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Business Service Management The intelligent way to communicate service performance of complex infrastructure aligned with business objectives. Erin Quill ITOM Evangelist equill@netiq.com. Agenda. Evolution of Management Insuring IT is Business Driven Operations Center Customer Examples

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slide1

Business Service Management The intelligent way to communicate service performanceof complex infrastructure aligned with business objectives

  • Erin Quill
  • ITOM Evangelist
  • equill@netiq.com
agenda
Agenda
  • Evolution of Management
  • Insuring IT is Business Driven
  • Operations Center
  • Customer Examples
  • Talking to Customers
service level agreement sla
Service Level Agreement (SLA)

A contract between a service provider and a customer that specifies, usually in measurable terms, what services the network service provider will furnish.

  • Percent of time services will be available
  • Number of users that can be served simultaneously
  • Specific performance benchmarks to which actual performance
  • Help desk response time
  • Penalties for not meeting guaranteed levels
  • Usage statistics
golden age of it management
Golden age of IT Management
  • One number to call
  • Answer in minutes
middles ages
Middles Ages
  • Servers grouped together
  • Could physically see problems
  • Multiple Vendors to call
modern servers
Modern Servers
  • Virtualization
  • Blade Servers
  • Physical location can change based on need
today s services
Today’s Services

Secure

Manage

Measure

PHYSICAL

VIRTUAL

CLOUD

Today’s services will run in a mixed physical, virtual and cloud. The location of an individual services can dynamically change based on availability and compute requirements.

today s management
“Sprawling”

Databases

Servers

Applications

Networks

Monitored in Silos

Performance

Availability

Capacity

Traffic

Doesn’t Correlate

Creates Risk

No View of Impact

Costly Diagnosis

Costly Downtime

Today’s Management

Lightly integrated silos

It’s a jungle out there…

How can you stay ahead of the chaos?

slide10

August 16, 2007 2:00 pm

LAX Customs

Customs Processing Fails

95 Arriving Flights

17,386 Passengers

12 Hours

Bad Nic

how could it have been different
How could it have been different?
  • Live Dashboard showing # of

people being processed

  • Map of US showing all Passport control centers with color based on # of people being processed compared to averages
  • Status of the Passport Service
    • Includes all components needed to service to be up
operations center transforming it to drive value and competitive advantage

Are we open for business?

How are we performing?

What is my current level of risk?

Are we operating efficiently?

Operations CenterTransforming IT to Drive Value and Competitive Advantage

“Giving IT the ability to drive an organizations performance with technology and answer:”

This requires a solution that transforms the sea of technical data into actionable, intelligent information.

quick fire exercise introduction to netiq noc
Quick Fire ExerciseIntroduction to NetIQ NOC

What is a Service

What happens when you don’t have a complete view of everything that makes up a service

How have things changed to make the viewing of services more complicated

top cio operational challenges the great divide
Top CIO Operational ChallengesThe Great Divide!

I’M FOCUSED

ON:

I’M WORRIED ABOUT:

  • Growth and innovation
  • Alignment to common IT/business objectives
  • Market agility
  • Optimization and cost reduction
  • Cost to manage new technologies
  • Complex measurements
  • Risk due to speed
  • Trying to do more with less!

Increasing complexity fromphysical, virtual and cloud delivery options anda multitude of management technologies

the new it driving value and competitive advantage counts
The “New IT”Driving Value and Competitive Advantage Counts

Mission:

  • Help Board of Directors See the Competitive Advantage
  • Communicate Value Delivered – Not Technology Performance
  • Move from Operating to Powering the Business

“52% of Board Members rate ‘maintaining competitive advantage’ of ‘extremely high importance’…”

only “16% of Board of Directors have any experience in IT”

Gartner Forbes 2011 Survey of Board of Directors

NACD (National Assoc. of Corporate Directors)

2011 BSMReview Survey

Leading Industry Analyst

“65% of Board Members hold ‘high to very high’ expectations for IT strategic contribution to the business in 2012”

Gartner Forbes 2011 Survey of Board of Directors

it departments are u nder g reat pressure change complexity risk
IT Departments Are Under Great PressureChange – Complexity – Risk

Things are Virtual

and mobile

Growing list of alternatives

Budgets are shrinking

The cloud is here

The Disrupter

it is transforming into service brokers business is driving the new it
IT is Transforming into “Service Brokers”Business is Driving the “New” IT

IT departments are increasingly multi-source, hybrid orgs, taking on the role of “services brokers”

IT departments want to manage internal and external services as a unified portfolio

Capabilities, and outcomes, rather than assets

IDC Forecast: By 2013, 52% of IT budgets will be dedicated to “OUTSOURCED IT” – ASP, Public Cloud, and Enterprise/Hosted Private Cloud

so how is it doing today typical report card of a c or d
So… How is IT Doing Today?Typical "Report Card" of a C – or D +

Deliver: Efficiency and Effectiveness

SLA Reports : Manual, not trusted

Cost of Report : 10 Days / month

Service Value ROIs : Non-existent

85%

of IT operations budgets are spent maintaining and reacting!

85%

Operate: Performance and Availability

Downtime : 1 – 2% Revenue

Customer Reported : >70%

Process Errors : >80%

Control: Risk and Compliance

Emergencies : >50% of Changes

Failed Changes : >50%

Automated Audits : Non-existent

1 – 2% of Revenue Just

“Keeping the Lights On”

what s the impact of a poor grade
What’s the Impact of a Poor Grade?
  • On average, every hour of down time equates to a loss of $100,000 – and most organizations experience 10 hours of downtime, or $1M/year
  • A single, severe outage can be as high as 1-2% of revenue – regardless of company size
  • With 85% of IT budgets spent on maintaining and reacting, companies are losing 1-2% off their bottom line

Do Not Have Visibility of Impact to the Business!

so how could it be doing today report card of a b or better
So… How Could IT Be Doing Today?Report Card of a B+ or Better

Deliver: 75% Impact Avoidance

60%

of IT operations budgets are spent maintaining and reacting!

60%

$100,000 / hour – 10 hours / Year – $1M/Year

Avoid and shift 1-2% of Revenue to Growing

Operate: 90% Diagnosis Reduction

Operating Business to Powering Business

Control: 30% Efficiency Improvement

1-2% of Revenue Maintaining and Reacting

Shift by 25-30% ~1% Revenue to Growing

what it needs is control
What IT Needs is Control

Delivered Through a Single, Consolidated View of Service Performance

Asset Data

Business KPIs

Service Desk

Configuration

Performance

Availability

the answer
The Answer

Business Service Management is the practice of enabling IT to communicate service performance aligned to business objectives, while maintaining control over the infrastructure.

1 – 2% Revenue

Just Keeping the Lights On

1 – 2% Revenue

Service Impacting Events

Service Monitoring

Service Mapping

>80% of Downtime

Due to Poor Process

Service Measuring

business service management
Business Service Management

Here’s a simple analogy:

If your business is like a high-performance car…

…then Business Service Management is your instrument panel – giving you the insight

and visibility to maintain your performance

gauging service performance
“Gauging” Service Performance

Configuration

Availability

Performance

Availability

Configuration

The “instruments” all communicate service performance –early warning indicators to help avoid service outages and collateral damage (stopping the car before it overheats and STOPS!)

find the right it balance
Find the Right IT “Balance”
  • More than ever, CIOs are challenged with “balancing” between operating and growing
  • Emphasis has been on maintaining existing IT infrastructure and responding to outages
  • Focus must shift to automating operational functions and applying IT to help grow business

Operating

Growing

quick fire exercise introduction to netiq noc1
Quick Fire ExerciseIntroduction to NetIQ NOC

What are some of the things that keep Senior management up at night

What is a typical starting point for a NOC project

What is BSM

Why is IT getting a poor grade today

novell operations center
Novell® Operations Center

Operations

Center

Business Service Management

service monitoring customer s concerns
Service Monitoring - Customer’s Concerns

Pain Points

  • 70% of problems are reported by their customers first!
  • Management consoles are silos
    • Glimpses into issues without knowing real business impact
  • 80% of services issues caused by people and process not broken hardware
  • 85% time and money spent on maintaining existing systems
  • Cost of not changing
    • Outages cost 1%-2% of annual revenue
operations center delivering service quality
Operations CenterDelivering Service Quality

Prioritization

Impact

Analysis

Diagnosis and

Root Cause

Turning technology to services

Service Monitoring

service monitoring key value to customer
Service MonitoringKey Value to Customer
  • Consolidate information from existing IT management tools based on Business Services
  • Real-time performance and availability dashboard
  • Prioritize service performance and response in alignment to business objectives
  • Quickly pinpoint the root cause to restore service availability
  • Reduce service impacting
  • Monitor services in terms of the value of the business transacted
service measuring customer s concerns
Service Measuring - Customer’s Concerns

Pain Points

  • SLA Between
    • Business users and IT
    • IT and outsourced services
  • Generating SLA reports are manual process taking up to 10 days
  • SLA reports are typically historical information not actionable
  • SLA don’t include ITs value and ROI for technology
operations center communicating service achievement
Operations CenterCommunicating Service Achievement

Service-level

Management

Real-time Service

Performance

Trend Analysis and

Service Improvement

Turning technology to services

Service Measuring

service measuring key value to customer
Service Measuring Key Value to Customer
  • Manage SLA compliance in real time and historically
  • View information based on business context
  • Provide predictive early warning to SLA non-compliance
  • Define and manage SLAs in terms that the business understands
  • Common dialog between IT and the business
  • Leverage SLA history to predict future
service mapping customer s concerns
Service Mapping - Customer’s Concerns

Pain Points

  • Every change to services increase vulnerability
  • Over 50% of changes are ‘emergencies’
  • Maintaining standards and change control is difficult and costly
  • Change control not automated
  • Audits and regulation control
    • Manual
    • Time intensive
    • Error prone
operations center meeting service compliance
Operations CenterMeeting Service Compliance

Service Impact

Analysis

Relationships and

Dependencies

Standards and

Change Control

Turning technology to services

Service Mapping

service mapping key features
Service Mapping Key Features
  • Map technology to applications and business policies
  • Initial configuration models by integrating with multiple management technologies to discover items and relationships
  • Ensure compliance to standards and policy
  • Mitigate the risk of IT changes affecting mission critical service
  • Reduce failed changes by 50% or more
  • Demonstrate compliance with regulatory requirements
quick fire exercise introduction to netiq noc2
Quick Fire ExerciseIntroduction to NetIQ NOC

Give me a 30 second elevator pitch

Explain to me the value of NOC

Present one of the capabilities of NOC

What is Service Measuring

What is Service Monitoring

operations center key features
Integration: extensible and configurable

Intelligent: service models are state driven

In-Memory Data: accessed once, used often

Multi-Tenancy: built-in from inception

Service Views: real-time and actionable

Scalable:largest, most complex - >2M objects

Operations CenterKey Features
business roles
Business Roles

Kelly

Service Manager

Jim

Operations Manager

Ron

Business Manager

Services

Service Levels

Networks

Servers

Value

Competition

Targets

Applications

Storage

  • It's available and green....
  • I have 10 severity 1's, which one first?
  • What's causing the problem?
  • Support more with less!
  • What changed?
  • Why did they crash today?
  • Not all services are equal!
  • Conditions and priorities change
  • It may be running – it isn’t performing well
  • Why are customers reporting problems first?
  • Who cares if the “cloud” provider is down?
  • How effective is IT – what is the IT value contribution?
  • How efficient is IT – drive down operating costs
  • We need to innovate faster than our competition
  • Technology driving top line, not just cost at the bottom line
differentiators
Differentiators
  • Time to show value
    • Usually in just a week or two – Full implementation in 90 days
  • Configurable, extensible, bi-directional integration
    • Data resides where in original location
  • Intelligent service modeling
    • Bring all info about business together
  • Live, role based actionable dashboard
operations center packaging overview different license model from am
Operations CenterPackaging Overview – Different License Model from AM

Operations Center

All In

  • Monitoring, Mapping, Measuring
  • Production Instance
  • Non-Production Instance
  • 3 Integration Modules

$325 K

Project Pain Starters

$150 K

Service

Mapping

Service

Monitoring

Service

Measuring

  • Features:
  • CMS
  • 1 Integration Module
  • Features:
  • Experience Manager
  • Event Manager
  • 1 Integration Module
  • Features:
  • Service Level Manager
  • 1 Integration Module
quick fire exercise introduction to netiq noc3
Quick Fire ExerciseIntroduction to NetIQ NOC

What Buyer would be most interested in NOC

What is a typical starting point for a NOC project

Name on of the main questions NOC allows business to ask themselves

How long does it typically take to show value

case study manufacturing business value delivered
Challenge

$6.4M in revenue impacted due to 64 hours re-order kiosk outages

Customer satisfaction impacted – take their business elsewhere

Solution

Provided real-time, root-cause analysis

Automated manual reporting process for service-level monitoring

Benefits

Higher kiosk availability = increased revenue

Reduced resource costs

Improved customer satisfaction

Case Study: ManufacturingBusiness Value Delivered

Service Monitoring

case study service provider business value delivered
Challenge

Introducing new high definition TV, on-demand video and time shift capabilities

Competitive market where customers can discuss service openly in public

Needed direct, real-time and proactive control over the customer experience

Solution

Real-time business service dashboards of business performance

End-to-end view of the complex infrastructure

Benefits

Rapid deployment, easy to integrate systems and provide a top-down view

Real-time control over service levels for prioritization

Real-time view of infrastructure aligned to business objectives

Minimizes risk, improves service quality and internal efficiency

Case Study: Service ProviderBusiness Value Delivered

Service Measuring

case study financial institution business value delivered
Challenge

Had a CMDB without the ability to monitor change and change compliance to standards and policy

Needed to meet BS15000/ISO20000 audit

Monitoring systems were not connected to the CMDB

Solution

Live view of services in a single-pane-of-glass

Speed to root-cause, automated prioritization and speed to restore

Change management compliance and adherence

Benefits

Audit attainment with automated configuration and change compliance

Case Study: Financial InstitutionBusiness Value Delivered

Service Mapping

follow the money
Follow the money

Know the Key Service that drives the business of the customer

talk at the right level
Talk at the Right level
  • Senior IT Executive (CIO, CTO, VP)
    • Live view of how many widgets are being sold/created…
    • Business Service Management message resonates at this level
  • Director or VP of IT Operations
    • Downplay the overall BSM message to focus on Monitoring project based capabilities
    • Avoiding service impacting events
    • Speed to problem restoration
    • Prioritize align with business objectives
    • Managing outsourced services
business service management made easy start with a project grow sideways or up
Business Service ManagementMade Easy! Start with a Project Grow Sideways or Up!

Use Current

Investments

Real-time

Integration

45 – 60 Days

to Value

Service

Monitoring

  • Availability
  • Performance
  • Prioritization
  • Root Cause
  • Impact Avoidance
  • Service Quality

Service

Measuring

Service

Mapping

  • Relationships
  • Dependencies
  • Impact Analysis
  • Change Control
  • Standard Configurations
  • Service Compliance
  • Real-time Services
  • Service-level Management
  • Trend Analysis
  • Service Value
  • Service Improvement
  • Service Communication

Deliver Service

Quality

Service-at-a-Time

Communicate Service

Achievement

Meet Service

Compliance

Service Monitoring

Service Measuring

Service Mapping

operations center so what what are others saying
Operations CenterSo What . . . What are others saying?

http://www.enterprisemanagement.com/research/asset.php?id=1776

quick fire exercise introduction to netiq noc4
Quick Fire ExerciseIntroduction to NetIQ NOC

What Buyer would be most interested in NOC

What types of project is a good candidate for NOC