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Reboot IT Service Management
Eveline Oehrlich, Principal Analyst



May 18, 2012
 ay 8, 0




1   © 2011 Forrester Research, Inc. Reproduction Prohibited
      2009
About ITSM Academy

          Accredited Education                                  Since 2003 - Tens of Thousands
                   Certified Process Design Engineer (CPDE)     Trained and Certified
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                   ITIL Lifec cle (SS|SD|ST|SO|CSI)
                         Lifecycle                               Public Classes throughout U.S.
                   ITIL Managing Across the Lifecycle (MALC)
                                                                 Corporate On-Site Classes
                   ISO/IEC 20000 Foundation
                                                                 Virtual Classes
                   ISO/IEC 20000 Foundation Bridge
                       /
                                                                 Courseware Licensing
                   MOF Foundation
                                                                    Corporate & Partner (GEM)
          Practical, Value-Add Workshops
                                       p
                                                                 Al
                                                                  Alumni P
                                                                       i Program
                   ITSM Leadership
                                                                 PMI Global Education Provider
                   ITIL, MOF, ISO 20K Overviews
                   Apollo 13, Visible Ops: The Class
                           13                                    Certified Woman-Owned
                   And more!
ITIL® is a Registered Trade Mark of the Cabinet Office.
© ITSM Academy                                            2
                                                                     Welcome!
The Bad News




3   © 2010 Forrester Research, Inc. Reproduction Prohibited
      2009
Back into a
                         budgetary
                       deepfreeze . . .

                                                                           . . . Priceless!
4   Entire contents © 2010 Forrester Research, Inc. All rights reserved.
Global business and government
    purchases of IT goods and services
         h       f      d   d     i
    (*Forrester Forecast)
                                                      2010                 2011*   2012*
                    Infrastructure 11.6%                                   10.7%   5.5%
                    Telecom                           6.4%                 5.7%    3.0%
                    Software                          6.6%                 9.8%    5.4%
                    IT consulting
                            lti                       7.7%
                                                      7 7%                 11.0%
                                                                           11 0%   6.0%
                                                                                   6 0%
                    IT                                6.7%                 10.6%   6.7%
                    outsourcing
                    Total IT                          7.8%                 9.7%    5.4%
                    purchases



5   Entire contents © 2010 Forrester Research, Inc. All rights reserved.
The Good News




6   © 2010 Forrester Research, Inc. Reproduction Prohibited
      2009
Business Demands IT Help Even When Revenues Fall




June 2006 B t P ti
J    2006, Best Practices “H
                          “How IT M t Sh
                                  Must Shape A d M
                                             And Manage D
                                                        Demand”
                                                             d”




                                                                  © 2006, Forrester Research, Inc. Reproduction Prohibited
Three Sets Of Forces Shaping Business
Demand




              2010                                      2012   2015   Beyond
8   © 2010 Forrester Research, Inc. Reproduction Prohibited
Business-ready, self-service technologies are on the rise
 egree of business change




                                                                                                    10% 33%
                                                                                                    10%-33%
                                                                                                 $28B
          b




                                                                                                 $258B
                                                                       14M
De




                                                                       80M

                                              2010                                        2012     2015   Beyond
                            9   © 2010 Forrester Research, Inc. Reproduction Prohibited
And a self-sufficient, tech-savvy workforce is rising with it



                                                                                             60%
           usiness change




                                                                                      22%
                   c




                                                                40% IT
  gree of bu




                   78%
Deg




                                                                                                      46%

                                                           26%

                                                          2010                        2012    2015   Beyond
              10            © 2010 Forrester Research, Inc. Reproduction Prohibited
The business environment will be radically more
                  complex
           usiness change
                   c




                                                                              1B
  gree of bu




                                            $28T
Deg




                                                          2010                        2012   2015   Beyond
                  11        © 2010 Forrester Research, Inc. Reproduction Prohibited
The Challenges




12   © 2010 Forrester Research, Inc. Reproduction Prohibited
       2009
The result: An increasing IT capability gap




                                   2010                        2015
13   © 2010 Forrester Research, Inc. Reproduction Prohibited
2012 Top Five IT Management Priorities




      October 2011 “2012 IT Budget Planning Guide For CIOs”
14   © 2010 Forrester Research, Inc. Reproduction Prohibited
The MOOSE




                                                               M = Maintaining and
                                                               O = Ongoing
                                                               O = Operations
                                                               S = Systems and
                                                               E = Equipment




15   © 2010 Forrester Research, Inc. Reproduction Prohibited
2011 IT budgets and the MOOSE




     October 7, 2010 “2011 IT Budget Planning Guide For CIOs” Forrester report
16   © 2010 Forrester Research, Inc. Reproduction Prohibited
IT Reputation ?




17   © 2010 Forrester Research, Inc. Reproduction Prohibited
Only A Minority Perceive IT As Tightly Aligned With The
              Business




       December 2010 “Beyond Alignment: BT Strategic Planning”
18   © 2010 Forrester Research, Inc. Reproduction Prohibited
We could …




     Source: Rudder Finn blog
     http://www.ruderfinn.co.uk/blogs/dotcom/files/2009/06/enviromental-head-in-the-sand.jpg




19   © 2011 Forrester Research, Inc. Reproduction Prohibited
Reboot IT Service Management




20   © 2010 Forrester Research, Inc. Reproduction Prohibited
       2009
Efficiency                                                            =   People




                                                                                       +




   Technology
21 Entire contents © 2010 Forrester Research,Reproduction Prohibited
   21        © 2011 Forrester Research, Inc. Inc. All rights reserved.
                                                                         +   Process
Which of the following initiatives are likely to be your
                IT organization’s top IT management priorities over
                                 the next 12 months?
                       Don't know             Not on our agenda   Low priority         High priority    Critical priority

               Create a comprehensive cloud/as-a-service
                                                               2%   25%                          35%                 26%      12%
                                    adoption/migration plan
     Lower IT’s operational costs to free up money for new
                                                               1%8%     31%                                  41%            20%
                                                  initiatives.
      Improve the sustainability and energy efficiency of IT
                                                               1% 16%                      38%                      33%       13%
                              operations and infrastructure
                   Improve or streamline business processes 1%7%                 24%                    45%                 23%

            Improve our customer management capabilities 1%7%                    26%                    44%                 21%
          Increase IT capacity/resources to drive business
                                                           1%
                                                            6%              23%                        47%                  24%
                                               innovations
                      Market the IT department within the firm 1%       22%                    38%                    30%         10%

 Increase the scope of IT’s centralized or shared services 1%10%                   30%                       43%             17%

                        Define strategy for risk and compliance 1%9%               35%                         40%           15%

         Improve the efficiency of IT (e.g., Lean initiatives) 1%
                                                                4%         22%                         50%                  23%
Improve IT performance by adopting processes like CMM
                                                          4%   23%                               35%                  29%         10%
                                                 or ITIL
    Improve the measurement of IT’s impact on business
                                                         1%10%     31%                                        43%            16%
                                          performance
         Base: 2741 North American, European, Asia Pacific, and Latin American IT budget decision-makers
       Source: Forrsights Budgets and Priorities Tracker Survey, Q2 2011
22     © 2012 Forrester Research, Inc. Reproduction Prohibited
Strategy
                             gy                          People
                                                            p     Process   Technology
                                                                                    gy




                  Service Management & Automation



23   © 2011 Forrester Research, Inc. Reproduction Prohibited
Got Strategy?




24   © 2011 Forrester Research, Inc. Reproduction Prohibited
The IT-To-BT Complexity Evolution




January 2012 “Develop An IT Service Management And Automation Strategic Plan”



                                                                     © 2012, Forrester Research, Inc. Reproduction Prohibited
ITSM Strategy

 Why needed
  Determine specific objectives and resources needed
  Not just an idea but a systematic transformation from an informal to a
   formal strategy
  Determines next steps




26   © 2011 Forrester Research, Inc. Reproduction Prohibited
ITSM Strategy

 Benefits
  Improve decision-making and stability
  Measure progress towards the enterprise’s long-term vision
  Transition IT to BT and from utility to trusted business partner
  Evaluate resources and budgets in the future – objectively
  Analyze the cost versus value of projects objectively
  Deliver more value at lest cost by tightening execution model
  Reduce costs from redundancies in tools and their uncontrolled
   proliferation




27   © 2011 Forrester Research, Inc. Reproduction Prohibited
The Four Perspectives Of The IT Infrastructure And Operations Balanced Scorecard




January 2012 “Develop An IT Service Management And Automation Strategic Plan”



                                                                       © 2012, Forrester Research, Inc. Reproduction Prohibited
How has ITIL (IT Service Management) impacted the
 following?




     Org Reputation                                              Ops Productivity    Service Quality

                Significantly beneficial
                Beneficial
                No change
                Detrimental
                Significantly detrimental
                Don’t know

                                                                                         Ops Costs
      Source: Service Management Insights from the 2011 Forrester/itSMF-USA ITSM Study
29     © 2011 Forrester Research, Inc. Reproduction Prohibited
Do you have a written down IT Service Management Strategy?

     Does your team have access to it?
     Do you understand your benefits?




30   © 2011 Forrester Research, Inc. Reproduction Prohibited
The change is lead by your team!




31   © 2010 Forrester Research, Inc. Reproduction Prohibited
       2009
People
     The I&O Organization Is Splitting Into The “I” Group And The “O” Group
                                                 I                 O




February 2012 “Refine Priorities Now For IT Service Management And Automation”
                                                                  © 2012, Forrester Research, Inc. Reproduction Prohibited
People

 Situation
  What skills are needed in the future?
  Do you have the right skills to take you into the future?
  How to transition your people?
  What training should they have?




33   © 2011 Forrester Research, Inc. Reproduction Prohibited
Hot new roles emerge                                            People

      Business relationship manager
      Automation architect
      Service designer
      Service manager
                   g
      Vendor manager
      Process owner




34     © 2011 Forrester Research, Inc. Reproduction Prohibited
The importance of processes




                                                               ..in the age of the customer




35   © 2011 Forrester Research, Inc. Reproduction Prohibited
Process in the age of the customer implications

 1. Linking service desk to the entire service support value chain
 2. Increased emphasis on customer experience
 3. Mobility (manage on mobile and manage mobile devices)
 4. Usability factor
 5. Change in roles and functions
 6. The need for process maturity
 7. Collaboration across all functions
 8. Business model flexibility




36   © 2012 Forrester Research, Inc. Reproduction Prohibited
Age of the customer implications

 1. Linking service desk to the entire service support value chain
 2. Increased emphasis on customer experience
 3. Mobility (manage on mobile and manage mobile devices)
 4. Usability factor
 5. Change in roles and functions
 6. The need for process maturity
 7. Collaboration across all functions
 8. Business model flexibility




37   © 2012 Forrester Research, Inc. Reproduction Prohibited
Focus on service support


 - Determine your service levels
 - Understand the cost of service support




38   © 2012 Forrester Research, Inc. Reproduction Prohibited
Age of the customer implications

 1. Linking service desk to the entire service support value chain
 2. Increased emphasis on customer experience
 3. Mobility (manage on mobile and manage mobile devices)
 4. Usability factor
 5. Change in roles and functions
 6. The need for process maturity
 7. Collaboration across all functions
 8. Business model flexibility




39   © 2012 Forrester Research, Inc. Reproduction Prohibited
Customer Experience?




40   © 2012 Forrester Research, Inc. Reproduction Prohibited
Focus on customer experience




                          - Implement a ser ice catalog
                                        service
                          - Introduce self service initiatives



41   © 2011 Forrester Research, Inc. Reproduction Prohibited
Age of the customer implications

 1. Linking service desk to the entire service support value chain
 2. Increased emphasis on customer experience
 3. Mobility (manage on mobile and manage mobile devices)
 4. Usability factor
 5. Change in roles and functions
 6. The need for process maturity
 7. Collaboration across all functions
 8. Business model flexibility




42   © 2012 Forrester Research, Inc. Reproduction Prohibited
At home
                                                                                           At client sites




                                                               Can you support mobility?
                                                                   y     pp           y




 At satellite offices                                                                      In transit
43   © 2012 Forrester Research, Inc. Reproduction Prohibited
Age of the customer implications

 1. Linking service desk to the entire service support value chain
 2. Increased emphasis on customer experience
 3. Mobility (manage on mobile and manage mobile devices)
 4. Usability factor
 5. Change in roles and functions
 6. The need for process maturity
 7. Collaboration across all functions
 8. Business model flexibility




44   © 2012 Forrester Research, Inc. Reproduction Prohibited
Focus on usability


 - Are your easy to do business with?
 - How usable are your tools?




45   © 2011 Forrester Research, Inc. Reproduction Prohibited
How can you be reached?




46   © 2012 Forrester Research, Inc. Reproduction Prohibited
Age of the customer implications

 1. Linking service desk to the entire service support value chain
 2. Increased emphasis on customer experience
 3. Mobility (manage on mobile and manage mobile devices)
 4. Usability factor
 5. Change in roles and functions
 6. The need for process maturity
 7. Collaboration across all functions
 8. Business model flexibility




47   © 2012 Forrester Research, Inc. Reproduction Prohibited
Have you felt like this?




48   © 2012 Forrester Research, Inc. Reproduction Prohibited
Two sides of the conversation




49   © 2012 Forrester Research, Inc. Reproduction Prohibited
Exciting service support


 - Enable your front end with domain knowledge
 - Introduce knowledge management (across lifecycle)
 - Make the job exciting with tools
 - E
   Empower the t
           th team with training
                    ith t i i
 - Enforce discipline through tools and processes




50   © 2011 Forrester Research, Inc. Reproduction Prohibited
Age of the customer implications

 1. Linking service desk to the entire service support value chain
 2. Increased emphasis on customer experience
 3. Mobility (manage on mobile and manage mobile devices)
 4. Usability factor
 5. Change in roles and functions
 6. The need for process maturity
 7. Collaboration across all functions
 8. Business model flexibility




51   © 2012 Forrester Research, Inc. Reproduction Prohibited
Efficiency comes through good processes




February 2012 “TechRadar™ For I&O Professionals: IT Service Management Processes, Q1 2012”
                                                                          © 2012, Forrester Research, Inc. Reproduction Prohibited
2011 Forrester/itSMF USA ITSM Study
             How would you assess realistic value of the p
                         y                                 practices outlined in
            each of the official ITIL v3 books (1 = worthless and 5 = valuable)?
100%                                                                                                     5.0
               9%                         9%                        8%           8%            10%

88%                                                                                                      45
                                                                                                         4.5
                                                                    30%                       29%
              19%
                                         24%                                     4.1
75%                                                                 4.0                                  4.0
                                                                                               3.9
                                          3.8
                                                                                 34%
63%            3.5                                                                                       3.5   Don't know
                                                                                                               5
50%           28%                        35%                                                             3.0   4
                                                                    35%                        34%             3
38%                                                                              40%                     2.5   2
              25%
                                                                                                               1
25%                                                                                                      2.0   Average
                                         23%
                                                                    21%                        19%
13%           14%                                                                14%                     1.5

                                          8%                                                   7%
               5%                                                   5%           4%
 0%                                       1%                                                   1%        1.0
          Service              Service Design                     Service      Service       Continual
          Strategy                                               Transition   Operations      Service
                                                                                           Improvement
 53    © 2011 Forrester Research, Inc. Reproduction Prohibited
2011 Forrester/itSMF USA ITSM Study
           How would you assess your organization's maturity in the p
                       y           y        g                   y       practices
             outlined in each of the official ITIL v3 books (1 = worst and 5 =
                                           best)?
100%                                                                                                     5.0
               6%                         6%                        5%           4%            5%
               3%                         3%                        4%
                                                                                 9%            6%
88%                                                                                                      4.5
              11%                        12%
                                                                    20%                        11%

75%                                                                                                      4.0
              19%                                                                35%
                                         24%
63%                                                                                            27%       3.5   Don't know
                                                                                 3.3
                                                                    36%                                        5
50%                                                                                                      3.0   4
              33%                                                   28
                                                                    2.8
                                                                                                               3
38%                                                                              32%           2.5       2.5
                                          2.4                                                                  2
               2.2
                                                                                               30%             1
25%                                                                                                      2.0
                                         38%                        28%                                        Average

13%           28%                                                                                        1.5
                                                                                 17%           21%
                                         17%
                                                                    8%
 0%                                                                              3%                      1.0
          Service              Service Design                     Service      Servce        Continual
          Strategy                                               Transition   Operations      Service
                                                                                           Improvement
 54    © 2011 Forrester Research, Inc. Reproduction Prohibited
Process allows you to automate!



    The Forrester Automation Wheel Helps You Define Your Automation Tool Portfolio




February 2012 “Refine Priorities Now For IT Service Management And Automation”



                                                                      © 2012, Forrester Research, Inc. Reproduction Prohibited
Age of the customer implications

 1. Linking service desk to the entire service support value chain
 2. Increased emphasis on customer experience
 3. Mobility (manage on mobile and manage mobile devices)
 4. Usability factor
 5. Change in roles and functions
 6. The need for process maturity
 7. Collaboration across all functions
 8. Business model flexibility




56   © 2012 Forrester Research, Inc. Reproduction Prohibited
Collaboration is a critical success factor
Areas for collaboration
      Guardrails and                     Synergies
       Guidelines                                                   Process         Experience         Knowledge
                                        across areas




                           Service                                                       Outsourcer
                          Delivery




           Consultant                                                                            CIO
                                                                   Service
                                                                    Desk
                                                                    D k

                Other IT
                Groups
                                                                              LOB
 57      © 2010 Forrester Research, Inc. Reproduction Prohibited
Age of the customer implications

 1. Linking service desk to the entire service support value chain
 2. Increased emphasis on customer experience
 3. Mobility (manage on mobile and manage mobile devices)
 4. Usability factor
 5. Change in roles and functions
 6. The need for process maturity
 7. Collaboration across all functions
 8. Business model flexibility




58   © 2012 Forrester Research, Inc. Reproduction Prohibited
Cloud adoption accelerates in 2012
         “What are your firm s plans to adopt the following software technologies?”
           What          firm’s                                          technologies?
 (Respondents who selected “implementing, not expanding,” “expanding/upgrading implementation,”
    “planning to implement in the next 12 months,” or “planning to implement in a year or more”)


     60%                                                                                                                SaaS
     50%                    By the end of 2012, 45% of all companies
                            will be using SaaS (60% in 2012!).
     40%                                                                                                                IaaS
     30%                                                                                                                PaaS
     20%
     10%
     0%
                                                                                                 2012               2013+
                         2009                            2010              2011              (planning to        (planning to 
                        (actual)                       (actual)          (actual)         implement in the    implement in a year 
                                                                                           next 12 months)         or more)
      IaaS                9%                             14%               17%                   29%                 41%
      PaaS                5%                              8%               11%                   19%                 32%
      SaaS                21%                            25%               30%                   45%                 60%



                                                 Base: 1,900 to 2,438 software decision-makers
                                                                               decision makers

     Source: Enterprise And SMB Software Survey, North America And Europe, Q4 2009; Forrsights Software Survey, Q4
     2010; Forrsights Software Survey, Q4 2011
59   © 2012 Forrester Research, Inc. Reproduction Prohibited
The shift from cost and speed to business performance
        “How important were the following benefits in your firm’s decision to use SaaS?”
       (Percentage of respondents who selected 4 [important factor] or 5 [very important factor])
                                    (Select one for each row)


                     “Lower overall cost”                            “Improved business agility”


                  71%                                                                              72%

                                                                                    58%

                                       61%                     60%
                                                                       32%




           2009 (N = 287) 2010 (N = 534) 2011 (N = 920)

                                                                       2009         2010           2011
                                                                     (N = 287)    (N = 534)      (N = 920)


                                Base: North American and European software decision-makers who
                                               are using or p
                                                       g planning to use SaaS
                                                                 g

     Source: Source: Enterprise And SMB Software Survey, North America And Europe, Q4 2009; Forrsights Software Survey,
     Q4 2010; Forrsights Software Survey, Q4 2011
60   © 2012 Forrester Research, Inc. Reproduction Prohibited
Conclusion

 Stop running blind: Strategize!
 Adapt organization, structure and skills
 Change the perception that process is stifling and at the mercy of the
  process police (ITIL can’t be a religion)
 Act like a service provider – then become one - then partner with business
 A t
  Automate and streamline
        t    d t     li
    Yes with tools but rationalize!

 Look back celebrate – then check what can be improved




                                                      © 2012, Forrester Research, Inc. Reproduction Prohibited
Questions




62   © 2011 Forrester Research, Inc. Reproduction Prohibited
Thank you
      y


Eveline Oehrlich (Hubbert)
+1 617.613.8803
         @
eoehrlich@forrester.com
www.forrester.com




  © 2009 Forrester Research, Inc. Reproduction Prohibited

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Reboot Your IT Service Management

  • 1. Reboot IT Service Management Eveline Oehrlich, Principal Analyst May 18, 2012 ay 8, 0 1 © 2011 Forrester Research, Inc. Reproduction Prohibited 2009
  • 2. About ITSM Academy  Accredited Education  Since 2003 - Tens of Thousands  Certified Process Design Engineer (CPDE) Trained and Certified  ITIL® Foundation  ITSM Professional Diplomas  ITIL Capability (OSA|PPO|RCV|SOA)  Change/Support/SLM  ITIL Lifec cle (SS|SD|ST|SO|CSI) Lifecycle  Public Classes throughout U.S.  ITIL Managing Across the Lifecycle (MALC)  Corporate On-Site Classes  ISO/IEC 20000 Foundation  Virtual Classes  ISO/IEC 20000 Foundation Bridge /  Courseware Licensing  MOF Foundation  Corporate & Partner (GEM)  Practical, Value-Add Workshops p  Al Alumni P i Program  ITSM Leadership  PMI Global Education Provider  ITIL, MOF, ISO 20K Overviews  Apollo 13, Visible Ops: The Class 13  Certified Woman-Owned  And more! ITIL® is a Registered Trade Mark of the Cabinet Office. © ITSM Academy 2 Welcome!
  • 3. The Bad News 3 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  • 4. Back into a budgetary deepfreeze . . . . . . Priceless! 4 Entire contents © 2010 Forrester Research, Inc. All rights reserved.
  • 5. Global business and government purchases of IT goods and services h f d d i (*Forrester Forecast) 2010 2011* 2012* Infrastructure 11.6% 10.7% 5.5% Telecom 6.4% 5.7% 3.0% Software 6.6% 9.8% 5.4% IT consulting lti 7.7% 7 7% 11.0% 11 0% 6.0% 6 0% IT 6.7% 10.6% 6.7% outsourcing Total IT 7.8% 9.7% 5.4% purchases 5 Entire contents © 2010 Forrester Research, Inc. All rights reserved.
  • 6. The Good News 6 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  • 7. Business Demands IT Help Even When Revenues Fall June 2006 B t P ti J 2006, Best Practices “H “How IT M t Sh Must Shape A d M And Manage D Demand” d” © 2006, Forrester Research, Inc. Reproduction Prohibited
  • 8. Three Sets Of Forces Shaping Business Demand 2010 2012 2015 Beyond 8 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 9. Business-ready, self-service technologies are on the rise egree of business change 10% 33% 10%-33% $28B b $258B 14M De 80M 2010 2012 2015 Beyond 9 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 10. And a self-sufficient, tech-savvy workforce is rising with it 60% usiness change 22% c 40% IT gree of bu 78% Deg 46% 26% 2010 2012 2015 Beyond 10 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 11. The business environment will be radically more complex usiness change c 1B gree of bu $28T Deg 2010 2012 2015 Beyond 11 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 12. The Challenges 12 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  • 13. The result: An increasing IT capability gap 2010 2015 13 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 14. 2012 Top Five IT Management Priorities October 2011 “2012 IT Budget Planning Guide For CIOs” 14 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 15. The MOOSE M = Maintaining and O = Ongoing O = Operations S = Systems and E = Equipment 15 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 16. 2011 IT budgets and the MOOSE October 7, 2010 “2011 IT Budget Planning Guide For CIOs” Forrester report 16 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 17. IT Reputation ? 17 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 18. Only A Minority Perceive IT As Tightly Aligned With The Business December 2010 “Beyond Alignment: BT Strategic Planning” 18 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 19. We could … Source: Rudder Finn blog http://www.ruderfinn.co.uk/blogs/dotcom/files/2009/06/enviromental-head-in-the-sand.jpg 19 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 20. Reboot IT Service Management 20 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  • 21. Efficiency = People + Technology 21 Entire contents © 2010 Forrester Research,Reproduction Prohibited 21 © 2011 Forrester Research, Inc. Inc. All rights reserved. + Process
  • 22. Which of the following initiatives are likely to be your IT organization’s top IT management priorities over the next 12 months? Don't know Not on our agenda Low priority High priority Critical priority Create a comprehensive cloud/as-a-service 2% 25% 35% 26% 12% adoption/migration plan Lower IT’s operational costs to free up money for new 1%8% 31% 41% 20% initiatives. Improve the sustainability and energy efficiency of IT 1% 16% 38% 33% 13% operations and infrastructure Improve or streamline business processes 1%7% 24% 45% 23% Improve our customer management capabilities 1%7% 26% 44% 21% Increase IT capacity/resources to drive business 1% 6% 23% 47% 24% innovations Market the IT department within the firm 1% 22% 38% 30% 10% Increase the scope of IT’s centralized or shared services 1%10% 30% 43% 17% Define strategy for risk and compliance 1%9% 35% 40% 15% Improve the efficiency of IT (e.g., Lean initiatives) 1% 4% 22% 50% 23% Improve IT performance by adopting processes like CMM 4% 23% 35% 29% 10% or ITIL Improve the measurement of IT’s impact on business 1%10% 31% 43% 16% performance Base: 2741 North American, European, Asia Pacific, and Latin American IT budget decision-makers Source: Forrsights Budgets and Priorities Tracker Survey, Q2 2011 22 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 23. Strategy gy People p Process Technology gy Service Management & Automation 23 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 24. Got Strategy? 24 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 25. The IT-To-BT Complexity Evolution January 2012 “Develop An IT Service Management And Automation Strategic Plan” © 2012, Forrester Research, Inc. Reproduction Prohibited
  • 26. ITSM Strategy Why needed  Determine specific objectives and resources needed  Not just an idea but a systematic transformation from an informal to a formal strategy  Determines next steps 26 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 27. ITSM Strategy Benefits  Improve decision-making and stability  Measure progress towards the enterprise’s long-term vision  Transition IT to BT and from utility to trusted business partner  Evaluate resources and budgets in the future – objectively  Analyze the cost versus value of projects objectively  Deliver more value at lest cost by tightening execution model  Reduce costs from redundancies in tools and their uncontrolled proliferation 27 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 28. The Four Perspectives Of The IT Infrastructure And Operations Balanced Scorecard January 2012 “Develop An IT Service Management And Automation Strategic Plan” © 2012, Forrester Research, Inc. Reproduction Prohibited
  • 29. How has ITIL (IT Service Management) impacted the following? Org Reputation Ops Productivity Service Quality Significantly beneficial Beneficial No change Detrimental Significantly detrimental Don’t know Ops Costs Source: Service Management Insights from the 2011 Forrester/itSMF-USA ITSM Study 29 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 30. Do you have a written down IT Service Management Strategy? Does your team have access to it? Do you understand your benefits? 30 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 31. The change is lead by your team! 31 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  • 32. People The I&O Organization Is Splitting Into The “I” Group And The “O” Group I O February 2012 “Refine Priorities Now For IT Service Management And Automation” © 2012, Forrester Research, Inc. Reproduction Prohibited
  • 33. People Situation  What skills are needed in the future?  Do you have the right skills to take you into the future?  How to transition your people?  What training should they have? 33 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 34. Hot new roles emerge People  Business relationship manager  Automation architect  Service designer  Service manager g  Vendor manager  Process owner 34 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 35. The importance of processes ..in the age of the customer 35 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 36. Process in the age of the customer implications 1. Linking service desk to the entire service support value chain 2. Increased emphasis on customer experience 3. Mobility (manage on mobile and manage mobile devices) 4. Usability factor 5. Change in roles and functions 6. The need for process maturity 7. Collaboration across all functions 8. Business model flexibility 36 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 37. Age of the customer implications 1. Linking service desk to the entire service support value chain 2. Increased emphasis on customer experience 3. Mobility (manage on mobile and manage mobile devices) 4. Usability factor 5. Change in roles and functions 6. The need for process maturity 7. Collaboration across all functions 8. Business model flexibility 37 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 38. Focus on service support - Determine your service levels - Understand the cost of service support 38 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 39. Age of the customer implications 1. Linking service desk to the entire service support value chain 2. Increased emphasis on customer experience 3. Mobility (manage on mobile and manage mobile devices) 4. Usability factor 5. Change in roles and functions 6. The need for process maturity 7. Collaboration across all functions 8. Business model flexibility 39 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 40. Customer Experience? 40 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 41. Focus on customer experience - Implement a ser ice catalog service - Introduce self service initiatives 41 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 42. Age of the customer implications 1. Linking service desk to the entire service support value chain 2. Increased emphasis on customer experience 3. Mobility (manage on mobile and manage mobile devices) 4. Usability factor 5. Change in roles and functions 6. The need for process maturity 7. Collaboration across all functions 8. Business model flexibility 42 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 43. At home At client sites Can you support mobility? y pp y At satellite offices In transit 43 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 44. Age of the customer implications 1. Linking service desk to the entire service support value chain 2. Increased emphasis on customer experience 3. Mobility (manage on mobile and manage mobile devices) 4. Usability factor 5. Change in roles and functions 6. The need for process maturity 7. Collaboration across all functions 8. Business model flexibility 44 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 45. Focus on usability - Are your easy to do business with? - How usable are your tools? 45 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 46. How can you be reached? 46 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 47. Age of the customer implications 1. Linking service desk to the entire service support value chain 2. Increased emphasis on customer experience 3. Mobility (manage on mobile and manage mobile devices) 4. Usability factor 5. Change in roles and functions 6. The need for process maturity 7. Collaboration across all functions 8. Business model flexibility 47 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 48. Have you felt like this? 48 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 49. Two sides of the conversation 49 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 50. Exciting service support - Enable your front end with domain knowledge - Introduce knowledge management (across lifecycle) - Make the job exciting with tools - E Empower the t th team with training ith t i i - Enforce discipline through tools and processes 50 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 51. Age of the customer implications 1. Linking service desk to the entire service support value chain 2. Increased emphasis on customer experience 3. Mobility (manage on mobile and manage mobile devices) 4. Usability factor 5. Change in roles and functions 6. The need for process maturity 7. Collaboration across all functions 8. Business model flexibility 51 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 52. Efficiency comes through good processes February 2012 “TechRadar™ For I&O Professionals: IT Service Management Processes, Q1 2012” © 2012, Forrester Research, Inc. Reproduction Prohibited
  • 53. 2011 Forrester/itSMF USA ITSM Study How would you assess realistic value of the p y practices outlined in each of the official ITIL v3 books (1 = worthless and 5 = valuable)? 100% 5.0 9% 9% 8% 8% 10% 88% 45 4.5 30% 29% 19% 24% 4.1 75% 4.0 4.0 3.9 3.8 34% 63% 3.5 3.5 Don't know 5 50% 28% 35% 3.0 4 35% 34% 3 38% 40% 2.5 2 25% 1 25% 2.0 Average 23% 21% 19% 13% 14% 14% 1.5 8% 7% 5% 5% 4% 0% 1% 1% 1.0 Service Service Design Service Service Continual Strategy Transition Operations Service Improvement 53 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 54. 2011 Forrester/itSMF USA ITSM Study How would you assess your organization's maturity in the p y y g y practices outlined in each of the official ITIL v3 books (1 = worst and 5 = best)? 100% 5.0 6% 6% 5% 4% 5% 3% 3% 4% 9% 6% 88% 4.5 11% 12% 20% 11% 75% 4.0 19% 35% 24% 63% 27% 3.5 Don't know 3.3 36% 5 50% 3.0 4 33% 28 2.8 3 38% 32% 2.5 2.5 2.4 2 2.2 30% 1 25% 2.0 38% 28% Average 13% 28% 1.5 17% 21% 17% 8% 0% 3% 1.0 Service Service Design Service Servce Continual Strategy Transition Operations Service Improvement 54 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 55. Process allows you to automate! The Forrester Automation Wheel Helps You Define Your Automation Tool Portfolio February 2012 “Refine Priorities Now For IT Service Management And Automation” © 2012, Forrester Research, Inc. Reproduction Prohibited
  • 56. Age of the customer implications 1. Linking service desk to the entire service support value chain 2. Increased emphasis on customer experience 3. Mobility (manage on mobile and manage mobile devices) 4. Usability factor 5. Change in roles and functions 6. The need for process maturity 7. Collaboration across all functions 8. Business model flexibility 56 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 57. Collaboration is a critical success factor Areas for collaboration Guardrails and Synergies Guidelines Process Experience Knowledge across areas Service Outsourcer Delivery Consultant CIO Service Desk D k Other IT Groups LOB 57 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 58. Age of the customer implications 1. Linking service desk to the entire service support value chain 2. Increased emphasis on customer experience 3. Mobility (manage on mobile and manage mobile devices) 4. Usability factor 5. Change in roles and functions 6. The need for process maturity 7. Collaboration across all functions 8. Business model flexibility 58 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 59. Cloud adoption accelerates in 2012 “What are your firm s plans to adopt the following software technologies?” What firm’s technologies? (Respondents who selected “implementing, not expanding,” “expanding/upgrading implementation,” “planning to implement in the next 12 months,” or “planning to implement in a year or more”) 60% SaaS 50% By the end of 2012, 45% of all companies will be using SaaS (60% in 2012!). 40% IaaS 30% PaaS 20% 10% 0% 2012 2013+ 2009 2010 2011 (planning to  (planning to  (actual) (actual) (actual) implement in the  implement in a year  next 12 months) or more) IaaS 9% 14% 17% 29% 41% PaaS 5% 8% 11% 19% 32% SaaS 21% 25% 30% 45% 60% Base: 1,900 to 2,438 software decision-makers decision makers Source: Enterprise And SMB Software Survey, North America And Europe, Q4 2009; Forrsights Software Survey, Q4 2010; Forrsights Software Survey, Q4 2011 59 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 60. The shift from cost and speed to business performance “How important were the following benefits in your firm’s decision to use SaaS?” (Percentage of respondents who selected 4 [important factor] or 5 [very important factor]) (Select one for each row) “Lower overall cost” “Improved business agility” 71% 72% 58% 61% 60% 32% 2009 (N = 287) 2010 (N = 534) 2011 (N = 920) 2009 2010 2011 (N = 287) (N = 534) (N = 920) Base: North American and European software decision-makers who are using or p g planning to use SaaS g Source: Source: Enterprise And SMB Software Survey, North America And Europe, Q4 2009; Forrsights Software Survey, Q4 2010; Forrsights Software Survey, Q4 2011 60 © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 61. Conclusion  Stop running blind: Strategize!  Adapt organization, structure and skills  Change the perception that process is stifling and at the mercy of the process police (ITIL can’t be a religion)  Act like a service provider – then become one - then partner with business  A t Automate and streamline t d t li  Yes with tools but rationalize!  Look back celebrate – then check what can be improved © 2012, Forrester Research, Inc. Reproduction Prohibited
  • 62. Questions 62 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 63. Thank you y Eveline Oehrlich (Hubbert) +1 617.613.8803 @ eoehrlich@forrester.com www.forrester.com © 2009 Forrester Research, Inc. Reproduction Prohibited