Showing posts with label ITSM. Show all posts
Showing posts with label ITSM. Show all posts

Tuesday, April 07, 2015

ITIL-ITSM Tagteam Boosts Mexican ISP INFOTEC's Service Desk and Monitoring Performance

Transcript of a BriefingsDirect podcast on how an IT provider in Mexico uses ITSM tools to improve service to customers.

Listen to the podcast. Find it on iTunes. Get the mobile app for iOS or Android. Download the transcript. Sponsor: HP.

Dana Gardner: Hello, and welcome to the next edition of the HP Discover Podcast Series. I’m Dana Gardner, Principal Analyst at Interarbor Solutions, your host and moderator for this ongoing sponsored discussion on IT innovation and how it’s making an impact on people’s lives.

Gardner
Once again, we're focusing on how companies are adapting to the new style of IT to improve IT performance and deliver better user experiences, as well as better business results.

Our next innovation case study interview highlights how INFOTEC in Mexico City improves its service desk and monitoring operations and enjoys impressive results from those efforts.

To learn more, we're joined by Victor Hugo Piña García, the Service Desk and Monitoring Manager at INFOTEC. Welcome.
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Victor Hugo Piña García: Hello. Thank you.

Gardner: Tell us about INFOTEC, what your organization is and does.

Piña: INFOTEC is a Government Research Center. We have many activities. The principal ones are teaching, innovation technology, and IT consulting. The goal is to provide IT services. We have many IT services like data centers, telecommunications, service desk, monitoring, and manpower.

Gardner: This is across Mexico, the entire country?

Piña: Yes, it covers all the national territory. We have two locations. The principal is in Mexico City; San Fernando, and the Aguascalientes City is the other point we offer the services.

Gardner: Explain your role as the Service Desk and Monitoring Manager. What are you responsible for?

Three areas

Piña: My responsibility is in three areas. The first is the monitoring, to review all of the service, the IT components for the clients.

Piña
The second is the service desk, management of incidents and problems. Third is the generation of the deliveries of all the services of INFOTEC. We make deliveries for the IT service managers and service delivery.

Gardner: So it's important for organizations to know their internal operations, all the devices, and all the assets and resources in order to create these libraries. One of the great paybacks is that you can reduce time to resolution and you can monitor and have much greater support.

Give us a sense of what was going on before you got involved with ITIL and IT service management (ITSM), so that we can then better understand what you got as a benefit from it. What was it like before you were able to improve on your systems and operations?

Piña: We support the services with HP tools, HP products. We have many types of assets for adaptation and for solution. Then we create a better process. We align the process with the HP tools and products. Within two years we began to see benefits to service a customer.
That reduces considerably the time to repair. As a consequence, users have a better level of service.

We attained a better service level in two ways. First is the technical report, the failures. And second, the moment the failure is reported, we send specialists to attend to the failure. That reduces considerably the time to repair. As a consequence, users have a better level of service. Our values changed in the delivery of the service.

Gardner: I see that you have had cost reductions of up to one third in some areas, a 40 percent reduction in time to compliance, with service desk requests going from seven or eight minutes previously down to five minutes. It’s a big deal, an incident reduction of more than 20 percent. How is this possible? How were these benefits generated? Is it the technology, people, process, all the above?
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Piña: Yes, we consider four things. The people with their service is the first. The process with innovative mindset, the technology, is totally enabled to align with the previous two points, and the fourth, consistent and integral to the work in terms of the above three points.

Gardner: It sounds to me as if together these can add up to quite a bit of cost savings, a significant reduction in the total cost of operations.

Piña: Yes, that’s correct.

Gardner: Is there anything in particular that you're interested in and looking for next from HP? How could they help you do even more?

New concept and model

Piña: I've discovered many things. First, we need to know better and think about how we take these to generate a new concept, a new model, and a new process to operate and offer services.

There have been so many ideas. We need to process that and understand it, and we need to support HP Mexico to know how to deal with these new things.

Gardner: Are there any particular products that you might be going to, now that you've been able to attain a level of success? What might come next, more ITIL, more configuration management, automation, business service management? Do you have any  thoughts about your next steps?

Piña: Yes. We use ITIL methodology to make changes. When we present a new idea, we're looking for the impact -- economic, social, and political -- when the committee has a meeting to decide.
We need to know better and think about how we take these to generate a new concept, a new model, and a new process to operate and offer services.

This is a good idea. This has a good impact. It's possible and proven, and then right there, we make it the new model of business for delivering our new service. We're thinking about the cloud, about big data, and about security. I don’t want to promise anything.

Gardner: Very good. I'm afraid we will have to leave it there. We've been learning how INFOTEC in Mexico City has been improving on their helpdesk and monitoring and had some impressive reductions in costs and time to compliance with service requests and overall incident reduction of more than 20 percent.

I'd like to thank our guest. We've been joined by Victor Hugo Piña García, the Service Desk and Monitoring Manager at INFOTEC. Thank you so much.
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Piña: Thank you very much.

Gardner: And thank you to our audience for joining us for this special new style of IT discussion.

I'm Dana Gardner; Principal Analyst at Interarbor Solutions, your host for this ongoing series of HP-sponsored discussions. Thanks again for listening, and come back next time.

Listen to the podcast. Find it on iTunes. Get the mobile app for iOS or Android. Download the transcript. Sponsor: HP.

Transcript of a BriefingsDirect podcast on how an IT provider in Mexico uses HP ITSM tools to improve service to customers. Copyright Interarbor Solutions, LLC, 2005-2015. All rights reserved.

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Wednesday, March 25, 2015

IT Operations Modernization Helps Energy Powerhouse Exelon Acquire Businesses

Transcript of a BriefingsDirect discussion on how a large utility operation uses HP tools to get better insight into IT operations.

Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: HP.

Dana Gardner: Hello, and welcome to the next edition of the HP Discover Podcast Series. I’m Dana Gardner, Principal Analyst at Interarbor Solutions, your host and moderator for this ongoing sponsored discussion on IT innovation and how it’s making an impact on people’s lives.

Gardner
Once again, we're focusing on how companies are adapting to the new style of IT to improve IT performance and deliver better user experiences, as well as better business results.

Our next innovation case study interview highlights how Exelon Corporation, based in Chicago, has been employing a great deal of technology and process to improve their operations and also to help manage a merger and acquisition transition period, as well as bring outsourced IT operations back in house.
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To learn more about how Exelon, a leading energy provider in the US with a family of companies having $23.5 billion in annual revenue, accomplishes these goals we're joined by Jason Thomas, Manager of Service, Asset and Release Management at Exelon. He's based in Baltimore. Welcome, Jason.

Jason Thomas: Thank you, Dana. Its a pleasure to be here.

Gardner: I gave a brief overview of Exelon, but tell us a little bit more. It's quite a large organization that you're involved with.

Thomas: We are vast and expansive. We have a large nuclear fleet, around 40-odd nuclear power plants in three utilities, ComEd in Chicago, in the Illinois space; PECO out of Philadelphia; and BG and E in Baltimore.

So we have large urban utilities center. We also have a large retail presence with the Constellation brand and the sale of power both to corporations and to users. So there's a lot of that we do obviously in the utility space, and there are some element of the trade, the commodity trading side, as well in trading power in these markets.

Gardner: I imagine it must be quite a large IT organization to support all that?

Thomas: There are 1,200 to 1,300 IT employees across the company.

Gardner: Tell us about some of the challenges that you've been facing in managing your IT operations and making them more efficient. And, of course, we'd like to hear more about the merger between Constellation and Exelon back in 2012.

Merger is a challenge

Thomas: The biggest challenge is the merger. Obviously, our scale and the number of, for lack of a better word, things that we had to monitor, be aware of, and know about vastly increased. So we had to address that.

Thomas
A lot of our efforts around the merger and post-merger were around bringing everything into one standard monitoring platform, extending that monitoring out, leveraging the Business Service Management (BSM) suite of products, leveraging Universal Configuration Management Database (UCMDB).

Then there was a lot around consolidating asset management. In early 2013, we moved to Asset Manager as our asset manager platform of choice, consolidating data from Exelon from their tool, the Cergus CA Argis tool, into Asset Manager in support of moving to new IT billing that would be driven out of the data and Asset Manager in leveraging some of the executive scorecard and financial manager pieces to make that happen.

There was also a large effort through 2013 to move the company to a standardized platform to support our service desk, incident management, and also our service catalog for end-users. But a lot of this was driven last year around the in-sourcing of our relationship with Computer Sciences Corporation for our IT operations.

This was to basically realize a savings to the company of $12 to $15 million annually from the management of that contract, and also to move both the management and the expertise in house and leverage a lot of the processes that we built up and that had grown through the company as a whole.

Gardner: So knowing yourself well in terms of your IT infrastructure and all the elements of that is super important, and then bringing in-sourcing transition to the picture, involves quite a bit of complexity.
You've leveled the playing field and you have that common set of tools that you're going to drive to take you to the next level.

What do you get when you do this well? Is there a sense of better control, better security, or culture? What is it that rises to the top of your mind when you know that you have your IT service management (ITSM) in order, when you have your assets and configuration management data in order. Is it sleeping better at night? Is it a sense of destiny you have fulfilled -- or what?

Thomas: Sleeping better at night. There is an element of that, but there's also sometimes the aspect of, "Now what's next?" So, part of it is that there's an evolutionary aspect too. We've gotten everything in one place. We're leveraging some of the integrations, but then what’s next?

It's more restful. It's now deciding how we better position ourselves to show the value of these platforms. Obviously, there's a clear monetary value of what we did to in-source, but now how do we show the business the value that we have done? Moving to a common set of tools helps to get there. You've leveled the playing field and you have that common set of tools that you're going to drive to take you to the next level.

Gardner: What might that next level be? Is it a cloud transition? Is it more of a hybrid sourcing for IT? Is this enabling you to take advantage of the different devices in terms of mobile? Where does it go?

Automation and cloud

Thomas: A lot of it is really around automation, the intermediate step around cloud. We've looked at cloud. We do have areas where the company has leveraged it. IT is still trying to wrap their heads around how we do it, and then also how we expose that to the rest of the organization.

But the steps we’ve done around automation are very key in making leaner operations, IT operations, but also being able to do things in an automated fashion, as opposed to requiring the manual elements that, in some cases, we had never done prior to the merger.

Gardner: Any examples? You mentioned $15 million in savings, but are there any other metrics of success or key performance indicator (KPI)-level paybacks that you can point to in terms of having all this in place for managing and understanding your IT?

Thomas: We're still going through what it is we're going to measure and present. There's been a standard set of things that we've measured around our availability and our incidents and whether these incidents are caused by IT, by infrastructure.
One of the key things is how you're changing and how you do IT operations.

We've done a lot better operationally. Now it's taking some of those operational aspects and making them a little bit more business-centric. So for the KPIs, we're going through that process of determining what we're going to measure ourselves against.

Gardner: Jason, having gone through quite a big and complex undertaking in getting your ITSM and Application Lifecycle Management (ALM) activities, what comnes next? Maybe a merger and acquisition is going to push you in a new direction.

Thomas: We recently announced the intent to acquire Pepco Holdings, which is the regional utility in Washington, DC area, that further widens our footprint in the mid-Atlantic area. So yeah, we get to do it all over again with a new partner, bringing Pepco in and doing some elements of this again.

Gardner: Having gone through this and anticipating yet another wave, what words of wisdom might you provide in hindsight for those who are embarking on a more automated, streamlined, and modern approach to IT operations?
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Thomas: One of the key things is how you're changing and how you do IT operations. Moving towards automation, tools aside, there's a lot of organizational change if you're changing how people do what they do or changing people's jobs or the perception of that.

You need to be clear. You need to clearly communicate, but you also need to make sure that you have the appropriate support and backing from leadership and that the top-down communication is the same message. We certainly had that, and it was great, but there's alway going to be that challenge of making sure everybody is getting that communication, getting the message, and getting constant reinforcement of that.

Organizational changes resulting from a large merger or acquisition are huge. It's key to show the benefits, even to the people who are obviously going to reap some of these immediate benefits,  those in IT. You know the business is going to see some. It's couching that value in the means or method appropriate for those actors, all of those stakeholders.

Full circle

Gardner: Of course, you have mentioned working through a KPI definition and working the executive scorecard. That makes if full circle, doesn’t it?

Thomas: Defining those KPIs, but also having one place where those KPIs can be viewed, seen easily, and drilled into is big. To date, it's been a challenge to provide some of that historiography around that data. Now, you have something where you can even more readily drill into it to see that data -- and that’s huge.

Presenting that, being able to show it, and being able to show it in a way that people can see it easily, is huge, as opposed to just saying, "Well, here's the spreadsheet with some graphs" or "Here’s a whiz-bang PowerPoint doc."

Gardner: And, Jason, I suppose this points to the fact that IT is really maturing. Compared to other business services and functions in corporations, things that had been evolving for 80 or 100 years, IT is, in a sense, catching up.
Now, you have something where you can even more readily drill into it to see that data -- and that’s huge.

Thomas: It's catching up, but I also think it's more of a reflection. It's reflection of a lot of the themes of the new style of IT. A lot of that is that consumerization aspect. In fact,  if you look at the last 10 years ago, the wide presence of all of these, your smart devices and your smartphones, is huge.

We have brought to most people something that was never easily accessible. And having to take that same aspect and make it part of how you present what you do in IT is huge. You see it in how you're manifesting it in your various service catalogs and some of the efforts that we're undertaking to refine and better the processes that underlie our technical service catalog to have a better presentation layer.

That technical service catalog will refer to what we've seen with Propel. It's an easier, nicer, friendlier way to interact, and people expect that. Why can’t this be more like my app store, or why can't this be more like X.

Is IT catching up or has IT become more reachable, has become more warm and fuzzy as opposed to something that’s cold, hard, and stored away somewhere? You kind of know about it, and perhaps the guys in the basement are the ones who are doing all the heavy lifting, and it's more tangible.

Gardner: Humanization of IT perhaps.

Thomas: Absolutely.

Gardner: All right, one last area I want to get into before we sign off. We've heard quite a bit  about The Machine, HP unveiling more detail from its labs activities. It’s not necessarily on a product roadmap yet, but it’s described through a lower footprint, much more rapid ability to join compute and memory, and then  reduce the size of the data center down to a size of a refrigerator.

I know that it's on the horizon, but how does that strike you, and how interesting is that for you?

Ramp up/ramp down

Thomas: It's interesting, because it allows you to get to bit more ability to ramp up or ramp down, based on what you need, as opposed to you having x amount of servers and x amount of storage that's always somewhere. It gives you a lot more flexibility and, to some extent, gives you a bit more tenability. It's directly applicable to certain aspects of the business, where you need that capability to ramp up and ramp down much more easily.
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I had a conversation with one of my peers about that. We were talking about how both that and the Moonshot aspect and the ability to have that for a lot of the customer-facing websites, and the ability to tie them, in particular, the utility customer-facing websites whose utilization tends to spike during weather events.

While they don't spike all at the same time, there is the potential opportunity in the Mid-Atlantic of all the utilities spiking at the same time around a hurricane or Sandy-esque event. There's obviously a need to able to respond to that kind of demand, and that technology positions you with the flexibility to do that rather quickly and easily.
It gives you a lot more flexibility and, to some extent, gives you a bit more tenability.

Gardner: Well, great. I'm afraid we will have to leave it there. We've been talking with Exelon Corporation, based in Chicago, about their journey towards a better handling of IT and transitions through mergers and acquisitions as a result of having a much deeper sense of their IT operations.

So a big thank you to our guest, Jason Thomas, Manager of Service Asset and Release Management at Exelon. Thank you, sir.

Thomas: Thank you, Dana. My pleasure.

Gardner: And also a big thank you to our audience for joining us for this special new style of IT discussion. I'm Dana Gardner; Principal Analyst at Interarbor Solutions, your host for this ongoing series of HP sponsored discussions. Thanks again for listening, and come back next time.

Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: HP.

Transcript of a BriefingsDirect discussion on how a large utility operation uses HP tools to get better insight into IT operations. Copyright Interarbor Solutions, LLC, 2005-2015. All rights reserved.

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Tuesday, March 17, 2015

Health Shared Services BC Harnesses a Healthcare Ecosystem Using IT Asset Management

Transcript of a BriefingsDirect discussion on how a healthcare organization in Canada has improved process efficiency and standardization.

Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: HP.

Dana Gardner: Hello, and welcome to the next edition of the HP Discover Podcast Series. I'm Dana Gardner, Principal Analyst at Interarbor Solutions, your host and moderator for this ongoing sponsored discussion on technology innovation and how it’s making an impact on people's lives.

Gardner
Once again, we're focusing on how companies are adapting to the new style of IT to improve IT performance and deliver better user experiences, as well as better business results.

Our next innovation case study interview examines how Health Shared Services BC in Vancouver has improved process efficiency and standardization through better integration across health authorities in British Columbia, Canada.

We'll learn how HSSBC has successfully implemented one of the healthcare industry’s first Service Asset and Configuration Management Systems to help them optimize performance of their IT systems and applications.
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To learn more about how HSSBC gains up-to-date single views of IT assets across a shared-services environment, please join me in welcoming our guests, Daniel Lamb, Project Manager for the ITSM Program at HSSBC. Welcome Daniel.

Daniel Lamb: Thank you.

Gardner: We also here with Cam Haley, Program Manager for the same ITSM Program at HSSBC. Welcome, Cam.

Cam Haley: A pleasure to be here.

Gardner: Gentlemen, tell me first about the context of your challenge. You're an organization that's trying to bring efficiency and process improvements across health authorities in British Columbia. What is it about that task that made better IT service management (ITSM) an imperative?

Haley: If you look at the healthcare space, where it is right now within British Columbia, we have the opportunity to look at using our healthcare funding more efficiently and specifically focus on delivering more clinical outcomes for consumers of the services.

Haley
That was one of the main drivers behind the formation of HSSBC, to consolidate some of the key supporting and enabling services into an organization that could deliver a standardized set of service offerings across our health authority clients, so that they can focus on clinical delivery.

That was the key business driver around why we're here and why we are doing some of those things. For us to effectively deliver on that mandate, we need the tools and the process capabilities to be able to effectively deliver more consistent service outcomes, all those things that we want to deliver there, and to look at reducing cost a little long-term so that those cost could be again shifted into clinical delivery and to really enable those outcomes.

Necessary system

Gardner: Daniel, why was a Service Asset and Configuration Management System something that was important to accomplish this?

Lamb: We have been in the process of a large data center migration project over the past three years, moving a lot of the assets out of Vancouver and into a new data center. We standardized on HP infrastructure up in Kamloops and we have -- when we put in all our Health Authorities assets, it's going to be upwards of around probably 6,500-7,000 servers to manage.

Lamb
As we merged to the super organization, the manual processes just don’t exist anymore. To keep those assets up-to-date we needed an automated system. The reason we went for those products, which included the asset side and the configuration service management, is that’s really our business. We're going to be managing all these assets for the organization and all the configuration items, and we are providing these services. So this is where the toolset really fitted our goals.

Gardner: So other than scale, size, and the migration, were there any other requirements or problems that you needed to solve that moving into this more modern ITSM capability delivered?

Haley: Just to build on what Daniel said, one of the key drivers in terms of identifying the toolset and the capabilities was to support the migration of infrastructure into the data center.

But along with that, we provide a set of services that go beyond data center. The tool capability that has been delivered in supporting that outcome enables us to focus on optimizing our processes, getting a better view into what's happening in our own environment. So having the configuration items (CIs) in the configuration management data base (CMDB), having the relationships develop both at the infrastructure level, but all the way up to the application or the business service level.

Now we have a view up and down the stack of what's going on. We get better analytics and better data, and we can make some better decisions as well around where we want to focus. What are the pain points that we need to target? We 're able to mine that stuff and really look at opportunities to optimize.

The tool allows us to standardize our processes and roll out the capabilities. Automation is built into the tool, which is fantastic for us in terms of taking that manual overhead out of that and really just allowing us to focus on other things. So it's been great.

Gardner: Any unexpected benefits, ancillary benefits, that come from the standardization with this visibility, knowing your organization better that maybe you didn't anticipate?

Up-to-date information

Lamb: We've been able to track down everything that’s out there. That’s one thing. We just didn’t know where everything was or what we had. So in terms of being able to forecast to the health authorities, "This is how much you need to part with for maintenance, that sort of thing," that was always a guess in the past. We now have that up-to-date information available.

This has also laid the platform for us to better take advantage of the new technologies that are coming in. So what HP is talking about at the moment, we can’t really take advantage of that, but they have this base platform. It’s going to allow us to take advantage of a lot of the new stuff that’s coming out.

Gardner: So in order to get the efficiency and cost benefits of new infrastructure and converged systems and data center efficiencies, having your ducks lined up and understood is a crucial first step.
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Lamb: Definitely.

Gardner: Looking down the road, what’s piquing your interest in terms of what HP is doing or new developments, or does this now allow you to then progress into other areas that you are interested in?

Lamb: Personally, I'm looking at obviously the new versions of the product sets we have at the moment. We've also been speaking to other customers on the success that we've had and giving them some lessons learned on how things worked.
One of the things that we have been able to do is enable our staff to be more effective at what they're doing.

Then, we're looking at some of other products we could build on to this -- the PPM, which is the Project Management toolset and the BSM, which is unified monitoring and that sort of thing. Being able to put those products on is where we'll start seeing even more value, like in terms of being able to reduce the amount of tickets and support cost and that sort of thing. So we're looking at that.

Then, just ad-hoc interest are the things around the big data and that sort of thing, just trying to get my head around how that works for us, because we have a lot of data. So some of those new technologies are coming out as well.

Gardner: Cam, given what you've already done, what has it gotten for you? What are some of the benefits and results that you have seen. Are there any metrics of success that you can share with us?

Haley: The first thing is that we're still pretty early in our journey out of the gate, if I just talk about what we've already achieved. One of the things that we have been able to do is enable our staff to be more effective at what they're doing.

We've implemented change management in particular within the toolset, and that’s giving us a more robust set of controls around what's actually happening and what’s actually going into the environment. That's been really important, not only for the staff, although there is bit of a learning curve around that, but in terms of the outcomes for our clients.

Comfort level

They have a higher comfort level that we have more insight or oversight into what’s actually happening in space and we are actually protecting the services that they need to deliver by putting those kinds of capabilities in. So from the process perspective, we've certainly been able to get some benefits in that area in particular.

From a client perspective, it's putting the toolset in it. It helps us develop that level of trust that we really need in order to have an effective partnering relationship with our clients. That’s something that hasn’t always been there in the past.

I'm not saying that we're all the way there yet, but we're starting to show that we can deliver the services that the health authorities expect us to deliver, and we are using the toolset to help enable that. That’s also an important aspect.

The other thing is that through the work we've done in terms of consolidating some of our contracts, maintenance agreements, and so on into our asset management system, we have a better view of what we're paying for. We've already realized some opportunities to consolidate some contracts and show some savings as well.
It helps us develop that level of trust that we really need in order to have an effective partnering relationship with our clients.

That's just a number of areas where we're already seeing some benefits. As we start to roll out more of the capabilities of the tool in the coming year and beyond that, we expect that we will get some of those standard metrics that you would typically get out of it. Of course, we'll continue to drive out the ROI value as well. So we're already a good way down that path, and we'll just continue to do that.

Gardner: Any words of wisdom, based on your journey so far, for other organizations that might be struggling with spreadsheets and tracking all of their assets and all of their devices and even the processes around IT support? What have you learned. What could you share to someone who is just starting out?

Lamb: We had a few key lessons that we spoke about. One was the guiding principles that you are going to do the implementation by. We were very much of the approach that we would try to keep things as out-of-the-box as possible. HP, as they are doing the new releases, would pick up the functionality that we are looking for. So we didn’t do a lot of tailoring.

And we did the project in a short cycle. These projects can go on for years sometimes, and a lot of money can get sunk and there isn’t value gained sometimes. We said, "Let’s do these in more short sprint projects. We'll get something in, we'll start showing value to the organization, then we'll get into another thing." That’s the cycle that we're working in, and that's worked really well.

The other thing is that we had a great consultant partner that we worked with, and that was key. We were feeling a little lost when we came here last year, and that was one of the things we did. We went to a good consultant partner, and that helped us.

Gardner: And who was that consultant partner?

Lamb: Effectual Systems from San Francisco.

Gardner: Well, great. I'm afraid we will have to leave it there. We have been learning about how Health Shared Services BC in Vancouver has been gaining an up-to-date single view of their IT assets across a shared services environment.
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So a huge thank you to our guests, Daniel Lamb, Project Manager for the ITSM Program, and Cam Haley, Program Manager for the ITSM Program, both at HSSBC.

And a big thank you to our audience as well for joining us for this special new style of IT discussion. I'm Dana Gartner, Principal Analyst at Interarbor Solutions, your host for this ongoing series of HP-sponsored discussions. Thanks again for listening, and come back next time.

Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: HP.

Transcript of a BriefingsDirect discussion on how a healthcare organization in Canada has improved process efficiency and standardization. Copyright Interarbor Solutions, LLC, 2005-2015. All rights reserved.

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Wednesday, February 18, 2015

Mexican ISP Telum Gains Operational ITSM Advantages Via Identifying and Monitoring of Vast Network Elements

Transcript of a BriefingsDirect discussion on how Mexican ISP Telum leverages HP ITSM tools to deliver better quality and reliability across a carrier-grade network.

Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: HP.

Dana Gardner: Hello, and welcome to the next edition of the HP Discover Podcast Series. I’m Dana Gardner, Principal Analyst at Interarbor Solutions, your host and moderator for this ongoing sponsored discussion on IT innovation and how it’s making an impact on people’s lives.

Gardner
Once again, we're focusing on how companies are adapting to the new style of IT to improve IT performance and deliver better user experiences, as well as better business results.

This time, we're coming to you directly from the recent HP Discover 2014 Conference in Las Vegas. We're here to learn directly from IT and business leaders alike how big data, cloud, and converged infrastructure implementations are supporting their goals.

Our next innovation case-study interview highlights how Telum in Northeast Mexico improves their reliability through quality assurance and higher availability using software. To help us learn more about how they do that we are joined by Max Garza O'Ward, Head of IT Operations at Telum, an ISP based in Monterrey, Mexico. Welcome.
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Max Garza O'Ward: Thank you, Dana.

Gardner: Good to have you with us. First, tell me why reliability and high performance are so important to your business?

O'Ward: It’s a very competitive business for the telecommunications industry. We're not the top dog in Mexico or Northeast Mexico. Everything that we put into our customer effort is to bring in customers that we need to keep. So reliability is a key part of our commitment to our customers.

Gardner: And you're not just using technology. You're delivering technology. So it seems essential to have a handle on what you have, what it's doing, and maybe even get out in front and have predictive capabilities when problems might arise.

O'Ward: That’s very true. Prediction is where we need to focus. To ensure good services we need to make sure that all those systems are up and running, and we use software to precisely do that.

Gardner: For our listeners who might not be familiar with your organization, tell us about your size, how many subscribers, how many services. Just give us a description of your organization, both in terms of the breadth of services and the size of your audience?

O'Ward: We're part of the Northeast Mexico market, basically Monterrey, which is the biggest city up north. We have three different customer markets. The residential market is roughly over 500,000 customers. We have small business or SOHO businesses, with between 3,000 and 6,000 customers. And we also have a large enterprise market, around 1,500 large enterprises.

Unwieldy network

Gardner: Let’s dig a little bit into the problems that you face. Several years ago, you were looking at a network that was perhaps a bit unwieldy, maybe not well-defined. You had some difficulties predicting how certain things that you did on your network would impact your customers. Perhaps you can walk us through your problem set, your challenges, and then how you started to solve them.

O'Ward
O'Ward: That’s a very good approach. In terms of network, we basically started noticing that we were committing a lot of unplanned outages, or unplanned downtimes. So we started to reinforce our monitoring solutions based on HP software. We came in and provided better solutions to what we were looking into as a network element point of view.

Based on that, we refurbished our inventory and made sure that all of our network elements were replaced promptly, based on events. So prediction was key to our better service-level agreement (SLA) offerings.

Gardner: Max, was this a function of changing just the software or was there a cultural component to this? Did you have to change the way you were thinking about monitoring and quality assurance in addition to employing some new technology?

O'Ward: Yes, it was a cultural change. As a matter of fact, just two years ago, we revamped the way the operations department is composed. So a big gap that was closed because of culture. Culture needed to be changed.

Previously, we had all these disparate teams working on only their solution. Once we came under one head of operations, we decided that service was the only thing that matters. So we bridged that gap and now we have all these cross-functional teams working for the same response, which is service offerings.
Now, it's a combination of culture, teamwork, and understanding where the failures are.

Gardner: So IT service management (ITSM) has led to the ability to maintain your quality and performance. Are there any indicators of how much -- perhaps the number of failures from one period to more recent failures?

O'Ward: There are a lot of numbers. I will give you top figures. IT is the department that I head, and most of these departments are based on different engineering groups.

When we started working toward service and focusing only on services, on video services, for example, we had over 10 percent failures globally, not every month, but throughout the year. Once we got under this new management and using our new HP tools, we have been bringing that number down consistently.

Now, it's a combination of culture, teamwork, and understanding where the failures are. Sometimes software tells us where the problem is and sometimes software is needed to understand where the problem is.

In this particular case, we soon understood what the problem was and we decided to change out equipment that was failing via either obsolescence or just a defective part.

Transparency and visibility

Gardner: In addition to changing culture, putting in some better processes and better tools, it seems to me that for a lot of companies that I speak to, a lot of the process involves getting to know yourself better, providing transparency and visibility.

Then, it's dashboarding that information so that people can access it, regardless of whether it’s firefighting or just ongoing maintenance. Tell me about this journey from having a lot of elements, perhaps not always visible, to getting this new-found ability to have greater inventory control.

O'Ward: To start off, transparency is key. Once you have an approach of letting the upper management know where your failures are, that creates concern. And in order for us to create business, we need to have a reputation to uphold.

We started with monitoring basic monitoring elements. We created awareness of where our failures were, and at the same time, we asked for more budget to focus on all these defective parts.
What secrets will your data tell you?
In the HP Toolkit for Operations Analytics
That, in turn, made management very aware of what the engineering departments were actually doing -- either as an IT department or as engineering by itself, which is basically hardware.

Once we had all these components, and they were publicly scrutinized or they were publicly shown in a quarterly meeting, that helped create a dashboard. Now, dashboards are really fun if you really know what you're talking about, but if you give upper management the wrong information, wrong decisions are going to be made. So that’s key.

We're working on creating a huge dashboard. Maybe this year is going to be the year. We have the elements and we're providing that information for the dashboard to be built, but we are waiting to do the next step.

Right now, we're focused on getting the elements straightened out, monitoring all of our key systems, and we have done just that in the last year. So we've upheld our end of the bargain, which is service, quality, and capacity. The next step is going to be providing automatic dashboards. Right now, dashboards are manual.

Gardner: So the good news is that you're getting much more reliable information about what's going on. The bad news is, is you have got a whole lot of information coming in.

O'Ward: That's correct.

Aligning data

Gardner: Big data is a big topic here at HP Discover. What are your thoughts about how to get that data, be it structured or unstructured, into an alignment so that you can improve on your situation, know more about it, get better predictions, and better analysis? I suppose the capstone for this is how important will big data become for you to maintain and improve on your reliability over time.

O'Ward: Big data is a big name, it’s a big trend, and everybody is talking about it. A lot of people, especially people who aren't technology-oriented, talk about it as if if they know it. The way big data is coming into our shop is focused more on customers.

If we're talking about big data, unstructured data, that’s coming in from our traps or alerts and stuff like that. Yes, we need to go into that particular scenario. We're looking at two different projects.

We're going to look into a big-data project that actually brings capacity and quality for our services. At the same time, there's going to be another effort from big data that is a customer-facing effort. So yes, it’s going to be a reality in the next year.
The software is awesome, just great software, and if you have the right people and the right potential, that software can bring you very good benefits.

Gardner: So it’s safe to say that big data is going to have an impact on your IT operations, but perhaps also in your marketing, to understand what’s going on in the field very quickly and then be able to react to it. Big data sort of ties together business and technology.

O'Ward: That's correct. That’s the way we're looking at it. As I said, there are two different teams of people working on it. We're going to be working on the operations part first and then at the marketing part as well.

Gardner: We're here at the beginning of HP Discover. Are there any things in particular that you're going to be out there looking for in terms of how to accomplish your goals over the next several years. What would you like to see HP doing?

O’Ward: Very much what they have been doing in the past. The software is awesome, just great software, and if you have the right people and the right potential, that software can bring you very good benefits.

Our head of operations for the whole company is here with us this week. I'm going to make sure he attends all these meeting in which we can talk about big data and how we can mold out all of the strengths and all of the key performance indicators (KPIs) that he needs. I hope that HP continues to be an innovative software company. I have really enjoyed working with them for the last five or six years.

Gardner: Okay, last question. Going from a failure rate of 5-10 percent down to less than 1 percent is enviable. A lot of people want to make those kinds of strides. Now that you have had experience in doing this, do you have any 20/20 hindsight? What would you suggest to other organizations that are also trying to get a better handle on their systems and their network, get to know their inventory, and gain visibility? What have you learned that you might share now that you have been through it?

O'Ward: It doesn't matter how much we monitor things or how many green lights or red lights we see on any given dashboard. If we're not focused on business processes and business outcomes, this isn't going to work.

My take would be to focus on a business process that you actually know it's critical and start from that. Go top-down from that. That would be the best approach. It's worked for us. It actually bridges a gap between management and the engineering departments. It also provided us with sound budgeting information. Once you understand what the problem really is, it gets approved easier.

So look at business processes first, get to know your business outcomes, and work on that toward your infrastructure.
What secrets will your data tell you?
In the HP Toolkit for Operations Analytics
Gardner: Excellent. I'm afraid we will have to leave it there. We've been learning about how Telum has been improving on their reliability via software quality assurance and delivering much higher availability and performance to their end users.

Please join me in thanking our guest, Max Garza O’Ward, Head of IT Operations at Telum. Thank you.

O'Ward: Thank you, Dana.

Gardner: And thanks also to our audience as well for joining us for this special new style of IT discussion, coming to you directly from the recent HP Discover 2014 Conference. I'm Dana Gardner, Principal Analyst at Interarbor Solutions, your host for this ongoing series of HP-sponsored discussions. Thanks again for listening, and come back next time.

Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: HP.

Transcript of a BriefingsDirect discussion on how Mexican ISP Telum leverages HP ITSM tools to deliver better quality and reliability across a carrier-grade network. Copyright Interarbor Solutions, LLC, 2005-2015. All rights reserved.

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Wednesday, October 22, 2014

A Practical Guide to Rapid IT Service Management as a Foundation for Overall Business Agility

Transcript of a Briefings Direct podcast on how enterprises can benefit from the newest IT service management methods and procedures.

Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: HP.

Dana Gardner: Hi, this is Dana Gardner, Principal Analyst at Interarbor Solutions, and you're listening to BriefingsDirect. Today, we present a sponsored podcast panel discussion on how rapidly advancing IT service management (ITSM) capabilities form an IT imperative, and therefore a bedrock business necessity.

Gardner
Businesses of all stripes rate the need to move faster as a top priority, and many times, that translates into the need for better and faster IT projects. But traditional IT processes and disjointed project management don't easily afford rapid, agile, and adaptive IT innovation.

The good news is that a new wave of ITSM technologies and methods allow for a more rapid ITSM adoption -- and that means better rapid support of agile business processes.

To help us explore a practical guide to fast ITSM adoption as a foundation for overall business agility, please join me in welcoming our panel, John Stagaman, Principal Consultant at Advanced MarketPlace based in Tampa, Florida. Welcome, John.

John Stagaman: Hello.

Gardner: We're also here with Philipp Koch, Managing Director of InovaPrime, Denmark. Welcome, Philipp.

Philipp Koch: Thanks.

Gardner: And lastly, we are here with Erik Engstrom, the CEO of Effectual Systems in Berkeley, California. Welcome, Erik.

Erik Engstrom: Good morning, Dana. Glad to be here.
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Gardner: John Stagaman, let me start with you. We hear a lot, of course, about the faster pace of business, and cloud and software as a service (SaaS) are part of that. What, in your mind, are the underlying trend or trends that are forcing IT's hand to think differently, behave differently, and to be more responsive?

Stagaman: If we think back to the typical IT management project historically, what happened was that, very often, you would buy a product. You would have your requirements and you would spend a year or more tailoring and customizing that product to meet your internal vision of how it should work. At the end of that, it may not have resembled the product you bought. It may not have worked that well, but it met all the stakeholders’ requirements and roles, and it took a long time to deploy.

Stagaman
That level of customization and tailoring resulted in a system that was hard to maintain, hard to support, and especially hard to upgrade, if you had to move to a new version of that product down the line. So when you came to a point where you had to upgrade, because your current version was being retired or for some other reason, the cost of maintenance and upgrade was also huge.

It was a lesson learned by IT organizations. Today, saying that it will take a year to upgrade, or it will take six months to upgrade, really gets a response. Why should it? There's been a change in the way it’s approached with most of the customers we go on-site to now. Customers say we want to use out of box, it used to be, we want to use out of box, and sometimes it still happens that they say, and here’s all the things we want that are not out of box.

But they've gotten much better at saying they want to start from out of box, leverage that, and then fill in the gaps, so that they can deploy more quickly. They're not opening the box, throwing it away, and building something new. By working on that application foundation and extending where necessary, it makes support easier and it makes the upgrade path to future versions easier.

Moving faster

Gardner: It sounds like moving toward things like commodity hardware and open-source projects and using what you can get as is, is part of this ability to move faster. But is it the need to move faster that’s driving this or the ability to reduce customization? Is it a chicken and egg? How does that shape up?

Engstrom: I think that the old use case of "design, customize, and implement" is being forced out as an acceptable approach, because SaaS, platform as a service (PaaS), and the cloud are driving the ability for stakeholders. Stakeholders are retiring, and fresher sets of technologies and experiences are coming in. These two- and three-year standup projects are not acceptable.

Engstrom
If you're not able to do fast time-to-value, you're not going to get funding. Funding isn’t in the $8 million and $10 million tranches anymore; it’s in the $200,000 and $300,000 tranche. This is having a direct effect on on-premise tools, the way the customers are planning, and OPEX versus CAPEX.

Gardner: Philipp, how do you come down on this? Is this about doing less customization or doing customization later in the process and, therefore, more quickly?

Koch: I don't think it's about the customization element in itself. It is actually more that, in the past, customers reacted. They said they wanted to tailor the tool, but then they said they wanted this and they took the software off the shelf and started to rebuild it.

Now with the SaaS tool offerings coming into play, you can’t do that anymore. You can't build your ITSM solution from scratch. You want be able to take it according to use case and adjust it with customization or configuration. You don’t want to be able to tailor.

Koch
But customization happens while you deploy the project and that has to happen in a faster way. I can only concur with all the other things that have already been said. We don't have huge budgets anymore. IT, as such, never had huge budgets, but, in the past, it was accepted that a project like this took a long time to do. Nowadays, we want to have implementations of weeks. We don’t want to have implementations of months anymore.

Gardner: Let’s just unpack a little bit the relationship between ITSM and IT agility. Obviously, we want things to move quickly and be more predictable, but what is it about moving to ITSM rapidly that benefits? And I know this is rather basic, but I think we need to do it just for all the types of listeners we have.

Back to you, John. Explain and unpack what we mean by rapid ITSM as a means to better IT performance and rapid management of projects.

Best practices

Stagaman: For an organization that is new to ITSM processes, starting with a foundational approach and moving in with an out-of-box build helps them align with best practice and can be a lot faster than if they try to develop from scratch. SaaS is a model for that, because with SaaS you're essentially saying you're going to use this standard package.

The standard package is strong, and there's more leverage to use that. We had a federal customer that, based on best practice, reorganized how they did all their service levels. Those service levels were aligned with services that allowed them, for the first time, to report to their consuming bureaus the service levels per application that those bureaus subscribed to. They were able to provide much more meaningful reporting.

They wouldn’t have done that necessarily if the model didn't point in that direction. Previously, they hadn't organized their infrastructure along the lines to say, "We provide these application services to our customer."

Gardner: Erik, how do see the relationship between rapid and better ITSM and better IT overall performance? Are there many people struggle with this relationship?

Engstrom: Our approach at Effectual, what we focus on, is the accountability of data and the ability for an organization to reduce waste through using good data. We're not service [process] management experts, in that we are going to define a best practice; we are strictly on “here is the best piece of data everyone on your team is working [with] across all tools.” In that way, what our customers are able to see is transparency. So data from one system is available on another system.
Those kinds of mistakes are reduced when you share across tools. So that’s our focus and that’s where we're seeing benefit.

What that means is that you see a lot more reduction in types of servers that are being taken offline when they're the wrong server. We had a customer bring down their [whole] retail zone of systems that the same team had just stood up the week before. Because of the data being good, and the fact they were using out-of-the-box features, they were able to reduce mistakes and business impact they otherwise would not have seen.

Had they stayed with one tool or one silo of data, it’s only one source of opinion. Those kinds of mistakes are reduced when you share across tools. So that’s our focus and that’s where we're seeing benefit.

Gardner: Philipp, can you tell us why rapid ITSM has a powerful effect here in the market? But, before we get into that and how to do it, why is rapid ITSM so important now?

Koch: What we're seeing in our market is that customers are demanding service like they're getting at home at the end of the day. This sounds a little bit cliché-like, but they would like to get something ordered on the Internet, have it delivered 10 minutes later, and working half an hour later.

If we're talking about doing a classical waterfall approach to projects as was done 5 or 10  years ago, we're talking about months, and that’s not what the customer wants.

IT is delivering that. In a lot of organizations, IT is still fairly slow in delivering bigger projects, and ITSM is considered a bigger project. We're seeing a lot of shadow IT appearing, where business units who are demanding that agility are not getting it from IT, So they're doing it themselves, and then we have a big problem.

Counter the trend

With rapid ITSM, we can actually counter that trend. We can go in and give our customers what's needed to be able to please the business demand of getting something fast. By fast, we're talking about weeks now. We're of course not talking 10 minutes in project sizes of an ITSM implementation, but we can do something where we're deploying a SaaS solution.

We can have it ready for production after a week or two and get it into use. Before, when we did on-premise or when we did tailoring from scratch, we were talking months. That’s a huge business advantage or business benefit of being able to deliver what the business units are asking for.

Gardner: John Stagaman, what holds back successful rapid ITSM approach? What hinders speed, why has it been months rather than days typically?

Stagaman: Erik referenced one thing already. It has to do with the quality of source data when you go to build a system. One thing that I've run into numerous times is that there is often an assumption that finding all the canonical sources of data for just the general information that you need to drive your IT system is already available and it’s easy to populate. By that I mean things like, what are our locations, what are our departments, who are our people?
The other major thing that I run into that introduces risks into a project is when requirements aren't really requirements.

I'm not even getting to the point of asking what are our configuration items and how are they related? A lot of times, the company doesn't have a good way to even identify who a person is uniquely over time, because they use something with their name. They get married, it changes, and all of a sudden that’s not a persistent ID.

One thing we address early is making sure that we identify those gold sources of data for who and what, for all the factual data that has to be loaded to support the process.

The other major thing that I run into that introduces risks into a project is when requirements aren't really requirements. A lot of times, when we get requirements, it’s a bunch of design statements. Those design statements are about how they want to do this in the tool. Very often, it’s based on how the tool we're replacing worked.

If you don't go through those and say that this is the statement of design and not a statement of functional requirement and ask what is it that they need to do, it makes it very hard to look at the new tools you're deploying to say that this new tool does that this way. It can lead to excess customization, because you're trying to meet a goal that isn’t consistent with how your new product works.

Those are two things we usually do very early on, where we have to quality check the requirements, but those are also the two things that most often will cause a project to extend or derail.

Gardner: Philipp, any thoughts on problems, hurdles, why poor data quality or incomplete configuration management and data? What is it, from your perspective, that hold things back?

Old approach

Koch: I agree with what John says. That’s definitely something that we see when we meet customers.

Other areas that I see are more towards the execution of the projects itself. Quite often, customers know what agile is, but they don’t understand it. They say they're doing something in an agile way. Then, they show us a drawing that has a circle on it and then they think they are agile.

When you start to actually work with them, they're still in the old waterfall approach of stage gates, and milestones.

So, you're trying to do rapid ITSM implementation that follows agile principles, but you're getting stuck by internal unawareness or misunderstanding what this really means. Therefore, you're struggling with doing an agile implementation, and they become non-agile by doing this. That, of course, delays projects.

Quite often, we see that. So in the beginning of the projects, we try to have a workshop or try to get the people to understand what it really means to do an agile project implementation for an ITSM project. That’s one angle.
They should be asking whether it's easy to tailor the solution. It doesn’t really matter how.

The other angle, which I also see quite often, goes into the area of the requirements, the way John had described them. Quite often, those requirements are really features, as in they are hidden features that the customer wants. They are turned into some sort of requirements to achieve that feature. But very seldom do we see something that actually addresses the business problem.

They should not really care if you can right-click in the background and add a new field to this format. That’s not what they should be asking for. They should be asking whether it's easy to tailor the solution. It doesn’t really matter how. So that’s where quite often you're spending a lot of time reading those requirements and then readjusting them to match what you really should be talking about. That, of course, delays projects.

In a nutshell, we technology guys, who work with this on a daily basis, could actually deliver projects faster if we could manage to get the customers to accept the speed that we deliver. I see that as a problem.

Gardner: So being real about agile, having better data, knowing more about what your services are and responding to them are all part of overcoming the inertia and the old traditional approaches. Let’s look more deeply into what makes a big difference as a solution in practice.

Erik Engstrom, what helps get agile into practice? How are we able to overcome the drawbacks of over-customization and the more linear approach? Do you have any thoughts about moving towards a solution?

Maturity and integration

Engstrom: Our approach is to provide as much maturity, and as complete an integration as possible, on day one. We've developed a huge amount of libraries of different packages that do things such as to advance the tuning of a part of a tool, or to advance the integration between tools. Those represent thousands of hours that can be saved for the customer. So we start a project with capabilities that most projects would arrive at.

This allows the customer to be agile from day one. But it requires that mentality that both Philipp and John were speaking about, which is, if there’s a holdout in the room that says “this is the way you want things,” you can’t really work with the tools the way that they [actually] do work. These tools have a lot of money and history behind them, but one person’s vision of how the tools should work can derail everything.

We ask customers to take a look at an interoperable functioning matured system once we have turned the lights on, and have the data moving through the system. Then they can start to see what they can really do.

It’s a shift in thinking that we have covered well over the last few minutes, so I won't go into it. But it's really a position of strength for them to say, "We've implemented, we’ve integrated. Now, where do we really want to go with this amazing solution?
So the faster we can help customers start to see a working system with their data, the easier it is to start to move and maintain an agile approach.

Gardner: What is it about the new toolset that’s allowing this improvement, the pre-customization approach? How does the technology come to bear on what’s really a very process-centric endeavor?

Engstrom: There are certain implementation steps that every customer, every project, must undergo. It’s that repetition that we're trying to remove from the picture. It’s the struggle of how to help an organization start to understand what the tools can do. What does it really look like when people, party, location, and configuration information is on hand? Customers can’t visualize it.

So the faster we can help customers start to see a working system with their data, the easier it is to start to move and maintain an agile approach. You start to say, "Let’s keep this down to a couple of weeks of work. Let us show it to you. Let’s visit it."

If we're faster as consultancies, if we're not taking six months, if we're not taking two months and we can solve these things, they'll start to follow our lead. That’s essential. That momentum has to be maintained through the whole project to really deliver fast.

Gardner: John Stagaman, thoughts about moving fast, first as consultants, but then also leveraging the toolsets? What’s better about the technology now that, in a sense, changes this game too?

Very different

Stagaman: In the ITSM space, the maturity of the product out of box, versus 10 years ago, is very different.  Ten or 15 years ago, the expectation was that you were going to customize the whole thing.

There would be all these options that were there so you could demo them, but they weren’t necessarily built in a cohesive way. Today, the tools are built in different ways so that it's much closer to usable and deployable right out of the box.

The newest versions of those tools very often have done a much better job of creating broadly applicable process flow, so that you can use that same out of the box workflow if you're a retailer, a utility, or want to do some things for the HR call center without significant change to the core workflow. You might need to have the specific data fields related to your organization.

And, there's more. We can start from this ITSM framework that’s embedded and extend  it where we need to.

Gardner: Philipp, thoughts about what’s new and interesting about tools, and even the SaaS approach to ITSM, that drives, from the technology perspective, better results in ITSM?
If you’re looking at ITSM solutions today, they're web based. They're Web 2.0 technology, HTML5, and responsive UIs.

Koch: I'll concur with John and Erik that the tools have changed drastically. When I started in this business 10 or 15 years ago, it was almost like the green screens of computers that slide through when you look for the ITSM solution.

If you’re looking at ITSM solutions today, they're web based. They're Web 2.0 technology, HTML5, and responsive UIs. It doesn’t really matter which device you use anymore, mobile phone, tablet, desktop, or laptop. You have one solution that looks the same across all devices. A few years ago, you had to install a new server to be able to run a mobile client, if it even existed.

So, the demand has been huge for vendors to deliver upon what the need is today. That has drastically changed in regards to technology, because technology nowadays allows us, and allows the vendors, to deliver up on how it should be.

We want Facebook. We want to Tweet. We want an Amazon- or a Google-like behavior, because that’s what we get everywhere else. We want that in our IT tools as well, and we're starting to see that coming into our IT tools.

In the past we had rule sets, objects, and conditions towards objects, but it wasn’t really a workflow engine. Nowadays, SaaS solutions, as well as on-premise solutions, have workflow engines that can be adjusted and tailored according to the business needs.

No difference

You’re relying on a best practice. An incident management process flow is an incident management process flow. There really is no difference no matter which vendor you go to, they all look the same, because they should. There is a best practice out there or a good practice out there. So they should look the same.

The only adjustments that customers will have to do is to add on that 10-20 percent that is customer-specific with a new field or a specific approval that needs to be put in between. That can be done with minimal effort when you have workflow engine.

Looking at this from a SaaS perspective, you want this off the shelf. You want to be able to subscribe to this on the Internet and adjust it in the evening, so when you come back the next day and go to work, it's already embedded in the production environment. That's what customers want.

Gardner: Now if we’ve gotten a better UI and we're more ubiquitous with who can access the ITSM and how, maybe we've also muddied the waters about that data, having it in a single place or easily consolidated. Let’s go back to Erik, given that you are having emphasis on the data.
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When we look at a new-generation ITSM solution and practice, how do we assure that the data integrity remains strong and that we don't lose control, given that we're going across peers of devices and across a cloud and SaaS implementations? How do we keep that data whole and central and then leverage it for better outcomes?

Engstrom: The concept of services and the way that service management is done is really around services. If we think about ITIL and the structure of ITIL [without getting into too many acronyms] the ability to take Services, Assets, and Configuration Management information, [and to have] all of that be consistent, it needs to be the same.

A platform that doesn't have really good bidirectional working data integrations with things like your asset tool or your DCIM tool or your UCMDB tool or your – wherever it is your data is coming from-- the data needs to be a primary focus for the future.

Because we're talking about a system [UCMDB] that can not only discover things and manage computers, but what about the Internet of Things? What about cloud scenarios, where things are moving so quickly that traditional methods of managing information whether it would be a spreadsheet or even a daily automated discovery, will not support the service-management mission?

It's very important, first of all, that all of the data be represented. Historically, we’ve not been able to do that because of performance. We've not been able to do that because of complexities. So that’s the implementation gap that we focus on, dropping in and making all of the stuff work seamlessly.

Same information

The benefit to that is that you’re operating as an organization on the same piece of information, no matter how it’s consumed or where it’s consumed. Your asset management folks would open their HP IT Asset Manager, see the same information that is shown downstream at Service Manager. When you model an application or service, it’s the same information, the same CI managed with UCMDB, that keeps the entire organization accountable. You can see the entire workflow through it.

If you have the ability to bridge data, if you have multiple tools taking the best of that information, making it an inherent automated part of service management, means that you can do things like Incident and Change, and Service Asset and Configuration Management (SACM) and roll up the costs of these tickets, and really get to the core of being efficient in service management.

Gardner: John Stagaman, if we have rapid ITSM multiple device ease of interface, but we also now have more of this drive towards the common data shared across these different systems, it seems to me that that leads to even greater paybacks. Perhaps it's in the form of security. Perhaps it's in a policy-driven approach to service management and service delivery.

Any thoughts about ancillary or future benefits you get when you do ITSM well and then you have that quality of data in mind that is extended and kept consistent across these different approaches?
The ability to know what’s connected to your network can identify failure points and chokepoints or risks of failure in that infrastructure.

Stagaman: Part of it comes to the central role of CMDB and the universality of that data. CMDB drives asset management. It can drive ITSM and the ability to start defining models and standards and compare your live infrastructure to those models for compliance along with discovery.

The ability to know what’s connected to your network can identify failure points and chokepoints or risks of failure in that infrastructure. Rather than being reactive, "Oh, this node went down. We have to address this," you can start anticipating potential failures and build redundancy. Your possibility of outage can be significantly reduced, and you can build that CMDB and build the intelligence in, so that you can simulate what would happen if these nodes or these components went down. What's the impact of that?

You can see that when you go to build, do a change, that level of integration with CMDB data lets you see well, if we have a change and we have an outage for these servers, what's the impact on the end user due to the cascading effect of those outages through the related devices and services so that you can really say, well, if we bring this down, we were good, but oh, at the same time we have another change modifying this and with those together coming down we may interrupt service to online banking and we need to schedule those at different times.

The latest update we're seeing is the ability to put really strict controls on the fact that this change will potentially impact this system or service and based on our business rules that say that this service can only be down during these times or may not be down at that time. We can even identify that time period conflict in an automated way and require additional process approvals for that to go forward at that time or require a reschedule.

Gardner: Philipp, any thoughts on this notion of predictive benefits from a good ITSM and good data, and perhaps even this notion of an algorithmic approach to services, delivery, and management?

Federation approach

Koch: It actually nicely fits into one of our reference installations, where that integration that Erik also talked about of having the data and utilize the data in a kind of on-the-fly federation approach. You can no longer wait to have a daily batch job to run. You need to have it at your fingertips. I can take an example from an Active Directory integration where we utilized all the data from active directory to allocate roles and rights and access inside HP Service Manager.

We've made a high-level analysis of how much we actually save by doing this. By doing that integration and utilizing that information, we say that we have an 80 percent reduction of manual labor done inside service manager for user administration.

Instead of having a technician to have to go into service manager to allocate the role, or to allocate rights, to a new employee who needs access to HP Service Manager, you actually get it automatic from Active Directory when the user logs in. The only thing that has to be done is for HR to say where this user sits, and that happens no matter what.

We've drastically reduced the amount of time spent there. There's a tangible angle there, where you can save a lot of time and a lot of money, mainly with regards to human effort.
With big-data analytics, you'll be able to see that that manual change model is used often and it could be easily automated.

The second angle that you touched on is smart analytics, as we can call it as well, in the new solutions that we now have. It's cool to see, and we now need to see where it's going in the future and see how much further we can go with this. We can do smart analytics on utilizing all the data of the solutions. So you're using the buzzword big data.

If we go in and analyze everything that's happening to a change-management area, we now have KPIs that can tell me -- this an old KPI as such -- that 48 percent of your change records have an element of automation inside the change execution. You have the KPI of how much you're automating in change management.

With smart analytics on top of that, you can get feedback in your KPI dashboard that says you have 48 percent. That’s nice, but below that you see if you enhance those two change models as well and automate them, you'll get an additional 10 percent of automation on your KPI.

With big-data analytics, you'll be able to see that manual change model is used often and it could be easily automated. That is the area that is so underutilized in using such analytics to go and focus on the areas that actually really make a difference and to be able to see that on a dashboard for a change manager or somebody who is responsible for the process.

That really sticks into your eye and says “Well, if I spend half an hour here, making this change model better, then I am going to save a lot more time, because I am automating 10 percent more." That is extremely powerful. Now just extrapolating that to the rest of the processes, that’s the future.

Gardner: Well Erik, we've heard both John and Philipp describe intelligent ITSM. Do you have any examples where some of your customers are also exploring this new level of benefit?

Success story

Engstrom: Absolutely. Health Shared Services British Columbia (HSSBC) will be releasing a success story through HP shortly, probably in the next few weeks. In that case, it was a five-week implementation where we dropped in our packages for Asset Management (ITAM), Service Management (ITSM), and Executive Scorecard, which are all HP products.

We even used Business Service Management (BSM), but the thinking behind this was that this is a service-management project. It’s all about uniting different health agencies in British Columbia under one shared service.

The configuration information is there. The asset information is there, right down to purchase orders, maintenance contracts, all of the parties, all of the organizations. The customer was able to identify all of their business services. This was all built in, normalized in CMDB, and then pushed into ITSM.

With this capability, they're able to see across these various organizations that roll-up in the shared service, who the parties are, because people opening tickets don’t work with those folks. They're in different organizations. They don’t have relevant information about what services are impacted. They don't have relevant information about who is the actual cost center or their budget. All that kind of stuff that becomes important in a shared service.
The customer was able to identify all of their business services. This was all built in, normalized in CMDB, and then pushed into ITSM.

This customer, from week six to their go-live day had the ability see, what is allocated in assets, what is allocated in terms of maintenance and support, and this is the selected service that the ticket, incident, or change is being created upon.

They understood the impact for the organization as a result of having what we call a Configuration Management System (CMS), having all of these things working together. So it is possible. It gives you very high-level control, particularly when you put it into something like Executive Scorecard, to see where things are taking longer, how they're taking longer, and what's costing more.

More importantly, in a highly virtual environment, they can see whether they're oversubscribed, whether they have their budgeted amount of ESX servers, or whether they have the right number of assets that are playing a part in service delivery. They can see the cost of every task, because it's tied to a person, a business service, and an organization.

They started with a capability to do SACM, and this is what this case is really about. It plays into everything that we've talked about in this call. It's agile and it is out-of-the-box. They're using features from all of these tools that are out-of-the-box, and they're using a solution to help them implement faster.

They can see what we call “total efficiency of cost.” What am I spending, but really how is it being spent and how efficient is it? They can see across the whole lifecycle of service management. It’s beautiful.

Future trends

Gardner: It’s impressive. What is it about the future trends that we can now see or have a good sense of how the events fold that makes rapid ITSM adoption, this common data, and this intelligent ITSM approach, all so important?

I'm thinking perhaps the addition of mobile tier and extensibility out through new networks. I'm thinking about DevOps and trying to coordinate a rapid-development approach with operations and making that seamless.

We're hearing a lot about containers these days as well. I'm also thinking about hybrid cloud, where there's a mixture of services, a mixture of hosting options, and not just static but dynamic, moving across these boundaries.

So, let's go down the list, as this would be our last question for today. John Stagaman, what is it about some of these future trends that will make ITSM even more impactful, even more important?

Stagaman: One of the big shifts that we're starting to see in self-service is the idea that you want to enable a customer to resolve their own issue in as many cases as possible. What you can see in the newest release of that product is the ability for them to search for a solution and start a chat.
The other thing that we're seeing is the ability to bridge between on-premises system and SaaS solution.

When they ask a question, they can check your entire knowledge base and history to see the propose solutions. If that’s not the case, they can ask for additional information and then initialize a chat with the service desk, if needed.

Very often, if they say they're unable to open this file or their headset is broken, someone can immediately tell them how to procure a replacement headset. It allows that person to complete that activity or resolve their issue in a guided way. It doesn't require them to walk through a level of menus to find what they need. And it makes it much more approachable than finding a headset on the procurement system.

The other thing that we're seeing is the ability to bridge between on-premises system and SaaS solution. We have some customers for whom certain data is required to be onsite  for compliance or policy reasons. They need an on-premise system, but they may have some business units that want to use a SaaS solution.

Then, when they have system supported by central IT, that SaaS system can do an exchange of that case with the primary system and have bidirectional updates. So we're getting the ability to link between the SaaS world and the on-premises world more effectively.

Gardner: Philipp, thoughts from you on future trends that are driving the need for ITSM that will make it even more valuable, make it more important.

Connected intelligence

Koch: Definitely. Just to add on to what John said, it goes into the direction of the connected intelligence, utilizing that big data example that we have just gone through. It all points towards that we want to have a solution that is connected across and brings back intelligence towards the end user, just as much as towards the operator that has that integration.

Another angle, more from the technology side, is that now, with the SaaS offerings that we have today, the new way of going forward as I see it happening -- and the way I think HP has made a good decision with HP Service Anywhere -- is the continuous delivery. You're losing the aspects of having version numbers for software. You no longer need to do big upgrades to move from version 9 to a version 10, because you are doing continuous delivery.

Every time new code is ready to be deployed, it is actually deployed. You do not wait and bundle it up in a yearly cycle to give a huge package that means months of upgrading. You're doing this on the fly. So Service Anywhere or Agile Manager are good examples where HP is applying that. That is the future, because the customer doesn’t want to do upgrade projects anymore. Upgrades are of the past, if we really want to believe that. We hope we can actually go there.
Mobile and bring your own device were buzzwords -- now it's already here. We don’t really need to talk about it anymore, because it already exists.

You touched on mobile. Mobile and bring your own device were buzzwords -- now it's already here. We don’t really need to talk about it anymore, because it already exists. That’s now the standard. You have to do this, otherwise you're not really a player in the market.

To close off with a paradigm statement, future solutions need to be implemented -- and we consultants need to deliver solutions -- that solve end-user problems compared to what we did in the past, where we deployed solutions manage tickets!

We're no longer in the business of helping them and giving them features to more easily manage tickets and save money on quicker resolution. This is of the past. What we need to do today is to make it possible for organizations to empower end users to solve their problems themselves to become a ticket-less IT -- this is ideal world of course -- where we reduce the cost of an IT organization by giving as much as possible back to the end user to enable him to do self service.

Gardner: Last word to you, Erik. Any thoughts about future trends to drive ITSM and why it will be even more important to do it fast and do it well?

Engstrom: Absolutely. And in my worldview it's SACM. It's essentially using vendor strengths, the portfolio, the entire portfolio, such as HP’s Service and Portfolio Management (SPM), where you have all of these combined silos that normally operate completely independently of each other.

There are a couple of truths in IT. Data is expensive to re-create; the concept that you have knowledge, and that you have value in a tool. The next step in the new style of IT is going to require that these tools work together as one suite, one offering, so that your best data is coming from the best source and being used to make the best decisions.

Actionable information

It's about making big data a reality. But in the use of UCMDB and the HP portfolio, data is very small, it's actionable information, because it's a set of tools. This whole portfolio helps customers save money, be more efficient with where they spend, and do more with “yes.”

So the idea that you have all of this data out there, what can it mean? It can mean, for example, that you can look and see that a business service is spending 90 percent more on licensing or ESX servers or hardware, anything that it might need. You have transparency across the board.

Smarter service management means doing more with the information you already have and making informed decision that really help you drive efficiencies. It's doing more with “yes,” and being efficient. To me, that’s SACM. The requirement for a portfolio, it doesn’t matter how small or how large it is, is [that] it must provide the ways for which this data can be shared, so that information becomes intelligence.
Organizations that have these tools will beat the competition. They will wipe them out, because they're so efficient and so informed.

Organizations that have these tools will beat the competition at an SG and A (Selling, General and Administrative) level. They will wipe them out, because they're so efficient and so informed. Waste is reduced. Time is faster. Good decisions are made ahead of time. You have the data and you can act appropriately. That's the future. That's why we support HP software, because of the strength of the portfolio.

Gardner: Well, great. I am afraid we'll have to leave it there. We have been listening to a sponsored BriefingsDirect Podcast panel discussion on how rapidly advancing ITSM capability forms an IT imperative, and therefore bedrock, business necessity. We've seen how a new wave of ITSM technologies and methods allow for rapid ITSM adoption, and that means better, rapid support of agile business.
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With that, a big thanks to our guests, John Stagaman, Principal Consultant at Advanced MarketPlace; Philipp Koch, Managing Director at InovaPrime, Denmark, and Erik Engstrom, CEO of Effectual Systems.

Gardner: This is Dana Gardner. I'd like to thank our audience as well for joining, and don’t forget to come back next time to BriefingsDirect.

Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: HP.

Transcript of a Briefings Direct podcast on how enterprises can benefit from the newest IT service management methods and procedures. Copyright Interarbor Solutions, LLC, 2005-2014. All rights reserved.

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