IT4ITTransforming IT in the digital age

Erik JohansenSolution Architect, HPE Software Services

erik.johansen@hpe.com+47 958 65 337

27/04/2017

Digital business transformation is happening now …… and it is driving IT transformation

84%of CEOs expect digital to increase profit margin

30%reduction in cost for business operations driven by smart machines by 2018

46%of product value will be digital by 2020

50%of CEOs say their industry will be digitally transformed by 2020

Source: Gartner, Best Practices for Implementing Automation in Data Centers With Cloud and Virtualized Environments, 2013

Source: Gartner, 2016 CEO Survey: The Year of Digital Tenacity

The Problem the OpenGroup sought to address

3

In the digital economy Software is the Product….

and of course, must always be better, faster, cheaper and safer

Business models are changing, and IT services must adapt!

Lack of cooperation across all IT leads to sub-optimality

Greater than 25% efficiency gains

Insufficiently integrated IT Management toolsets, lack of

prescriptive guidance

Tool rationalisation from 1000s to less the 40 (cost reduction)

Inability to gain true insight in order to make good decisions

Single dashboard view exploiting common data model

Immaturity makes it virtually impossible to tackle

complexities like cloud, agility, mobility, BYOD

One reference architecture supporting all of the above

The IT Value Chain is Broken

What is IT4IT

A prescriptive reference architecture / standard for running the business of IT owned by The Open Group®

Efficiency

&

AgilityFinance & Assets

Intelligence & Reporting

Resource & Project

Governance, Risk & Compliance

Sourcing & VendorIT V

alu

e C

hain

Plan Build Deliver Run

Service Backbone

Value Streams – MartinLean / 6-sigma concepts

Multi-Process Oriented

Customer focused results

Value Chains – PorterCompetitive Analysis

Strategic Concepts

Value Creation

Activity cost to profit margin

analysis

Vendor neutralFastest Growing OG

Standard Launched Oct 2015

Supports an IT Operating model

Applicable to all IT Environments

Value based delivery

IT4IT™: an Open Group standard for running the business of IT

Technical Standard2011 2012 2013 2014 2015

IT4IT

2.0 Std.

10/2015

RA 2.0

(level 3)

7/2015

RA 1.2

(level 3)

3/2014

RA 0.5

(level 1)

8/2012

Value Chain

9/2011

RA 1.3

(level 3)

10/2014

RA 1.0

(level 2)

1/2013

• > 10,000 downloads

• > 1100 organizations

• > 100 countries

• Pocket Guide “Hot Seller”

• > 2200 downloads

Original Consortium

IT4IT™ is a trademark of The Open Group

• Shell

• Hewlett-Packard (IT & SW)

• Achmea

• MunichRe

• Accenture

• Pricewaterhouse Coopers

• University of South Florida

• AT&T

IT Operating ModelDescribes the structure of IT management

IT Reference ArchitecturePrescribes the functional & information architecture

Consumer-centric service model

RA 2.1 Jan 2017

Now 104 Membersof the IT4IT forum!

as in a stream of activities delivering value

The IT Value Chain has 4 IT Value Streams

IT Value Chain

Strategy to Portfolio

Drive IT portfolio to

business innovation

Requirement to

Deploy

Build what the business

wants, when it wants it

Request to Fulfill

Catalog, fulfill & manage

service usage

Detect to Correct

Anticipate & resolve

production issues

From initiatives to value“There is more value created with overall alignment than local excellence” (*)

Velocity / requirements

Process

ToolCore IT

CloudProcess

Tool

DevOpsProcess

Tool

SecurityProcess

Tool

Multi SupplierProcess

Tool

MobilityProcess

Tool

Co

nte

xt / u

se c

ase

(*) Don Reinertsen, The Principles of Product Development Flow

General approach to the IT4IT™ Reference Architecture

Functional Model

• High level definition of all functional areas for IT

• Based on customer use case analysis

Service

Model

• Based on ITIL and service lifecycle and high level grouping of: Continuous Assessment, Continuous Integration, and Continuous Delivery – and later into Value Streams

Information Model

• Identification of key controlling IT artifacts

• Definition of artifact lifecycles according to lifecycle model

Foundation Integration

Layer

• Defines key control points for integration, based on artifact

• Link Information model with lifecycle model

Foundation Integration Layer

Information Model

Service Model

Functional Model

Problem

Component

Incident

Component

Offer Consumption Component

Service

Design

Component

Release

Composition

Component

Service

Monitoring

Component

Event

Component

Change

Control

Component

Usage

Component

Diagnostics &

Remediation

Component

Chargeback/

Showback

Component

Request

Rationalization

Component

Catalog

Composition

Component

Offer

Management

Component

Build

Component

Test

Component

Defect

Component

Source

Control

Component

Project

Component

Requirement

Component

Enterprise

Architecture

Component

Service

Portfolio

Component

Portfolio

Demand

Component

Proposal

Component

Policy

Component

Fulfillment

Execution

Component

Configuration

Management

Component

Strategy to

PortfolioRequirement to Deploy Request to Fulfill Detect to Correct

Enterprise

Archi-

tecture

PolicyRequire-

ment

Scope

Agree-

ment

IT

Initiative

Portfolio

Backlog

Item

Source

Con-

ceptual

Service

Logical

Service

Test

Case

Defect

Offer

Service

Release

Build

Service

Catalog

Entry

Desired

Service

Usage

Record

Fulfill-

ment

Request

Sub-

scription

Charge-

back

Contract

Request

Problem,

Known

Error

Incident

Event

Service

Monitor

Run

Book

RFC

Shopping

Cart

Service Level

Component

Service

Contract

Actual

Service

Build Package

Component

Build

Package

Service

Release

Blueprint

IT4IT Reference Architecture L1

Charge-

back

Record

Copyright © 2017 The Open Group

This diagram was developed/published by the IT4IT™ Forum, a Forum of The Open Group®

IT4IT™ reference architecture level 1

9

Configuration Management

Component

Service Monitoring

Component

Event Component

Incident Component

Change Control

Component

Diagnostics &RemediationComponent

Service LevelComponent

ProblemComponent

UsageComponent

Chargeback/Showback

Component

Fulfillment Execution

Component

Request Rationalization

Component

CatalogCompositionComponent

Offer ManagementComponent

Offer Consumption Component

ReleaseCompositionComponent

Build Package

Component

BuildComponent

TestComponent

DefectComponent

ServiceDesign

Component

ProjectComponent

Source Control

Component

RequirementComponent

ServicePortfolio

Component

PortfolioDemand

Component

ProposalComponent

PolicyComponent

Enterprise Architecture Component

Problem,KnownError

Incident

ServiceContract

Event

RFC

RunBook

ServiceMonitor

ActualService

Charge-back

Contract

OfferSub-

scription

ServiceCatalog

Entry

UsageRecord

Request

Fulfill-ment

Request

ShoppingCart

DesiredService

Charge-back

Record

Require-ment

TestCase

Source Build

ITInitiative

BuildPackage

Defect

LogicalService

ServiceReleaseBlueprint

ServiceRelease

PortfolioBacklog

Item

Con-ceptualService

ScopeAgree-ment

Policy

Enter-prise

Architec-ture

Strategy toPortfolio

Requirement to Deploy Request to Fulfill Detect to Correct

This diagram is based on material developed by the IT4IT™ Forum of The Open Group – Jan 2017

IT4IT™ is a trademark of The Open Group

Auxiliary data object IT4IT version: 2.1

Key data object

Service model object

Entity relationship

Key functional component

R2F

10

Service Model

Data Object – Key

Record Fabric Integration

Entity Relationship

Functional Component – Key

Functional Component – Auxiliary

Data Object – Auxiliary

Engagement Dataflow

Current Practice

Chargeback

Record

Service Catalog

Entry (Unbound)

Usage

Usage

Subscription

Request

User Profile

n:m

1:1

Shopping Cart

Chargeback

Record

n:m

1:n

1:n

Service

Monitor

Request

Knowledge

Status

Fulfillment

Engine & Deploy/

Provision Systems

RFC

Request

Composite/Compound

Request

Sourcing &

Vendor

Management

(External to IT)

Engagement

Experience Portal

Offer Consumption Component

1:n

Service Catalog

Entry (Bound)

Actual

Service

Release

Package

Service

Contract

(Template)

Service Level Status

Service

Contract

(Instance)

Self-Service

SupportKnowledge Collaboration

Conversation

Service Catalog

Shopping Cart

R2F 2.1

Estimated Labor

& Asset

Configuration

Estimated

Labor &

Asset Cost

Chargeback

Record

Request

Chargeback

Record

Proposal Component

Strategy to Portfolio

Invoice

CostRelease

Composition

Component

Service Release

Blueprint

Requirement to Deploy

Change Control

Component

RFC

Detect to Correct

Service Catalog Entry

Catalog

Composition

ComponentDesired

ServiceFulfillment

Request

Fulfillment Execution

Component

n:1

Incident

Component

Detect to Correct

Service Monitoring

Component

Detect to Correct

n:m

1:n

1:1n:1

Configuration

Management

ComponentActual Service

Detect to Correct

1:1

1:n

n:1

Offer

Catalog

n:m

Offer

Offer Mgmt.

Component

Request Rationalization

Component

Subscriptionn:m

Request

Service Level

Component

Detect to Correct

Service Contract

1:1

Project Component

Requirement to Deploy

Incident

IT Asset

Management

Supporting Function

Finance

(External to IT)

1:n

Knowledge &

Collaboration

Component

Supporting Function

Service Portfolio

Component

Strategy to Portfolio

Chargeback/Showback

Component

Chargeback

Contract

Chargeback

Record1:n

Usage

Component

Usage Record

1:n

1:n

Copyright © 2017 The Open Group

This diagram was developed/published by the IT4IT™ Forum, a Forum of The Open Group®

R2F

11

It is all about accelerating outcomesOne common ask - better, faster, cheaper and safer

50%Faster application release

R2D Continuous Release & Deployment

30%Availability improvements

D2C Closed Loop Incident Management

$1mSavings on efficiency

R2F Self service, automated request fulfilment

60%Reduction in budget overruns

S2P project & portfolio management

Different frameworks mapped against IT4IT

13

ITIL

Requirement

to Deploy

Request

to Fulfill

Detect

to Correct

Strategy

to Portfolio

TOGAF

COBIT

SAFe

PRINCE 2

SIAM

14

“A Language for Digital Transformation”

Useful websites

IT4IT on HPE ITSM on HPE

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Thank you

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