ensuring effective service management in the application economy

Ensuring effective Service Managementin the Application Economy

Jason Pope, Chief Technical Officer ANZ

May 13th 2015

https://youtu.be/jFN0him_a7I

https://youtu.be/jFN0him_a7I

2 © 2014 CA. ALL RIGHTS RESERVED.

What is

Service Management

today?


ITIL 2011

ITIL is Evolving With The Business

• ITIL Version 1

– Stability and control of IT infrastructure

– IT Infrastructure Management processes

IT

ITIL Version 3BusinessPartner

• ITIL Version 3

Business-IT service integration and value generation

Service Management for business and technology

• ITIL 2011

Increase productivity

Optimize costs

Improve customer experience.

Bu

sin

ess

Val

ue

Maturity

ITIL Version 2Service Provider

• ITIL Version 2

Business-IT alignment

Quality and efficiency of IT processes ITIL Version 1

Technology Provider

ITIL 2011


Process Maps


Consider this…

We don’t meet expectations

support center strategic priorities are aligned

of support organizations feel pressure to show value to business

and…29%

Support Alignment with Business

86%

Demonstrate Value to Business

Keeping up is challenging

expect IT budget to decrease or stay the same

of support centers expect increase in volume

and…56%

Maintain Operational Levels

66%

Ticket Volumes

“How IT’s Perceived by Business,” Information Week Reports, October 2012.“Show Me the Value: Support’s Mandate”, HDI, Copyright © 2013 UBM LLC.“2012 Practices and Salary Report,” HDI, Copyright © 2012 UBM LLC.


Creates demands across our business

Leaders Support Teams Employees

I want to deliver value without over-investing.

I want to be more productive and respond to customers “better.”

I want to get what I need and get back to work.


Chaotic Proactive ValueReactive Service

Difficult to adapt to changing requirementsTrue SaaS

Custom, home grown

solutions

Packaged, On-Premise ITSM

Cloud-Based Delivery

Operational Process

Engineering

Service Delivery Process

Engineering

Service and Account

Management IT as a BusinessTool Leverage


ExtendUpgradeAdminister

Why the industry is currently inflexible and people change solutions 3-4 years!

AdoptionImplementation

Months

Configuration

Tenant

Customizations

Reporting

Basic

BetterBest

Time to Value

Specialized Resources

Cost of Ownership

TODAY

WeeksARS, Java, Custom Business as Usual

Database

Modular, Complex$


It isn’t just the experience - Technical Debt

Email

CostOld technology • drives up cost • pushes users to more expensive channels• hurts user experience

Web RequestSelf ServiceCollaboration PhoneWalk-UpChat


It isn’t just the experienceStuck technology costs the company

10

EmailWebRequest

SelfService

Collaboration PhoneWalk-UpChat

No longer truly

separate

Cost


Chaotic Proactive ValueReactive Service

So what do we do to get escape velocity?True SaaS

Custom, home grown

solutions

Packaged, On-Premise ITSM

Cloud-Based Delivery

Operational Process

Engineering

Service Delivery Process

Engineering

Service and Account

Management IT as a BusinessTool Leverage

Escape velocity!


Traditional approaches are not effectiveSaaS ITSM solutions must deliver on the promise of…

Quality, Time and Productivity at a reasonable cost

Value

Rapid Time to Value

Lower Cost of Ownership

Less Resources

37%

Updating Systems

“Strategies for Project Recovery,” Project Management Solutions, Inc. © 2011.

Projects at risk


Delivering on the promise of SaaS

User Delight

Flexible & Configurable

Automatically upgraded

Faster Value

Lower Cost of Ownership

Fewer Resources Required


ExtendUpgradeAdminister

The new service management must focus on the service delivered and the value to the business

AdoptionImplementation

Months

Configuration

Weeks Days

Business Users < 2 FTE

Tenant

Customizations

Reporting

Automatic

Basic

BetterBest

Inclusive

Time to Value

Specialized Resources

Cost of Ownership

TODAY

CA

WeeksARS, Java, Custom Business as Usual

Database

Modular, Complex$


Time for new rules for Service Management and

CA is rewriting them!

LeadersValue for their

investment—quickly in weeks not

months.

Support TeamsAutomate to reduce

redundancy and drive productivity.

EmployeesModern technology

for the modern worker delivering

real business value … fast.


Fast

Flexible

Powerful

Personal

The new rules of Service Management

“CA Cloud Service Management provides value to my organization while giving analysts and end users the online experience they are looking for.”

- Warren McCall, CEO, SCM Solutions


THIS IS THEAGE OF THE

APPLICATION ECONOMY

AND IT’S ALL ABOUT THE

USERS...

NEW APPS CAN QUICKLY

MAKE OR BREAK YOUR BUSINESS


$153BPublic cloud services market expected to grow 17.8% in 2014 to $153 billion1

50%By 2018, more than 50% of B2B

collaboration will take place through Web APIs2

268BBy 2017, mobile apps will be downloaded

more than 268 billion times3

1 Gartner Forecast: Public Cloud Services, Worldwide, 2012-2018, 3Q14 Update, Ed Anderson, et al, 29 September 20142 Gartner Hype Cycle for Application Development, 2014, Thomas E. Murphy, et al, 29 July 20143 Gartner Press Release, “Gartner Says by 2017, Mobile Users Will Provide Personalized Data Streams to More Than 100 Apps and Services Every Day” January 22, 2014 http://www.gartner.com/newsroom/id/2654115

- Marc Andreeson

welcome to the

Application Economy

Wall Street Journal, Why Software is Eating the World, August 2011

“Software is eating the world”

http://online.wsj.com/articles/SB10001424053111903480904576512250915629460


http://youtu.be/jottDMuLesU

http://youtu.be/jottDMuLesU


Applications Are Changing the World of Business

SO WHAT’S THE PROBLEM?


Expectations are Changing

UNPRECEDENTED SPEED EXCEPTIONAL CUSTOMER EXPERIENCE

2014 Vanson Bourne study commissioned by CA Source: Reaching the Top of the Web Performance Mountain

25%of users will abandon a web application after just three seconds of delay94%

of executives face increased pressure to release appsmore quickly

http://aberdeen.com/Aberdeen-Library/8491/AI-web-performance-management.aspx


Customers are more likely to experience your brand and interact with your business

through a software application than a person


Sources: “The geeks were right: How to thrive in the Application Economy,” CA Technologies commissioned research by Nine Rewards of 100 Australian IT Executive in Enterprise organisations, September 2014

2 Big Drivers for new Applications

#1

Customer Service

75% of responders

#2

Mobility

68% of responders


#1 – Customer Service

https://youtu.be/X40j57v5g6I

https://youtu.be/X40j57v5g6I


The best apps further relationships,

build trustand loyalty …

‘customer service’


3 seconds to workor 33% of customers

will not useyour app


And just the tip of the iceberg of the Internet of Things


http://youtu.be/RAdUqctYGOM

http://youtu.be/RAdUqctYGOM


business functions

• Focused on what matters to the company• Starts with business value, then links to customer benefits• Company defines relationships and value• Technology dictates level of customer-centricity

customer

product

Traditional [inside-out] Approach:

• Focused on what matters to customers • Starts with customer value then links to business benefits • Customer-defined relationships and value • Customer-centric culture drives technology

customer

product

Customer-centric [outside-in] Approach

business functions

Meeting today’s expectations requires a new approach


Software IS the business


Service Management’s role and relevance in today’s digital climate


Continuous Change

Knowledge is fluid

Self-service

Downtime

Google


Empower the consumer context & location

Empower the analyst to deliver value

Collaboration, experts, peers, etc

Proactive Service Management, Automated

Rapid change

Supportive Frameworks and drive value


Are you using frameworks as a standard?

Why are you using what you are using?

Are you focused on the process and not the business outcome?

Are you adopting continuous delivery?

Shadow IT

DevOps is changing the way we work


Application Economy Leaders roll out apps that are …

DELIVERED

RAPIDLY RESILIENTHIGH-

QUALITYAGILE


Addressing Conflict and Cultural Hang ups

RESILIENTAGILE

Agile, Lean ITIL, Process, SLA’s

Bring features/products to market faster

Public cloud, Open Source, Infrastructure-as-code

Ensure availability; MTBF

Support Legacy and Proprietary Apps/Infrastructure

Development Operations


DevOps – People and Process

Shared responsibilities, metrics and goals – business-driven

Capture and convert tribal knowledge; constant collaboration and feedback

Learn from failure; trust in each other, technology and process

Development Operations

INNOVATION STABILITY

STREAMING RELEASES

EASY SECURITY

AGILE PLANNING

FEATURE SIMPLICITY


Agile development “the norm”

Potentially shippable product

increment

Product backlog client prioritizes

Backlogitems

1 - 4 weeks

24hours

Sprintbacklog


Collaborative Service Delivery

PR

OJE

CT

TIM

ELIN

E

deliverydeadline

OperationalInput/Awareness

Stable & inproduction

Requirements Scrum/Sprint System Test Deployment

Architecture Unit Test Acceptance


Collaborative Service Delivery

PR

OJE

CT

TIM

ELIN

E

deliverydeadline





Ongoing OperationalInput/Awareness


deliverydeadline




Improved business & IT agility

Better user experience

Value of integrated DevOps & ITSM

Better compliance, fewer errors

Cloud agility and efficiency

Efficient, continuous delivery

Faster response to stakeholders


Good customer service is not an option

Measuring the ‘end-user experience’ is critical

Services are shifting to “the cloud”

App-lification is on the way!

‘Agile’ development & operations critical

Managing “apps” mandates a change in approach

Transformational change is happening!


Collaborative Service Delivery with Service ManagementP

RO

JEC

T TI

MEL

INE

deliverydeadline





Ongoing OperationalInput/Awareness


deliverydeadline




For More Information

To learn more about Management Cloud,

please visit:

http://cainc.to/flFkTf

Insert appropriate screenshot and text overlay from following “More Info Graphics” slide here;

ensure it links to correct pageManagement Cloud

http://cainc.to/flFkTf

http://bit.ly/1wEnPhz



ensuring effective service management in the application economy

Technology

business itil version

technology itil

businesspartner itil

processes itil version

service provider itil

custom business

account management

process maps5