michelle s. jaramillo product analyst

SMichelle S. Jaramillo Product Analyst

Metrics:Communicating Value

to Your Users

Innovative Technology built upon yesterday’s values

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Me and Cherwell Holistic Business Intelligence Metrics Communicating Value Questions?

Michelle S. Jaramillo Product Analyst for Cherwell

Software. Develops and manages analytic

and visualization features for CSM (Cherwell Service Management).

ITSM & BI industry market research. Conducts interviews with

customers and prospective ITSM software buyers.

Disruptor of the ITSM status quo by pulling various industry technologies and ideas into the IT realm.

Avid analytics advocate and practitioner.

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More importantly, where do metrics fit in?

What is Business

Intelligence?

Business Intelligence (BI) is a set of theories, methodologies, architectures, and technologies that turn raw data into meaningful and useful information for a multitude of business initiatives.

Business Intelligence is made up of number of components, these are: Multidimensional aggregation and allocation Denormalization, tagging and standardization of data Real-time reporting with analytical alerts Interface with unstructured data source(s) Group consolidation, budgeting and rolling forecast Statistical inference and probabilistic simulation Key performance indicators optimization Version control and process management Open item management

Holistic Business Intelligence

DescriptiveAnalytics

Business Intelligence & Analytics Maturity

DiagnosticAnalytics

Predictive/PrescriptiveAnalytics

Descriptive, DiagnosticStatus QuoReactive stance Looking at the past; post-mortem Looking in the rear view mirror while

driving forwardStart trending and acting on those trends.

Analytics: The Early Stages

Predictive – 2nd Stage Driving just being able to see beyond the hood

of your car. Prescriptive – 3rd Stage

Driving with the GPS on and car drives itself, making corrections based on new and multiple information sources.

The Next Stages: Realized Value

Time Consuming Tasks

How Insight is Shared

http://reports.informationweek.com/abstract/81/11715/Business-Intelligence-and-Information-Management/Research:-2014-Analytics,-BI,-and-Information-Management-Survey.html

http://reports.informationweek.com/abstract/81/11715/Business-Intelligence-and-Information-Management/Research:-2014-Analytics,-BI,-and-Information-Management-Survey.html

Users and Consumers

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MetricsWhat’s the deal?

THE IMPORTANCE OF LEARNING“A method of measuring something.”

“Metric is any type of measurement used to gauge some quantifiable component of a system or process.”

The Meaning of Metrics

Metrics Over 200 industry metrics and more with different

derivations. KPIs: Metrics that are combined or calculated against other

metrics to provide a summary calculation (ratio or average) of the related metrics.

Reporting Usually done as a paper hand out done in Excel. This is where people tend to report everything in numbers on

every metric.Dashboards Visualizations (charts, grids, gauges, etc.) Scorecards Personalized content

Business Intelligence and ITSM

Metrics are the basis of where we begin our journey into business intelligence. It is the main content for reporting, analytics and dashboards.

How do we know which ones are the right ones for our service desk?

How do we know that what we are reporting is relevant to the business and to the service desk?

How do we navigate with metrics when they are in place?

Other Ancillary Questions Do we have the data available? Do we have software/people to do the analysis? Do we have the right processes in place?

What’s the Deal with Metrics?

1. “Metrics for metrics sake”2. Too many metrics3. Measuring the easy things4. Focusing internally rather than from a business POV5. Thinking that all metrics were born equal6. Trusting benchmarks7. Metrics are poorly reported8. Ignoring behavioral issues Meaning metrics can drive the right or wrong behavior9. Old metrics never die10. Not understanding what metrics really mean

Forrester’s 10 Common Mistakes with Metrics

Eveline Oehrlich – Cherwell Global User Conference, “Is Your Service Desk Stuck In The 00s? Or maybe even the 90s?”, 09/2013

Metrics Template

User Value Proposition: Users have NO downtime when we prevent problems from occurring.

You haven’t experienced any downtime since: “XX XX, 2014”

A Segmented Approach

Consider your audience!!!

Metrics for Mitigation: Technicians & AnalystsMetrics for Maintaining Strategy: ManagementMetrics for Momentum and Motivation: CIOMetrics for the Majority: Everyone else

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Communicating Value

Different methods to help users perceive value

“Customer experience is how your customers perceive their interactions with your company.”

What is Value?

People associate value with a price or cost of a service or product.

Demonstrating value is, typically, tied to the following: Cost Control

TCO (Total Cost of Ownership) Cost Avoidance, Reduction and/or Savings

ROI (Return on Investment) Generate the most benefit for the least amount of

investment whether this is related to a project or operations.

Perceived value is often intangible and can be difficult to quantify. IT costs can be completely unrelated to the benefits that users are actually experiencing or receiving.

Intangible business value drivers are typically tied to such initiatives such as:

Higher productivity (including quality, velocity, effectiveness and efficiency) Maximum access & availability for all users. Open and engaging collaboration channels. Giving the business a competitive advantage.Self-service portal (self-sufficiency) Availability of training in different formats. Documentation. Business Intelligence.Risk avoidance Legal and compliance issues that are industry relevant. Enable transparency through out the business so progress can be marketed internally.Overall user sentiment. User adoption rates Ease of use. Access to multiple systems without disparity.Innovation Effective products, processes, services, technologies, or ideas within the market or industry. Anticipate the needs of the business before the business knows it.

What is Value, Really?

Communicating Value

Monetize it!or

Manage users’ perception of value with metrics!

Monetizing Value Example

Intelligence for Innovation

Intelligence can turn insight into innovation which, in turn, creates VALUE!

Examples of predictive analytics at work:

Staffing modelsVolume of ticketsLocation analytics

CapacitySentiment Analytics

Collaboration & social channel analysis Imagine no more surveys!

Collective Intelligence Combines all data source to help in decision making from, from social to

collaboration and collective efforts.

The Perception of Value

Metrics do matter if they show business value in a tangible or intangible benefit. In an ideal IT organization, metrics should influence strategic business initiatives by providing insight into user awareness.

The perception of value should be driven by IT.

Goals to achieving this: Users are constantly aware of what IT is doing to make their jobs and

lives better by internal marketing and transparency. Users are “buying” more from IT. Users are engaged in metrics that are relevant to them.

Meaning you are using their semantics to communicate to them. User are participating more within the company by using more IT

services. Communicate, communicate, communicate!

If users don’t understand what your value proposition is, you need to communicate more effectively until they get it!

THANK YOU!If you have questions or comments:Email: michelle.jaramillo@cherwell.com

Links to Resources

The Data Warehousing Institute (CBIP Certification and BI Maturity Model) http://www.tdwi.org

Information Week’s BI/Analytics Surveyhttp://reports.informationweek.com/abstract/81/11715/Business-Intelligence-and-Information-Management/Research:-2014-Analytics,-BI,-and-Information-Management-Survey.html

Books on ITSM Metrics

The Definitive Guide to IT Service Management - ITSMf, McWhirter & GaughanMeasuring ITIL - Randy A. SteinbergMetrics for IT Service Management - Peter Brooks

ITIL Service Operations Metrics http://wiki.en.it-processmaps.com/index.php/ITIL_KPIs_Service_Operation#ITIL_KPIs_Incident_Management

Free courses on Data Science, Statistics, and R Programminghttps://www.coursera.org/https://www.edx.org/http://bigdatauniversity.com/

To learn more about value (from a pricing perspective that can be implied to any product or service)http://home.leveragepoint.com/resources/webinars/value-pricing-webinars