To quickly recap: this is the age where digitally empowered customers are driving firms to become customer-obsessed, digital businesses that apply customer-led, insights-driven, fast, and connected technology. You may be asking “What does this have to do with me and my responsibility in Infrastructure and Operations?” To answer in brief, your CIO and technology management organization play central roles in making your firm customer obsessed because:
Technology enables dramatic business transformation.Customer-obsessed digital businesses exploit digital technologies to create new customer value and increase operational agility in service of customers. Companies that understand how to master these challenges are driving digital transformation to become digital predators. Forrester predicts that by 2020, every business will be either a digital predator or digital prey.
Customer-led business value drives technology investments. Tech management organizations must understand, manage, and communicate technology’s role in delivering customer-obsessed outcomes like digital customer experience. Technology executives responsible for service design and delivery must minimize the cost of MOOSE (spending to maintain and operate the tech organization, systems, and equipment) for ongoing operations, deliver the agreed quality of service, and shift investments to customer-obsessed innovation. Only 14% of budgets for new IT initiatives and projects support sell-side business operations.
Last week I attended BMC's Engage event, an analyst forum in Vegas, as a guest of BMC. Like every other technology vendor, BMC would like a greater share of the emerging digital economy.
With more and more businesses moving to the public cloud, I have no doubt in my mind that the on-prem data center market will diminish quickly over the coming years. I also expect mainframes to go the way of the dodo within 10 years, but many others have previously predicted the demise of mainframes and time has proven them wrong, so I accept I may also be premature.
BMC, a bastion of IT operations, now wants to help IT leaders become drivers of digital business. Indeed, BMC has positioned many of the current raft of product offerings to help tech leaders deliver a more efficient and agile tech capability for the business. And this is important. One of the biggest challenges for many large technology teams is their lack of agility. In the age of the customer, tech teams need to tap into every opportunity (and automation capability) to drive greater agility and efficiency throughout their technology delivery capabilities.
Over the past 25 years, many organizations have modelled their support – and in some cases their delivery organization – after the ITIL frameworks and processes. For many, ITIL has been helpful in establishing the rigor and governance that they needed to bring their infrastructure under control in an era where quality and consistency of service was critical and technology was sometimes fragile.
Today, we are 5 years into “The age of the customer” – an era where customer obsession is driving technology and which demands a culture of speed and collaboration to differentiate and deliver extraordinary customer experience to drive business growth. In this era, the rise of mobility and the race to deliver differentiated business processes is critical to success. Your development teams are driving velocity and elasticity with increased quality and availability, leveraging DevOps practices and often driving change directly to production.
This transition has led some organizations to experience friction between the competing priorities, velocity and control, especially for those who continue to execute on the traditional model of ITIL.
ITIL is starting to show signs of age. That does not mean it is on the verge of demise. ITIL must adapt. To understand the relevance of ITIL and IT Service Management practices in this era of Modern Service Delivery, Eveline Oehrlich and Elinor Klavens and I have embarked on a review of ITIL and the use of IT Service Management practices supporting todays BT agenda.
I bring tidings of great joy to the Forrester community, and especially to our clients! We have a new analyst on the Infrastructure & Operations Research team! It took a long time to get the right person, but we finally did. Once you meet him (and you likely already have), you will agree!
The newest Principal Analyst on the I&O team is Robert Stroud! Rob comes to us after a long stint at the software company CA, where he was most recently the VP of Strategy and Innovation. Central to his recent work is a significant amount of evangelism about DevOps, the hot movement promoting rapid application and technology service delivery. He has been very active in the governance and service management communities for years, holding many leadership positions. He just wrapped up his tenure as the International President of ISACA and was a primary author of the last few versions of the COBIT framework. He has won several awards in this community in recognition of his many achievements – all well deserved!
When it comes to your Technology Management service catalog, are you lost in arguments on what to call certain categories of services? What are your service families and what is the next level of service elements? What are the definitions of the service elements? These questions are just the tip of the iceberg of current projects within I&O organizations in defining the rich and complex world of a technology management service catalogs. I&O teams are struggling to architect foundational service catalogs which will support the standardization and optimization efforts of their service offerings.
With that challenge in mind, Forrester created a I&O Technology Management Service Taxonomy - a collection of many service elements, organized by 13 service families. The research consists of a detailed spreadsheet based tool with a variety of service families, service taxonomies and definitions. The next steps are to understand the business services and capabilities which are enabled through these technology management services. Some business services and capabilities are similar from one vertical to another. Our next endeavor is to capture these services as well.
I’m sitting on my sofa at home (Yes! Home!) on Sunday morning just before Christmas. I’m “shut down” for the holidays now, but of course, I’m watching Twitter and now listening to my brilliant friends Chris Dancy and Troy DuMoulin discussing CMDB (configuration management database) on the Practitioner Radio podcast. It’s a marvelous episode, covering the topic of CMDB in with impressive clarity! I highly recommend you listen to their conversation. It’s full of beautiful gems of wisdom from two people who have a lot of experience here – and it's pretty entertaining too!
I agree with everything these guys discussed. In particular, I love the part where they cover systems thinking and context as the key to linking everything conceptually. I only have one nit about this podcast, and the greater community discussion about CMDB, though. Let’s stop calling this “thing” a CMDB!
I coauthored a book with the great Carlos Casanova (his real name!) called The CMDB Imperative, but we both hate this CMDB term. This isn’t hypocritical. In fact, we make this point clear in the book. Like the vendors, we used CMDB to hit a nerve. We actually struggled with this decision, but we realized we needed to hit those exposed nerves if we were going to sell any books. Our goal is not to fund a new Aston Martin with book proceeds. If so, we failed miserably! We just wanted to get the word out to as many as possible. I hope we've been able to make even a small difference!
Engaging All Service Engineering Folks: Help Forrester Define “Service Engineering” As A New Role Within Infrastructure & Operations (Or Beyond)! A variety of technology trends such as mobility and clouds are empowering consumers and connects employees who all are interacting and collaborating through apps and devices which are changing the way business is conducted. In response, organizations are forced to accelerate business changes which require the need for agility innovating new technology choices, implementation options, and delivery approaches. In this new pace of change the business demands more of IT to help deliver services which enable and support the age of the customer. Some Infrastructure & Operations teams have made the transformation to manage and support BT services which consist of technology, systems, and processes to win, serve and retain customers. Other organizations still manage and support components which range from operating systems, middleware, general purpose components, applications and custom components built all for specific purposes. I&O teams have become good at building components, but it often lacks the engineering discipline to assemble these components into services that meet specific business needs and are relevant in the age of the customer. To stay relevant and transform Infrastructure & Operations in the age of the customer, I&O needs a new role – service engineering. Service engineers mainly “do” three things:
1. Think and act from the outside-in – this means establishing, managing and continually improving services which are critical and essential for business enablement and business success.
2. Participate and support the DevOps journey – business agility in large parts depends on technology today. The DevOps team plays a large role in the quality and speed of technology delivery.
In August this year I am heading down to our nation’s capital to take part in the annual itSMF Australia event – LEADit. I have taken part in this event to a greater or lesser extent over the past few years across Australia – Sydney, Perth, the Gold Coast and now Canberra. As an analyst who broadly covers the Service Management space (as well as a previously ITIL qualified practitioner), this event is the mecca for those interested in service management in Australia.
Year after year at this event, I see a fair amount of change in the content and focus, but little change in the thinking, and little real movement in the implementation or improvement of the processes – a recent survey between itSMF-USA and Forrester displays the current maturity levels of processes in organisations:
Here we are – years (decades?) after the first ITIL books were written, and demand management is STILL immature. Even financial management has barely shifted in maturity over the past few years. Why is this the case?
As I write this, I am in seat 1A of United flight 1607 from Philly to Houston. playing on the screen in front of me is CNBC. I make no secret of my disdain for much of the so called "news media" so I won't launch into my usual rant there (there are some superb journalists out there, but Murrow and Cronkite must be rolling in their graves!). I am bristling over the coverage right now that is focused on the 787's latest woes. As usual, the talking heads are clueless and painting a doomsday scenario for Boeing! It's a bunch of finance people who don't understand the engineering realities. They're smart bean counters, but not engineers. I am an old engineer, so let me shed light on what the Wall Street mouths don't know. There is an important lesson here for I&O leaders!
I was part of a Forrester Team that recently completed a multi-country rollout tour with Emerson Network Power as they formally released their Trellis DCIM product, a comprehensive DCIM environment many years in the building. One of the key takeaways was both an affirmation of our fundamental assertions about DCIM, plus hints about its popularity and attraction for potential customers that in some ways expand on the original value proposition we envisioned. Our audiences were in total approximately 500 selected data center users, most current Emerson customers of some sort, plus various partners.
The audiences uniformly supported the fundamental thesis around DCIM – there exists a strong underlying demand for integrated DCIM products, with a strong proximal emphasis on optimizing power and cooling to save opex and avoid the major disruption and capex of new data center capacity. Additionally, the composition of the audiences supported our contention that these tools would have multiple stakeholders in the enterprise. As expected, the groups were heavy with core Infrastructure & Operations types – the people who have to plan, provision and operate the data center infrastructure to deliver the services needed for their company’s operations. What was heartening was the strong minority presence of facilities people, ranging from 10% to 30% of the attendees, along with a sprinkling of corporate finance and real-estate executives. Informal conversations with a number of these people gave us consistent input that they understood the need, and in some cases were formerly tasked by their executives, to work more closely with the I&O group. All expressed the desire for an integrated tool to help with this.