software asset management programs - why … asset management programs - why smaller is better !...
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Software Asset Management programs - Why smaller is better !
Biswakesh Patnaik, Infosys Ltd.
Gaurav Uniyal, Infosys Ltd.
Anil Wangoo, Infosys Ltd.
BCS CMSG Conference - The Future of Service Delivery
10 June 2014
Contents
• ITAM – A must have initiative for organizations
• Typical ITAM challenges
• Why smaller programs are better for ITAM
implementation
• Best practices for achieving ITAM success
• Industry examples
2
Software asset management continues to remain as a “must do” initiative for IT leadership …
3
Legal compliance i.e. Sarbanes-Oxley, privacy
Software license compliance
Avoid value leakage
Improve management of IT resources (people, tools)
Increase user efficiency
Reuse of assets/recovery of lost assets
Uncover hidden asset costs
Relieve tax burdens
Address vendor challenges or invoice errors
Improve warranty service
…However organizations continue to struggle with their ITAM initiatives
4
What would the result if a
software audit is conducted?
Is the TCO of software assets
correctly accounted?
How long an ITAM
program should run?
How do we measure the
success?
How do we get an
accurate list of IT assets?
How do we manage the
quality of IT Assets?
IT
Leaders ITAM Program
Managers
ITAM
Stakeholders
Typical reasons for software asset management program failure/delays
• Scope Creep – Inability to know how much
is too much.
• Delay in benefits demonstration, leading to
reduction in management commitment.
• Focus on “Ideal State” while overlooking the
“quick wins”.
• Lack of proper prioritization in managing
software titles lifecycle.
• Too much reliance on “best-in-breed”
automation tools.
5
Organizations need to consider a
pragmatic approach for ITAM programs
working in shorter iterative cycles and
delivering results with each milestone
Key guiding principles to ensure achievement of desired benefits
6
1. Execute the overall program in 2 parts – Long term
strategic and multiple short term initiatives.
2. Develop and maintain a matrix to classify and prioritize
software titles by risks, benefits value, complexity etc.
3. Analyze the overall ITAM lifecycle and identify the pain
areas. Pick 2-3 initiates from the lifecycle stages instead of
fixing the overall lifecycle.
4. Define metrics to measure and articulate benefits.
5. Choose a realistic maturity level target to be achieved.
Reaching highest maturity doesn’t always mean the
program is successful.
1
2
3
4
5
Two-Dimensional approach to deploy a best-in-class solution while delivering quick wins at regular intervals
7
Tactical
“Quick
Wins”
track
Strategic
Track
1
Org Change
Management
Solution Rollout
Process Definition
Tools Design
Current State
Analysis
Strategy Definition
Roadmap
Articulate Benefits
Sustenance
Continuous Service
Improvements
Rollout Quick Wins
Examples – Contracts
data fixes for top 3
software vendors
Data gathering
Analysis
(e.g. software titles for
top 4 vendors)
Prioritize Pain Points
Identify Quick Wins
Build 30-60-90 days
plan
Measure the results
Articulate benefits
Software Matrix to identify the titles for quick wins project
8
Total Cost (Cost/License * Total Install Count)
Lic
en
se M
od
el
Simple
Enterprise
License
Complex –
Infrastructure/
Usage based
License Model
1 2
3 4
1 High Risk Software 4 Low Risk Software
2
Building a Software risk matrix will help in prioritizing the software titles to be addressed as
quick wins
Choose initiatives from lifecycle stages to deliver immediate benefits
9
Planning & Design Procurement Request Fulfillment Tracking Decommission
Design / maintain
policies & processes
Establish Levels of
Security
Design License models
Explore charge back
options
Plan to reduce Risks of
Non Compliance
Plan for Audit / regulatory
Compliance
Study existing processes
Assist Vendor & Contract
Management
Explore Best Pricing
Facilitate IT Budget
Allocation
Update/ Maintain License
Info
Allocate / Revoke
Licenses
Manage License Delivery
Methods
Access Control &
Authorization
Handle License Queries
Analyze Trends
Usage Reporting
Centralized License Data
Management
On Going Maintenance
Periodic Audits
Harvesting of Licenses
Proper Amortization
Check Access Control &
Authorization
3
There are several initiatives in the overall ITAM lifecycle which can deliver significant benefits
Metrics for benefits measurement and articulation
10
4
Value Perspective
Alignment Metrics
Business-IT alignment, measurement of business value created by IT
Budget Metric
Compares IT budget and spending
Cost Efficiency Metric
Provides visibility into potential improvements
User Perspective
User Satisfaction Metrics
Measure of how products and services supplied by IT meet or surpass customer expectation
SLA Performance Metrics
Measure IT performance and determine whether the IT as a service provider meeting its commitments
Operational Excellence Perspective
Control Metrics
Drives decision, measures control on key business drivers
Resolution & Compliance Metrics
Measure achievements on response & resolutions, Security & Compliance
Availability Metrics
Measure service availability
Future Orientation Perspective
Human Capital Metrics
Aligning individual and group performance targets to corporate goals and departmental objectives
Organizational efficiency Metrics
Measures departmental process, practice maturity
Choose the targeted maturity model carefully to define the program timelines
11
Level 1
Level 2
Level 3
No Asset information
is available centrally
Data is maintained on
an ad-hoc basis
IT Assets are
maintained manually
Processes uses IT
Asset data
Process in existence
Roles &
Responsibilities
defined
Auto-Discovery
implemented for a set
of Assets
KPIs/Metrics defined,
SLAs established
Automation existing
for ITAM process
Integrations are
established with
processes/tools
Level 4
Level 5
Integration between IT
Asset, configuration
mgmt and other
processes established
Auto-Discovery
implemented
Reconciliation,
exception reporting
Automation tools are
integrated
Governance in place
End-to-end
processes are
integrated
CSI activities are
executed on periodic basis
Cost savings
demonstration from
license optimization
End-to-end ITAM
processes are
automated
5
ITAM Quick Wins Case 1 - License Optimization
12
• Lack of internal ownership and accountability
• Wrong license type usage
• Inefficient distribution of Licenses
• Over utilization, leading to non-compliance issues with SAP
Problem
Statement
• Users were reclassified and obsolete users locked from systems based on the inactive period.
• Measurement Program was run on all production system and users were consolidated
• License Management process and solution was documented for future reference.
Solution
• Cost savings by license optimization
• Compliance with software licenses agreement
• Sustainable process for ongoing software license management
Benefits
Quick Wins Case 2 – Software lifecycle management for prioritized vendors
13
• Software titles managed manually using spreadsheets
• Lack of visibility software compliance status and contract expiry dates
• Disintegrated processes and manual overheads
Problem
Statement
• Prioritization of software vendors by risk exposure and criticality
• Accelerated deployment of 4 software titles on an ITAM tool
• Processes defined for managing for software lifecycle
Solution
• ITAM Solution deployed for prioritized software vendors
• Visibility on software compliance and contracts Benefits
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