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Webcast Linking TitleIT Silos to Create Business Value Linking IT Silos to Create Business Value July 13, 2006 2:00pm EDT, 11:00am PDT George Spafford, Principal Consultant Pepperweed Consulting 1 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value Housekeeping • Submitting questions to speaker – Submit question at any time by using the “Ask a question” section located on lower left-hand side of your console. – Questions about presentation content will be answered during 10 minute Q&A session at end of webcast. • Technical difficulties? – Click on “Help” link – Use “Ask a question” interface 2 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value Main Presentation 3 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value Agenda • The need to manage growth and variation in order to improve productivity • The objectives behind IT Service Management (ITSM) • That integration of processes is a fundamental requirement for successful ITSM • The role of Configuration Management in ITIL's enablement of ITSM • The need for automated systems to facilitate processes • Potential system requirements for consideration 4 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value Moving Beyond Creation and Into Operations • • • • Once services are created, they move into operations Operations <> Development The vast majority of a service’s cost lies in operations – not in its creation A service is a compound configuration item – – – – – – – • • Hardware Software Processes People Documentation Facilities Data As the level of variation increases, quality management issues and costs increase True for the services we create and deliver as well as for our own tools in development, operations, security, etc. 5 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value The Impacts of Variation in General • • • • • • Training Knowledge Management Acquisition Costs Maintenance Costs Licensing Hardware Consolidation – Operations, Capacity, Availability • Security • IT Service Continuity Planning 6 © 2006 Jupitermedia Corporation Webcast Linking TitleIT Silos to Create Business Value Objective of ITSM is to deliver services that meet customer requirements 7 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value Necessitates Teamwork, Planning & Oversight IT Security Mgt Problem Mgt Incident Mgt Service Desk Configuration Function Mgt Change Mgt Customer Requirements Service Development IT Service Continuity Mgt IT Financial Mgt Availability Mgt Capacity Mgt Service Level Mgt To achieve the goal requires proper management and a holistic vision – the creation of silos must be avoided! 8 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value IT Enables the Attainment of Objectives and Goals Accounting Manufacturing Organizational Goal Human Resources Sales Customer Service 9 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value IT Process & Function Integration is Key • • • • • The power of ITIL lies in its systemic integration of processes areas – not simply piecemeal adoption Any single process in isolation will reach a level of diminishing returns As Goldratt has taught us, to optimize the throughput of a system requires optimization of the system – not just one area Continuous improvement requires a systemic mentality of adoption and continuous refinement Each area both draws information from, and supplies information to, other processes and functions Change Management Service Level Management Availability Management Incident Management Problem Management Configuration Management IT Financial Management IT Service Continuity Management Service Desk Function Capacity Management IT Security Management 10 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value Configuration Management Enables Integration • • • • • ITIL tells us that “Configuration Management provides a logical model of the infrastructure or a service by identifying, controlling, maintaining and verifying the versions of Configuration Items (CIs) in existence.” But what does this mean? Configuration Management provides information about CIs to all the other processes Think in terms of a database The Configuration Management Database (CMDB) is the nerve center of IT – It relates all the data together, provides workflows, access to files, etc. – It can be one database or integrations into multiple sources (federated models) • The CMDB contains the data and processes that binds the ITSM processes and the organization together 11 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value More Than Technology • • Configuration Management is not just about technology Need the right people – – – – • Culture Tone from the Top Training Motivation Need the right processes – Designed for the organization – Factoring in: Outcomes • Organizational goals • Functional area objectives • Constraints • After you understand processes and requirements, then you need the right technology People 12 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value Configuration Items (CIs) • These are categories of data that you must track and are modeled using data tables – – – – Hardware – PCs, Servers, Network Equipment, etc. Software – Operating Systems, Applications, Tools, etc. People – IT staff, business staff, vendors, etc. Accommodations/Environment – Locations, data centers, wiring closets, etc. – Data – tables, interfaces, etc. – Documentation – Policies, work instructions, SLAs, rollback plans, incident records, problem records, request for change, etc. – Services • Business processes – sales, accounts receivable, etc. • IT Services – What IT provisions to enable the business • An ITIL “secret” is that nearly everything is a CI. The establishment of these CI-types, their attributes and relationships enable a logical model of IT 13 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value Attributes • These are the data fields for each CI • What would you need to know in order to manage the CI? • A unique Identifier, model, status, purchase price, vendor, date purchased, IT owner, RAM, drive space, CPU type, …? • CI vs. Attribute – You can decide based on value, costs and risks – CIs are used when relational data is needed to honor normalization of data, security, etc. • “Is this data I will need to re-use in multiple places?” • Annex 7C of the Service Support volume offers suggestions on attributes. 14 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value Relationships • The power of Configuration Management lies in relationships • • Parent Relationships -- What assembled/compound CIs uses this CI as a component? Child Relationships -- If this is an assembled/compound CI, what component CIs make it up? RFC Records -- Need to relate this CI to all request for change made against it. This may be the same as the change record IDs but it's listed separately here. The reason is to show all RFCs -- accepted and rejected; Change History Records -- Relate this CI to all changes made to it. This allows for the Change Manager and other stakeholders to gauge historical activity; Problem Records -- What problems have this CI been associated with? Incident Records -- What incidents have this CI been associated with? • • • • • …and whatever else is needed for Service Level Management, Capacity Management, Security, IT Service Continuity Management and so on. The more you add the more complex the data model becomes 15 © 2006 Jupitermedia Corporation Webcast Linking TitleIT Silos to Create Business Value Because the CMDB is a logical model of your infrastructure and will be used to support your people, processes and technology, you must formally identify requirements prior to either buying or building it. 16 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value Examples of Data Exchange in ITSM Change Management Service Level Management Availability Management Incident Management Problem Management Configuration Management IT Financial Management IT Service Continuity Management Service Desk Function Capacity Management IT Security Management 17 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value Remote Site – Support & Integration • Remote facilities – Could include people working from home • Vendors / Outsourcers • Customers • Follow the sun support models • Coordination between sites • Sharing of data • Multi-lingual • Speed • Integrity • Security London Customer 1 Internet Shanghai Customer 2 Melbourne Outsource Vendor A Headquarters 18 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value The Need for Automation • What goes into the CMDB represents a tremendous amount of data!! • Manual records are not a realistic option due to the level of integration and volume of data coupled with the need for security, data integrity, etc. • Need systems that can automate the management of data records while maintaining referential integrity • Need integration capabilities to support federated models that facilitate – Access to timely and accurate data – Normalization of data • Coordination of activities in decentralized operations • Need to generate meaningful consolidated reports • A robust security model that supports the business 19 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value Potential Requirements for Consideration (1) • Know your requirements first! Do not buy a tool and then attempt to make it all work! – This will be the heart of your ITSM effort – make the investment count – There isn’t a silver bullet answer – you need to define your specific requirements – ITIL recommends all mandatory requirements be met and 80% of operational requirements – Must support the business – not just IT • Select an experienced vendor who is stable and proven! – A CMDB is too critical to gamble on fly-by-night vendors – A clearly articulated and proven ITSM implementation • Important Note - “ITIL Compliant” is a marketing term not standards based 20 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value Potential Requirements for Consideration (2) • Look for the following high-level features – Extensible data model – Extensible Workflow • Adaptable to your requirements • Automation of related transactions – Open Platform / Integration to Other Systems • Within the enterprise • Moving into the value chain – Enterprise Class • Database • Security • Ability to support remote sites (very important) 21 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value Two High-Level Frameworks • Four Es – – – – Effectiveness – Can it do the job? Efficiency – Ratio of inputs to outputs Economy – At what cost? Equality – Is it fair to all? • PPT – People – What are the impacts to • IT • The Business – Process – Can it support your processes? What are the process requirements of the tool? – Technology – What is the platform? Can it be supported? 22 © 2006 Jupitermedia Corporation Webcast Linking TitleIT Silos to Create Business Value I keep six honest serving men (They taught me all I knew); Their names are What and Why and When and Where and How and Who. -- Rudyard Kipling 23 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value Additional Resources • OGC’s Service Support volume – Section 7.9 – “Tools specific to the Configuration Management” process and Chapter 10 – “Service Management Software Tools” • “The Complete Guide to Service Management” by Diane Colbeck and Ivor Evans. http://www.diymonde.com. This book is a great overview of ITIL and has many examples of the information exchanged between processes in Part 2, Chapter 14 and has many suggestions on tool requirements and proposal guidelines in Part 3 of the guide • “Competing Vendors to Develop CMDB Standards”. ITSMwatch.com http://www.itsmwatch.com/news/article.php/3608331 [Note: Gartner mentions benefits by 2008, so this is very much in process and was only announced in May 2006.] 24 © 2006 Jupitermedia Corporation Webcast Linking TitleIT Silos to Create Business Value Thank you! George Spafford [email protected] http://www.pepperweed.com Daily News Archive http://www.spaffordconsulting.com/dailynews.html 25 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value Questions? 26 © 2006 Jupitermedia Corporation Linking IT Silos to Create Business Value Thank you for attending If you have any further questions, e-mail [email protected] 27 © 2006 Jupitermedia Corporation