Transforming IT into an App Store Service Catalog Part I: Why Should I care?
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1 Transforming IT into an App Store Service Catalog Part I: Why Should I care?
2 Who are we? 2 Jason Rosenfeld» ITSM Practice Lead at Cask, LLC» 15+ years ITSM and IT Operations experience with HP, US Navy, US Marine Corps, American Airlines, US Airways, Merck and LPL Financial» Certified ITIL Expert, LSS Black Belt and ISO/IEC 20000, ISO/IEC 27002» Author, speaker for HDI & itsmf events Shaun Ericson» Solutions Consultant at Axios Systems» 11+ years of ITSM consultative experience with Axios, Peregrine, Remedy, LANDesk, and Altiris» ITIL v2, v3 Certified, ISO/IEC 20000» Speaker at IAITAM, PINK and ITIL Events» From San Diego and love to surf! Cask provides expert IT Service Management advisory services including an agile approach to service design and process development as well as cost and performance measurement utilizing ITIL, CobiT, CMMI for Services and ISO/IEC Learn more at Axios Systems is a leading provider of Best Practice-based ITSM solutions. The company s customer-centric approach combined with award-winning enterprise solutions enables customers worldwide to align Service and Support organizations with their overall business goals. Learn more at Cask, LLC Strategy. Solutions. Success.
3 Summer Workshop Series 3» #1: Why should I care?» Defining the importance of IT services» Determining the cost of IT» How to upstream IT» #2: How do I build it?» Learn where to start, important steps for defining services, developing service-based relationships» #3: Why do customers care?» Understanding the ideal customer experience, how to win your customers over and to communicate the benefits
4 Agenda: Why Should I Care? 4» Something you may recognize» Traditional IT vs. Service Oriented Departments» Showing the value of IT» Upstreaming» Lack of Innovation» Business Case» Q&A
5 This is a Service Catalog? 5 It tells customers about services: What they cost When they are available How long they can be used How to get them Who to call if you need support What they are like The warranty should they fail Even some photos!!
6 Traditional IT 6 CIO Operations Infrastructure Applications Service Desk Data Center Operations Server Management Database Administration Application Support Application Development
7 7 Service Orientated IT Customers HR Facilities Finance Telecom IT CIO Information Security Mananagement Delivery (Service Desk, Network, Desktop) Company Strategy Management Demand Management Financial Management Service Portfolio Management Service Catalog Management Enterprise Reporting Service Level Management Capacity / Availability Management Problem Management Incident Management IT Service Continuity Knowledge Management Supplier Management Change Management Release & Deployment Management Service Asset & Configuration Mgmt Engineering Applications
8 Poll Question 8 Do you think your organization has a good understanding of what your customers expect from its services?» Yes» No 2011 Cask, LLC Strategy. Solutions. Success.
9 9 Why does my mother care?
10 Can a company survive without IT? 10 Sales Force AD SAP PeopleSoft Oracle Lawson Service Desk Mobile Phones VPN Instant Message HR Facilities Intranet
11 Difficulty in Showing Value of IT 11» Define the business services used» Create Service Design Packages» Map business services to IT services» Negotiate Service Level Agreements with customer base» Use existing data to determine IT service costs» Aggregate IT service costs by mapped business service» Associate revenue of business service» Understand the customer experience Service Cost Business Services Service Name and Description SLA Customer Experience
12 What should your customers expect?
13 Poll Question 13 What do you believe will be the biggest challenge in setting up a Service Catalog?» Understanding customer requirements» Gaining buy-in from the business» Ability to demonstrate the ROI» Defining and designing services» Lack of appropriate technology/tool 2011 Cask, LLC Strategy. Solutions. Success.
14 Upstreaming 14» Shift higher % of incidents and requests upstream» Lower service cost» Reduce time to deliver» Service Catalog promotes Self Service SELF SERVICE ($) Tier 0 SERVICE DESK ($$) Tier 1 DESKTOP SERVICES ($$$) Tier 2 NETWORK DEVELOPMENT SUPPORT ($$$$) Tier 3
15 Lack of Innovation 15» Industry-wide 70% of IT service costs are support to keep the lights on; only 30% is spent on innovation and development» Process improvement and automation enable a reduction in support and a shift of resources to address» Innovation» Competitive advantage» IT transformation example; Randy Mott
16 3 Steps for Building a Business Case 1. Understand the customers and business» Work with customers to understand their service expectations and priorities» Define the business services with your customer(s)» Use workshops for common understanding and develop vision 2. Define the IT service value chain» Understand the current process for ordering services» Review the efficiency and cost of key services» Identify customer pain points and ways to improve» Identify the benefits of implementing an automated Service Catalog 3. Realize the vision» Build an improvement plan with business objectives and costs» Business case and ROI over 2/3 years should include hard savings, soft savings, tangible and intangible benefits» Build a practical program to implement» Get people on board
17 Business Case Example 1. Customer and Business Objectives addressed by a Service Catalog a. Financial c. Strategic b. Operational d. Industry 2. Current State and Vision a. Operational efficiency baseline c. Service-based IT b. Cost baseline 3. Business Impact Analysis a. Hard cost savings and ROI c. Analysis of alternatives b. Non-financial benefits 4. Risks and Mitigations 5. Recommendations a. Improvement plan c. Practical program to implement b. Identification of ownership d. Stakeholder support
18 Hard Cost Savings for ROI Report Cost per request without workflow automation Initial interaction time for customer: No. of human interactions x average time per interaction x loaded staff cost` 500/month x 15 min x $85,000 / year Cost of unproductive time: = $5,108/month or No. of requests x unproductive time x average salary with $61,298/year fringe 500/month x 1 hour x $85,000 / year Service Desk cost of handling requests Service Desk cost: No. of requests x Cost per Request Call 1000/month x $24/call = = $20,433/month or $245,192/year $24,000/month or $288,000/year Potential Annual Savings = $326,045 Service Catalog Potential Savings Things to look for: Requests that can be handled by Self Service Catalog 50% waste Things to look = for: $2,554/month or reduction $30,649/year Back-and-forth between customers and delivery teams 50% waste Status request calls = $10,216/month or reduction Incorrect request routing $122,596/year Back and forth Lack of information for streamlined fulfillment 60% call reduction Things to look for: $14,400/month or = $172,800/year Requests for Information New Service Requests Status Requests MACs (Moves, Adds, Changes) Note: Make sure your units of measure are converted. We have used 2080 working hours in a year and 8 working hours in a day for our calculations. If applicable, when calculating costs use Net Present Value (NPV) to look at these savings over time.
19 Poll Question 19 What stage is your organization currently at with a Service Catalog project?» Not started» Intend to start in next 6 months» Intend to start in next 12 months» Intend to start in next 24 months» Do not plan to start 2011 Cask, LLC Strategy. Solutions. Success.
20 Non-financial Benefits» Enables the consumerization of IT» Improves the customer experience» IT is able to its demonstrate value» Improved cost-cutting decisions by understanding service costs» Opportunity to resolve inter-departmental issues with better service based reporting» Capability to re-use for non-it processes» Improved delivery time for requests
21 Analysis of Alternatives» Do-nothing» IT unable to demonstrate value» Inability to determine cost of IT» Confusion as to what services are available» Customers look for alternatives ways of ordering services increasing redundancy and waste» Service Catalog» Mechanism for IT to market services 24x7» Ability to view cost by business service and IT service» Centralized location for all service ordering needs» Improved process and reduction of redundancy and waste» Upstream IT
22 Questions 22 Thank You! For a copy of the presentation or for more Information please contact us: Jason Rosenfeld jason.rosenfeld@caskllc.com Shaun Ericson shaun.ericson@axiossystems.com
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