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© 2004 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice The Business Case for Configuration.

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Presentation on theme: "© 2004 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice The Business Case for Configuration."— Presentation transcript:

1 © 2004 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice The Business Case for Configuration Management What are the Paybacks? Oslo 12 th October 2006 Roger Mallett ( ) Senior Architect, International Expertise Team & Global Openview SWAT Team Hewlett Packard

2 Introduction Roger Mallett – Senior Architect for Hewlett Packard Expert in Asset Management Certified IT Asset Manager & ITIL certified Written 3 books on ITAM best practice with a fourth awaiting publication Is at the forefront - providing advice and guidance to some of the worlds largest enterprise companies

3 IT Operations Focus IT Process Focus Business External Focus Point ToolsConsolidated / Integrated Service Perspective HP OpenView Building blocks to successful enterprise management

4 HP OpenView enterprise management

5 ITSM HP OpenView ITSM Solution Integrated Processes need Integrated Tools Asset Management Consolidated Service Desk Configuration Management Identity Management End To End Application Management Consolidated Event and Performance Management

6 IT challenges Keep the right services up-and-running Help the business better adapt to change Demonstrate ITs value to the business Making IT a valued partner to the business, faster and more effectively Whats keeping you up at night?

7 The Primary Business Challenges Improve productivity Improve the customer experience (faster, more accurate, personalised) Perpetual Change – maintain quality Cost reduction – seek ROI and payback Use of resources - do more with the same Minimise Risk to the company Protect the brand and reputation of the company Reduce manual operations with automation to remove error and increase speed of operation Earn more Sustained growth Provide value for money ASSET MANAGEMENT IS KEY TO BUSINESS SUCCESS

8 External Influences Worldwide Competition Costs vs Profit Regulatory Compliance Industry compliance (oil, gas, telecoms) Financial compliance (basel II, SOX, etc) Software licence compliance (FAST, BSA) Audit Security (protect the intellectual property) Today Business is supported by IT and this means that solutions must fit business requirements. Business requires people, process, technology and knowledge to be successful. Success = the knowledge and ability to deliver the right application or service to the correct user at the right time

9 Key Challenges Faced by Customers Infrastructure Optimization Asset Management Configuration Management Service Management Regulatory Compliance HPs Proposal: How to succeed with all three

10 What are CEOs looking for in Software Tools? Tools that will do the job effectively and efficiently Best in class products – part of a family of products Ease of integration Use a company with impeccable implementation capabilities Progressive Roadmap – ensure future of product Automation – remove complexity and manual error Data accuracy - automated discovery software Shared data Proactive asset management Active CMDB

11 Configuration Management Addresses Operational Details ITAM Affects The Entire Cycle Request Receive Procure Deploy Dispose Stock Monitor IMAC Support Financial Mgmt Configuration Management ITAM covers the complete cycle

12 It Is Important To Note That ITAM Is Much More Than Inventory and Configuration Management Inventory management is about capturing the basics: what/where/who, accurate view of the actual state of your assets Configuration management adds to it the relationships between the configuration items and the processes (planning, identifying, control, status, audit) as defined by ITIL IT asset management is a much broader discipline Several dimensions of management Involves much more stakeholders It introduces the financial and contractual aspects of assets It manages the full lifecycle of the assets, from their acquisition to their disposal Asset management can also go beyond IT assets and address the whole infrastructure

13 Configuration Operational Information Understand the build Relationships Services

14 The best technical solution adds no value without the supporting business practices and resources Processes Standards Disciplines Culture An inaccurate CMDB is more dangerous than no CMDB at all Configuration Management and the CMDB is NOT a pure technology play Configuration management provides essential information and auditing support for more than 50% of critical IT operational processes. Source: Meta Group

15 Asset Management

16 Questions Answered by ITAM How do I establish compliance with things like HIPAA, SOX, CFR section 21? How do I articulate what IT does for the rest of the business? How do I establish a centralized configuration management process for all service management processes? How do I create a catalog of goods and services that exposes what IT can offer and at what price? How do I close the loop from catalog requests through procurement and fulfillment? How do I mitigate the risks associated with failing a SW audit? i.e., fines, public embarrassment, negative stock impact...? How do I provide visibility into the assets I own, where they are located, who has access to them, and how much they are costing me? How do I control growth in SW spend while ensuring I satisfy contractual and regulatory compliance requirements?

17 Asset Management Is Directly Improving The Financial Management Process Makes IT a valued partner to business Moves the business from reactive to proactive Improves service desk productivity & effectiveness IT services to the business Configuration, Release, and Change Management Pre-approved processes Financial Management

18 Asset Management Best Practice Inventory What do we own? Who has them? Where are they? How do we keep this up to date?Inventory What do we own? Who has them? Where are they? How do we keep this up to date? Procurement What should we own? Standards and support? Should we buy or lease? Which is the most cost- effective configuration? Vendor management Volume Purchase Agreements Stock optimizationProcurement What should we own? Standards and support? Should we buy or lease? Which is the most cost- effective configuration? Vendor management Volume Purchase Agreements Stock optimization Contract Management Is it under maintenance? What are the SLAs? Can we negotiate? Are we insured? Contract Management Is it under maintenance? What are the SLAs? Can we negotiate? Are we insured? Software Management Are we compliant? Have we over-purchased? Software Management Are we compliant? Have we over-purchased? Managing Change Should we upgrade? Redeployment strategies? Retirement time? Cascade? Theft problem? Minimizing risk Managing Change Should we upgrade? Redeployment strategies? Retirement time? Cascade? Theft problem? Minimizing risk Financial Planning Forecasting Budget administration Charge-backs Tracking & managing costs Disaster recovery Minimizing tax Enabling accurate reporting Financial Planning Forecasting Budget administration Charge-backs Tracking & managing costs Disaster recovery Minimizing tax Enabling accurate reporting

19 Benefits of IT Asset Management The Payback

20 IT Management

21 ITAM: Lifecycle Costs

22 IDC Say: IDC Quote: HP Thanks to HPs acquisition of Peregrine Systems in 2005, HP now leads the IT asset management software market. The revenue comes from sales of Peregrines AssetCenter solution combined with the asset management portion of HPs OpenView Radia solution. HP is distinguished by being the largest vendor that has almost entirely distributed systems-based revenue (i.e., mostly Unix-, Windows-, and Linux-based revenue) in this market. Over the past two years, HP OpenView has significantly increased its revenue and market share, principally through a series of acquisitions and a more aggressive sales focus. The recently announced agreement to acquire Mercury Interactive will accelerate this trend for HP. For more information, please see HP Announces Agreement to Acquire Peregrine (IDC #34108, September 2005) and HP Doubles Down in Software: Acquires Mercury Interactive for $4.5 Billion (IDC #202869, July 2006). Frederick W. Broussard

23 Service Management

24 Consideration: ITSM is People, Process and Technology Processes - Activity flows, predictable and measurable outcomes, continuous Improvement People - Roles & Responsibilities, Management, Skills Development & Discipline, Organizational Structure, Culture Technology - Infrastructure and management tools

25 A comprehensive offering for your ITSM journey Services Leverage HP expertise and best practices to analyze your current environment, design the optimal approach, then execute and evolve into the future, including support and outsourcing Software Training Align IT with the business, and automate IT processes across technology domains and service providers For CIOs, IT managers, IT project managers, IT employees, OpenView users, ITSM consultants, ITSM project managers ITSM

26 Enterprise Solution You Need: People Knowledge Process Technology HP Openview AssetCenter – integrated technology Business Process Engineering & ITAM / ITIL Best Practice help HP can deliver expert resources and train staff Automated Discovery (ED)

27 HPs IT Service Management Reference Model Provides IT strategies and defines service portfolios to increase the value IT brings to the business Provides daily monitored services and handles customer service requests to meet agreed service levels and increase customer satisfaction Provides detailed services specifications to balance service quality with service cost Provides project-based, tested service releases to minimize service activation risks and reduce implementation costs Provides service agreements, information, and coordination to execute against service commitments An approach to transform IT organizations to being business-driven, focusing on continuous business-IT alignment, and delivering IT services at agreed-upon service levels, quality, agility, and cost targets

28 ITSM is Not Just a Collection of Best Practices Service planning IT strategy and architecture planning Customer management IT business assessment Security management Continuity management Availability management Capacity management Financial management Service-level management Configuration management Change management Problem management Incident and service request management Operations management Service build and test Release to production ITSM is a System of Best Practices to Achieve World Class Results Service planning IT business assessment IT strategy and architecture planning Customer management Service build and test Release to production Availability management Continuity management Security management Capacity management Financial management Service-level management Change management Configuration management Operations management Problem management Incident and service request management

29 Governance, Enterprise Arch, and ITSM Assessments Business case development Program & project management setup Management architecture design Process & organizational design Education & communication Develop transition plan Support, benchmark, Assessments certification Operational ITSM – evolve & continually improve IT Service Management Both Broad and Deep

30 Service Management Portfolio IT Business ManagementService Management Application & Infrastructure Management IT Service Management Infrastructure & Application Monitoring and Control - Health Monitoring - Event Management - Job Scheduling & Control Software and Configuration Provisioning - Discovery and Mapping - Software Distribution - Core Configuration (IMAC) - Deployment Automation (workflow) - Policy Based Mgmt Performance and Capacity Monitoring - Performance & Capacity Monitoring - Application Response Monitoring (E2E) - Performance & Capacity Reporting Service Driven Operations - Service-oriented Monitoring - SLA-driven Operations Mgmt - Service Modelling - Service Reporting/Dashboards Consolidated Service Desk - ITIL Service Support Processes - Knowledge and Escalation Mgmt - CMDB design and implementation - Automation technology IT Transformation - Assessment & Planning - Implementation Services (ITT,ITSM) - IT Organizational Design - Management of Chance IT Governance - Best Practice Workshop - Implementation Services - IT Performance & Measurement IT Asset and Financial Mgmt - Asset Tracking, Retirement and Disposal - Asset Cost, Contract & Lease Mgmt - Budgeting and Chargeback - Procurement & Inventory Mgmt Business Process Monitoring Storage Management ITSM Reference Model Services - Assessments - Process Design -Implementation - Deployment Service Life-cycle Management - Service Planning and Catalogue - Shared Services Delivery Mgmt - Service Request Management (Portal) - Service Fulfilment - Service Tracking and Reporting - Service costing/pricing

31 Summary

32 Bottom Line - ITAM Repeatable, documented processes are essential to improving IT service delivery and management. The ITIL framework provides an effective foundation for quality IT service management. Quality Predictability Consistency

33 This Means: Discovery Asset tracking Asset repository (CMDB) Financial management of assets – costs, budget, TCO, chargeback Proactively manage software licence compliance, entitlement, and utilization Contract management Cable & circuit management Management of service relationships Manage current state Simple, standardized and managed Software licence definition and reconciliation Entitlement and utilization management REDUCE RISK! Summary: Manage ITAM Proactively

34 The Paybacks: ITAM Business Benefits Improve Financial Performance Reduce cost Supply Critical information to IT projects that improve asset use and reduce costs Management and control of IT asset costs and services as a result of standardizing assets in inventory Improve IT productivity and service levels Improve ability to deploy and manage IT assets to support business unit objectives Communicate total cost of ownership and ramifications of IT needs/requests to business units Mitigate risks Reduced risk from exposure to SW license compliance issues, asset failure rates, and overspending that results from poor contract and purchasing management Support financial disclosures under requirements by Sarbanes Oxley, IFRC in the EU, etc. Reduced legal exposure as a result of improved contract management Reduced security breaches created by violations to corporate policy associated with rogue hardware and software. IT Transparency Make IT spend transparent to the businesses they support (i.e be able to explain why costs are what they are and how the services drive business events).

35 Why HP? World Class products Flexibility Scalability Connectivity Best practice Delivery Team / Methodology Best practices - Value Path Enable Regulatory Compliance Business Risk Reduction Asset and Service Management experts Product Roadmap Worldwide support organisation Expert training organisation

36 © 2004 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice Thank you Any Questions? Roger Mallett


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