Automation, AI, and Analytics: Reinventing ITSM

IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Dennis Nils Drogseth
Vice President of Research
Enterprise management Associates
Automation, AI and Analytics:
Reinventing ITSM
Valerie O’Connell
Research Director, IT Service and Business Management
Enterprise Management Associates

INDUSTRY ANALYSIS & CONSULTING2 © 2019 Enterprise Management Associates
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Featured Speakers
Dennis Nils Drogseth, Vice President, EMA
Dennis joined Enterprise Management Associates in 1998 and currently manages the
New Hampshire office. Dennis brings several years of experience in various aspects
of marketing and business planning for service management solutions. He supports
EMA through leadership in IT Service Management (ITSM), CMDB systems, as well
as megatrends like advanced operations analytics, cross-domain automation
systems, IT-to-business alignment, and service-centric financial optimization. Dennis
also works over several practice areas to promote dialogue across critical areas of
technology and market interdependencies.
Valerie O’Connell, Research Director, IT Service and Business
Management, EMA
Valerie came to EMA with decades of senior-level experience in the effective marketing
of technology. From strategic positioning with practical go-to-market planning and
compelling messaging, Valerie works with her clients to drive business. She excels at
making the value proposition of complex products clear in crowded markets, and at
equipping sales forces to strike with precision. Valerie has enjoyed many years as an
independent practitioner, serving industry giants such as Microsoft and EMC, as well as
innovative startups.

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Agenda
• Research overview
• ITSM in context
• AI, AIOps, and analytics
• Automation
• AI bots and virtual agents
• Initiatives and use cases AI/analytics and
automation
• Success factors and recommendations
• Enterprise service management (ESM)
• Conclusions
• Questions

EMA research conducted in January 2019
400 respondents
• 50% North America, 25% Europe, 25% Asia
• 34% C-level, 34% IT VP/Director/Manager, 22% IT staff, 10% non-IT staff
Research objectives
From a pragmatic, in-use-today point of view:
• Investigate the relationships between the business demands of digital transformation and
enabling technologies as they converge on the widening discipline of ITSM
• Understand the appetite, adoption, maturity, impact, and near-term plans for automation,
AI/analytics, and ITSM technologies
High-level ITSM findings
• ITSM teams are reinventing themselves through a progressive adoption of AI/analytics
and automation technologies, as well as innovative uses of their ITSM platforms, with
strongly positive outcomes
• The ITSM team is increasingly made of stakeholders well beyond the service desk, which
in turn contributes to ITSM’s perceived positive alignment with business goals/processes
• ITSM is a vital organizational force that is transforming itself and broadening its reach.

Respondents were strongly positive about the future of ITSM
Slide 8 © 2019 Enterprise Management Associates, Inc.
How do you view the future of ITSM in your organization over the next three years?
"I see ITSM as…"
55%
31%
12%
2%
0%
0% 10% 20% 30% 40% 50% 60%
Substantially growing in importance
Somewhat growing in importance
Staying at the same level of importance
Declining in importance
Potentially going away as a separate organization
Sample Size = 400

69% of ITSM budgets increased by 10% or more this year.
Only 12% decreased or stayed the same.
Roughly what was the percentage of ITSM budget increase or decrease
from last year to this year?
6%
9%
22%
32%
14%
10%
2%
0%
0%
0%
0%
3%
0% 5% 10% 15% 20% 25% 30% 35%
Increased 75% or more
Increased 50%-74%
Increased 25%-49%
Increased 10%-24%
Increased less than 10%
Stayed the same
Decreased less than 10%
Decreased 10%-24%
Decreased 25%-49%
Decreased 50%-74%
Decreased 75% or more
Don't know
Column %
Sample Size = 400
• There was an even distribution across company size

IT Executive Suite led in ITSM oversight/coordination
(36%), followed by IT operations at 30% (IT operations,
network operations, and data center)
In your organization, which group has primary responsibility for
overseeing/coordinating ITSM-related capabilities?
36%
20%
11%
6%
6%
4%
4%
4%
3%
2%
2%
1%
0% 5% 10% 15% 20% 25% 30% 35% 40%
IT executive suite (VP or CIO level)
IT operations
IT asset management
Network operations
Engineering/development
Data center
Cross-domain service management organization
Cloud
Service desk/help desk
Customer service organization
Business line management
Call center organization
Column %
Sample Size = 400

IT productivity, cost savings, and increased end-
user/customer satisfaction led as benefits achieved from
ITSM-related technologies
What benefits have you achieved from your ITSM-related technologies?
48%
44%
43%
39%
38%
34%
33%
32%
32%
31%
31%
29%
28%
26%
0% 10% 20% 30% 40% 50% 60%
Increased IT personnel productivity
IT cost savings
Higher customer (end-user) satisfaction
Better collaboration across all IT groups
Improved collaboration between IT and business
Better change controls and visibility
Reduced number of major incidents due to better
visibility/incident avoidance
Reduced mean time to resolve (MTTR)
New or improved cross-organizational services
Reduced unplanned IT work
Increased agent job satisfaction
Reduced number of routine incidents reaching the help
desk (incident deflection)
Reduction in unplanned downtime
Headcount savings
Sample Size = 400, Valid Cases = 400, Total Mentions = 1,950

ITIL is going strong – and adoption is on the rise
Given changes in automation, AI, analytics, and services,
what best describes IT's best practices in the coming 12 months?
62%
34%
3%
0%
0% 10% 20% 30% 40% 50% 60% 70%
Enhanced level of ITIL adoption
Continued use of ITIL
Don't know
Moving to new best practice models
Sample Size = 400

“Enhanced ITIL adoption” correlated with success in
AI/analytics and automation, as well as enhanced use of AI
bots, virtual agents, and ESM
Given changes in automation, AI, analytics, and services, what best describes IT's best practices in the coming 12 months?
by success: How successful have you been in your AI/analytics initiatives to date?
80%
19%
0%
1%
67%
32%
0%
1%
40%
52%
0%
8%
0% 20% 40% 60% 80% 100%
Enhanced level of ITIL adoption
Continued use of ITIL
Moving to new best practice models
Don't know
Extremely successful Very successful Successful/somewhat successful/not at all
Sample Size = 400

AI, AIOps, and Analytics

We asked, “What does AI mean to you?”
1. Machine learning
2. Big data
3. AI bots
4. Integrated automation
5. Virtual agents
6. Analytics specific to business performance
7. Predictive analytics
8. AIOps
9. Behavioral analytics
10. Asset and cost optimization analytics

AI and analytics: What do you actually
have deployed?
• Big data
• Analytics specific to business performance
• Shared AIOps with operations
• Asset and cost optimization analytics
• Workload management or batch analytics
• Governance-related analytics
• Virtual agents
• Intelligent automation
• AI bots

Shared AIOps, incident response analytics, and
governance-related analytics led for top AI/analytic
initiatives
Which of the following is your top AI/analytic initiative based on current deployments?
30%
19%
18%
14%
10%
9%
0% 10% 20% 30% 40%
Shared AIOps (IT operations analytics/digital
operations/advanced event analytics)
Incident response analytics (measuring/improving IT
response efficiencies)
Governance-related analytics (measuring/improving IT
OpEx efficiencies)
Asset and cost optimization analytics
Big data (data lake)
Analytics specific to business performance (such as
revenue, business process efficiencies, etc.)
Sample Size = 400

Top ten drivers for adoption of AI/analytics
1. Improved IT operational efficiencies
2. Cost savings across IT $
3. Digital transformation
4. Cost savings beyond IT $
5. Improved financial optimization of IT $
6. Improved support for IoT (Internet of Things)
7. Improved business/organizational productivity
8. More effective change management
9. Improved levels of knowledge management
10. More effective support for service desk requests

Chief obstacles to deploying and supporting AI/analytic
initiatives highlighted human, technological, product, and
cost/resource issues
What were three major obstacles in deploying or supporting your top AI/analytic initiative?
24%
21%
21%
20%
18%
18%
17%
16%
16%
15%
15%
14%
12%
12%
11%
10%
0%
0% 5% 10% 15% 20% 25% 30%
Resistance to change
Product costs and complexity
Training the ML/AI capabilities
Organizational conflicts within IT
Data management processes and resources
Lack of effective skillsets
Organizational change
Understanding and setting use case priorities
Lack of financial resources
Fear of job loss
Deployment complexity - heavy lift to get up and…
Inconsistent, incomplete, or inaccurate data
Products not fully baked yet
Insufficient headcount
Low level of trust/confidence in recommendations
Lack of resources to support rollout
Other

72% saw a future possibility for ticketless ITSM driven by the
combination of AI/analytics and automation
Do you see a future possibility for ticketless ITSM due to a combination of AI/analytics and
automation technologies?
72%
21%
8%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Yes
Maybe
No
Yes Maybe No
Sample Size = 400

Automation

While 30% have automation in the planning stage and only
4% have no plans, 26% are already at advanced levels of
automation
To what degree have you implemented automation in your organization?
18%
8%
19%
22%
30%
4%
0% 5% 10% 15% 20% 25% 30% 35%
Automation is actively being expanded throughout the
IT infrastructure
Complex processes have been automated
Some multi-step processes have been automated
Simple tasks have been automated
Automation is in the planning phase
Nothing is automated and we aren't planning to
automate anytime soon
Sample Size = 400

Synergies: Those with advanced levels
of automation…
• Had more investments in AI/analytics
• Achieved more benefits from AI/analytics deployments
• Showed more points of integration for their AI/analytics investments
• Were more likely to have AI/analytics drive their automation
• Were further along with ESM in both use cases and time deployed
• Were more likely to view their ESM deployments as “transformational”
• Parallel synergies existed, with those showing more advanced
investments in AI/analytics—mirror images of each other

When it comes to automated actions driven by AI and
analytics, most require some level of human oversight—only
5% don’t allow any automated actions
To what degree does your organization enable automated actions to be taken based on
AI/analytics recommendations?
48%
48%
5%
0% 10% 20% 30% 40% 50% 60%
High: Most of the possible automated actions are
enabled with the option of human override
Medium: Most automated actions are enabled only with
human oversight
Low: We don't allow automated actions except for
proven routines, such as batch processing
Sample Size = 400

Top ten automation priorities
1. IT process automation/runbook
2. Automation in support of IoT
3. Workflow automation combined with social IT
4. Incident resolution
5. Alert-driven notification
6. Cross-IT change management
7. Service request management
8. SecOps/security-related automation
9. Enterprise service management (ESM)
10. Configuration management and infrastructure provisioning

IT cost savings and improved IT Op efficiencies led for
most valuable benefits realized, and improved end-
user/customer satisfaction followed
Which two were the most valuable benefits achieved from your automation investments?
28%
25%
21%
18%
12%
12%
10%
10%
8%
6%
6%
6%
6%
4%
4%
4%
4%
3%
2%
2%
2%
1%
0% 5% 10% 15% 20% 25% 30%
Cost savings across IT
Improved IT operational efficiencies
Improved end-user/customer satisfaction
Improved quality of delivered services
Reduced unplanned IT work
Faster incident and problem resolution
More efficient release management
Faster and more accurate change management
Improved business outcomes for IT services
Improved revenue due to reduced downtime
Improved IT-to-business alignment
Improved business/organizational productivity
DevOps process efficiencies
Superior lifecycle IT asset management effectiveness
Improved compliance/risk reduction
Faster deployment of applications
Able to focus more proactively on ITSM…
Improved ability to optimize cloud
Reduced support tickets/call volumes
Improved SecOps efficiencies
Faster deployment of infrastructure
Freed up existing resources to focus on higher-…
Sample Size = 400, Valid Cases = 400, Total Mentions = 769

Virtual Agents/AI Bots

Only 8% were using neither virtual agents or AI bots, and
35% were using both or didn’t distinguish between the two
Which statement best describes your deployment of virtual agents and/or AI bots?
24%
32%
28%
7%
5%
3%
0% 5% 10% 15% 20% 25% 30% 35%
We are currently using or are in deployment with AI bots
(but not virtual agents)
We are currently using or are in deployment with virtual
agents (but not AI bots)
We are currently in deployment with both virtual agents
and AI bots
We don't make a distinction between virtual agents and
AI bots
We are not using either AI bots or virtual agents
Don't know
Sample Size = 400

Those using both virtual agents and AI bots showed
• Strong ITSM budget growth
• Solid investments in AI and analytics overall
• More strategic initiative/use cases underway
• More advanced levels of automation adoption
• Higher priorities in integrating automation and analytics
• Willingness to let analytics drive automation
• More likelihood of having ESM deployed for more than one year

AI bots showed a wide range of active use cases, with
customer service in the lead
How are AI bots currently being used or planned to be used?
45%
32%
32%
32%
31%
31%
29%
29%
28%
28%
27%
18%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Customer service
Security and compliance concerns
Managing change more efficiently
Availability and performance management
Knowledge sharing and employee self-service
Incident/case management
Asset management
Routine requests (password reset, onboarding, etc.)
Chat without voice
Chat with voice
DevOps needs
Other business outcomes, such as HR or facilities

Initiatives and Use Cases for
AI/analytics and Automation

Integrated operations, self-service, and routine service desk
capabilities led as the top three use cases for AI/analytics
and automation
What is the primary use case that automation and/or AI/analytics is currently supporting in
your organization?
22%
17%
17%
15%
8%
8%
6%
6%
3%
0% 5% 10% 15% 20% 25%
Integrated operations (for superior availability,
performance, and change management)
Self-service capabilities for routine requests and
services
Routine service desk capabilities:
incident/problem/request/change
Integrated asset management/IT financial planning
DevOps/agile initiatives
Enterprise service management (ESM for HR, facilities,
etc.)
Integrated security and operations (SecOps)
Major incident response
Internet of Things (IoT)
Sample Size = 400

Time in deployment for AI/analytics/automation primary use cases
• 57% indicated that they were still in deployment, or had just now been fully
deployed.
• By contrast, only 12% said that they had already been in deployment for two
years or more.
• 16% had been deployed for six months

As enabler of the primary use case:
automation (37%) led AI/analytics (26%) and 36% indicated
a 50/50 split
Is this use case enabled primarily from automation, or from AI/analytics, or from both?
37%
26%
36%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Primarily driven by automation
Primarily driven by AI/analytics
50/50, driven by both
Sample Size = 400

Success Factors and Recommendations

Success rates in AI/analytics strongly paralleled success
rates in automation
• Success in AI/Analytics
• Extremely successful = 32%
• Very successful = 36%
• Successful = 23%
• Somewhat successful = 10%
• Success in Automation
• Extremely successful = 29%
• Very successful = 37%
• Successful = 26%
• Somewhat successful = 8%

There was also a very strong correlation between success rates in
AI/analytics and automation when mapped together
How successful have you been in your automation-related initiatives to date?
by: How successful have you been in your AI/analytics initiatives to date?
75%
24%
1%
14%
71%
15%
2%
12%
87%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Extremely successful
Very successful
Successful/somewhat successful/not at all
Extremely successful Very successful Successful/somewhat successful/not at all
Sample Size = 400

Those who were extremely successful in AI/analytics and
automation were more likely to…
• Show ITSM budget growth above 50%
• Have executive oversight with CIO-level involvement
• Support more service management processes and more
strategic initiatives
• Have more ITSM-related technologies deployed
• Be more advanced in their level of automation
• Show more benefits from their AI/analytics adoptions
• Be more diverse in their use of AI bots
• Be more progressed in their ESM deployments

The three most popular recommendations were education of
users, preparedness for change, and due diligence of
technologies based on unique needs
What are your top two recommendations for going forward with progressive technologies,
such as AI/analytics and automation?
22%
22%
22%
21%
18%
16%
16%
15%
14%
13%
13%
0% 5% 10% 15% 20% 25%
Educate users ahead of time
Be prepared for changes in how your team works and
understand how process-related initiatives impact…
Evaluate technologies, do due diligence, and assess
based on your unique environment and needs
Make sure that you have adequate skillsets before going
forward
Assess what's needed: plan on use case priorities first,
then go ahead with your investments
Ensure that your vendor/supplier is available to provide
you with expert guidance/support
Make sure that the executive suite is on board
Establish cross-silo processes and standards for data
collection, data quality, and data sharing
Put metrics in place to measure your team's
effectiveness in using new solutions
Put metrics in place to measure and quantify your
progress
Socialize your investments and directions with all
relevant stakeholders

Enterprise Service Management (ESM)

87% have ESM at some level of deployment, and only 4%
have no plans
How long have ESM or business process workflows been deployed
from your ITSM platform or team?
46%
41%
8%
5%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
We have been fully deployed for more than one year
ESM is relatively new to our ITSM team (in deployment
now or deployed less than one year)
We are not currently doing ESM, but plan to in the near
future
We have no plans for ESM
Column %
Sample Size = 400

Training, data center utilities/power, and human resources
lead a close pack of ESM initiatives
Which of the following areas does your company's ITSM team currently support,
or have plans for in terms of ESM?
31%
30%
29%
28%
27%
27%
27%
24%
23%
22%
22%
20%
20%
17%
15%
1%
0% 5% 10% 15% 20% 25% 30% 35%
Training
Data center utilities and power
Human resources
Business continuity
Financial services
Supply chain management
Sales/manufacturing
Marketing
Physical security
Employee safety
Building and facilities
Enterprise procurement/purchasing
Transportation/fleet management
Other vertically-specific infrastructure costs (retail…
Legal
None - we do not currently support enterprise services
The areas selected differed in
predictable ways by industry. For
example, manufacturing chose
sales/manufacturing 44% (vs.
27% average), 33% physical
security, 54% supply chain, and
44% procurement

The executive suite leads the drive to ESM, followed by the
ITSM team
What was the most dominant organizational driver for your ITSM team's move to support
ESM?
40%
31%
25%
4%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Our ITSM team drove ESM
We had executive-level pressure in IT to move to ESM
We had strong enterprise executive pressure to move to
ESM
We had strong enterprise grassroots pressure to move
to ESM
Column %
Sample Size = 380

ESM enablers: self-service portal and ITSM as a platform
narrowly led
How is your ITSM organization facilitating ESM?
34%
34%
33%
33%
32%
28%
28%
24%
23%
21%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Users have access to self-service through a portal
ITSM is fundamentally a platform for ticket and request
opening and tracking, but routes to functional areas…
Enterprise workflows are regularly audited for
performance, just like our IT workflows
SLAs for ITSM and ESM are maintained in our ITSM
system, but reported separately
Enterprise stakeholders regularly engage in dialogue
with the ITSM team
We have created unique SLAs for each enterprise
workflow
Enterprise stakeholders engage with the ITSM team on a
quarterly or semi-annual basis
ITSM support for ESM is done on a chargeback basis
Our ITSM solution provider (vendor) is being leveraged
outside of IT
Other organizations adopted ITSM-like functions
(incident/knowledge and request)
% Valid Cases (Mentions/Valid Cases)

Increased ITSM budget, followed by improved customer
satisfaction (CSAT), led as measurable impacts from ESM
initiatives
What were the measurable impacts resulting from your ESM initiative?
44%
41%
38%
37%
37%
32%
29%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Increased budget for ITSM
Improved customer satisfaction (CSAT)
Improved employee satisfaction (ESAT)
Reduced downtime for enterprise services
Improved SLA performance for enterprise services
Improved customer loyalty (net promoter score)
Increased headcount for ITSM

38% viewed the impact of ESM as “transformational”
To date, what has the impact of supporting ESM been on ITSM and IT in terms of
IT's relationship to the business?
38%
57%
48%
31%
14%
1%
0% 10% 20% 30% 40% 50% 60%
Transformational in enhancing IT's position within the
business
Significant in enhancing IT's position within the
business
Meaningful in enhancing IT's position within the
business
Modest in enhancing IT's position within the business
Nonexistent: We have seen no impact on IT's standing
within the business from ESM
Negative: It has created friction between IT and the
business

Most frequent recommendations can be grouped into three
categories
• Organization
• Make sure that the executive suite is on board 18%
• Socialize your investments and directions with all relevant stakeholders 16%
• Be prepared for changes in how your team works and understand how process-related
initiatives impact organizational structure 24%
• Work closely with stakeholders on business workflows, outcomes, and expectations 21%
• Use case
• Assess what’s needed: plan on use case priorities first, then go ahead with your investments
21% (ITSM affiliation: central IT 23%, LOB 12%)
• Evaluate technologies and base your due diligence on your unique environment and needs
24% (ESM maturity: year + 28% new 19%)
• Put metrics in place to measure your team’s effectiveness in using new solutions 18%
• Implementation
• Make sure that you have adequate skillsets before going forward 19% (IT executives 9%)
• Ensure that your vendor/supplier is available to provide you with expert guidance/support
21% (ESM maturity: year + 19% new 25%)
• Put metrics in place to measure and quantify your progress 18% (manufacturing 31%)

Conclusions
• Success breeds success and use breeds more use in all areas:
automation, AI/analytics, ITSM technologies, and ESM
• Advanced technologies have a strong foothold, but remain a wide open
arena for expansion – relatively young market
• As AI, analytics, and automation increasingly cross boundaries,
organizational control and budget for ITSM-related operations and
investments move up the chain of command (CIO most senior level)
• ITSM is a vital organizational force that is transforming through adaptive
reinvention and expanding in both reach and significance (increased
budget, headcount, integrations, functions, and management level)

Dennis Drogseth ddrogseth@enterprisemanagement.com
Valerie O’Connell voconnell@enterprisemanagement.com
Questions?
Check out EMA’s upcoming
report, “Automation, AI, and
Analytics: Reinventing ITSM” at
www.enterprisemanagement.com

Automation, AI, and Analytics: Reinventing ITSM

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