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IT-as-a-Service (ITaaS): Transforming How We Manage IT

By Reg Lo

Reg LoAs enterprises make their way along the journey to IT-as-a-Service, CIOs and technology leaders must consider an overhaul of how they run IT – from technology enablement, to the operating model itself. A phased approach to technology enablement, designed as a maturity model, helps provide structure to the journey.  Breaking down traditional IT silos leads to a more functional, service-focused operating model.

Based on years of customer experience, we have developed a three-phased path to ITaaS, as seen in Figure 1.  In Phase I, when IT was seen as a cost center, virtualization created dramatic CapEx savings, resulting in more efficient IT production.  In Phase II, automation results in faster business production, and implementing management tools improves quality of service and reliability.  And in Phase III, IT becomes a service broker, reducing OpEx and increasing agility.  In this phase, IT uses an “IT-as-a-Service” approach, focusing on the end-to-end services that support the business mission, and leveraging technologies and sourcing options that make providing those services reliable, agile, flexible and cost-effective.

ITaaS  Journey

Figure 1. Enabling Technologies for IT-as-a-Service (ITaaS)

It makes sense, then, that the transformation into an IT-as-a-Service approach requires more than just the enabling technologies.  IT needs a new operating model to be successful – a new way of thinking and organizing people and process.

Today, many IT organizations are process-oriented.  Their key IT Service Management (ITSM) processes are managed, process owners are identified, and their processes are enabled through an integrated ITSM tool.  But a process-oriented approach hasn’t changed how they think about managing the technology silos.

ITaaS Evolution

Figure 2. The Evolution of how we Manage IT

Mature IT organizations realize that focusing on managing “end-to-end services” helps them be more customer focused than managing discrete “technology silos.”  A service-oriented approach enables IT to link the customer outcome to IT services, to applications, and to the infrastructure.  These organizations are defining their services, publishing their service catalog, and establishing service owners.

Many IT leaders also talk about “running IT like a business.”  This brings a higher level of maturity to IT, with the same fiscal discipline required to manage a traditional business.  This entails economic transparency or even an economic transaction where the business pays IT based on service consumption and IT, in return, commits to delivering a certain service level.  In this model, business relationship managers act much like account managers in a commercial IT service provider, i.e. building a strategic relationship with the business.

This transformation from process-oriented, to service-oriented, to running IT like a business, results in a new, IT-as-a-Service (ITaaS) operating model.  Another way of looking at this transformation is Figure 3.  Note that the progression is not necessarily sequential, e.g. an IT organization may work on elements of becoming service-oriented and running IT like a business simultaneously.

ITaas Operating Model

Figure 3. ITaaS Operating Model

Many individuals might recognize elements of service management in the ITaaS IT operating model.  While the model builds on service management best practices, it emphasizes service characteristics that are associated with cloud-based XaaS services (where XaaS includes Infrastructure as a Service [IaaS], Platform-as-a-Service [Paas], and Software-as-a-Service [SaaS]).  XaaS are characterized by the quality of service being actively managed, services being rapidly provisioned (typically through automation), ability to pay for what you use, elastic capacity, and high availability and resiliency.  While service management encourages these characteristics, achieving these characteristics across all IT services is a goal of ITaaS.


Reg Lo is the Director of the Service Management practice for VMware Accelerate Advisory Services

Building Transparency and Trust with Business Relationship Management

By Jason Stevenson

Jason StevensonIn my last post, I touched on the idea that in the business relationship management process, nothing is more important than good communication. IT representatives must be prepared to both listen deeply and communicate transparently to ensure the relationship stays healthy and achieves business outcomes. Communication provides IT countless opportunities to market how the commitment to an ITaaS approach to service provisioning benefits the business and how it drives business-focused IT decision-making. It’s critical to ensure IT representatives are well trained in all forms of communication.

Transparency and trust through verbal communication
Business relationship management uses verbal communication to build transparency and trust. This includes marketing IT services and innovations, enabling continual service improvement, soliciting translating feedback into action, discussing desirable business outcomes, quantifiable business investment, customer/IT commitment, and risk.

Non-verbal communication such as professionalism and demeanor play a significant part in building transparency and trust. Though IT may choose what level of the business to engage, ultimately it is unable to choose its customers.  However, IT can choose who will represent it. Good IT representation is based not only on understanding of IT organization, processes, and services but also alignment and affinity with the customer.

Transparency and trust through tools using written communication
Business relationship management uses written communications to supplement and reinforce verbal communication. Written communications include presenting reports on successes associated with opportunities or issues and compliments or complaints log as well as dashboards for services (cost, priorities, levels, and satisfaction), projects (time, resource and scope constraints and priorities), high-risk changes, and integrated customer and IT calendar.

Transparency and trust through process
In addition to oral and written communication, another key element in securing transparency and trust is the use of a consistent process. The following illustration provides four simple steps to initiate business relationship management.

4 Steps to Initiate BRM

 

These initial steps include identifying points of contact within the business to populate a customer portfolio, then selecting the appropriate service provider representation from IT to correspond to each customer within the portfolio. The ratio does not need to be a one to one; however, adequate thought must be given to the number of customers an IT representative can handle before quality becomes a concern.

The simple act of communicating between customers and IT representatives will foster transparency with insight into what each organization is doing. As more information (such as plans, dashboards, and calendars) is shared, the organization becomes more transparent. Often, the more frequent the communication between the organizations, the more trust is built, taking care not to become an annoyance to the customer. With some transparency and trust in place, real discussions around what IT currently offers the customer can mature into a greater discussion of how IT can support current and future wants and needs within the business. With this understanding, IT representatives working with their customers can begin to prioritize and categorize customer wants and needs with corresponding IT services or projects based on volume, size, value and risk.


Jason Stevenson is a transformation consultant with VMware Accelerate Advisory Services.

Found in Translation: IT as Interpreter

By David Smith

David SmithThere is a plethora of articles written about the need to transition and transform IT from a technology focused organization into a business driven organization; from running the business to innovating the business; from control to empowerment; from reactionary to proactive, and so on. But, how do we make sure transformation actually happens and ensure that it sticks?

Why we fail
To be clear, IT is an enabling function of the business … not vice versa. With the advent of pervasive internet technologies, cloud computing and public SaaS offerings, lines of business’ now have more choices than ever, either putting pressures on their IT department or purchasing these services directly. That means, as IT, we need to be the best choice for the things we want to control. The number one reason that transformative initiatives fail is lack of user acceptance, meaning somewhere along the way IT misses understanding, setting, or managing expectations (or all three).

More modern organizations work together across silos in IT — but they don’t break the barriers into business. The business works horizontally by nature, and it doesn’t think in bits and bytes. Business users think about getting work done. Knowing this, IT’s answer to “I need email,” can’t be, “We’ll give you some servers with Exchange and small inbox quotas.” It should be, “For how many users, in which locations, from where will you access, will you need to leverage other systems as part of your workflow, etc.” IT then translates these into architectural components and technical solutions.

A tool for success
Use cases (a list of steps defining the interaction of the user with the system to achieve a goal) are a powerful tool to help bridge the gap between business expectations and IT delivery. With a use case, you objectify the discussion and allow the business to clearly articulate what they need, which allows IT to clearly articulate the resulting requirements. IT leverages these use cases to also identify common needs and create reusable platform components. Which in turn helps break down custom-built environments (silos), decreases cost by maximizing IT investments across many lines of business and helps standardize integration points across the architecture. There are several tools and frameworks that help guide the creation of these use cases, but it all starts with a conversation.

Use Case ElementsTake, for example, a company that had embarked on a transformational IT initiative. The pressure from the business to reduce time to provision devices and applications was so great that they decided to begin with end user computing. They needed to get desktops to devices and applications to users, but they had segmented users into 35 or 40 different profiles and device types. Then they swung the pendulum over to other side to offering only three device-based options for desktops, from fully managed to BYOD. Their challenges remained. The missing piece was how to take these three desktops that was an IT centric view to a use-case driven view. What they really needed was alignment with business on five or six use-case driven segments including roles, responsibilities and workflows.

Defining this happy medium allowed the company to tie the user to the HR system. So now when a user joins the organization, the provisioning process is automated. If an employee changes jobs, the process originates in HR as well, with all the IT steps that were formerly manual becoming fully automated. In this case there was a very clear definition of where to put automation. This set the ground for a continual improvement process between IT and business. Instead of meeting once a year, they now meet monthly and with help of the use cases, they align on where to prioritize IT efforts and investments.

What next?
Every organization must find a balance in how deeply and in how much detail they want to take use cases. Try not to go overboard and paralyze your process through analysis. Start with a business function in a line of business to understand your organization’s appetite for change. Any amount of progress toward meeting the needs of the business will facilitate real transformation.


David Smith is a business solutions architect with VMware Accelerate Advisory Services with 17+ years of experience consulting, advising and directing business and IT transformation initiatives for major global organizations. David applies his contemporary business and technical expertise to collaboratively develop, design and implement actionable roadmaps that help customers realize their SDDC and ITaaS strategies. 

Exclusive Report: CIOs on Innovation and the Software Defined Enterprise

By Laurent Finck, VMware Advisory Services Lead, South EMEA

Laurent FinckAs the software defined enterprise becomes an inevitability, rather than a possibility, how can CIOs move their departments from the Industrial Age of IT to the Digital Age of IT?

Report

Download the full report

In preparation for the upcoming VMware EMEA CIO Summit in October 2014, we spoke to eight CIOs about their top priorities in managing the changing expectations for their role in light of business digitalization. Business digitalization is both an opportunity and a risk for companies – successful digitalization could increase revenue, while failed digitalization could mean a loss of momentum and market share. As a result, CEOs are turning their attention toward IT departments, and the work of the CIO.

Given this increased level of exposure, we asked these CIOs for their perspectives on the highest priority changes that need to occur within IT departments to keep up with the delivery and operational changes required to support business digitalization. They offered their insights on the importance of data management, refreshing IT governance, and adjusting their strategy to pivot toward service brokerage.

The future of IT requires more agility, scalability and service quality. To meet these demands, the CIOs delved into how the software defined enterprise frees up internal resources that once supported infrastructure to refocus on cloud, application and enterprise architecture. Shifts in culture and operations will be required to stay aligned with the needs of the business and the priorities of other departments that will require a high level of responsiveness and flexibility.

Download the full report for more CIO insights into the changing state of IT and the challenges and opportunities ahead.


Laurent Finck leads the VMware Advisory Services team in Southern Europe, a team of strategy consultants who help CIOs and IT organizations understand how VMware solutions can help them better serve their business needs. Prior to VMware, Laurent has been an IT strategy consultant at Accenture and Gartner, where he focused on IT organizations and IT transformation efforts, and then leveraged this experience to design and deploy go-to-market strategies for large IT vendors, on an international basis.

Take Good Care of My Business (Using ITaaS BRM Best Practices)

By Jason Stevenson

Jason Stevenson“We be takin’ care of business–every day–every way!”1 At least that’s what we choose to believe in IT. Unfortunately, the reality is often far from it. The business would likely sing a much different tune — something closer to “It’s the work that we avoid. We’re all self-employed. We love to work at nothing all day.” 1 It sounds harsh, but more often than not, IT does avoid the real work of business, acting as an entity in and of itself, accountable to no one, focusing on putting out fires.

Now more than ever, the business has real choices in information technology. An internal IT department is no longer the only show in town and must provide measurable business value to compete with external solutions, particularly innovative solutions such as Software (SaaS), Infrastructure (IaaS), and Platform as a Service (PaaS).  IT must meet the business needs without clinging to old ways, regardless of whether that means developing solutions in-house, brokering services from appropriate providers or a combination.   Regardless of the solution, IT’s focus must be squarely on making business success easy, so positioning the IT organization as using an Information Technology as a Service (ITaaS) approach is paramount.  The foundation of this business-centric, service-based approach is business relationship management (BRM).

Who is the customer?

IT provides services to both customers and users. A customer is someone who pays for the service, while a user receives the service. In many instances, the customer and user are not the same. Service desk functions and processes like request fulfillment and incident management focus on the user. In contrast, business relationship management focuses on the customer. Often there are multiple customers in an organization including officers, executives, directors and their delegates.

What is business relationship management? 

The purpose of business relationship management is to establish and maintain a strategic connection between the service customer (business leadership) and the service provider (IT representative). Process activities include:

  • Communicating: Sharing ideas and information and coordinating communication channels between the customer (business) and service provider (IT).
  • Understanding: IT comprehending what is important to business; business realizing IT capabilities, value, and implications of changing technology.
  • Matching: Correlating business wants and needs to IT services within the portfolio to set clear expectations.
  • Navigating: Guiding business through IT organization and engagement of the project portfolio.
  • Prioritizing: Ranking IT services and projects and mediating competition for resources.
  • Tracking: Documenting customer opportunities, issues, compliments and complaints and translating desired business outcomes into service packages or solution roadmaps.
  • Escalating: Taking corrective action as needed.
  • Assessing: Continually soliciting customer satisfaction.

When and where do we engage the customer in business relationship management?

Often the means we use to facilitate business relationship management will change, depending on the participants and the length and quality of the relationship. Technically savvy customers may prefer to use a service web portal, while senior executives and officers may prefer the informality of golf or other social activities. A large organization may require a symposium to accommodate many (potentially geographically dispersed) customers. The approach and frequency should align with customers’ positions within the organization, their personalities, and what works culturally and historically within the organization. At a minimum, IT representatives should engage customers in a conference quarterly unless specified otherwise by the customer.

How do we provide business relationship management?

Transparency and trust directly relate to our human nature and are only accomplished through good old-fashioned communication. Both verbal and written communication create opportunities for IT to market how its commitment to an ITaaS approach to service provisioning benefits the business and how it drives business-focused IT decision-making. Stay tuned for an upcoming post with tips for building transparency and trust in your organization.

BRM: The Foundation

In summary, business relationship management is the foundation for ITaaS. Think of business relationship management first as a guide and translator then as a partner for the business. By balancing wants and needs with funding, we gain understanding of the business and translate that understanding into traceable business outcomes. Through integration with service and project portfolio management, IT representatives submit business outcomes in service packages to IT through an ITaaS services web portal after using multiple communication means with the customer. Now, the inner workings of IT are engaged to evaluate business value and risk and subsequently refine priority, which is then confirmed with the customer. Ongoing communication and reporting continually reinforce the relationship between the customer and IT, resulting in greater transparency and trust.

The following diagram illustrates the summary of these concepts.

BRM Governance Model

There you have it, critical success factors for ITaaS BRM. Give it a try! “Chances are you’ll go far if you get in with the right bunch of fellows.” 1


Jason Stevenson is a Transformation Consultant with VMware Accelerate Advisory Services.


© ITIL is a registered trademark of AXELOS Limited.
1 Quote from Bachman-Turner Overdrive’s Takin’ Care Of Business

Is Corporate IT Doomed to Bankruptcy?

By Kipp Bertke, Strategist, VMware Accelerate Services

Kipp_BertkeCorporate IT departments have been the best kept business secret in history. Evolution for IT has been a constant since the beginning, and IT departments have been the masters of their destiny. Who else has a captive customer base, a cost plus business model and a reward for slow and steady? If an IT department were a startup company, and you had invested in it from the start, the market capitalization would have been through the roof…until now.

A look back at history brings us to the defining moment facing today’s IT.

The First Disruptor
Most IT departments started with a mainframe and added a midrange due to the costs and complexity of the mainframe. The first disruptor of IT came on the scene in the early 80’s: the personal computer (PC). At first it was just a fad; it was fun and cool and any average person could do really neat things with it. (Yes, and there were the geeks, too, who did geeky things with it.) But IT departments had nothing to worry about, right? After all, they were in control of the real computers in the company.

But then something amazingly crazy happened. Accounting started using the personal computer for working on simple spreadsheets. They didn’t have to rely on IT and its inflexible systems. Over the next two decades the personal computer quickly spread throughout the business world and IT departments had a new technology to manage, like it or not.

New Layers of Technology
In the midst of the personal computer invading IT, another disruptive technology emerged: the x86 server. It was cheap, flexible and didn’t fall under the control of traditional IT departments. But for all the good it did, the x86 added yet another layer of technology for IT departments to support. This is the start of the ‘silo’-ing of technology and the people and processes that are the ecosystems around it, which largely still exists today.

With the x86 server came additional disruptors: the evolution of client-server and multi-tiered architectures. These, along with the multiple changes in form factors of x86 servers, impacted the ecosystem and significantly increased its complexity. It was the start of the x86 sever sprawl. Despite all the predictions of these architectures replacing the “old” mainframe/midrange computers, it never happened. And the silos grew deeper and wider, as did the complexity of managing, operating and budgeting.

The Internet Layer
Then there was the Internet. Not an IT disruptor at first. It was more of a social disruptor; innovating they way people shared information and communicated. Again, IT departments had nothing to worry about as long as they secured the connections.

This is where it gets good.

Power to the People
With smartphones and tablets, people started to bring their personal devices into work. At the same time, the Internet was taking a leap forward in evolution with software ‘as a service’ offerings. Again, IT departments largely saw these events as just another fad that they wouldn’t have to deal with, not a disruptor. There was no way they were going to let a personal device get on their network.

This is the dawn of the cloud and mobile era, which is liberating IT’s customers with flexibility, elasticity, accessibility and cost transparency.

The cloud and mobile era is a disruptor, but is a different from those of the past. It is not just another technology to adapt, integrate and support; it is a paradigm shift. It’s radically impacting the business of IT and forever changing the landscape of those who deliver and consume it. With infrastructure offered ‘as a service’ and the advent of the cloud, the bubble burst for IT.

A New Dawn…
History is rich with businesses that were once wildly successful, but due to a lack of innovation, lost their way and their customers. And those that didn’t heed the signs went bankrupt or out of business. There are also success stories of businesses avoiding or coming out of bankruptcy leaner and more competitive than ever.

If IT can adjust to the paradigm shift, knowing that its customers are empowered, emboldened, and liberated with cloud (XaaS) and mobile, they can avoid the painful process of bankruptcy. One of the keys to success in this new paradigm is IT acting as a broker of a portfolio of capabilities and services and being held accountable over a competitive landscape. Accomplishing these shifts will finally result in that ever elusive alliance between corporate IT and the businesses it serves — ensuring the health of IT for decades to come.


Kipp Bertke is an Architect and Strategist with VMware Accelerate Advisory Services and has over 25 years of professional IT and leadership experience. His passion is helping organizations develop actionable and prescriptive IT strategies and roadmaps, closely aligning them to their organization’s business strategy and mission for a measurable business outcome. He leads teams through strategic development engagements with VMware’s Enterprise clients.

How to Keep Your IT Strategy from Becoming Shelfware

By Barton Kaplan

Barton KaplanWe’re living in tumultuous times. That sounds like a cliché, but a cursory glance at the most recent headlines and earnings news bears it out.

Technologically, we’ve moved from the mainframe, to the client-server, and now to the mobile-cloud era, with tremendous implications for both the sellers and consumers of enterprise technologies. Recent geopolitical events have shaken long-held assumptions and created new uncertainties.

Together, this combination of forces has made the work of an already beleaguered group within IT – strategic planners – even tougher. And it’s not as if things were going swimmingly prior to this latest wave of change. When advisory company CEB surveyed business partners about IT strategic planning, a meager 23% agreed that it was effective.[1]

But as tempting as it might be to fire your IT strategist and declare planning dead, 93% of those very same business partners also said they thought IT strategic planning was important.

Which begs the question: In a time of unprecedented change, how do you keep your strategy from becoming shelfware?

Leading organizations I’ve worked with employ the following three best practices to ensure their IT strategies stay relevant:

  1. Embed scenarios into strategy. It’s standard practice to align IT initiatives to business goals and objectives. In today’s environment, however, it isn’t enough to align to a single outcome. An automotive company I worked with looks instead at a range of possible outcomes, listing best case, worst case, and most likely scenarios. Each scenario is then heatmapped against the current IT portfolio to understand the potential impact. As a result of this exercise, project cycle times were reduced by up to three months.
  2. Define strategic triggers. To increase the agility of its strategy, a financial services company began to include possible economic, business, and IT events (e.g., an acquisition, a new product launch, etc.) that would require revisions to its roadmap. They go so far as to list specific actions that need to be taken should any particular event actually come to pass.
  3. Make it a living document. Strategic plans are especially vulnerable to quickly falling out of date and losing their currency. Too many organizations place a lot of emphasis on and resources behind the creation of a strategy, but don’t adequately think through how that strategy will be maintained and refreshed going forward. Effective strategies require ongoing care and feeding, which only happens when owners are named and responsibilities clearly spelled out.

In times of constant, radical change, maintaining both focus and flexibility will ensure your strategy stays relevant.


[1] “Flexible Strategic Planning,” CIO Leadership Council Webinar, June 2014.


Bart Kaplan is a business solution strategist with VMware Accelerate Advisory Services and is based in Maryland.

The Evolving Face of Business

By Daryl Bishop

Daryl BishopReading popular press or watching movies such as the Aliens series where Weyland Industries pretty much ran the world, you would be under the impression that the future of business is pre-ordained with large behemoth corporations running the show.

The notion that large corporations will evolve into globally dominating entities is not new and not without historical precedent. Certainly, the U.S. Government has in special cases, split up large companies with the aim being to minimise monopolistic behaviours. I would, however, like to offer a counter view that market forces are compelling the move from large centralised organisations to ones where greater profitability is linked to smaller nimble businesses that can rapidly react to changing market conditions.

Here are my reasons why:

Built for Creativity and Innovation
The two companies below highlight the advantages of keeping organisation sizes small or at least acting small

  • W.L. Gore & Associates – Bill Gore, the founder of W.L. Gore & Associates, the maker of the famous Gore-Tex fabric, organised his business into small task force groups. To promote communication he limited teams and manufacturing facilities to 150-200 people. There was a sociological imperative for this sizing as it was thought that this was the maximum number where people could build connections with each other.
  • Flight Centre – Flight Centre, an Australia-based travel company with over 2000 stores, uses an organisational structure where stores within a region operate as tribes competing with other stores. This encourages connectivity and belonging within the tribe while promoting competition between stores.

In both examples the key to unleashing the creativity and innovation of people was limiting the size of the corporate ‘tribes’ to encourage connectedness.

Agility
The last few years have seen the rise of the startup movement; these companies attract the best talent, have a source of funding through venture capital and crowd funding sites and have a lean startup framework to build and quickly adapt to the market. Startups innovate quicker and produce products that customers want, as they can rapidly pivot as needed to match their products to customer demand.

Profitability
Interestingly, when Standard Oil was broken into 90 separate companies in 1911 as a result of an anti-monopolistic legal action, the share price of these separated companies on average more than doubled. Companies survive, thrive and die based on their ability to innovate and quickly bring products to the market. The speed of business has accelerated over the last decade due to globalisation, the Internet era and the aforementioned rise of the startups.  The companies that can create and react quickly to the market will survive and thrive.

Small but Large
The recent 19 billion dollar sale of WhatsApp to Facebook is an example of how companies can be small and still attract large valuations. In WhatsApp’s case it had 55 employees at the time of sale.  The historical link between the payroll and company valuation no longer applies. Smaller organisations make ready use of a larger service and capability ‘organism ecosystem’. This minimises capital investment by use of a service consumption model, allows focus on their market segment, and supports rapid growth. The use of cloud services is an example of a technology service offering from this ecosystem. This also expands to manufacturing services such as design, fabrication and batch run.

Joining the dotted lines, I believe the trend will be towards smaller organisations that will better react and compete in a fast paced marketplace than their larger brothers. Of course, large organisations will still have a place across all sectors; however, I predict the market will provide a natural brake on unrestrained growth, as size becomes an impediment to competitiveness.

So what’s this to do with technology? IT needs to work closely with the business to ensure that the right strategy and services are in place. As technology is at the forefront of change, the onus is on us to inform, educate and be creative for our business. Finally, IT needs to be the model of agility that other business units strive to replicate.

Evolving Business Image


Daryl Bishop is a business solutions architect with VMware Accelerate Advisory Services and is based in Melbourne, Australia.

Streamlining Service Management to Achieve Cost Savings Targets

By Reginald Lo

ReginaldLo-cropIT departments continue to face aggressive cost saving targets.  During the recent recessions, many IT departments did not just “cut the fat” but they have also “cut into the bone.”  How can IT cut more?  Every stone must overturned to find even more cost saving opportunities.  A legitimate question is, “how does Service Management help achieve the cost saving targets?”

To answer this question, there are a number of perspectives that will help:

  1. How does Service Management directly save costs?
  2. How do we reduce the cost of Service Management?
  3. How do we change the conversation around Service Management so the Business becomes more interested in maximizing the value of IT Services as opposed to minimizing the cost of IT services?

This discussion is focused on cost savings so we will investigate the first two perspectives.

How does Service Management directly save costs?
The adoption of mature Service Management processes can improve productivity and (let’s be honest as to what Executives are looking for) opportunities for reducing head-count:

  • Reducing the re-work.  The biggest cause of re-work is failed changes.  Better Change Management, Release and Deployment Management, and Testing and Validation, can reduce this largest contribution to waste.  Configuration Management can enable Change Management and make it more effective.
  • Reducing the fire-fighting. Many organizations do not realize the high cost of constantly fire-fighting.  Fire-fighting pulls resources from strategic project work so there are the direct costs to fight the fire as well as the indirect opportunity costs that the projects must bear.  In contrast, a proactive approach, giving people time to think strategically and plan reduces the number of fires and frees the resources that were fighting fires.  Being proactive means emphasizing, among many other things,  the Service Design processes, Event Management, Problem Management and Continual Service Improvement.  Another not well recognized cost of fire-fighting is the impact on the Business.  Fires, by its very nature, do not just create costs and inefficiencies within IT but also create costs (real and opportunity costs) for the Business.  So a reduction in fire-fighting will help IT as well as the Business.
  • Consistent adoption of efficient and effective processes. Too often, processes vary across the organization: different teams follow different processes, different individuals perform processes differently, there are differences between geographic regions, between different legacy organizations (due to the history of mergers and acquisitions), and between different services that IT provides.  If an organization identifies/defines the best practices for its organization and ensures consistent adoption, the organizations as a whole will experience a productivity boost.

How do we reduce the cost of Service Management?
Many of the cost saving arguments for Service Management have been discussed before.  However, a “dirty little secret” is that Service Management is sometimes the cause of “non-value-added” cost to the organization.  This is not the fault of Service Management framework but of an adoption that does not focus on business value.

If you hear comments like “I spend more time writing up a Change record then implementing the Change,” there are probably many cost saving opportunities within Service Management to:

  • Streamline processes and make the more efficient
  • Remove bureaucracy and administrative “busy work”
  • Remove overlapping controls, e.g., between Change and Release
  • More efficient use of tools that support Service Management

Another way of finding to reduce the cost of Service Management is to analyze who is doing what activity within each process.  For example:

  • Can the activity be performed by a less expensive resource?  What training and tools can we provide the less expensive resource so they can be successful at the same tasks as the more experienced / more expensive resources?
  • Can the activity be off-shored (again to a less expensive resource) in a way that we can still keep the process coherent?

To ensure Service Management is not causing a burden to the organization, you need metrics to measure the cost and value of each process.

———
Reginald Lo is Director of Service Management Transformation with VMware Accelerate Advisory Services and is based in California.

Transforming Your Business with End-User Computing

By Daryl Bishop

Daryl Bishop-cropIn my last blog, I talked about the need for a common definition around what constitutes transformation within the IT organisation. In this follow-up post, I’ll discuss the VMware approach to an end-user computing (EUC) transformation.

First a recap, for an initiative to be truly transformational it must satisfy the criteria of change across the elements of people, process, and technology. Additionally, it should be aligned to business objectives and have clear benefits.

If we look at the typical EUC environment today, it’s transitioning from a rigid environment based on a desktop or laptop running a Windows operating system to one that is application and data-centric rather than device-bound. This has some profound transformational impacts for business and IT.

Today’s End-User Computing Environment
Let’s first take a closer look at the EUC environment found in most organisations today.

BISHOP-EUCAs shown in the diagram above, staff have historically used either a laptop or desktop as a primary device. This device, running Windows as the operating system, is locked down at the configuration layer with applications installed natively. This stack forms your traditional and very common standard operating environment (SOE) model. Coupled with the SOE, the EUC ecosystem included printers, isolated (not integrated) mobility devices, and finally an identity management authentication and authorisation component.

This model served us well, providing control, standardisation, and management of risk. However, the rise of the consumerization of technology, a modern IT-literate workforce, ubiquitous access to applications, the decreased usage of the Windows operating system, and the always-connected Internet means this model is, at best, inflexible and, at worst, irrevocably broken.

The Transformed End-User Computing Environment
So what does a transformed EUC environment look like? In the diagram below, the focus has been abstracted from the devices to the application and data access layer.

BISHOP-EUC2

Let’s look at each layer in a bit more detail to better understand the benefits of removing the focus on devices and elevating it to the application and data access layer:

  • Business layer
    Business is typically not just a single entity: It consists of your internal business and external B2B organisations that collectively form your business ecosystem. While your business will provide a core service, in the future it’s likely that smaller, more nimble organisations like start-ups will utilize your core business services and APIs to provide customers with innovative products. Your applications and data will not just be consumed internally, but also by external organisations as business-to-business transactions.
  • Application delivery platform
    The application delivery platform is a standardised access point where your consumers will access applications, data, and desktops. The key features of this abstracted application access layer are:

    • Device independence
    • Centralized management via policy
    • Auditable access and usage
    • Accessed over secure channels
    • Simplified ease of use

Where security and control was traditionally applied at the device and operating system level, it is now abstracted to the application and data access layer.

  • Lightweight device management
    In this context, lightweight management means the minimal IT controls necessary to manage devices, primarily for security reasons. While rigid, locked-down control has historically been the norm, in the transformed environment only lightweight controls are applied. For example, mobility devices use mobile application management (MAM) containerisation to ensure IT can remotely wipe or lock access only to the corporate container. Data, applications, virtual desktop access, and security controls are now applied at the application delivery platform layer via centralized policy controls.

Finally does this constitute a transformation? Let’s review the impact through the lens of people, process, and technology:

  • People
    A modernised EUC environment is a catalyst to elevate staff from traditional, task-based to knowledge creation activities using the productivity platform that best suits their work style. By unleashing staff from the rigid model of yesterday, staff exercise increased creativity, providing a real point of competitive differentiation through innovation.
  • Process
    The traditional EUC environment is awash with layers of process to manage a monolithic computing stack. From processes to deploy applications and patches to service desk support, they add complexity with many moving parts to manage. Shifting the focus to the application delivery platform with lightweight management of devices introduces policy-controlled automation and simplified management controls.
  • Technology
    Businesses today struggle with BYOD, security, and management. By abstracting the management to the access layer, BYOD becomes a moot point. IT is no longer concerned, apart from connectivity, about what device is being used. Security is applied where it should be, at the application and data layer. Finally, management is focused on controlling access to data and applications via policy, rather than managing a desktop and laptop stack.

I’ve really just scratched the surface of what constitutes an EUC transformation. The role of unified communications, changing work practices such as activity based working, the software-defined enterprise, and the changes to the IT organisational structure to support the transformed environment — can and should be significant components of a transformation program.

I’d be interested in your view from the trenches. What EUC initiatives do you have planned and how are they transforming your business?
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Daryl Bishop is a business solutions architect with VMware Accelerate Advisory Services and is based in Melbourne, Australia.

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