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Reboot Service Management!

Evelyn Hubbert

Principal Analyst

March 29, 2011

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The F1 race

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The F1 car and driver

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The F1 pit crew before the race

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The F1 team

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Innovation tension

Day-to-Day Management Breakthrough InnovationCustomer

Satisfaction

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IT and the business

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People, process, technologies

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Understanding the three key challenges

Technology shifts and opportunities

Process management/opportunities

People aspect

Recommendations

Agenda

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Technologies

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1%

3%

10%

11%

14%

14%

20%

21%

27%

28%

31%

32%

36%

37%

38%

44%

54%

64%

Other priority

Move costs from capital to operating expense categories

Improve corporate environmental sustainability and social …

Acquire other companies or divest parts of existing business …

Re-engineer core business processes

Comply with government regulations and requirements

Streamline business operations and consolidate business units

Improve business flexibility and resilience -- faster time to …

Expand into new geographic markets

Drive new market offerings or business practices

Improve workforce productivity

Improve our ability to innovate as an organization

Improve your customer relationships

Improve quality of products and/or processes

Acquire and retain talent

Lower the firm’s overall operating costs

Acquire and retain customers

Grow overall company revenue

―What are your firm’s five (5) most important corporate business priorities over the next 12 months?‖

(Select all that apply)

Increase efficiencies, expand resource pool, and offer

more customized services and products

Base: 2045 enterprise non-IT director level or higher

Source: Forrsights Budgets And Priorities Tracker Survey, Q2 2010

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Top technology priorities over the next 12 months

Source: Forrsights Budgets And Priorities Tracker Survey, Q2 2010

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Source: January 31, 2011, ―Another Year Of Outperformance For The Tech Industry‖ Forrester report.

Value?BRIC And Other Emerging Economies Will Show The Strongest 2011 Tech Industry Growth

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Number of employees in the organization

100 or fewer

employees

100 to 999

employees

1,000 or more

employees

Self-provision something

(apps, Web, smartphone, plan)

40% 43% 40%

Self-provision applications 28% 35% 30%

Self-provision websites 14% 13% 13%

Use smartphone for work 11% 10% 13%

Self-provision smartphone 8% 7% 7%

Self-provision monthly

smartphone plan

9% 9% 8%

Guess what: 40% of employees self-provision

Base: 3,908 US information workers

Source: North American Technographics® Empowerment Online Survey, Q4 2009

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End users desire flexibility, personalization, and immediate gratification

Information workers desire:

– Device independence

– Device portability

– Access from any device

– Self-service

– Immediate gratification

– Access to application stores/portals

– Pay-per-use

– Always-on

– Instant-on

– A modern desktop experience

– Persona management/synchronization

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The cloud splintering

Source: January 31, 2011, ―Another Year Of Outperformance For The Tech Industry‖ Forrester report.

Informal, business buyers will drive uptake of

public cloud services.

Formal IT buyers will emphasize consolidation

and virtualization over true cloud capabilities

New cloud offerings will increase enterprise’s

service usage.

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Source: http://office.microsoft.com/en-us/images/results.aspx?qu=Digital#ai:MP900449113|mt:2|

http://www.solutionsconsultants.com/about/business-people-handshake.jpg

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What the business wants

Speed, flexibility, quality

• Better customer satisfaction

• New capabilities

• Costs that shift with the business

• Business value

• Not excuses!

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Process

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IT frameworks, methodologies, standards

ITIL/ITSM

COBIT

ISO/ISE 20000

Project Management

– PMBOK

– Prince 2

SOX

…

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Opportunities

February 2011 “The State Of IT Governance, Q4 2010”

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Service Management

Service

Service Family

Service

Line

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People

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Organization around IT processes is most common, followed closely by technologies

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Hot new roles emerge

Business relationship manager

Automation architect

Service designer

Service manager

Vendor manager

Process owner

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

We could . . .

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Or we could focus in 2011 on …

Productivity

Quality

FlexibilityReduce

Cost

Improve

Quality

Improve

CustSat

Improve

Consistency

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Run IT as a business

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Enter Lean Service Management

Service Design

Service Transition

Service Operation

Manage the services IT supplies in terms of the business value they provide

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Anatomy of the new service desk

Staffed with experts

New responsibility

– Expert center/operation center

– Front door to IT

– ITSM enablement

New functional requirements

– Service catalog — a must

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Service catalog - method to structure

The catalog describes what the business wants or needs, in business-relevant terms.

Service levels are embedded in service definitions.

Role-based catalog entries provide a relevant view of IT.

Integrated into other process areas.

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Anatomy of the new service desk (cont.)

New functional requirements

– Knowledge management — critical

Asset management

– Depending on pain point

– Risk, compliance and cost reduction

Continuous integrations

– Other functional teams

– IT service desk as broker

– Front desk to IT

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Run IT as a business

Change behavior

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Don’t wait to take charge!

Take charge of the value conversation

Focus on trust and relationships,

not just metrics

Use improved trust and

capabilities to

capture new

value

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Shutting down: the behaviors you should stopRecommendations for a successful reboot effort

• The cloud changes some things, not everything:

• Diminishing techie skills

• Business skills become more important.

• Systems engineering is a necessity.

• ―If you fear the cloud, you should!‖

Fearing the cloud

• Design orchestrates ―services‖ . . . that is what the business cares about!

• Building blocks are abstract subservices.

Thinking only in terms of technologies

• Eliminate the confusion of reaching out to yo

Multiple entries into IT

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Starting up: the behaviors you should startRecommendations for a successful reboot effort

• New roles are emerging, such as business relationship managers, automation architects, and service designers.

• Look for staff with the raw skills (such as presentation, communications, social media, sales, marketing, etc.) to fill these roles.

Looking for employees with potential to fill new roles

• Modify attitude from outside in – measure it.

• Empower your employees to innovate.

Building a service organization

• Real geeks have nothing to fear.

• If you dislike change, IT is the wrong business for you!

Embracing change

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And the results . . .

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Thank you

Eveline Hubbert

+1 613.617.8803

ehubbert@forrester.com