1. Service Management:
Time to Fly or Time to Die?

2. Live the Business
ITILv3 IT Service Management IT-Business integration
Alignment’ was no longer enough
IT and Service Management need to progress.
serve the business stakeholders
difficult to persuade businesses to support or to fund Service Management
the ITSM community is unable to show the value in a clear way
loud call for a revolution coming from the business
Is it really more “control” that we need, or the ability to think beyond that control

3. Time to Fly or Time to Die?
The combination of a rapidly changing IT environment and an
economic downturn are placing big demands on CIO’s and IT
Departments. More than ever before, the ITSM community is
under fire to explain its added value. So where do we go from
here?
This session shows how new ways of connecting with the
Business can drive ITSM to its next stage of evolution.
Looking at all elements of the organization, from HR and Facility
Management to Business Desk, opportunities for integrated
quick wins become apparent. This, combined with our existing
service experience, can bring immediate value and restore
confidence.
But is your organization ready?

4. Time to Fly
Changing IT environment
IT Departments
ITSM community
Added Value Connecting with the
Business
ITSM evolution
Integrated quick wins
Service experience
Immediate value
Restore Confidence
But is your organization ready?

5. Topics
• Have empathy with IT
• Let’s put on the Business Hat
• Tips to Fly
• Is your organization ready?

6. IT Departments under fire!
• Consumer IT overtaking Business IT
• Business more IT savvy
• Innovation vs. Cost reduction
• Cloud computing
• Returns from IT investments vs. Technology
spending

7. Service Management under fire!
• IT-centric
• Complex to use
• Limited (re)use of people, process or tools
• Costly and proven value unclear
• ITIL and ITSM community lagging behind

8. IT Industry … where is it heading?
Distant past Recent past Present
Data & Technology focused Internet & Process focused Cloud, Social & Mobile focused
IT and Business seperated IT and Business aligned IT and Business integrated
What will the IT Department look like in 2020?
Reference: http://www.silicon.com/management/cio-insights/2011/06/29/video-the-future-of-the-it-department-39747638/

9. So what do you think?
1. No IT Department by 2020 ?
2. IT Department driving the Business ?
3. IT Department which is fully integrated
with the Business ?

10. IT Department’s dilemma
Traditional Current trend
Reduce Costs New capabilities
Efficiency Responsiveness
Improved security Open architecture
IT predictable Business Agility
Execute to plan Strategic focus
Push solutions Pull solutions

11. The Challenge!
Cost
Business & IT
Integration
IN/Outsourcing
Innovate
Partner with the Business
Simple & Agile Processes
Cloud computing Mobility
Social Media

12. The Business and IT perspectives
Business view of IT Business perceptions of IT
• Overly complex
• Slow response
• Competitors at their heels • Cost focus
• Need to respond to change daily • Technology focus
• Customers want more for less • Performance
• Project failure
To succeed: • Information diarrhea
• Data Quality
• Stable • Poor support
• Flexible • Unclear ROI
• Responsive

13. The Business and IT perspectives
IT view of the Business IT perceptions of Business
• Unclear requirements
• Reactive mode
• Overload and reactive to crisis • Changing priorities
• Constant change, shifting priorities • No early engagement
• Mixture for new and existing technologies • Excessive resource pooling
• Constant backlog • Low value automation
• Data quality
To succeed: • Legal compliance
• Modern & Cost effective • Outsourcing
• Quality • Budget constraints
• On-time delivery

14. Business / IT perspectives
Service Management
Business view of IT IT view of the Business
• Complex to use • Last minute
• Slow to react • Slow to react
• Not a Business fit • No documentation
• No access to tool • Access to tool
• Not our Business • Resistance to IT
• Business/IT divide • No time to discuss
• Communication • Business/IT divide
• Different culture • Communication
• Expensive • Different culture

15. Tips to Fly
SM Community
Enterprise SM
IT SM

16. Role of IT as Service Provider
The Role of IT is to support, enable and
automate Business activities so that the
Enterprise can achieve its Strategy and
Goals
A Service is a means of delivering value to
customers by facilitating outcomes
customers want to achieve without the
ITIL© ownership of specific costs and risks

17. ITIL is a success, right?
So why does an estimated 70% of organizations
fail to achieve the business value they expected?

18. Key Reasons given
• Lack of Management commitment
• Saying “yes” but meaning “no”
• ITIL is the objective
• No continual improvement process
• Forget the procedures. Let's do as before
• ITIL will never work here
• Unable to specify the value
Source: by Paul Wilkinson (http://bsmreview.com/itilresistance.shtml)

19. Another reason might be …
The frogs that decided to jump!

20. Focal Areas for Improvement
Service Management with leadership
IT Financial Management
IT Culture
IT(SM) Marketing
Business & IT Integration

21. Service Management Leadership
• Enterprise Service Management
Business Business Business Sales/
Unit Unit Unit Marketing
Human Facility
IT Finance
Resources Management
Holistic Approach
• Vision, Mission, E-Strategy alignment, Scope
• Selecting the right approach
• Enterprise-wide roles
• Value and ROI responsibilities

22. Service Management Leadership
• SM Framework ... but with caution
– Keep the stats in mind
– ITIL/ ISO 20K certification is not the goal
– Select Key processes:
• Get one right in terms of:
– User satisfaction
– Quality
– Value
• Expand scope from there

23. Service Management Leadership
• It's an Organizational Change
John Kotter ©

24. IT Financial Management
• IT Financial Management maturity
• Develop a (simple) Cost optimization
approach
• Establish a ROI process

25. ITFM Maturity
IT as a Business partner Sustainable
Improvement
IT as a Profit Center
Improving
Business Partner Value
IT as a Cost Center
Profit Center
IT is unpredictable
Control
Reactive
IT Accounting
IT Charging
IT Budgeting Accurate Predictive Business Aligned Insight Value
Reliable Efficient Transparent Accountable Strategic
Level 1 Level 2 Level 3 Level 4 Level 5

26. IT Cost Optimization engagement
• Budget allocation
– Projects vs. Maintenance?
ID Initiative Owner Effort Risk Cost Savings
• 1 The key - get people 5involved
Server consolidation Jan Hi €300k €500k
2 – everyone has a Business head!
Runbook automation Piet 1 Lo €100k €70k
3 Terminate application xy Sam 2 Lo €35k €700k
4 Freeze legacy upgrades Inge 3 Lo €0k €35k
5 Software licence audit Ingrid 3 Med €3k €30k

27. Return on Investment Process
• Not just to get the project approved!
• Capture financial and organizational
benefits
• Ability to think beyond the horizon
• Demo the value of IT as strategic partner
• Tool to improve communication between
Business and IT
• Focus on business culture and IT value
Design Screen Measure

28. IT Culture
• Improve the Customer focus
• Climate of accountability using Financials
• Shift focus from Maintenance to Innovation
• Create the right CSI environment

29. IT Culture and CSI
The Theory
The Message:
Plan DO • It must be supported - top down.
• It takes repeated effort – so plan!
• Endurance across the organization
Act Check
• Patience
• Start small and build gradually
Deming Lifecycle©
The Practice
Plan Do Stop React

30. IT(SM) Marketing
• Know what to sell
• Know how to sell
• Report ongoing success!

31. Business and IT Integration
• Effective Governance
• IT Performance Management
• IT Skill enhancement
– Finance
– Business Relationship
– Business process experts
Based on Balance scorecard from Kaplan & Norton

32. Before crossing the bridge
• Are existing processes efficient?
• Are they easy to understand and use?
• Can they be replicated and shared?
• Does current technology support the
approach?
• Do you have the skills to make it happen?

33. Tips to Fly
SM Community
Enterprise SM
IT SM

34. Identify the Value
• Process reuse
• Automation of Business specific processes
• Shared technology
• Improved communication
• Merging of Support initiatives
• Enterprise dashboarding
• Shared resources
• Business and IT knowledge exchange

35. ESM Touch points
Strategic
Tactical
Operational
IT Department Business
Operational Tactical Strategic
• Service Desks • Service Level • Business Relationship
• Incident Management • Supplier • Business/IT Strategy
• Request Fulfilment • Asset/Contract • Governance

36. Gain confidence
• Look for low hanging fruit
– Business process automation
• It does not have to be an ITIL one:
– Facility Management
– HR Procedures
– Theft and Security
– Transport and Delivery
– Service Desk integration
• Enterprise Service Desk
• Mutilple Service Desks using same technology
• Shared Knowledge Base

37. Gain momentum
• Establish the ESM Team
• Create a shared vision and execute
• Gain visibility at Board level
• Culture change across the enterprise

38. Tips to Fly
SM Community
Enterprise
IT Department

39. How can we improve as One?
• Terminology
– ITSM, ITIL (2011), itSMf
• Why not ESM, ESMBoK and ESMforum?
• ITIL – room for improvement
– The Books: theory vs. reality
– Proven value
– Commercial
– Few documented successes
– Future evolution
– Online community

40. The future is bright
Business
Business
Information
IT
Technology
• Key player between Business and Technology
• New skills required to drive it forward
• Experts in: Operational models, Process automation and IT Business
• Enterprise Service Management will rock!
• Integration with Project Management and SDLC

41. Is your organization ready?
• Board members to think “process”
• Matrix-type management structure
• IT becoming more business centric
• Enterprise Service Management.
The way to go!

42. Presenter
• John M Walsh
• Enterprise Architect & IT Adviser
• Contact:
www.johnmwalsh.com
info@johnmwalsh.com

43. One more thing ...
Remember the frogs
Let's not just decide.
Let's jump into the Business pond and …
Live the Business!
Thanks for listening