We live in an application economy. We shop in an application economy. Our news, our entertainment, our banking, education, communications, everything is driven by a connected, mobile application-based world that sits in the palm of our hand. The old way of running Service Management won’t enable organisations to deliver the application innovation required at the pace required. Given the critical nature of applications to customers, the demand for services to help support application quality, innovation and availability will grow increasingly urgent. Service Management teams will need to go through a fundamental transformation to quickly adapt to the application economy and enable digital transformation. This presentation covers how we will share how Service Management needs to adapt to the Application Economy by discussing:  What is Service Management today?  What does the Application Economy mean for Service Management  Service Management’s role and relevance in today’s digital climate Sign up for our CA Cloud Service Management Cloud Trial: http://cainc.to/flFkTf

1. Ensuring effective Service Management
in the Application Economy
Jason Pope, Chief Technical Officer ANZ
May 13th 2015

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What is
Service
Management
today?

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ITIL 2011
ITIL is Evolving With The Business
• ITIL Version 1
– Stability and control of IT infrastructure
– IT Infrastructure Management processes
IT
ITIL Version 3
Business
Partner
• ITIL Version 3
Business-IT service integration and value generation
Service Management for business and technology
• ITIL 2011
Increase productivity
Optimize costs
Improve customer experience.
BusinessValue Maturity
ITIL Version 2
Service Provider
• ITIL Version 2
Business-IT alignment
Quality and efficiency of IT processes
ITIL Version 1
Technology
Provider
ITIL 2011

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Process Maps

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Consider this…
We don’t meet
expectations
support center strategic priorities
are aligned
of support organizations feel
pressure to show value to business
and…29%
Support Alignment with Business
86%
Demonstrate Value to Business
Keeping up is
challenging
expect IT budget to decrease or
stay the same
of support centers expect
increase in volume
and…
56%
Maintain Operational Levels
66%
Ticket Volumes
“How IT’s Perceived by Business,” Information Week Reports, October 2012.
“Show Me the Value: Support’s Mandate”, HDI, Copyright © 2013 UBM LLC.
“2012 Practices and Salary Report,” HDI, Copyright © 2012 UBM LLC.

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Creates demands across our business
Leaders Support Teams Employees
I want to deliver value
without over-investing.
I want to be more
productive and respond
to customers “better.”
I want to get
what I need and
get back to work.

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Chaotic Proactive ValueReactive Service
Difficult to adapt to changing requirements
True
SaaS
Custom,
home grown
solutions
Packaged, On-
Premise ITSM
Cloud-Based
Delivery
Operational
Process
Engineering
Service
Delivery
Process
Engineering
Service and
Account
Management
IT as a BusinessTool Leverage

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ExtendUpgradeAdminister
Why the industry is currently inflexible and people change solutions 3-4
years!
AdoptionImplementation
Months
Configuration
Tenant
Customizations
Reporting
Basic
Better
Best
Time to
Value
Specialized
Resources
Cost of
Ownership
TODAY
Weeks
ARS, Java, Custom Business as Usual
Database
Modular, Complex
$

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It isn’t just the experience - Technical Debt
Email
Cost
Old technology
• drives up cost
• pushes users to more expensive channels
• hurts user experience
Web RequestSelf ServiceCollaboration PhoneWalk-UpChat

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It isn’t just the experience
Stuck technology costs the company
10
EmailWeb
Request
Self
Service
Collaboration PhoneWalk-UpChat
No
longer
truly
separate
Cost

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Chaotic Proactive ValueReactive Service
So what do we do to get escape velocity?
True
SaaS
Custom,
home grown
solutions
Packaged, On-
Premise ITSM
Cloud-Based
Delivery
Operational
Process
Engineering
Service
Delivery
Process
Engineering
Service and
Account
Management
IT as a BusinessTool Leverage
Escape velocity!

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Traditional approaches are not effective
SaaS ITSM solutions must deliver on the promise of…
Quality, Time and
Productivity at a
reasonable cost
Value
Rapid Time to Value
Lower Cost of
Ownership
Less Resources
37%
Updating Systems
“Strategies for Project Recovery,” Project Management Solutions, Inc. © 2011.
Projects at risk

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Delivering on the promise of SaaS
User Delight
Flexible & Configurable
Automatically upgraded
Faster Value
Lower Cost of Ownership
Fewer Resources Required

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ExtendUpgradeAdminister
The new service management must focus on the service delivered and
the value to the business
AdoptionImplementation
Months
Configuration
Weeks Days
Business Users < 2 FTE
Tenant
Customizations
Reporting
Automatic
Basic
Better
Best
Inclusive
Time to
Value
Specialized
Resources
Cost of
Ownership
TODAY
CA
Weeks
ARS, Java, Custom Business as Usual
Database
Modular, Complex
$

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Time for new rules for Service Management and
CA is rewriting them!
Leaders
Value for their
investment—quickly
in weeks not
months.
Support Teams
Automate to reduce
redundancy and
drive productivity.
Employees
Modern technology
for the modern
worker delivering
real business value …
fast.

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Fast
Flexible
Powerful
Personal
The new rules of Service Management
“CA Cloud Service Management provides value to my
organization while giving analysts and end users the
online experience they are looking for.”
- Warren McCall, CEO, SCM Solutions

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THIS IS THE
AGE OF THE
APPLICATION
ECONOMY
AND IT’S ALL
ABOUT THE
USERS...
NEW APPS CAN
QUICKLY
MAKE OR BREAK
YOUR BUSINESS

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$153B
Public cloud services market expected
to grow 17.8% in 2014 to $153 billion1
50%
By 2018, more than 50% of B2B
collaboration will take place through
Web APIs2
268BBy 2017, mobile apps will be downloaded
more than 268 billion times3
1 Gartner Forecast: Public Cloud Services, Worldwide, 2012-2018, 3Q14 Update, Ed Anderson, et al, 29 September 2014
2 Gartner Hype Cycle for Application Development, 2014, Thomas E. Murphy, et al, 29 July 2014
3 Gartner Press Release, “Gartner Says by 2017, Mobile Users Will Provide Personalized Data Streams to More Than 100 Apps and Services Every Day” January 22, 2014 http://www.gartner.com/newsroom/id/2654115
- Marc Andreeson
welcome
to the
Application
Economy
Wall Street Journal, Why Software is Eating the World, August 2011
“Software is eating
the world”

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Applications Are Changing the World of Business
SO WHAT’S THE PROBLEM?

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Expectations are Changing
UNPRECEDENTED SPEED EXCEPTIONAL CUSTOMER EXPERIENCE
2014 Vanson Bourne study commissioned by CA Source: Reaching the Top of the Web Performance Mountain
25%
of users will abandon a web
application after just three
seconds of delay94%
of executives face increased
pressure to release apps
more quickly

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Customers are more likely to
experience your brand and
interact with your business
through a software
application than a person

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Sources: “The geeks were right: How to thrive in the Application Economy,”
CA Technologies commissioned research by Nine Rewards of 100 Australian IT Executive in Enterprise organisations, September 2014
2 Big Drivers for new Applications
#1
Customer
Service
75% of
responders
#2
Mobility
68% of
responders

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#1 – Customer Service

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The best apps
further relationships,
build trust
and loyalty …
‘customer service’

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3 seconds to work
or 33% of customers
will not use
your app

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And just the tip of the iceberg of the Internet of Things

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business
functions
• Focused on what matters to the company
• Starts with business value, then links to customer benefits
• Company defines relationships and value
• Technology dictates level of customer-centricity
customer
product
Traditional [inside-out] Approach:
• Focused on what matters to customers
• Starts with customer value then links to business benefits
• Customer-defined relationships and value
• Customer-centric culture drives technology
customer
product
Customer-centric [outside-in] Approach
business
functions
Meeting today’s expectations requires a new approach

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Software IS the business

33. 33 © 2014 CA. ALL RIGHTS RESERVED.
Service
Management’s
role and
relevance in
today’s digital
climate

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Continuous Change
Knowledge is fluid
Self-service
Downtime
Google

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Empower the consumer context & location
Empower the analyst to deliver value
Collaboration, experts, peers, etc
Proactive Service Management, Automated
Rapid change
Supportive Frameworks and drive value

36. 36 © 2015 CA. ALL RIGHTS RESERVED.
Are you using frameworks as a standard?
Why are you using what you are using?
Are you focused on the process and not the business outcome?
Are you adopting continuous delivery?
Shadow IT
DevOps is changing the way we work

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Application Economy Leaders roll out apps that are …
DELIVERED
RAPIDLY RESILIENT
HIGH-
QUALITYAGILE

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Addressing Conflict and Cultural Hang ups
RESILIENTAGILE
Agile, Lean ITIL, Process, SLA’s
Bring features/products to market faster
Public cloud, Open Source,
Infrastructure-as-code
Ensure availability; MTBF
Support Legacy and Proprietary
Apps/Infrastructure
Development Operations

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DevOps – People and Process
Shared responsibilities, metrics and goals – business-driven
Capture and convert tribal knowledge;
constant collaboration and feedback
Learn from failure; trust in each other, technology and process
Development Operations
INNOVATION STABILITY
STREAMING RELEASES
EASY SECURITY
AGILE PLANNING
FEATURE SIMPLICITY

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Agile development “the norm”
Potentially
shippable
product
increment
Product backlog client prioritizes
Backlog
items
1 - 4
weeks
24
hours
Sprint
backlog

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Collaborative Service Delivery
PROJECTTIMELINE
delivery
deadline
Operational
Input/Awareness
Stable & in
production
Requirements Scrum/Sprint System Test Deployment
Architecture Unit Test Acceptance

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Collaborative Service Delivery
PROJECTTIMELINE
delivery
deadline
Operational
Input/Awareness
Stable & in
production
Requirements Scrum/Sprint System Test Deployment
Architecture Unit Test Acceptance
Ongoing Operational
Input/Awareness
Stable & in
production
delivery
deadline
Requirements Scrum/Sprint System Test Deployment
Architecture Unit Test Acceptance

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Improved business & IT agility
Better user experience
Value of integrated DevOps & ITSM
Better compliance, fewer
errors
Cloud agility and efficiency
Efficient, continuous delivery
Faster response to
stakeholders

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Good customer service is not an option
Measuring the ‘end-user experience’ is critical
Services are shifting to “the cloud”
App-lification is on the way!
‘Agile’ development & operations critical
Managing “apps” mandates a change in approach
Transformational change is happening!

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Collaborative Service Delivery with Service ManagementPROJECTTIMELINE
delivery
deadline
Operational
Input/Awareness
Stable & in
production
Requirements Scrum/Sprint System Test Deployment
Architecture Unit Test Acceptance
Ongoing Operational
Input/Awareness
Stable & in
production
delivery
deadline
Requirements Scrum/Sprint System Test Deployment
Architecture Unit Test Acceptance

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47. 48 © 2014 CA. ALL RIGHTS RESERVED.
For More Information
To learn more about Management Cloud,
please visit:
http://cainc.to/flFkTf
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Management Cloud