it business management @ bmc€¦ · oracle procurement. vendor & vendor spend $$ oracle...
TRANSCRIPT
© Copyright 10/10/2010 BMC Software, Inc 2
Information Services & TechnologyApril 2010
Process OwnersBusiness Intelligence Analytics
Service Managers
Service Managers
Discipline Advocates
BSM Engineering
Mark Settle, CIOKaren Garcia, Chief of Staff
Account ExecutivesCarrie Alston, MSM
Mark Settle (Acting), ESM
Service Management Office
John Richey
Enterprise ArchitectureBret Settle
Business ContinuityGreg Holdburg
Program ManagementJason Lu
IT Vendor ManagementTed Pasternak
IT FinanceTitus Eapen
IT People ManagementMike Anderson
Infrastructure & Operations
Mahendra Durai
Business SystemsTom Ennis
Infrastructure & Operations
(Pune)Sandeep Kulkarni
Business Systems(Pune)
Anish Patankar
© Copyright 10/10/2010 BMC Software, Inc 3
IT Business & Program Management
Program/Project Management Resource ManagementRelease Management Asset & Supplier Management
IT SOX Governance & ComplianceIT Merger & Acquisition StrategyFinancial ManagementService Costing
© Copyright 10/10/2010 BMC Software, Inc 4
BMC IT Business Management before ITBM
ORACLE TIME & LABOR
DOCUMENTUMCONTRACTS 45 RESOURCE
SPREADSHEETS!!
ORACLE PROCURMENTVendor & Spend
ITSM Change/ Release
Maintenance Projects
ATRIUM CMDBPhysical/Logical assetsHYPERION
PLANNING& BUDGETING
ORACLE PROJECT ACCOUNTING
ORACLE FIXED ASSETS & DEPRECIATION
ORACLE GENERALLEDGER
ORACLE HR
SHAREPOINT 2007Project Collaboration &
information
PROJECT PORTFOLIO SPREADSHEET
MS PROJECT & SERVERIn progress projects
© Copyright 10/10/2010 BMC Software, Inc 5
BMC IT Business Management after ITBM
$$ORACLE PROCUREMENT
Vendor & Vendor Spend
$$ORACLE PROJECT
ACCOUNTING
$$ORACLE FIXED ASSETS &
DEPRECIATION
HYPERION PLANNING& BUDGETING
$$ORACLE GENERAL
LEDGER
ORACLE TIME & LABORORACLE HR
DOCUMENTUMCONTRACTS
ATRIUM CMDBPhysical/Logical assets
ITSM CHANGE/RELEASEMaintenance Projects
ITBM RESOURCE PLANNING
ITBM PROJECTPORTFOLIO
MANAGEMENT
SHAREPOINT 2007Project Collaboration &
information
MS PROJECT In progress projects
ITBM
© Copyright 10/10/2010 BMC Software, Inc 7
IT Challenges
Perceived by the business to be a cost “black hole”
Difficulty showing the value of IT to the business
Not viewed as a strategic partner by the business
© Copyright 10/10/2010 BMC Software, Inc 8
Goals and Objectives
Our goals- Cost transparency to the business- Improved demand management- Create value along key business dimensions- More holistic view of IT performance
So what?- Focus on where money is being spent- Focus on why money is being spent- Ability to communicate in business terms the value IT provides- Measure performance with a business focus
© Copyright 10/10/2010 BMC Software, Inc 9
Where does everything come together?
Service Catalog
Business Integration
Application Alignment
Infrastructure Alignment
Process Alignment
Resource Alignment
Investment Alignment
© Copyright 10/10/2010 BMC Software, Inc 10
Service Catalog
Service Catalog
Business Integration
Application Alignment
Infrastructure Alignment
Process Alignment
Resource Alignment
Investment Alignment
Service Catalog
© Copyright 10/10/2010 BMC Software, Inc 11
Service ModelService Catalog
Business Processes & Business Services
Technical Services
Servers, Network Devices, Storage, Etc.
LogicalLayer
PhysicalLayer
Bridg
e
© Copyright 10/10/2010 BMC Software, Inc 12
What is a Service Catalog?
SLM Requirements
Service Targets only. Part of a larger business Service Level Agreement
Business Services – SLAs– Signed agreements between IT the Business Area for agreed upon terms of service.
Shared Services – OLAs– Signed agreements Between the Business Service Managers and Shared Services Managers for agreed upon terms of service. Are used to support SLAs
Service Targets only. Part of a larger Service Level Agreement or Operational Level Agreement. Aligned to ensuring SLA success
Requestable Services
Business Services Shared Services
Service Catalog
Technical Services
Process Specific Automation
•Sales Automation•Marketing Automation
Multi-Process Enablers
•Network & Telephony•Business Intelligence
Applications, SaaS Providers, 3rd Party Providers•Oracle Financials•Sales Force.com
•Re-image PC•Onboard New Hire•Reset Password
•New Laptop
© Copyright 10/10/2010 BMC Software, Inc 13
Business Integration
Service Catalog
Business Integration
Application Alignment
Infrastructure Alignment
Process Alignment
Resource Alignment
Investment Alignment
BusinessIntegration
© Copyright 10/10/2010 BMC Software, Inc 14
ERP Support Services
CorporateStrategy
CRMPLM
Manage Product Portfolio
Manage Product Lifecycle
Manage Ideas & Concepts
Manage Market & Product
Research
Manage Technology Alliances
Manage Channels
Manage Professional Services
Manage Contracts
Process Quotes
Manage Receivables
Process Orders
Manage Billing
Procure to Pay
Source to Purchase
Fulfill Orders
Manage Licenses & Entitlements
Manage Product & Pricing Data
Manage Projects
Set Goals
Align Organization
Gather Corporate
Intelligence
Plan Strategy
Manage Plan
Manage Facilities
Information Technology
Management
Legal
Audit &Compliance
Financial Management
General Financial Accounting
Manage Treasury Operations
Management Accounting
Develop and Test Software
Workforce Planning & Talent
Review
Selecting & Acquiring Talent
On-Boarding & Assimilation
Managing & Rewarding
Performance
Developing and Retaining Talent
Manage Information
Market Products & Services
Marketing Automation
Sales AutomationManage
Sales Force
Partner Management
Services
Order Management
Procurement Finance HRPortfolio Mgmt.
Product Dev.
CONCEPT TO PRODUCT MARKET TO CASH FORECAST
TO DELIVERYSTRATEGY TO PLAN
ACCOUNT TO REPORT
HIRE TO RETIRE
SUPPORT TO CONTROL
How Did We Decide Our Business Services Business Integration
Manage Channel Sales
Manage Education Services
Manage Customer Care
Introduce New Products
Plan & Execute Campaigns
Manage Customer Accounts
Manage Opportunities
© Copyright 10/10/2010 BMC Software, Inc 15
Shared Services
ERP Support Services
CorporateStrategy
CRMPLM
CONCEPT TO PRODUCT MARKET TO CASH FORECAST
TO DELIVERYSTRATEGY TO PLAN
ACCOUNT TO REPORT
HIRE TO RETIRE
SUPPORT TO CONTROL
Final List of Business Services
ESM Product Development Automation
MSM Product Development Automation
Marketing Automation
Sales Automation
Customer Care Automation
Education Automation
Professional Services
Automation
Order Management Automation
Finance Automation
HR Automation
DataCenter
Operations
Network & Telephony
End User Services
Collaboration Automation
Business Intelligence
Master Data Management
IT Management
Data Administration Integration
Business Integration
© Copyright 10/10/2010 BMC Software, Inc 16
Application Alignment
Service Catalog
Business Integration
Application Alignment
Infrastructure Alignment
Process Alignment
Resource Alignment
Investment Alignment
Application Alignment
© Copyright 10/10/2010 BMC Software, Inc 17
Shared Services
ERP Support Services
CorporateStrategy
CRMPLM
CONCEPT TO PRODUCT MARKET TO CASH FORECAST
TO DELIVERYSTRATEGY TO PLAN
ACCOUNT TO REPORT
HIRE TO RETIRE
SUPPORT TO CONTROL
Map Technical Services To Business Services
ESM Product Development Automation
MSM Product Development Automation
Marketing Automation
Sales Automation
Customer Care Automation
Education Automation
Professional Services
Automation
Order Management Automation
Finance Automation HR Automation
DataCenter
Operations
Network & Telephony
End User Services
Collaboration Automation
Business Intelligence
Master Data Management
IT Management
Data Administration Integration
Technical Service 1Technical Service 2Technical Service 3Technical Service 4Technical Service 5Technical Service 6
Technical Service 7 Technical Service 8Technical Service 9Technical Service 10Technical Service 11Technical Service 12
Technical Service 13Technical Service 14Technical Service 15Technical Service 16Technical Service 17Technical Service 18Technical Service 19Technical Service 20Technical Service 21Technical Service 22Technical Service 23Technical Service 24Technical Service 25Technical Service 26
Technical Service 27Technical Service 28Technical Service 29Technical Service 30Technical Service 31Technical Service 32
ApplicationIntegration
© Copyright 10/10/2010 BMC Software, Inc 18
Infrastructure Alignment
Service Catalog
Business Integration
Application Alignment
Infrastructure Alignment
Process Alignment
Resource Alignment
Investment Alignment
Infrastructure Alignment
© Copyright 10/10/2010 BMC Software, Inc 19
Mapping Of How Infrastructure Is DistributedInfrastructure Alignment
© Copyright 10/10/2010 BMC Software, Inc 20
Process Alignment
Service Catalog
Business Integration
Application Alignment
Infrastructure Alignment
Process Alignment
Resource Alignment
Investment Alignment
Process Alignment
© Copyright 10/10/2010 BMC Software, Inc 22
Questions Addressed By Process AreaProcess Alignment
Enterprise Architecture
Infrastructure & Operations
Service Management Office
© Copyright 10/10/2010 BMC Software, Inc 23
Resource Costing Alignment
Service Catalog
Business Integration
Application Alignment
Infrastructure Alignment
Process Alignment
Resource Alignment
Investment Alignment
Resource Alignment
© Copyright 10/10/2010 BMC Software, Inc 24
What Resources Do We Have?
Hardware Labor
Resource Alignment
Hardware Software People
© Copyright 10/10/2010 BMC Software, Inc 25
Dimensions of IT Financials
Public DimensionCosts are presented at an aggregate Operating Expense level on Annual basis
Dimension 1Distributes IT expenses between natural accounts or types of expenditures. Management sees Budgeted and Actual expenses along with the variance
Dimension 2Assigns IT expenditures to the Cost Centers or owners of the expenses
(Simulated Data)
Resource Alignment
© Copyright 10/10/2010 BMC Software, Inc 26
Public DimensionCosts are presented at an aggregate Operating Expense level on Annual basis
Dimension 1Distributes IT expenses between natural accounts or types of expenditures. Management sees Budgeted and Actual expenses along with the variance
Dimension 2Assigns IT expenditures to the Cost Centers or owners of the expenses
Dimensions of IT Financials
Dimension 3Redistributes the expenses into all services provided by IT as defined in the Service Catalog
Dimension 4Allocates the IT Shared Service expenses into IT Business Services
Dimension 5ITBM Service Costing assigns IT Service Costs to Business Units
(Simulated Data)
Resource Alignment
© Copyright 10/10/2010 BMC Software, Inc 27
Shared Services
ERP Support Services
CorporateStrategy
CRMPLM
CONCEPT TO PRODUCT MARKET TO CASH FORECAST
TO DELIVERYSTRATEGY TO PLAN
ACCOUNT TO REPORT
HIRE TO RETIRE
SUPPORT TO CONTROL
Map Technical Services To Business Services
ESM Product Development Automation
MSM Product Development Automation
Marketing Automation
Sales Automation
Customer Care Automation
Education Automation
Professional Services
Automation
Order Management Automation
Finance Automation HR Automation
DataCenter
Operations
Network & Telephony
End User Services
Collaboration Automation
Business Intelligence
Master Data Management
IT Management
Data Administration Integration
Technical Service 1Technical Service 2Technical Service 3Technical Service 4Technical Service 5Technical Service 6
Technical Service 7 Technical Service 8Technical Service 9Technical Service 10Technical Service 11Technical Service 12
Technical Service 13Technical Service 14Technical Service 15Technical Service 16Technical Service 17Technical Service 18Technical Service 19Technical Service 20Technical Service 21Technical Service 22Technical Service 23Technical Service 24Technical Service 25Technical Service 26
Technical Service 27Technical Service 28Technical Service 29Technical Service 30Technical Service 31Technical Service 32
Resource Alignment
© Copyright 10/10/2010 BMC Software, Inc 28
Expenses to Services – Divide and Conquer
Divide Expenses into Assets, People, Vendor Service, Projects and OtherCreate a list of logical groups within each of the above categories in rowsList Services in columns and meet with IT Personnel to determine appropriate service to allocate each item to and to what percent
Assets People Vendor Services Projects Other
Service 1 Service 2 Service 3 Service 4 Service 5 Service 6 Service 7 Service …
Asset 1 100%Asset 2 50% 25% 25%Asset 3 100%…Person 1 50% 50%Person 2 40% 30% 30%Person 3 25% 75%…Project 1 100%
Resource Alignment
© Copyright 10/10/2010 BMC Software, Inc 29
Service Costing Dimension
Labor Cap Other Expense
R&D Support 3,990.4 16,909.7 (23.4) 153.5 21,030.2 15,569.1 17,935.6
Engineering - ESM 2,635.9 4,108.6 (21.8) 51.8 6,774.6 15,569.1 -
Engineering - MSM 1,354.5 12,801.1 (1.7) 101.7 14,255.6 - 17,935.6
Front Office 6,940.2 6,232.2 (3,184.9) 419.7 10,407.1 18,877.5 5,134.1
Customer Care 2,373.2 3,569.3 (1,322.7) 320.7 4,940.6 5,706.7 2,426.1
Professional Services 2,362.5 1,140.5 (814.1) 59.4 2,748.3 4,660.2 -
Education Automation 396.5 5.0 (286.1) - 115.4 306.2 187.7
Sales Automation 1,596.3 1,484.8 (759.2) 38.5 2,360.5 7,555.1 2,122.2
Marketing Automation 211.6 32.6 (2.9) 1.0 242.3 649.4 398.0
Back Office 3,923.1 7,342.1 (790.8) 99.5 10,573.9 12,499.1 6,036.3
Finance 2,239.9 5,832.3 (252.4) 69.9 7,889.7 7,864.8 4,533.0
Human Resources 465.4 752.2 (82.1) 34.5 1,170.0 1,426.7 842.4
Order Management 1,217.9 757.6 (456.3) (4.8) 1,514.3 3,207.6 660.9
Shared Services 10,276.5 2,525.3 (264.6) 26.0 12,563.1
Business Intell igence 559.2 859.1 8.3 - 1,426.6
Collaboration & Content Mgmt 1,218.8 643.9 (264.4) 16.9 1,615.2
Data Administration 716.7 188.8 - - 905.5
Integration 386.3 385.7 - - 771.9
IT Management 7,395.5 447.8 (8.6) 9.1 7,843.8
Infrastructure Services 8,149.5 16,869.3 (1,327.3) 2,658.7 26,350.1 4,342.1 530.6
Data Center Operations 5,720.9 7,468.5 (1,293.0) 2,658.7 14,555.1
Network & Telephony 1,054.7 5,017.1 (0.2) - 6,071.6
End User Support 1,373.9 4,383.7 (34.1) - 5,723.5 4,342.1 530.6
Total 33,279.7 49,878.5 (5,591.1) 3,357.4 80,924.4 51,287.9 29,636.5
Internal LaborNon-FTE Related TOTAL COST ESM MSM
Project-Related Expenses
Resource Alignment
(Simulated Data)
© Copyright 10/10/2010 BMC Software, Inc 30
Q3 FY10 Data Comparison
19%28%
7%
13%7%
13%25%
15%
42%31%
0%10%20%30%40%50%60%70%80%90%
100%
Cost Center Service Costing
R&D Support
Front Office
Back Office
Shared Services
Infrastructure Services
Service Costing reduces Allocated Services from 67% of Expense to 46%
© Copyright 10/10/2010 BMC Software, Inc 31
ITBM Service CostingService Cost Summary
(Simulated Data)
© Copyright 10/10/2010 BMC Software, Inc 32
Investment Alignment
Service Catalog
Business Integration
Application Alignment
Infrastructure Alignment
Process Alignment
Resource Alignment
Investment Alignment
Investment Alignment
© Copyright 10/10/2010 BMC Software, Inc 33
ERP Support Services
CorporateStrategy
CRMPLM
Manage Product Portfolio
Manage Product Lifecycle
Manage Ideas & Concepts
Manage Market & Product
Research
Manage Technology Alliances
Manage Channels
Manage Professional Services
Manage Contracts
Manage Channel Sales
Process Quotes
Manage Receivables
Process Orders
Manage Billing
Procure to Pay
Source to Purchase
Manage Education Services
Fulfill Orders
Manage Licenses & Entitlements
Manage Product & Pricing Data
Manage Projects
Set Goals
Align Organization
Gather Corporate
Intelligence
Plan Strategy
Manage Plan
Manage Facilities
Information Technology
Management
Legal
Audit &Compliance
Financial Management
General Financial Accounting
Manage Treasury Operations
Management Accounting
Manage Customer Care
Develop and Test Software
Workforce Planning & Talent
Review
Selecting & Acquiring Talent
On-Boarding & Assimilation
Managing & Rewarding
Performance
Developing and Retaining Talent
Manage Information
Introduce New Products
Plan & Execute Campaigns
Market Products & Services
Marketing Automation
Sales AutomationManage
Sales ForceManage Customer
AccountsManage
Opportunities
Partner Management Customer Care
Services
Order Management
Procurement Finance HRPortfolio Mgmt.
Product Dev.
CONCEPT TO PRODUCT MARKET TO CASH FORECAST
TO DELIVERYSTRATEGY TO PLAN
ACCOUNT TO REPORT
HIRE TO RETIRE
SUPPORT TO CONTROL
Current Capability Coverage
Technical Service 1Technical Service 2
Technical Service 3Technical Service 4
Investment Alignment
Shared Service 1
© Copyright 10/10/2010 BMC Software, Inc 34
ERP
Economic Payoff Potential$20 M to $25 M$15 M to $20 M$10 M to $15 M$5 M to $10 M$0 M to $5 M
Support Services
CorporateStrategy
CRMPLM
Manage Product Portfolio
Manage Product Lifecycle
Manage Ideas & Concepts
Manage Market & Product
Research
Manage Technology Alliances
Manage Channels
Manage Professional Services
Manage Contracts
Manage Channel Sales
Process Quotes
Manage Receivables
Process Orders
Manage Billing
Procure to Pay
Source to Purchase
Manage Education Services
Fulfill Orders
Manage Licenses & Entitlements
Manage Product & Pricing Data
Manage Projects
Set Goals
Align Organization
Gather Corporate
Intelligence
Plan Strategy
Manage Plan
Manage Facilities
Information Technology
Management
Legal
Audit &Compliance
Financial Management
General Financial Accounting
Manage Treasury Operations
Management Accounting
Manage Customer Care
Develop and Test Software
Workforce Planning & Talent
Review
Selecting & Acquiring Talent
On-Boarding & Assimilation
Managing & Rewarding
Performance
Developing and Retaining Talent
Manage Information
Introduce New Products
Plan & Execute Campaigns
Market Products & Services
Marketing Automation
Sales AutomationManage
Sales ForceManage Customer
AccountsManage
Opportunities
Partner Management Customer Care
Services
Order Management
Procurement Finance HRPortfolio Mgmt.
Product Dev.
CONCEPT TO PRODUCT MARKET TO CASH FORECAST
TO DELIVERYSTRATEGY TO PLAN
ACCOUNT TO REPORT
HIRE TO RETIRE
SUPPORT TO CONTROL
Investment OpportunitiesInvestment Alignment
(Simulated Data)
© Copyright 10/10/2010 BMC Software, Inc 35
Delivered Catalog
Service Catalog
Business Integration
Application Alignment
Infrastructure Alignment
Process Alignment
Resource Alignment
Investment Alignment
© Copyright 10/10/2010 BMC Software, Inc 36
Business Services
Customer Care AutomationSales AutomationProfessional Services AutomationMarketing AutomationEducation Automation Collaboration Automation
Pg 3Pg 4Pg 5Pg 6Pg 7Pg 8
Order Management AutomationFinance AutomationHuman Resources AutomationMSM Product Development AutomationESM Product Development AutomationEnd User Services
Pg 9Pg 10Pg 11Pg 12Pg 13Pg 14
Shared Services
Data Center OperationsNetworking & TelephonyBusiness IntelligenceMaster Data Management
Pg 15Pg 16Pg 17Pg 18
IT ManagementData AdministrationIntegration
Pg 19Pg 20Pg 21
Appendix A
Service Managers Pg 22
Appendix B
Incident Response and Resolve SLAs Pg 23
Appendix C
Service Continuity (Disaster Recovery) Tiers Pg 24
Servi
ce C
atalog
Table of Contents
© Copyright 10/10/2010 BMC Software, Inc 37
Users• Corporate – Order Management (Services)
What Is This Service?Order Services covers most aspects of the Quote to Cash process including but not limited to the following:- Provides the visibility for Executive Management to track the revenue being generated from Orders.- Offers a unique pricing structure for the Sales Reps to work with remotely.- Tools that allows for highly complex orders to be entered efficiently.- Allows BMC to recognize revenue on a timely and accurate basis.- Provides for a Special Bids Automated approval system-Customized Collections module
Cost $1,514,309
•Allocation Basis – Based upon number of users on the system.
•Key Cost Drivers – Oracle maintenance and license fees– Production Support of a customized application
What Is Included?
•AR Cash Management•Billing•Collections•Contract Agreement• Order Management•Financed Receivables•License Key Management•License Product Management• Official Orders
•Pricing•Month/Qtr End Close•Revenue Recognition•Revenue Summary•Sales Commissions•Sales Quotes•Support Contracts•Support Quote •Support Renewals•Revenue applications
Planned Enhancements•Pricing updates•Revenue Accounting Recast and Subscription updates•Support Quote expiration updates
•Licensing updates•Opportunity ID updates•Add Credit Limits in OE+
29%
51%
20%
Cost BreakdownNon FTE Related
Internal Labor
Project Costs
Busin
ess S
ervic
es
What Should You Expect?Incident SLA See Standard Incident Management
Response/Resolve SLA
Service Continuity Tier 1See Appendix B
SLA Performance
Incident Compliance
Critical High
96.4% 97.8%
Availability last 90 days
# of Outages last 90 days
3
Order Management Automation Rebecca Smith713-555-1234
98.6%
(Simulated Data)
© Copyright 10/10/2010 BMC Software, Inc 38
Lessons Learned
Do not do this in a siloFewer Business Services the better Engage with the business early and oftenReally promote the catalog within IT and the businessAlign all work to services