Development of Enterprise Computing Asset Management: Processes and Metrics by Jason C. H. Chen, Ph.D. Professor of MIS Gonzaga University Spokane, WA 99258, USA

Dr. Chen, Computing Asset Management TM -2 Project Description: Asset management can reduce the cost of computing without reducing effectiveness. The project will: l Identify a process for managing site assets l Identify metrics to monitor l Identify a process for collecting the metrics

Dr. Chen, Computing Asset Management TM -3 What is Computing Asset Management? l Computing asset management is a process or technology that helps to manage computer hardware/software procurement, usage, facilitate license compliance, track inventory, and enable change, providing overall ability to efficiently deploy software and manage portfolios.

Dr. Chen, Computing Asset Management TM -4 Goals of Computing Asset Management l Reduce costs l Increase effectiveness l Enhance return on investment (ROI)

Dr. Chen, Computing Asset Management TM -5 An Enterprise Model to Computing Asset Management Information Knowledge Change

Dr. Chen, Computing Asset Management TM -6 Planning Analysis Design Implementation Maintenance Project Development Process: (PDP) Change Information Knowledge Processes, Metrics Report to IT Managers, CIOs, CFOs etc. Report to IT Managers, CIOs, CFOs etc. Information Quality Metrics:  Time  Content  Form Information Quality Metrics:  Time  Content  Form Knowledge Management Process(KMP)  Knowledge Creation  Knowledge Sharing  Capture  Organize  Access  Knowledge Application  USE Knowledge Management Process(KMP)  Knowledge Creation  Knowledge Sharing  Capture  Organize  Access  Knowledge Application  USE Change Management Process(CMP):  Culture  Operational  Benchmarking  Outsourcing  BPI/BPR  TCO  Desktop Asset Management Change Management Process(CMP):  Culture  Operational  Benchmarking  Outsourcing  BPI/BPR  TCO  Desktop Asset Management GOALS:  Reduce costs  Increase effectiveness  Enhance ROI

Dr. Chen, Computing Asset Management TM -7 Content Scope Functional Scope Capture Organize Access Knowledge Sharing Create Knowledge Creation Use Knowledge Application Value Cross-Process Activities Collaboration Maintenance Figure 6: Gartner Group’s KM Process Framework

Dr. Chen, Computing Asset Management TM -8

Dr. Chen, Computing Asset Management TM -9 What is a Process? l A process is a set of linked activities that transform inputs into outputs. l An input or output may be a type of manpower/services, equipment, materials/goods, methods, and environment.

Dr. Chen, Computing Asset Management TM -10 What is a Process? (Conti.) l The transformation involves the addition or creation of value in one of three aspects: time (when), place (where), or form (how).

Dr. Chen, Computing Asset Management TM -11 Metrics l Metrics are combined measures and variables that quantify a goal. l Metric values are the numerical values for metrics. l Time horizon is the period allowed for achieving the goal or objective.

Dr. Chen, Computing Asset Management TM -12 What is Total Cost of Ownership (TCO)? l is collective (and usually annualized) cost (both direct and indirect) of providing and maintaining corporate information services

Dr. Chen, Computing Asset Management TM -13 Goals of TCO l Help enterprises understand many of the components involved in both the budgeted (direct) and unbudgeted (indirect/hidden) costs of acquiring, operating and managing their IT infrastructures throughout its life cycle l Reduce TCO l Increase ROI

Dr. Chen, Computing Asset Management TM -14 Four Metrics for TCO Model Œ Capital  Technical Support Ž Administration  End-user operations Each category is further divided into desktop and network components

Dr. Chen, Computing Asset Management TM -15 Total Cost of Ownership (TCO) by Platform

Dr. Chen, Computing Asset Management TM -16 A Process model: 10 Steps To A Lower PC TCO Œ Take a PC inventory  Match the box with the usage Ž Adopt and enforce internal standards  Choose a vendor you can work with over the long haul  Develop an implementation plan and stick to it

Dr. Chen, Computing Asset Management TM Steps To A Lower PC TCO (Conti.) ‘ You can't improve what you can't measure ’ Know what you're paying for “ Match your TCO model and methods to your industry ” Look at what other companies have done to reduce TCO • Investigate unorthodox solutions to cutting costs

Dr. Chen, Computing Asset Management TM -18 CFO CIO IS-Manager MS/SMS Desktop Asset Management (DAM) Software Tool Desktop Asset Management (DAM) Software Tool Inventory D.B. DAM D.B. Other D.B. Financial D.B. Financial Management Software Tool Financial Management Software Tool TCOTCO Asset Acquisition (What, How many, and When) Planning/Budgeting/Forecasting Asset Requirements ROI Analysis Maximizing Advantages of other Alternatives Help Desk (Who has Which software, Where and When) Software Distribution Y2K (What, Where) Messaging Management (Service Level Management) Figure 8: A Desktop Asset Management(DAM) software Tool Environment Model Figure 8: A Desktop Asset Management(DAM) software Tool Environment Model

V-A DAM TOOL Metering/ Monitoring Inventory Software Distribution SMS MS/ Systems Management Server IT Manager/ System Administrator/ CIO/CFO Figure 9: AValue-Added Desktop Asset Management (V-A DAM) SoftwareTool Model  DAM Database Messaging Management Y2k

V-A DAM TOOL (Cenergy) Metering/ Monitoring (CentaMeter) Inventory (NetCensus) Software Distribution (WinINSTALL) SMS MS/ Systems Management Server IT Manager/ System Administrator/ CIO/CFO Figure 10: AValue-Added Desktop Asset Management (V-A DAM) SoftwareTool Model (Tally Systems Corp.)    DAM Database Messaging Management (MailCheck/ Veranda) Y2k (Centennial 2000)

Dr. Chen, Computing Asset Management TM -21 A Survey from Gartner... Gartner studied 30 end-user organizations with an average of 7,000 workstations, the firm found the following results: l 68 percent reported that their organization had an asset database l 50 percent claimed that asset management was a priority for the Information Systems (IS) organization l 26 percent claimed asset management was a priority for the enterprise l 23 percent reported that formal asset management plans had been implemented l 19 percent had an individual responsible for enterprise- wide asset management

Dr. Chen, Computing Asset Management TM -22 A Company Example of Cost Savings on MS/Office Suite Licensing l Based on total number of PCs of 80,000 units 1. Assume that a company pays $100 to each copy Total cost: $100 x 80,000=$8,000,000 l Based on number of concurrent users: 80% 1. MS/Office suite cost $100 x 80,000 x 80% = $6,400, Asset management software (Cenergy, with 3 modules) cost: Cost on ASM ($17/each): $17 x 80,000=$1,360, Total costs: $6,400,000 + $1,360,000= $7,760,000

Dr. Chen, Computing Asset Management TM -23 A Company Example of Cost Savings on MS/Office Suite Licensing (Cont.) l Based on total number of PCs of 80,000 units 1. Assume that a company pays $100 to each copy Total cost: $100 x 80,000=$8,000, TOTAL SAVINGS: $8,000,000 - $7,760,000 = $240, Plus other potential strategic advantages l Based on number of concurrent users: 80% 1. MS/Office suite cost $100 x 80,000 x 80% = $6,400, Asset management software (Cenergy, with 3 modules) cost: Cost on AMS ($17/each): $17 x 80,000=$1,360, Total costs: $6,400,000 + $1,360,000= $7,760,000

Dr. Chen, Computing Asset Management TM -24 A Company Example of Cost Savings on MS/Office Suite Licensing (Cont.) l Based on total number of PCs of 80,000 units 1. Assume that a company pays $100 to each copy Total cost: $100 x 80,000=$8,000, TOTAL SAVINGS: $8,000,000 - $7,360,000 = $640, Plus other potential strategic advantages l Based on number of concurrent users: 75% 1. MS/Office suite cost $100 x 80,000 x 75% = $6,000, Asset management software (Cenergy, with 3 modules) cost: Cost on AMS ($17/each): $17 x 80,000=$1,360, Total costs: $6,000,000 + $1,360,000= $7,360,000

Dr. Chen, Computing Asset Management TM -25 Conclusion and Recommendations l Apply the suggested enterprise model to project development processes l Use suggested processes and metrics in the computing asset management l Evaluate a different software licensing strategy (e.g., concurrent users) by using “metering/monitoring” function from one of the suggested DAM software tools to reduce TOC and increase/explore other potential strategic advantages

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