Welcome!

Eclipse Authors: David H Deans, JP Morgenthal, Mano Marks, Liz McMillan, 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 Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
TechTarget storage websites are the best online information resource for news, tips and expert advice for the storage, backup and disaster recovery markets. By creating abundant, high-quality editorial content across more than 140 highly targeted technology-specific websites, TechTarget attracts and nurtures communities of technology buyers researching their companies' information technology needs. By understanding these buyers' content consumption behaviors, TechTarget creates the purchase inte...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
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.
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
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.
SYS-CON Events announced today that Ocean9will 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. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, 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. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of 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. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
SYS-CON Events announced today that Loom Systems 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. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
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 ...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of 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. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of 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, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
SYS-CON Events announced today that Infranics 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. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
Now that the world has connected “things,” we need to build these devices as truly intelligent in order to create instantaneous and precise results. This means you have to do as much of the processing at the point of entry as you can: at the edge. The killer use cases for IoT are becoming manifest through AI engines on edge devices. An autonomous car has this dual edge/cloud analytics model, producing precise, real-time results. In his session at @ThingsExpo, John Crupi, Vice President and Eng...
In the enterprise today, connected IoT devices are everywhere – both inside and outside corporate environments. The need to identify, manage, control and secure a quickly growing web of connections and outside devices is making the already challenging task of security even more important, and onerous. In his session at @ThingsExpo, Rich Boyer, CISO and Chief Architect for Security at NTT i3, will discuss new ways of thinking and the approaches needed to address the emerging challenges of securit...