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Welcome!
Enabling your service desk to be the
front face to IT
Tim Rochte         Eveline Oehrlich
                   (Hubbert)
Senior Product
Marketing          Principal Analyst
Manager
                   Forrester
Nimsoft
                                                           Page 1
                                       © nimsoft, all rights reserved
The Technology of Efficient IT

Tim Rochte
Nimsoft Product Marketing

                                                     Page 2
                                 © nimsoft, all rights reserved
People and Process need Technology



                                Consistent
             Knowledge           Interface
             of business
              services


                           Normalized
                            metrics




           Nimsoft Unified Manager
                                                                 Page 3
                                             © nimsoft, all rights reserved
Nimsoft Unified Manager
Service Management for Modern IT



                                   Bullet-proof
                                   service management
                                   processes


                                   Broadest set of
                                   technology
                                   monitoring




                                   Unified
                                                                         Page 4
                                                     © nimsoft, all rights reserved
Solution Overview




                                        Page 5
                    © nimsoft, all rights reserved
Nimsoft Service Desk




                                           Page 6
                       © nimsoft, all rights reserved
Benefits for your organization
› Configure don’t code                     Adaptable workflow
  » Workflow is 100% configurable        allows you to meet your
  » No programming skills required       specific business needs
                                          without custom code
  » Configuration not lost in upgrades
› Simple Pricing Model                          Simple
  » Pay per user                           implementation
  » Fixed or floating licenses           shortens your time to
                                                 value
  » Free end user access
› Cost Savings                              Seamless upgrades
  » Automated Free Upgrades               make it possible to get
                                         the latest improvements
  » No Infrastructure Required             without ripping apart
                                           your implementation



                                                                            Page 7
                                                        © nimsoft, all rights reserved
Benefits for your users
› Workflow focuses on actions
  » Tell Nimsoft Service Desk what to do, don’t guess based on
    status changes
› Tried and True Interface for Service Desk Agents
  » High Throughput, Multi-Window design
    - Keep individual Incidents, Change Requests, etc. open while
      working in other parts of the system
  » Easy to use Portal Web Interface
  » Available anywhere anytime
› Self Service available by
                                                   Automatic incident
  web or e-mail                                     creation lets you
                                                   proactively address
                                                    potential service
                                                      interruptions


                                                                                     Page 8
                                                                 © nimsoft, all rights reserved
Real World Proven
› Scalability
  » Publishing company with worldwide presence
     -   50+ countries, 1000 calls per day – 300,000 customers
     -   Cut costs 25% - To production in 4 weeks

› Lower TCO
  » IT Services & Compliance
     -   15 agents, 350 employees, 500 tickets…primary tool for
         managing PCI compliance controls

› Time to Value
  » Customer Service
     -    40 agents, supporting 35,000 external customers, 10,000
         tickets/month… production in 4 weeks

            Service Operations
               » Incident Management
                » Problem Management
                » Request Management
            Service Transition
                » Change Management
                » Service Asset Configuration Management
            Service Design
                » Service Level Management


                                                                                        Page 9
                                                                    © nimsoft, all rights reserved
End user self service




                                           Page 10
                        © nimsoft, all rights reserved
Unified Analyst Screen

Main screen
shows
‘tickets’
relevant to
the user and
basic
dashboard.
Other
modules
available in
one click
along the
left




                                            Page 11
                         © nimsoft, all rights reserved
Configuration Management
                           Search, drill
                           down and
                           graph CMDB
                           items and
                           relationships




                                               Page 12
                            © nimsoft, all rights reserved
Reporting

Reports
displayed in
Nimsoft Service
Desk or exported
to PDF or CSV




                                      Page 13
                   © nimsoft, all rights reserved
Nimsoft Service Desk Benefits


                               Adaptable workflow
   Simple implementation
                             allows you to meet your
    shortens your time to
                             specific business needs
            value
                               without custom code


   Seamless upgrades - get
                              Real world proven ITIL
   the latest improvements
                                and years of best
     without ripping apart
                                practices built in
     your implementation


                                                                     Page 14
                                                  © nimsoft, all rights reserved
Nimsoft Unified Manager


  Common Experience in
                            SaaS or On Premise to
  shared UI and common
                              suit your business
       technology


                              Automatic incident
   Pay as you Go to align
                             creation -proactively
    with your business
                               address potential
           value
                             service interruptions


                                                                   Page 15
                                                © nimsoft, all rights reserved
The People, Process and Technology of Efficient IT
Eveline Oehrlich (Hubbert), Principal Analyst




September 22, 2011




16   © 2011 Forrester Research, Inc. Reproduction Prohibited
       2009
Agenda



 The good news and the bad news

 IT operation teams face challenges

 The components of efficiency

 The roadmap to efficient IT




17   © 2011 Forrester Research, Inc. Reproduction Prohibited
The top business priorities in 2011: Grow revenues,
    acquire customers, and lower costs
“What are your firm’s five (5) most important corporate business priorities over the next 12 months?”
                                     (Multiple responses accepted)

                                Grow overall company revenue                                            64%
                                  Acquire and retain customers                                   54%
                       Lower the firm’s overall operating costs                           44%
                                       Acquire and retain talent                       38%
                  Improve quality of products and/or processes                        37%
                          Improve your customer relationships                        36%
             Improve our ability to innovate as an organization                    32%
                                Improve workforce productivity                     31%
              Drive new market offerings or business practices                   28%
                         Expand into new geographic markets                     27%
                     Improve business flexibility and resilience             21%
              Streamline business operations and consolidate…               20%
                      Comply with government regulations and…           14%
                        Re-engineer core business processes             14%
                    Acquire other companies or divest parts of…       11%
               Improve corporate environmental sustainability…       10%
                 Move costs from capital to operating expense… 3%
                                                   Other priority 1%
       Base: 2,691 business decision-makers and budget holders from companies worldwide with 100 or more employees
          Source: Forrsights Business Decision-Makers Survey, Q4 2010
  18       © 2011 Forrester Research, Inc. Reproduction Prohibited
Business and IT relationship




19   © 2011 Forrester Research, Inc. Reproduction Prohibited
Three forces will have a significant impact on the
 IT-business relationship




                                   2010                        2014   2016   2020
20   © 2011 Forrester Research, Inc. Reproduction Prohibited
Technology drives revenue and innovation and cuts costs
      “How much do you agree with the following statements about technology at your firm?”
        (Respondents selecting “4” or “5” on a scale from 1 to 5 [5 being “strongly agree”])
                                                                 4   5 - Strongly agree
 The executive team is regularly involved in decisions about
                                                                                     34%                       43%
                                    technology investments

Technology is a fundamental element of our business model                          28%                     49%

  Reducing costs/improving efficiency through technology is
                                                                                   31%                         45%
                high on the agenda of our executives/board
  Driving business innovation through technology is high on
                                                                                   31%                    38%
                        the agenda of our executives/board

             Business management understands technology                                   40%             20%

                     IT management understands our business                          35%                 23%

    Business groups’ technology purchases influence other
                                                                                          40%            16%
                                  business groups’ selections
  The executive team won’t invest in technology unless the
                                                                                  26%              17%
             case is driven by business leaders and not by IT
   IT solicits business input on technology investments, but
                                                                                23%              14%
                                 they make the final decision
 Business groups generate ideas using technology to solve
                                                                               20%          7%
                          problems, but few are implemented
Business leaders often make investments in technology and
                                                                             15%      6%
                         services without IT’s involvement
   Base: 2,691 business decision-makers and budget holders from companies worldwide with 100 or more employees
       Source: Forrsights Business Decision-Makers Survey, Q4 2010
 21    © 2011 Forrester Research, Inc. Reproduction Prohibited
The good news: we can spend!
               Forecast: Global IT Purchases On Currency-Adjusted Basis, 2010 To 2012




     Source: January 31, 2011, “2010 To 2012 Global Tech Industry Outlook”
22    © 2011 Forrester Research, Inc. Reproduction Prohibited

          January 2011 “2010 To 2012 Global Tech Industry Outlook”
The bad news: need to reduce the MOOSE




                                                               M_aintenance of
                                                               O_ngoing
                                                               O_perations
                                                               S_ystems and
                                                               E_quipment




23   © 2011 Forrester Research, Inc. Reproduction Prohibited
Reverse MOOSE with IT efficiency to free up time
 and dollars for revenue and innovation activities


     IT MOOSE:
     Maintain
     Ongoing
     Operations
     Systems (and)
     Equipment




      Source: October 18, 2005. “Defining The MOOSE In The IT Room”
24    © 2011 Forrester Research, Inc. Reproduction Prohibited
Improving IT efficiency is top priority
     “Which of the following initiatives are likely to be your IT organization’s top IT management
                                 priorities over the next 12 months?”
                                                                  High priority   Critical priority

                                           Improve the efficiency of IT                     50%                31%

                     Improve or streamline business processes                               48%               29%

             Improve our customer management capabilities                                   49%               27%
                     Increase IT capacity/resources to drive
                                                                                            48%               27%
                                        business innovations
             Increase the scope of IT's centralized or shared
                                                                                           47%               23%
                                                     services
                 Improve the measurement of IT's impact on
                                                                                           47%               22%
                                       business performance
                          Define strategy for risk and compliance                          47%               21%

                         Expand eBusiness or Internet initiatives                       38%            23%
             Improve the sustainability and energy efficiency
                                                                                         40%           15%
                          of IT operations and infrastructure
                        Market the IT department within the firm                        38%           13%
            Improve IT performance by adopting processes
                                                                  36%         13%
                                         like CMM or ITIL
      Base: 2,803 IT executives and technology decision-makers from companies worldwide with 100 or more employees

        Source: Forrsights Global IT Budgets, Priorities, And Emerging Technology Tracking Survey, Q2 2010
25      © 2011 Forrester Research, Inc. Reproduction Prohibited
IT Operation groups face challenges

                                                                                      Business
Service delivery                                                                      demands

                                                      Customer
                                                      satisfaction




                                                                     Justifications

                                          Adoption




                                                                                  Service consumption

New technologies

 26   © 2011 Forrester Research, Inc. Reproduction Prohibited
We could …




     Source: Rudder Finn blog
     http://www.ruderfinn.co.uk/blogs/dotcom/files/2009/06/enviromental-head-in-the-sand.jpg




27   © 2011 Forrester Research, Inc. Reproduction Prohibited
                                                                                               or …
Efficiency                                                         =   People




                                                                                    +




   Technology
28 28 contents © 2010 Forrester Research,Reproduction Prohibited
   Entire © 2011 Forrester Research, Inc. Inc. All rights reserved.
                                                                      +   Process
Efficient IT does much more than
                         reduce IT costs —
                         it also frees up time and money to focus on
                         revenue generating and innovation activities.

29   © 2011 Forrester Research, Inc. Reproduction Prohibited
Examples of Inefficient IT
 (waste of CAPEX and OPEX)

        CAPEX                                                                          OPEX


      Overprovisioning                                           Low ABC-to-IT admin ratios

      Low utilization                                            Low XYZ-to-employee ratios

      Unnecessary redundancies                                   Poor operational best practices

      Misallocation of resources                                 Lack of policy enforcement

      Misallocation of devices                                   Lack of energy management

      Poor needs assessment                                      Inadequate skills

      Overly conservative                                        Inadequate system
                                                                   management
      Inadequate capacity planning


30     © 2011 Forrester Research, Inc. Reproduction Prohibited
Inefficiencies in your IT staff and business users


                                          Poor economies of scale: Typical physical Windows
                                           server/admin ratio —15:1; virtual servers — 50:1; cloud —
                                           10,000:1




                                          Repetitive tasks: On average, 25% to 40% of help desk calls
                                           are related to password resets.




                                          Low-value tasks: Admins resemble boiler watchers when they
                                           get stuck on tasks with no real business value, like monitoring
                                           single servers.


31   © 2011 Forrester Research, Inc. Reproduction Prohibited
Inefficiencies in your software and applications


                                          “Shelfware”: A survey showed half of enterprises were over-
                                           licensed by between 10% and 30%.

                                          Wasted maintenance: Typical maintenance rates average 22%
                                           of the license cost annually, so in a three-year agreement, each
                                           license is 66% more.

                                          Unfulfilled maintenance value: Though far more carried
                                           Software Assurance with upgrade rights to Vista, this never
                                           exceeded 15% of the market.




                                          Misappropriation of funds: A recent survey showed audits rise
                                           from 3% in 2009 to 13% in 2010.

                                          Inefficient expenses: Many audits cost £200,000 or more.

32   © 2011 Forrester Research, Inc. Reproduction Prohibited
Your Roadmap To Efficient IT




33   © 2011 Forrester Research, Inc. Reproduction Prohibited
A framework for improving IT efficiency


Identify efficiency                                                      Define metrics
opportunities

                                                               People
                                                               Process
                                                           Technology



     Remediate                                                           Measure and
                                                                         analyze


34   © 2011 Forrester Research, Inc. Reproduction Prohibited
All of which requires to shift to a modern IT


       1. A “changed” IT organization

       2. An effective understanding of key business services
          and how IT supports them

       3. Integrated, aggregated management of these services

       4. Adoption of best practice framework(s)

       5. A front desk : your customer service team




35   © 2011 Forrester Research, Inc. Reproduction Prohibited
Traditional technology-oriented department




Source: March 11, 2009, “Inquiry Spotlight: Infrastructure & Operations Organizational Structures, Q1 2009”

36    © 2011 Forrester Research, Inc. Reproduction Prohibited
New process/service-oriented department




Source: March 11, 2009, “Inquiry Spotlight: Infrastructure & Operations Organizational Structures, Q1 2009”
Forrester report
37     © 2011 Forrester Research, Inc. Reproduction Prohibited
The new IT organization: the IT enterprise

     Business                                  Business                     Business           Business
       unit                                      unit                         unit               unit


                                                               Business services



                                                   IT enterprise management



                                                     IT process management


          IT service
                                                           IT service transition       IT service delivery
         development

           Source: December 8, 2009, “It's Time For IT Management Software 2.0”
38   © 2011 Forrester Research, Inc. Reproduction Prohibited
Reverse MOOSE with IT efficiency to free up time
 and dollars for revenue and innovation activities


     IT MOOSE:
     Maintain
     Ongoing
     Operations
     Systems (and)
     Equipment




     In 2010: Only 50% of the budget went to IT MOOSE . . . this is good!

39     © 2011 Forrester Research, Inc. Reproduction Prohibited
The management of the service


  Business                   Lead –                          Order-to-cash                       Procure-           Hire-           Online
                                              (Enter order  notify customer  check credit                                                             ...
  processes                 to-order                                                              to-pay          to-retire         banking
                                               reserve stock  arrange delivery  confirm)




  Business                 Customer           Product         Inventory         Order          Shipping          Billing
                                                                                                                                   Returns            ...
  services                  portal            catalog          service        fulfillment       service          service




Applications                       Custom and composite apps                                   Packaged apps                              Other apps
                         Java/.Net-based, portals, mesh-ups, proc-based . . .       SAP, Siebel, PSFT, EBS, JDE, i-flex, . . .      Exchange, Legacy, . . .




   Midtier                           Middleware
                                                                                      Databases                                  Virtual environments
                               WS, AS, BPEL, ESB, . . .




Infrastructure                       OS/servers                                    Storage devices                               Networking devices
 components                    Linux, Unix, Windows, . . .                           NAS, SAN, . . .                          Routers, switches, VOIP, . . .




 40     © 2011 Forrester Research, Inc. Reproduction Prohibited
Shift from a “thousand points of light”
Services
                                                   FS Applications

Applications

                                                                               Storage                Security
Collaboration                                                                                          IDS                        Anti-Spam



Business                                                                                               Content Filtering          Identity Management
Intelligence/                                                                  IT Management
Analytical                                                                     Software
Applications                                                                                           Vulnerability Assessment   Regulatory Compliance

Application
Integration                                                                                            Management                 Firewalls


Application                                                                                            AV/Spyware                 Monitoring
Development
Tools
Database

OS
Hardware               Computer                                      Network             Storage


Platform
                                                                                 Fortune 500 Financial Institution

     41    © 2011 Forrester Research, Inc. Reproduction Prohibited
Unified IT management

                                                             Order-to-cash
     Business                Lead –                                                              Procure-           Hire-           Online
                                                                                                                                                        ...
                                              (Enter order  notify customer  check credit
     Processes              to-order
                                               reserve stock  arrange delivery  confirm)
                                                                                                  to-pay          to-retire         banking




     Business              Customer           Product         Inventory         Order          Shipping          Billing
     Services                                                                                                                      Returns            ...
                            portal            catalog          service        fulfillment       service          service




                      IT management software: manages complexity and diversity


 Applications                      Custom and composite apps                                   Packaged apps                              Other apps
                         Java/.Net-based, portals, mesh-ups, proc-based . . .       SAP, Siebel, PSFT, EBS, JDE, i-flex, . . .      Exchange, Legacy, . . .




      Midtier                        Middleware
                                                                                      Databases                                  Virtual environments
                               WS, AS, BPEL, ESB, . . .




Infrastructure                       OS/servers                                    Storage devices                               Networking devices
 components                    Linux, Unix, Windows, . . .                           NAS, SAN, . . .                          Routers, switches, VOIP, . . .



42      © 2011 Forrester Research, Inc. Reproduction Prohibited
The role of IT management software

               Making complexity and diversity manageable

  Providing a consistent interface and process independent of the
   underlying technologies through automation
  Providing a complete knowledge of business services,
   applications, and infrastructures
  Collecting normalized metrics from all types of infrastructure
   devices
  Providing a “virtual” management view of all processes and
   adapting to diverse infrastructures
  Adjusting automatically requirements to infrastructure through
   provisioning

43   © 2011 Forrester Research, Inc. Reproduction Prohibited
Process: firms still rely heavily on in-house solutions
        “What IT control or process methodologies, standards, or frameworks
        is/are currently in use? Please select all that may apply”




            Base: 174 IT process control stakeholders at North American and European organizations
 Source: ITIL Adoption Online Survey, Q3 2009
 44    © 2011 Forrester Research, Inc. Reproduction Prohibited
How has ITIL (IT Service Management) impacted the
 following?




     Org Reputation                                               Ops Productivity      Service Quality


                 Significantly beneficial
                 Beneficial
                 No change
                 Detrimental
                 Significantly detrimental
                 Don’t know

                                                                                          Ops Costs
     Source: Service Management Insights from the 2011 Forrester/itSMF-USA ITSM Study
45      © 2011 Forrester Research, Inc. Reproduction Prohibited
The focus in 2011 and beyond should be on IT efficiency


       productivity
       quality
                                                               Reduce    Improve
       flexibility
                                                               Cost      Quality




                                                               Improve   Improve
                                                               CustSat   Consistency



46   © 2011 Forrester Research, Inc. Reproduction Prohibited
The customer experience with your service desk
 shapes the reputation of the entire IT group




                                                                         Cost
                                                                          Cost




                                                               Revenue

                                            Customer                             Compliance
                                                                                  Compliance
                                           satisfaction
     Customer                                                                                  Business



47   © 2011 Forrester Research, Inc. Reproduction Prohibited
Example: financial services help desk

     Challenge: Soaring help desk costs and evolving workforce requirements


 Solution: efficiency initiative
     This company drove efficiency to cut costs while preparing for
     newer devices and support scenarios.
  People: Created subgroups, trained help desk employees on newer
   platforms, and created cross-role teams to support new devices
  Process: Created dedicated support for business-critical employee
   segment and handoffs to minimize employee downtime
  Technology: Centralized their knowledge base and created a social
   platform for solution sharing and implemented self-service tools to cut
   down help desk calls

48   © 2011 Forrester Research, Inc. Reproduction Prohibited
Thank you
Eveline Oehrlich
+1 617-613-8803
eoehrlich@forrester.com
Blog: blogs.forrester.com/eveline_oehrlich

www.forrester.com




  © 2009 Forrester Research, Inc. Reproduction Prohibited
Q&A
› Join Nimsoft at the following events:
 » Tier 1 - Hosting & Cloud Transformation
   - September 25 - 27, 2011, Las Vegas, NV

 » Fusion 11
   - September 25 - 28, 2011, Washington, DC

 » User Experience Monitoring Webcast
   - September 28th 11:00-12:00 Eastern (4:00 UK)
   - Register at: www.nimsoft.com/company/news-events/events

 » VMWorld 2011 Europe
   - October 16 - 18, 2011, Copenhagen




                                                                            Page 50
                                                         © nimsoft, all rights reserved

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Enabling Your Service Desk to be the Front Face to IT

  • 1. Welcome! Enabling your service desk to be the front face to IT Tim Rochte Eveline Oehrlich (Hubbert) Senior Product Marketing Principal Analyst Manager Forrester Nimsoft Page 1 © nimsoft, all rights reserved
  • 2. The Technology of Efficient IT Tim Rochte Nimsoft Product Marketing Page 2 © nimsoft, all rights reserved
  • 3. People and Process need Technology Consistent Knowledge Interface of business services Normalized metrics Nimsoft Unified Manager Page 3 © nimsoft, all rights reserved
  • 4. Nimsoft Unified Manager Service Management for Modern IT Bullet-proof service management processes Broadest set of technology monitoring Unified Page 4 © nimsoft, all rights reserved
  • 5. Solution Overview Page 5 © nimsoft, all rights reserved
  • 6. Nimsoft Service Desk Page 6 © nimsoft, all rights reserved
  • 7. Benefits for your organization › Configure don’t code Adaptable workflow » Workflow is 100% configurable allows you to meet your » No programming skills required specific business needs without custom code » Configuration not lost in upgrades › Simple Pricing Model Simple » Pay per user implementation » Fixed or floating licenses shortens your time to value » Free end user access › Cost Savings Seamless upgrades » Automated Free Upgrades make it possible to get the latest improvements » No Infrastructure Required without ripping apart your implementation Page 7 © nimsoft, all rights reserved
  • 8. Benefits for your users › Workflow focuses on actions » Tell Nimsoft Service Desk what to do, don’t guess based on status changes › Tried and True Interface for Service Desk Agents » High Throughput, Multi-Window design - Keep individual Incidents, Change Requests, etc. open while working in other parts of the system » Easy to use Portal Web Interface » Available anywhere anytime › Self Service available by Automatic incident web or e-mail creation lets you proactively address potential service interruptions Page 8 © nimsoft, all rights reserved
  • 9. Real World Proven › Scalability » Publishing company with worldwide presence - 50+ countries, 1000 calls per day – 300,000 customers - Cut costs 25% - To production in 4 weeks › Lower TCO » IT Services & Compliance - 15 agents, 350 employees, 500 tickets…primary tool for managing PCI compliance controls › Time to Value » Customer Service - 40 agents, supporting 35,000 external customers, 10,000 tickets/month… production in 4 weeks Service Operations » Incident Management » Problem Management » Request Management Service Transition » Change Management » Service Asset Configuration Management Service Design » Service Level Management Page 9 © nimsoft, all rights reserved
  • 10. End user self service Page 10 © nimsoft, all rights reserved
  • 11. Unified Analyst Screen Main screen shows ‘tickets’ relevant to the user and basic dashboard. Other modules available in one click along the left Page 11 © nimsoft, all rights reserved
  • 12. Configuration Management Search, drill down and graph CMDB items and relationships Page 12 © nimsoft, all rights reserved
  • 13. Reporting Reports displayed in Nimsoft Service Desk or exported to PDF or CSV Page 13 © nimsoft, all rights reserved
  • 14. Nimsoft Service Desk Benefits Adaptable workflow Simple implementation allows you to meet your shortens your time to specific business needs value without custom code Seamless upgrades - get Real world proven ITIL the latest improvements and years of best without ripping apart practices built in your implementation Page 14 © nimsoft, all rights reserved
  • 15. Nimsoft Unified Manager Common Experience in SaaS or On Premise to shared UI and common suit your business technology Automatic incident Pay as you Go to align creation -proactively with your business address potential value service interruptions Page 15 © nimsoft, all rights reserved
  • 16. The People, Process and Technology of Efficient IT Eveline Oehrlich (Hubbert), Principal Analyst September 22, 2011 16 © 2011 Forrester Research, Inc. Reproduction Prohibited 2009
  • 17. Agenda The good news and the bad news IT operation teams face challenges The components of efficiency The roadmap to efficient IT 17 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 18. The top business priorities in 2011: Grow revenues, acquire customers, and lower costs “What are your firm’s five (5) most important corporate business priorities over the next 12 months?” (Multiple responses accepted) Grow overall company revenue 64% Acquire and retain customers 54% Lower the firm’s overall operating costs 44% Acquire and retain talent 38% Improve quality of products and/or processes 37% Improve your customer relationships 36% Improve our ability to innovate as an organization 32% Improve workforce productivity 31% Drive new market offerings or business practices 28% Expand into new geographic markets 27% Improve business flexibility and resilience 21% Streamline business operations and consolidate… 20% Comply with government regulations and… 14% Re-engineer core business processes 14% Acquire other companies or divest parts of… 11% Improve corporate environmental sustainability… 10% Move costs from capital to operating expense… 3% Other priority 1% Base: 2,691 business decision-makers and budget holders from companies worldwide with 100 or more employees Source: Forrsights Business Decision-Makers Survey, Q4 2010 18 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 19. Business and IT relationship 19 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 20. Three forces will have a significant impact on the IT-business relationship 2010 2014 2016 2020 20 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 21. Technology drives revenue and innovation and cuts costs “How much do you agree with the following statements about technology at your firm?” (Respondents selecting “4” or “5” on a scale from 1 to 5 [5 being “strongly agree”]) 4 5 - Strongly agree The executive team is regularly involved in decisions about 34% 43% technology investments Technology is a fundamental element of our business model 28% 49% Reducing costs/improving efficiency through technology is 31% 45% high on the agenda of our executives/board Driving business innovation through technology is high on 31% 38% the agenda of our executives/board Business management understands technology 40% 20% IT management understands our business 35% 23% Business groups’ technology purchases influence other 40% 16% business groups’ selections The executive team won’t invest in technology unless the 26% 17% case is driven by business leaders and not by IT IT solicits business input on technology investments, but 23% 14% they make the final decision Business groups generate ideas using technology to solve 20% 7% problems, but few are implemented Business leaders often make investments in technology and 15% 6% services without IT’s involvement Base: 2,691 business decision-makers and budget holders from companies worldwide with 100 or more employees Source: Forrsights Business Decision-Makers Survey, Q4 2010 21 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 22. The good news: we can spend! Forecast: Global IT Purchases On Currency-Adjusted Basis, 2010 To 2012 Source: January 31, 2011, “2010 To 2012 Global Tech Industry Outlook” 22 © 2011 Forrester Research, Inc. Reproduction Prohibited January 2011 “2010 To 2012 Global Tech Industry Outlook”
  • 23. The bad news: need to reduce the MOOSE M_aintenance of O_ngoing O_perations S_ystems and E_quipment 23 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 24. Reverse MOOSE with IT efficiency to free up time and dollars for revenue and innovation activities IT MOOSE: Maintain Ongoing Operations Systems (and) Equipment Source: October 18, 2005. “Defining The MOOSE In The IT Room” 24 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 25. Improving IT efficiency is top priority “Which of the following initiatives are likely to be your IT organization’s top IT management priorities over the next 12 months?” High priority Critical priority Improve the efficiency of IT 50% 31% Improve or streamline business processes 48% 29% Improve our customer management capabilities 49% 27% Increase IT capacity/resources to drive 48% 27% business innovations Increase the scope of IT's centralized or shared 47% 23% services Improve the measurement of IT's impact on 47% 22% business performance Define strategy for risk and compliance 47% 21% Expand eBusiness or Internet initiatives 38% 23% Improve the sustainability and energy efficiency 40% 15% of IT operations and infrastructure Market the IT department within the firm 38% 13% Improve IT performance by adopting processes 36% 13% like CMM or ITIL Base: 2,803 IT executives and technology decision-makers from companies worldwide with 100 or more employees Source: Forrsights Global IT Budgets, Priorities, And Emerging Technology Tracking Survey, Q2 2010 25 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 26. IT Operation groups face challenges Business Service delivery demands Customer satisfaction Justifications Adoption Service consumption New technologies 26 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 27. We could … Source: Rudder Finn blog http://www.ruderfinn.co.uk/blogs/dotcom/files/2009/06/enviromental-head-in-the-sand.jpg 27 © 2011 Forrester Research, Inc. Reproduction Prohibited or …
  • 28. Efficiency = People + Technology 28 28 contents © 2010 Forrester Research,Reproduction Prohibited Entire © 2011 Forrester Research, Inc. Inc. All rights reserved. + Process
  • 29. Efficient IT does much more than reduce IT costs — it also frees up time and money to focus on revenue generating and innovation activities. 29 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 30. Examples of Inefficient IT (waste of CAPEX and OPEX) CAPEX OPEX  Overprovisioning  Low ABC-to-IT admin ratios  Low utilization  Low XYZ-to-employee ratios  Unnecessary redundancies  Poor operational best practices  Misallocation of resources  Lack of policy enforcement  Misallocation of devices  Lack of energy management  Poor needs assessment  Inadequate skills  Overly conservative  Inadequate system management  Inadequate capacity planning 30 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 31. Inefficiencies in your IT staff and business users  Poor economies of scale: Typical physical Windows server/admin ratio —15:1; virtual servers — 50:1; cloud — 10,000:1  Repetitive tasks: On average, 25% to 40% of help desk calls are related to password resets.  Low-value tasks: Admins resemble boiler watchers when they get stuck on tasks with no real business value, like monitoring single servers. 31 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 32. Inefficiencies in your software and applications  “Shelfware”: A survey showed half of enterprises were over- licensed by between 10% and 30%.  Wasted maintenance: Typical maintenance rates average 22% of the license cost annually, so in a three-year agreement, each license is 66% more.  Unfulfilled maintenance value: Though far more carried Software Assurance with upgrade rights to Vista, this never exceeded 15% of the market.  Misappropriation of funds: A recent survey showed audits rise from 3% in 2009 to 13% in 2010.  Inefficient expenses: Many audits cost £200,000 or more. 32 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 33. Your Roadmap To Efficient IT 33 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 34. A framework for improving IT efficiency Identify efficiency Define metrics opportunities People Process Technology Remediate Measure and analyze 34 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 35. All of which requires to shift to a modern IT 1. A “changed” IT organization 2. An effective understanding of key business services and how IT supports them 3. Integrated, aggregated management of these services 4. Adoption of best practice framework(s) 5. A front desk : your customer service team 35 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 36. Traditional technology-oriented department Source: March 11, 2009, “Inquiry Spotlight: Infrastructure & Operations Organizational Structures, Q1 2009” 36 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 37. New process/service-oriented department Source: March 11, 2009, “Inquiry Spotlight: Infrastructure & Operations Organizational Structures, Q1 2009” Forrester report 37 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 38. The new IT organization: the IT enterprise Business Business Business Business unit unit unit unit Business services IT enterprise management IT process management IT service IT service transition IT service delivery development Source: December 8, 2009, “It's Time For IT Management Software 2.0” 38 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 39. Reverse MOOSE with IT efficiency to free up time and dollars for revenue and innovation activities IT MOOSE: Maintain Ongoing Operations Systems (and) Equipment In 2010: Only 50% of the budget went to IT MOOSE . . . this is good! 39 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 40. The management of the service Business Lead – Order-to-cash Procure- Hire- Online (Enter order  notify customer  check credit ... processes to-order to-pay to-retire banking  reserve stock  arrange delivery  confirm) Business Customer Product Inventory Order Shipping Billing Returns ... services portal catalog service fulfillment service service Applications Custom and composite apps Packaged apps Other apps Java/.Net-based, portals, mesh-ups, proc-based . . . SAP, Siebel, PSFT, EBS, JDE, i-flex, . . . Exchange, Legacy, . . . Midtier Middleware Databases Virtual environments WS, AS, BPEL, ESB, . . . Infrastructure OS/servers Storage devices Networking devices components Linux, Unix, Windows, . . . NAS, SAN, . . . Routers, switches, VOIP, . . . 40 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 41. Shift from a “thousand points of light” Services FS Applications Applications Storage Security Collaboration IDS Anti-Spam Business Content Filtering Identity Management Intelligence/ IT Management Analytical Software Applications Vulnerability Assessment Regulatory Compliance Application Integration Management Firewalls Application AV/Spyware Monitoring Development Tools Database OS Hardware Computer Network Storage Platform Fortune 500 Financial Institution 41 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 42. Unified IT management Order-to-cash Business Lead – Procure- Hire- Online ... (Enter order  notify customer  check credit Processes to-order  reserve stock  arrange delivery  confirm) to-pay to-retire banking Business Customer Product Inventory Order Shipping Billing Services Returns ... portal catalog service fulfillment service service IT management software: manages complexity and diversity Applications Custom and composite apps Packaged apps Other apps Java/.Net-based, portals, mesh-ups, proc-based . . . SAP, Siebel, PSFT, EBS, JDE, i-flex, . . . Exchange, Legacy, . . . Midtier Middleware Databases Virtual environments WS, AS, BPEL, ESB, . . . Infrastructure OS/servers Storage devices Networking devices components Linux, Unix, Windows, . . . NAS, SAN, . . . Routers, switches, VOIP, . . . 42 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 43. The role of IT management software Making complexity and diversity manageable  Providing a consistent interface and process independent of the underlying technologies through automation  Providing a complete knowledge of business services, applications, and infrastructures  Collecting normalized metrics from all types of infrastructure devices  Providing a “virtual” management view of all processes and adapting to diverse infrastructures  Adjusting automatically requirements to infrastructure through provisioning 43 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 44. Process: firms still rely heavily on in-house solutions “What IT control or process methodologies, standards, or frameworks is/are currently in use? Please select all that may apply” Base: 174 IT process control stakeholders at North American and European organizations Source: ITIL Adoption Online Survey, Q3 2009 44 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 45. How has ITIL (IT Service Management) impacted the following? Org Reputation Ops Productivity Service Quality Significantly beneficial Beneficial No change Detrimental Significantly detrimental Don’t know Ops Costs Source: Service Management Insights from the 2011 Forrester/itSMF-USA ITSM Study 45 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 46. The focus in 2011 and beyond should be on IT efficiency  productivity  quality Reduce Improve  flexibility Cost Quality Improve Improve CustSat Consistency 46 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 47. The customer experience with your service desk shapes the reputation of the entire IT group Cost Cost Revenue Customer Compliance Compliance satisfaction Customer Business 47 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 48. Example: financial services help desk Challenge: Soaring help desk costs and evolving workforce requirements Solution: efficiency initiative This company drove efficiency to cut costs while preparing for newer devices and support scenarios.  People: Created subgroups, trained help desk employees on newer platforms, and created cross-role teams to support new devices  Process: Created dedicated support for business-critical employee segment and handoffs to minimize employee downtime  Technology: Centralized their knowledge base and created a social platform for solution sharing and implemented self-service tools to cut down help desk calls 48 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 49. Thank you Eveline Oehrlich +1 617-613-8803 eoehrlich@forrester.com Blog: blogs.forrester.com/eveline_oehrlich www.forrester.com © 2009 Forrester Research, Inc. Reproduction Prohibited
  • 50. Q&A › Join Nimsoft at the following events: » Tier 1 - Hosting & Cloud Transformation - September 25 - 27, 2011, Las Vegas, NV » Fusion 11 - September 25 - 28, 2011, Washington, DC » User Experience Monitoring Webcast - September 28th 11:00-12:00 Eastern (4:00 UK) - Register at: www.nimsoft.com/company/news-events/events » VMWorld 2011 Europe - October 16 - 18, 2011, Copenhagen Page 50 © nimsoft, all rights reserved