Business white paper. Be a multisourced. IT services broker. HP Service Integration and Management

Transcription

1 Business white paper Be a multisourced IT services broker. HP Service Integration and

2 Table of contents 3 Introduction 3 The business has already embraced multi-sourced services. 3 Short-term gain, long-term pain 4 The CIO as an IT service broker 4 Critical capabilities for an IT service broker 5 Taking charge and working with HP on service integration and 5 Governance and process SIAM framework and capability model 6 Technology HP IT Performance Suite software 7 People of organizational change and training 7 SIAM solution benefits 8 Getting started 8 Conclusion 8 Learn more

3 Introduction Today s organizations view IT as just another essential business service to be delivered on demand like energy, human capital, and financing. Behind the scenes, IT professionals struggle to deliver seamless, consistent, and cost-effective IT and application services, flexibly serving short-term business needs but aligned to long-term corporate goals. Key business processes are now enshrined in IT, increasing the pressure for IT to provide innovative services more quickly and efficiently. Additionally, delivering services is becoming more complex. Business process outsourcing, rising globally 1 5 percent annually, has replaced many IT processes previously delivered in house. Analysts predict enterprise cloud services will be used by eight out of 10 of the Fortune 1,000 companies. Both provide valid alternatives to on-premises infrastructures and in-house IT resources, but require sophisticated integration and of IT services. Even now, despite decades of progress on IT best practices via service and ITIL, delivering to strict performance levels eludes all but a few world-class IT organizations. Wrestling this growing mixture of delivery platforms (cloud and on premises), working practices (internal and from outsourcers) with multiple vendor service contracts to build a coherent service portfolio is one of the most difficult challenges facing senior CIOs. However, this new multi-vendor supply chain of IT offers the best opportunity in a decade for IT to strike up a new relationship with its internal customers one based on the value of the service delivered, rather than just the applications and infrastructure it is entrusted to manage. This paper explores how CIOs can seize the opportunities offered by a cloud-enabled multi-supplier service delivery chain. The business has already embraced multi-sourced services. Businesses realize that success depends on having the right IT services available at the required service levels when the business needs them. Enterprise cloud IT services have been mainstream for some time and the economic arguments for this method of delivering IT via external services are unavoidably compelling. Budget holders now routinely source IT services and IT-enabled business processes from outside the organi zation. Sourcing basic IT services such as storage capacity, telecommunications provision, or computing cycles cost effectively from an external provider is easier than requesting the internal IT department to create and provision them. In their view, asking forgiveness is easier than permission. This has changed the relationship between the con sumers and the largely internal providers of IT. The ease of commissioning cloud services provision is driving risky behavior. For instance, consumerlevel storage solutions used for enterprise data, without regard for corporate IT policy, or consumer-level unified communications, such as Skype or IM, bypassing corporate governance guidelines. Increasingly the IT-as-a-service model means external IT services compete head to head for budget with internal IT teams. Quick wins from cloud provisioning build user confidence for more such purchases. In fact, business groups are now adopting cloud services five times faster than IT groups and software vendors are planning to deliver 85 percent of new software as a service by These trends mean that IT will likely be asked to support services it did not provision and then be asked to support the services whether resources are available or not. Short-term gain, long-term pain In the short term, the advantages of ad hoc cloud adoption are deceptively attractive to business divisions. Flexibility and improved time to market for new offerings are compelling capabilities. Forrester research reports that speed of implementation and deployment is the biggest reason for moving to an SaaS environment. 1 However, these benefits come with a long-term cost. Externally sourced IT services require clarity within contracts to manage the roles, responsibilities, and, most importantly, the service levels expected and liabilities incurred by providers. As the number of providers and externally sourced services increases, so does the complexity of contract, due to the interdependence of the services. This can lead to a wide variance in service levels that will negatively impact the perception of IT s performance and value to the business. Effective corporate IT governance becomes extremely difficult with IT service contracts in the hands of different business units. And without a strategy for multi-supplier service integration and (SIAM), there is a real risk of supplier sprawl, in which it is difficult to manage suppliers, identify how each service maps to the business strategic goals, and govern the overall service delivery to meet corporate and industry requirements. As the balance of power switches from IT experts directly employed by the enterprise, to a widening pool of external suppliers, executing their own business strategies, the less strategic and relevant the internal IT organization seems to non-it executives. This creates a vicious cycle whereby IT works to demonstrate value but lacks the necessary authority and governance processes to ensure consistent quality of performance, cost efficiency, and innovation that drives business growth. The questions below are a useful guide to check how deeply IT is involved in buying and integrating IT services. 1 Forrester Research, Forrsights Software Survey, Q4,

4 Who really owns service integration and? For each major IT service provided for your businesses who owns: The procurement process for IT services? The budget for that IT service? The final decision on service level agreements? Sign off on external supplier contracts? Onboarding and integrating new IT services? Researching new IT services? The CIO as an IT service broker While the business typically only cares about receiving services reliably and on demand, the CIO is also concerned about how the services are delivered day to day, assuring the quality of service, and keeping the total cost of service within expected budgets. With a smaller proportion of IT services delivered internally, the skill set required for today s CIO must change to more of a service broker, bringing IT service efficiently to wherever needed by the business through a hybrid portfolio of IT services. The urgency generated by the emerging hybrid service delivery model requires the CIO and IT to work across the entire spectrum of IT service sources, which include: In-house provisioning of traditional and internal private cloud services (across applications, data services, and infrastructure) Public cloud service providers Managed service or communications service providers Critical capabilities for an IT service broker Creating an integrated, transparent IT service supply chain requires an organization be able to assess its strategic goals and portfolio of services carefully and be able to rapidly institute change when it is required. The three steps to becoming an IT service broker are: 1. Align the IT services portfolio with the business strategy. 2. Manage multiple suppliers and their contracts to drive effective and integrated IT service delivery. 3. Deliver excellence in IT services provisioning. IT service broker capabilities IT service broker success factor Challenge Capability required 1. Align the IT services portfolio with the business strategy. 2. Manage multiple suppliers effectively. 3. Deliver excellence in IT services provisioning. Service portfolio and demand Enterprise architecture and risk Financial and value Service sourcing strategy Multi-supplier to ensure optimal supplier performance End-to-end service integration,, and governance Service automation and optimization Service catalog with self-sourcing controls Service integration standards Distinguish between core and commodity IT services. Manage demand and create the right service portfolio mix from internal and external providers that maps to strategy. Create standard enterprise and IT architectures that flexibly support the business operating model and mitigate disruption through business changes, including future acquisitions. Establish and compare service costs, review return on investment, and interpret value over time at the enterprise level, not just IT. Identify the suppliers able to provide the services most suited for the business, reflected by terms and conditions, business culture, and service portfolio. Manage service suppliers and discuss their performance and relative strengths. Conduct performance reviews, supplier comparisons, and hold effective contract negotiations. Integrate end-to-end services at required service levels. Capture service, including operational and support activities, in governance structures and contractual roles and responsibilities. Automate provisioning of on-demand services from the service catalog. Create a service catalog containing available and planned services, easily visible and accessible, which can be self-sourced as required by business users. Standardize governance structures, processes, tool architecture, and interfaces to drive ease of on-boarding providers and services. 4

5 IT service broker capabilities Governance Business Operational service Governance framework Taking charge and working with HP on service integration and HP s position as the world s largest IT provider, its pioneer ing position as the author of ITIL v3 books and industry best practices, and its consultancy work with the most demanding IT teams globally make it the ideal partner to guide your service integration and journey. HP Service Integration and solutions offer world-class techniques, tools, and training to help IT professionals establish the new IT and business architectures necessary to manage across today s multi-vendor IT services environment. Risk Service catalog escalation Request fulfillment OSM base Invoice Procurement OSM intermediate SIAM OSM advanced reporting Financial Demand Project governance Compliance HP Service Integration and (SIAM) capa bility model is a reference model used to streamline and reduce the cost and complexity of global multi-supplier IT environments. Capable of scaling up to meet the needs of the largest clients, it can be successfully deployed with confidence by any organization with a need to handle multi-vendor IT service provisioning and regain control of supplier sprawl. The HP SIAM capability framework is designed to help companies manage complex, multi-supplier environments and derive more business value from their IT investment. HP SIAM transformation helps in three ways. Governance and process SIAM framework and capability model Technology HP IT Performance Suite software People of organizational change and training Communication and Standards and architecture In this new model, changes in service requirements are reflected, supported, and enforced for each vendor involved in providing the services portfolio. Alignment of services and contracts may involve a rationalization of suppliers or a re-tendering of internal or externally provided services. New service configurations may involve new or existing suppliers collaborating to provide innovative end-to-end services, which none of them could supply on their own. For instance, providing a new cloud service may involve collaboration between a data center hosting company, an outsourced application provider, and internal IT. Benchmarking and comparing price and quality of service against others, from within and outside an industry sector, can help create a much more optimized IT service supply chain. However, obtaining credible data can be time consuming. Without previous experience of benchmarking service provisioning and without clear objectives and project, change will not produce the efficiencies hoped for. For best results a keen understanding of best practices and the IT implications of process redesign, even at this stage, is important. This may dictate an operating model where service integration, perhaps for the first time, becomes the key role for senior IT managers. Governance and process SIAM framework and capability model HP has developed the SIAM capability framework to help companies manage complex, multi-supplier environments and derive more business value from their IT investments. Governance outlines the governance framework across suppliers and interface to the customer s business units. It is designed to help you align strategy and operations to business goals, comply with corporate, architectural, and regulatory requirements, and establish service level requirements. Business describes demand, procurement, and service request handling as well as the engagement of suppliers. This also includes how to perform cost benefit analysis to influence the service portfolio, investment, and sourcing decisions. Operational service addresses foundational processes for service operations and transitions that require integration across internal IT groups and third-party providers in order to assure the required end-to-end service quality and performance. These ITIL-based service processes will be specifically tailored to reflect client specific integration requirements. 5

6 HP IT Performance Suite Strategy, planning, and governance Executive Scorecard IT Financial Project and Portfolio Application Portfolio Workforce and Vendor Security intelligence and risk Software Security Assurance (SSA) Security Information and Event Network Security Application lifecycle Operations Information Application Quality Requirements Application Governance Performance Validation Data Center Automation Client Automation Application Availability and Performance System IT Service Asset Network Security Information Archiving Enterprise Records Development Application Security Validation Network IT performance suite foundation Extensibility, Orchestration, and Analytics Technology HP IT Performance Suite software HP IT Performance Suite software automates the critical business processes that provide IT leaders with the transparency and governance needed to successfully manage and optimize a multisupplier hybrid environment. It automates and streamlines multivendor service deployment,, tracking, and reporting. The HP IT Performance Suite offers an open extensible data model and bundled integration capabilities. Based on best-practice frameworks like ITIL, the HP IT Performance Suite is designed to inter-operate with existing client products and IT standards. HP Executive Scorecard provides IT executives with role-based views into real-time financial and non-financial IT performance and priorities. HP Project and Portfolio Center software helps manage service demand across the business. HP Business Availability Center and HP Operations Center software solutions provide service operations and highlight service health, verifying the performance of internal and external services provisioning. They also enable automated service provisioning on demand. HP Universal CMDB, HP Service Manager, Release Control, and HP Asset Manager solutions support service assurance and asset. HP Quality Center and Performance Center software help test new services being introduced for functionality and performance. 6

7 People of organizational change and training IT transformation and the introduction of new technology, governance, and processes will invariably be seen as a disruption to end users, which can lead to adoption resistance. Managing the change formally will help create a smoother implementation by providing a process and framework for the transition, including effective communications that continuously engage all stakeholders and end users. HP of Organizational Change (MOC) Methodology guides SIAM clients through a four-step change process: Mobilization: understanding a client s environment, creating the change team and its change agent structure, and engaging sponsors Readiness: drives ongoing stakeholder engagement, development of performance reviews and benchmarks, and overall communication strategy and plans Execute: rolling out communication plans, relationship and teamwork development, and supporting training initiatives Realization: measuring the performance of the new system, capturing and reviewing lessons learned, review of needed skills, and further fine tuning of processes and process conformance Training and establishing the right new skills and competencies are also part of an effective transformation initiative. HP Education provides client-tailored training solutions for the SIAM processes and service integrator layer of HP IT Performance Suite software. These courses can be delivered off-site or on client premises. In addition, HP is able to create on-line and recorded on-demand training. SIAM solution benefits Reduced complexity: The SIAM approach allows companies to manage suppliers based on a single standardized framework reducing complexity and easing the benchmarking of suppliers and services. Reduced cost and effort: Standardized, modularized, and lean multi-supplier governance and structures facilitate measurable cost reduction for both company and its suppliers. Increased transparency: Structured and reliable information flows from all relevant service areas and suppliers, and consistent, service-oriented, and fully customizable reports. Clear accountability: Clear service accountability across all suppliers using pre-defined roles and responsibilities, highlights agreed obligations and sanctions. Business relationship : A powerful escalation and communication model and related mechanisms, processes, and procedures for business-triggered and direction across all suppliers are provided. Risk : A mature and proven governance, risk, and compliance environment for the company and its suppliers avoids service disruptions or regulatory breaks. 7

8 Getting started HP Software Professional Services offers two services to help clients confirm their goals and plan their SIAM transformation activities in order to operate an optimized multi-sourced service delivery model, including sourcing of cloud services. SIAM transformation workshop is a one-day consulting workshop to clarify scope and build a high-level roadmap. SIAM roadmap service is a four- to eight-week service that supports the definition, planning, and future decision making of the required SIAM transformation consisting of four key stages: 1. Future-state description, starting with the business impact 2. Current-state assessment establishing the gap with the future state 3. Project and schedule creation of the program to transform the organization 4. Business case with quantified value/benefit of the future state For clients seeking a solution that is completely managed and operated by HP, can offer SIAM as an outsourced service. Conclusion IT-savvy employees increasingly reject poor service levels, demanding timely IT services provided by whoever can deliver operational excellence, customer intimacy, and drive innovation and product leadership. HP SIAM offers customers the opportunity to avoid the inevitable pitfalls of supplier sprawl that will result in the race to procure valuable new services. HP Software Professional Services has over twenty years experience in service for large, complex IT environments, providing its customers access to best-practices in service integration and. Additionally, HP consultants are experts in the HP IT Performance Suite software and have direct access to HP R&D, ensuring latest product capabilities are applied to customer environments. HP Software Professional Services offers an end-to-end-consulting portfolio that combines strategic advisory services, process design, of organizational change, and solution implementation services to help companies manage complex, multi-supplier environments and derive more business value from their IT investments. Learn more For more information about how HP Software Professional Services can help you manage multi-supplier service integration, please contact the HP Software Professional Services representative in your region. Or visit the following websites: hp.com/go/siam hp.com/go/hpswprofessionalservices hp.com/go/hpexperts Get connected hp.com/go/getconnected Get the insider view on tech trends, support alerts, and HP solutions. Share with colleagues Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein. 4AA3-9091ENW, Created January 2012, Updated August 2012, Rev. 1