Integrated managed services

Editor's Notes

• #3: Slide 1 ----------------------CEO’s are confronted with massive global shifts----------------------------------------------------------------------------------- CEOs are challenged to manage a set of global shifts that define the New Economic Environment. While these trends are not entirely new, the intesity compounds a sense of increasingly complexity. Shift in economic Power We see a shift in economic power from the mature markets to rapidly development markets – felt to a large or very large degree by nearly 8 in 10 CEOs This does not only include the shift in Consumer demand and – increasinly – revenue growth to a new set of high growth. It also means that the source of innovation is shifting. While the direction of this trend is perceived by CEOs across all regions, the biggest impact is felt by CEOs in Japan where 74% feel impacted to a large extent compared with 50% for the overall sample. Shift to “big government, heavier regulation” There is no doubt in CEOs mind that the pendulum, especially in the mature markets, has shifted toward greater government involvement – 7 in 10 CEOs experience this to a large extent Not surprisingly, this trend is most accutely felt in North America, where an astounding 87% see the trend to go in that direction, compared with around 50% in Japan or China Organizations are clearly assessing how to respond to the hightened role of government. Continued globalization CEOs told us that the current trend towards globalization would not let up They experience increasingly interconnected economies, enterprises, societies and governments – which is giving rise to a fast set of new opportunities But also creates an environment that is more volatile, uncertain and complex as we will see in a moment _____________End of SLide 1------------ -----------------------------Slide 2 – Continued rise of Technology--------------------------------------------------------------------- Every two years since 2004 we have asked CEOs to name the three most important external factors impacting their business. Market factors is consistently the number one factor. We define market factors as market dymanics, competition, customer behavior, etc. Technological factors has risen in relative importance and is now the second most important factor, from a starting point of 6 th most important in 2004 Macroeconomic factors is highly cyclical and it is not suprising that we see this rank highly (3 rd place) both after the 2003 recession and when we spoke with CEOs at the end of third quarter 2009 People skills for the first time dropped to 4 th place – most likely a reflection of the availability of talent in the market place as a result of the economic crisis, especially in the mature markets. In the many of the growth markets it ranked significantly higher than several of the other factors – including 57% of CEOs in India citing it as a top 3 factor, 57% in ASEAN, 50% in Brazil and 64% in Middle East & Africa Technology is clearly contributing to growing complexity – creating a world that is massively interconnected, with broad-based convergence of systems of all kinds. This includes man-made systems such as supply chains or cities. Or natural systems like weather patterns. With many elements interconnected, any decision can ripple across business ecosystems with unprecedented speed. The latest economic crisis is a good example – impacting nearly every economy around the globe and leading to one of the most pronoun c ed economic downturns since the 1930s. At the same time, the emergence of advanced technology can help organizations manage in this more complex environment. ---------------End of Slide 2-------------------------------------------------------------------------------- -----------------------------------------------------Slide 3----Vast Majority of CEO’s experience the new economic--------------------------------------------------------- So how are these trends impacting the environment organizations operate in? CEOs and public sector leaders agree – the new economic environment is v astly different. It is substantially more volatile, much more uncertain, increasingly complex and structurally different This Industrial Products CEO in the Netherlands summed it up: he described the last year as a “wake-up call”, adding that it felt “like looking into the dark with no light at the end of the tunnel.” -----------------------------------------End of Slide 3------------------------------------------------------ ----------------------------Slide 4 – CEO’s are now challenged to clsoe------------------------------------------------------------------------------ And if organizations feel a hightened sense of complexity today – it only foreshadows an even more complex future. [We defined complexity as multi-faceted, interconnected and intricate] In our last CEO study 2 years ago, CEOs identified “change” as the major challenge. In what we called the change gap – they identified the difference between the degree of change they expected and their ability to handle it. Coming out of a grueling and confidence-draining global recession, CEOs today feel more confident about dealing with change. But...they have identified an entirely new challenge – the complexity gap. This gap is bigger than any factor we have measured over the last eight years of CEO research. Eight in ten CEOs expect high or very high level of complexity ahead, but less than half feel prepared to handle the degree of complexity. This difference – a 30% point gap – points to the challenge many CEOs today are facing. Again, our conversations provided more context and perspective on the challenge. As the President of Pfizer Animal Health stressed, complexity is not only a burden, but a catalyst for innovation, creating new ways to deliver value to clients and customers – or in the public sector, citizens.
• #4: Slide 1 ---------------------Standouts Capitalize on complexity -------------------------------------------------------------------- Based on our extensive analysis of how Standouts are different, we found that CEOs who are capitalizing on complexity focus on three areas: Embody creative leadership Creativity is the number one leadership quality in the new economic environment – not just for the CEO, but the entire leadership team Creative leaders consider unheard of – and often drastic - ways to change their organization for the better They are prepared to break with the status quo and set the stage for innovation Reinvent customer relationships Standouts are taking customer centricity to new levels They are actively engaged in rethinking their approach to better understand, interact with and service their customers and citizens Build operating dexterity Standouts are reframing complexity – simplifying where needed, managing and taking advantage where possible They are making their organizations faster, more flexible, and capable of using complexity to their advantage. We will look at each of these dimensions in more detail. ------------------------------End of Slide 1 --------------------------------------------------------- ----------------------------Standouts simplify operations and products to better manage ------------------------------------------------------------------ We asked CEOs how they will change their operating strategy over the next five years. 61% of Standouts – and 47% Other CEOs – told us that they will simplify their operations and products to better manage complexity. In fact, simplifying needless complexity was seen by many CEOs as a critical element to better coping with the increasing complexity in their environment. Dutch Banking CEO told us: “Simplifying our products and processes is our response to the extended complexity in the world.” Complex operating structures often become unnecessarily complicated, for example An inefficient process becomes linked to a critical one, slowing down the organization Old processes no longer add any value Emergence of process and technology “spag h etti mess,” where it is hard to say which connections are valuable and which are not But – simplification of operations is only one response to a more complex and interconnected environment – many organizations are “hiding” or “masking” complexity on behalf of customers and employees CEOs talked about simplifcation of products – masking the complexity underlying a product on behalf of their customers, making products easy to use and intuitive, while benefiting from the complexity of technology that make such a product possible (the Kindle or the iPad are good examples) Simplifying the interaction with customers, making the organization ultra-easy to deal with for cusotmers, patients or citizens. Government CEO in New Zealand told us “we will manage complexity on the business side, but simplify the customer experience.” And – mastering complexity can create competitive advantage, as is the case in many technology driven, disruptive innovations Managing a complex systems of systems – such as traffic systems, or smart grids – can provide significant advantage -------------------------End of Slide 2 ---------------------------------------------------------- ---------------------------Slide 3 – Seizing the upside of complexity----------------------------------------------- For CEOs and their organizations, avoiding complexity is not an option — the choice comes in how they respond to it. Will they allow complexity to become a stifling force that slows responsiveness, overwhelms employees and customers, or threatens profits? Or do they have the creative leadership, customer relationships and operating dexterity to turn it into a true advantage? The combined insights from 1,541 interviews calls for CEOs and their teams to focus on these three areas: Embody creative leadership Embrace ambiguity: Reach beyond silos, exemplify breakthrough thinking, act despite uncertainty. Take risks that disrupt legacy business models: Pilot radical innovations, continually tweak your models, borrow from other industries’ successes. Leapfrog beyond “tried-and-true” management styles: Strengthen your ability to persuade and influence, coach other leaders, use a wide range of communication approaches. Reinvent customer relationships Honor your customers above all else: Unprecedented level of focus, heightened customer exposure for every employee, measure what customers value. Use two-way collaboration to sync with customers: Make customers part of your team, solicit customer wants, co-innovate and interact with customers in new ways, deliver true process transparency. Profit from the information explosion: Tap the value of limitless data, use analytics to translate data into insight into action that creates business results, share information freely to build trust and improve customer relationships. Build operating dexterity Simplify whenever possible: Simplify interactions with customers, simplify products and services by masking complexity, simplify for the organization and partners. Manage systemic complexity: Put complexity to work for your stakeholders, take advantage of the benefits of analytics. Promote a mindset of speed and flexibility: Act quickly, push execution speed, course-correct as needed. Be “glocal”’: Leverage the world through partners, constantly tune your operating model – global where possible, local where necessary.
• #5: IT today isn’t only about technology—it’s also about business. It’s an enabler, helping you accomplish your most important goals, such as: Driving revenue growth Improving profits Continuing to optimize your business. But to accomplish all this, you need to align your IT organization’s goals with those of your business so you can: Partner with the CEO to drive innovation Increase the flexibility of the business Deliver new value from existing assets, both information and people Address governance, operational risk and compliance challenge Reduce the cost and complexity of IT operations. It’s no secret that IT infrastructures have become increasingly complex—and therefore difficult to evaluate and understand. Yet even though it makes visibility much more difficult, this level of complexity further increases the importance of visibility. For example, if a problem occurs with a more complex IT infrastructure, it becomes more difficult for you to find and resolve the issue. That’s why visibility is so important—especially end-to-end visibility. Limited visibility will simply limit your effectiveness as a manager. How does end-to-end visibility help? For starters, it can enable you to: Optimize IT’s efficiencies and increase its value by evaluating the delivery and real-time operation of IT services in the context of your business operations Increase application and infrastructure flexibility to support dynamic business objectives Prioritize your IT spending Create standardized metrics that enable real-time monitoring of SLA compliance Hold your internal and external service providers to a clear set of IT performance standards Standardize the delivery of your IT service operations and processes. After seeing so many of our clients struggle with this issue, we developed IBM’s Integrated Managed services offering. It’s designed to help you synchronize IT and business performance by providing you with real-time, end-to-end visibility into your enterprise wide IT operations. It also offers key performance and risk indicators that can help you drive better IT planning, increase productivity and gain insight into the impact of your IT systems on business performance.
• #6: Tier 0 normally applies to start ups where the need for business application and also the customer base for such infrastructure is minimal or manually manageable. A strong IT management process could become an over kill … At the core is the known for a decade of element based management principle – such as element monitoring systems, server monitoring systems (aka. EMS – enterprise management system), network monitoring systems (NMS), etc. This applied to tier 1 state where a fundamental sift from a non-documented to a simple documented approach is adopted – supported by some form of automation either by use of NMS , EMS or other methods. Integrated Service Management lays the foundation for a systemic approach to managing not only IT but also provides an ability to establish visibility into IT and its alignment to business needs. Controls posture from a business perspective / deviations from norm visibility. Business Service Level Management provides an end to end IT service management capability and capacity across multiple suppliers of services including processes adopted by each to provide respective services – this allows for service catalogue creation. Business Impact management provides for elasticity (ability to return to normalcy) under circumstances of damaging events and potential partial paralysis of IT operations – thereby leading to managing services based on business criticality and impact The pinnacle of service management is its extension to business quality management – where in end to end business activity management is performed – from access points to technology (desktops, laptops, mobile devices, etc.) , whether pervasive / non-pervasive leading all the way to IT enabled business assets (in this instrumented, interconnected and intelligent world – the Smarter™ Planet) – at times commonly/loosely referred to as “Service Assurance” solutions specially in the Service Provider space… What should be the next steps – “End user Experience Assurance ???” – IBM offers all these tiers of services at an affordable and effective manner as part of integrated managed services….……
• #8: Date The right-to-left strategy is the foundation for product & investment decisions in Integrated Managed Services. The ultimate goal is to minimize costly labour intensive services ( the right hand side ), optimize the application of smart technologies, tools and processes, and leverage advanced research technologies ( progressing towards the left hand side ) for unique competitive advantage. This is fundamental to what we are aiming to achieve for our clients – drive industry leading cost savings and innovative models at the enterprise level with enhanced end user productivity and high user satisfaction. End user access to their choice of computing productivity environments from anywhere, anyhow, 24/7 regardless of the device be it a laptop, desktop, hand held mobility device – rugged or smart phone/PDA, kiosk or any other future device. The End User Services industry has realized that only so much can be gained by playing the labour arbitrage game and lowering the cost of labour sources. The quality/cost balance has been pushed to its limits and customers are realizing there is only so much productivity and quality that can be squeezed from this model. The phrase “ you pay now or you pay later but you will pay” is quickly being realized and lowest price does not mean lowest overall cost. Quality does suffer reducing the return of extending this model too far. For the past several years the industry has been in the ‘what’s your price per call , or what’s your price per IMAC “ model. The industry has shifted now to a smarter way or thinking and approaching the challenging of supporting end users – which frankly has become ever more increasingly expensive and now up to 70%+ of End User budgets are consumed by maintenance and support alone leaving very little remaining budget for new applications and innovations – the things that bring true value to an enterprise. IBM analyzed its 1400+ help desks over the past 3 years and discovered that 80-90% of problems can be resolved remotely when properly diagnosed up front and actioned by resources enabled with the right content. This statistic demands a smarter approach with tools that can help an end user or call centre agent do better problem determination, with better knowledge bases, search engines and data mining. Combining this with smarter technologies, workflows and closed loop processes with real time information capture within a wiki model will provide a much more efficient model. At the beginning of this cycle is a factory based device preparation and deployment managing the physical logistics with industrial age advantages. In our global factory centres distributed around the world we have recently updated to ensure a common transparent patent pending workflow tool to ensure visibility to all aspects of a deployment project for both the team executing the project and the client. This combined with world class centralized project management and consistent processes globally commit highest quality deployments up front – preventing problems from starting in the early stages of the life cycle of an end user device. Globally delivered software image management and ongoing health check maintenance provides a more effective best practices approach. These factory based approaches can typically avoid a minimum of 20% up front in the right hand side of the cost equation. This helps move away from the very expensive desk side dispatch model on the far right hand side of this curve. With improvements in self service help portals, wiki real time content creation, data mining for top 10 problems/resolutions and user navigation tracking to identify content weakness we offer a closed loop environment to avoid calls to the help desk and at dispatch for desk side service. The vision is expanded with desktop virtualization options. For relevant user communities it makes good sense to shift all of the logical layer - Operating System, Applications and Data back behind the firewall to a centrally managed and hardened environment and remove the moving parts away from the end user – avoiding the problems at the end user level from the start. With a number of client options including thin clients, repurposed fat clients, full streaming clients or hybrid models, a Java enabled web browser can access the end user’s required world of IT compute resources from anywhere. Using IBMs advanced Research tools that gather end user community compute statistics and analyses usage patterns leveraging Cognos, we can recommend the optimal client virtualization configuration for respective user groups based on a large selection of available options in the market today. IBM works with and is a leader with all of the major participating vendors such as Citrix, VMWare, Wyse and a large collection of niche specialty players to bring the best options for our customers. Other vendors typically off a ‘one size fits all” solution leaving a very narrow configuration selection and flexibility. Centralizing the logical layer back to a hardened data centre environment removes the number of potential failure points reducing overall management costs, security risks and general overall ease of control and maintenance. These “cloud” offerings provide flexible choices of private cloud, public cloud and hybrid mixed options. On August 3 rd 2007 Gartner reinforced this strategy in an article which they call ‘Shift Left’. This strategy tied with an integrated service desk and solid asset management solution provides a closed loop lifecycle management system for any end user device. This model can extend beyond the end user to energy management systems and other devices for a full enterprise end point managed ecosystem. With the proliferation of devices with imbedded systems and being driven by the connected world “ smarter planet” especially in the mobility space, this is critical for overall management of a diverse, complex and growing device base. IBM’s The Smarter Planet strategy encompasses the expansion to all types of imbedded system devices to the medical industry, energy grids, to auto industry and utilities industry. The end points are now end less in scope and all will require top notch support and collaboration to maximize benefits. The Right to Left strategy is ready for this new world. Lastly the Remote Managed Desktop Service ( RMDS ) enables the monitoring and tracking of all end point devices for remote support and preventative monitoring. This solution provides an inexpensive monitoring and intervention solution that can provide immediate benefit in an existing current legacy fat client environment to quickly address the majority of today’s move parts issues while an enterprise applies the richer more innovative solutions outlined above over time. NOTE that both the time and cost to fix a problem are the lowest and least expensive on the left, and they are the most expensive and longest on the right. With vision, innovative approaches and concerted effort, it is possible to lower the help desk call volume and shift some of the burden from right to left. It takes a: Holistic approach to delivering the service Number of innovations to change the economics and improve end user satisfaction. This process is an evolutionary, and IBM can help at every stage.
• #10: IBM believes that to meet the demands of a planet that is growing smarter with each passing day you must build a dynamic infrastructure where IT is now the central nervous system across the business. And the best way to make the datacenter and IT smarter is to leverage the differentiators of a workload optimized approach, integrated service management and flexible delivery choices. In support of this, IBM has introduced and continues to grow a new Smart Business portfolio that brings together these 3 differentiators into solutions that your company can leverage today. Workload optimized solutions that are built on a foundation of integrated and proactive service management, with delivery choices that allow you to choose what best fits your needs. Smart Business services that provide a cloud computing deployment either on the IBM cloud or behind your firewall. Smart Business systems that are purpose-built, pre-integrated solutions of hardware, software, and services designed to manage and optimize a particular workload. Combined with the additional choices that IBM offers today: -technologies in hardware and software, -consulting, design and implementation services -managed services and hosting -outsourcing and selective out-tasking options …. … .IBM meets you where you are at, and has the resources to best help you in getting to where you need to go.