Tag Archive | "Business Alignment"

Value & Benefits of Business Service Management

Tags: Business Alignment, Business Service Management, IT Management, Performance, ROI, Service Level, Service Value


I have been asked many, many times “what is the return of a business service management project / practice”.  The answer is honestly, “it depends” on your environment, how much efficiency can be driven into it, how much consolidation, cost of outages, the list goes on.  However, I know that is absolutely the answer everyone despises and I can say by NOT tackling a shift from technology to services, it costs you 2% of revenue (at a minimum) every year.

Thus, I put my old analyst hat back on and thought as an analyst what would I do?  Create a model by which to calculate and start building out a business case.  I have put this basic information into a short presentation and have added it to our resource page.  The first link is a streaming slide presentation and the second is a self contained PDF file with sound.  The PDF file takes a few minutes to download, but you can share the file as you like.

The objective with this slide show was to bring together the statistics from many analyst papers, provide a simple model and understanding of what it costs you to not manage services.  We are at a tipping point this year with agile technology, new deployment options and competitive cost models.

This post goes hand in hand with the previous Featured Post on Finding Your Services.  Know how to identify and classify your services for service value.  The next in that series will be examples of services and the start of a service catalog.

Let me know your thoughts on this!  How are you getting to service value and what does it cost you?

Michele

Click Here – This is the streaming slide show and is just over 6 minutes.

Click Here – This is the self contained PDF download – 8M download, it does take a few minutes to download and start, but you may share accordingly.

Funny commercials during Super Bowl

Tags: BSM, Business Alignment, Business Service Management, IT Management, Service Level


There were some funny commercials and some not so funny commercials during the Super Bowl.   The one with Ozzie and Beiber was kind of funny, but I question if the commercial had impact, as in, did it sell something?   If you saw the commercial, which company was the commercial for, what is it that they were selling?

Business Service Management has some of the same challenges.  There are many metrics that IT is watching, but in the end, what is it that they are trying to get out of the metrics, what is it that we are watching in IT?   Does looking at a dashboard with response times mean BSM, does looking at a group of correlated alarms equate to doing BSM, does showing the availability of a database imply BSM… no, but all of it together with even more gets you into the ball park of Business Service Management.

The point is, focusing on the underlying technologies or only specific areas of the enterprise does not allow for IT to have a good understanding of the Services being offered and/or if the Services are up, running and happy.  One of the main objectives of Business Service Management is to have a clear picture of the Services that are being offered to the end customer (internal or external), being able to see the services end to end and understand the overall health and availability.   Don’t allow IT to get distracted by the technology silos, get them focused on the Services being provided to the end users.

Tobin

Do You Know How Much Your IT Costs? – NetworkWorld

Tags: BSM, Business Alignment, Business Service Management, Costs, IT Management, NetworkWorld, Service Value


The Hub Commentary_

The lack of clarity and transparency of IT services as consumed by the business is a catalyst for many of the service providers and as-a-Service offerings.  The service providers are in business to grow and drive revenue as should IT organizations.  Business Service Management practices and knowing your services is first step in achieving this transparency in measuring services both for quality and cost.

For many years IT has pushed back against such transparency and as the article ends, it could work in their favor to provide this visibility to costs.  It’s like cell phone minutes, as long as I’m not paying the bill I just use the phone without regard.  As soon as I had to assess my own usage and purchase my own phone, I had an eye opening experience.  You mean when I was in Europe it was like $2.00/minute and then there was roaming too!  Yikes!  Why didn’t someone just tell me and I would have planned accordingly and may not have used the phone as much or as often.

As long as all services are created equal and there is cool mobile and remote technology to use, the business will continue to ask for the highest levels of service and support for 24×7, where ever I am and on whatever device I choose to use.  If the costs were exposed and the tables turned to ask the questions “what is the value”, we might find the value isn’t really there and the business would say turn that off.  Currently, IT doesn’t have the right to ask the business value question until they can answer the cost question.

Do you know what your services cost and what the value is they deliver?

Michele

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For years, enterprise IT departments could be fuzzy about the costs of individual IT services and applications, but tight budgets and the relative clarity of cloud computing costs have forced CIOs into sharp focus.  (Read Full Article…)

Reimagine IT: The 2011 CIO Agenda – Gartner Blogs

Tags: Business Alignment, Business Service Management, Cloud, Gartner, IT Management, Spending, Trends


The Hub Commentary_

It’s that time of year for Gartner’s updated CIO Agenda and survey.  2011 promises to be a year of change for the brave that reach out and embrace it.  On my personal blog I used the phrase, Technology without Imagination is Commodity – Technology with Imagination has Endless Possibilities!

I find change exciting, budgets are loosening, new technologies and approaches to business are available – now what are you going to do with it?

Michele

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Its time to reimagine IT as business and technical changes require CIOs to answer new questions rather than just find new answers to old questions. That is what Dave Aron and myself found as we completed a worldwide CIO survey from September to December 2010. The survey includes responses from 2,014 CIOs representing more than $160 billion in corporate and public-sector IT spending across 50 countries and 38 industries.  (Read Full Article…)

ITIL will be the end of ITIL – Part 2 – The Swell Grows

Tags: BSM, Business Alignment, Business Service Management, CIO, Cloud, ITIL, Service Level, Service Providers


Earlier this year I suggested a prediction regarding the waning discussion of ITIL and this week I expanded upon that prediction in a post, “ITIL will be the end of ITIL”. The same day I posted my discussion, I received my brochure for the HDI Conference where Malcolm Fry is set to speak on “What’s up with ITIL?”.  The description starts with questions regarding the dying of ITIL, what’s going on, etc.  Defense – first indication that a wave is starting to swell in the market.

I received many great questions and discussion, which still says ITIL is alive and well in the ranks of IT organizations, trainers, consultants, certifying organizations, etc.  I do want to mention again, I do not see the practices and advice dying, going away or becoming replaced, just that the outward facing conversations will and need to stop being about ITIL and need to start being about the business service, value and performance.  ITIL is merely advice on how to manage your internal operations efficiently.

The catalyst in the market is the cloud and the explosive growth of service providers.  They need to have good operational processes in place or they are one outage away from being out of business.  However, the difference is they are not talking about ITIL, they are talking about the benefits to the business and the simplicity of running and subscribing to services in The Cloud.

The business leader has an internal organization  talking about justifying a CMDB project and a cloud provider talking about monthly subscriptions to online purchasing systems at a monthly or usage fee and here is a rate card, use it like a credit card.  Did I just see that leader walk away from the project justification discussion table and walk off into the sunset all googly eyed with the cloud service provider?

Last night I pulled another article from CIO regarding the innovation expectations the business has for its IT organization.  Embrace the development of innovating services and automate the commodity, routine, mundane that merely powers the lights – free yourself to drive growth.

I had a discussion with a very large and mature cloud service provider organization this morning on just the topic of providing the value add transparency on top of their services – the dashboard view that will communicate service performance to their customers.  The providers know that the business wants transparency and the providers want to insure that there isn’t a perception challenge regarding service delivery and the ones that will be most successful are baking it into there infrastructure and services from the beginning.  IT, are you or are you still talking about ITIL?

I’ve digressed, but the example is clear.  Those that sell technology services for a living know how to speak to your business leaders and how to bake proper service monitoring, management, measuring and communication into their services.  Steal a play from their playbook – implement and deliver the communication of service performance and service value into your services and sell your services, not the process of building services.

Are you communicating Service Value by selling the car or are you still selling the parts and directions as to how to build the car?

Michele

5 Innovation Opportunities for CIOs in 2011 – CIO

Tags: Business Alignment, Business Service Management, CIO, Cloud, Innovation, ITIL, Service Value


The Hub Commentary_

The theme of driving growth, innovation and value based upon the customer experience continues.  2011 will be a year of innovation and next year’s Fortune 500 list will see organizations swap places for the lead of their industry.  Very refreshing to see focus on technology again for innovation over back office automation.

My post of yesterday regarding ITIL generated many questions both in the Twitter and on The Hub regarding what replaces it and why did I post such blasphemy.  This article again solidifies the opinion.  The focus is the customer you sell goods and services to, not the end user in your company, technology for growth and innovation will be king in 2011.  Those focused on justifying ITIL projects will be left behind.

Again, I’m not against process for efficiency and there is a balancing act as this author states at the end of the article.  For far too long IT has been inwardly focused and thus turning up the heat of frustration by the business to drive to focus on services that your business offers to the market and driving growth.

I find this curious as technologist or maybe I’ve been on the software development side for far too long.  I thought most of us liked to work on new, cool, gee whiz things rather than just keeping the lights on.

Are you just keeping the lights on or driving innovation?

Michele

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Most of the CIOs I speak with are looking at the year ahead as an opportunity to drive innovation within their organizations, usually by automating back office activities. That’s a good place to start.  (Read Full Article…)

Wall Street Beat: Software to Drive IT Growth – CIO

Tags: Business Alignment, Business Service Management, CIO, Cloud, Transformation, Trends


The Hub Commentary_

Here we go IT – another chance to redeem ourselves and service enable our infrastructure and take advantage of new technology.  The business has cracked the door to invest in technology that will transform the business and new systems management tools to communicate service performance and value realizing that new technology will take new approaches, all I can say is – Wake Up and Smell the Coffee and take advantage of the opportunity to drive your business forward!

Our businesses get it, learn to speak business language rather than ITIL language and use technology to grow your business to the next level.  We’ll talk ITIL in another post, but communicate service value because the service providers are and will eat your data center for lunch given the opportunity.  This is the catalyst that will make or break your data center, reach out and take it back!

Michele

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Intel (INTC) and SAP results and various forecasts issued this week suggest that while 2010 was a recovery year for just about all sectors of IT, enterprise software and accompanying services will be the main drivers for technology revenue growth over the next few years.  (Read Full Article…)

Ten Things to Watch for in 2011 – EMA Blogs

Tags: Automation, Business Alignment, Business Service Management, Cloud, EMA, IT Management, Spending, Trends


The Hub Commentary_

Another great post by my friend Dennis.

Michele

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A lot comes to mind with a title like this one.  So, let’s start by wiping away areas like politics and finances (except as they relate to IT), births, deaths, marriages and celebrities.  In fact, there’s still a very long list of possibilities by just focusing on IT and everything that goes into managing and optimizing services – let alone all of the trends around cloud.   (Read Full Article…)

Cloud Computing: A Shift from IT Luxory to Business Necessity – The Huffington Post

Tags: Business Alignment, Business Service Management, Cloud, IT Strategy, The Huffington Post


The Hub Commentary_

Well written piece and what this leads me to is that as services require updates or new service development begins in businesses, services will be evaluated as to the best deployment option.  Those options may be to subscribe to a SaaS (Software-as-a-Service) provider for the full application and infrastructure with the low hanging fruit being commodity processes like:  IT Service Desk, HR , Collaboration, etc.  Another might be IaaS (Infrastructure-as-a-Service) to add capacity on demand, to run workloads for a given service in it’s entirety or maybe merely as infrastructure for the development organization.

Just because something can run in the cloud, doesn’t dictate that it should.  What I disagree with in the article is the heading and statement that “cloud allows IT decision makers to drive business strategy”.  IT must be driving value into the business strategy regardless of deployment option and communicating service performance and cloud computing or any other technology is not the answer that drives that behavior.

Cloud computing must be embraced, evaluated and deployed strategically – Cloud will not drive business strategy – Cloud is a tool that will enable agility in business strategy.

Michele

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Cloud computing may be defined as location independent computing whereby shared servers — for the purposes of this article, external to the enterprise — provide resources, software, and data to computers and other devices on demand. Cloud computing may have started out as an emerging trend that only IT professionals could get excited about (or fear), but it has quickly become one of the most important paradigm shifts in business today.  (Read Full Article…)

IT Transformation Begins Today – Resistance is Futile

Tags: Best Practices, Business Alignment, Business Service Management, Cloud, IT Management, Service Providers, Transformation


The conversation IT has with the business must change this year and this is the year of transformation predicted back in 2003 by Nicholas Carr in his Harvard Business Review article, “IT Doesn’t Matter”.  The cloud, virtualization and the growing number of service providers with as-a-Service options are the catalyst that will force this transformation in market time during 2011.

If you have kept up with my news posts this week, I swear I was unable to find much news to comment and post on that did not have to do with the service providers and transformation.  My favorite post of all is the CIO article, “ITIL vs The Cloud:  Pick One”, REALLY?  You are kidding right?  This and another post, “Consider the Cloud a Solution, not a Problem” are exactly the headlines and mentality that will send IT jobs To the proverbial Cloud, just as Nicholas Carr predicted.

The way we manage technology and our processes today should not hold us in the past.  Amazon is doing it again.  Amazon changed the industry from bricks and mortar retail to online, almost overnight.  Transform or die, it happened and is happening again.  Amazon is offering infrastructure as-a-Service, purchasable on a credit card.  Now let’s start watching the leaders in each industry flip flop based upon those who embrace new technology, agile development AND have the foresight to service enable their workloads instead of dissing and complaining about what and how much monitoring Amazon should be responsible for.  IT is responsible for measuring and communicating service performance, instrument your workloads and inject them with the intelligence required to communicate service performance.  These will be the transformational leaders of tomorrow.

Communicating service performance is on IT, are you making the transformation?

Michele

ITIL vs The Cloud: Pick One – CIO – Really?!?!

Tags: Business Alignment, Business Service Management, CIO, Cloud, ITIL, Service Providers, Trends


The Hub Commentary

The opening statement of the article says it all and what I heard is, “the technology and services are incompatible with our processes” and resistance to change and why I predicted the service providers will feast on data centers in 2011 in my predictions post and why I also predicted first in the list that ITIL will wane in the conversation.  Data  center staff has to wake up and smell the coffee, so to speak.  Technology is commodity, driving business is the value.  Think of it this way, when you go to the bakery do you care how they make the chocolate cake or do you just want to buy a chocolate cake?

It is no longer about the monitoring and managing of technology and configurations, that’s the commodity and those jobs are with the service providers.  The IT jobs are analytics, business performance, using technology to grow the business.  All three of my posts today are articles referencing the impending transformation that the data center must embrace in 2011 or be outsourced.

Business is frustrated with IT because IT does nothing but talk and impose “how” to manage technology on the business rather than delivering and driving services.  When you outsource (cloud, as-a-Service, take your pick), you are purchasing a service, not managing the infrastructure and how they manage their processes.  Define the contract, service expectation, reliability/performance/availability considerations and what you expect during an service impacting event.  That’s it.  The service provider is tasked with meeting that service contract and defining the processes that insure they do.

Now I also state in these conversations over and over again, many of these start-up service providers are one outage away from being out of business because they do not have good practices in place.  Yes, as a customer you should quiz and probe to gain comfort that they do know how to run the business (you notice I said run the business – not manage problem tickets), write the contract and manage to the contract.

I have several service level agreement posts and cloud service provider posts.  ITIL (I am certified) is advice on processes, not SEC filing rules for public companies.  ITIL and it’s followers will slowly fade into the woodwork if they do not embrace changing market dynamics and technologies.  The single biggest problem with ITIL that I will blog separately on is that it is still stuck in defining a life cycle, a process for the service and not how to deliver service value driving business value.   More on that another day…

2011 is the year of the cloud, virtualization, service providers, analytics for business performance and mixed /complex environments, not ITIL in the least.  Communicating performance inclusive of right sourced components as part of the service is the transformation goal.   No one will care how the data center communicates business performance, only that they do and drive value!

Are you communicating business performance and driving value or still communicating how you manage a data center resistant to the cloud because it changes a process?

Michele

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The Cloud is fundamentally incompatible with ITIL — the most widely accepted framework for professional IT management.  (Read Full Article…)

IT Hiring Shows Gains, but Jobs may be Shifting – NetworkWorld

Tags: Business Alignment, Business Service Management, Jobs, NetworkWorld, Service Providers, Transformation, Trends


The Hub Commentary__

Absolutely the jobs are shifting.  Technology and the monitoring, configuring and management of it is commodity.  Much of it could be run in the cloud, by a service provider, managed by SaaS offerings and open source – the choices are endless today in configuring the right sized and right sourced data center.

As in my previous commentary on the post regarding business performance and the requirements in 2011 for IT to transform itself, this is the transformation.  IT is no longer about technology monitoring and managing, it is about communicating business performance and using technology to drive business growth and performance.  This is and will shift the traditional technologist jobs to the service providers and the analytical and service management roles inside the data center.

Is your IT and data center tranforming yet?

Michele

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The U.S. Labor Dept. said that the economy added 103,000 jobs overall, and led to an unemployment rate reduction from 9.8% to 9.4%, a broader trend that also appeared in tech hiring.  (Read Full Article…)

Midsized Co’s Behind Lg Ent’s in Aligning IT to Business–NetworkWorld

Tags: Business Alignment, Business Service Management, Configuration, Forrester, IT Management Tools, NetworkWorld, Performance


The Hub Commentary __

Beth’s opening statement regarding the Aberdeen findings sums it up, mid size organizations are under performing larger organizations.  Pick up the Fortune 500 list as I do each year and look at the top 5 in each industry.  There are 3 things that always standout:

  1. Those that lead, know how to harness the commodity of technology to not only power, but drive business.
  2. Those that lead, lead by magnitudes greater than their followers.
  3. Those that innovate, change how a market functions, don’t always stay on top.  Check out where eBay is for example.  The innovator often gets leapfrogged.

Beth references a previous article my good friend Glenn O’Donnell of Forrester is quoted offering the following 5 pieces of advice:

  1. Consolidate management tools
  2. Invest in Network Change and Config Mgmt
  3. Application awareness
  4. Pay for analysis, not monitoring
  5. Get more from existing tools

2011 will be the year IT transforms to measure business performance and ties the analytics to the data to drive business performance, not IT or technology performance.  Use technology for the mundane and routine, measure performance, reduce costs, do more with less and measuring the network and application performance regardless of where it resides will be key to having that complete view of business performance to use technology to improve that performance in clever ways.

Michele

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If you’re overseeing performance management initiatives at a midsized organization — one with annual revenue between $50 million and $500 million — then you probably have a thing or two to learn from your counterparts at larger enterprises.  (Read Full Article …)

Business Service Management and CMDB

Tags: Availability, Best Practices, BSM, Business Alignment, Business Service Management, CMDB, CMS, IT Management, IT Management Tools, ITIL, Service Level


So you have a console that has your Business Service Management views.   You set up the views to show the key Services you are providing to your end customer(s) (EMail, Databases,  CRM, etc).  You somehow are bringing in monitoring data in order to light up the service views in order to show some type of condition and health. You figured out how to measure the Service Levels and provide all of these details back to the end users and management in a dashboard.  The question is, how do you maintain it?

If you have been following ITIL, one approach is to integrate the BSM solution with the CMDB solution (assuming they are different solutions).   The CMDB probably has discovery populating it with new CI’s and updates to CI’s.  The CMDB should have inputs to other systems for additional details around the CI’s.   In the end, the CMDB is the location for the factiods around the Services such as all of the CI’s comprising the Service, relationships between the CI’s, current configuration of the CI’s and so on.   If those details are available, why wouldn’t you use it to drive the way in which IT is managing the environment.   As things change within the enterprise, the CMDB is updated and in turn the BSM views should auto-magically update also.

Tobin

What is Business Service Management

Tags: BSM, Business Alignment, Business Service Management, IT Management, IT Management Tools, Service Level


If you are reading this, then there must still be some questions in your mind on what Business Service Management (BSM) is, I’m not going to give you the elevator pitch, there are lots of companies with different flavors of those, I’ll take another angle on it that might help.

There is this large shipping company, they ship thousands of packages a day.  One of their critical operations is in a large hanger at an airport.   Planes and trucks are unloading packages and they need to be sorted and loaded back onto different planes and trucks.   There is significant computer automation that moves these packages along their way and in turn, these systems need monitoring.  Having an end to end view of the unloading, sorting and reloading of packages with a realtime update on volume, outages and other metrics is important to them.  Some might say that this end to end view is a very technical view and not BSM, to this shipping company, shipping packages is their business and being able to see this piece of the Service is important.

A large financial firm has many traders, it is important to ensure that all of the trading systems are up and running, network links to the outside world are required for these trades as well as the traders workstations and how well they are performing.  Having an end to end view of the complete trading application with up to date availability, trading volumes and other metrics is important for them to understand if they are making or losing money.

The typical BSM for a company is to be able to set up end to end views of the important corporate applications like EMail or CRM, but that is not the only example of BSM, shipping, trading, manufacturing, banking, there are endless examples of managing the environment in a manner that aligns IT with the business they are in.  By IT leveraging the BSM approach, they are ensuring that they are looking at the things that are important to the business, in turn they are providing value to the business.

Tobin

How Complexity Spilled the Oil – Forrester I&O Blog

Tags: Availability, Business Alignment, Business Service Management, Forrester, IT Management, IT Management Tools


The Hub Commentary  __

A tweet pointed me to this post today and what a great post and analogy.  I, in fact, kick off most presentations by stating Business Service Management is EASY!  In fact, you hold the key to the most valuable insurance policy in your company.  Business runs on technology, it is commodity, like electricity, we count on it being there to conduct business.  I have a previous post on just that insurance policy in hurricane season on the east coast of the United States where the call center becomes the hub of activity for the power companies.  Customers phone in outages, crews are dispatched  and power is restored more quickly with better monitoring of the technology supporting the call center and dispatching crews.  Technology cannot stop an impending natural disaster, like a hurricane, it contains the effects of the natural disaster as described in the linked to post.

As with the oil spill that my friend JP references, early warning can aid to avoid an event or contain the event as was the case with the the power outage in the North Eastern US a few years ago.  This CIO once told me it took only 8 seconds for that outage to cascade from Ohio to the east coast.   Avoiding it at that stage was not possible, containing it becomes the goal.  After the event as JP describes, they implemented a monitoring system that correlated data from their grid monitoring system with their technology management tools for that complete picture to avoid events by reading the early warning signals and better contain events when they do occur.  An article is posted here describing the integrated approach this electricity operator took, just as JP describes.

I work with companies every day to justify the insurance policy we know of as Business Service Management.  In tough economic times when spending is reduced, justifying a spend becomes difficult when it is not reducing costs directly.  The cost of the approach and tools is far smaller (even when maintained over time) than the disaster of an outage or spill.

Can your company afford a game of high stakes poker when it depends on technology to operate?

Michele

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The Gulf oil spill of April 2010 was an unprecedented disaster. The National Oil Spill Commission’s report summary shows that this could have been prevented with the use of better technology.  (Read Full Article…)

What is Business Service Management, Really!

Tags: Availability, BSM, Business Alignment, Business Service Management, IT Management, IT Management Tools


A true story, names not revealed to protect the innocent and a Dilbert in the making.  An illustration of Business Service Management, rather than a Wiki like definition, of technology impact and calculating costs and value.

Early in my career, green and wet behind the ears, about 8 months into the job working the 4:00 – 12:00 shift solo (the shift where stuff gets done, but not discovered until 7:00 am the next day) in a distributed data center.  You know what I’m talking about and likely already sense the pain that is about to come.  I knew how to run the jobs, I didn’t know what they were really doing or how to fix things if they went wrong – at least not until one fateful summer night.  I was working for an outsourcer processing insurance claims for the customer to pay the beneficiaries.

The Set-up:

I worked my shift, I left at midnight, jobs done, reports printed, tape back-ups done, the girl working midnight was about to have an easy night.  That is until about 6:30 am when she would attempt to bring 3 mainframes online for the next days claims processing.  Yes, she was greeted with more error codes than she knew what to do with, The Boss received an early alarm/wake-up call, I can’t bring Rodney to life (that’s the nick name of each of our mainframes) HELP!!

The Solution – Scavenger Hunt:

I arrive at work at 4 to chaos, looks of anger and irrecoverable damage on your shift yesterday.  I look around, machines are humming and I say it was not irrecoverable, Rodney is up and running.  The phone rings, I answer it, my friend Richard in a distant location, he asks how are you, I say worst day of my life, he says, “it was you!”, meaning he had helped restore service, but no one ratted me out as the root cause.

Richard walks me through my previous night’s shift and what I did and didn’t notice.  I trashed a bunch of  files.  Not a big deal if you have back-ups, which we did, just hang a tape, reload the files and restart Rodney – 5 minutes.

The Cost – my Penalty:

The Boss comes into the data center and waves at me, come take a walk with me.  I figure I’m about to get fired, afterall, the data center was down for 7 hours, not a single claim processed, beneficiaries didn’t receive checks, my company missed an SLA, dozens of people worked 7 hours to fix my mistake, but there was something even worse I was about to experience.  At 20 something, I couldn’t calculate the number of zero’s for the cost of my simple error.

The Boss walks me through a room with the folks that input claims and reminds me they get paid by the claim, meaning the number of claims they key each day.  My simple mistake caused a 7 hour outage, a team of people to find the root cause in order to restore service, my company may have been slapped with a fine, beneficiary checks were delayed, but most heart wrenching to me was that I impacted the paychecks of more than 100 folks that were paid by the number of claims they keyed each day.  As I walked through the room, they didn’t know I was the root cause, but they were glaring at us none-the-less.

The room seemed the length of a football field that day.  As we exited the room The Boss simply said, “are you going to do this again?” and I quickly responded, “I hope you fire me if I do!”.

Business Service Management – claims processing was my business, my company caused an outage of significant cost.  This happens every day, the cost is quite easy to calculate and the insurance policy to mitigate the risk is far less costly, however, as IT professionals we have a difficult time justifying service enabling our data centers with proper management until there is an outage.  A single outage can cost 1-2% of revenue and a solution to avoid it can be a fraction of that cost.

Data centers are growing more complex, virutalization and cloud computing are seen as low cost options by removing hardware and software costs, however, the cost of support is overlooked and we are entering a familiar cycle of short sided savings over long term cost to repeat the dotcom bust of the 90’s with the hosting providers and web services.  Service Enabling infrastracture with an end-to-end view to pinpoint root cause, visibility to read the indicators before impact so that restoration can be minutes – not hours greatly reducing the cost of an outage has to factored into the solution.  By service enabling with management upfront allows you to take risks, be agile with new technology by having the right management in place to monitor for thresholds, errors, etc. avoiding and mitigating outages.

I know my Boss wasn’t really mad that I was the root cause of an outage, he’s was mad that a 5 minute fix relied upon a 7 hour scavenger hunt!  This is my Dilbert – what’s yours?

Michele

How IT is Managing New Demands: McKinsey Global Survey Results – McKinsey

Tags: Business Alignment, Business Service Management, Cost Reduction, IT Investment, McKinsey, Survey, Trends


The Hub Commentary __

A few interesting results from this survey of over 700 respondents.  Nothing shocking, more with less, improved business efficiency and drive business growth.  New investments on the rise and operating expenses on the decline.

I consider investments in the management, integration and infrastructure visibility enabling service delivery a key component to new investments.  In many of the the articles about new technology, the management component is an afterthought and it is the key to the success of the strategy.  It’s the whole package of leveraging new technology, delivery models and how you monitor/manage/measure it.

In these dynamic times integration is often mentioned in much of the dialog, however, I sense it is often overlooked.  I caution you not to overlook your integration and management strategy as part of your future investments to drive growth to the top line as is expected with all new investment strategies.

Michele

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In our fifth business technology survey, executives say they want more immediate value from IT and forward-looking strategies from technology leaders that support growth and innovation.  (read full article…)

Accidental Cloud Ldr–Stealth Cloud Followers–Which Cloud are you On?

Tags: Best Practices, Business Alignment, Business Service Management, Cloud, Service Providers


Are you leading your organizations cloud roll-out or are you reacting to it? It is happening, better to lead than follow!

The WorkloadIQ post and the article Richard references on the Stealth Cloud from a CIO article reminds me of a previous article about the Accidental Cloud Leader from a Networkworld article.  Both of these articles point to the cloud is coming, the choice facing IT organizations is whether to lead, control costs, mitigate risk, deliver quality service and manage costs or to follow with rising costs, reactive IT, high risk and poor service quality. Richard hits the nail on the head, IT is traditionally change averse and insecure with the concept of outsourcing services. Technology is evolving faster and faster and the very organization that should adopt, deploy and lead with technology continues to lag.

In almost all cases when it comes to sourcing decisions they are done to create change that an organization has difficulty bringing to the organization, not for cost reasons. Commodity functions are best suited for outsourcing, driving standards and managing costs. However, outsourcing the service does not remove accountability for managing service delivery.

Cloud providers are popping up faster than service providers during the dotcom boom days of web hosting, application hosting, etc. There are several key factors to consider as pointed out in these articles and blog posts:

  • Availability of service
  • Risk of a secure service
  • Reliability of the service provider
  • Cost of support

Availability of Service and Reliability of the service provider
The dotcom bust of service providers in the early 2000 era came down to lack of mature management processes. Many providers today are one significant outage away from being out of business. Is this who you trust your services to? Who’s managing and leading this due diligence in contracting for the services in the leader / follower scenario?

When seeking service providers, it is important to understand their management processes and capabilities. You do not want to define them, but the lack of management transparency and process indicates maturity of the service provider and their ability to delivery availibility of services. One thing to note here is not to ask for inappropriate service levels and/or penalties. Investigate their typical services, leverage the cloud and service providers for the commodity and take advantage of the economies of scale they offer.

Risk of a secure service
Security as an obstacle in going to the cloud or leveraging an as-a-service provider is, quite frankly, IT noise. As described in these articles and blogs, this is the service providers business and they know it is their number one objection. In many cases, they may offer a far more secure environment than most IT organizations and thus the rise of IT insecurity and noise. However, again, it is an area that must be investigated as it relates to the mature management practices of a service provider.

Cost of support
Organizations are expressing frustration with their IT organizations as a perceived obstacle to agility and innovation when they go to the cloud directly. As Richard’s blog points out, this costs your IT organization more in the long run to support, the service will go down, the business will call support for help, the provider most likely may not be reliable and in the worst case, data and security can be breached.

Management generally lags new technology and this cycle to go to the service providers directly for a defined service and defined cost is more appealing to the business. Management lags both with IT internally and with the service providers compounding the risk of an outage or security breach.

Providing the ability to monitor, manage and measure technology services both internally as well as the performance and availability of the service provider insuring quality service delivery will be key. Service enabling your infrastructure could not be easier today and would provide the control with agility your organization is screaming for from your IT organization. Management does not have to be an afterthought and the right platform can future-proof your services with technology adoption agility, it merely takes some proactive planning.

Check out these articles and then answer:  Are you following or leading your organizations cloud rollout – it is happening and coming . . . Are you Stealth or Leading? What are your challenges and concerns?

IT in 2011: Four Trends that Will Change Priorities – CIO

Tags: Availability, Business Alignment, Business Service Management, CIO, Cloud, Performance, Trends


What does the post-recession IT world look like? More media will drive the need for more bandwidth, and a demand for Windows 7 upgrades and corporate use of personal smartphones will shape new priorities for IT.  (read more…)

The Hub Commentary ___

Think like a start-up sums up what I was thinking as I read this article.  Good long and short side views in the IT news these days.  This is a great thing, there is activity again and feels like budgets are loosening for the right spirit.

Here’s what I mean by short and long sided.  Cost savings by reducing infrastructure – To the Cloud!  Hidden costs to monitor, manage, support, secure and protect.  Rarely is it cheaper to outsource unless you are a hideously inefficient organization.  However, right source is the right approach.  Another example are all the new technologies mentioned in the article.  I’m sure there is an expectation for performance, availability, information accessibility and many platforms and by the way we are starting with mobile now.  Again, that pesky back-end monitoring, managing, supporting,  securing, protecting and measuring.

The consumer market drives business requirements and thus IT.  The introduction of every new technology to the consumer market should immediately be thought of as entering the enterprise and thus evaluated for it’s application and potential value-add or not.  Business is still ahead and IT is still out of synch reacting.

2011 is going to be a tipping point of a year for alignment of IT to become a service enabling organization with agility.  The IT manager that begins thinking like a start-up to meet the requirements, embracing new technologies and building management in from the get go will be the winner in the long run.

Is your IT an Operating Commodity   or   Contributing Necessity?

Michele