it business management @ bmc€¦ · oracle procurement. vendor & vendor spend $$ oracle...

IT Business Management @ BMCService Centric IT Management

Karen Garcia BMC IT Chief of Staff

© Copyright 10/10/2010 BMC Software, Inc 2

Information Services & TechnologyApril 2010

Process OwnersBusiness Intelligence Analytics

Service Managers

Service Managers

Discipline Advocates

BSM Engineering

Mark Settle, CIOKaren Garcia, Chief of Staff

Account ExecutivesCarrie Alston, MSM

Mark Settle (Acting), ESM

Service Management Office

John Richey

Enterprise ArchitectureBret Settle

Business ContinuityGreg Holdburg

Program ManagementJason Lu

IT Vendor ManagementTed Pasternak

IT FinanceTitus Eapen

IT People ManagementMike Anderson

Infrastructure & Operations

Mahendra Durai

Business SystemsTom Ennis


(Pune)Sandeep Kulkarni

Business Systems(Pune)

Anish Patankar


IT Business & Program Management

Program/Project Management Resource ManagementRelease Management Asset & Supplier Management

IT SOX Governance & ComplianceIT Merger & Acquisition StrategyFinancial ManagementService Costing


BMC IT Business Management before ITBM

ORACLE TIME & LABOR

DOCUMENTUMCONTRACTS 45 RESOURCE

SPREADSHEETS!!

ORACLE PROCURMENTVendor & Spend

ITSM Change/ Release

Maintenance Projects

ATRIUM CMDBPhysical/Logical assetsHYPERION

PLANNING& BUDGETING

ORACLE PROJECT ACCOUNTING

ORACLE FIXED ASSETS & DEPRECIATION

ORACLE GENERALLEDGER

ORACLE HR

SHAREPOINT 2007Project Collaboration &

information

PROJECT PORTFOLIO SPREADSHEET

MS PROJECT & SERVERIn progress projects


BMC IT Business Management after ITBM

$$ORACLE PROCUREMENT

Vendor & Vendor Spend

$$ORACLE PROJECT

ACCOUNTING

$$ORACLE FIXED ASSETS &

DEPRECIATION

HYPERION PLANNING& BUDGETING

$$ORACLE GENERAL

LEDGER

ORACLE TIME & LABORORACLE HR

DOCUMENTUMCONTRACTS

ATRIUM CMDBPhysical/Logical assets

ITSM CHANGE/RELEASEMaintenance Projects

ITBM RESOURCE PLANNING

ITBM PROJECTPORTFOLIO

MANAGEMENT

SHAREPOINT 2007Project Collaboration &

information

MS PROJECT In progress projects

ITBM


BMC IT Business Management Suite


IT Challenges

Perceived by the business to be a cost “black hole”

Difficulty showing the value of IT to the business

Not viewed as a strategic partner by the business


Goals and Objectives

Our goals- Cost transparency to the business- Improved demand management- Create value along key business dimensions- More holistic view of IT performance

So what?- Focus on where money is being spent- Focus on why money is being spent- Ability to communicate in business terms the value IT provides- Measure performance with a business focus


Where does everything come together?

Service Catalog

Business Integration

Application Alignment

Infrastructure Alignment

Process Alignment

Resource Alignment

Investment Alignment


Service Catalog

Service Catalog




Process Alignment

Resource Alignment


Service Catalog


Service ModelService Catalog

Business Processes & Business Services

Technical Services

Servers, Network Devices, Storage, Etc.

LogicalLayer

PhysicalLayer

Bridg

e


What is a Service Catalog?

SLM Requirements

Service Targets only. Part of a larger business Service Level Agreement

Business Services – SLAs– Signed agreements between IT the Business Area for agreed upon terms of service.

Shared Services – OLAs– Signed agreements Between the Business Service Managers and Shared Services Managers for agreed upon terms of service. Are used to support SLAs

Service Targets only. Part of a larger Service Level Agreement or Operational Level Agreement. Aligned to ensuring SLA success

Requestable Services

Business Services Shared Services

Service Catalog

Technical Services

Process Specific Automation

•Sales Automation•Marketing Automation

Multi-Process Enablers

•Network & Telephony•Business Intelligence

Applications, SaaS Providers, 3rd Party Providers•Oracle Financials•Sales Force.com

•Re-image PC•Onboard New Hire•Reset Password

•New Laptop



Service Catalog




Process Alignment

Resource Alignment


BusinessIntegration


ERP Support Services

CorporateStrategy

CRMPLM

Manage Product Portfolio

Manage Product Lifecycle

Manage Ideas & Concepts

Manage Market & Product

Research

Manage Technology Alliances

Manage Channels

Manage Professional Services

Manage Contracts

Process Quotes

Manage Receivables

Process Orders

Manage Billing

Procure to Pay

Source to Purchase

Fulfill Orders

Manage Licenses & Entitlements

Manage Product & Pricing Data

Manage Projects

Set Goals

Align Organization

Gather Corporate

Intelligence

Plan Strategy

Manage Plan

Manage Facilities

Information Technology

Management

Legal

Audit &Compliance

Financial Management

General Financial Accounting

Manage Treasury Operations

Management Accounting

Develop and Test Software

Workforce Planning & Talent

Review

Selecting & Acquiring Talent

On-Boarding & Assimilation

Managing & Rewarding

Performance

Developing and Retaining Talent

Manage Information

Market Products & Services

Marketing Automation

Sales AutomationManage

Sales Force

Partner Management

Services

Order Management

Procurement Finance HRPortfolio Mgmt.

Product Dev.

CONCEPT TO PRODUCT MARKET TO CASH FORECAST

TO DELIVERYSTRATEGY TO PLAN

ACCOUNT TO REPORT

HIRE TO RETIRE

SUPPORT TO CONTROL

How Did We Decide Our Business Services Business Integration

Manage Channel Sales

Manage Education Services

Manage Customer Care

Introduce New Products

Plan & Execute Campaigns

Manage Customer Accounts

Manage Opportunities


Shared Services


CorporateStrategy

CRMPLM



ACCOUNT TO REPORT

HIRE TO RETIRE

SUPPORT TO CONTROL

Final List of Business Services

ESM Product Development Automation

MSM Product Development Automation


Sales Automation

Customer Care Automation

Education Automation

Professional Services

Automation

Order Management Automation

Finance Automation

HR Automation

DataCenter

Operations

Network & Telephony

End User Services

Collaboration Automation

Business Intelligence

Master Data Management

IT Management

Data Administration Integration




Service Catalog




Process Alignment

Resource Alignment




Shared Services


CorporateStrategy

CRMPLM



ACCOUNT TO REPORT

HIRE TO RETIRE

SUPPORT TO CONTROL

Map Technical Services To Business Services




Sales Automation




Automation


Finance Automation HR Automation

DataCenter

Operations

Network & Telephony

End User Services




IT Management


Technical Service 1Technical Service 2Technical Service 3Technical Service 4Technical Service 5Technical Service 6

Technical Service 7 Technical Service 8Technical Service 9Technical Service 10Technical Service 11Technical Service 12

Technical Service 13Technical Service 14Technical Service 15Technical Service 16Technical Service 17Technical Service 18Technical Service 19Technical Service 20Technical Service 21Technical Service 22Technical Service 23Technical Service 24Technical Service 25Technical Service 26


ApplicationIntegration



Service Catalog




Process Alignment

Resource Alignment




Mapping Of How Infrastructure Is DistributedInfrastructure Alignment


Process Alignment

Service Catalog




Process Alignment

Resource Alignment


Process Alignment


ITIL V3 Process MappingProcess Alignment


Questions Addressed By Process AreaProcess Alignment

Enterprise Architecture


Service Management Office


Resource Costing Alignment

Service Catalog




Process Alignment

Resource Alignment


Resource Alignment


What Resources Do We Have?

Hardware Labor

Resource Alignment

Hardware Software People


Dimensions of IT Financials

Public DimensionCosts are presented at an aggregate Operating Expense level on Annual basis

Dimension 1Distributes IT expenses between natural accounts or types of expenditures. Management sees Budgeted and Actual expenses along with the variance

Dimension 2Assigns IT expenditures to the Cost Centers or owners of the expenses

(Simulated Data)

Resource Alignment


Public DimensionCosts are presented at an aggregate Operating Expense level on Annual basis

Dimension 1Distributes IT expenses between natural accounts or types of expenditures. Management sees Budgeted and Actual expenses along with the variance

Dimension 2Assigns IT expenditures to the Cost Centers or owners of the expenses

Dimensions of IT Financials

Dimension 3Redistributes the expenses into all services provided by IT as defined in the Service Catalog

Dimension 4Allocates the IT Shared Service expenses into IT Business Services

Dimension 5ITBM Service Costing assigns IT Service Costs to Business Units

(Simulated Data)

Resource Alignment


Shared Services


CorporateStrategy

CRMPLM



ACCOUNT TO REPORT

HIRE TO RETIRE

SUPPORT TO CONTROL

Map Technical Services To Business Services




Sales Automation




Automation


Finance Automation HR Automation

DataCenter

Operations

Network & Telephony

End User Services




IT Management



Technical Service 7 Technical Service 8Technical Service 9Technical Service 10Technical Service 11Technical Service 12

Technical Service 13Technical Service 14Technical Service 15Technical Service 16Technical Service 17Technical Service 18Technical Service 19Technical Service 20Technical Service 21Technical Service 22Technical Service 23Technical Service 24Technical Service 25Technical Service 26


Resource Alignment


Expenses to Services – Divide and Conquer

Divide Expenses into Assets, People, Vendor Service, Projects and OtherCreate a list of logical groups within each of the above categories in rowsList Services in columns and meet with IT Personnel to determine appropriate service to allocate each item to and to what percent

Assets People Vendor Services Projects Other

Service 1 Service 2 Service 3 Service 4 Service 5 Service 6 Service 7 Service …

Asset 1 100%Asset 2 50% 25% 25%Asset 3 100%…Person 1 50% 50%Person 2 40% 30% 30%Person 3 25% 75%…Project 1 100%

Resource Alignment


Service Costing Dimension

Labor Cap Other Expense

R&D Support 3,990.4 16,909.7 (23.4) 153.5 21,030.2 15,569.1 17,935.6

Engineering - ESM 2,635.9 4,108.6 (21.8) 51.8 6,774.6 15,569.1 -

Engineering - MSM 1,354.5 12,801.1 (1.7) 101.7 14,255.6 - 17,935.6

Front Office 6,940.2 6,232.2 (3,184.9) 419.7 10,407.1 18,877.5 5,134.1

Customer Care 2,373.2 3,569.3 (1,322.7) 320.7 4,940.6 5,706.7 2,426.1

Professional Services 2,362.5 1,140.5 (814.1) 59.4 2,748.3 4,660.2 -

Education Automation 396.5 5.0 (286.1) - 115.4 306.2 187.7

Sales Automation 1,596.3 1,484.8 (759.2) 38.5 2,360.5 7,555.1 2,122.2

Marketing Automation 211.6 32.6 (2.9) 1.0 242.3 649.4 398.0

Back Office 3,923.1 7,342.1 (790.8) 99.5 10,573.9 12,499.1 6,036.3

Finance 2,239.9 5,832.3 (252.4) 69.9 7,889.7 7,864.8 4,533.0

Human Resources 465.4 752.2 (82.1) 34.5 1,170.0 1,426.7 842.4

Order Management 1,217.9 757.6 (456.3) (4.8) 1,514.3 3,207.6 660.9

Shared Services 10,276.5 2,525.3 (264.6) 26.0 12,563.1

Business Intell igence 559.2 859.1 8.3 - 1,426.6

Collaboration & Content Mgmt 1,218.8 643.9 (264.4) 16.9 1,615.2

Data Administration 716.7 188.8 - - 905.5

Integration 386.3 385.7 - - 771.9

IT Management 7,395.5 447.8 (8.6) 9.1 7,843.8

Infrastructure Services 8,149.5 16,869.3 (1,327.3) 2,658.7 26,350.1 4,342.1 530.6

Data Center Operations 5,720.9 7,468.5 (1,293.0) 2,658.7 14,555.1

Network & Telephony 1,054.7 5,017.1 (0.2) - 6,071.6

End User Support 1,373.9 4,383.7 (34.1) - 5,723.5 4,342.1 530.6

Total 33,279.7 49,878.5 (5,591.1) 3,357.4 80,924.4 51,287.9 29,636.5

Internal LaborNon-FTE Related TOTAL COST ESM MSM

Project-Related Expenses

Resource Alignment

(Simulated Data)


Q3 FY10 Data Comparison

19%28%

7%

13%7%

13%25%

15%

42%31%

0%10%20%30%40%50%60%70%80%90%

100%

Cost Center Service Costing

R&D Support

Front Office

Back Office

Shared Services

Infrastructure Services

Service Costing reduces Allocated Services from 67% of Expense to 46%


ITBM Service CostingService Cost Summary

(Simulated Data)



Service Catalog




Process Alignment

Resource Alignment





CorporateStrategy

CRMPLM





Research


Manage Channels


Manage Contracts


Process Quotes

Manage Receivables

Process Orders

Manage Billing

Procure to Pay

Source to Purchase


Fulfill Orders



Manage Projects

Set Goals

Align Organization

Gather Corporate

Intelligence

Plan Strategy

Manage Plan

Manage Facilities


Management

Legal

Audit &Compliance








Review




Performance


Manage Information






Sales ForceManage Customer

AccountsManage

Opportunities

Partner Management Customer Care

Services

Order Management


Product Dev.



ACCOUNT TO REPORT

HIRE TO RETIRE

SUPPORT TO CONTROL

Current Capability Coverage

Technical Service 1Technical Service 2

Technical Service 3Technical Service 4


Shared Service 1


ERP

Economic Payoff Potential$20 M to $25 M$15 M to $20 M$10 M to $15 M$5 M to $10 M$0 M to $5 M

Support Services

CorporateStrategy

CRMPLM





Research


Manage Channels


Manage Contracts


Process Quotes

Manage Receivables

Process Orders

Manage Billing

Procure to Pay

Source to Purchase


Fulfill Orders



Manage Projects

Set Goals

Align Organization

Gather Corporate

Intelligence

Plan Strategy

Manage Plan

Manage Facilities


Management

Legal

Audit &Compliance








Review




Performance


Manage Information






Sales ForceManage Customer

AccountsManage

Opportunities

Partner Management Customer Care

Services

Order Management


Product Dev.



ACCOUNT TO REPORT

HIRE TO RETIRE

SUPPORT TO CONTROL

Investment OpportunitiesInvestment Alignment

(Simulated Data)


Delivered Catalog

Service Catalog




Process Alignment

Resource Alignment



Business Services

Customer Care AutomationSales AutomationProfessional Services AutomationMarketing AutomationEducation Automation Collaboration Automation

Pg 3Pg 4Pg 5Pg 6Pg 7Pg 8

Order Management AutomationFinance AutomationHuman Resources AutomationMSM Product Development AutomationESM Product Development AutomationEnd User Services

Pg 9Pg 10Pg 11Pg 12Pg 13Pg 14

Shared Services

Data Center OperationsNetworking & TelephonyBusiness IntelligenceMaster Data Management

Pg 15Pg 16Pg 17Pg 18

IT ManagementData AdministrationIntegration

Pg 19Pg 20Pg 21

Appendix A

Service Managers Pg 22

Appendix B

Incident Response and Resolve SLAs Pg 23

Appendix C

Service Continuity (Disaster Recovery) Tiers Pg 24

Servi

ce C

atalog

Table of Contents


Users• Corporate – Order Management (Services)

What Is This Service?Order Services covers most aspects of the Quote to Cash process including but not limited to the following:- Provides the visibility for Executive Management to track the revenue being generated from Orders.- Offers a unique pricing structure for the Sales Reps to work with remotely.- Tools that allows for highly complex orders to be entered efficiently.- Allows BMC to recognize revenue on a timely and accurate basis.- Provides for a Special Bids Automated approval system-Customized Collections module

Cost $1,514,309

•Allocation Basis – Based upon number of users on the system.

•Key Cost Drivers – Oracle maintenance and license fees– Production Support of a customized application

What Is Included?

•AR Cash Management•Billing•Collections•Contract Agreement• Order Management•Financed Receivables•License Key Management•License Product Management• Official Orders

•Pricing•Month/Qtr End Close•Revenue Recognition•Revenue Summary•Sales Commissions•Sales Quotes•Support Contracts•Support Quote •Support Renewals•Revenue applications

Planned Enhancements•Pricing updates•Revenue Accounting Recast and Subscription updates•Support Quote expiration updates

•Licensing updates•Opportunity ID updates•Add Credit Limits in OE+

29%

51%

20%

Cost BreakdownNon FTE Related

Internal Labor

Project Costs

Busin

ess S

ervic

es

What Should You Expect?Incident SLA See Standard Incident Management

Response/Resolve SLA

Service Continuity Tier 1See Appendix B

SLA Performance

Incident Compliance

Critical High

96.4% 97.8%

Availability last 90 days

# of Outages last 90 days

3

Order Management Automation Rebecca Smith713-555-1234

98.6%

(Simulated Data)


Lessons Learned

Do not do this in a siloFewer Business Services the better Engage with the business early and oftenReally promote the catalog within IT and the businessAlign all work to services


Questions?

it business management @ bmc€¦ · oracle procurement. vendor & vendor spend $$ oracle...

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