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Service Catalog Building a Business Case Barclay Rae Global Head of Services

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Agenda <ul><ul><li>Service Catalog – What is it? </li></ul></ul><ul><ul><li>What are the Benefits? </li></ul></ul><ul><ul><li>Building a Business Case </li></ul></ul><ul><ul><li>Going Forward </li></ul></ul>

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Axios Systems Timeline Windows Web Web 2.0 Green-Screen Axios founded assyst Classic launched assyst Enterprise launched Entry into the US market Axios ranked #1 vendor in HDI 'Customer Experience' report Expansion into Canada Axios retains #1 vendor ranking in HDI 'Customer Experience' report assyst launched on Java architecture Further expansion in the US, Europe and entry into Asia Pacific Axios awarded Software Company of the Year First in the world to achieve BS 15000 certification Entry into Middle East and Africa The number of assyst end-users tops 10 million Axios awarded Software Company of Year (again) Axios rated #1 vendor for 3rd time in succession in HDI 'Customer Experience' report Expansion into Russia, Eastern and Southern Europe and South America Axios wins International Excellence Award Expansion within Middle East ITIL V1 ITIL V3 ITIL V2 assyst 8 Launched US Expansion European expansion begins assyst 9 Launched Service Catalog SaaS 1988 2005 1990 1995 1997 2000 2001 2003 2004 2006 2007 2008 2009/10

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Service Catalog – What is it?

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The Service Catalog This is a Service Catalog?

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The Service Catalog <ul><li>It tells customers about services: </li></ul><ul><li>What they cost </li></ul><ul><li>When they are available </li></ul><ul><li>How long they can be used </li></ul><ul><li>How to get them </li></ul><ul><li>Who to call if you need support </li></ul><ul><li>What they are like </li></ul><ul><li>The warranty should they fail </li></ul><ul><li>Even some photos!! </li></ul>

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User Request View

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Service Catalog – From Service Definition to Service Fulfillment

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Service Value Management and ITSM CMDB Service Catalog IT components and infrastructure Each business service or process is defined as a supply chain of IT components, taken from the CMDB The CMDB holds information on all IT infrastructure and components, and their relationships IT Intelligence Business Intelligence IT business services

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Service Catalog Hierarchy

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Service Catalog Hierarchy – Non-IT

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Service Catalog Hierarchy – Non-IT

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Service Catalog Elements <ul><li>Elements: </li></ul><ul><li>User Request Catalog </li></ul><ul><li>For the IT end-user Self-service request fulfillment </li></ul><ul><li>Similar to online shopping experience </li></ul><ul><li>Business Service Catalog View </li></ul><ul><li>For the business customer </li></ul><ul><li>In business terms </li></ul><ul><li>Specific non-IT information </li></ul><ul><li>Technical Service Catalog View </li></ul><ul><ul><li>For the IT provider </li></ul></ul><ul><ul><li>Technical and supply-chain details </li></ul></ul><ul><ul><li>Component level service data </li></ul></ul>

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What are the Benefits?

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Service Catalog Benefits <ul><li>So, what are the benefits? </li></ul><ul><li>Reduction in Operating Costs </li></ul><ul><li>Quality and Efficiency Improvements </li></ul><ul><li>Relationship/Communications Benefits </li></ul>

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Benefits – Cost Reduction <ul><li>Reduced cost of a standard request between 20% and 40% </li></ul><ul><li>Reduced cost per non-standard request between 20% and 40% </li></ul><ul><li>Reduced/eliminated cost of manual errors and re-work </li></ul><ul><li>Reduced impact on the Service Desk calls for requests </li></ul><ul><li>and chasing </li></ul><ul><li>Optimized procurement costs through Demand </li></ul><ul><li>Management and reporting </li></ul>

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Benefits – Quality and Efficiency <ul><li>Improved delivery time for standard requests </li></ul><ul><li>Improved delivery time for non-standard requests </li></ul><ul><li>Reduced administration and intervention of standard requests </li></ul><ul><li>Opportunity to charge and recover service costs </li></ul><ul><li>Improved availability (24x7) for logging and tracking </li></ul><ul><li>requests </li></ul><ul><li>Capability to increase request workload without impact </li></ul><ul><li>on resources </li></ul>

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Benefits – Quality and Efficiency <ul><li>Capability to manage non-IT processes </li></ul><ul><li>Opportunity to recover/share some costs with other non-IT </li></ul><ul><li>departments for requests </li></ul><ul><li>Opportunity to resolve cross-department issues with supply </li></ul><ul><li>chain management and reporting </li></ul><ul><li>Opportunity to manage IT services end-to-end and </li></ul><ul><li>monitor service availability </li></ul><ul><li>Opportunity to charge IT services end-to-end </li></ul><ul><li>Opportunity to manage multi-tenancy services and SLAs </li></ul>

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Benefits – Relationships/Communications <ul><li>Improved customer satisfaction ratings </li></ul><ul><li>Improved image and engagement between IT and </li></ul><ul><li>the business </li></ul><ul><li>Improved transparency of IT processes </li></ul>

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3 Steps to Building a Business Case

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3 Steps for Building a Business Case <ul><ul><li>Define a business-based service strategy </li></ul></ul><ul><ul><ul><li>Work with customers to understand their service expectations and priorities </li></ul></ul></ul><ul><ul><ul><li>Define the IT business services </li></ul></ul></ul><ul><ul><ul><li>Use workshops for common understanding </li></ul></ul></ul><ul><ul><li>Define the IT service ‘supply chain’ </li></ul></ul><ul><ul><ul><li>Define and design the services and IT components required </li></ul></ul></ul><ul><ul><ul><li>Build the Service Catalog </li></ul></ul></ul><ul><ul><ul><li>Review the efficiency and cost of key services </li></ul></ul></ul><ul><ul><ul><li>Identify areas for improvement </li></ul></ul></ul><ul><ul><li>Find the value </li></ul></ul><ul><ul><ul><li>Build an improvement plan with business objectives and costs </li></ul></ul></ul><ul><ul><ul><li>Business case and ROI over 2/3 years </li></ul></ul></ul><ul><ul><ul><li>Build a practical program to implement </li></ul></ul></ul><ul><ul><ul><li>Get people on board </li></ul></ul></ul>

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Building a Business Case CUSTOMERS What IT services are key to you? Key people Key systems Key departments Key times/targets When do you need them? How quickly do you need them restored? What support information do you need? What reviews do you need? IT SERVICE PROVIDER What IT services do you provide? Infrastructure Networks Applications Service/Help Desk Procurement Projects What are your resource levels? 3rd party contracts? What levels of service can you provide? SLM PROJECT Planning Workshops Negotiation Facilitation Documentation Build Service Catalog Set up reporting Set up review mechanisms Plan full implementation Ongoing support as needed

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Business Case Example No. of users x requests per year x Service Desk staff time per request x loaded staff cost Service Desk annual costs: Service Desk cost of handling requests No. of requests x elapsed delivery time x cost per (user) unproductive time Cost of unproductive time: No. of human interactions x average time per interaction x no. of requests x loaded staff cost Total intervention cost per year: Cost per non-standard request No. of requests x elapsed delivery time x cost per (user) unproductive time Cost of unproductive time: No. of human interactions x average time per interaction x no. of requests x loaded staff cost Total intervention cost per year: Cost per standard request

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ROI 17 316,450 949,350 772,900 346,450 -170,000 Net Cost/Benefit 100,000 300,000 60,000 70,000 170,000 Project Costs 416,450 1,249,350 832,900 416,450 0 Savings Expected NPV Annualized Total Year 3 Year 2 Year 1 Summary of Expected Savings & Project Costs

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Going Forward

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Going Forward <ul><ul><li>Use the Service Catalog to implement SLAs </li></ul></ul><ul><ul><li>Develop and automate integrated ITIL processes </li></ul></ul><ul><ul><li>Build business-based reporting and monitoring systems to deliver value-based services </li></ul></ul><ul><ul><li>Use the power of tools to deliver CMDB and Service </li></ul></ul><ul><ul><li>Catalog functionality and automation </li></ul></ul><ul><ul><li>Use a pilot and phased approach for service and SLA </li></ul></ul><ul><ul><li>implementation </li></ul></ul><ul><ul><li>Get the right team and get started… </li></ul></ul>

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Basic implementation Strategy workshop Design - workshop & build Training Build services in Service Catalog Process development Publish and review

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Service Catalog Workshops <ul><li>Take individuals and organizations in 1 day from a standing start to practical action. At the end of these sessions, participants will: </li></ul><ul><ul><li>Have common awareness and understanding of Service Catalog concepts, practicalities and business value </li></ul></ul><ul><ul><li>Have started to define business services – high level catalog </li></ul></ul><ul><ul><li>Be clear about the issues and how to deal with them </li></ul></ul><ul><ul><li>Have confidence about how to proceed </li></ul></ul><ul><li>The workshops are a great way for an organization to galvanize themselves into starting a Service Catalog. </li></ul><ul><li>They provide a combination of practical education and awareness, plus interactive sessions on how to achieve success. </li></ul>

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5 Top Tips for a Service Catalog <ul><li>Carry out a Service Catalog workshop </li></ul><ul><li>List the dependencies of each service </li></ul><ul><li>Decide usage parameters </li></ul><ul><li>Start with a reasonable number of services </li></ul><ul><li>Make sure you know your requirements before investigating </li></ul><ul><li>automation tools </li></ul><ul><li>From Sharon Taylor White Paper – Service Catalog: 5 Top Tips </li></ul>

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Any Questions? Axios Systems Details: www.axiossystems.com [email_address] http://twitter.com/axios_systems http://www.servicecatalogblog.blogspot.com Service Catalog Resources: Sharon Taylor Webcast Sharon Taylor White Paper Webcast Series: 03/14/10 Designing Your Services Within A Service Catalog 04/21/10 Rapid & Relevant SLAs: Integrating Service Catalog With Your Business 05/19/10 Service Catalog Reporting: Step Your Metrics Up A Gear More information can be found on the Axios Systems website. Information on the assyst Service Catalog can be also be found on our website.