Increasingly, physical assets are being transformed into digitally aware, smart assets that can receive and emit data and connect with one another, allowing people, systems and objects to communicate and interact with each other in entirely new ways creating opportunities for smarter, differentiated services and products.
As the world becomes more intelligent, instrumented and interconnected, designing and delivering the systems and application software for innovative new products and services becomes more and more complex.
For example, today’s cars contain a 100 million lines of code that are connected to the dealer, to a smart traffic system, to an insurance provider, and to a smartphone, which alone could run 100,000s of new applications.
The complexity of these systems of systems has exploded overnight as every single service and interaction between the multiple systems needs to be managed, monitored, and maintained across the entire service lifecycle.
Current models of design, development, operations, and deployment do not scale and are not cost effective. In addition, there is a huge gap between design, delivery, and operations, inhibiting the efficient delivery of services.
Both development and operations see a number of challenges in their IT and product delivery organizations:
70% of budget locked in maintenance
50% of applications rolled back
30% of project costs due to rework
85% of computing capacity idling
Integrated Service Management—which includes Rational and Tivoli software--helps bridge the gap between software development and operations teams. It provides integration of data and workflows across architecture, development, testing and operations software. It integrates best practices including ITIL and IBM assets for SOA, Development and IT Operations to accelerate time to value. Integrated Service Management helps organizations:
Identify required changes and resolve customer issues in less time
Reduce system downtime and repair costs
Limit risk exposure by providing better visibility to change impact
Featured products include: Federated asset management.IBM Rational Asset Manager helps architects and operations with fast problem resolution as the single catalog of known software assets, such as patterns, past change requests, and in-production services and products. Federation with IBM Tivoli Change and Configuration Management Database simplifies deployment with automated synchronization and reduces data duplication, allowing only secure proven assets and services into production environments.
Lifecycle process automation. Accelerate the development, test, and deployment cycles; reduce operational risk; and improve audit posture. Rational Asset Manager catalogs templates and deployment reference architectures tailored by industry, which invoke the build-test-deploy workflows resulting in greater consistency, predictability, and faster time to market. IBM Rational Build Forge®, IBM Rational Automation Framework for WebSphere®, and IBM Tivoli Provisioning Manager provide an automated test and deployment workflow reusable across application and data center provisioning environments significantly reducing the manual effort in test and build set up and tear down.
Attend Innovate2010 and to learn more about Integrated Service Management for Design and Delivery. Register today.
Al Zollar, General Manager of Tivoli Software, will be attending CIOsynergy, May 6, 2010. In addition to networking with CIO’s from multiple industries worldwide to exchange insights and discuss solutions for the future, Al will share his thoughts about the emerging Smarter Planet and how it is changing the role of the CIO.
Some of the insights Mr. Zollar will be sharing come from the CIO study IBM conducted in 2009, based on surveys of more than 2,500 CIOs.
The CIO study underscores the fact that the role of the Chief Information Officer is changing dramatically. In addition to being IT experts, today’s most successful CIO’s are also business leaders who are actively engaged in setting strategy, enabling flexibility and change, and solving business problems, not just IT problems.
As the lines between business and IT blur, CIO’s recognize the critical role service delivery plays in how their companies do business and generate revenue. And, as the world becomes more instrumented, interconnected and intelligent, the way services are designed, delivered and managed is rapidly changing too.
Physical assets are being transformed into smart, digitally-aware assets that can receive and emit data and connect with one another, allowing people, systems and objects to communicate and interact in entirely new ways.
As a result of the interconnection of these instrumented and intelligent devices, great breakthroughs in service innovation are creating new opportunities for people and businesses worldwide.
With these new opportunities also comes increased complexity and risk. And this puts new requirements on our business and technology infrastructures.
CIOs are faced with important objectives that often seem to clash: How can we support the introduction of new services while avoiding the disruption of existing services? How can I reduce costs while improving services? How will I balance the need to influence business strategy with the need to provide top-notch IT support?To respond to these conflicting objectives, successful CIO’s are blending three pairs of roles that seem contradictory, but are actually complimentary. At any given time, a CIO is:
An Insightful Visionary and Able Pragmatist, whose focus is making innovation real
A Savvy Value Creator and Relentless Cost Cutter, whose aim is increasing the ROI
A Collaborative Business Leader and Inspiring IT Manager, whose mission is to expand the business impact of IT
Integrated Service Management can help CIO’s achieve their dual focus of IT expert and business leader. Integrated Service Management helps the:
Insightful Visionary and Able Pragmatist make innovation real by simplifying and streamlining IT processes through technologies like automation and monitoring, giving them more time to focus on developing the intelligent infrastructures of tomorrow.
Savvy Value Creator and Relentless Cost Cutter use process automation to reduce the need for human oversight and virtualization to keep assets running at optimal levels, automatically adapting as business demands change, creating a savvy, cost-efficient IT infrastructure.
Collaborative Business Leader and Inspiring IT Manager expand the impact of technology by leveraging automation capabilities that help develop and prepare for the strategic business initiatives of the future.
We’ve been talking a lot at IBM about how we’re seeing the coming of age of a whole new generation of intelligent systems and technologies—more powerful and accessible than ever before.Our planet is becoming more intelligent, interconnected, instrumented, and smarter day by day.
Increasingly, physical assets are being transformed into smart, digitally-aware assets that can receive and emit data and connect with one another, allowing people, systems and objects to communicate and interact in entirely new ways. The ability to interconnect smarter products and information technology is making it possible for industries to deliver new, innovative services to customers—smarter services which fundamentally change the economics of delivery services.
For example, smarter energy services leverage new smart meter technology to better manage energy distribution across the grid. Smarter energy service has resulted in a 14% reduction in CO2 power plant emissions and reduced homeowner costs up to 10%. Smarter traffic service leverages smart tolls and communication systems to better manage traffic flow, resulting in 20% less traffic, a 12% drop in emissions.
Underpinning these smart business services is a Service Delivery Chain that must be aligned and integrated across processes, roles, and assets.
Integrated Service Management provides a holistic approach to designing, managing and delivering smart services. It connects processes, roles and assets together making everything occur in a seamless flow- A customer places an order, the system checks inventory, delivery gets scheduled, inventory is replenished; to quickly pulling together and making sense out of any kind of information and data;. to finding and fixing complex problems with little or no human help; to making collaboration a fundamental part of how work is done; to creating an infrastructure that helps reduce costs, improve service and manage risks.
While this article has been posted numerous times on Twitter and the like, I felt it was worth a post here on the Service Management blog in case folks missed it.
In particular, it's worth noting how IBM Software Group follows the Glengarry Glen Ross (IMDB) mantra of, "Always be closing."
By that, I mean that we continue to look at the market and the requirements of our customers, and we continue to innovate how we build our products, how we manage internally and how we do business.
We rest. But not much... :-P
Senior Vice President and Group Executive Steve Mills said it best in this article:
"Businesses today want technology to solve their business problems and make them leaders within their own industries. In response, we have been moving our middleware portfolio into new, higher-value opportunities, growing our core capabilities, strengthening our portfolio and building solutions that support IBM's Smarter Planet agenda. Now we have the opportunity to take advantage of our middleware leadership and differentiated offerings to accelerate the growth of our business. By better aligning our organization to marketplace requirements, we can focus across our broad portfolio more effectively, ensure the right levels of investment to grow our business exponentially and deliver new levels of innovation to our clients."
Later in the article, Stephen Stokes an analyst at AMR Research said:
"This is the most significant organizational transformation in IBM's history. They're setting themselves up to really win big in the new economy."
Our customers and the market will ultimately decide the outcome, but I would agree with Stephen and think we're positioned FTW on this one.
Tiffany Winman interviewed Judith Hurwitz, president of Hurwitz & Associates, at Pulse 2010.
In the interview, Judith talks about how customers are looking at both internal and external clouds as a way to optimize their use of IT technology from a real business perspective.
One of the initial areas customers are looking at implementing Cloud is test and development. Rather than investing in new servers and tools, it makes economic sense to use a Cloud infrastructure for pilots. Plus when you give developers temporary resources, you often don't get them back!
Check out this podcast to hear more of Judith Hurwitz's thoughts on Cloud computing.
At Pulse 2010, my friend Cathy and her team put together an awesome little video demonstration of their new real time asset location solution for the Healthcare industry. The solution uses Maximo software to monitor and manage patients, staff and physical assets in a hospital. Check it out:
Big Blue said on Tuesday that it will license its Tivoli Netcool/Ominibus and Network Manager technology for Junos Space. The pact was announced during IBM's Pulse 2010 conference in Las Vegas and Juniper's Financial Analyst meeting in San Francisco.
Our partners are one of the most valued assets IBM has, both to the company itself and more importantly to our customers. Our partners carry the value of our integrated service management solutions to our customers and I am pleased that Juniper is now a part of our valued partner ecosystem.
If I had a penny for every time the word “Pulse” has been said around the IBM offices over the past month…I’d have a lot of copper!*
Seriously. “Pulse fever” is in full effect. It’s happening right now. As I write this, our customers, our valued business partners and many of my colleagues have converged on Las Vegas and are having a service management jam fest that makes Woodstock look like band practice in some dude’s basement on a Wednesday night.
So, one of the things that I have been working on is compiling the new and exciting announcements that are happening in and around the event.
We can start with the post Tiffany “Lois Lane” Winman's wrote on the Pulse conference community blog about the Keynote featuring Tivoli General Manager Al Zollar and former Vice President Al Gore.
The following are some of our announcement highlights as well as some helpful links. Please feel free to post comments on this blog.
Integrated Service Management This is something that the entire IBM team has been working on for quite some time. Kathleen Holm discussed this yesterday and the only thing that I would add is that it is an exciting time to be working in service management. Companies such as IBM are helping customers expand their capabilities outside of the confines of the data center and assisting them all of their intelligent assets. Integrated Service Management is much like the “web 2.0” of service management (but without the funny t-shirts), and IBM continues to be in a leadership position in this space.
Intelliden As you may have read last week, the IBM Corporation was proud to announce the acquisition of Intelliden, a leading provider of intelligent network automation software. Pulse is a great way to welcome our new IBM brothers and sisters to be a part of our Integrated Service Management solution, and looking at what they have achieved so far with Network Change and Configuration Management (NCCM) I know that they are going to be a valuable contribution to our customers and to the IBM company.
When In Austin Or La Gaude, Visit Our Solution Experience Labs If you are a customer and want to see our Smart Grid solution, there are two labs that you can go to; one here in Austin, TX and the other in La Gaude, France. The Smart Grid solution is an end-to-end Energy and Utilities lab environment with a focus on Advanced Meter Management to help customers address security challenges.
Smarter Buildings With Our Partners, Johnson Controls Above, I discussed the press releases we did around smarter buildings and facilities with some of our customers. In addition to those, Todd Watson has a great post about what IBM is doing with Johnson Controls to create smarter buildings. The long and short of it is that IBM is working with Johnson Controls energy efficiency building technology to provide advanced business analytics to help our customers address inefficiencies (press release).
Ricoh Intelligent Device Management Todd also discussed our announcement with Ricoh. It's “…an advanced device and printing management system which infuses office devices with real-time tracking and monitoring to help firms significantly reduce their print-related costs, improve service and cut back on carbon footprints.” (press release)
OPAL The Open Process Automation Library (OPAL) are some great “ready to deploy” solution integrations and references that extend our software’s “out of the box” deployments. The interface to the website is smooth, easy to search and best of all there are now 1,800 entries. If you are a customer, you gotta check this site out.
Tivoli Security Information & Event Management: Version 2.0 provides customers with a single integrated product for insider threat, audit and compliance management, and reporting. New features can be found in the announcement letter.
Tivoli Role Modeling/Management Open Beta Program Since we’re talking about security, I should also mention that we currently have an open beta program for two exciting products; IBM Tivoli Security Role Modeling Assistant and the IBM Tivoli Security Role Management Assistant. Details on the solution and the beta are on the IBM website.
IBM Remote Managed Infrastructure Services (RMIS) A service from IBM that assists customers with planning, implementing, configuring, testing, and basic skills instruction for selected IBM Server and Storage technology. A highly skilled IBM technical specialist can help customers implement selected server and storage products remotely (which is pretty cool, right?) (announcement letter).
IBM Managed Security Services A new IBM service that addresses security concerns by managing computing policies at the gateway (announcement letter).
That’s all for now (as if that’s not a lot already). For those at Pulse, say hello to my colleagues. End of line.
* Actually, I wouldn’t have much copper at all. The US cent piece (aka “penny”) is composed of 2.5% copper and 97.5% zinc (US Mint)
In his keynote address yesterday, Al Zollar talked about how customers are leveraging Integrated Service Management. Capital Region of Denmark in Copenhagen, is in the process of leveraging Integrated Service Management to track missing assets, improve maintenance schedules and get their company back on track.
Capital Region of Denmark is a conglomerate of hospitals with data distributed across three different storage tiers and four sites, with an online disk capacity of 500 Terabytes and backup and archive data exceeding 1.5 Petabytes.
They have solved their storage complexity issues with Integrated Service Management and are managing their entire storage infrastructure with only four people.
He also talked about how the U.S. Air Force is leveraging Integrated Service Management. The U.S. Air Force defense and intelligence network manages the operations of nine major commands, nearly 100 bases, and 700,000 active military personnel around the world. They are leveraging Integrated Service Management solutions to design and deliver a cloud infrastructure with unprecedented levels of security and resiliency.
It's not just a vision for the future--it's happening now. Integrated Service Management can help your company get past the complexity and risk you deal with on a daily basis.
In his keynote today, Al Zollar described the opportunities and challenges presented by a more instrumented, interconnected and intelligent world. The proliferation of smart devices presents new opportunities to deliver new innovative services- services that wouldn’t have been dreamed of just 10 years ago. These new smart devices also add new levels of complexity that is growing due to the number of new devices and connections added each day, and skyrocketing numbers of security threats and compliance regulations.
Al Zollar outlined examples of increased complexity in a number of industries i.e. an electric company dealing with smarter meters, regular old school meters, transmission insulators, servers, and turbine buckets; a conglomerate of hospitals in Copenhagen managing data distributed across three different storage tiers and four sites with online disk capacity of 500 Terabytes and backup and archive data exceeding 1.5 Petabytes; and the U.S. Air Force managing the operations of nine major commands, nearly 100 bases and 700,000 active military personnel around the world.
He then posed the questions, How do you overcome all of this complexity? How can you possibly see everything? How can you manage and secure everything? How can you increase speed while reducing cost?
The answer—Integrated Service Management that provides the software, best practices and expertise needed to manage infrastructure, people and processes—across the service delivery chain—in the data center, across design and delivery, and tailored for specific industry requirements.
He then went on to explain how Integrated Service Management contains service architectures tailored by industry like the smart grid for energy, or electronic medical record systems for healthcare.
It has lifecycle management bridging workflow across line of business, enterprise architecture, development and testing, and IT and business operations to speed delivery of products and services and ensure continual improvement.
Integrated Service Management also includes service dashboards that allow all audiences—from executives and business operations to IT managers—to see the service and gain insight into service health.
He closed by someone needs to be the thought leader in your organization...and that someone is you! Integrated Service Management can help you achieve that goal.
There are many great reasons to attend Pulse 2010- you can see real-world demonstrations of the newest service management solutions, you can hear about strategies and product roadmaps that can help you chart your roadmap for success, and you can get free-certifications and hands-on instruction in on-site labs. These are all great reasons to attend Pulse 2010, but I would like to focus one that often gets overlooked--networking with people not like you.
Pulse gives you the opportunity to attend tracks tailored to your specific area of focus and network with people doing work like you do. While there is a great deal of value in networking and sharing ideas with people whose roles are similar to yours, there may be even more value in talking with people who don’t do what you do.
What would happen if CEOs, service providers, IT professionals, plant managers, facilities managers, VPs of Operations, security administrators, and storage managers talked with each other? What kinds of solutions and ideas would emerge?
For true innovative thinking to occur, reframing challenges and understanding different points of view is key. While it’s easier to stay in your comfort zone and talk with people who speak your language, the opportunity to talk with people from other industries or from your industry but with roles different than yours may be one of the one of the best ways to gain new insights, reframe the challenges you are facing, and think outside the box.
Pulse 2010 gives you the opportunity to do just that. It offers you the chance to network with industry leaders and a broad audience of users and partners who may have different takes on service management—ones that can help you solve existing problems more efficiently, develop new services, or find new ways to accelerate growth and gain competitive edge.
Very good insights, Ivor. Predeterminiation and zealotry are two
human tendencies to constantly keep in check- and that's easier
said than done.
A quote by George Bernard Shaw cam to mind as I read your blog:
“The only man who behaves sensibly is my tailor; he takes my
measurements anew every time he sees me, while all the rest go on
with their old measurements and expect me to fit them”
Thanks for sharing your thoughts with us. Looking forward to your
insights in 2010!
IBM is offering an IT service management simulation event in six cities across the U.S. The IT Service Management Simulator is designed to give participants--C-level professionals, executives and line managers from business and IT, IT process owners and ITIL and service management project leaders--a hands-on service management experience.
Attendees will be given the chance to participate in a simulation game where they experience first-hand what it’s like to run a fictional logistic organization faced with real world IT challenges. They will gain a deeper understanding of the tangible impacts IT process and service management have on an organization that will help them determine how best to move forward with their own service management initiatives.
The IT Service Management Simulator events will be offered in the following locations on the dates indicated below:
Brian Bryson is the lead for Pulse 2010 track, Quality Management for Applications & Services. I talked with him to find out what kind of proposals he is hoping to see and I’ve included his comments below.
Re: Content Any type of content that addresses the federation or unification of development and operations teams would be great. We want to hear about what organizations have done to bridge the gap between these teams.
We believe there are great gains to be had in better aligning development, testing and operations i.e. better quality and faster delivery of new products and services, faster problem resolution and improved business flexibility. We’re interested in presentations that talk about:
Product integrations and how to streamline the workflow between test inventory, discovery, and provisioning
Tools and processes to accelerate testing--Development has depended more on manual processes while operations has been using automated tools and processes. We hope to see presentations that talk about how clients have automated or plan to automate processes in order to get software and services out faster, resolve problems faster and get operations to work better with development—anything that automates, improves, and accelerates the process from build and testing to running and managing applications.
Technologies, strategies, tips and best practices that help development and operations work together to deliver services and resolve problems faster
This is the first time Rational has had significant presence at Pulse, so we’re looking for a broad array of development topics—case studies, tips and tricks, process and strategy, and overview presentations—that will help operations professionals better understand and appreciate the challenges of software and service development. This kind of understanding will help create tighter integration across teams which will result in faster repair and replacement cycles, higher quality services, and faster delivery time.
Re: Who are good candidates for submitting abstracts? We are looking for a good mixture of customer presentations. That’s our number one priority. The customers are living with and addressing the daily challenges of service delivery and upkeep and we would like to hear how they have tackled those challenges.
Business partners also are great candidates. They are out there working with the tools and forming the bridge between IBM and the customer. They have a great depth of experience and a unique perspective. We would like to hear more about the challenges they have addressed.
We would also like to hear from the developers behind the tools. This is a great opportunity to connect the customers with the people building the tools to share information and ideas that will help make the tools better.
Re: What makes a good presentation What I think makes a great proposal is being able to say up front, “At the end of this presentation, the audience will walk away knowing this.”
A gold star presentation tells the before and after--here was our situation, here’s what didn’t work, here’s what we did, here are the measured net results. It wraps the story up with quantifiable proof i.e. it took two weeks less to produce a patch fix, or the cycle time for new applications was reduced by 20%.
A short, well structured presentation with a clearly stated purpose or exit criteria is what we’re looking for.
Re: Benefits of submitting an abstract for Pulse Just being present in community of practitioners-- developers, partners, clients, people using the tools—is a huge benefit. Speaking invites collaboration. When you present, you get a seat at the table. It improves your stature in the community and you get feedback from your peers, industry experts and the developers behind the tools—and, as you all know, it never hurts to have the Email address for the guy who developed the tool you are using!
Matt Holitza is managing the Pulse 2010 track--Change Management for Applications and Services. I talked with him about the kinds of proposals he would like to see and have included his comments below.
What are some hot topics in the area of Change Management for Applications and Services? We’re looking for presentations that show how consolidation of change management across development and operations can allow teams in both organizations to collaborate together to rapidly produce high quality products and services.
We’d also like to see stories about solutions that improve automation of application deployment to help support more rapid, less error-prone delivery of new applications.
In addition, we hope to include presentations that provide insights about application and service development. The Pulse audience will be primarily made up of operations professionals. The more we can educate and share information about development best practices, the easier it will be to build bridges with operations. We would like to see Pulse attendees go home and talk about how to improve alignment across development, test and operations to simplify the deployment of high-quality products, applications and services.
What are the benefits of speaking at Pulse? The benefits of speaking at Pulse are many. Sharing information with your peers is invaluable—not only will you enhance your profile with your fellow practitioners; you will also gain insights about changes processes and solutions that will help you more effectively react to customer needs and deliver better quality software. In addition, you will hear first hand how automation can help you improve the efficiency of team and speed time to market. You will also receive a full conference pass ($1,995 value).
Who would make a good candidate? We hope to hear from customers, partners, product managers, IBM Global Business Services, distinguished engineers, and anyone with cross product implementation stories. Presentations with documented benefits resonate well with our attendees.
What kinds of products will be featured? Some of the product pairings that will be highlighted in the Change Management for Applications and Services track include:
Rational Asset Manager and Tivoli Change and Configuration Manager (CCMDB)
Tivoli Service Request Management, Rational Team Concert, and Rational ClearQuest
Rational Test Lab Manager, Tivoli Provisioning Manager, and Tivoli Application Dependency Discovery Manager
Rational Build Forge, Tivoli Provisioning Manager, and Rational Automation Framework for WebSphere
How can I learn more? Visit the Pulse 2010 Call for Papers page to learn more about proposal requirements and how to submit your proposal.
Take advantage of this great opportunity to share your experiences with your peers, get feedback from the most influential industry experts and promote your organization by submitting an abstract to speak at Pulse 2010.
Accepted client speakers will have high profile exposure to over 5,000 industry experts, press and analysts. Approved client submissions will receive a full conference pass ($1,995 value) and admission to our on-site VIP client lounge. In addition, to your paper may be published in the Pulse 2010 proceedings.
I talked with Pete Marshall, the lead for the Pulse 2010 Hot Topics track, and he offered the following insights and suggestions on how to submit a winning proposal.
One definition of a hot topic, is something not covered at last years conference and something that might not be covered next year. We’re looking for breaking trends—a snapshot of the industry and challenges service management professionals are facing right now. Themes like cloud computing, or serving the real-time web are good examples. Security is a perennial issue that always presents new challenges: it’s a hot topic every year, but every year there’s something different at the forefront. Things in our industry keep evolving and in the Hot Topics track, we want to look at and share information and experiences about what is really happening in the bleeding edge of service management. Some possible topics include:
Integrated Service Management
Process management and integration
The Hot Topics track is aimed at business leaders, decision makers and strategists puzzling over things like how to integrate physical and digital assets, what process models to use, and what are the best approaches to managing in a rapidly changing business and IT environment. Pete said he would encourage anyone working to solve emerging challenges—industry experts who may have a wider purview across the industry and very specialized customers who have done these projects themselves--to submit an abstract so together, we can share best practices, insights and create effective solutions as we move into uncharted territory.
Pete described two key aspects of a winning proposal—relevance and real life experience.
Is the topic relevant to where the industry is today? Is it something new and ground breaking? If the answer to these questions is yes, your abstract is a good candidate for the Hot Topics track. Going back to the security example, an overview of security might not qualify as a hot topic, but some current trend or challenge in the security landscape most certainly would.
While there is always a place for theorizing, in the Hot Topic track, we are looking for people who have been there and done that. We want presenters to share how they have solved or are working to solve a challenge.
The benefits of participating as a speaker are huge. Speaking is a very different dynamic than just listening. Not only will you have the opportunity to share your experience and get feedback from your peers, you will receive a full conference pass and get to experience the conference in a deeper, more involved way.
Ivor, what a great read. We should send you to Hong Kong food courts more often! :) Love your lessons learned:
* Understand all the factors and concerns that affect your customers decisions and satisfaction
* Continual service improvement is for things that are working well – it isn’t just for things that are failing
* The level of your success in good times may not indicate how well you will do in bad times compared to others
* Collaborating with your competitors can sometimes make more sense than competing on everything.
IBM Survey Results: Financial Services IT Service Management Strong in an Uncertain Economy
Industry Solutions: Financial Services Sector Blog By Mike Zelle, Market Segment Manager, Financial Services Sector - Tivoli Software, IBM
IBM conducted a global survey of CIOs and other IT investment owners during December 2008 and January 2009. In these ‘uncertain economic times’ the results are very interesting from a Financial Services IT point of view.
Key survey results The current economic and market conditions these organizations face have had a significant negative impact on enterprise budgets. But IBM’s survey showed the opposite to be the case for IT budgets. • The vast majority of IT decision makers (85 percent), in financial services and across all industries, reported budgets remaining flat or changing only slightly • 9 percent of those in financial services reported significant budget reductions • 21 percent indicated that they were increasing their investment in IT • 6 percent of financial services organizations indicated they would be significantly increasing their IT budgets in response to current economic and market conditions.
IBM believes that these IT investments are continuing because these companies recognize that IT services can not only help the enterprise as a whole to operate more effectively and efficiently but also provide competitive advantage. These businesses have realized that just cutting costs within IT has limited business benefit and introduces unacceptable levels of risk to the entire organization that depends on the quality and reliability of IT services for efficiency, compliance, security and even competitive differentiation. If IT is 10 percent of the operational expense of a financial services business, cutting IT by 50 percent will yield only a 5 percent reduction in business operational expense, but will most likely unacceptably expose the other 90 percent of the business to significant new problems, risks and competitive disadvantage.
Financial services organizations were also disproportionately more likely than other industries to also expect IT to be an innovator, to research and recommend enterprise strategic objectives, to identify opportunities for innovation and to develop new business areas or services.
Financial Services IT priorities to support business requirements The most commonly reported financial services priorities impacting IT investment plans were: • Improving access to and leveraging customer information • Improving efficiency / reducing costs of business activities • Increasing customer retention. Mandatory programs / projects that must take precedence: • Compliance is a more pressing concern for financial services than it is for any other industry, with 88 percent of projects in this area continuing, expanding or being initiated. • Systems management ranks as high as compliance, which is understandable given that the business infrastructure that is required to enable market survival for today's financial services company is increasingly an integrated digital platform of IT-enabled business services. • These activities also explain why technology virtualization and storage consolidation, at 78 percent and 72 percent, are also high on the list, coming only after security. A scalable and manageable IT infrastructure is required to provide the resilient basis for quality services.
IT Service Management is the key priority Smarter management of IT services is the top business-driven priority for IT. Service management builds on foundational capabilities—security, compliance, managing IT systems, and virtualizing and consolidating the physical infrastructure—that provide the basis for the reliable IT services required by the business. Service management projects continued, expanded or initiated as a consequence of the economic and business environment was 68 percent—ahead of technology areas such as server deployment, mobility and network convergence.
Conclusion and recommendations According to the results of the IBM study, IT leaders in the financial services industry are reprioritizing IT projects to focus on optimizing IT-enabled business processes. Accordingly, once they have met urgent requirements in areas such as compliance, systems management, virtualization/consolidation and security, they are investing in smarter management.
This business-driven approach to service management emphasizes the role IT services can play in improving the efficiency and effectiveness of the organization as a whole rather than on the type of cost-cutting within IT that can produce negative and unacceptable business risks.
The study results point to the following key recommendations: • Improve the quality and reliability of IT services that process financial transactions, provide integrated access to and leverage customer information, improve customer loyalty and retention, enable workforce productivity and support compliance. • Prioritize smarter ways of doing things through service management and technology consolidation. • Revise measurements and reporting to provide more visibility to process performance, quality of service, outcome metrics, costs, and business value. • Change the focus from technology and optimized subsystems to optimization of IT-enabled business activities. This includes building out the digital platform of the business and improving the ability to manage it as the new business infrastructure. • Apply some investments to tactical quick wins—but also work toward eliminating service-quality inhibitors through longer-term strategic initiatives.
Cloud and Service Management: What an excellent topic! :)
Does Bruce Otte have a presentation or white paper he can share on this?
I'd love to see a future blog entry highlighting some of they key points of his talk at the itSMF eSymposium.
Industry Solutions: Communication Sector Blog By Scott Sobers, Program director, Communications sector- Tivoli Software, IBM
Conventional wisdom tells us that the telecom industry is generally safe from fluctuating consumer demand, but with this current recession, we may have to rethink this rule of thumb.
This popular notion was initially supported by stating that the wireless data market experienced 7.3 percent quarter-over-quarter growth in the fourth quarter of 2008, an overall 38.7 percent increase from the fourth quarter of 2007. However, according to Chetan Sharma Consulting, this growth cannot be sustained in a continually deteriorating economy.
During these times, both businesses and consumers are scrutinizing costs, which leaves telecom service providers vulnerable to losing customers looking to cut household and business spending. Customers will be quick to drop services that don’t meet their standards, so providers need to go above and beyond to prove their value. Subscribers have many carriers to choose from, and for some customers, the deal-breaker may be differing qualities of service, both at the network layer and call center level. According to Stratecast analyst Karl Whitelock, service providers lose a large percentage of customers because of service issues. For some carriers, the number of lost customers exceeded 10 percent of their customer base.
Proper customer care is positioned to be a game-changer for wireless providers as it builds trust and drives satisfaction. Service providers are aware that maintaining a high quality of customer service is a key factor in customer retention, but reaching this metric is always a challenge. The inhibitors to superior customer care include weak communication between call centers and network operations and poor network intelligence. By being more proactive about identifying service issues, service providers can empower their customer care representatives with the tools to improve customer experience and help grow business.
Providers can employ a number of best practices to improve customer service. These relate to boosting visibility across the network, monitoring communications capabilities and prioritizing problem resolution.
Visualizing service quality Understanding when a service impact occurs, determining who it affects and how it impacts the business enables providers to pinpoint and resolve those issues before a customer has a chance to complain about them. This can be done by collecting key data from different systems and from multiple vendors, which can then be used to simulate relationships across the network, applications and databases in order to determine which factors are most critical to the service. With this information, service providers can more effectively oversee the health, quality and availability of their networks and, when issues do occur, providers can quickly identify the problem, its cause and easily “link” the service to the system running the affected components. By streamlining end-to-end network management, service providers can prioritize their responses and communicate the relevant information to all parties.
Monitoring the customer experience Besides keeping their eyes on the internal network, service providers will benefit from maintaining a real-time view into customers’ experiences. For example, being aware of how many customers are using a particular service lets service providers see how many subscribers are being impacted by service issues, which is valuable during the trouble reporting process.
Improving internal communications Improving communications between customer care and network operations also helps providers solve network issues faster and more strategically. By providing the right intelligence to those who need it – operations, IT and customer care – snags can be resolved faster and with minimal impact to customers. For example, if a network supervisor can recognize an issue’s root cause, customer care can be better prepared by knowing why a customer is calling even before they describe the problem, thereby having a solution ready for the customer when she calls.
Prioritizing problem resolution In the event that glitches occur, service providers have to make strategic decisions – which will they respond to first? What will each issue’s financial impact be? By linking their network and customer intelligence, providers can identify which issues affect the business most and respond to those calls accordingly. As a result, companies can prioritize efforts that offer the greatest value to the business and customer.
Final thoughts Beyond resolving service issues, managing the customer experience provides other assets beyond consistent customer satisfaction. By studying the data collected day-to-day during the experience monitoring process, providers gain knowledge about how customers use different offerings, which will be useful during business planning.
We are witnessing the telecommunications market migrate from a strictly voice-based industry to one that sells Web access, rich media content and business applications on cell phones. As this evolution continues, service providers will have to deal with the added responsibility of fielding service questions about data issues, which according to Stratecast take three times longer to resolve than regular voice service issues. Faced with this challenge, customer experience management is a valuable tool that providers can use to deliver positive customer satisfaction, high service quality and gain competitive advantage.
Scott Sobers is the program director for the communications sector for Tivoli Software at IBM. In this role, he manages the strategy and planning for IBM's solutions for communications service providers.
Businesses around the globe are facing many of the same challenges:
rising customer expectations for quality service, pressures to control costs,
and requirements to manage the complexity of converging IT and business
While their overall challenges are similar, the types of
services, assets and infrastructures used across industries can vary
tremendously. This is why IBM offers
industry-specific solutions to help create and manage unique business and IT
infrastructure, services and products.
IBM Service Management Industry
Reduce costs, respond to new/expanding regulations, implement
consolidations, and minimize operational risk.
& Petroleum: Manage end-to-end operations more efficiently,
preserve existing infrastructure investments, safeguard knowledge and
expertise, and manage risk and compliance.
Establish a platform for rapid deployment of new capabilities and
customer-focused strategies, integrate processes and systems to drive
operational excellence, monitor and protect assets to minimize
disruptions, and facilitate compliance with industry regulations.
Service Providers: Improve the service quality of next-generation
content and application-based services, while reducing operational costs
and the risks associated with today’s more open networks.
Drive continuous improvement in time to market, product quality and
development productivity while building responsiveness, agility and
efficiencies into business operations through higher asset performance,
availability and utilization rates.
& Utilities: Build and manage a common service management platform
for the Intelligent Utility Network with advanced meter management (AMM),
electric transmission and distribution device automation and analytics,
and enterprise asset management (EAM), including meter asset management.
Accelerate and optimize high-quality product development and introduction,
while extending the benefits of product lifecycle management (PLM)
to the entire value chain.
Streamline operations and meet regulatory compliance objectives by
minimizing security and IT operations risk while controlling data center
Optimize the operational performance of business and IT assets
-ensuring high reliability and availability of assets, achieving a greater
level of customer service, and driving value for the enterprise.
Enhance dynamic infrastructure capabilities for defense agencies by
providing solutions that reduce the cost of operations, improve the
services delivered and help manage the risks.
Provide patients with the services they need, when they need them, and
at a competitive cost.
Each week, we will feature a closer look at one of the
industries highlighted above. Talk to us!What industry-specific challenges are you facing? What kind of
industry-specific information and resources would you like to hear more about?
Send us your thoughts.
Mid-sized organizations will benefit from the IBM Tivoli Foundations offerings - service management solutions designed and priced to meet the needs of mid-sized organizations. You can learn more at:
Tivoli Foundations Application Manager offers turn-key performance and availability monitoring for mid-market companies. It allows them to restore a service that is experiencing performance and/or availability problems with the shortest mean time to recovery possible.
Tivoli Foundations Application Manager also delivers real-time information allows an organization to visualize service performance and health across their network, server, middleware and application components enabling them to effectively manage risk and improve service quality.
Tivoli Foundations Application Manager helps clients optimize their resource allocation and reduce cost by giving them the ability to identify underutilized resources and reallocate them to support new business operations. At the same time, risk is reduced by anticipating resource over-utilization and generating proactive events and reports against resources that do not have the capacity to address growing business needs.
Tivoli Foundations Application Manager comes with out-of-the box best practice monitoring policies that track IT Infrastructure health against pre-defined thresholds. This allows organizations to quickly and proactively identify and respond to problems and issues before critical applications and customers are impacted. Overall service is improved by restoring the service or application that is experiencing performance problems with the shortest mean time to recovery possible using autonomic capabilities to fix problems before human intervention is even needed. Reducing problem determination time decreases cost and allows organizations to spend more resources focusing on business innovation and creating competitive advantage.
IBM Tivoli Foundations Service Manager
Tivoli Foundations Service Manager provides service desk capabilities that allow mid-size companies to handle help desk calls, track problems, and make changes that prevent existing problems without creating new ones. It also provides a self-service, searchable knowledge base that delivers fast answers to common IT problems.
In addition, Tivoli Foundations Service Manager delivers dashboards that provide real-time performance views and out-of-the box content including workflows, templates, key performance indicators (KPIs), queries and reports targeted for mid-size clients.
The Tivoli Foundations Service Manager appliance-based service desk solution helps mid-market clients reduce their costs by optimizing the productivity of operations personnel through its built-in problem solving tools, providing operations a way to increase the efficiency of its service support functions. The robust self-help portal which is populated with best practice resolutions to common problems, gives end-users a way to quickly resolve problems on their own without having to involve any additional personnel.
Managing risk is key to small and mid-market clients that have extremely limited IT skills in-house. The Tivoli Foundations Service Management solution ensures process compliance by integrating standards-based incident and problem management processes resulting in a repeatable and consistent service support process.
Tivoli Foundations Service Manager delivers streamlined standards-based incident and problem management processes that enable rapid service restoration and improved overall service quality. It provides real-time visibility to end users on priority, urgency, and impact of problems, incidents, and service requests. These built-in survey capabilities allow organizations to track and trend overall end-user satisfaction with their operations and creates a closed loop environment where overall service quality can continually be improved.
Every day, the world is becoming more instrumented, interconnected, and intelligent. Infrastructures and assets across the globe are rapidly being digitized, turning physical assets into smart assets that allow people, systems, and objects to communicate and interact with each other in entirely new ways.
This “smarter planet” is creating opportunities for new, smarter, differentiated services and products. Organizations that can rapidly adapt and innovate to meet or exceed customer expectations for new services and products will be in a position to accelerate growth and gain competitive edge.
Watch this video to see how smart meters have made a significant impact on Portland General Electrics business.
Business and operational audiences often lack the visibility they need to more effectively manage their business objectives. They frequently have an obscured view of their business and IT assets and how they come together to support services.In addition, processes and workflow are often disconnected across organizational boundaries.
The result is lost opportunities and an inability to meet or exceed critical business objectives.If you cannot see your assets, and their relationship to the service you are delivering, you cannot respond quickly to new opportunities or to problems when they arise.The lack of adequate governance across asset types (business & IT, People, Information) leads to unnecessary risk and an inability to effectively meet compliance and audit requirements.Further, if you cannot manage assets effectively across organizational boundaries, it’s difficult to lower the return on those assets, information and people and effectively manage operational expense.
IBM service management provides targeted real-time business, compliance, and operational dashboards.
Business dashboards display service performance in a business context showing KPIs that include transactions, customer activity, and other key metrics. Dashboards pull information from both business sources and IT sources, then connect and display the information to show not only how IT is performing but how that performance is impacting these key services.
In addition, operational dashboards show the technical status of business services and the supporting infrastructure. These dashboards can be used to visualize emerging technical problems, and business impact—in many cases, prior to customers even becoming aware that a problem exists.
Subsequently, they can isolate service root cause, identify problem owners and guide them through resolution.
See the results of improved visibility. Watch this video to find out how Star Technology used IBM Service Management to manage and monitor their IT systems—servers and network—and their non-IT systems—air conditioning units, UPS, chillers, interfacing with their building management system for alerts.
Every day, the world is becoming more instrumented, interconnected, and intelligent. Infrastructures and assets across the globe are rapidly being digitized, turning physical assets into smart assets that allow people, systems, and objects to communicate and interact with each other in entirely new ways. This “smarter planet” is creating opportunities for new, smarter, differentiated services and products. Organizations that can rapidly adapt and innovate to meet or exceed customer expectations for new services and products will be in a position to accelerate growth and gain competitive edge.
Watch this video to see how smart meters have made a significant impact on Portland General Electric’s business.
architecture (SOA) has emerged as a strategy many organizations are adopting in
order to respond more quickly and cost-effectively to customer needs, I really
wanted to understand what it was all about.
After reading many articles and talking with a number
of subject matter experts from IBM
Tivoli and WebSphere, here’s the information I pulled together.
Definition of SOA: Service Oriented Architecture
(SOA) is a method for breaking down large applications and business processes
into smaller “services” and a system for linking them on demand so they can be
reused to create new applications and business processes.
While not elegant or profound, this definition helped
me understand how SOA
with a dynamic infrastructure that allows them to break down large applications
and business processes into smaller, loosely-coupled “services” that can be reused
to create new applications and respond quickly to customer needs. The result is
a simplified, more powerful infrastructure in which services can dynamically
scale to meet changing organizational needs or workloads, while reducing cost
and management complexity.
With the tremendous value
SOA provides also come new challenges. Some of the challenges include managing
the complexity of deploying interdependent services, ensuring compliance with
multiple service level agreements for the same service, checking for the
proliferation of duplicate or overlapping services, and protecting a SOA
application and data from unauthorized access to name just a few. Meeting
operational goals in a SOA environment requires a new approach.
That’s where IBM
Service Management comes in. IBM
delivers offerings and services that span the entire service mangement lifecycle,
providing the visibility, control and automation needed to
effectively manage a SOA environment. IBM
Service Management solutions help organizations ensure compliance with multiple
service level agreements for the same service and track the interconnectivity
of loosely-coupled services to manage performance & availability.
It's been said that the only difference between a native Texan and an adopted Texan is who complains more about the crazy, long hot summers. For those of you who know neither, believe me when I tell you the natives complain a lot more. The adoptees relish it.
A lifelong Texan and passionate runner, my idea of good weather is not based on how hot and sunny it is outside. I prefer a temperature just shy of 50 degrees with plenty of cloud coverage, and even a little rain is welcome. As my skin sizzled under the 97 degree sky yesterday, I was thinking about IBM CloudBurst and wishing I could order up my own personal cloud . . . maybe someday IBM will invent that!
In the mean time, here are some of the features and benefits you can expect when you introduce IBM CloudBurst in your enterprise with the dynamic infrastructure of IBM Service Management.
Faster time to value: Delivered on site as a prepackaged and self-contained service delivery platform for cloud computing... virtualization included! Flexibility: Scalable platform allows you to deploy now and easily scale as business needs change. Ease of use: Self service portal for rapid access to cloud delivery Simplified systems administration: Integrated systems management of both physical and virtual workloads - through a single interface to blade servers, storage and networking Superior reliability: Keeps your virtualized infrastructure up and running - with multiple layers of redundancy built into the hardware platform resulting in no single point of failure. Energy efficiency: Designed from the ground up to dramatically improve power utilization and reduce energy costs. Integrated power management to help you plan, predict, monitor and actively manage power consumption of your BladeCenter servers.
IBM is featuring four live webcasts that focus on how service management can help clients reduce costs and effectively address challenges in this economically uncertain time.
The first webcast, Service Management for an Uncertain Economy, took place today, June 16 and featured, Gartner Research Vice President, David Williams; IBM Tivoli General Manager, Al Zollar; and Tivoli Product Marketing director, Kathleen Shouldis.
David Williams discussed CIO strategies to address the shifting focus of IT and changing spending patterns caused by reduced budgets.
Al Zollar talked about how to realize faster ROI by consolidating management software, automating complex tasks and processes, reducing downtime, and extending asset life. You can hear the recorded webcast by clicking the link at the end of this blog.
The second webcast, Effective Asset Management in an Uncertain Economy, will take place on Tuesday, June 23 will feature David Berger, Western Management Consultants and contributing editor to Plant Services, and Ron Wallace, IBM Maximo Product Manager.
On July 7, Julie Craig, Research Director of EMA, and Pandit Prasad, Tivoli Product Marketing Manager will be featured in a webcast entitled, Consolidate Management Software and Reduce Cost.
The fourth and last webcast in the series, Data Center Automation in an Uncertain Economy, will be presented by Jasmine Noel, founding partner of Ptak, Noel & Associates; and Kendall Lock, Director, IBM Software Group Rome Lab Development Facility.
This series will take a deep look into the cost challenges service management professionals are facing today along with solutions that can help fight cost and complexity. Click on the link below for more information.
FYI, the recent IBM Service Management Jam on Cloud Computing, "Cloud Computing: Innovation that drives IT and operations efficiencies" is the #1 most popular of the 41 Jams aired to date.
Cloud Computing Jam link: http://bit.ly/9mt8N
Jams page link: http://bit.ly/ultmC
Greetings! Today kicks off the series opener, Service Management in an Uncertain Economy with Gartner VP and ex-IBMer David Williams and Tivoli GM Al Zollar. 12:00 - 1:00 p.m. ET; 16:00 - 17:00 GMT Audience: service management and asset management practitioners Sign up by 11 a.m. ET:http://bit.ly/m5Uot
Outside-in-Design teams gotta love you: "Until we learn to manage the applications in the same way they are used, that is from the customer's perspective, we will continue to struggle with the reputation of IT as being a stumbling block to business instead of a driver of business."
So, how about Cloud computing? This is top of mind lately as I've been working on the launch of the new Cloud computing community
What role does something as historically old school as System z have to play in this big, bright new world?
Thanks, Ken. Your insight on the framing of discussions around Transportation, Travel, and Asset Management is very helpful. What type of "assets" do these groups usually manage? And what are their biggest challenges today?
Recent IBM news on “Smarter Cities” is invoking fond
memories of one of my favorite courses at Rensselaer
Polytechnic Institute: Politics
of design taught by Professor
Langdon Winner. Some of my favorite discussions during this course focused
on urban theory and planning and environmentally and ethically responsible
innovations. A few of my favorite personal readings included:
While innovations and technologies always fascinate
me, personally I’m most interested in the political, socio-cultural aspects of
Palmisano’s statement below:
“All the ways in which the world
works come together in our cities. They are the proverbial melting pot -- not
only for immigrants, but for systems, blending them together to engender new
forms of commerce, of culture, of science, of life and of society. Which is why
cities -- more than states, provinces or even nations -- are likely to be the
crucible for human progress and evolution in the coming century.”
Smart cities require smart people and deliberate thinking. How will SmarterCity designs and innovations enable and constrain our attempts
to build ethical, sustainable, humane systems and relationships? What are key
philosophical and socio-cultural issues to consider in this endeavor?
Two great IBM
conferences were held in Las Vegas this year--IBM Pulse and IBM Impact.
However, I have to say that I truly envy the IBM
Rational Software Conference taking place from May 31-June 4,
since it will be at the Walt Disney World Swan and Dolphin Resort in Orlando, Florida (where Pulse 2008 was held).
The effervescent ambience in the air is unparalleled. The awseome fountains are
a key contributor.
Tivoli fans will be pleased to know
that several Service
Management topics will be covered at the conference since the integration
of development and operational tools, data, and processes is essential to
improving the success rate of application deployments and improving service
quality. The topics will cover ways businesses can improve the integration of
development, test, and operations to simplify high-quality application
deployment, enhance provisioning, streamline problem diagnosis, and enable
effective service management. The
conference will include the following Service Management topics:
General Manager sessions
Al Zollar, General Manager of IBM Tivoli
Software, will participate in three executive sessions:
IBM Cloud Computing
Breaking down the barriers between development and operations
General Manager roundtable
Software Lifecycle Track
“Enhancing The Application Life Cycle with Tivoli
Composite Application Manger (ITCAM)”-- Todd Kindsfather
Abstract: Discover how IBM Rational and Tivoli's joint solution helps reduce development and
rollout costs, while increasing rollout success rates. This session will
Discussion of how to enhance testing with ITCAM performance data
Description of how to use Rational test scripts with ITCAM for
Overview of how to leverage the ITCAM products to help resolve
problems earlier in the application life cycle
Tivoli Birds of a Feather session
“Bridging the chasm between build,
deployment and production”--Rich Johnston
Abstract: Today’s IT departments have more
systems to manage, more locations to support and more mission-critical
applications to build, deploy and maintain than ever before. In many
organizations, the processes employed to move applications from build, to
deploy, to production phase can be manual, time-consuming and error-prone. The
data, tools, and workflows are not well integrated or automated resulting in
inefficient processes which inevitably lead to slower time to market, long
resolution cycles and even loss of revenue. This session offers a chance for
attendees to discuss issues, challenges and solutions for bridging development
and IT operations across different aspects of the application and service
Service Management pedestals
Ped 1: "Service Management with CCMDB, TSRM,
and RAM: Total
Application Lifecycle management"--Rich Johnston
Abstract: The inability to quickly
identify application performance bottlenecks can lead to system downtime and
unnecessary cycles spent firefighting defects. See how ITCAM
can provide monitoring data from operations needed to better understand
performance characteristics prior to relase and speed correction of defects.
Ped 2: "Integrating the Service
Management Lifecycle across Development & Operations: Optimize Application
Performance in Production"--Todd Kindsfather
Abstract: Integration across application
development and configuration management tools is critical for complete
component life-cycle managmenet. With a Tivoli/Rational integrated solution,
customers can experience total application management from development to
deploymentt to operation.
For those who can’t
attend the conference in Florida, check out http://www.remotersc.com for other
opportunities to participate in the Rational Software Software conference
If you are friends of Tivoli experts on Twitter, you may see #tivtour tweets quite a bit this week. See my recent write up on this topic to learn more about the mystery event. Also, see Twitter Search for #tivtour on Twazzup
for a running stream of related tweets and photos. The Tivoli Tour runs
at many IBM locations this week and in Brazil on May 29. So you can
expect to see more Twitter conversations in the near future.