ensure that the costs and benefits are mutually exclusive and collectively exhaustive. Include all potential costs and benefits while avoiding double-counting or overlapping of items.
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ROI is an integral part of building a business case that assesses the value a project can be expected to deliver. As you build your case, be sure that your analysis stands up to scrutiny: Is it credible? Is it conservative? Is it customer focused? Is it comprehensive? If you can answer yes to all four questions, you’ll end up with a sound and trustworthy analysis that top management can understand and buy into.
aBout tHe autHors
mAry nugent, vice president, Service Assurance, BMC Software, is an accomplished software technology executive with extensive expertise and in-depth knowledge in the emerging service management marketplace. She manages BMC’s customer-facing efforts for the company’s Service Assurance portfolio, including infrastructure management, event and impact management, and capacity management products. Prior to joining BMC Software, she was the director of business development for a startup, ISV Logistic Solutions, and also worked as an independent consultant for companies deploying mission-critical client-server technologies. In addition to her 15 years of technology experience, she also has 10 years of experience in public accounting and is a certified public accountant. mArinA yesAKovA is a senior strategic marketing manager at BMC Software. She leads
the financial justification of IT purchasing decision initiatives by creating financial and statistical models and business cases for BMC customers. Yesakova holds a B.A. and M.A. in linguistics from Moscow State University, Russia, and an M.B.A. from Rice University.
Measuring it value with a service-oriented approach Based on itil
By Ken Turbitt President and CEO, Service Management Consultancy (SMCG) Ltd. Marina Yesakova Senior Strategic Marketing Manager, BMC Software
The term “value” is an overused buzzword, slapped onto any product that lines a supermarket shelf. But for IT managers, this term means shifting the focus from the parts that go into making a product — or the processes behind producing a service — to the outputs. Or rather, how do consumers perceive the value of the products and services they buy? In the case of IT, this refers to IT services. All too often, the business hears only the bad news coming from IT, and not the good. As a result, some IT organizations today are perceived as being “optional,” and business units can, and do, take their IT business elsewhere. To secure budget for more investments, IT needs to show the value it provides to the business: How many outages (the most
Their comments are included in this article. We discussed this topic with Michael Nieves. “For example. This is not wrong. “This model positions the customer as the last item on the chain rather than as the genesis of value creation. what is less effective than an engineering team that efficiently churns out elegant system designs for the wrong service?” the focus on efficiently managing the resources that go into work is known as the manufacturing mindset. By focusing on measuring the right outputs from IT.t. Guidance from the IT Infrastructure Library® (ITIL® ) based on ITIL Version 3 (V3) is especially important in today’s marketplace. and IT needs to articulate these types of value back to the business. does it generate frustration and incomplete work. The reason for this mindset lies in the fact that until recently. but when a customer needs a shift.i. it Focuses on output “Focusing solely on the craft that goes into the making of products and services ignores an important question: Are you making the right things to begin with?’’ says Nieves. was presented as an assembly line metaphor.” 59 . adding to revenue? Measuring these IT outputs is the new way to think about ROI. the prevailing industry in the United States was manufacturing. “The value chain. As a global economy. we’re only now really beginning to understand this thing called ‘services’ and its implications. author of the ITIL V3 Service Strategy book and a partner at Accenture. and Jack Bischof. an Accenture senior manager. the service provider may fall into a management trap where internal efficiency is confused with effectiveness or external efficiency.” Nieves says. because personnel move too quickly from one call to the next? The focus on efficiently managing the resources that go into work is known as the manufacturing mindset. The priority is to lower the unit costs of services by consistently doing the same thing over and over again. managers can maximize their resources and effectively allocate their IT staff to produce more valuable and higher-quality products and services. One of these implications is the realization that it is easy to become confused about what matters to customers and fall into well-meaning activities focused on ‘business as usual — only better’. For instance. does rapid service desk response create customer benefits? Or. as taught in business schools. finanCial JustifiCation common failure and cause of the erosion of profits) have been prevented by new monitoring software and change management? How quickly did IT get a new service or solution out to market.
Marketing Myopia. but is relatively new to IT. IT must be treated as a true business partner that helps the organization achieve its corporate goals. therefore. not the drill. 1 Harvard Business Review. “In ITIL Version 2. chances are that their sole encounter with a business is funneled through one department: IT. But value emerges when customers consume IT’s services in pursuit of their own outcomes. 1960. or interacting with the local cable installer. people. there was a lot of language about effectiveness and engaging with customers. As the legendary Harvard marketing professor Theodore Levitt put it. “This means identifying and designing services that enable articulated and non-articulated business outcomes. You’ve got to study the hole. and deliver it in a way that reinforces its intended use.” Nieves says. and deliver it in a way that reinforces its intended use. IT’s challenge is. 60 . the more value you create. but the focus was generally on the inputs.The implications go beyond business-to-business interactions. design a service and associated experiences to facilitate that job. the value an organization seeks to create is not in its internal technologies or processes or any other abilities. They buy a quarter-inch hole. and making those services easily available and understood. From this perspective. design a service and associated experiences to facilitate that job. The drill is just the solution for it. “When you have limited floor space. to understand the jobs in customers’ lives for which they might use it’s services. and computing capacity. but in how consumers perceive its products or outcomes.”1 it’s challenge is.” says Nieves. According to Jack Bischof. the more efficiently you use your available resources. making travel reservations. Whether consumers are using an ATM.” itil v3 Helps it leaders adapt to the new reality The marketing mindset is a key concept introduced in ITIL V3. Only then will customers seek and value that service when they need to get the job done. These services need to provide a level of transparency in terms of cost/benefit and performance that has been common to businesses for centuries. In today’s global economy. therefore. “People don’t buy a quarterinch drill. to understand the jobs in customers’ lives for which they might use IT’s services.
” says Nieves.” says Nieves.” ROI is not necessarily the most appropriate metric. “The idea of value creation. as well as improve call resolution rates. which will mean moving closer to effectively facilitating those customer-desired outcomes. Value is different for everyone. processes.” says Nieves. finanCial JustifiCation “The service provider can apply internal efficiency measurements and effect change only when the service provider comprehends what is effective in facilitating those outcomes. but the problem is that value takes on many forms. 61 . then IT organizations focused on business priorities in this manner can reduce downtime and service desk call volume. others swear at people who use them. and. and technologies onto customer outcomes allows the service provider to better align internal efficiency measurements to external efficiency measurements. we’ve realized that following ROI models restricts our thinking to that domain. they’re abstract concepts that are difficult to quantify — and measure. Locking organizational structures. restricts the opportunities available to us. and not just tactical. “Over the past few years. perceive the product or service? How easy is it to obtain? These are intangible. internal or external. “It comes from many sources.” ROI refers to the measurement of cash flows. how useful is this service or product? How do your consumers.” roi is not necessarily the most appropriate metric. one of the most dramatic changes in it is a shift toward a different type of measurement. Some people swear by their cell phones. Business Service Management (BSM) is an approach for managing IT according to the business perspective. given the intangible nature of “value. How to Measure value One of the most dramatic changes in IT is a shift toward a different type of measurement.” Unfortunately. is not a widget coming off of an assembly line. although these are factors to consider. and hence the customers’ needs. “For example. They can also provide business metrics. subjective questions that only the customer can answer. and risk mitigation. measurement systems.t. this approach enables IT decision makers to start down the path of IT innovation by allocating time and resources for strategic. recovered revenue streams. Given the intangible nature of “value. such as improved productivity. Moreover. in turn. particularly when dealing with intangible topics.i. When solutions align the BSM strategy with the ITIL methodology. projects.
“Measurement is supposed to give us insight, whether it’s financial or otherwise,” Nieves says. “Its purpose is to give us something upon which to remove uncertainties and to make strategic decisions. It’s a tool for managers, offering a glimpse of something they didn’t know before. If managers have a financial metric, they’re going to make financially based decisions. But the argument we’re making is that there are other considerations to help remove risk and decrease uncertainty, and they’re not necessarily taken into account with an ROI analysis.” Management needs to understand that the paths to new opportunities can’t always be justified with a first-order financial analysis; however, at some point intangibles need to have costs associated with them. A service exists only when it’s actually being consumed, so what’s the best way to approach value creation? Although no single way to measure value will fit all cases, ITIL offers several paths to value: > Value on investment (VOI) appears in the Continual Service Improvement book of ITIL V3. This metric is the total measure of benefits derived from soft benefits. Used alone or with ROI, it allows decision makers to take into account those benefits that are usually considered intangible. Examples of these intangible benefits include the higher competency of the IT department, increased business throughput, the value of compliance, improved business agility, etc.
a service exists only when it’s actually being consumed, so what’s the best way to approach value creation?
> Service valuation appears in the Service Strategy book of ITIL V3. Measuring service value, or the sources of service value, is addressed by two approaches to value: – The cost associated with delivering an IT service (provisioning value) – The total value to the business of that service (service value potential), which includes quantifying the practical application of the innovation when the value potential of a service is unlocked, and exceeds the expected utility of a service These can be great metrics to use if several stakeholders or departments need to agree on the value of a service.
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> Value for money appears in the Service Strategy book of ITIL V3. It is a rather informal measure of cost effectiveness that compares one set of costs to the costs of alternatives. > Return on value (ROV) is used to help analyze factors beyond the strict rigor of ROI analysis, such as competitive, functional, process, relationship, strategic, and other values.
Choosing the most appropriate measurement tool depends on your organizational goals and it roles.
You may want to consider other measures that are based on accounting and finance practices, such as: > Return on investment (ROI) is a financial metric that evaluates the efficiency of your IT investment. It is one of the more widely used methodologies that takes into account costs and all measurable (tangible) benefits of the IT solution. > Net present value (NPV) is another financial metric that is used to appraise long-term projects. It measures the cash flows (excess or shortfall) in present value dollars to demonstrate the achieved (cash) return. > Economic value add (EVA) is the financial performance measure that estimates the true economic profit by identifying the amount by which earnings exceeded or fell short of the required minimum return rate, thus capturing the true economic profit of the enterprise. Choosing the most appropriate measurement tool depends on your organizational goals and IT roles. For example, are you screening a new project? Are you measuring internal effectiveness? Are you evaluating a project that has never been done before? The motivation for doing the project dictates how you will begin the process for measurement. Keep in mind that rigorous, established financial metrics might not help you measure innovation. However, the more intangible variables can be difficult to measure. So what should you do? Make sure to avoid these pitfalls by clearly articulating your goals: see the organization through the eyes of its customers and identify those outcomes that matter most to them.
use a checklist when considering which metric to use, whether for your customer or for your internal it organization: > first, define value for your organization. identify the components of value that are most important. Compare these metrics to how you measured value two years ago. remember, chances are that your value will continually evolve and not be the same over time. > second, select the metric on the basis of your needs. Know whether you have available data to assess and to enter into the metric. if some value measurement sounds good on paper, but no data currently exists to measure it, then that metric might not be a good fit. for example, the cost of gathering data might outweigh the benefit of having a metric in place. > third, create accountability. Who is responsible for gathering the data, and what steps are taken once the metric is available? assign an owner to the metric and a team that will make decisions based on it, and hold them accountable. > finally, one measurement data point will not be enough. establish several points at which the measure will be taken. this will be a clear path of your value achievement. for example, if you projected an roi before the project, measure it after the solution is deployed to see what value was realized and what is still left on the table, and continue measuring the primary benefit drivers that went into the original analysis.
Regardless of the technique employed, every IT manager should become comfortable with the various metrics and be able to articulate value and justify projects. Consider designating an expert within the department who can identify which metric to employ. If all else fails, seek a specialist outside your company. The success of setting the right metric and creating measurable value outputs on which you can take action will not only help you assess your current state, but will also guide your decision-making process and help you avoid costly, painful mistakes.
they buy satisfaction of a particular need. When you attempt to measure value using a financial metric. Measuring Value High Conclusion Customers don’t buy products. If you step away from the product and take a higher-level view. you might find new ways to make a better product or to create a new one altogether. finanCial JustifiCation Complex STRATEGIC BENEFITS Value-Based Metrics Financial Metrics IT-Based Metrics Simple Low POTENTIAL FOR PROFIT Figure 1. Service providers can do more harm than good by answering questions about value for their customers. But when you use a non-financial metric. People don’t make every purchasing decision on price alone. you could miss out on an opportunity to make a better product. 65 .i. you could fail to measure the very things needed for making effective IT decisions. you haven’t measured value at all. If you focus only on price and it isn’t a factor in the purchasing decision.t.
He has been qualified as an ISEB ITIL Manager for more than 12 years and was an official reviewer of the ITIL V3 Service Design book.A.com. She leads the financial justification of IT purchasing decision initiatives by creating financial and statistical models and business cases for BMC customers. Russia. Turbitt is a member of the Institute for the Management of Information Systems. in linguistics from Moscow State University.. from Rice University.A. Your vendor can also suggest several ways to measure the value of your solutions.A. Yesakova holds a B. and M.B. British Computer Society (BCS). 66 . is a recognized industry expert in IT best practices. ITIL V3 will help guide you through the steps to measuring value.bmc. Service Management Consultancy (SMCG) Ltd.Adopting the new mindset and shifting the focus from inputs to outputs will position your organization ahead of the competition. Solutions from a trusted vendor can support your quest to create a more strategy-focused IT department. and itSMF . president and CEO. For more information about these solutions. mArinA yesAKovA is a senior strategic marketing manager at BMC Software. so that you see the highest benefits achieved and can make sound judgments about the future of your IT department. and an M. visit www. aBout tHe autHors Ken turBitt.
Mainframe Service Management Business Unit. and dispatching has become a nightmare because it requires the synchronization of several smaller trucks to carry the load that one big rig would have carried. The smaller trucks are just not up to the task. The manager now has far more trucks to manage and maintain.i.t. The big rigs were designed specifically to handle extremely large loads and to reliably haul these loads over long distances. BMC Software A fleet manager of a large enterprise is under pressure from senior management to reduce costs. finanCial JustifiCation Justifying the Cost of the Mainframe: increasing the Business value of the Data Center By Ralph Crosby Chief Technology Officer. 67 . They can’t match the unique capabilities of the big rigs. That’s a bad decision. So. he decides to replace his large semi-trailer rigs with less-expensive smaller trucks. Deliveries are suffering and customers are complaining.
particularly mission-critical ones. particularly mission-critical ones. you must know which business services and which business processes that resource supports. you’ll find that the mainframe is the optimum platform for certain applications and databases. Cost versus value In response to the pressure to reduce costs. To determine the business value of a resource. Others have achieved the migration. When you make re-platforming decisions.What does this have to do with IT? Some IT managers who are under pressure to cut costs are making a similar mistake. you may have set out to “optimize” your data center. This typically involves looking at the applications and databases on each server and determining whether they can be deployed more cost-effectively by consolidating them on a lower-cost platform or moving them to other types of platforms altogether. Many have abandoned the projects after long and costly efforts because they simply could not get them to work. You also need to know the business criticality of those services as measured by the impact that performance degradation or 68 . In addition to cost. When weighing cost against value. The results are not encouraging. it is important to consider the value of the business services supported by the applications or databases. When weighing cost against value. but performance or reliability has suffered. If you are considering moving applications or databases off the mainframe. and whether that value is increased or decreased by moving to other seemingly less-costly platforms. But cost is only part of the equation. you’ll find that the mainframe is the optimum platform for certain applications and databases. the goal is to deliver the highest value at the lowest cost. You also have to balance cost against the value of the services that the resources deliver to the business. you must take into account the cost of operating the applications and databases on both the source and the potential target platforms. They are considering moving mature and stable applications and databases off mainframes and onto smaller machines. keep in mind the plight of the fleet manager.
for example. such as by advancing the state of the application or developing a new application. a major retailer attempted to move a large mainframe DB2® database to Wintel servers. because moving a very large. A server that supports online stock trading. the IT staff was able to move the application and have it work. availability. Moreover. Some of these projects have failed outright because the other platforms could not match the powerful capabilities of the mainframe. The quality of service may suffer. such as performance slowdown below acceptable levels. only to discover that the recovery time for the application was completely unacceptable. The money spent may take a long time to recoup. the mainframe’s ability to handle extremely large databases and huge transaction volumes — and do it with unmatched reliability. For example. In an attempt to lower costs. even if the migration off the mainframe is successful. After spending a substantial amount of time and money. there could be other risks. the project was abandoned. there could be other risks. Problems with a Cost-only analysis Making decisions based solely on cost is shortsighted and could expose the organization to considerable business risk. and serviceability — is crucial in many business-critical applications. As a result.t. stable. the time and money spent could have been used in other ways to deliver greater business value. availability. Include these factors when you assess the business value of the mainframe and justify its cost.i. is of higher value to a brokerage business than a server that supports online access to employee benefits information. and performance of that resource. For example. Even if the migration off the mainframe is successful. stable applications or databases off the mainframe onto other platforms. These migrations are usually costly. finanCial JustifiCation temporary loss of those services would have on the business. some organizations have opted to move mature. The business value of a resource is underpinned by the inherent capacity. 69 . and mature application or database off the mainframe requires a non-trivial effort that may involve expensive consulting engagements.
unique strengths of the Mainframe The mainframe has several unique strengths that make it the right platform for certain jobs. availability. Rightplatforming means selecting the optimum platform for each job. The right platform must have the required processing and storage capacity to support the business services. and performance. Its exceptional processing and storage capacity enables the mainframe to handle massive databases and huge transaction volumes.right-Platforming versus lowest-Cost Platforming It is essential to strive for right-platforming rather than looking only to lower costs. serviceability. it must deliver those services at the required levels of reliability. A Business Service Management (BSM) approach provides solutions that enable you to manage IT according to business objectives. the platform must have sufficient scalability to meet expected future requirements. It must deliver those services at the required levels of reliability. such as those outlined in the IT Infrastructure Library® (ITIL® ) guidelines. in addition. Manage it from a Business Perspective How do you create a more cost-effective data center? First. Then. and resilience. The software operating environment is also highly resilient. you should optimize your management of the data center to derive maximum business value from the optimized resources. unparalleled business continuity. Mainframes also have extremely high fault tolerance and highly advanced backup and recovery capabilities that permit these platforms to continue operation in the event of a failure or even a catastrophe in the data center — without missing a single transaction. evaluate the platform assignment using a cost/value analysis and. availability. and services. migrate applications and databases to other. the more mission critical the application. the platform must have sufficient scalability to meet expected future requirements. The solutions should be based on best-practice IT processes. availability. more cost-effective platforms. where necessary. the right platform must have the required processing and storage capacity to support the business services. and performance. 70 . Software can be installed and updated without rebooting or otherwise interrupting operation. In general. the highest level of reliability. In addition. These include unmatched capacity. serviceability. the more important the characteristics of the mainframe become.
their current workload profiles. 71 . He has authored several products in the DB2 product line and has worked as an architect in storage management. increased staff productivity.t. > Assess the business value of the resources. Crosby worked as a database administrator. These include comprehensive resource monitoring. but also including Windows and UNIX platforms. mapping the relationships among the IT resources and the business services and processes that the resources support. aBout tHe autHor rAlPh CrosBy is chief technology officer of the BMC Mainframe Service Management Business Unit. > Consolidate workloads and deploy them to the most cost-effective platforms.com/mainframe. The results are compelling and include improved service quality. and systems programmer in a variety of environments centered on the IBM mainframe. > Reconfigure resources to lower costs while maximizing business value. reduced service desk workload. and their total costs of ownership. You can justify the cost and maximize the value of your mainframes to the business. finanCial JustifiCation Follow these steps to create a more cost-effective data center: > Establish a baseline.i. visit www. This process will help you drive up the value of the other resources in your data center. Prior to joining BMC. where he is responsible for setting the strategic technology direction for the entire portfolio of IBM mainframe products at BMC. Look for solutions that encompass the mainframe as well as other platforms in an integrated fashion.bmc. you can avoid the costly mistakes of the fleet manager. faster problem resolution. Determine the business services supported by each resource and assess the value of the resource in delivering the services. as well as sophisticated analysis and modeling. For more information about BMC solutions for the mainframe. initially working with the DB2 product line. applications architect. Well-architected BSM solutions can help you right-platform by providing three major capabilities. He has been with the company for 13 years. Determine what resources you have in the data center. and other business benefits. By leveraging solutions to right-platform and manage your data center.
Five steps to gain Control and Manage Complexity in the Data Center through service automation By Kia Behnia Chief Corporate Architect. as well as legacy distributed and mainframe computing environments that 72 . woman. such as server virtualization. This complex IT network includes new technologies. IT infrastructures have become exceedingly complex. resulting in a highly interconnected network of new and powerful technologies. CTO Office. and child in the United States would need to provide operator service to support the rapidly growing and increasingly complex telephone network.” Over the last decade. It’s like navigating through a “perfect storm. it was predicted that eventually every man. BMC Software In the early days of the telephone. You may have made a similar assessment of what it will take to manage your IT infrastructure. when human operators manually switched calls.
Many of the day-to-day management activities supporting this complex environment are still performed manually. you can improve operational efficiency and gain control over service quality. By automating these onerous tasks. release. Fortunately. patching. Service automation includes a set of integrated solutions for automated configuration management. and client systems. you can improve operational efficiency and gain control over service quality. senior management is pressuring IT to reduce costs. while simultaneously reducing risk and costs and making compliance a byproduct of your processes. applications. you can meet these challenges through service automation. even the slightest human error can cause devastating service outages that adversely affect quality of service. and business agility. you must demonstrate agility and efficiency throughout the lifecycle of change. and remediating software across servers. and remediating software across servers. auditing. patching. while simultaneously reducing risk and costs and making compliance a byproduct of your processes. and configuration management. network devices. network devices. and business agility. security. By automating these onerous tasks. Service automation enables you to automate provisioning. network devices. auditing. security. including physical and virtual servers. It’s also important to automate the lifecycle management of critical business services across the entire IT infrastructure. and a continuing flood of patches and updates. To effectively manage your data center in this turbulent atmosphere. and client systems in support of changing business needs. The eye of this perfect storm is the data center. a changing user base. You must do this in an environment that is in a state of continual flux. As such. top-line revenues. service automation enables you to automate provisioning. To make matters worse. you have to navigate through territory in which the cost of mistakes can be substantial and the chance of making mistakes is increasing. As if that were not enough. while the complexity of the IT infrastructure seems to grow every year. 73 . In this mode of operation. government regulations and internal policies are demanding stricter governance and auditability.autoMateD reQuest anD DeliverY of Business serviCes support millions of transactions through multitiered applications. often with little repeatability and low reliability. and even a company’s reputation. and client systems in support of changing business needs. with changing business conditions.
you assess your current situation and establish your vision for service automation. what is the tangible business impact?” > Take the first steps toward developing a road map for implementing a service automation capability to meet your business needs. Address your most critical areas first. The result of this step is an approach for addressing the gaps between your current situation and your vision across all of these areas. > Evaluate the current state and maturity of your IT processes for such areas as change. configuration. > Evaluate the current toolsets and technology to support processes. such as provisioning and compliance. Prioritize projects according to your organization’s most pressing needs. It is advisable to take a phased. people. you assess your current operational performance against your vision to determine the gaps. and then continue to improve those areas while adding more capabilities. step 1: establish Your vision In this step.In charting your course to service automation. > Identify potential areas of improvement in your current processes that you can address through service automation. > Gain a greater understanding of your current IT operations and processes. breaking your program into bite-sized projects. > Identify your pain points and the key business benefits you expect to achieve. compliance. it is advisable to take a phased. incremental approach. breaking your program into bite-sized projects. take a deliberate and well-planned incremental approach. step 2: Create a Map Here. “If IT improves x process. > Begin to prioritize your initiatives based on business impact. Prioritize projects according to your organization’s most pressing needs and current service management maturity level. Be sure to include technology. and governance in your assessment. process. 74 . incremental approach. and release management. policy.
as well as governance and organizational alignment strategies. > Define detailed implementation plans and program infrastructure in terms of personnel. and organizational transformation. Develop a program plan that defines the processes. The program plan should address milestones. > Prepare your people for the process and technology changes that will occur. policies. the interfaces that need to be discovered. You also need to establish a common foundation for the program that includes service definitions. roles. > Design your logical architecture. > Establish effective and efficient processes that help you deliver IT services in line with business expectations. IT processes. and supporting technology architecture. it processes. > Prepare a high-level implementation plan describing the individual projects that will make up your program. federated data. review requirements. > Establish success metrics and baseline your current capabilities so that improvements are measurable and demonstrable. project dependencies. standards. and supporting technology architecture. as well as governance and organizational alignment strategies. You also need to establish a common foundation for the program that includes service definitions. deliverables. and security requirements. and guidelines that will govern the implementation of each of the projects that you have selected. step 3: Define Your Program This step involves laying the foundation for the projects outlined in the map you created in Step 2. addressing such items as the foundation data required. and ensure that dependencies and relationships among each of these implementation projects are managed effectively.autoMateD reQuest anD DeliverY of Business serviCes > Identify value drivers and predict the business benefits of the proposed solutions. 75 . > Ensure that the solutions you select will support your business objectives and help you adapt to the changing needs of the business. and project resources.
> Continually monitor and improve upon the process. you execute the individual projects that you specified in the program plan developed in Step 3. > Define a team model that identifies the people responsible for carrying out each of the tasks in the project. but necessary. you can get ahead of the perfect storm. repetitive tasks. You will also dramatically improve IT staff productivity by automating time-consuming. patching. you will become more responsive to the needs of the business. Business agility is increased by speeding up such tasks as rolling out new and updated business services and applications and on-boarding new employees.step 4: Put Your Plans into action Here. > Define a process that outlines the required activities and tasks. organization. technology. providing your company a competitive edge. For each project: > Establish goals that include key milestones and stakeholders. > Measure and evaluate the benefits realized from the projects using the metrics you established in Step 2. such as provisioning. and Continually improve In this step. 76 . you will protect your valuable knowledge by embedding this knowledge in automated processes. > Take advantage of any tools or methods that are available to help you complete the project on time and within budget. You also use this step to continually improve your service automation initiatives. you assess your implementation against your vision to determine if you are gaining the business benefits you expect. Finally. step 5: Measure. reap the Benefits With service automation. > Ensure that the solutions are operated and maintained effectively. the key here is to have the appropriate set of phases to meet and exceed expectations. and auditing today’s complex IT environment. Monitor. By moving up to a whole new level of service automation. and governance strategies that you have implemented.
is responsible for leading the design of BMC Atrium. 77 .autoMateD reQuest anD DeliverY of Business serviCes For more information about BMC Service Automation. chief corporate architect in the CTO Office at BMC Software.bmc. which was acquired by BMC.com/serviceautomation. Behnia has more than 15 years of experience in the management of distributed systems and databases. the industry-leading. Inc. visit www. and CTO for Marimba.. He was previously CTO for the change and configuration products at BMC. aBout tHe autHor KiA BehniA. service-enabling architecture for Business Service Management from BMC. he served as a senior member of the technical team for Tivoli Systems. Prior to joining Marimba. Inc.
using automated application Problem resolution to overcome offshoring Challenges By Doug Laney Director of Customer Solutions Strategy. Ltd.. Plunkett Research http://www. and worldwide spending on offshore research and development (R&D) and engineering in 2007 should have been about $22 billion. BMC Software As IT increasingly becomes an enabler of business processes that provide competitive differentiation. application development executives struggle with the rising demand for custom business applications. How do you cut budgets and maintain quality? Many organizations turn to outsourcing. They are also dealing with increased pressure to maintain or reduce costs in an environment where there is a shortage of onshore development staff.plunkettresearch. spending on worldwide offshore application development services in 2007 should have been about $28 billion. According to Plunkett Research. Plunkett’s Outsourcing & Offshoring Industry Overview 2008.com/Industries/OutsourcingOffshoring/OutsourcingOffshoringStatistics/tabid/182/Default.1 1 Plunkett Research. 78 . sending their work outside their country (known as offshoring). The process of offshoring is exceedingly common in the IT industry.
Yet. accelerate root cause analysis. It involves significant developer time in both the application development and maintenance stages of the software lifecycle. in the face of onshore talent shortages. Other approaches include investing in application lifecycle management tools that enable better management of software development projects. IT operators. or even accelerate them. When teams are located across different time zones. and end users speak different languages. organizations need to automate the problem resolution process. these initiatives and tools fail to address the time-consuming. To realize the benefits from offshore software development. and streamline communication across disparate teams. accelerate root cause analysis. such as agile development. and fixing software issues found during testing or by users. issues to address Organizations run the risk of jeopardizing their offshoring gains if key issues are not addressed. Language is often an obstacle to cross-team communications. The process of diagnosing and fixing problems requires multiple interactions among developers. and streamline communication across disparate teams. And most of this time is spent analyzing the defect.autoMateD reQuest anD DeliverY of Business serviCes Usually viewed as a means to reduce costs. analyzing. 79 . and end users. to realize the benefits from offshore software development. frustrating task. developers. or adopting new development methodologies. offshoring has become an opportunity to keep development projects on track. > time zones. even the simplest task of gathering problem information by e-mail or phone takes a long time and can put project timelines at risk. organizations need to automate the problem resolution process. not applying the fix. When testers. Identifying and correcting defects discovered in the testing phase of a software project consumes 50 percent or more of a developer’s time. the basic act of describing a problem uncovered during testing or in production may become a time-consuming. testers. These issues include: > language barriers. inefficient process that is common to all development organizations — dealing with application problem resolution. Application problem resolution is the overall process of identifying.
As more and more work is offshored. By recording the actual application execution. So. Analogous to a black box flight recorder on an aircraft. For example. performance metrics. The system streamlines collaboration across dispersed teams and ensures that in-house or outsourced applications can be supported effectively. By recording the actual application execution. With so many companies vying for top talent. This compounds the challenge of re-creating problems. such as Sarbanes-Oxley. Due to security concerns and the need to comply with regulations. Companies that provide offshore development are adjusting their pricing structures based on the increased demand for their services. > rising costs. and code execution flow when a problem occurs. This capability significantly increases efficiency for development. a mandatory step in the path to determining the root cause and applying a fix. the labor costs in popular offshore locations increase. configuration data. the solution eliminates the need to manually document and reproduce issues before resolving them. the solution eliminates the need to manually document and reproduce issues before resolving them. the costs inevitably rise. Excessive turnover means developers and testers do not retain deep knowledge of the software. automate the Process BMC AppSight Application Problem Resolution System addresses these challenges by automating the problem resolution process. When a developer has a question about a defect reported by a tester in India. and workers frequently move on to new positions with higher pay.> Attrition. system events. imagine a scenario where a company’s development team is located in the United States and its QA testing team is located in India. he or she may not be able to reach the person in India because of time 80 . BMC’s patented black box software technology captures a synchronized. and support teams. offshore developers are frequently excluded from accessing the production environment. testing. > security. which makes it more difficult to gain an understanding of the program or perform root cause analysis. real-time log of user actions. how do you address these concerns and still build applications in a timely manner using best practices? How do you manage these projects remotely and effectively? The solution is to automate and standardize processes.
according to Perry seigle. accurate recording of every problem. the developer has full data for every defect.’ this is a huge time savings and efficiency gain for us. The system also eliminates the need to re-create application problems that occur in the test lab or in the production environment. Having BMC appsight application Problem resolution system logs that completely track each problem gives our offshore teams everything they need to proceed. “our stateside support team sends problem reports to offshore maintenance and development teams. Case study: softrax Corporation softrax.autoMateD reQuest anD DeliverY of Business serviCes zone differences. without losing a whole day of work waiting to ask us ‘one more question. we see BMC appsight application Problem resolution system weaving itself into our culture. because the system provides a visual. Information gathering is fully automated and highly accurate. BMC appsight application Problem resolution system gives you a visual record of the problem. it’s really hard to work out some of these problems with words alone when you’re splitting the work among people who use different words to begin with. “without just throwing more people at the problems. “With some team members offshore. it simply works. deployed BMC appsight application Problem resolution system to increase staff efficiency to help support an increase in business growth. inevitably there are going to be communication issues.” 81 . Furthermore. language barriers are broken and communication is streamlined.” overall. We recently initiated a rule that all reported defects require a BMC appsight application Problem resolution system log. BMC appsight application Problem resolution system gives us a much more costeffective way to keep up with our growth. seigle credits BMC with enabling the softrax support team to handle more issues as its customer base grows. so a picture really is worth a thousand words. With this system. a leading provider of enterprise revenue management and billing software solutions. Lengthy communication cycles are no longer required. through policy and the natural course of people gaining comfort with the solution and discovering its value. manager of customer support at softrax. however. who create fixes overnight.” seigle points out additional benefits related to offshoring.
Laney ran the Asia-Pacific consulting business for Prism Solutions and managed engagements with Andersen Consulting. aBout tHe autHor Doug lAney. The system makes development organizations more efficient and addresses many of the challenges that put offshore projects at risk for late releases or running over budget. In this role. Previously. the greater the organization’s business agility and resulting competitive edge. best practices. he headed the Application Delivery Strategies research practice for META Group. 82 . he advised hundreds of IT organizations at major businesses and government organizations on relevant trends.improve the efficiency of the Development team The more quickly and efficiently the application development staff can deliver applications. For more information about BMC AppSight Application Problem Resolution System. and technology selection.bmc. please visit www. is responsible for professional services business development and defining new service-related offerings.com/identify. director of Customer Solutions Strategy in the Identify Business Unit of BMC Software. architecture. Before joining BMC.
You wouldn’t know about a problem until it was too late. and even injury to the people inside it. leading to serious business consequences. lower employee productivity. This situation creates the potential for serious consequences. Running your enterprise infrastructure without Business Service Management (BSM) solutions is like driving a car without instrumentation. BSM solutions combine best-practice IT processes — such as those from the IT Infrastructure 83 . and decreased customer satisfaction. critical business services may be impacted. such as severe damage to your auto. Enterprise Service Management Business Unit Customer Support. such as revenue loss. Without these solutions. BMC Software Imagine what would happen if you were driving an automobile and your instrument panel went dark.serviCe suPPort Customer support: one size Does not fit all By Alisa Nessler Vice President.
customer expectations for support have increased in virtually all industries. including higher levels of support to accommodate urgent needs in the most cost-effective manner. One level of support won’t work for every situation. the need for outside help is on the rise. such as retail operations and tax preparation service providers. skills. and workload of your in-house support staff? > What is your current service management process maturity level? > What are your geographic coverage requirements? What’s Driving the increased Demand for Premier support? Two major factors are driving the increased demand for elevated support. consider these factors: > How complex is your IT infrastructure? > How sophisticated is your BSM software? > What are the expertise. To meet the wide range of demands. Other organizations need help providing support across large geographic areas.Library® (ITIL® ) — with automated technology management and a shared view of how IT resources directly support the business. software vendors must offer a variety of support options. When determining what level of support is appropriate for your organization. also known as premier support. 84 . The increased demand for higher-level customer service has created a need for greater integration between IT processes and BSM solutions. how much customer support for these solutions is enough? Finding the right Balance Support needs vary from organization to organization. They ensure that your IT staff takes action and makes decisions on the basis of business priorities. First. Some companies. have seasonal peaks and valleys. This begs the question. Second. During busy times they may need to temporarily supplement in-house support teams with outside help. Customer expectations for support have increased in virtually all industries.
Software vendors can meet these needs through premier support offerings that include a higher level of participation by vendor experts. many organizations need greater solution support from vendors in several areas. rather than an expense. IT is under pressure to improve service and resolve issues more quickly while reducing costs. This is why support should be viewed as an investment. and tougher regulatory requirements demand tighter control and IT governance. At the same time. 85 . and rolling out the solutions > Keeping the solutions running at peak performance and availability > Keeping the solutions current with the latest patches and updates > Resolving difficult problems > Ensuring the internal staff derives maximum value from the solutions as the role of BsM solutions within it organizations expands. the expectations for support also increase — from product-oriented support to a more solution-oriented approach. To meet this demand. including: > Planning.serviCe suPPort The emergence of multitier applications. Managing these increasing demands and complexities calls for wider deployment of BSM solutions. As the role of BSM solutions within IT organizations expands. mergers.g. These factors combined have compelled many organizations to step up their service management through greater integration with IT processes. you can get maximum value from your solutions and achieve substantial. As a result. BSM solution vendors are integrating previously stand-alone point products into BSM solutions that cover end-to-end service lifecycles and span multiple IT processes and operational areas. testing. and new technology (e. With this help. measurable business benefits. virtualization and service-oriented architecture) has created a more complex IT environment. the expectations for support also increase — from product-oriented support to a more solution-oriented approach.. it organizations expect More IT organizations now expect higher-level service from software vendors than in the past. Increased complexity and integration between IT and business processes have a direct impact on the demand for vendor support teams to provide a more personalized approach.
The following guidelines can help you select an effective support program that fits your operational demands. comprehensive. and has immediate access to other vendor experts. the team moved from a reactive to a proactive support mode. Look for a vendor that provides support teams that operate proactively to help you address problems before they disrupt service. It should include on-site visits and offer fast access to experts. Criteria for effective Premier support An effective customer support program is proactive. proactive participation by vendor experts. 86 . and flexible. the engineer tests the patches and updates in a replica environment in the vendor’s laboratory before releasing them to the health care company. Proactive support means getting involved early and participating in the planning and rollout of your BSM solutions. assessing their impact on the company. identifying and addressing issues before they result in service disruption. and helping plan their implementation. the engineer has expertise related to the company’s BsM solution platform. this familiarity and immediate access has enabled the support group to dramatically shrink its average incident resolution time from eight hours to just 30 minutes. Pre-testing in the mirror environment helps avoid problems when a release is rolled out to the company. the dedicated engineer also streamlined the maintenance and updates process by tracking patch and update releases. is intimately familiar with the specific platform environment at the company.Look for a vendor that can help your IT organization meet these expectations through premier support offerings that provide more demanding service level agreements and more involved. The program should help you during testing and include assigned people to work closely with your in-house team. Proactive customer support. Case study an in-house it support team at a major health care provider took advantage of a premier vendor support plan that includes a dedicated support engineer.
you should have access to experts. look for a vendor that provides support teams that operate proactively to help you address problems before they disrupt service. The vendor support team can use the mock-up to test the deployment of new solutions. Nothing helps vendors gain this knowledge more effectively than working personally with your staff in their real working environment. 87 . and updates before you release them to production. In addition. It’s important for the vendor to assign personnel to work closely with your in-house team. Testing reduces the risk that new deployments or updates might introduce problems. if a fix necessitates an engineering change. The vendor support team can also use the lab system to re-create reported problems in a test environment. business atmosphere. and processes. and technical environment creates a significant advantage in designing effective BSM solutions. speeding resolution. Assigned personnel and experts. Look for a vendor that can create a mock-up of your BSM solution environment in a test lab.serviCe suPPort Comprehensive. Understanding your people. people. Assigned personnel enable a proactive approach to support. They act as partners to your internal support team. and structured support. then the vendor’s assigned support personnel should have immediate access to other vendor experts. They also speed problem resolution by eliminating the need to re-familiarize vendor support representatives with the specifics of your environment every time you report an incident. A good customer support program offers support for all products and solutions a vendor offers. You need flexible options with a choice of programs that match your specific requirements. priorities. test system. on-site visits. flexible. learning your environment. patches. For example. Assigned personnel gain and maintain familiarity with your account. available in structured support packages.
However. so you achieve a fast time to value. so you can enjoy the resulting business benefits. She left the company to become vice president of marketing. many organizations lack the in-house resources to fully support their desired BSM solutions. 88 . for a startup company. Upon her return to BMC. aBout tHe autHor AlisA nessler. Based on an assessment of your in-house support capability. The assigned support personnel can also work with the consulting team to help you select and implement an optimum support plan for your organization. visit www. This training helps ensure that your in-house support team is up to speed quickly to derive the most value from the BSM solutions you implement.relationship with consulting and educational services. enabling you to take a more proactive approach to supporting users. a Winning Partnership: BsM and Premier support Increasing demand for premier customer service and greater efficiency make a strong case for implementing BSM solutions.bmc. For more information.com/supportofferings. leads the worldwide customer support team for ESM products. BMC offers a variety of support packages. including premier support. assigned support personnel can work with the vendor’s educational services group to help you select and implement the right training plan for your organization. working with the vendor’s consulting team to help gain familiarity with your computing environment and in-house support capability. After her first company was successfully sold. she served as a program executive prior to taking on the support responsibility in mid-2006. And most organizations wish they could free up in-house support personnel from routine (yet essential) tasks to focus on higher-level processes and development. The vendor support team should have close links to the vendor’s consulting and educational services. she joined BMC in the mid-1990s. primarily in sales and sales management. she became the CEO of two more startups. vice president of the Enterprise Service Management (ESM) Business Unit Customer Support at BMC. After ten years with IBM. This ensures a smooth transition to an effectively supported production operation. Assigned vendor support personnel can get involved early. Vendors that provide premier support can become an active partner to supplement your in-house support staff. Nessler began her career as a software engineer. and later CEO.
permitting customers to conduct account transactions without stepping inside the bank branch. Think about how you used to interact with your bank branch. BMC Software Your bank branch and your IT service desk have much in common. giving tellers access to a wide range of applications and databases that empower them to serve customers more effectively and efficiently. It’s where you went when you needed service. to request a new service. continual improvements to technology have enabled the bank branch to better serve its customers. Internet banking emerged. or to check the status of an existing service. whether you wanted help with a problem. 89 . ATM machines appeared.serviCe suPPort taking service Beyond the service Desk By Doug Mueller Co-founder of Remedy and Chief Technology Officer. letting customers complete many tasks that previously required personal visits to the branch. Over the years. Teller terminals evolved.
like teller terminals. They maintain a knowledgebase of solutions to known problems. without contacting the service desk. without contacting the service desk. and physical and logical relationships. The evolution of service desk technology has also empowered users and reduced the workload for technicians.Users look at the IT service desk today in much the same way that people used to look at their bank branch. but the technology now allows users to now solve more and more problems on their own. not only have service desk applications continually evolved to permit service desk technicians to serve users more effectively. configurations. such as response times and first-call resolution rates. technicians can view all physical and virtual infrastructure components. That saves time and reduces errors and ensures that the service that has been interrupted is restored as quickly as possible. In addition. whether they want to get help with a problem. Now. or check the status of a service request. Like teller terminals. These applications also aggregate service desk performance data. which is to help the business become more effective. not only have service desk applications continually evolved to permit service desk technicians to serve users more effectively. 90 . the service Desk evolves New service desk applications eliminate many current problems while guiding service desk staff through best-practice processes for handling incident tickets. Service desk technicians can also see if the computer is under maintenance or has any specific service level agreements associated with it. The technicians have the ability to access and view the configuration of a user’s computer directly from the configuration management database. and from a technology-oriented to a business-oriented approach. This eliminates the need for users to communicate this information verbally to the service desk technician. service desk applications provide a holistic view of the enterprise infrastructure. That transition permits service desk technicians to focus on their primary mission. request a new service. Technological innovations are extending service beyond the service desk and taking the service desk where it needs to be — from a reactive to a proactive mode of operating. but the technology now allows users to now solve more and more problems on their own. It’s where they go when they need service.
The desk is still inundated with calls. In addition. These calls distract technicians from tasks that have far greater business importance. Although this evolution of the service desk has been hugely beneficial. request services. By following the guidance from the it infrastructure library (itil). map a network drive. showing how all components tie together to deliver business services. For example. they may be able to configure a network printer. perspective. 91 . and check the status of their requests — all without even calling the service desk. users now have access to knowledge-related articles to help them solve many issues on their own. ITIL V3 goes even further. taking the next step The next major step in service desk evolution involves making two important transitions: from a technology-oriented to a more business-oriented approach and from a reactive to a more proactive approach. requiring IT to integrate with the business and manage service from a business. thereby empowering service desk technicians to prioritize their actions on the basis of business impact. ITIL V2 exhorts IT to align with the business. Allows service desk technicians to access configuration data from the entire IT environment.serviCe suPPort In addition. The four technology innovations that enable the next major step in the evolution of the service desk are: > Configuration management database (CmDB). Most service desks still operate primarily in a reactive mode. so they cannot prioritize action on the basis of business impact. many of which are from people requesting services or simply checking on the status of their requests. By following the guidance from the IT Infrastructure Library® (ITIL® ). ITIL V3 reorganizes its guidelines into a service lifecycle management approach. you can help to ensure that IT weighs every action in terms of its impact on the business. reset passwords. responding to incidents only after users report them. you can help to ensure that it weighs every action in terms of its impact on the business. the technicians are not able to determine the business relevance of incidents. download software. rather than a technology. there is considerable room for improvement.
> seamless integration of service management applications. Process integration is a fundamental tenet of ITIL. It offers access to comprehensive data on configurations. The processes trigger a script that gathers additional forensic information 92 . laptops. locations. incident histories. lease contracts. you need to integrate the service desk processes with processes in other IT disciplines. and databases. A service desk that leverages all four of these technology innovations will position you to take that next major step and enjoy the resulting business benefits. This enables you to access relevant data no matter where it is stored. Automated performance management processes detect that the response time of a particular transaction exceeds the agreedupon limit. Enables service desk technicians to make decisions and take action on the basis of business priority. one based on a federated architecture. regardless of the application. changes. > Automated service request management. Gives users a broad self-service capability and takes a huge load off the service desk. desktops. processes. and people — ties together. The CMDB provides technicians with a wealth of information about all the physical and virtual components of the IT environment — servers. The CMDB also eliminates the need for technicians to jump around among different applications. a service desk that leverages all four of these technology innovations will position you to take that next major step and enjoy the resulting business benefits. and suppliers. provides access to information. tools. and databases to get the information they need. such as change management and performance management. warranties). > service modeling. Here’s an example of seamless process integration. Eliminates the barriers that isolated the service desk from other IT groups. contracts (maintenance contracts. seamless service management processes. software licenses. To fully leverage the capabilities of your service desk. applications. CmDB. A well-architected CMDB. network equipment. Service desk technicians now get to see how everything in the environment — technology.
Service modeling technology helps IT understand business needs and issues. when conditions may have changed. problem.serviCe suPPort immediately. and finance — to provide improved service quality. Clearly. This approach not only facilitates and speeds service fulfillment. technicians can see that an incident affecting the invoicing system is more critical if it occurs during the third week of the month — at the time invoices are processed — than if it occurs the last week of the month. This includes integrating with applications that address such processes as change. 93 . configuration. release. a service desk application that leverages service modeling technology greatly increases the ability of the service desk to help the business. Automatic ticket generation permits the service desk to move proactively to head off issues before they disrupt service. service request automation and business impact. The typical service desk is bombarded with calls from users requesting services and checking on the status of those services. instead of doing this many hours later. This technology permits users to select and request services from an online catalog. but it also eliminates a major source of service desk workload. and asset management. HR. service model. technicians can understand the relationships of business services to underlying infrastructure components and the business priorities of those services. service modeling technology helps it understand business needs and issues. A service request management solution can be used to access a catalog that integrates with back-end existing systems that drive and automate key processes to automate the delivery of a request without manual intervention. incident. The processes then generate an incident ticket to the service desk that identifies the specific services and components involved. It also means integrating with systems that address processes performed by groups other than IT — such as facilities. A service request management solution can eliminate most of these calls. For example. In the case of the service desk.
Mueller actively works with and advises enterprise customers to help with their corporate IT strategy around BMC’s BSM solution set. visit www. Eliminating calls to the service desk permits technicians to not only improve service.com/bsm. but also prioritize their work and focus on their primary mission — helping the business become more effective. Mueller is involved with product architecture/development and works with technical leaders in the Service Support and BMC Atrium Core organizations. the service desk has evolved over the years. 94 . you can extend service beyond the service desk. you can transform the service desk from a provider of technical support to a key player in making the business more effective. driven by technological innovations. For more information about IT Service Support solutions.bmc. He is the subject matter expert of the BMC Remedy Action Request System® platform and applications. Technology innovations will propel the service desk through the next major step in its evolution to a more proactive. He has been with BMC/Remedy for more than 18 years. focusing on the BMC Atrium CMDB and Service Support solution set. If your service desk can leverage these innovations. By doing so. driving architectural consistency to ensure the Atrium Foundation platform enables the development of cohesive Business Service Management (BSM) applications. The service desk can now serve users more effectively.Like the bank branch. aBout tHe autHor Doug mueller is a co-founder of Remedy® and chief technology officer at BMC Software. business-centric focus.
Is your IT incident and problem management environment like a car alarm? Do alerts constantly light up consoles all over your enterprise? Is your staff so overwhelmed with false and redundant alarms that they can’t cut through the clutter to quickly identify conditions that represent a real threat? 95 . BMC Software Did you know that car alarms do not prevent theft? The reason. most people are overwhelmed by the noise car alarms create and simply tune out the sound.serviCe aWareness Cut through alarm Clutter: Prioritizing events to Make Business sense By Mary Nugent Vice President. according to a nonprofit public interest advocacy group. Service Assurance. Consequently. is that car alarms are too easy to trigger accidentally and they go off too frequently.
Your solutions also should keep tabs on capacity and provide an early warning of potential capacity issues. 96 . your IT staff can provide better service. Such an approach puts you ahead of the game by leveraging strong analytics capabilities to: > Automatically initiate corrective actions wherever possible > Consolidate related events and eliminate redundant alarms. alerts. alert notification. and probable cause analysis — for example. service-aware approach to incident and problem management. diagnose. applications. Detection: what is the problem? ITIL refers to this stage as “Problem Identification and Recording. and correct. creating a few actionable events. the Problem lifecycle Proactive.” To address it effortlessly. which are events that require IT personnel to take action > Notify the right people of a potential problem so they can resolve it before it impacts users > Deliver actionable events with business priority and service impact service desk agents receive intelligent incident tickets that indicate business impact and priority. and databases. storage. Operators are notified of exceptions and can take action before their service has a chance to degrade. Service desk agents receive intelligent incident tickets that indicate business impact and priority. service-aware incident and problem management aligns directly with IT Infrastructure Library® (ITIL® ) guidelines for addressing all four stages of the problem lifecycle: detect. and historical trending for all your infrastructure resources — from servers. The entire staff works together cohesively.” it’s time to implement a proactive.If you answered “yes. When armed with the right information. isolate. They should be versatile enough to provide domain-specific views. using proven best-practice service delivery and support processes. for servers — as well as to display an infrastructurewide status for end-to-end application performance. efficiently. your incident and problem management solutions must work together to provide monitoring. reporting. and effectively. and network devices to operating systems.
performance. establish a band of normal operation for your environment. Diagnose: where’s the problem and what is the impact? ITIL calls this stage “Problem Classification. and accuracy of transactions while users are performing them. When unusual patterns develop. the solutions analyze and correlate information to filter out irrelevant and false alarms. these systems can notify the appropriate people so they can take action before application performance suffers and users are affected. The model assigns priorities on the basis of service impact and business 97 . With a service-centric approach. Service-aware solutions detect when a particular SLA is in danger of being missed and notify the right people. They provide your IT staff with insight into how the business processes that depend on those services will be affected. They turn raw data into actionable information that reduces complexity and shortens time to resolution. Most importantly. A cost-effective solution maintains thresholds for everything you want monitored. you can also track service delivery against the service level agreements (SLAs) you have established with business users. When an abnormal condition develops. Real-time transaction monitoring measures the availability.serviCe aWareness In addition. helping you manage services on the basis of their value to the business. Proactive solutions then watch for variations from the norm. the solutions analyze and present the impact of outages and performance degradation on critical services. Simply put. With a service-centric approach. you can also track service delivery against the service level agreements (slas) you have established with business users. This early warning speeds response and enables corrective action before the SLA is missed. Synthetic transactions run at regular intervals to measure availability and performance of application services.” To handle this stage effectively. the solutions should offer a top-down approach that lets you see the application as your users see it. they eliminate event storms that might overwhelm operators and slash the number of events and tickets an operator or service desk agent needs to handle. Effective solutions also measure the business impact of SLA compliance achievements or breaches. A real-time capability assesses incoming infrastructure events against a service impact model and determines the scope of the impact.
As a result. This capability enables operations and the service desk to zero in on the causes of issues more quickly. The solutions allow technical staff to easily drill down into the data for more detailed diagnostic information and to launch diagnostic programs directly from the operations or service desk console. By leveraging solutions that provide these analytics. solutions should provide separate and distinct workflows that are optimized to correct the problem. known error management for error control. so your staff isn’t bombarded with huge volumes of events and tickets.” To reduce resolution time. Correct: making the fix. These workflows should encompass root cause analysis for problem control. for the ITIL “Request for Change and Problem Resolution and Closure” stage. everyone has actionable information to speed their efforts at correcting the right problem earlier in the cycle. you can cut through the clutter. which becomes extremely handy when every second of performance degradation has a dollar value associated with it. The bottom line is that your staff has plenty of time to respond before an easy-to-fix condition in a critical system develops into a major problem with serious business impact.policies. It also tracks in real time whether service compliance is improving or declining. isolate: what is the probable cause? ITIL refers to this stage as “Problem Investigation and Diagnosis. the staff knows which events and tickets to address first. actionable events to the operations staff and intelligent incident tickets to the service desk. and knowledge solution management for trend identification and future problem prevention. Effective solutions ensure that each event or ticket contains a link to a ranked list of the probable causes of the associated problem. Moreover. you need solutions that deliver intelligent. 98 . Finally. Moreover. they determine the criticality of the business services affected by the events and assign priorities accordingly.
serviCe aWareness advancing service Management Maturity Proactive. service-aware incident and problem management is a major step up on the service management maturity ladder. By leveraging solutions that provide these analytics. Moreover. The payoff is substantial. quickly identify impending problems. It leverages analytics to help you further integrate the goals of IT with the goals of the business. it provides rich. For more information about BMC solutions. visit www. she also has 10 years of experience in public accounting and is a certified public accountant. including infrastructure management. Prior to joining BMC Software. actionable information that helps your staff understand what is happening in the IT infrastructure.bmc. 99 . aBout tHe autHor mAry nugent. ISV Logistic Solutions. you can cut through the clutter. she was the director of business development for a startup. is an accomplished software technology executive with extensive expertise and in-depth knowledge in the emerging service management marketplace. It correlates events and presents related events together. and take the right action every time. event and impact management. and capacity management products. In addition to her 15 years of technology experience. Service Assurance. so your staff isn’t bombarded with huge volumes of events and tickets. BMC Software. vice president.com/bmcproactivenetanalytics. in a way that makes business sense. and also worked as an independent consultant for companies deploying mission-critical client-server technologies. This technology takes care of many events automatically to reduce the need for human intervention. She manages BMC’s customer-facing efforts for the company’s Service Assurance portfolio.
Once you understand how your organization consumes resources or generates emissions and how to measure them. It means becoming more aware of how resource consumption within the data center affects things such as electricity usage and carbon emissions.Practical Methods for greening the Data Center By Tom Bishop Chief Technology Officer. going green also means how you can operate them in a more environmentally friendly way.” 100 . you can take the first steps toward becoming “green. BMC Software “Going green” is rapidly becoming a household term. What does it mean to be “green” and how does it apply to data centers? It’s about increasing awareness of your environmental “footprint” or the ecological or environmental impact your activities have on the world around you. For data centers.
Most people look at how much electricity is being consumed for the CPU work being done. the greening Process occurs in three steps > Building awareness > understanding current consumption levels and identifying areas where you can reallocate or cut resources to reduce the amount of gross waste > Becoming a real-time optimal environment Begin a catalog and measure what resources are consumed and what work is being generated. then monitor again. and so on. more process-based feedback loop. addressing areas where non-critical systems or underutilized applications consume resources is an easy place to begin the green conversion. even though they do not perform useful work. and then look for ways to minimize resources in relation to the amount of useful work performed. Moving to a real-time optimal environment involves converting reduction-related measurement and ongoing activities to an automated.serviCe aWareness How it Can “green” the Data Center Most IT organizations start the “greening” process by gaining an understanding of energy and resource consumption. It’s a never-ending feedback loop that paves the way for establishing a policy that says. Addressing areas where non-critical systems or underutilized applications consume resources is an easy place to begin the green conversion. when you leave systems running indefinitely. Basically you monitor usage.” 101 . reduce consumption on the basis of this feedback. “I’m only going to consume resources for useful work. For example. you are wasting resources. this situation provides an opportunity to conserve resources and cut operating costs. reduce consumption again. however.
When you apply the label of “green” or want to understand your environmental footprint. To work at full capacity. Within your green policy. specifically stating how you will conserve resources and reduce emissions on an ongoing basis. “Is our policy in line with reasonable expectations?” If the answer is no. you need to figure out a way to reduce resource consumption or cut back on carbon emissions. if you applied this reasoning to city planning. the typical approach is to expand only when you have exhausted existing capacity. Additionally. bring capacity down to the amount you actually use. so that the system that supports the application is turned off until you need it.Within your green policy. the first place to examine is capacity. specifically stating how you will conserve resources and reduce emissions on an ongoing basis. Today in computing there is an enormous amount of excess capacity. Yet some organizations grow capacity in preparation for anticipated demand. a green approach would entail scheduling the usage of this application. How to run Processes and systems at Full Capacity Whenever a system has a set capacity. if you have a system that you use only occasionally to run one application. Once you have a policy in place. 102 . The capacity of the available resources should closely match the amount of resources available. you can outline procedures for maintaining your green data center. Can you find a way to reduce capacity where no useful work is being done? For example. you would think about whether it makes sense to build a four-lane road in the hopes that one day it will support enough traffic to warrant the upfront expense and over-engineering. you can outline procedures for maintaining your green data center. Measurement and monitoring are essential for greening the data center. ask yourself. For example. Pinpoint where waste occurs and the work produced in exchange for the use of these resources. you can set a policy stating that the data center will consume no more than a certain amount of resources and reserve them for high-priority applications that justify the consumption of the resources.
this is an inefficient use of resources. the Future of it solutions for green Data Centers You can choose from many solutions that monitor IT workflows and detect potential problems within green data centers. it takes electricity to run the fan that cools the CPU and to power the disk-spinning mechanism. if a computer is turned on and the disk is spinning. and we expect to see even more solutions going forward. however. When you reduce capacity. It’s also important to measure capacity and focus on a variety of systems for reducing capacity. such as performance management solutions that monitor the actual work needed. If the CPU is not doing productive work.000 an hour to $100. software vendors provide server and storage virtualization technologies that enable IT to lower the number of physical devices that need to be powered and cooled. electricity. For example. 103 . For example.000 an hour for your online brokerage house. software vendors provide server and storage virtualization technologies that enable it to lower the number of physical devices that need to be powered and cooled. if the expansion will accommodate Internet surfing for employees during off-work hours.serviCe aWareness reduce energy. Many solutions help manage virtualized environments. the expansion does not provide a strong business benefit. you can justify the expansion. Their solutions can leverage power-related information to enhance management of the consolidated/virtualized IT environment. Electricity is an easy place to start. you reduce electricity costs. such as computers and disk drives that have more efficient designs and provide the same amount of work but use less power. and Cooling Costs You can reduce operating costs in many ways. Legitimate need and business benefits should drive your expansion policy. Numerous organizations rely on monitoring and measuring programs to help reduce their environmental footprint. Another way to reduce electricity costs is to employ more stringent criteria for approving expansion requests. Consider the value of using lower-powered devices. Virtualization is a way to share capacity more seamlessly and has greater implications for management. If the expansion will enable stock trades to increase from $50.
Unfortunately. such as Corporate Average Fuel Economy (CAFE). we have no proxy by which to keep score. the idea of greening the data center is without solid parameters. In the beginning. Then in the 1970s when the cost of fuel increased. and later when scientists realized that emissions caused ozone layer erosion. What we can do right now is draw on the parallels from other industries where benchmarks were levied and learn from the reactions of the constituents affected by the imposed constraints. and new laws were passed. capacity planning. “green” is a conceptual subject and has no number to use as a benchmark. It took 20 years to get rid of cars that ran on leaded gas and for gas stations to stop selling it. Eventually. such as in server consolidation and virtualization planning. which requires that average fuel efficiency is not rated “worse” than a specified amount. Solutions can use real-time monitoring to provide an early warning of out-of-limits power conditions. and continual improvement. Carmakers are now required to list fuel efficiency on cars. carmakers and consumers didn’t pay attention to fuel economy. If a large corporation says it will go completely green by a certain date. its green policies will push upstream to the manufacturers of the components that go into the data centers. Unlike the auto industry. They can also use historical power consumption information in a variety of ways. change planning. green-motivated design criteria for data centers will become a design goal for software and hardware designers. 104 . Although other industries have more concrete bylaws and rules of conduct. the public outcry reached a pitch that forced the government to intervene. There is not a CAFE for computers.sustaining the green Data Center An important aspect of sustaining a green data center is monitoring. until there are government-mandated criteria for going green. Consider the state of fuel efficiency in cars. you can implement your own in-house policy.
was named one of the top 25 CTOs . which states that you must meet certain criteria to sustain the label of “green. Until there are government-mandated criteria for going green. such as systems that automatically go on standby when utilization drops below a certain level and disks that automatically spin down.com/virtualization. such as the Distributed Management Task Force (DMTF) and the Portable Operating System Interface (POSIX).” When it comes to greening the data center. by InfoWorld magazine in 2004 and is a well-known industry innovator. establish your own criteria for achieving your environmentally responsible data center objectives. we can bring the conversation to the forefront of public consciousness — it’s only a matter of time before these transformations happen. He holds nine patents in fault-tolerant computing and has been involved in the development of industry standards. As an industry. In the meantime. For more information about green IT and server virtualization. 105 .serviCe aWareness As the green movement gains momentum. the transitions are slow but inexorable. aBout tHe autHor tom BishoP chief technology officer. you can implement your own in-house policy. expect to see manufacturers rise to meet the demand with systems that guarantee a certain amount of work and that function more efficiently.bmc. BMC Software. visit www.
All aspects of the data center of tomorrow will have a very virtual flavor and will challenge architects.g. Virtualization solutions and capabilities are going to change dramatically during the next few years. storage. the market focus recently has been on the virtualization of x86 servers. application. Enterprise Service Management Business Unit. as well as virtualization “targets” (e. This server focus will continue through the next decade as chip and server architecture evolves to support more extensive virtualization environments. middleware). Business Planning. to retool their skills to take advantage of this evolution. servers. Virtualization technologies are already fragmenting into multiple technical approaches. and virtualization technology presents the potential for a fundamental change in the way IT managers consider computing resources. as well as operational support staff. BMC Software Virtualization is a hot topic in IT today.virtualization: toward a fluid infrastructure By Herb VanHook Vice President.. 106 . While storage and network virtualization options are evolving.
” The reduction in space and power requirements can create the additional benefit of longer life for existing data centers. and running them at higher utilization rates. it may be able to reduce that number to 400 or 500 servers. and consolidating workloads can increase efficiencies in using the physical devices. multi-core devices to support the consolidation options driven by virtualization.g. Using current technology. not all workloads are suitable for virtualization. those with high input/output rates. or specialized hardware requirements cannot run well when virtualized. Having fewer physical devices. If a company has 2. One well-known fact is that power consumption is not directly related to device utilization. Not only will fewer absolute physical servers be purchased. We’ve already seen the market effect of this as single-core x86 server shipments have slowed. 107 . offering incentives for the adoption of virtualization (e. and running them at higher utilization rates. Pacific Gas & Electric. Having fewer physical devices. Distributed servers typically are lightly loaded. > improved hardware resource utilization to derive maximum value from current device investments.serviCe aWareness virtualization Benefits The work by the early vendors to convince customers of the value of virtualization is over.. Currently available virtualization technology can generally consolidate five or six physical servers into one server. Many companies are reaping the initial benefits (those identified in the first four bullets below) and are just starting to explore the new flexibility and options that virtualization solutions enable.” > reduction in power consumption — for both powering the physical devices and cooling them. is one of the key tenets of “green it. Buyers will continue to shift to larger. This places virtualization front and center as one of the key pieces of the “reduce capital expenses” toolbox that many IT organizations have embraced.000 servers in a data center. provided they’re all good candidates for virtualization. The payback from virtualization investments includes: > Fewer physical devices to buy and deploy. memory-intensive demands. is one of the key tenets of “green IT.. but the number of different types of servers also will be reduced — thereby reducing overall infrastructure complexity. one well-known fact is that power consumption is not directly related to device utilization. and Austin Energy).g. Utility companies have also pushed this agenda. Virtualization continues to show additional tangible benefits the more it’s used. e. expanding its value to the enterprise. San Diego Gas & Electric.
x86 and other distributed server architectures have started their own symbiotic shift with virtual options. virtualization technologies provide new workload-balancing techniques to handle workload expansion and contraction. However. to the multi-core computing options from the large server vendors. but today are achieved through specialized chip sets. For example. 108 . governance. Physical infrastructure evolution Server virtualization has arisen concurrently with the evolution in computing platforms — from the blade architecture that is gaining ground today for its density and ease of deployment. virtual server options enable fast provisioning and configuration. or provisioning physical devices. > reduction in management costs for physical devices. reusing. as needed. or provisioning physical devices. Additionally. This reduction is realized as companies execute on consolidation plans.> Flexibility and responsiveness in application development and test lab environments. and as future hardware purchases displace larger numbers of legacy physical devices. without the extended cycles often related to procuring. to support multiple development and quality assurance scenarios can accelerate time to market for new projects. > Flexibility in business continuity and disaster recovery. or management solutions are insufficient. Having a core physical infrastructure that can be repurposed. > Agility and responsiveness to business demand. advanced graphics capabilities for personal computers were once the domain of a set of specific software functions. reusing. without the extended cycles often related to procuring. Just as mainframe architectures have evolved over the past decades to be optimized for virtual environments. This migration of virtualization from software to hardware follows many similar patterns. As a result. Using virtualization as an abstraction layer for application environments enables recovery models that can use mixed physical devices and mixed application workloads during a continuity crisis. virtual server “sprawl” can negate these benefits (as operational costs increase) if process. many virtualization capabilities delivered by (hypervisor) software today are going to shift to hardware in the future. Virtual server options enable fast provisioning and configuration. This increased operational resiliency has spawned a completely new way of structuring business continuity plans.
Of course. or more virtualization platforms. both for server computing and client-side devices. about 40 percent of most companies’ workloads are reasonably good candidates for virtualization. three. etc. As a result. we will continue to see an “arms race” between the hardware platform vendors and virtualization software vendors. but they will be common in the future — not just from vendors. Virtualization for distributed computing environments will quickly become an embedded technology. the day will come when running a virtual server environment incurs negligible overhead costs compared with a pure physical server environment. Now they’ll look at appliance models based on a particular virtual abstraction layer platform. Today. Most companies probably will end up with two. specialized processors for input/output. In the past. companies looked at appliance models that were based on a particular hardware platform. enterprise architects will need to choose which platforms their organizations embrace. such as Intel and AMD. and application code — can reduce installation. This “black box” approach — where the package contains the operating system. As virtualization options proliferate. a modest number of vendors make use of these virtual appliance packages. Currently. Companies looking at new server deployments usually consider virtualizing those workloads immediately. Although new workloads are definitely candidates for virtualization. when a software vendor sells its product. However. and they will continue to offer device functions unique for virtualization. it’s the legacy workloads that pose the biggest problem. but also for custom in-house applications. Currently. configuration. it ships a set of software 109 . virtualization software must also evolve to take advantage of these new hardware functions. as virtualization options proliferate. and security complexity. database. Physical device vendors are also retooling their platform architectures for optimization in virtualized environments. according to industry estimates. advanced memory management options. virtual appliances A new breed of applications has emerged in which applications are delivered through preconfigured and easy-to-deploy packages. middleware. maintenance. provide hardware assists for virtualization.serviCe aWareness Chip vendors. enterprise architects will need to choose which platforms their organizations embrace. These capabilities include multiple message queuing options. such as native page table support for virtual memory management.
These application virtualization techniques. preconfigured image of that software with all the subsystems they need to run it. Companies will rethink how they serve their end users. These offerings “containerize” applications and enable them to run in their own siloed environment. a database server. virtual appliances will deliver economies of scale and simplicity. Virtualization is quickly becoming the platform of choice for hosted services provisioning. The emergence of virtual appliances will also accelerate the move to grid and cloud computing models (an alternative to having local servers or personal devices handling users’ applications). such as a Web server. The historical way to achieve the layering is to put the operating system on the server and then put in the needed systems. vendors are going to do much of that heavy lifting. or a file system. the cost-of-ownership equation for supporting users will change. patched. In the future. so application virtualization techniques can be used to isolate the applications. They simply copy it into their run-time environment. Instead of a set of software packages that must be separately installed. and configured. will cause a major industry shift in the way software is developed and deployed. Planning the virtual environment is the first stage. 110 . as well as feed rapid deployment of software as a service (SaaS) options. By leveraging the decoupling that is enabled by virtualization (of the hardware and operating system from the application stack). Many applications do not work well together in a common operating system platform. application virtualization Application virtualization strictly refers to the encapsulation of an application by a virtualization layer from a local operating system.packages that the customers must install. using application virtualization options to deliver a new flavor of thin client. configure. together with the software appliance model. and get up and running. today. customers will receive a completely installed. There’s a lot of layering of all the software onto a running platform. patch. managing virtualization is a three-stage approach. which gives a direct route for virtual appliance adoption. As these models are pushed to the client devices.
approximately one-third of respondents said pre-consolidation planning was the biggest challenge to managing virtual server environments. Inc. configuration. Provisioning. and patching must become integrated lifecycle activities. Planning activities include determining virtualization candidates. Access control during configuration activities will become more granular (accessing the physical device.1 Based on BMC research. Survey Identifies Server Virtualization Needs and Trends. 2007. In fact. etc. August. 111 . appropriate workload combinations. configuration changes and compliance activities become more difficult. was controlling virtual machine sprawl. managing virtualization is a three-stage approach. and to enable solid relationship and dependency mapping of the virtual environment (including configurations within a hypervisor) to its physical environment.). the impact on operating expenses is mixed. Key to resolving this sprawl is a discovery function to identify and classify the virtual environment. accessing the virtual machine. IT organizations will need a solid plan and new options for tackling the potential increase in management costs incurred by virtual environments. This extends to tracking and understanding the replication history of virtual images as they are created and mutate through their lifecycle. according to respondents in the aforementioned Gartner survey. deployment planning. Gartner. Today. we think this will decrease over time as more organizations adopt virtual solutions broadly. proper access control and segregation of duties for provisioning and configuration will separate enterprise-class management approaches from mere configuration “tools. in a virtual environment. The second stage is a configuration activity. In an August 2007 Gartner survey. Dynamic change and configuration is required to support the changing “personalities” of the virtual machines. Ongoing energy costs can be reduced (fewer power and cooling requirements). but overall management costs can increase as new skills are needed and the potential for virtual server sprawl becomes a reality. The biggest challenge.” 1 Cameron Haight. configuration changes and compliance activities become more difficult. 29. Planning the virtual environment is the first stage. capacity planning. and so forth. accessing a specific configuration.. In a virtual environment.serviCe aWareness the stages of virtualization Management Although initial virtualization efforts for server and data center consolidation include a reduction in capital expenses.
Often they will look for a vendor that incorporates management functions in existing technology options. IT organizations will not want to deal with management solutions and tools for each particular environment. or problem. Currently. stop) of heterogeneous virtual environments. Management tools must become “virtual aware. because it typically maps cleanly to how the responsibilities in those organizations are organized.g. Management approaches Unfortunately. Many IT organizations have a planning. but companies will seek a common set of technologies for both. configured. virtualization needs to be planned. 112 .” Additionally. almost 100 vendors are working on virtualization technology options — from infrastructure add-ons to point management tools. configured. because it typically maps cleanly to how the responsibilities in those organizations are organized. Startup companies in the virtualization infrastructure or virtualization management market often target one or two specific opportunities or pains. For example. However. many organizations (and vendors) attack the management of virtualization as yet another stand-alone management problem. architecture.. Dividing virtualization into these three states resonates well for many it organizations. and they have ongoing operations functions. leading IT organizations will want to manage their heterogeneous virtual environment and their physical environment using the same management technology. They have a separate function that handles systems administration for configuration. and managed. They need to understand how virtualization affects service levels. but rather will want common solutions that have common interfaces for their heterogeneous technology environment. and then procure technologies to deal with that. take advantage of its resources. start. Dividing virtualization into these three states resonates well for many IT organizations. capacity planning can be very different when an organization is moving from a physical to a virtual environment. ongoing management should support native operations (e. Virtualization needs to be planned. and know what’s available to do the job? Companies need to ensure that the key performance indicators of their virtual environment merge neatly with the key performance indicators of the rest of their environment. They focus on one particular pain point. How does a company really leverage its virtual environment. Over time.The third stage is ongoing management. and managed. or capacity management function.
serviCe aWareness As the adoption of virtualization technology becomes more mainstream. Virtualization management offerings today should be mapped very cleanly with companion offerings that exist in the physical environment. Virtualization offers new forms of agility — the capability of providing new services. As people become more aware of what they can achieve with virtualization. 113 . aBout tHe autHor herB vAnhooK is vice president of business planning for the Enterprise Service Management Business Unit at BMC Software. They have a major opportunity to say. including senior positions at IBM. taking the long-term view Most companies today are thinking about how to embrace virtualization technology to enhance their disaster-recovery capability or decrease their physical server footprint. Computer Associates. then people will approach virtualization more strategically. What can be done with this new tool other than fix a few nagging problems?” That’s going to be the call to action for virtualization.com/virtualization. and Legent Corporation. visit www. IT organizations are starting to explore which best-practice processes they should adopt. Prior to joining BMC.bmc. and as the technology gets better and the technology for managing it evolves. They often look at near-term technical tactics instead of longer-term strategic options. faster response. “Here’s a brand new tool in our tool bag. For more information about BMC solutions for virtualization. It’s going to be up to the architects and solution designers of the world to figure out these next steps. he held several key positions at META Group (most recently serving as interim president and chief operating officer). and better availability — for the business itself. VanHook has more than 30 years of experience in information technology.
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