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On Monday, Feb 20th @ 1:30PM, Bill Keyworth and I will be presenting the results of the 2011 BSM Benchmark study at the Pink Elephant IT Service Management and Expo in Las Vegas.

An abstract for the session can be viewed here.

We have a booth at the event and hope to engage attendees in a conversation about their BSM maturity, challenges and plans.

We also intend to interview a few end users and will be on the lookout for new announcements that specifically support better alignment between IT and the business.

Hope to see you there!

2011 BSM Benchmark Report

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We are delighted to announce the availability of the 2011 Business Service Management Benchmark Report.
 
The survey, which was conducted in the first half of this year, measures the maturity of BSM initiatives industry-wide. The report provides unique insight into the working relationship between IT and their business counterparts, across departments and roles. It measures the effectiveness of IT service support and identifies the current use and planned adoption of ITIL v2 and v3.
 
We believe you will find the benchmark report both intriguing and insightful.
 
A few key take-a-ways from the benchmark report include:

  • Both Business and IT personnel are approaching consensus on the high-level definition of Business Service Management
  • Businesses are maturing at a higher rate than IT and, as such, IT is struggling to keep pace with the business
  • There remains a significant "information" gap between business and IT regarding how technology could, or should be leveraged to support business growth and competitive differentiation
  • Nearly half of enterprises we surveyed have achieved fairly effective alignment with their business counterparts and are meeting expectations
  • Too many IT shops are in danger of being marginalized as the lack of investment in IT leads to less innovation and IT services that are inadequate to satisfy the longer term needs of the business
Click <here> to download the final report.

This quote by Audrey Rasmussen of Ptak/Noel and Associates does a nice job summing up the report.

"As is typical for major transformations such as BSM, progress never seems fast enough and accurately gauging progress is a continual challenge.  This BSM Maturity benchmark study provides a view of the current "state of BSM", giving BSM practitioners perspectives on their own "state of BSM" and how it compares with other BSM initiatives, as well as a benchmark to measure their progress."

Please don't hesitate to comment on the study in the BSMReview blog or send us e-mail at info@bsmreview.org.

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I would like to thank our sponsors for supporting the survey and promoting the final report.

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BSMReview is a Media Sponsor for the Pink Elephant conference and expo being held in Las Vegas this week. As a media sponsor, we promoted the event on BSMReview and are covering BSM newsworthy items at the event. BSMReview is well represented at the event and we are holding down a spot on the expo floor.

As you probably know, Pink Elephant is a professional services organization that provides consulting, education and tools to assess ITIL and IT service management competency. The Las Vegas conference is their 15th international event, has 1600+ attendees, and offers a solid program of educational sessions that features ITIL experts and customer presenters. The event is well run and sessions that I attended are content rich and well attended.

As a side note, I loved the opening video they produced and recommend watching it -- it is both entertaining and insightful.

We are launching the 2011 BSM Maturity Survey at the event. We are finding a high level of interest in both the BSM Maturity Model we developed last year and the survey instrument. Nearly everyone we have spoken to recognizes the alignment gap between IT and the business, but few know how to deal with the issue. They see the maturity model as a good way to start a dialog and the survey as a way to measure where they stand as compared to other companies their size and within their industry.

Many of the presenters at the event are real customers who are sharing their experiences -- lesson learned and best practices. Many view the CIOs role as the indicator for BSM maturity. Many see their CIO focused exclusively on IT operations (keeping the lights on), others see the CIO as transforming IT (to run IT like a business) and a fewer number see the CIO as strategic to the business. There was a healthy discussion about how IT leadership transitions though these phases, what leadership characteristics are key and if multiple roles are necessary to do it all. It is worth reading the 2011 State of the CIO survey by CIO.com to see how CIOs see their priorities changing this year.

We didn't spend a lot of time with vendors and won't be blogging about any new BSM related announcements. However, we spoke to a number of vendors who have agreed to promote the BSM Maturity Survey to their customers and prospects to support the benchmark study.

Finally, we made some great connections with customers at the event and have a half dozen or so lined up for interviews, so be on the lookout for that.

The Pink Elephant event is 100% relevant to BSM, offers insightful content and is run professionally. We will be back there next year and hope to see you there.
We are very excited to announce that Service-now.com, the pioneer in On-Demand IT Service Management, has agreed to become a sponsor of BSMReview.com.

As a sponsor, Service-now.com will receive brand recognition across the BSMReview community site and eNewsletter. Additional services include:

  1. Dedicated page in the BSMReview Vendor Zone to promote Service-now.com white papers and events
  2. Invitation to participate as a BSMReview Expert providing thought-leadership articles and blog entries
  3. A cadre of joint programs produced and promoted by BSMReview that include thought leading webinars, white papers and customer case studies.
Service-now.com will have the opportunity to participate in shaping the conversation of Business-Oriented Service Management and will gain insight into customer requirements through the use of surveys, polls, discussion groups, and other research instruments.

Service-now.com was one of several vendors to sponsor the BSM Maturity Model developed by BSMReview experts and recently participated in an interview with Bill Keyworth, editor-in-chief, entitled "Achieving BSM Maturity through Service-now.com".

About Service-now.com
The Service-now.com enterprise IT service management platform combines ITIL process support and SaaS delivery to provide a flexible, intuitive and self-managing, cloud-based application. Founded in 2004, Service-now.com uses a new business model and modern technologies to transform IT. According to the 2010 Inc. 500 list, Service-now.com is the fastest-growing IT management software company.

As a site sponsor, Service-now.com content is provided in the BSMReview Vendor Zone.
bsm ibm


Richard L. Ptak, Bill Keyworth and Audrey Rasmussen believe that IBM's strategic focus on Integrated Service Management (ISM) and the application of IBM solutions under the Smarter Planet theme marks a milestone achievement in linking business and IT resources and assets for business success. Not the least because Integrated Service Management, in our opinion, leads directly to the broader message of how IT can effectively leverage and link together all enterprise assets and resources to achieve the goals of the business. ISM closely aligns with the Business Service Management (BSM) concepts that are being unnecessarily limited to discussions of just leveraging IT infrastructure. 

Learn how IBM illustrates and documents enterprise-wide benefits to be realized from BSM.  Read the article »

(Co-authored with Jasmine Noel) Cloud computing makes CA's acquisition of Oblicore interesting because cloud services without serious level contracts (....or a BSM orientation) are an enterprise disaster waiting to happen. Cloud Service providers (be they public, private or hybrid) will need business service management solutions capable of delivering against business-oriented SLAs. Cloud service users will need such solutions to help them make a wise choices from a confusing array of options.

The problem is two-fold, first Cloud implementations transform monolithic IT service delivery into a dynamic supply-chain with volatile interdependencies, interactions and impacts between each link. SLAs will be required that can identify, track, measure and report on each segment of the chain. CA has been working on this aspect of the problem under the Spectrum Service Assurance moniker.

Second, there is the translation of business oriented contract terms and requirements into a meaningful and measurable metrics that apply in a Cloud-environment. It will require a combination of creative modeling, impact analysis and metric identification and definition that relate business needs to infrastructure implementation...or a BSM type bridge between the business and IT gap. Oblicore focused its efforts on this aspect of the problem.

If CA can integrate Oblicore's technology with its Service Assurance efforts with minimal fuss then the results should be a very interesting BSM solution to these Cloud services problems.

Read the full commentary at http://ptaknoel.com/research-analysis/commentaries/ca-acquires-oblicore/

With the British economy haemorrhaging £180 billion this year, mostly caused by the banking bailout, but not just the Banks are causing the problem. The National Health Service (NHS), the 3rd largest employer on the planet and an annual spend of £100 billion (that is 100 thousand million pounds to you and I, or £1,666 per Man, women and child in the UK per annum !). Just to add to this budget the UK government decided back in 2002 (and it's not due to complete until 2014) to create a "central spine" of IT for the entire NHS for:

  • Patients' records to be electronically available to any GP or hospital in England, thereby replacing local NHS computer systems
  • Other services include electronic prescriptions, an e-mail and directory service for all NHS staff, computer accessible X-rays and a facility for patients to book outpatient appointments online
  • It is the largest single IT investment in UK - costs are expected to hit £12.4bn over 10 years to 2013-14
Can you a) believe the costs involved here, and b) believe that the 3rd largest employer on the planet does not have email services across all its employees?

I'm sure Microsoft or Google would have provided a stand-alone secure service to them if they'd asked! Tell me one other major business that does not have their employees reachable via Email? No wonder changes in policy and efficiencies are rare if they cannot quickly communicate to their staff. But just this week they have announced that because of the budget deficit they will need to cut this £12.4 billion budget down by £600 million.

My view is that no commercial business could afford this kind of project and more importantly if they did, it would have to be delivered well within 12 years. Now the saying goes that a week is a long time in politics, but 12 years is a really long time for an IT project, especially considering how quickly this industry evolves and progresses. I imagine that if this plan were to be considered today, cloud computing would be considered, which, again in my opinion, would speed the roll out and connectivity of all the major suppliers and NHS divisions.
 
Whilst I agree all this access to connected data across the NH Service makes sense to avoid the slow paper trial and minimise errors in typing and re-tying, it also raises the issue of privacy of data. Abuse of this information could be rife, with pharmaceutical companies willing to pay vast sums to access the data for analysis to determine which drugs they sell should be targeted at what audience. Insurance companies wanting access to determine risk and exclusions whereas today most people are entitled to medical insurance without even a check-up.

Would the Police Service  gain access for DNA matching, thus circumventing the debate over a central Police DNA database? The list goes on.

Some "selling" of the data if approved by the NHS client (the public) could actually go some way to recovering the cost of the project, a business (nasty word in Government circles!) plan.

Now, I believe, that we in the IT Service industry should get involved in these debates, perhaps through bodies like the ITSMF, British Computer Society etc . we have a lot to offer in terms of experience and insight. These large multi-year projects need to be reviewed and revised annually to ensure that they keep up with technological advances and prevent the completed project being outdated and almost inoperable.  IBM's market capitisation today on the Nasdaq is around $166billion, approximately the size of the NHS annual budget and with less employees. Perhaps they could provide infrastructure and service advise based on their own internal connectivity and I'm sure they did not spend 12years to obtain it at a cost of £12.4 billion!

Government really do live in a world of their own with no concept of business acumen or reality, if only they were held accountable by the people to the same extent that shareholders hold businesses accountable, we may actually achieve value for money, in a timely, cost effective manner. Look out America, if you go for Health reforms, consider who will run it, and those hidden costs and data debates!
One way to decide which industries are the leaders in Business Service Management (BSM) is to look at the industries which are most interested in cloud computing. Perhaps that's too much of stretch, but if you go with this assumption for a minute, here's what we get:

   1. Financial services (12%)
   2. Manufacturing (10%)
   3. Business and management services (10%)
   4. Telecommunications and equipment (9%)
   5. Government (7%)
   6. Insurance (6%)
   7. Oil, gas and electric (5%)
   8. Professional/specialized services (5%)
   9. Schools and education services (4%)
  10. Food (4%)
  11. Retail (4%)
  12. Healthcare (4%)
  13. Media (3%)
  14. Chemical and pharmaceutical (3%)
  15. Military and National Security (3%)
  16. Freight services (2%)
  17. Energy management (2%)
  18. Membership organizations (2%)
  19. Commercial physical research (1%)
  20. Other (4%)

The data comes from Thomas Bittman's blog post: "Cloud Computing Inquiries at Gartner".

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