Welcome!

Eclipse Authors: Liz McMillan, David H Deans, JP Morgenthal, Mano Marks, Yeshim Deniz

Blog Feed Post

Why BSM Fails to Provide Timely Business Insight

image_pdfimage_print

Business Service Management (BSM) projects have always had a reputation for over promising and under delivering. Most people know BSM as the alleged “manager of managers,” or “single source of truth.” According to the latest ITIL definition, BSM is described as:  ”The management of business services delivered to business customers.” Like much of ITIL this description is rather ambiguous.

Wikipedia however, currently describes BSM’s purpose as facilitating a “cultural change from one which is very technology-focused to a position which understands and focuses on business objectives and benefits.” Nearly every organization I talk to highlights being technology-focussed as one of their biggest challenges, as well as having a desire for greater alignment to business goals. BSM should therefore be the answer everyone is looking for… it’s just a shame BSM has always been such a challenge to deliver.

Some years ago I worked as a consultant for a small startup which provided BSM software and services. I got to work with many large organizations who all had one common goal: “to make sense of how well IT was supporting their business.” It was a tremendous learning experience for me where I frequently witnessed just how little most organizations really understand the impact major IT events had on their business. For example, I remember working with a major European telco who would have an exec review meeting on the 15th calendar day in the month, to review the previous months’ IT performance. The meeting was held on this date because it was taking 4 people 2 weeks to collate all the information and crunch them into a “mega-spreadsheet.” That’s 40 man days effort to report on the previous 30 day period!

As organizations continue to collect an increasing amount of data from a growing list of data sources, more and more organizations I talk to are looking for solutions to manage this type of “information-fogginess,” but are skeptical about undertaking large scale BSM projects due to the implementation timescale and overall cost.

Implementing BSM:

I’m sure the person who first coined the term “scope creep” must have been involved in implementing BSM, as most BSM projects have a nasty habit of growing arms and legs during the implementation phase. I dread to think how many BSM projects have actually provided a return on their substantial investments.

BSM has always been a heavily services-led undertaking as it is attempting to uniquely model and report on an organization. No two organisations are structured in quite the same way; each having its own unique IT architecture, operating model, tools, challenges and business goals. This is why BSM projects almost always begin with a team of consultants conducting lots of interviews.

Let’s look at cost of implementation for a typical deployment such as the European Telco example I described earlier. This type of project could easily expect 100 – 200 man days of professional services in order to deliver. Factoring in software license costs, training, support & maintenance costs, the project needs to deliver a pretty substantial return in order to justify the spend:

Cost of BSM implementation:

Professional services

(100-200 days @ $1800 per day)

$180,000 – $360,000

Software license

$200,000 -$500,000

Annual support and maintenance

$40,000  - $100,000

Training

$25,000

TOTAL

$445k – $985k

Now if we compare to the pre-existing cost of manually producing the monthly analysis:

Existing manual process costs:

Days per month creating reports

10

Number of people

4

Total man days effort per year

480 days

Average annual salary

$45,000

Total working days per year

225

Annual cost to generate reports

$96,000

Even with our most conservative estimates it would take almost 5 years before this organization would see a return on their investment by which time things will probably have changed sufficiently to require a bunch of additional service days in order to update the BSM implementation. This high cost of implementation is one reason why there is such a reluctance to take the leap of faith needed to implement such technologies.

The most successful BSM implementations I am aware of have typically been the smaller projects, which are primarily focused around data visualization; but with powerful open-source reporting tools such as graphite, graphiti or plotly available for free, I wonder if BSM still has a place even with these small projects today?

What does success look like?

Fundamentally, BSM is about mapping business services to their supporting IT components. However, modern IT environments have become highly distributed, with SOA architectures that have data dispersed across numerous cloud environments and it is just not feasible to map basic 1:1 relationships between business and IT functions any more. This growing complexity can only increase the amount of time and money it takes to complete a traditional BSM implementation. A simplified, more achievable approach is needed in order to fulfil the need to provide meaningful business insight from today’s complex IT environments.

In 2011 Netscape founder Mark Andreessen famously described how today’s businesses depend so heavily on applications when he wrote “software is eating the world”. These applications are built with the purpose of supporting whatever the individual business goals are. It seems logical then that organizations should look into the heart of these applications to get a true understanding of how well the business is functioning.

In a previous post I described how this can be achieved using AppDynamics Real-time Business Metrics (RtBM) to enable multiple parts of an IT organisations to access business metrics from within these applications. By instrumenting the key information points within your application code and gathering business metrics in real time such as the number of orders being placed, the amount of revenue per transaction, and more, AppDynamics can enable everyone in your organization to focus on the success or failure of the most important business metrics.

These are very similar goals to those of a traditional BSM project, however in stark contrast to every BSM project I have ever heard of; AppDynamics can be deployed in under an hour, without the need for any costly services as detailed in a previous blog post introducing Real-time Business Metrics.

Instead of interviewing dozens of people, architecting and building complex dependency models, gathering data and analyzing it all to make sense of what is happening, AppDynamics Real time Business Metrics focuses on the key metrics which matter to your business, providing focus and a common measurement for success across IT and The Business.

So before you embark on a long and costly BSM project to understand what is happening in your business, why not download a free trial of AppDynamics and see for yourself; there is an easier way!

The post Why BSM Fails to Provide Timely Business Insight written by Tom Levey appeared first on Application Performance Monitoring Blog from AppDynamics.

Read the original blog entry...

More Stories By Jyoti Bansal

In high-production environments where release cycles are measured in hours or minutes — not days or weeks — there's little room for mistakes and no room for confusion. Everyone has to understand what's happening, in real time, and have the means to do whatever is necessary to keep applications up and running optimally.

DevOps is a high-stakes world, but done well, it delivers the agility and performance to significantly impact business competitiveness.

@ThingsExpo Stories
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Hitachi Data Systems, a wholly owned subsidiary of Hitachi LTD., will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City. Hitachi Data Systems (HDS) will be featuring the Hitachi Content Platform (HCP) portfolio. This is the industry’s only offering that allows organizations to bring together object storage, file sync and share, cloud storage gateways, and sophisticated search an...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software in the hope of capturing value in IoT. Although IoT is relatively new in the market, it has already gone through many promotional terms such as IoE, IoX, SDX, Edge/Fog, Mist Compute, etc. Ultimately, irrespective of the name, it is about deriving value from independent software assets participating in an ecosystem as one comprehensive solution.
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at Dell EMC, introduced a methodology for capturing, enriching and sharing data (and analytics) across the organization...