Getting to Business Value: A Review of BSM Maturity Survey Results by BSMReview.com Introduction to NetIQ\'s Business Service Management Solution

1. Getting to Business Value
through IT
Findings of 2011 BSM Maturity
Benchmark Survey

2. About BSMReview – Survey Source
 Online Community - BSM Best Practices
 Thought Leading Content
 Vendor Independent Community
 Focus On Next Steps For Successful BSM
 Features Cadre Of Experts

3. Cadre of Contributing Experts
Bill Keyworth (Gartner VP)
BSM
Peter Armstrong (former
ITIL Experts
Troy DuMoulin (Pink Elephant)
BMC) Experts Peter J. McGarahan (ITSM guru)
Jeroen Bronkhorst (HP) Robert Stroud (CA ITSM evangelist)
Matthew Burrows (itSMF Sharon Taylor (former chief architect of
UK) ITIL)
Peter Doherty (CA) Ken Turbitt (ITIL v3 guru/HP)
Doug McClure (IBM) Paul Wilkinson (ITIL Author/Consultant)
Ariel Gordon (Neebula)
Tom Bishop (former CTO BMC)
Enterprise IT
Malcolm Fry (IT industry
John Seely Brown (former Chief Scientist Experts
luminary)
Technical/Business Israel Gat (Agile industry expert)
PARC)
Luminaries
John Hagel III (Deloitte Center for the Bob Multhaup (IT Business
Edge) Modeling)
Rich Ptak (IT Industry Research)
Annie Shum, PHD (Performance)

4. Website Demographics
Titles: CIO, Vice President,
Director, Manager, Staff 34,254 subscribers
Representing 9200+ companies
Roles: Information
Technology Strategy &
Architecture
Operations Company Size (employees)
Strategic Planning • 43% (5000+)
Global Operations • 18% (1000 – 4999)
Managed Services
• 23% (99 -- 999)
Technical Support
Service and Support • 16% (under 99)
Systems & Performance
Management
Application Performance
Network and System Security
Governance and Compliance, …

5. Survey Demographics
Response
Industry Sector Company Size
25%
17%
20% 16%
16%
20% 15% 43% 23%
47% 18%
10%
5%
1 to 99
0% 99 to 999
1000 - 4999
5000+

6. BSM Maturity Model
Level IT Business Maturity Business Business
Maturity Benefits Metric
5 Pervasive Market Leadership Sustained Market Expansion
Competitive
Advantage
4 Optimized Competitive Product & Service Market
Differentiation Leadership Penetration
3 Aligned Business Value Customer Profit
Acquisition & Maximization
Retention
2 Predictive Secure & Reliable Cost Effective Revenue Focuses
Operations Operations
1 Essential Business Technology Minimize IT
Fundamentals Supporting Investment
Business

7. Getting to Business Value …thru
IT?
Desired State
BSMReview Insight
Business Maturity
Leader
Sustain
Utility Strategic
IT Operational Maturity

8. Getting to Business Value …thru
IT?
Desired State
BSMReview Insight
Business Maturity
Leader Not Aligned Aligned
Strategic Business Strategic
Immature IT Innovative
Sustain
Aligned
Not Aligned
Utility
Strategic IT
Cost Efficient
Immature Business
Utility Strategic
IT Operational Maturity

9. Getting to Business Value …thru
IT?
Desired State
BSMReview Insight
Current
Business Maturity
Leader
Reality
Not Aligned
Strategic Business
Immature IT
Aligned
Sustain
Utility
Cost Efficient
Utility Strategic
IT Operational Maturity
1

10. BSM Maturity Assessment
 Converge on the definition of BSM
 Assess both IT and Business maturity

11. Increasing consensus that business
needs drive definition of BSM
BSM Definition Response
Response
BSM is measurable activity for aligning IT with
business objectives
34.9%
BSM is a business-oriented approach to IT
operations and deliverables
31.8%
BSM is a (mature) process oriented approach to
17.1%
IT service management
BSM focuses on "running IT as a business entity" 11.6%
BSM is managing and analyzing application
3.9%
performance

12. Conflicting Views of Technology
Contribution
Response Options Business
IT View
Response
(Strongly agree and agree) View
We use technology to create product and
84% 55%
service leadership in our industry
We leverage technology to focus on
84% 75%
customer acquisition and retention
We use technology to ensure cost
91% 80%
effective operations
Our technology provides us with a
unique, sustained competitive 83% 30%
advantage
We limit the use of technology to basic
business functions 42% 67%
2

13. How does your company recognize
the benefit from technology?
“ … is a key component to delivering quality with speed to
market”
“… allows us to provide exceptional patient care”
“… enables top line revenue growth and margin
improvement”
“… improved finding of Oil & Gas and the development of
these assets”
“… reduced operational costs & increased customer
satisfaction”
“We are a technology center …technology is our livelihood”

14. How IT Investment Decisions are
Made
Best Case
“IT investments are determined by added
Response
value, effectiveness and efficiency of the business”
Typical Case
“Investments build a global infrastructure and
product set that should improve efficiency and drive
business”
Worst Case
“IT investments are always reactionary”

15. Business/IT Culture
 How business and IT work toward an
alignment
 Perceptions of IT based on role and title

16. Evidence of Collaboration is
Minimal
IT is trusted to do the "right" thing in 26% 25%
Response
leveraging technology for business benefits
Business effectively leverages IT for core
operating processes (supply 30% 33%
chain, CRM, product innovation...)
IT has a history of success in automating 26% 25%
business process improvements
IT is recognized for contributing to reduction
in production costs of existing products & 33% 34%
services
Business feels IT is responsive to
reasonable IT requests, not expecting IT 30% 52%
miracles
Business does not trust IT and has
minimum confidence in IT meeting business 19% 30%
needs
Biz View IT View
3

17. How do business and IT
interact/cooperate in your company?
“IT has a history of not delivering on time or budget
Response
& when on-time functionality doesn’t work”
“The business submits work requests, IT determines
required and available resources, and business
prioritizes projects”
“We are a large organization, so trust is higher in
some areas than others.”
“Executive level is NOT yet supportive of a single
approach or point of view”
“Business is beginning to participate in governance
activities to prioritize IT projects”

18. Technology Understanding is a GAP
Strongly Agree/Agree
Response
Is core to strategic business execution 70% 74%
Is an early adopter of leading edge 36% 86%
technologies
Provides real-time visibility into 48% 96%
business impact of technology issues
Uses only proven, safe technologies 66% 75%
that have been validated and tested…
Has little to no technical strategy 48% 50%
(services are managed to be "good…
IT View Biz View
4

19. Service Level Management
 Impact of service performance
 Impact of outages on business
operations

20. Business/Executives View Metrics
Improving
Improved or Stayed the Same
Response
Business View IT View
95%
90% 90%
84%
80%
77%
70% 70% 73%
70%
65% 65% 66%
60%
Service Time between Service Time between Number of Business staff Understanding

21. Limited Alignment of “Business
Impact”
Business Impact Executives Mid-Level IT Staff
Response
Lost Revenues Medium High Medium
Poor Customer Retention Low Medium Medium
High
Increased Time-to-Market Low Medium Medium
Decreased Business Low Medium Medium
Agility
Employee Productivity High High High
Increased Cost to Medium Medium Medium
Business Operations High
Visibility to External Medium Medium Medium
Customers High
5

22. Improving IT performance metrics
“Find better ways to leverage existing
Response
technology”
“The things that declined are good things”
“Need to hold staff accountable”
“Meetings and more meetings … but
nobody with the guts to truly change.”
“We’re implementing an improved ITSM
toolkit and plan to soon have metrics
available.”

23. Focus on “Process” to Improve
Service
Response
66.3%
38.4%
16.3%
29.1% 31.4%
12.8%

24. What ITIL v2 process capabilities
are you using today and planning to
use?
Implemented
Response
79%
66%
60%
54%
Incident Change Problem Service
Management Management Management Request
Management

25. What ITIL v3 process capabilities
are you using today and planning to
use?
Top ITIL 3 Planned
Response
35% 36% 41% 44% 49% 54%
6

26. Conclusions
 Business maturing faster than IT
 IT/Business disparity too significant to ignore
 Business has optimistic but dated view of
technology
 IT needs to “market IT’s unique differentiations
 Strong benefits for roles with cross fertilization

27. Recommendations
 Executive with IT/Business alignment
responsibility
 Benchmark both IT & Business maturity for
next steps
 State-of-the-Business workshop for IT
 Annual “Technology for Business Summit”
 Provide vision & insight to technology trends
 IT Marketing Strategy/Plan for IT brand identity7

28. Questions?
Feedback Forms
Survey Results: www.bsmreview.com
Contact Info:
bkeyworth@bsmreview.com

29. Getting to Business Value through IT:
BSMReview.com 2011 Survey Findings
Michele Hudnall
Solution Marketing
February 29, 2012

30. New Technologies (Change)
Mean New Complexity
Virtualization Cloud
“Anything” as a Service Mobile devices

31. Complexity
Decreases Value
Virtualization Cloud
Downward
Pressures on
Achieving Success
“Anything” as a Service Mobile devices

32. IT Departments Are Under Great Pressure
Growing list of
alternatives
32

33. STRATEGY
Secure
Manage
Measure
PHYSICAL
VIRTUAL
CLOUD
Allows you to securely deliver, manage and measure computing
services across physical, virtual and cloud computing environments

34. SOLUTIONS
Identity, Security
Data Center and Compliance
Management Management

35. Operations Center
Transforming IT to Drive Value and Competitive Advantage
“Giving IT the ability to answer:”
• Are we open for business?
• How well are we performing?
• What is my current risk of outage?
“driving an organizations performance with technology requires the
ability to transform the sea of technical data into
actionable, intelligent information .”

36. What IT Needs is Control
Key Value. . . Transforming Data into Actionable, Intelligent Information
Delivered Through a
Single, Consolidated View of
Service Performance
Asset Data Business KPIs
Service Desk Configuration
1. Are we open for business?
2. How well are we performing?
Performance Availability
3. What is our current risk?
36 © 2011 NetIQ Corporation. All rights reserved.

37. What Makes it Compelling?
Orders to Cash – Open for Business & Performing – It’s Simple
“A Picture is Worth a Thousand Words”
IT Making
a Difference
37 © 2011 NetIQ Corporation. All rights reserved.

38. Business Value –
Operations Center
It’s about the Service – It’s all about the Business
Deliver
Service Measuring
Operate Control
Service Monitoring Service Mapping
Management
Technology Performance
Configuration Service Desk
and Availability
Applications
Infrastructure
Physical Virtual Cloud
38 © 2011 NetIQ Corporation. All rights reserved.

39. Operations Center
Many Roles – Many Views – Configurable by Role
Network Services
SLA Compliance IT Management
Service Impacting Events Cost Organizations
Order Processing 1 – 2% of Revenue Annually Availability Management
Multi Metric Monitoring
39 © 2011 NetIQ Corporation. All rights reserved.

40. Large enough to deliver,
small enough to care.
Large
$350 Customer Strong Technical
Focused
ISV Million Service Vision Expertise
www.netiq.com/BSM

41. This document could include technical inaccuracies or typographical errors. Changes are
periodically made to the information herein. These changes may be incorporated in new
editions of this document. NetIQ Corporation may make improvements in or changes to the
software described in this document at any time.
Copyright © 2011 NetIQ Corporation. All rights reserved.
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