Saturday May 24, 2008

Measuring IT's Business Value

Measuring IT's Business Value You can’t manage, What you don’t measure !

IT Value Benefits are beyond Costs reduction, contributing to increase company's profitability
It's not easy to prove that an infrastructure gives business value to a company. I will try to answer at this difficult question.
To measure the IT infrastructure performance it is necessary to understand the performance indicator concept..


What is Key Business Value ?
  • Focus on Industry : Bank/Finance, Government, Retail, Telco, Manufacturing...
  • Business Value is Large : Stakeholder Value, Customer Value, Employee Value, Partner Value, Supplier Value, Managerial Value, Societal Value
  • Key Business Indicators : Profitability, Revenue Growth, Customer Satifaction, Market Share, Cross-Sell Ratio, Marketing Campaign Response Rates, Relationship Duration...
  • Common Language Management
  • IT Portfolio
  • IT Maturity
What is IT Value ?
  • Business/IT Alignment
  • Intellectual Properties
  • IT Process Automation
  • IT Performance
  • Innovation
  • Community
  • Know-How
  • Expertise
  • Service Level Agreement
Key Metrics
  • Key Metrics = Key Performance Indicators (KPIs)
  • Technical performance indicators : CPU, I/O, SAPS, SpecInt, TPC-H, Availability Ratio, Time To Repair, Data Loss Ratio...
  • Financial performance indicators : TCO, ROI, Depreciation...
  • Ecological performance indicators: Space, Watt, CO2, RoHS Ratio, WEEE Recycling Ratio...
What is Performance Lever ?
The Performance Lever is specific key performance indicator, it increases the system performance and it interacts with key indicators
It is a functional indicator, not technical !

Example:
  • #Concurrent Users Indicator is a Performance Lever (Business Indicator)
  • #CPU and #I/O are Key Performance Indicators
  • Calculate #CPU = f(#Concurrent users)
  • Calculate #I/O = f(#Concurrent users)
  • Start a Provisioning Process automatically
  • with #CPU and #I/O Values
  • Activate #CPU and #I/O Cards with Capacity on Demand Process
  • Integrate a new Web server with xVM Ops Center and N1 Service Provisioning System process
  • Testing
Measuring IT Value Process
Monitor
  • Put technical captors in different points of the infrastructure via scripts, software…
  • Gather technical, financial and ecological indicators values
Analyse
  • Integrate the native indicators values into the CMDB (My SQL for example because it's free software)
  • Calculate the complex indicators with native indicators
  • Analyse the results with reporting tool (StarOffice Calc for example because it's not a expensive solution)
  • Compare the results obtained to the awaited results.
  • Build a dashboard for CIO, IT Managers
Optimize
  • Infrastructure update with analysis results
           

Tuesday Jan 22, 2008

Key Performance Indicators For Business Value

Key Performance indicators KPI to follow the IT Infrastructure Performance

The IT Infrastructure is analyzed according 5 axis of IT model (scalability/power, flexibility, security, availability, economy/ecology). and the performance is measured by the Key Performance Indicators.
Control IT infrastructure is to give the means of measuring the variations of architecture states and of being able to anticipate the risks which degrade its level of maturity and thus the value business delivered by the company.


I propose performance indicators classified by IT Infrastructure Solution
  • Industrialization and Best Practices : Incidents number handled per day, Solving mean time for an incident, Changes number Mean time for the change, Infrastructure Maturity Level, Mean time to repair...
  • Standardized Technical Basis : OS Number, OS number releases, Administration software number, Open source components ratio, Technical basis change frequency, Total Cost of Ownership...
  • Computer Room Optimization : Servers consolidation ratio, Storage consolidation ratio, SwaP ratio, Hot points number in a room, Electric consumption ratio, Square meter reduction ratio, Return on Investment...
  • Provisioning : Time to deploy a new service, Update time, Services number deployed per year, OS number deployed per year, Applications number deployed per year, Administration ratio for a deployment...
  • Infrastructure Vitualization : Virtualized applications ratio, SwaP ratio, Use rate of equipment environment, Return On Investment, Virtual machines number, Availability ratio...
  • Desktop Virtualization : Virtualized terminals number, Virtual machines number deployed per year, Decibels decrease ratio in the call center, Productivity improvement ratio, Temperature decrease ratio in the call center....
  • Web 2.0 : Open Source components number, Electrical consumption, Costs saving, SwaP ratio, Web concurrent users number, Time to Repair, Return on Investment, Total Cost of Ownership...
  • Eco Datacenter : Servers consolidation ratio, Storage consolidation ratio, SwaP ratio, Electric consumption ratio, Square meter reduction ratio, Return On Investment...
  • Open Source : Open Source projects number, Open Source Components number, Contributors number, Economies made by the OpenSource choice, Freedom of Choice, Service Quality, Open standards...
  • Disaster Recovery Plan : Data quality ratio after incident, Recovery point objective, Recovery time objective, Full recovery time objective...
  • Business Application Infrastructure : Response time, Number of concurrent users, Data flow integration time, Availability ratio, Mean time of intervention on site, Number of application modules composing the solution...
  • High Performance Computing : Mean calculation time, Gflops number, Watt/Flop number, Availability ratio, Processors number, Calculation hours number per year...
  • Business Continuity : Data quality ratio after incident, Recovery point objective, Recovery time objective, Full recovery time objective, Hardware availability ratio, Data restore period...
  • Identity Management : Propagation time of a new user, Exemptions number, Applications number integrating the SSO, Notifications number per user, Propagation anomalies number per year, Password number per user...
  • Archiving : Retention period of archived data, Resource consumption per service, Media number on which the data have transited during its lifecycle, Return On Investment, Mean time of an archived data research...
  • Data Protection : Data availability ratio, Data retention duration, Data restore duration, Data quality ratio after incident...
  • Service Oriented Architecture : Time to make a new service available, Cost of inter-services cross charges, Applications ratio participating to the SOA, Response time, Data repository quality...
           

Thursday Jan 17, 2008

Business Intelligence

Business Intelligence

Business Intelligence drives Business and IT Performance

In today’s highly competitive business climate, making better decisions faster
can mean the difference between surviving and thriving. The challenges are
managing the exponential growth of data in a cost-effective and secure manner,
while transforming relevant data into information for decision support needs. Sun takes the cost and complexity out of today’s business intelligence and data warehouse requirements with a single open platform whose architecture can scale to meet your entire needs from deployment today to meeting your growth needs tomorrow. The results are faster access to information, the ability to make better decisions quickly and speed up time to market.

Sun has more 2000 customers references in business intelligence and data warehousing in the world on all industries (bank/finance, manufacture, retail, government, telco...)
Sun Microsystems developed a network competenties and expert in Business Intelligence and Data Warehousing around the world and working with its partners : SAS, Oracle, Informatica, SAP, etc.
The Sun Microsystems Business Intelligence Solutions integrate specific services around Extraction, Transformation and Loading,  Database, Reporting, OnLine Analytical Processing, Technical architectures, Proof-of-Concept and Benchmarks.

See performance results
DMreview, Wintercorp, TPC           

The qualification of the Business Intelligence technical architecture is declined according three assumptions :

  1. Data storage volume : for disk sizing. technical architecture support the data volume. The useful volume is the raw volume for operational systems with index, agregats, metadata and data work for database system.
  2. Extract, transform and load : for extraction, transformation and data loading. The technical architecture support for ETL process is based on the data flow volume and data processing.
  3. Users volume : for sizing users activities (Reporting, OnLine Analytical Processing). The technical architecture support for reporting process is based on concurrent users number on Data Warehouse and Data Marts.
Our Technology Assets
           

Wednesday Jan 16, 2008

Business/IT Alignment Methodology

Business-IT Alignment Approch IT Value for your Business Needs

Here I propose a deployment of the overall approach. I analyze the business model, then define an IT model that fits the business needs and in the end propose some IT solutions based on hardware, software and  value added services.
Business and IT Alignment is not a one time activity: it is actually a closed loop cycle where we re-evaluate IT needs according to the business needs on a regular basis.
Business changes quickly, so we need to be able to react and adapt the IT infrastructure to those changes. This approach gives us the needed reactivity to do that. So this is pretty common sense ! But this has to be done in a conscious and organized manner. So, in order to help our customers evolving in terms of IT maturity and delivering business value, we now tend to use at Sun the Business/IT Alignment Approach.
It consists first in identifying the business drivers that apply to a particular customer. These business drivers can be related to some strategic goals, to tactical objectives, to Corporate process improvements, to specific constraints of a particular industry...
It is central for an IT provider to understand up front these business drivers. There is no way we can design and deploy effective IT solutions without going through that step first. This is particularly true for storage where a lack of understanding of those drivers often leads to a very monolithic and difficult to manage storage in the best case or to silos of non interoperable storage in the worst case.
Once business drivers are identified, we need to understand key success factors and key performance indicators that will be used in order to drive and monitor progress. When I say "performance", I actually mean technological but also financial, environment and security. As an example, we may want to achieve a decrease of 30% on floor space. We may also want to achieve a higher availability on some critical data... To say it simply, we have to understand what needs to be achieved in terms of IT objectives, keeping in mind the business drivers that have been identified.
Business/IT Approach is an iterative loop and consist in aligning business drivers part of the business model with the success factors part of the IT model. The key performance indicators measure the performance of the IT solution according business, financial and technological criterias.
Each time a business model changes, IT model changes and in the end  IT solution also.

Example in Telco industry
  • Key Business Driver : Negotiate convergence fixe phone, mobile phone, Internet and TV
  • Key Success Factor : Deliver customer services independent of the support
  • Key Performance Indicators : Virtualized applications ratio, SwaP ratio, Use rate of equipment environment, Return On Investment, Number of virtual machines, Availability ratio...
  • IT Value Proposition: Infrastructure virtualization - Improvement of utilization ratio and infrastructure flexibility
           
About

Business stakes are changing, the IT infrastructure must be increasingly reactive to significantly reduce Time To Market. Today, we have the technology and methodology addressing these new business challenges.

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