Banking & Financial Services. White Paper. Transformation Trends in Application Production Management

Transcription

1 Bakig & Fiacial s White Paper Trasformatio Treds i Applicatio Productio Maagemet

2 About the Authors R. Sriivasagopala Head, IT Trasformatio Solutios, Bakig ad Fiacial s, Tata Cosultacy s Sriivasagopala leads the Trasformatio Solutios group for the Bakig ad Fiacial s busiess uit at Tata Cosultacy s (TCS). He has over 20 years of experiece i the iformatio techology (IT) solutios ad services space. I the curret role, he helps global baks improve efficiecy ad agility of their IT ifrastructure. Prior to this, he has maaged high-importace customer relatioships i the bakig ad fiacial services segmet, leadig multiple applicatio developmet, re-egieerig, ad maiteace programs. He holds a Master's degree i Electrical Egieerig from Idia Istitute of Sciece (IISc), Bagalore, ad a Bachelor's degree i Electrical ad Electroics Egieerig from Natioal Istitute of Techology (NIT), Trichy. Swaroop V Cosultat, IT Trasformatio Solutios, Bakig ad Fiacial s, Tata Cosultacy s Swaroop V is a cosultat with the Trasformatio Solutios group for the Bakig ad Fiacial s busiess uit at Tata Cosultacy s (TCS). A certified software quality aalyst, Six Sigma Gree Belt, ad ITIL V3 Masters (SO), she curretly plays the role of a trasformatio metor ad champio for may Fortue 500 fiacial istitutios. Over the 16 years of experiece with TCS, Swaroop has achored multiple roles i areas of software developmet, program maagemet, ad cosultig, for various bakig ad fiacial services customers. She holds a Master's degree i egieerig from Idia Istitute of Techology (IIT), Delhi.

3 Abstract Baks ad fiacial istitutios operate i a highly pressured eviromet, amid a sluggish ecoomic recovery, compressed margis, striget regulatory requiremets, ad loomig threats from ew competitio. Most baks are takig steps to address ear-term fiacial pressures, such as pricig adjustmets ad operatig cost reductios. From a iformatio techology (IT) perspective, baks are icreasigly focusig o cotiuous optimizatio of their IT speds. Heighteed cost pressures, icreasig complexity of the IT applicatio ladscape, ad everdemadig 'digital' cosumer have forced bakig ad fiacial istitutios to look at iovative meas to optimize the applicatio productio maagemet eviromet. This white paper discusses a comprehesive approach to help orgaizatios holistically address the issue at had. The paper also discusses some key emergig treds i the applicatio productio maagemet space, amely: Busiess-aliged IT Maagemet Applicatio Productio Maagemet as a Portfolio Ratioalizatio Orgaizatio Desig through Team Model Comprehesive Risk Assessmet Itegrated Moitorig & Data Drive Prevetive Techiques Kowledge-Drive Automatio Lea IT Maagemet While baks have bee successful i adoptig some of these treds, a systematic adoptio of all these developmets would require a holistic ad comprehesive framework. This paper highlights such a framework, which is data-drive, ad helps orgaizatios idetify specific trasformatio levers with a defied cost-beefit aalysis ad implemetatio timelie.

4 Cotets Itroductio 5 Evolutio of Applicatio Productio Maagemet 7 Emergig Treds 8 Busiess-aliged IT Maagemet 8 Applicatio Productio Maagemet as a 11 Portfolio Ratioalizatio 12 Orgaizatio Desig through Team Model 14 Comprehesive Risk Assessmet 17 Itegrated Moitorig & Data Drive Prevetive Techiques 18 Kowledge-Drive Automatio 19 Lea IT Maagemet 20 Coclusio 21

5 Itroductio Bakig ad fiacial services orgaizatios cotiue to face a difficult operatig eviromet amid sluggish ecoomic recovery, compressed margis, oerous regulatory requiremets, ad itese competitio. To survive ad compete i this sceario, they eed to: Cotiuously iovate by lauchig ew products ad services Optimize cost-to-icome ratio Deliver superior customer experiece Esurig regulatory compliace, ehacig customer satisfactio, icreasig operatioal efficiecy, ad improvig busiess agility, are key priorities for fiacial idustry players (refer Figure 1 Part a,b)¹. Comply with regulatory requiremets 58% Provide better customer service/experiece 43% Improve flexibility ad busiess agility 37% Icrease operatioal efficiecy 36% Maage Cost 30% Cope with chagig market 27% Support multichael/chael refresh 26% Improve risk maagemet 22% Iovate products ad services Reduce time-to-market/time-to-value Improve sales capabilities 21% 18% 17% Base: 145 fiacial services professioals (multiple resposes accepted) Source: Q Global Fiacial s Architecture Olie Survey Figure 1 (part a): Top priorities across global fiacial services compaies (Source: Forrester Research, Ic.)1 [1] Forrester Research, Ic., The Trasformatio Imperative I Fiacial s Defies Ay Crisis (November 2012), accessed October 15, 2014, 5

6 What are the three to five top busiess requiremets drivig your compay s trasformatio iitiative? Use of forward-lookig techology ad architecture Comply with privacy laws ad rules 14% 13% Support differetiatio, Icrease market share 12% Maage complexity 12% Support etry ito ew markets ad geographies Maage techology/applicatio risk 11% 11% Improve product factories Icrease Liquidity Mitigate risk of dwidlig talet/retirig workforce/retetio Drive gree bakig Other 5% 3% 1% 1% 3% Base: 145 fiacial services professioals (multiple resposes accepted) Source: Q Global Fiacial s Architecture Olie Survey Figure 1 (part b): Top priorities across global fiacial services compaies (Source: Forrester Research, Ic.)1 A holistic maagemet of iformatio techology (IT) systems is vital for bakig orgaizatios to esure roudthe-clock operatios i a seamless maer. The applicatio productio maagemet fuctio plays a critical role i successfully deliverig IT services to a orgaizatio, which i tur helps i customer experiece maagemet. From the viewpoit of lea priciples, applicatio productio maagemet is a cost ceter, thus optimizig speds i this area is a top priority. Hece, the IT departmets of orgaizatios embarkig upo this iitiative have the dual resposibility of maagig costs ad deliverig superior services. While simplificatio ad stadardizatio have bee the orm till ow, the curret day digital ecoomy calls for a more trasformatioal approach is ow called for. I subsequet sectios, we discuss the emergig trasformatio themes that will defie the cotours of the extgeeratio applicatio productio maagemet ladscape, helpig orgaizatios optimize ad deliver superior customer experiece. 6

7 Evolutio of Applicatio Productio Maagemet Over the years, applicatio productio maagemet services have evolved i phases - Stadardize, Optimize, ad Trasform (refer Figure 2). I the Stadardize phase, the focus is o drivig cosistecy i service delivery across busiess processes while meetig service expectatios. I the Optimize phase, drivig cost optimizatios is of paramout importace. I the Trasform phase, service providers brig about iovatios i processes, systems, ad techologies to make applicatio productio maagemet more agile, predictive, ad resposive. STANDARDIZE (till 2005) Focus OPTIMIZE ( ) SLAs System availability System performace TRANSFORM (2011ad beyod) People ad Process ITIL Root cause aalysis ad specific resolutios Tools Checklists Ticketig tools ad workflow Cosolidated teams catalogs Offshore leverage improvemets Six Sigma, focused improvemets Ru-books Kow Error Database (KEDB), Kowledge portals Moitorig tools Ticketig tools with auto aalysis ad reportig features Busiess aliged IT Comprehesive risk assessmet models Applicatio portfolio maagemet team model with right talet at right place cosolidatio Lea ITSM Applicatio productio Maagemet as a service Coheret moitorig platforms System behavior aalytics for perfective maiteace Kowledge-drive automatio ad selfhealig Figure 2: Evolutio of applicatio productio maagemet, (Source: TCS Iteral) The evolvig techological ladscape ad the icreased focus o customer-cetricity are resultig i trasformatio treds that are compellig orgaizatios to deploy the ext geeratio applicatio productio maagemet ecosystem. Figure 3 depicts the top eight treds bucketed ito three categories service strategy, service desig, ad service optimizatio. strategy desig optimizatio Busiess-aliged IT Maagemet Orgaizatio Desig through Team Model Itegrated Moitorig & Data Drive Prevetive Techiques Applicatio Productio Maagemet as a Comprehesive Risk Assessmet Kowledge-Drive Automatio Portfolio ratioalizatio Lea IT Maagemet Figure 3: Top trasformatio treds i applicatio productio maagemet (Source: TCS Iteral) 7

8 The use of data aalytics is becomig icreasigly importat to the trasformatioal maagemet of applicatio productio. The ability to dissect the system s behavioral history ad use it to improve the curret performace, ad the ability to model the system behavior to predict future performace, are critical use cases for advaced data aalytics. Process advacemets leveragig techiques such as lea, are helpig reduce the resolutio time of productio issues ad makig teams imble ad agile. The use of smart kowledge maagemet systems that drive the shift left priciple of maagemet (where the depedecy o people s kowledge levels is miimized) is ehacig people capabilities. Recet tools ad products i the marketplace are eablig these treds. IT product vedors i the ITSM space such as Compuware, BMC, IBM, ad HP have ehaced their loggig ad moitorig capabilities, eablig orgaizatios to deliver prevetive maiteace capabilities. IT Maagemet (ITSM) ticketig tools like BMC Remedy, Now, HP Maager, ad IBM Maage Now are equipped with service level measuremet ad performace aalysis capabilities. Some have embedded capabilities of ru-books ad executio of automated scripts o defied evets. The ext era of ITSM aims to revolutioize productio maagemet through automatio. While idustry players like Arago, IPSoft, ad BMC have doe well i the ifrastructure maagemet space, much is to be doe i the applicatio maagemet area. Emergig Treds Busiess-aliged IT Maagemet Applicatio productio maagemet provides busiesses with a sigle poit of iterface to the day-to-day IT operatios. Uderstadig busiess expectatios ad accordigly aligig IT priorities is thus a imperative. Traditioal IT service metrics such as SLA compliace, backlog, ad applicatio availability capture the basics of productio maagemet efficiecy, however, they ofte do ot correlate to the busiess expectatios. Orgaizatios are therefore defiig a busiess services catalog (refer Figure 4) that comprises a set of capabilities or services, with busiess expectatios compiled as key performace idicators (KPIs) agaist each. The services are the mapped to a set of eablig applicatios, both iteral ad exteral, ad the busiess performace metrics are correlated to the ifluecig applicatio idicators. Adoptig this approach will help the IT fuctios of orgaizatios drive a improved uderstadig of the busiess objectives ad how IT services come ito play, thus maagig them better. 8

9 Busiess Catalogue IT Catalogue Busiess Objectives IT Imperatives Busiess Efficiecy Cost of Operatios Busiess Agility Busiess Growth System Adaptability for chage Stability, Resiliecy, Availability Superior Customer Experiece Quality Busiess Moitorig IT KPIs TCO Effort/Time to Market/ Resolve System Availability SLA Compliace Derived App Support Measures Source FTE vs. Vedors Oshore vs. Offshore People Competecy Score Bleded Rate FTE/ Apps FTE/ Icidets % L1 hadlig Process Maturity Icidets/ Apps Icidets Reduced Backlog App Complexity s/ Criticality Maturity Risk Score Productivity Cosumptio Focus System Performace ad Moitorig Figure 4: Aligig the busiess ad IT catalogs (Source: TCS Iteral) 2 A Forrester US ITSM olie survey of Maagemet ad Automatio (SMA) professioals (2012, 2013) idicated a 6% icrease i the adoptio ad implemetatio of service catalogs (refer Figure 5). [2] Forrester Research Ic., Develop Your Road Map For Maagemet Ad Automatio Processes (February 2012), accessed October 15, 2014, 9

10 TechRadar : Busiess Techology Moitorig, Q3 13 (Cot.) 1-2 TechRadarTM: Survival phase techologies for orgaizatios i the empowered BT archetype Trajectory: Time to reach ext phase: Sigificat success < 1 year 1 to 3 years 3 to 5 years Moderate success 5 to 10 years Tech 10 years Database performace moitorig Reader Network badwidth moitorig High Busiess value-add, adjusted for ucertaity Trasactio mappig ad moitorig Middleware ad applicatio moitorig Ed user experiece moitorig Dyamic data stream moitorig Medium Cloud moitorig level moitorig Data ceter resource moitorig Low Negative Virtual ifrastructure moitorig Cofiguratio moitorig Cloud cost moitorig Ed user behavior moitorig Applicatio fault moitorig Software licese moitorig Busiess activity moitorig Reputatio moitorig Creatio Ifrastructure evet moitorig Applicatio fault moitorig Survival Growth Ecosystem phase Equilibrium Declie Figure 5: Forrester TechRadar : Busiess Techology Moitorig, Q3 '13: Ed User Experiece Moitorig ad Busiess Activity Moitorig Are O the Way ito the Growth Phase with Sigificat ad Moderate Success (Source: Forrester Research, Ic.)3 [3] Forrester Research, Ic., TechRadar : Busiess Techology Moitorig, Q3 2013, Part 3 Of 5 (November 2013), accessed October 15, 2014, 10

11 While the busiess-aliged service catalog sets the right focus ad goverace for productio maagemet, it is importat to moitor the performace of deploymet i productio. This is accomplished through busiess activity moitors, apart from the traditioal system moitorig toolsets, ad ed user experiece moitorig tools. Forrester research (refer Figure 5) ascertais the importace of these tools ad their icreased adoptio i the idustry. Applicatio Productio Maagemet as a I the most recet Global Fiacial s Architecture Survey from Forrester Research4, 40 percet of IT decisio makers i fiacial services claimed to be usig software-as-a-service, ad about four-fifths plaed to pla to use this model goig forward. Cosumptio-based pricig, which icludes liceses ad cost of maiteace or support services, is a risk-share model, ad it icreases the flexibility of applicatio maagemet tool use. O similar lies, the cocept of service-based pricig is makig way ito the applicatio productio maagemet space. A high-level view of such a model is preseted i Figure 6. The thought of procurig applicatio productio maagemet as a service, combied with or without ifrastructure, is beig explored. This offers the beefits of both cosolidatio ad movig to a maaged services model. Stadard pricig ad o boardig Scale Cosumptio Coverage Level Applicatio Criticality # Chages 5 x 12 Coverage Basic 5 x 24 Coverage Stadard 7 x 24 Coverage Premium # Servers # Databases # Icidets # Users # Problems # Batch Jobs # Requests Set Performace Commitmets 60 Moths 712 Moths 57 Focus Applicatios 80 Applicatios are outliers Achieved Remaiig 0.9 FTE/ Applicatios Remaiig Remaiig 0.8 FTE/ Applicatios USD Bleded Rate TCS-O TCS-Off Remaiig Achieved Remaiig Achieved Remaiig Achieved Remaiig USD Bleded Rate TCS-O TCS-Off Productivity - 19% CA - 22% Beefits Pricig Catalogue 0.7 FTE/ Applicatios USD Bleded Rate Productivity - 6% CA - 5% Achieved 5 Icidets/ Applicatios Achieved Remaiig Offerigs All Applicatios Aliged 7 Icidets/ Applicatios Achieved Source USD Remaiig 10 Icidets/ Applicatios Achieved Productivity 1 FTE / APP 1318 Moths All Applicatio Aliged Achieved Cosumptio 12.5 Icidets/ Applicatios Catalogue Levels TCS-O Suitability TCS-Off Productivity - 33% CA - 26% Figure 6: catalog based applicatio productio maagemet provisioig (Source: TCS Iteral) [4] Forrester Research, Ic., "The Trasformatio Imperative I Fiacial s Defies Ay Crisis - The Q Global Fiacial s Architecture Olie Survey Cotiues To Show A Focus O Trasformatio", (November 2012), accessed October 15, 2014, 11

12 The key focus areas of this model are: Commitmet to applicatio performace ad service quality levels as per the service catalog Cotiuous productivity improvemet with respect to preset targets Systematic oboardig ad scalig of ew portfolios or applicatios Portfolio Ratioalizatio Traditioal portfolio ratioalizatio ad simplificatio exercises require gatherig the ivetory of applicatios ad characterizig them by their techical ad fuctioal attributes, cost, ad risk. A systematic aalysis is the carried out o these attributes which helps to determie the target state of each applicatio, thereby miimizig the applicatio footprit ad maximizig the busiess value geerated. Large, legacy, ad diverse techology platforms are challegig ad expesive to maage o a daily basis. Stadardizig ad moderizig the applicatio ladscape provides ease of maiteace ad reduces the effort ad cost i overall applicatio productio maagemet. Applicatio Portfolio Simplificatio Retai Re-architect Ratioalize Re-egieer Aalysis Retire Ivetory Figure 7: Portfolio ratioalizatio (Source: TCS Iteral) 12

13 I Forrester s most recet Forrsights Software Survey, Q , majority IT decisio makers across orgaizatios stated that cosolidatig or ratioalizig eterprise applicatios is of high priority for their firms. Oe of the typical outcomes of applicatio ratioalizatio is a more stadardized, ad ofte moderized, applicatio ladscape with fewer, better-documeted, ad better-itegrated busiess applicatios with state-of-the-art architecture. Such a eviromet is poised to move toward outsourced applicatio maagemet resultig i icreased operatioal 5 efficiecies ad better cost maagemet. The results of this Forrester research, as depicted i Figure 8, idicate that applicatio moderizatio ad cosolidatio are high priority for most orgaizatios. Busiess Applicatios Domiate Software Iitiative Priorities September 2013 The 10 Most Importat Techology Treds I Busiess Applicatio Architecture Today Which are the followig iitiatives are likely to be your IT orgaizatio s top project ad orgaizatioal priorities over the ext 12 moths Do t Kow Not o our ageda Support busiess requiremets ad corporate growth Update/moderize key legacy applicatios Cosolidate or ratioalize eterprise applicatios Use custom developmet for better busiess support ad/or differetiatio Low priority 1% 2% 10% High priority Critical prioroity 14% 48% 1% 7% 47% 25% 1% 12% 1% 16% 39% 21% 44% 28% 31% 36% 14% 15% 1% Ivest i mobile applicatios for employees, customers, or parters 16% 36% 35% 13% 1% Icrease our use of software-asa-service (cloud applicatios) 18% 32% 11% 38% 4% Expad our use of Agile software developmet ad processes Embaded social (social media, social etworks, chat, etc.) ito our busiess processes Outsource applicatio support ad maiteace 29% 33% 26% 9% 1% 24% 25% 7% 42% 2% 41% 37% 17% 4% Base:2,444 IT executives ad techology decisio-makers from SMB ad eterprise compaies (percetages may ot total 100 because of roudig) Source: Forrsights Software Survey, Q Figure 8: Busiess applicatios domiate busiess applicatios priorities (Source: Forrester Research, Ic.)5 [5] Forrester Research, Ic., The 10 Most Importat Techology Treds I Busiess Applicatio Architecture Today Uderstad These Treds To Shape Your Applicatio Strategy, (September 2013), accessed October 15, 2014, 13

14 Orgaizatio Desig through Team Model There are various operatig models i the service maagemet area that address the key objectives such as agility i IT service delivery, scalability with respect to applicatios ad users, ad roud-the-clock availability of services. Figure 9 depicts a high-level view of a itegrated orgaizatio. Its saliet aspects are the factory based delivery model, ceters of excellece to drive cotiuous improvemet, domai-cetric executio to address applicatio specific expertise, ad DevOps cocepts to tighte the itegratio with developmet teams. Applicatio support services are beig cosolidated ito a horizotal layer that caters to the etire eterprise. This icludes developmet activities, especially agile implemetatios, ad egages productio teams well ahead i time for better syergies. Cetralized Productio Maagemet s Applicatio Developmet Architecture & Goverace ( Goverace, Cotracts, Catalog Mgmt, Level Maagemet, Metrics / Reportig, Performace Maagemet, Availability & Capacity Maagemet, Busiess Cotiuity / DR Plaig) Mgmt Office Build Test Devops Productio Readiess Assurace (Release & Deploymet Maagemet) Trasitio Chage & Cofiguratio Maagemet Operatio Release LOB 16 LOB 15 LOB 14 LOB 13 LOB 12 LOB11 LOB 10 LOB 9 LOB 8 LOB 7 LOB 6 LOB 5 LOB 4 LOB 2 Experts L2 LOB 1 No Productio Eviromet Maagemet (GBCC Release) LOB 3 Strategy & Desig Cetre of Excellece Portfolio Maagemet Ifrastructure s Performace Maagemet Problem Maagemet Tools ad R&D L1 Factory First Level Resolutio Operatios 3rd Party Vedors Eterprise Commad Ceter Cetralized Applicatio Desk Figure 9: A itegrated orgaizatio desig (Source: TCS Iteral) 14

15 The key aspects of the orgaizatio desig are: Factory-based approach for process drive fuctios Orgaizatios cosolidate level 0 ad level 1 fuctios, such as helpdesk, commad ceter ad moitorig, ad issue resolutio tasks, across the eterprise, through stadardized processes ad toolsets, leadig to a factory based delivery model for these fuctios Further, the use of kow error databases (KEDBs), ru-books ad automated scripts, ad tools, has improved the productivity of the factory by itroducig cosistecy ad repeatability i task executio, thus sigificatly reducig maiteace costs (refer Figure 10). First-level resolutio rate drives the support costs Total cost per icidet Cost per icidet first-level cost per icidet secod-level cost per icidet 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Figure 10: Shift left reduces icidet support costs (Source: Forrester Research, Ic.)6 Domai-cetric models for applicatio kowledge itesive fuctios Problem maagemet, performace improvemet, ad applicatio portfolio maagemet resposibilities commoly kow as level 2 fuctios - require extesive applicatio kowledge, ad are categorized by lie of busiess (LOB) or portfolio. Improvig the productivity of the level 1 fuctios by buildig ad ehacig the toolsets ad kowledge base, is also a area of focus. Ceters of Excellece (CoEs) for cotiuous service improvemet Esurig a successful trasformatio higes upo brigig about chages across people, processes, tools, ad systems, which requires domai experts. CoEs help build these capabilities by tappig ito the orgaizatioal kowledge, ad leveragig exteral expertise through techology parterships ad alliaces. [6] Forrester Research Ic., The Forrester Wave : Global Workplace s, Q1 2013, Evaluatig Leadig Providers Amidst a Category Redefiitio (March 2013), accessed October 15, 2014, 15

16 DevOps Agile developmet practices have led to cotiuous build, itegratio, ad deploymet of code ito productio. This has resulted i a greater eed for early egagemet ad feedback loops betwee productio operatios ad developmet teams. The DevOps cocept provides for defied early egagemet models, tools for seamless trasitio to productio, ad automatio i chage, cofiguratio, ad release maagemet. A Forrester research7, results of which are captured i Figure 11, idicates that DevOps is gaiig attetio of orgaizatios. 1-1 DevOps relatioships are improvig How would you characterize the relatioship betwee applicatio developmet ad operatios i your orgaizatio? Isolated 9% 7% 14% Detete 10% 34% Hopeful 36% 40% 41% Collaborative Seamless 6% 8% Base: 491 SMA professioals *Base: 181 SMA professioals Source: Forrester/itSMF Q US ITSM Olie Survey *Source: Forrester/itSMF Q US ITSM Olie Survey Figure 11: DevOps relatioships are importat ad improvig (Source: Forrester Research, Ic.)7 [7] Forrester Research Ic., The State Ad Directio Of Maagemet: Progressio, Deceleratio, Or Stagatio? (April 2014), accessed October 15, 2014, 16

17 Comprehesive Risk Assessmet Fault tolerace, resiliece, ad roud-the-clock system availability are key teets of today s bakig IT systems. Gaps ad iefficiecies i the desig of IT applicatios, ifrastructure, ad processes ca potetially affect service cotiuity. Hece, it is prudet to idetify ad fix ay such gaps before a situatio goes out of cotrol. Busiess cotiuity ad quality of service are vital i providig a superior ad uiterrupted customer experiece. Systematically idetifyig all the risks, periodically assessig them, ad drawig up a system improvemet pla, ca help improve the resiliecy of the IT portfolio. 1. Moitorig & Availability 2. Resiliecy & Recovery 3. Busiess Cotiuity 4. Capacity Maagemet 5. Process Compliace 6. Third Party 7. Audit ad Regulatory 8. People ad Competecy 9. Security Servers Maiframe Middleware Database 9. Security 8. People ad Competecy 6. Third Party 7. Audit ad Regulatory 6. Third Party 5. Process Compliace 5. Process Compliace 4. Capacity Maagemet 4. Capacity Maagemet 3. Busiess Cotiuity 2. Resiliecy & Recovery 3. Busiess Cotiuity Applicatio 1. Moitorig & Availability 1 2 T3 3.. Probability 8. People ad Competecy 9. Security T3 Imapct 7. Audit ad Regulatory Scorig Risk Assessmet focus areas 2. Resiliecy & Recovery Wise 1. Moitorig & Availability Compoet Wise Rate Name Area Key Compoet Name Bakig orgaizatios are icreasigly adoptig comprehesive risk assessmet frameworks (refer Figure 12) coupled with systematic methods to idetify, quatify, ad mitigate risks, as a meas to esure busiess cotiuity. Very Low Low Moderate High Very High Sigificat T3 Severe T3 Moderate Tail T3 T3 Low Tail Tail T3 Figure 12: Sample comprehesive risk assessmet approach (Source: TCS Iteral) 17

18 Such frameworks are deployed, periodically (quarterly or half-yearly) evaluated, ad tracked for high priority gaps, which are closed prior to the subsequet assessmet cycle. Itegrated Moitorig & Data Drive Prevetive Techiques Data aalysis provides isights ito system behavior ad team performace. This helps i maagig existig applicatio issues, ad predictig, thus prevetig, probable future breakdows. Learig from the past: A aalysis of historical service ticket logs provides good isights ito system failure, ad how it ca be preveted. Data aalytics ca help i idetifyig time depedet patters, frequetly failig systems, ad usual root causes. Text miig features are also leveraged to parse through the ustructured ticket logs ad idetify patters i resolutios. This aalysis helps i idetifyig permaet resolutios to frequet problems, thus makig the systems ad processes more stable ad resiliet. Aalysis of system behavior though problem logs, ticket databases, ad system logs, provides iterestig isights ito system desig ad probable behavior. Aalytics, coupled with system desig priciples, ca help desig reliable ad effective systems. Discerig the curret Aggregated ad correlated evet maagemet: A aalysis of the existig health parameters of applicatio compoets, ifrastructure elemets, databases, ad IT systems, provides valuable isights ito the curret system performace, ad ca be used to provide alerts o potetial failure poits i the productio eviromet. Each elemet i the IT ladscape is idividually moitored; treds idicate that orgaizatios are focusig o aggregatig these logs i real-time ad correlatig them to show a holistic system performace view. egieers use these to idetify potetial issues that may occur i the future, ad take prevetive measures. Tools that closely tie the alerts or warigs to the uderlyig error logs through the adoptio of better code istrumetatio, are also beig explored. These help the system egieer idetify the root causes of failure, thereby reducig the MTTR (Mea Time to Resolve ad Restore). Predictig the future Aggregated ad correlated evet maagemet: System logs such as applicatio server logs ad database server logs, are a treasure trove of iformatio, ad are used i the mathematical modelig of system behavior ad performace with respect to time, user load, ad trasactio volumes. Predictive modelig techiques like what-if sceario aalyses, whe performed o collected data, ca help i better desigig or cofiguratio of future systems. 18

19 Kowledge-Drive Automatio Buildig self-healig systems ad auto-maaged operatios ca help i reducig maagemet efforts ad buildig systems that are available roud-the-clock. Figure 13 shows a systematic approach to elimiate as may alerts or icidets as possible, ad to automate the oes that are uavoidable, to the extet possible. Mis-fired Alerts Pereial icidets User raised Queries categories Icidets Alerts Elimiate Alerts covertig to Icidets Applicatio productio maagemet costs are heavily iflueced by people s productivity ad efficiecy. Sice operatioal kowledge ad aalytical ability are largely tacit, productivity ad efficiecy becomes peoplecetric. Extractig this kowledge ad codifyig it ito artificial itelligece based decisio support tools leads to automatio i executio ad repeatability i team performace. Easy to resolve Automate Rarely Escalate Figure 13: Systematic process of elimiatio ad automatio to optimize operatios (Source: TCS Iteral) The idustry has witessed some success i automatig data ceter maagemet through the creatio of a library of kowledge articles that lik potetial failure poits to possible resolutios. Busiess itelligece (BI) techiques are used to decipher the specific root cause of potetial or real issues by aalyzig the system health parameters, ad the right actio is auto-iitiated by referrig to the sophisticated kowledge egie. Usage of such robotic system maagemet tools i the applicatio productio maagemet space is icreasigly beig explored, ad will gai tractio i the time to come. While auto healig ad maagemet systems are the ed objective, automatio is defiitely possible i a umber of maiteace ad operatios tasks, to icrease productivity. Figure 14 shows a set of stadardizatio, optimizatio, ad trasformatio processes across various fuctios. 19

20 Stadardize G Release Maagemet Reportig & Goverace Process Stadardizatio Moitorig Kowledge Maagemet Capacity Maagemet Icidet Maagemet s are Maually Tested before a Release Cetralized metrics collectio KPI targets i syc with busiess Cosolidatio & Stadardizatio of Processes Process compliace tracked All compoets are o boarded for moitorig Batch Moitorig Kow errors are documeted Compilatio of all resolutio scripts Applicatio wise Traffic aalysis with associated respose times. All icidets tracked Process stadardized Ru book Automatio Trasform Optimize Maitai a Stadard regressio library Aalytics drive Goverace Automatio of Reportig s aliged to Busiess criticality of applicatios Watch Tower for ed to ed moitorig Noise reductio Compile Tacit kowledge possessed by SMEs for shift left opportuities Forecastig, trackig ad reportig of demad ad capacity automated Erichmet of alerts to reduce ivestigative efforts Despatcher ad right triage Have Automated tools to test ad track ed-to-ed trasactios. Bechmarkig of services Stakeholder aliged Dashboards Differetial service focus Shared services model for all o-core fuctios Evet Correlatio Alert erichmet Assist i impact aalysis Eable Auto erichmet of icidets or alerts for quick resolutios / elimiatio Elimiate issues at source through predictive aalytics & machie learig Automatic ad complete/partial resolutio of applicatio ad ifra alerts Figure 14: Automatio maturity (Source: TCS Iteral) Lea IT Maagemet Adoptig a combiatio of lea maagemet priciples ad ITIL best practices ca stadardize processes, ad yet keep the IT ecosystem simple, deliverig sigificat savigs with respect to time ad cost. Leveragig our domai expertise, coupled with idustry experiece gaied over umerous trasformatio iitiatives udertake for leadig bakig orgaizatios across the world, we propose a framework (refer Figure 15) that uses lea methodologies ad ITIL frameworks to simplify process, applicatio, ad techology iitiatives, thereby reducig the cost of applicatio productio maagemet. Lea maagemet priciples have domiated the maufacturig idustry for some time ow, brigig i efficiecies ad improved quality i products ad services. Its adoptio i IT practices, such as orgaizatio desig ad roles segregatio, is a recet tred 20

21 Optimize Portfolio SS Expectatios CMDB Catalogue Fiacial Focus Optimizatio SD Level Maagemet Operatig Model Availability Maagemet Capacity Maagemet Bechmark & Improve ST Release Maagemet Kowledge Maagemet Chage Maagemet Perfective Maiteace Cofiguratio Maagemet SO Icidet Maagemet Problem Maagemet Operatios Maagemet Self Help Self Heal CSI Data Gathered Temporal Aalysis Predictive Aalysis Improvemet programs Trasformatio Program Risk Maagemet Optimize Cosumptio Lea Optimize Utilizatio Elimiate Waste Optimize Sourcig Maximize Value System Ratioalizatio Stadardize work Automate ecessary NVA activities Strategic Vedor aligmet to optimize operatios Improve productivity through team syergies Ratioalize Applicatio & Data across eterprise Match Demad ad Capacity Automate ecessary NVA activities Accoutability of Vedors Prioritize requiremets usig a Tiered approach Ifrastructure Ratioalizatio, Virtualizatio Match Request Complexity ad Resource Capability Cosolidate low complexity high frequecy requests shorig Improve Tur aroud time through sigle piece flow Optimize MIPS & Storage usage Elimiate Process Redudacy Busiess Aliged IT Coheret Moitorig Major Themes ITSM Areas ITIL Predictive Aalytics Do if right first time Moo Source Risk Based Testig Stadardizatio Parameterizatio Shift Left Team liked to work iflow Shared s Iovative egagemet Figure 15: A framework to combie ITIL ad lea maagemet priciples (Source: TCS Iteral) Coclusio Each trasformatio theme elaborated i this paper helps orgaizatios trasform their applicatio productio maagemet ladscape ad improve cost, service quality, ad service experiece. However, give the large ladscape of IT applicatios built o a variety of techologies across differet divisios of the orgaizatio, it is importat to take a holistic approach. Such a approach should cover all the dimesios of trasformatio people, process, systems, ad techologies while balacig the cost ad retur of the trasformatio program. We propose a systematic ad comprehesive approach (refer Figure 16) that provides a framework for a rapid tooldrive assessmet of the ladscape. This holistic ad easily deployable approach is backed by several solutio accelerators ad tools. Such a trasformatio framework, packaged with a set of tools that offer support through the due-diligece ad plaig phases, right up to implemetatio, helps i deliverig trasformatio programs with certaity ad agility. 21

22 Trasformatio Priciples Trasformatio Themes Trasformatio Eablers Superior Quality, Reduced Risk Focus Optimize (Scope) Stability, Resiliece, Availability Cosumptio Optimize (Work Volume/ Scope) Perfective Maiteace Prevetive Maiteace Corrective Maiteace Agility, Optimized TCO Productivity Optimize (Effort/ Work Volume) Process Optimizatio Tools ad Automatio People Capability Ehacemet Global Scale, Efficiecy Source Optimize (Cost/ Effort) Goverace s Competecies Locatio Catalogue Busiess IT Aliged Scorecards Risk Assessmet Models ITSM Ticket Tool Aalyzer Applicatio Log Aalyzer & Predictio Egie Early Warig Systems ITSM Maturity Model Lea ITSM Framework Kowledge Maager Automatio Egie Global Delivery Models Maiteace Competecy Framework Figure 16: A framework to eable the trasformatio jourey (Source: TCS Iteral) This framework is based o four priciples right focus, right cosumptio, right productivity, ad right sourcig. focus helps orgaizatios set objectives ad priorities, eabled by busiess service catalogs ad balaced score cards, for the productio support orgaizatio. cosumptio improves the resiliecy of the applicatio portfolio by addressig curret challeges, as well as preparig for the future. productivity brigs i efficiecies through a holistic view of the people-process-techology triad. source refers to the orgaizatioal fabric that is, a orgaizatio with the right set of skilled persoel will successfully deliver the trasformatio program through a optimal set of idetified locatios for service delivery. By leveragig this comprehesive framework, bakig ad fiacial services orgaizatios ca coduct a rapid assessmet of their IT applicatio ladscape, bechmark their performace with idustry peers, ad draw a detailed trasformatio roadmap, withi a timelie as striget as four to six weeks. Trasformatio roadmaps are largely cofigured to be self-fudig so that beefits from quick wis ca be fueled back to drive the other iitiatives. We have observed that the right focus ad right sourcig levers ad some corrective maiteace iitiatives yield quick wis that help fud the other iitiatives right cosumptio ad right productivity trasformatio. Over years of experiece i implemetig this framework for several leadig bakig ad fiacial services orgaizatios, we have observed that it helps orgaizatios deliver sigificat IT cost savigs, somethig like percet through the right focus ad right sourcig strategies i the first year of the program, ad further percet through the right cosumptio ad right productivity strategies withi two years of deploymet. 22

23 About TCS' Bakig ad Fiacial s Busiess Uit With over four decades of experiece workig with the world's leadig baks ad fiacial istitutios, TCS offers a comprehesive portfolio of domai-focused processes, frameworks, ad solutios that empower orgaizatios to respod to market chages quickly, maage customer relatioships profitably, ad stay ahead of competitio. Our offerigs combie customizable solutio accelerators with expertise gaied from egagig with global baks, regulatory ad developmet istitutios, ad diversified ad specialty fiacial istitutios. TCS helps leadig orgaizatios achieve key operatioal ad strategic objectives across retail ad corporate bakig, capital markets, market ifrastructure, cards, risk maagemet, ad treasury TCS has bee raked #2 i the 2014 FiTech Rakigs Top 100 of global techology providers to the fiacial services idustry, by both - FiTech Forward (a collaboratio of America Baker ad BAI) ad IDC Fiacial Isights. TCS has also bee recogized as a 'Leader' ad a 'Star Performer' i Everest Group's 2014 PEAK Matrix reports for Bakig ad Capital Markets Applicatio Outsourcig (AO). Cotact TCS' Bakig ad Fiacial s, us at: bfs.marketig@tcs.com Subscribe to TCS White Papers TCS.com RSS: Feedburer: About Tata Cosultacy s (TCS) Tata Cosultacy s is a IT services, cosultig ad busiess solutios orgaizatio that delivers real results to global busiess, esurig a level of certaity o other firm ca match. TCS offers a cosultig-led, itegrated portfolio of IT ad IT-eabled ifrastructure, egieerig ad assurace services. This is delivered through its uique Global Network Delivery ModelTM, recogized as the bechmark of excellece i software developmet. A part of the Tata Group, Idia s largest idustrial coglomerate, TCS has a global footprit ad is listed o the Natioal Stock Exchage ad Bombay Stock Exchage i Idia. IT s Busiess Solutios Cosultig All cotet / iformatio preset here is the exclusive property of Tata Cosultacy s Limited (TCS). The cotet / iformatio cotaied here is correct at the time of publishig. No material from here may be copied, modified, reproduced, republished, uploaded, trasmitted, posted or distributed i ay form without prior writte permissio from TCS. Uauthorized use of the cotet / iformatio appearig here may violate copyright, trademark ad other applicable laws, ad could result i crimial or civil pealties. Copyright 2014 Tata Cosultacy s Limited TCS Desig s I M I 12 I 14 For more iformatio, visit us at