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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

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Page 1: Software Asset Management programs - Why … Asset Management programs - Why smaller is better ! Biswakesh Patnaik, Infosys Ltd. Gaurav Uniyal, Infosys Ltd. Anil Wangoo, Infosys Ltd

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

Page 2: Software Asset Management programs - Why … Asset Management programs - Why smaller is better ! Biswakesh Patnaik, Infosys Ltd. Gaurav Uniyal, Infosys Ltd. Anil Wangoo, Infosys Ltd

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

Page 3: Software Asset Management programs - Why … Asset Management programs - Why smaller is better ! Biswakesh Patnaik, Infosys Ltd. Gaurav Uniyal, Infosys Ltd. Anil Wangoo, Infosys Ltd

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

Page 4: Software Asset Management programs - Why … Asset Management programs - Why smaller is better ! Biswakesh Patnaik, Infosys Ltd. Gaurav Uniyal, Infosys Ltd. Anil Wangoo, Infosys Ltd

…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

Page 5: Software Asset Management programs - Why … Asset Management programs - Why smaller is better ! Biswakesh Patnaik, Infosys Ltd. Gaurav Uniyal, Infosys Ltd. Anil Wangoo, Infosys Ltd

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

Page 6: Software Asset Management programs - Why … Asset Management programs - Why smaller is better ! Biswakesh Patnaik, Infosys Ltd. Gaurav Uniyal, Infosys Ltd. Anil Wangoo, Infosys Ltd

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

Page 7: Software Asset Management programs - Why … Asset Management programs - Why smaller is better ! Biswakesh Patnaik, Infosys Ltd. Gaurav Uniyal, Infosys Ltd. Anil Wangoo, Infosys Ltd

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

Page 8: Software Asset Management programs - Why … Asset Management programs - Why smaller is better ! Biswakesh Patnaik, Infosys Ltd. Gaurav Uniyal, Infosys Ltd. Anil Wangoo, Infosys Ltd

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

Page 9: Software Asset Management programs - Why … Asset Management programs - Why smaller is better ! Biswakesh Patnaik, Infosys Ltd. Gaurav Uniyal, Infosys Ltd. Anil Wangoo, Infosys Ltd

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

Page 10: Software Asset Management programs - Why … Asset Management programs - Why smaller is better ! Biswakesh Patnaik, Infosys Ltd. Gaurav Uniyal, Infosys Ltd. Anil Wangoo, Infosys Ltd

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

Page 11: Software Asset Management programs - Why … Asset Management programs - Why smaller is better ! Biswakesh Patnaik, Infosys Ltd. Gaurav Uniyal, Infosys Ltd. Anil Wangoo, Infosys Ltd

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

Page 12: Software Asset Management programs - Why … Asset Management programs - Why smaller is better ! Biswakesh Patnaik, Infosys Ltd. Gaurav Uniyal, Infosys Ltd. Anil Wangoo, Infosys Ltd

ITAM Quick Wins Case 1 - License Optimization

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• 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

Page 13: Software Asset Management programs - Why … Asset Management programs - Why smaller is better ! Biswakesh Patnaik, Infosys Ltd. Gaurav Uniyal, Infosys Ltd. Anil Wangoo, Infosys Ltd

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

Page 14: Software Asset Management programs - Why … Asset Management programs - Why smaller is better ! Biswakesh Patnaik, Infosys Ltd. Gaurav Uniyal, Infosys Ltd. Anil Wangoo, Infosys Ltd

© 2013 Infosys Limited, Bangalore, India. All Rights Reserved. Infosys believes the information in this document is accurate as of its publication date; such information is subject to change without notice. Infosys acknowledges the proprietary rights of other companies to the trademarks, product names and such other intellectual property rights mentioned in this document. Except as expressly permitted, neither this documentation nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, printing, photocopying, recording or otherwise, without the prior permission of Infosys Limited and/ or any named intellectual property rights holders under this document.

Thank You

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