The update to the Benchmarks report for Forrester’s Service Management & Automation (SMA) playbook is now live and with its publication marks a change in how we at Forrester - and you - should look at SMA.
Past efforts in IT service management have brought some changes, but as our survey done in conjunction with itSMF USA indicates, not much has changed. Service management has focused too much on internal infrastructure and internal operations (IT), and while this is still important, the demands for technology to acquire and retain customers, which Forrester calls business technology (BT), must be addressed to leverage and apply technology to advance, not hinder or stifle the business we enable.
The world we support is progressing exponentially while ITSM is progressing linearly, arguably statically – please see the report for further evidence. Being linear is being human; the exponential comes from harnessing technology, and radically shifting our focus towards service management and automation topics essential to being partners with our business teams.
In lieu of data, here are three concepts from the report that promote a new way of thinking:
I recently had a meeting with executives from Tech Mahindra, an Indian-based IT services company, which was refreshing for the both the candor with which they discussed the overall mechanics of a support and integration model with significant components located half a world away, as well as their insights on the realities and limitations of automation, one of the hottest topics in IT operations today.
On the subject of the mechanics and process behind their global integration process, the eye opener for me was the depth of internal process behind the engagements. The common (possibly only common in my mind since I have had less exposure to these companies than some of my peers) mindset of “develop the specs, send them off and receive code back” is no longer even remotely possible. To perform a successful complex integration project takes a reliable set of processes that can link the efforts of the approximately 20 – 40% of the staff on-site with the client with the supporting teams back in India. Plus a massive investment in project management, development frameworks, and collaboration tools, a hallmark of all of the successful Indian service providers.
From a the client I&O group perspective, the relationship between the outsourcer and internal groups becomes much more than an arms-length process, but rather a tightly integrated team in which the main visible differentiator is who pays their salary rather than any strict team, task or function boundary. For the integrator, this is a strong positive, since it makes it difficult for the client to disengage, and gives the teams early knowledge of changes and new project opportunities. From the client side there are drawbacks and benefits – disengagement is difficult, but knowledge transfer is tightly integrated and efficient.
Last week, Forrester’s Service Management and Automation team attended FUSION 13, an annual conference jointly hosted by itSMF USA and HDI, in Nashville, Tennessee. FUSION is a key conference for IT Service Management professionals - for three days ITSM pros are immersed in a content rich environment where they're encouraged to share knowledge and learn from one another, as well as from a plethora of industry experts, practitioners, vendors, and thought leaders alike. It's impossible to leave without having made new friends and new discoveries in the realm of IT Service Management. Approximately 2000 ITSM professionals attended the 2013 conference, with the theme "graduate to better service management."
The buzz of this year's event can be easily put into two terms: revolution and status quo. Yes, you read that correctly. And while these two terms are quite contradictory, when put into context they actually are somewhat related - don't worry, we'll explain. First, the status quo:
At FUSION 13, we presented the results from our third annual ITSM survey Forrester does in conjunction with itSMF USA, and not much changed year-over-year. Aside from a few minor rumblings, ITSM maintained the status quo, and in this case, no news... is news:
It's that time of year again - the US Open is under way in New York City, the end of summer looms, and Forrester Research's third annual joint survey with itSMF-USA to understand the state of ITSM is out in the field and calling for your participation!
Last year, the year-over-year data collected gave us some good and not-so-good news.
Compensation for ITSM professionals overwhelmingly increased.
ITIL's positive influence on the organization was compelling with over 70% of service management professionals agreeing the best practice framework improved productivity, and 65% finding it helps to deliver better service quality.
25% of survey takers did not know whether their incident mean time to resolution (MTTR) had increased, decreased, or remained the same over the past year.
A whopping 31% of them did not know what percentage of incidents were the result of a change to infrastructure, applications, processes or tools!
One of the best TV comedies in the UK over the last couple of years has been The IT Crowd. It is about a fictional IT department and plays to all the possible IT stereotypes. One of my favorite scenes is from the very first episode in which a ‘user’ is left waiting for their call to be answered for an excruciating amount of time and then another ‘IT professional’ is shown speaking to a ‘user’ in complete technology gobbledygook. Yes, this clip is funny but surely these are all extreme cases and only slim comparisons can be made to Enterprise IT today?
I have to be honest here and say that during my time as an enterprise management consultant I saw all that happened on this clip, but surely modern day IT organizations don’t suffer from these problems? Well, maybe not to the same extent but how often have you heard, or even whispered, these famous words when working with the IT service desk or help desk:
A year and a half ago I broke up with Blackberry and started dating iPhone. It was a clean but cruel breakup: AT&T cancelled my T-Mobile contract on my behalf, the equivalent of getting dumped by your girlfriend’s new boyfriend.
This year I’ve been cheating on my laptop with my iPad. But it’s an on-again, off-again relationship. While I tell my iPad it’s the only one, I keep going back to my laptop. When I travel, my iPad is with me meeting clients. Meanwhile my laptop is in the hotel room surfing the online menu for a turkey club.
The iPad beats my laptop on size, weight, connectivity, and battery life. It also improves the human element when I’m having a face-to-face conversation but need to take notes. These are all critically important to me when I'm out of the office visiting clients or at an event.
But my laptop wins when I need to perform other important activities. For example, the larger screen really helps to write and edit research reports (John Rakowski, you’ll have your edits soon!). Or when I need to approve expenses behind the VPN or access files on my hard drive that I haven’t stored in Google Drive (yes, Forrester sanctioned).
Now that I've had a few months of compare both devices, I come back to outcomes . . .
Here’s the hard truth:IT infrastructure and operations (I&O) teams are becoming less relevant. This will only accelerate now that we are in what Forrester calls “the age of the customer” where bring-your-own-technology policies and “as-a-service” software and infrastructure proliferate.
In this new world, developers still need compute and storage to keep up with growth. And workers need some sort of PC or mobile device to get their jobs done. But they don’t necessarily need you in corporate IT to give it to them. Case and point: employees pay for 70% of the tablets used for work.
At the end of the day, if you can’t deliver on what your workforce and developers care about, they will use whatever and whoever to get their jobs done better, faster and cheaper.
Much of this comes down to customer experience, or how your customers perceive their every interaction with the IT organization, from your staff in the helpdesk to corporate applications they access every day. Here’s a proof point on how much customer experience matters from Forrester’s soon to be published book, Outside In: over a recent five-year period during which the S&P 500 was flat, a stock portfolio of customer experience leaders grew 22% percent.
During a recent global analyst event in Paris, Capgemini presented its strategy to a panel of market and financial analysts. It hinges on two main objectives: improving the resilience of the organization in an uncertain economic environment — especially in Europe — and finding new levers for margin improvements.
From an operations point of view, Capgemini intends to continue leveraging the usual suspects: industrialization, cost cutting, and accelerating the development of its offshore talent pool. It also aiming to optimize its human resource pool via a pyramid management program aimed at, among other things, allocating the right experience level to the right type of work.
More interestingly, the company showcased some of the global offerings it has put together or refined over the past 12 months. Capgemini’s strategic intent is to develop offerings addressing three major client-relevant themes – customer experience, operational processes, and new business models. The offerings will be enabled by a combination of cloud, mobile, analytics, and social technologies. Among the set of offerings managed globally, I found the following of particular interest due to their emerging nature and Capgemini’s interesting approach to developing them:
Only a few months since I authored Forrester’s "Market Overview: Data Center Infrastructure Management Solutions," significant changes merit some additional commentary.
The major vendor drama of the “season” is the continued evolution of Schneider and Emerson’s DCIM product rollout. Since Schneider’s worldwide analyst conference in Paris last week, we now have pretty good visibility into both major vendors' strategy and products. In a nutshell, we have two very large players, both with large installed bases of data center customers, and both selling a vision of an integrated modular DCIM framework. More importantly it appears that both vendors can deliver on this promise. That is the good news. The bad news is that their offerings are highly overlapped, and for most potential customers the choice will be a difficult one. My working theory is that whoever has the largest footprint of equipment will have an advantage, and that a lot depends on the relative execution of their field marketing and sales organizations as both companies rush to turn 1000s of salespeople and partners loose on the world with these products. This will be a classic market share play, with the smart strategy being to sacrifice margin for market share, since DCIM solutions have a high probability of pulling through services, and usually involve some annuity revenue stream from support and update fees.
One of the problems I see with ITSM adoption is that it is all too easy to get lost in a framework such as ITIL and to lose focus on the customer element. Unfortunately, ITSM adoption is not a one-size-fits-all approach and so adoption can be different from company A to company B, which means that trying to adopt a process from a guide can be difficult and can feel impossible.
The answer to good ITSM adoption practices lies within those practitioners who have implemented processes, experienced the highs, the lows, the sweat and even the tears. In order to really build best practices these people need to share these experiences back to the rest of the community. So one way I think we could do this is to arrange a ‘Free ITSM Practitioner Meet Up’ which I thought could maybe be called ITSMME (me=meet up). This would follow the successful Cloudcamp format and would be an evening, free to attend event with an agenda like this:
6.30pm – Introduction - introducing speakers and maybe a theme.