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As IT becomes increasingly important to business operations more and more IT organizations are turning to ITIL and other such ITSM frameworks to bring IT under control and provide services that deliver business value. ITIL V3  sums up perfectly what we in IT need to deliver "Value to customers in terms of outcomes they want to achieve without the ownership of specific costs and risks."

Unfortunately, too many  ITSM improvement programs fail. Reports vary, stating that between 70% and 80% fail to deliver value. A Forrester report revealed that 52% fail because of resistance. These failures cause wasted costs and increased business risks. These failures are no longer acceptable.

Paul gives us the "Top 10 Types of Resistance" you had better keep an eye out for. And if you catch yourself resisting with one of these techniques... well, then.

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Back in 2007, Gartner released the statistic that IT was responsible for 2% of global CO2 emissions. This puts IT on a par with the aviation industry. Yes, really! We all focus on the airlines, because they are big and obvious, we can even pay an off-set charge to "feel better", but we need to start and focus on things we can more directly impact on our own doorstep, the IT we use. The carbon footprint of PCs and monitors is expected to triple by 2020 - a growth rate of 5% per annum. The global data centre carbon footprint is expected to triple by 2020 - a growth of 7% per annum.

We've all heard about global warming and the impact we hungry consumers are having on the planet. It's something we need to address, especially as we begin to see the impact it's having on our weather patterns. Severe floods in South America, Australia, heavy snow in the UK and East coast of the USA. These conditions are impacting our lives and businesses and are projected to continue unless we all start to turn the tide and think of ways to reduce our carbon footprint. Many governments and businesses have Green policies and set targets as part of their corporate governance responsibilities ...perhaps your own organisation has such a policy. If so, do you know its content and how you can contribute towards it? We need to start adding Green IT thinking into all that we do, particularly in the business/IT (BSM) relationship, before it's too late.

What can we do about this? There are simple things to make a positive start, such as archive unused data, power off idle Desktops, printers etc. We need to bring this thinking into our Service Strategy and Design initiatives ready for the transitioning into live operations. We need to bring Green IT into the business-oriented service management discussion. 

Recently I came across a great article by Karen Ferris from a consulting company in Australia, Macanta Consulting, who looked into Service Management and in particular ITIL as a way of understanding, controlling and reducing a Businesses CO2 impact. I hope you'll find it of interest and useful in your Green IT efforts.

Chris Bruzzo, the CTO of Starbucks, and Narinder Singh, the founder of Appirio, demonstrate Starbucks Pledge 5 application, built on the force.com platform.

They did it in 21 days.  That’s the real value of the cloud.

Watch:



At the following blog post by Chris Curran in CIO Dashboard, he quotes Louie Ehrlich, CIO, Chevron Corp,

http://www.ciodashboard.com/leadership/closing-expectation-gap-business-stakeholders/#disqus_thread

It is a first person example of the CIO challenges of moving up the BSM maturity model, and the need to get your IT fundamentals in place prior to shaping IT deliverables in a business context ...which is needed prior to moving to the strategic business discussion of making technology a better enabler of effective business goals.

Mr. Ehrlich references the different types of business executives he has dealt with, and offers three requirements to becoming a "business strategist CIO."  I would offer that those requirements need to be done sequentially for best effectiveness.  Great insight on BSM from someone who has been there and done that.

Well, here it is: "Why Doesn't the Business Drive BSM? A Value-Driven Business Service Management Maturity Model" >>

BSMReview's Bill Keyworth and Rick Berzle evaluate the management of IT services from the perspective of the business, a.k.a. "business service management."

The negative impact of IT organizations being culturally and functionally disconnected from their business community is escalating, explain the authors.  As evidenced by the push to bypass traditional IT options through Cloud and SaaS initiatives, IT must enhance how technology is provisioned for the business.

The BSM Maturity Model described in this ground-breaking paper covers 5 levels:

bsm levekls

You can download it here for free (registration required) and let us know what you think >>
Another area that is gaining more and more attention these days is "Cloud computing" and I guess the largest issue I have is around its scope and definition. Many appear to offer hosted services and this is now renamed as Cloud computing, even outsourcing, managed services, Software as a service (SAAS) fall under this new branding. Is that all it is, a simple rebranding to allow all remotely hosted services to have a new home?

As with all new paradigm shifts the best evidence that it'll be widely adopted and accepted is by looking at the user community for this.  At this week's Westminster eForum one of the speakers, Rik Ferguson, senior security adviser at security firm Trend Micro told us that the criminal fraternity are the largest group of adopters. Well I guess if we look back to look forward, we'll see that this was the case for the early adopters of the internet (pornography being the biggest financial winner). Well Rik also highlighted that "We already see customers of Google, customers of Amazon, who are criminals and who use those services, among others, to run command-and-control services for botnets, to launch spam campaigns and to host phishing websites. They see the power, the scalability, the availability and, for them, the anonymity that is possible through cloud services and they are using it to its fullest extent."

Well the good news is that both large and small organisations will benefit from the Cloud, enabling smaller companies to automate, scale up and down depending on the market conditions whilst keeping overheads well managed. Large organisations can also reduce overheads, move into new or changing business areas quickly without being held back by in-house technology restraints. However I think that now, more than ever, process becomes king. Knowing your business services processes and IT services processes are in place, ownerships of responsibilities are understood become the key to success when the ownership of the infrastructure (including operating systems, software and applications) are left to someone who is not a part of your business. It appears to me that we are entering into the realms of treating IT as a utility, just like Electricity, gas etc. We need it to be there, we need to know the costs of utilisation, but the providers do not need to know what we run on it. This makes me think about the capacity planning and availability issues. We in the UK certainly know that the Electric providers monitor the utilisation and have to prepare for odd events like the ½ time during a football and rugby match as viewers go and put the kettle on for tea. The utility suppliers need to understand their market, its dynamics and influences, however odd, to ensure all the customers get the resources they need, when they need it without interruption. Can "the cloud" handle this now or in the future?

Who's working on the cloud right now? Well Amazon, Google, Sun, IBM etc, but some surprising companies are entering the market utilising spare capacity from their traditional business. Salesforce.com now offers Force.com to other business to host applications on. BMC software being a recent case in point. So keep your head in the cloud and watch how things develop, in particular the process issues of dual ownership and the end to end automation, but keep your feet on the ground to ensure you protect your business and understanding the current and potential risks.

The space between the cloud (hosted infrastructure (including apps)) and the end users would be the area that needs focus. Can that be called "fresh air"?

By Bill Keyworth and Annie Shum

A fantastic BSM article appeared last week (1/18) in InfoWorld entitled "Run IT As a Business - Why That's a Train Wreck Waiting to Happen."  The author, Bob Lewis, identified the futility of IT organizations continuing down the same broken path that is not connecting IT with their business counterparts ...yet he sees too few IT executives who are willing to initiate the necessary BSM changes.  One of Bob's central messages to IT is that "no one inside your company is your customer."  Fairly basic principle ...but highly compelling to initiate change in the way IT performs their labors.

Bob provides some outstanding examples of IT executives that struggle with providing the "same old ...same old" IT services to business people who can't see the benefit of paying what they perceive as premium prices for products and services that they see advertised elsewhere for a fraction of the cost; or who fixate on short term deliverables that are "good enough" but don't address the company's strategic business opportunity for the longer term; or who won't document requirements in a way that ensures IT can deliver on expectations.   In these cases, IT consistently finds itself in a defeatist catch-up mode.

The article provides some common-sense advocacy that running "IT as a business" ensures that IT doesn't satisfy corporate business needs.  It's an interesting twist to the dichotomy of how BSM is perceived by IT versus how BSM should be positioned and executed by IT.  Bob concludes with a vision on what an IT organization actually does and looks like when it is integral to the business community, and not an add-on cost center that depletes profits.  Again... great BSM article!

voiceofcio.gifI don't generally tell people that a report from a vendor is a "must read," but in this case it is. 

I'm referring to IBM's The New Voice of the CIO report, a global study of 2,598 Chief Information Officers (CIOs) released back in September of this year. 

The report (registration required) highlights the somewhat schizophrenic roles that CIOs the world over are under pressure to take on, depending, of course, on the nature of the burning issue at hand.  The report identifies six distinct roles that CIOs must learn in order to keep up with the requirements of the job:


IBMCIO.gif

The bright side of the report:

The voice of the CIO is being heard in new ways--as CIOs are increasingly recognized as full-fledged members of the senior executive team. Successful CIOs are much more actively engaged in setting strategy, enabling flexibility and change, and solving business problems, not just IT problems.

Today's CIOs spend an impressive 55 percent of their time on activities that spur innovation. These activities include generating buy-in for innovative plans, implementing new technologies and managing non-technology business issues. The remaining 45 percent is spent on essential, more traditional CIO tasks related to managing the ongoing technology environment. This includes reducing IT costs, mitigating enterprise risks and leveraging automation to lower costs elsewhere in the business.

So IT is increasingly viewed as strategy enabler, but not everyone is on that bandwagon.  The low-growth companies are, as might be expected, focused on bean counting and fire-fighting.

Visionary IT, on the other hand, is focused on strategic initiatives:

cioinitiatives.gif

What's interesting here is that for high-growth companies, IT leadership is critical to both decision-making and innovation which are key to value-creation.  They're focused on the future of the business.

When I read this, I immediately thought of VG's three box strategic framework for how companies compete:

According to VG, "many organizations restrict their strategic thinking to Box 1. This tendency has been particularly acute in the past two to three years, as most leaders have emphasized reducing costs and improving margins in their current businesses."

That seems to square nicely with the IBM findings.

So it seems like the role of the CIO is largely determined by the culture and mindset of the executives running the company.  It's pointless trying to be strategic or innovative in a company that focuses on Box 1.

Where does business service management fit into all of this? IMHO, the CIO who sits at the decision-making table (in boxes 2 and 3) is practicing BSM.  The ones who are stuck in Box 1, not so much.

Once again, I suggest you find some time to read the report >>

UPDATE: we now have a BSM Maturity Model (registration required) >>

One of our unstated goals at BSMReview.com is to create a maturity model for Business Service Management and beyond. Of course, this maturity model may differ slightly by industry, but the idea is to create a model which is good enough to create a "common roadmap" for IT and its business partners (yes, we will include cloud services).

To start the discussion, I've brought together some of the traditional thinking from IT 1.0, and some "edge insights" from people like JSB.

To start, let's look at Gartner's IT Management Process Maturity Model from 2005. Looks familiar, doesn't it? What should Level 5 and Level 6 look like? 

maturitymodel_gartner.gif


For nGenera, a few years ago, Vaughan Merlyn created a different sort of maturity model based on demand and supply:
maturitymodel_demand.gif

He asks:

Business demand is also a function of IT supply - low supply maturity will constrain business demand.  For example, an IT infrastructure that is unreliable and hard to use will tend to dampen the business appetite to leverage IT for business innovation and for collaboration with customers and partners.  Typically, if business demand gets too far ahead of IT supply, there will be a change of IT leadership.  On the other hand, if IT supply gets too far ahead of business demand, IT will be seen to be overspending, resulting in a change of IT leadership.  The most common patterns are that at Level 1, business demand leads IT supply; in Level 2, IT supply tends to 'catch up' with and overtake demand, and in Level 3, demand and supply are closely aligned. From the perspective of late 2007, we see the majority of companies at mid-Level 2, some at high Level 2, and a minority at either low Level 3 or high Level 1.  Why are so many at mid-level 2, and seem to be struggling to get to the next level?
Good question. Any ideas?

Then there's Accenture's Service Management Maturity model from their ITILv3 practice - they rightly state that ITILv3's focus is on business results; hence their advocacy for adoption:

maturitymodel_accenture.gif




At Deloitte, JSB and Tom Winans have built an interesting map for "autonomic computing" which is focused on the direction of IT's evolution. It's part of a series of papers on cloud computing. It's a technology maturity model, if you will:

maturitymodel_jsb.gif

Finally, I borrowed this SOA Maturity model from Infosys:
maturitymodel_infosys.gif


Taken together, we have enough food for thought and discussion, don't you think? I have this silly notion that a business service management maturity model must begin and end not with IT but the business.  And cloud computing will certainly play a giant role in this transformation from physical datacenter to cloud service grids.  And of course we'll still have to worry about compliance and security.

Once again, I'll defer to the JSB and Winans vision for the future.  After we get to autonomic computing, then comes the service grid:

maturitymodel_jsb2.gif



If I understand correctly, here's what they're saying: technology platforms will be business platforms.

With that, let's ask once more: what does a Business Service Management Maturity Model look like to you? 

UPDATE #1:

HP has an ITIL-view which is evolutionary:

maturitymodel_hp.gif

UPDATE #2:

IBM
gives us a look at a maturity model developed by Macehiter Ward-Dutton:

maturitymodel_ibm.gif

Stay tuned.

security survey

Chrisan
's friends over at the Enterprise Strategy Group shared this security best practices report with us. Let us know what you think.

Welcome to BSMreview.com

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Agile BSM

Discussion around Business Service Management (BSM) has been ongoing for years ...and years ...and years. Yet it remains a fairly immature dialogue as vendors scope BSM to capitalize on their respective product offerings; as IT organizations struggle to articulate the desired end state; and as industry analysts deliver unique perspectives for purposes of differentiation.

Fortunately, the purpose of BSM is so fundamental, so basic, and so obvious ...that vendors, IT organizations, business managers, analysts and editors intuitively "get it" ...dwindling the confusion that so frequently accompanies newer technology concepts. This website is dedicated to the BSM dialogue by whoever wishes to participate. There is no fee to join ...no content that requires a subscription ...and no censorship of reasonable ideas and questions.

IT has been, is and will continue to be hammered for being disconnected from the business needs of the customer that IT serves. Sometimes the IT organization is adequately connected to the business entity, with the value simply unrecognized. More often, IT is guilty of diversionary focus on technology silos that business doesn't care about. BSM is the discipline that aligns the deliverables of IT to the enterprise's business goals.

That discipline comes in the forms of activities, technologies, tools, metrics, processes, best practices and people. BSM creates a laser focus on those deliverables generated by IT into something that is meaningful to the business community. If the IT deliverable is of no importance to the business function, then IT should eliminate or repackage it into a service that carries appropriate business value. BSM success is entirely dependent upon the willingness and skill of both IT and business to have an effective two way conversation ...one party without the other is doomed to failure.

Read my complete introduction: The Why & What of Business Service Management

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