Governance and Risk Management Live

1. Governance and Risk Management Live 5 June 2007Emirates Stadium, London Template Documentation

2. IBM Service Management Norm Wilkinson Service Management Leader IBM Tivoli Software UK, Ireland and South Africa

3. Agenda • Today’s Challenges • Introducing IBM Service Management • Incremental Initiatives • Cost Take-out and Efficiency Improvement • CMDB – Centralize and Converge Asset Management • IT Process Automation • IT Alignment to Business • A Roadmap – How to get started

4. Delivery & Support Operating Capital P & L Operating Budgets Investments Controls Revenue Profit Market Share Market Conditions Shareholder Return 2 4 Drivers 1 Customer Retention Customer Acquisition Products & Services Business Performance Routes to Market Competitive Advantage Initiatives 3 Today’s Challenges

5. Business Service Management • ITIL Process Management • Service Level Management • SOA CHASM • Applications/Portal Management • Transaction Performance • IT Life-Cycle Management Today’s Challenges Crossing the Chasm Resource Management Service Management Hi Tactical Strategic Transformation Complexity Point Solutions Fragmented Approach SILO’s Legacy Low Processes Maturity Lack of Standards and Centralisation Many IT organisations are HERE today but seem unable to move forwards • Data Availability/ Privacy • Disaster Recovery • Risk Management • Assets & Inventory Value to IT Operations • System/Device Availability • Network Availability • Storage Availability • Application Availability • OS Availability Lo Value to the Business Hi

6. People, Process & Technology Technology • Open • Integrated • Visualised • Virtualised Creating a Service-centric culture and IT environment aligned to Business People • Interconnected for collaboration • Service culture • Operating efficiencies • Productivity gains IBM Service Management Information Process • Standardized • Centralised access • Federated • Secure • Best Practices integrated • Process framework • Automated via workflow • Customisable

7. Manage what lies beneath a ‘Business Service’ Identities and Access Business Processes Service Level Agreements Business Service Capacity Server Pool Storage Infrastructure Applications Transaction Performance

8. IT SERVICES Business Transaction Performance Capacity Usage FUNCTION Security Availability Compliance Change People, Process & Technology Business & IT Infrastructure Data is collected & analysed in real-time from anywhere in the enterprise, ISM monitors & collects IT capacity, performance, availability, security or governance performance & status data from anywhere Monitor Discover Collect Visualise Measure Relate Analyse IT Service Matrix - Availability, Performance & Capacity VOIP Network Server Application DOMAIN Database Asset Storage Mainframe Business Metrics - Capacity, Cost & Quality ISM aligns the IT Matrix with Business Metrics ISM can identify where the asset is & what it does and costs When there’s a problem we can pinpoint where it is & cost the impact. ISM then automates & prioritises IT services & problem resolution based on the individual circumstances of the user, process or transaction ISM automates the discovery of relationships & dependencies of business services, transactions & processes to the underlying IT infrastructure.

9. 100 90 80 70 60 50 40 30 20 10 0 100 90 80 70 60 50 40 30 20 10 0 100 90 80 70 60 50 40 30 20 10 0 IT Operating Costs IT Operating Costs Operating Efficiency Operating Efficiency 100 90 80 70 60 50 40 30 20 10 0 IT Operating Costs Operating Efficiency IT Operating Costs Operating Efficiency Incremental Initiatives facilitate progress to the next level IT Process Management Products % • Cost Take-out & Efficiency Improvement • CMDB – Centralize and converge asset management • IT Process Automation • IT Alignment to Services IT Value to the Business IT is a Strategic Partner IT Value to the Business Cost Reduction Service Improvement IT is a Service Provider Technology Focus IT is a Cost Centre Technology Focus Business Focus

10. Total IT Spending on IT Internal Staff (Gartner) Service Desk 10% System & Networking Management 13% IT Administrative Staff 17% Advanced Technology Group, Planning, Architecture 4% Hardware Support / Maintenance 18% Project or ProgramManagement 7% SoftwareSupport / Maintenance 18% Software Application Development 14% Cost Take-out and Efficiency Improvement Reduce Costs and Manage Complexity • Overall IT Budgets are growing on average 4.6% CGR • IT operational labour spend is growing at 10% CGR • IT metrics including staff/server and staff/user are constant with growth • IT operational labour spend in 2007 will be US$ 260 bn

11. Cost Take-out and Efficiency Improvement ROI of Service Management Reduce Costs and Manage Complexity IT Operating Budget Savings • Reduce Labour Costs through improved productivity, efficiency and automation • Rationalise tooling and skills • Centralise IT management and IT information • Improve collaboration • Improve fault finding and repair • Align IT silos to service • Fund more development Infrastructure Infrastructure Operating Cost Current Portfolio Current Portfolio New Development New Development Current State Desired State

12. Desktop Experts and Tools Network Experts and Tools Application Experts and Tools Database Experts and Tools Server Experts and Tools Systems Experts and Tools Mainframe Experts and Tools Cost Take-out and Efficiency Improvement Reduce Costs and Manage Complexity Foundational issues and what can be done • Improve end-end capability • Rationalisation of tools • Bridge functional gaps • Reduce outages caused by change impact • Productivity Gains • Reduce operating costs • Availability improvements Application Layer MQ Middleware Layer Series System Layer Network & Device Layer

13. Desktop Experts and Tools Network Experts and Tools Application Experts and Tools Database Experts and Tools Server Experts and Tools Storage Experts and Tools Mainframe Experts and Tools www MTTR MTTR Cost Take-out and Efficiency Improvement Reduce Costs and Manage Complexity Skills Process Desired State: • Reduce cost and time to resolve problems • First time resolution at root cause • Reduce No. of incidents/ problems and load on Service Desk • Structured process aligned to ITIL best practices • Proactive management • Change related outages eliminated Current State: • Cost and time to resolve problems is high • Focus on restart not fix - Reactive • Risk of recurrence • Changes impact service availability • Lack of process Availability Management Labour Cost Change Management Service Level Management Change Management Security Management Information Lifecycle Management Release Management Sense Isolate Diagnose Take Action Evaluate Sense Isolate Diagnose Act Evaluate Time

14. Cost Take-out and Efficiency Improvement Reduce Costs and Manage Complexity • Operator response centre for management of events coming from a variety of sources • Rules-based engine for correlating and analysing events • Proactively acts to address situations before they become problems • Accelerates problem resolution by guiding support to the relevant problem • Reduces the number of problems to deal with • Escalation and Notification capabilities • Fewer operators can handle larger environments • Lower reliance on skilled/experienced operators • System performance & availability are improved • Reduces Total Cost of Ownership Tivoli Enterprise Console - Event Management Event Stream Filtering Event filtering suppresses duplicates but operators must still figure out what to fix Correlation Event correlation automatically determines root causes.

15. Situation Analysis Expert Advice Graphical views of Infrastructure Policies & Workflow 3270 Browser External Tools Cost Take-out and Efficiency Improvement Reduce Costs and Manage Complexity Tivoli Enterprise Portal – end to end management from a single, central point • Integrates multiple Tivoli management products under a common GUI • Adds personalization, event and status management, workflow automation, expert advise, 3rd party integration and more… • Access to all IT components from one place • Effective and productive working environment for individuals • Better leverage of technical specialists and promotes collaboration • Improves efficiency and reduces time to resolve common system problems and outages

16. CMDB – Centralise and Converge Asset Management Foundation of Effective Service Management Applications: Service Desk - Asset Management - Process Management Process Runtimes: Collaboration - Workflow - Escalation - Reporting - Security - Export Service Level Mgt CCMDB Contract Management Incident Management Financial Management IT Assets Non-IT Assets Problem Management Work Management Configuration Management Inventory Management Change Management Safety Management Datacentres, Offices Plant, Fleet, Property Release Management Materials Management Processes Processes Reconciliation - Synchronization - Federation Discovery Other Data Sources

17. CMDB – Centralise and Converge Asset Management Multiple Entry Points into CMDB maturity CMDB Stage 1 CMDB Stage 2 CMDB Stage 3 Discovery Workflow and Processes Federated Enterprise Adaptor Federation Third Party data sources

18. CMDB – Centralise and Converge Asset Management Discovery – Integrated Change and Configuration Management • 80% of business service related failures are due to IT changes that had unpredicted impacts. • IT must manually identify relationships and dependencies between applications and the supporting infrastructure, which is typically undergoing change every day. • Automated Agent-less Discovery–Fully automated application mapping and device discovery for unified view of configuration items in a CMDB • Audit and Control –Manage the change process and provide record of change as a checkpoint for compliance and audit requirements • Integration–Provides an integration point for other IT Service Management processes and management data

19. CMDB – Centralise and Converge Asset Management Discovery of infrastructure components and applications Tivoli Application Dependency Discovery Manager (TADDM) • Visibility of assets (CI’s) • Relationships between components • Deep configuration details • Change detection and reporting • Comparisons against standards • Populate CCMDB and Business Service Views

20. CMDB – Centralise and Converge Asset Management Discovery of infrastructure components and applications • Visibility of assets is crucial • Relationships between components • Deep configuration details • Change detection and reporting • Comparisons against standards • Populate CCMDB and Business Service Views

21. CMDB – Centralise and Converge Asset Management Discovery of infrastructure components and applications • Visibility of assets is crucial • Relationships between components • Deep configuration details • Change detection and reporting • Comparisons against standards • Populate CCMDB and Business Service Views

22. CMDB – Centralise and Converge Asset Management Discovery of infrastructure components and applications • Visibility of assets is crucial • Relationships between components • Deep configuration details • Change detection and reporting • Comparisons against standards • Populate CCMDB and Business Service Views

23. CMDB – Centralise and Converge Asset Management Discovery of infrastructure components and applications • Visibility of assets is crucial • Relationships between components • Deep configuration details • Change detection and reporting • Comparisons against standards • Populates CCMDB and Business Service Views

24. CMDB – Centralise and Converge Asset Management Discovery of infrastructure components and applications • Visibility of assets is crucial • Relationships between components • Deep configuration details • Change detection and reporting • Comparisons against standards • Populates CCMDB and Business Service Views • Use inside TEP and launch in context from CCMDB

25. Virtual Topology (Guest – Host OS Relationships) CMDB – Centralise and Converge Asset Management Discovery of VM infrastructure components and applications

26. CMDB – Centralise and Converge Asset Management Discovery of SAP infrastructure components and applications • Automated, complete and comprehensive visibility into SAP applications and supporting infrastructure • Allow customers to ensure SAP application availability and performance • Proactively understand impact of changes • Track changes in infrastructure configuration to reduce performance troubleshooting times • Ensure consistency within SAP application infrastructure • Leverage ISM solution portfolio to provide “service-centric” management of SAP applications SAP Coss-Tier Topology

27. CMDB – Centralise and Converge Asset Management Discovery of z/OS infrastructure components and applications • z/OS Discovery Library Adapter includes System z resources • LPAR • z/OS • IMS • DB2 • CICS • MQ • WebSphere • Discovery IP networking resources from NetView z/OS • Info/Man incidents affecting computer systems • Context sensitive launch to OMEGAMON XE Only IBM provides end-end Distributed to Mainframe discovery and CMDB feeds

28. CMDB – Centralise and Converge Asset Management Discovery of infrastructure components and applications External Applications API CCMDB Server Configuration Inter-relationships 3 2 Data Center Reference Model Discovery Engine & Sensors CCMDB Run-Time Environment CCMDB Client 1 IDD Device Identity Basic credential less discovery of devices (no relationships) 1 Basic discovery of systems and applications 2 Deep discovery of systems, applications, configurations, interrelationships credential less discovery of devices 3

29. Discovery works effectively across firewall zones through transparent ‘Anchor Servers’ Discovery across firewall zones within the domain • Secure, scalable solution • One anchor server per adjacent firewall zone for discovery relay Anchor server coordinates local discovery sub-system • Performs local discovery in the firewall zone and presents the result to the TADDM server for consolidation Anchor communicates to TADDM server via SSH • Open a secure SSH port in the firewall to relay information to and from the Central TADDM Server - no need to open proprietary holes or support insecure HTTP communication traffic. Firewall Central TADDM Server TADDM Database CMDB – Centralise and Converge Asset Management Discovery of infrastructure components and applications

30. Windows Gateway TADDM Database TADDM Server CMDB – Centralise and Converge Asset Management Discovery of infrastructure components and applications Discovers Windows/.NET application infrastructures with secure Windows Management Interface (WMI) protocol Requires a dedicated Windows Gateway Server to proxy TADDM Server discovery protocols to the WMI protocol to discover remote Windows infrastructure SSH communication between the TADDM server and the Windows Gateway

31. IT Process Automation IT Process Management Products IBM Tivoli Unified Process – shows how to make ITIL actionable….

32. IT Process Automation Key Service Support Processes

33. IT Process Automation Unified Process Platform • Service Desk function as SPOC for system and/or user incidents. • Process automation enables IT organizations to manage the critical IT processes needed to deliver optimal service. • Dynamic and seamless access to asset (CI) details. • Asset Lifecycle Management for IT and non-IT assets. • Workflow driven based on ITIL templates with workflow configurator.

34. Visibility of Performance Metrics and SLAs IT Process Automation • Configurable role-based Start Center portlets • Real-time KPI-based dashboards • Seamless integration of ITIL-based processes • Configurable graphical representation

35. IT Process Automation Process Workflow Flexibility • ITIL Based process templates Out of the Box • Integrated Workflow Designer • Highly configurable • Role-Based Activities & Tasks • Role-Based Interactions • Concept of Ownership

36. IT Process Automation Process User Interface Flexibility without programming • Database Configuration & Application Designer • Built-in Tools • Easy and Quick to use by all authorised end-users • Configure UI, dashboards, KPIs, reports, create new applications and more…

37. Business Service 2 Business Service 4 Business Service 5 Application Layer MQ Middleware Layer Series System Layer Network & Device Layer IT Alignment to Services Lines of Business Service visibility and intelligence is vital Business Service 1 Service ABC

38. Business Perspective “We are meeting our Service Levels” IT Perspective MQ Series Series MQ Composite Effect/ User Experience 105.50 99.750 “The business cannot sustain these outages” IT Alignment to Services Service visibility and intelligence is vital Service ABC – Statistics for 1 month (SLA Threshold is 99.9% availability) Component Downtime % Availability (min : secs) Microsoft IIS Server 0:00 100.000 Microsoft SQL Server 4:32 99.990 Microsoft Windows Server 7:54 99.982 Lotus Domino AIX Server 6:00 99.986 IBM AIX MQ Server 0:00 100.000 Apache Web Server 8:64 99.980 No Good Switch 69:12 99.840 CISCO Switch 9:88 99.977

39. IT Alignment to Services Visualise Services and Health Status Service visibility and intelligence is vital Real-time Business KPI’s Business KPI’s Business Process Lines of Business Applications Database Service Service Managers Transactions LAN Infrastructure IT Operations Data Centre

40. IT Alignment to Services Service performance is vital for End User Experience Do key transactions complete within service thresholds? • Synthetic Transactions – schedule or On Demand • Test transaction performance • Identify points of degradation or failure • Simulate business impact • Real Transactions LIVE!

41. A Roadmap and How to get Started Incremental Initiatives facilitate progress to the next level Integration end-end Business Process Automation with Best Practices Manage by Business Metrics Enterprise federated CCMDB PHASE 1 PHASE 2 PHASE 3 Desired State Rationalization of point solutions Align IT technical silos to Business Business Service Management & Dashboards Change, Configuration & Release Automate SLA’s • Incremental Initiatives • Investments for new projects are subsidised by savings generated by earlier ones • Self-funding mechanism to enable progressive movement from one level to the next Quick Wins Bridge Functionality Gaps Core Systems Management Event Correlation Incident & Problem Mgt Discovery & Basic Change Initial CMDB IT Value to the Business Current State Level 1 Basic Level 2 Managed Level 3 Predictive Level 4 Adaptive Level 5 Autonomic Technology Focus Business Focus

42. A Roadmap and How to get Started IT Process Management Products Service Management – The Drive to Value IT VALUE BUSINESS Customer retention Customer acquisition Response to change in the market Response to new opportunities Time to Market Routes to Market Competitive advantage IT efficiency & productivity gains Centralization Standards Integration Service Management culture Best Practices Utilization improvement Process Automation IT aligned and responsive to business Focus on service Manage and measure by service Optimization through automation High availability & performance Compliance assurance Value for money Service = Expectation Cost Efficiency Scalable model Ability to fund innovation Vision Partnership & Trust Mutual value Agility to prosper from change Focus on growth not operation Returns on Investment

43. Approach A Roadmap and How to get Started IBM as a strategic Service Management Partner Implementation/ Project Management Service Management Toolset Transformation Management IBM Solution IBM Solution Skills Transfer Process Management Service Management

44. A Roadmap and How to get Started Focus on initiatives that deliver value today and contribute to the ‘Big Picture’ • ISM Workshops at IBM Hursley - 21 Jun, 20 Sep, 22 Nov • ISM Self-Assessment Tool • ISM Workshop Onsite – A Critical Business Service Review • Tivoli Assurance Programme (TAP) Study • ISM Quick Start Services Packages • ITIL Implementation Services…….

47. Governance and Risk Management Live Template Documentation