Next-Generation IT Service Management: Changing the Future of IT

IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Next Generation ITSM
Changing the Future of IT:
How Real Is It Today, and
Where is It Going in the Future?
Dennis Nils Drogseth
Vice President
Enterprise Management Associates

INDUSTRY ANALYSIS & CONSULTING© 2014 Enterprise Management Associates, Inc.
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Today’s Speaker
3 © 2017 Enterprise Management Associates, Inc.
Dennis Drogseth, Vice President, EMA
Dennis joined Enterprise Management Associates in 1998
and currently manages the New Hampshire office. Dennis
brings several years of experience in various aspects of
marketing and business planning for service management
solutions. He supports EMA through leadership in IT Service
Management (ITSM), CMDB systems, as well as
megatrends like advanced operations analytics, cross-
domain automation systems, IT-to-business alignment, and
service-centric financial optimization. Dennis also works over
several practice areas to promote dialogue across critical
areas of technology and market interdependencies.

Logistics
An archived version of the event recording
will be available at
www.enterprisemanagement.com
• Log questions in the chat panel located on
the lower left-hand corner of your screen
• Questions will be addressed during the
Q&A session of the event
QUESTIONS
EVENT RECORDING

Research Sponsors

Agenda
• Demographics and budget
• Organization, governance, strategic priorities, and
best practices
• Technology, analytic and service modeling priorities
• Service catalogs and app stores and endpoint
management
• Cloud and Agile/DevOps
• Obstacles and Success

Demographics and Budget

Some Demographic Highlights
• Geography (264 respondents):
– 62% in North America
– 38% in Europe (England, Germany, France)
• Strong Executive Presence:
– 41% director or above
• 23% CIO or CTO
• 6% CEO of CFO
– 14% non-IT business
• Lead Verticals:
– High-tech SW, Finance/banking/insurance/Retail
• Average IT budget: about $30 million

A Balanced Mix of Company Size, with Strong Mid-
Tier and High-End Presence
0%
6%
17%
17%
19%
10%
11%
20%
Fewer than 250
250 - 499
500 - 999
1,000 - 2,499
2,500 - 4,999
5,000 - 9,999
10,000 - 19,999
20,000 or more
How many employees are in your company worldwide?
Fewer than 250 250 - 499 500 - 999 1,000 - 2,499
2,500 - 4,999 5,000 - 9,999 10,000 - 19,999 20,000 or more
Sample Size = 264

Organization, Governance,
Strategic Priorities, and
Best Practices

Some Organizational Highlights
• Central IT versus LOB:
– 89% Central, 11 % LOB
• A single or multiple service desks:
– 50%/ 50% each
• Areas of involvement:
– Average respondent had four areas of involvement
– Top ‘primary’ areas of involvement were:
• Integrated cross-silo support for IT asset management
• Core service desk operations (incident/request management)
• Integrated cross-silo support for problem, incident and
availability and performance management
• Integrated cross-silo support for IT governance analytics/
OpEx efficiencies

Roles Were Mixed With 30% Executive, 24% ITSM-Specific,
15% Operations and 12% IT Asset or Financial Management
30%
9%
6%
4%
9%
2%
4%
1%
3%
2%
6%
9%
0%
1%
2%
3%
0%
0%
1%
3%
1%
1%
IT Executive Suite (VP-level and above)
IT Financial Management
IT Architecture
Business Analysis
IT Operations Planning/Design
Operations - Network Operations Center (NOC)
Operations - Data Center
Security/Risk/Fraud
(ITSM) Service Desk, Service Support, Help Desk administrator
IT Service Management (other please specify)
IT Service Management (ITSM) Manager
IT Service Management (ITSM) Director
Endpoint management (including mobile)
IT Asset Management
Software Asset Management
Project/Program Management
IT Portfolio Planning
Cross-Domain Service Delivery Organization
Cross-Domain Support Organization for IT
Applications Development
Applications Management
Other
Sample Size = 264

Some Role-Related Perspectives
• Roles:
– Exec suite
– ITSM
– Operations
– IT financial management
– Other (architecture, business
analysts, development, X-
domain)
• Governance
– All viewed ITSM as the
central point of governance
• Greatest roadblock
– All see SW, deployment
and administrative
complexity as #1 issue

Some Role-Related Perspectives -2-
• Top Strategic Priorities
– Executive Suite – Transform end user support through mobility,
intelligent bots, self-service
– IT financial management – Integrated cross-silo support for fraud,
risk and compliance management
– ITSM – improve end-user experience for internal consumers
– Operations– improve operations-to-service desk integrations for
incident/problem and availability management tied support
integrated cross silo support for portfolio planning and optimization
– Other– Transform end-user support through mobility, intelligent bots,
and self-service; tied integrated support for business workflow
creation

IT Operations and the IT Executive Suite Led in
ITSM Oversight, with ITAM in Third Place
26%
23%
13%
11%
7%
5%
4%
3%
3%
3%
2%
0%
IT operations overall
IT executive suite (VP or CIO level)
IT asset management
Cloud
Service desk/help desk/customer support
Data center
Cross-domain service management organization
Customer service organization
Business line management
Call center organization
Network operations
Other
In your organization, which group oversees/coordinates
your ITSM-related capabilities?
Sample Size = 264

Most ITSM Teams Are Slated for Growth
• 56% of ITSM Teams were slated for growth:
– 36% will stay the same
– 7% will be downsized
• 2% of these due to greater efficiencies
• Top reasons for growth
– Our company is growing and so is ITSM
– We are more actively engaging in operations
– Cloud has required an increased investment in ITSM
– We providing greater direction for ITAM/SAM
– We are assuming more responsibilities across the lines of
business

83% Were Managing ITSM and non-IT
Service/Customer Management as a Single Group
50%
33%
9%
3%
4%
Yes - operational for more than 3 years
Yes - operational for 1 to 3 years
Yes - implementation is in process and will be
completed within 12 months
No - but planning is underway
No plans to consolidate these functions
In your company, are the IT help/service desk environments and
non-IT customer service or customer relationship management
being managed as a single group?
Sample Size = 264

Some Other Organizational Highlights
• Top team integration priorities:
– IT-to-business (BSM) teams
– Operations teams
– DevOps teams
– Cloud-specific teams
– ITAM/SAM teams
• Who led in measuring governing IT process/OpEx efficiencies?
– ITSM teams
– Executive suite
– Operations
– Cross-domain service management team
• Top process/Op/Ex-related KPIs
– Mean time to resolve incidents
– Customer satisfaction
– Success rates in managing change

Top Ten Strategic Priorities for ITSM
1. Improve end-user experience internal to
the business.
2. Integrated cross-silo support for
security/fraud/risk/compliance;
(tied with) transform end-user support
with mobility/self-service/ intelligent bots.
3. Integrated cross-silo support for ITAM.
4. Core service/help desk operations
(incident and request management).
5. Improve operations-to-service desk
integrations for incident/problem,
availability and performance
management.

Top Ten Strategic Priorities for ITSM
1. Improve end-user experience internal to the business.
2. Integrated cross-silo support for security/fraud/risk/compliance; (tied with)
transform end-user support with mobility/self-service/ intelligent bots.
3. Integrated cross-silo support for ITAM.
4. Core service/help desk operations
(incident and request management).
5. Improve operations-to-service desk integrations
for incident/problem, availability and
performance management.
6. Improve operations-to-service desk integrations for change and
configuration management.
7. Integrated cross-silo support for the Internet of Things.
8. Support the move to the internal/external cloud.
9. Integrated cross-silo support for IT governance for OpEx efficiencies.
10. Integrated cross-silo support for portfolio planning and optimization.

Management of Portfolio Led for Best Practices
22
18%
20%
26%
25%
19%
27%
27%
25%
20%
31%
22%
28%
0%
ITIL v2
ITIL v3/2011
ISO 19770-1
Six Sigma
IT4IT
Control Objectives for Information and Related Technology (COBIT)
IT Balanced Scorecard
Capability Maturity Model Integration (CMMI)
PMBOK for project management
Management of Portfolio (MoP)
PRINCE2 (for project management)
International Project Management Association (IPMA)
Other
Which of the following best practices are relevant to your ITSM initiative?
Sample Size = 264, Valid Cases = 264, Total Mentions = 759

Technology, Analytic and
Service Modeling Priorities

Functional Priorities
• The top five functional priorities in ranked order were:
– Social IT across the end-user community and the IBM staff.
– New or enhanced project management capabilities.
– Enhanced capabilities for software asset management (SAM).
– Mobile in support of IT stakeholders.
– Enhanced capabilities for IT asset management (ITAM).

Automation Priorities
• The top five functional priorities in ranked order were:
– Social IT across the end-user community and the IBM staff.
– New or enhanced project management capabilities.
– Enhanced capabilities for software asset management (SAM).
– Mobile in support of IT stakeholders.
– Enhanced capabilities for IT asset management (ITAM).
• The top five priorities in automation in ranked order were:
– Workflow within and across IT.
– Workload automation (job scheduling).
– Automation in support of infrastructure
inventory/discovery.
– Service request management.
– SecOps/ security-related automation.

Analytic Priorities for ITSM Were Rich and Varied
30%
29%
28%
27%
26%
24%
22%
22%
21%
21%
20%
17%
12%
0%
Analytics for IT governance in terms of efficiencies and effectiveness
Analytics for change management
Analytics in support of optimizing IT infrastructure
Analytics for user experience and visibility into end-user problems
Analytics in support of optimizing IT application services for cost/value
Analytics that can draw from an ITSM knowledge base
Integrated security analytics to minimize fraud and risk
Analytics to support lifecycle management for the Internet of Things (IoT)
Analytics for assimilating and reconciling multiple data sources
Analytics to support superior asset and financial optimization
Analytics for incident/problem and availability management
Analytics in support of optimizing cloud costs and resources
Analytics for asset management and financial optimization
None of these (Analytics are not a priority for us.)

Top Five IT-to-Business Management Priorities
for ITSM Teams
1. Executive dashboards for sharing information
within IT (tied with) analytics for business
outcomes (revenue, business process
impacts/usage).
2. Workflow automation for processes linking IT
and business stakeholders.
3. Social media for customer satisfaction
assessments.
4. Analytics in support of partner-related business
process optimization.
5. Support for managing enterprise assets (IoT).

Data Center Utilities and HR Led
for Enterprise Process Automation
47%
45%
36%
31%
31%
26%
4%
0%
Data center utilities and power
Human Resources
Building and Facilities
Transportation/fleet management
Manufacturing
Other vertically specific infrastructure costs (retail operations,
healthcare operations, power grids, airports, etc.)
None, we are not currently supporting enterprise services.
Other
Which of the following areas does your company's ITSM team
or ITSM integrations currently support or have committed plans
to support in terms of workflow and/or process automation?

65% Are Currently Supporting IoT Initiatives
37%
28%
19%
16%
We are actively leveraging IT capabilities to support IoT.
We are beginning to leverage IT capabilities to support IoT.
We have plans to leverage IT capabilities to support IoT.
We have no plans to leverage IT capabilities to support IoT.
To what degree is your ITSM team or ITSM integrations
supporting Internet of Things (IoT) requirements?
Sample Size = 264

Some CMDB/CMS/ADDM Perspectives
• 51% had CMDBs/ or
CMS/s actively working
and deployed
– 69% had federated data,
and 25% were looking to
federate
• Federating data
correlated with overall
ITSM success
– Average weekly time
spent reconciling data was
circa 12 hours
• Those who invested
more time were more
successful in their overall
ITSM initiative
CMDB
Incident
Management
Problem
Management
Change
Management
Configuration
Management

CMDB
Incident
Management
Problem
Management
Change
Management
Configuration
Management
Some CMDB/CMS/ADDM Perspectives
• 51% had CMDBs/ or CMS/s actively working and deployed
– 69% had federated data, and 25% were looking to federate
• Federating data correlated with overall ITSM success
– Average weekly time spent reconciling data was
circa 12 hours
• Those who invested more time were
more successful in their overall ITSM initiative
– Most dominant use cases were asset
and change management
• But in terms of those most currently targeted,
data center migration, financial optimization
and integrated security led
– CMDB/CMS success correlated strongly with overall
ITSM success
• 25% had application discovery and dependency
mapping deployed (ADDM)
– Dominant use case was performance and availability.

Data Sources for ITSM, ITAM or Integrated
Operations: Average of 4.5 Per Respondent
38%
31%
28%
27%
27%
24%
23%
20%
20%
20%
19%
18%
17%
17%
16%
16%
16%
15%
12%
11%
10%
10%
9%
5%
0%
IT governance/efficiency-related data repository
Asset Management Database
Data store integrated with an ITSM platform
CMDB internal to the ITSM platform
Software license data resources
Application Discovery and Dependency Mapping (ADDM)
Spreadsheet data
Federated CMS
Inventory or discovery tools
Internet of Things (IoT)-specific data repository
CMDB external to the ITSM platform
Social media/ social IT data resources
Application portfolio-related data repository
Operational sources (events, log files, etc.)
User experience management-related data
Operations sources (performance, transaction, etc.)
Capacity planning-related data store for internal infrastructure (including virtualized and cloud)
Visio data resources
Business planning data store
Aggregated data store for performance analytics
Capacity planning-related data store for public cloud
Aggregated data store for change management-related analytics
Aggregated data store for security risk-related analytics
Aggregated data store for financial analytics
Other
Sample Size = 264, Valid Cases = 264, Total Mentions = 1,181

Service Catalogs, App Stores and
Endpoint Management

60% Had Multiple Service Catalogs or App Stores:
Only 1% Had Neither
25%
37%
11%
11%
9%
1%
3%
3%
We have one service catalog
We have multiple service catalogs
We have one app store
We have multiple app stores
We have both service catalog(s) and app store(s)
We have neither a service catalog nor an app store
We have multiple service catalogs (or app stores) but are
seeking to integrate into a consolidated view
Don't know
Sample Size = 264

Some Service Catalog or App Store Highlights
• 75% currently support
cost and usage insights
– And 21% plan to do so
within the next 12 months
• Supporting cost and
usage insights and cloud
services strongly
correlates with success

Some Service Catalog or App Store Highlights
• 75% currently support cost and usage insights
– And 21% plan to do so within the next 12 months
• Supporting cloud, cost and usage in catalogs/ app stores strongly
correlates with overall ITSM success
• Chief IT services in catalog were:
– IT professional services (e.g. project management/ architecture)
– End-user device provisioning
– End-user support (help/ incident)
• Chief enterprise groups using
catalogs were:
– Operations
– Sales
– Human resources
– Facilities management

Endpoint Management Requirements Are Becoming
Increasingly Diverse
89%
71%
59%
16%
0%
Desktops/laptops
Mobile phones
Tablets
VDI
Other
Which types of endpoints/devices is your organization currently managing?

Some Endpoint and Mobile Management Perspectives
• Top 5 requirements for
managing endpoints
1. Security
2. Software usage
3. Software distribution
4. Operating system deployment
5. License management
• 86% were offering mobile support for ITSM
professionals, and 87% for IT service
consumers– both of which correlate with
overall ITSM success

Cloud and Agile/DevOps

Chief Impacts of Cloud on ITSM Teams
1. Cloud and virtualization has made asset management more
challenging.
2. Cloud is shortening the review cycle for managing change.
3. Cloud is changing how we approach release management.
4. Cloud is changing how we’re organized.
5. Cloud is requiring higher levels of automation in provisioning
services.
6. Cloud is pushing us to pay more attention to SecOps.
7. We see cloud as a resource for reducing ITSM, ITAM,
operations and other related costs

89% Have Integrated Release Management for
Application Services with ITSM
53%
36%
4%
7%
Yes, we recently (within the last 12 months) integrated
ITSM support.
Yes, we have had integrated ITSM support for more than
12 months.
Yes, we will integrate ITSM support in the next 12 months.
No
Is release management for new or enhanced (updates) application services
integrated with your ITSM capabilities or will it be in the next 12 months?
Sample Size = 264

Some Perspectives on ITSM/DevOps Integrations
• Top four areas of ITSM/DevOps integration were:
– Common workflows with development teams moving into
production
– Scheduling releases
– Active feedback loops on
service quality
– Active feedback loops on
usage and requirements
• 71% have created a fast track for certain applications
• Integrated ITSM/DevOps shows very strong
positives both in itself and for ITSM’s overall success
– 36% say it’s been transformative, and 44% very positive

Obstacles and Success

Software Deployment and Complexity Was the Greatest
Obstacle for ITSM Success
44
27%
16%
15%
14%
14%
14%
0%
Software, deployment, and administrative complexity
Vendor Selection
Warring technologies and siloed tools
Organizational and political issues
Poor dialogue and communication across IT
Lack of effectively defined processes
Other
Which of the following is the greatest obstacle
for superior integrated ITSM leadership?
Sample Size = 264

What Correlated with ITSM Success?
• Integrating cloud services into a common portal
or catalog
• Mobile access for ITSM professionals
• Offering consumers mobile access to ITSM
services
• Continuous application release updates (multiple
times a day)
• Establishing a fast track for release management
• Effective ITSM support for DevOps overall
• Support for IoT

What Correlated with ITSM Success? -2-
• IT budget growth, ITSM team growth
• Larger versus smaller enterprises
• Executive suite leadership
• Mature consolidation of ITSM with customer
service
• Viewing ITIL as more important
• Success in CMDB deployments
• Supporting usage and cost insights in service
catalogs

Q&A
47
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