itil sam guide and the sam business case - bcscmsg 17 mar 2004 v2

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ITIL SAM Guide

and the BusinessCase for SAM

Contents of ITIL Guide to SAM © Crown 2003

Other contents of presentation © Deloitte 2004

David Bicket, Senior Manager, Deloitte

dbicket@deloitte.com; +44 7779 648 544

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© 2004 Deloitte

Publication Details

±Book

± Published 9 September 2003

± ISBN:0113309430

± Cost: £35

±CD± ISBN:0113309449

± Cost: £60 + VAT

±Ordering

± TSO± on-line: www.tso.co.uk

± phone: +44(0)870 243 0123

± itSMF (member discount!) and others

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Definition

Software Asset Management(SAM) is all of the infrastructureand processes necessary for theeffective management, controland protection of the softwareassets within an organisation,throughout all stages of theirlifecycle

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Table of Contents

1 Introduction

2 Context

3 Making the business case

4 Organisation, roles and responsibilities

5 Process overview6 Implementation overview

7 Tools and technology

8 Partners and SAM

9 Mapping SAM to ITIL and other approaches

10 Bibliography

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Appendices

A Terminology

B Software licensing overview

C Considerations in selecting SAM tools

D Possible SAM database contents

E Choosing a SAM partnerF The detailed contents of a SAM business case

G Example contents of a software policy

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Chapter 1: Introduction

� Written for directors and other members of senior managementwith corporate governance responsibility

� PDF available from dbicket@deloitte.com

� Contents

±The need for SAM

±SAM principles

±Benefits

±Possible problems

±Costs

±Implementation approaches

±Minimum implementation recommendations

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SAM Principles: Overview

The development of a visionand strategy for SAM

The development andcommunication of an overall

SAM policy

The development andimplementation of SAM

processes and procedures

Ongoing performance of SAMprocesses with concurrent maintenance of information

The SAM database

Regular reviewand improvement 

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Benefits

�Managing risks

�Controlling costs

�Obtaining competitive advantage

�Enhancing employee motivation and the workplaceenvironment

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Managing Risks

� Legal and financial exposure

� Damaged reputation

� Unexpected financial and workload impact

� Security breaches including unauthorised disclosure of confidential information

� Unexpected problems with acquisitions/mergers/demergers

� Interruption of operations

� Unsupportable operations

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Controlling Costs

�IT Asset Management recognised by industryanalysts as enabler of significant benefits

±Gartner: cost savings of up to 30% per asset infirst year

±GIGA: up to 26% of total IT budget�Observed cost benefits in some cases are evengreater

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Controlling Costs

� Better negotiating position

� Improved strategic infrastructure planning

� Prevention of software over-deployment

� Reduced hardware costs

� Improved software purchasing arrangements� Reduced cost of internal licensing support

� Reductions in process and direct infrastructure costs

� Reductions in problem-resolution costs

� Potential tax benefits

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Obtaining Competitive Advantage

�Better quality decision-making

�Faster time-to-market

�Faster and easier integration after mergers and

acquisitions

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Chapter 5: SAM Process Overview

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Life-Cycle Overviewlncluding Externally Sourced Software

Retirement 

Optimisation

Operation

Requirementsdefinition

Design

Build

Deployment 

Evaluation

Procurement 

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Receipt of Proof of License

End-User Organisation Reseller Manufacturer

Copies

(note 2)

SAMDatabase(s) Notused

(note 1)

Purchaseorder

copy

ResellerInvoice

Match order and invoicethenpay

Partitiallymatched

documentation 

Match initial documentation (order and invoice) withlicenseconfirmation 

PurchaseOrder

LicenseConfirmation 

Purchaseorder

Resellerorderconfirmation orpseudo-licenseconfirmation 

Resellerinvoiceforsoftware

Payment 

Follow up withmanufacturer if any

license

confirmations not 

received within areasonable period

(say 2 monts)

ManufacturerlicenseConfirmation 

Notes: Note 1: Not used-not relevant for matching with invoice or order

Note 2: Copy all proof of license documents including license confirmation 

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Chapter 8: Partners and SAM

� SAM guidance materials

� SAM consultancy

� Outsourcing of SAM functions

� Audits

� Certification� Conferences and workshops

� Licensing advice

� Historical purchase records and effective licensing

� Current purchase records

� Directories and assessments of SAM tools

� SAM tools

� Implementation assistance for SAM tools

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The Business Case

for SAM

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Chapter 3: Making theBusiness Case for SAM

�The most important action step!

�SAM will impact on the entire organisation ± do notattempt it just as an IT project

�Do not view SAM as just selecting and installing atool

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Main Approaches

�Corporate Governance / Legal Risk Avoidance

�Operational Risk Avoidance

�Cost Savings

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Corporate Governance

�Typically Driven or Strongly Supported by SeniorCorporate Management

�License Compliance Typically a Priority

�Viewed as an Absolute Requirement; not driven byCost-Benefit Analysis

�ITIL not a major Driver

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Operational Risk Avoidance

�Typically Driven by both Operations and ITManagement

�Avoidance of Operational Problems Typically aPriority

±Viruses, roll-out problems, support problems, etc

�Supported by Cost-Benefit Analysis, but as aSecondary Consideration

�ITIL should be a Driver

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Cost Savings

�Typically Driven by IT Management

�Savings Perspective Primarily Driven by Internal ITSavings ± Not by Impact on End-User Departments

�Cost Savings Analysis is Primary Driver; Cost-Benefitis Secondary

�ITIL not a major Driver

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Recommendations

�Link Business Case into Corporate Governancerequirements ± the easiest µsell¶ 

±Work with Corporate Management, Finance and InternalAudit

±Leverage on Corporate Governance requirements in allcountries where your organisation has a presence

± See European Corporate Governance Institute website for link tomost national codes ± www.ecgi.org/codes/all_codes.htm

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Recommendations (cont)

�Link into Corporate Governance (cont)

±You need to link what you do to corporate ± andcorporate governance ± objectives. Don¶t expect acorporate governance statement about IT AssetManagement.

±Link into µIT Corporate Governance¶ for overall IT

± See Gartner et al

�Build µOperational Risk Avoidance¶ and µCost Savings¶ 

arguments into µCorporate Governance¶ businesscase, for triple-win

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UK Combined Code

C.2 Internal Control

Main Principle

The board should maintain a sound system of internal control to

safeguard shareholders¶ investment and the company¶s assets.

Code ProvisionC.2.1 The board should, at least annually, conduct a review of the effectiveness

of the group¶s system of internal controls and should report to shareholdersthat they have done so. The review should cover all material controls,including financial, operational and compliance controls and risk managementsystems.

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Turnbull Guidance (Attached to Code)

� (16) The board of directors is responsible for the company¶ssystem of internal control. «

� (18) It is the role of management to implement board policieson risk and control. «

� (19) All employees have some responsibility for internal controlas part of their accountability for achieving objectives. «

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German Corporate Governance Code

�(4.1.3) ³The Management Board ensures that allprovisions of law are abided by and works to achievetheir compliance by group companies.´ 

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US Sarbanes-Oxley

�Section 404 establishes requirement for companiesto include in their annual reports a report of management on the company¶s internal control overfinancial reporting

�Reinforced by latest PCAOB standard

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Questions?

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Contacts

�David Bicket, Senior Manager, Deloitte,dbicket@deloitte.com

�Colin Rudd, Director, itEMS,

colinrudd@itemsltd.co.uk�ITIL Service Desk, ServiceDesk@ogc.gsi.gov.uk,tel no: 0845 000 4999