Development of Enterprise Computing Asset Management: Processes and Metrics

Development of Enterprise Computing Asset Management:

Processes and Metrics

by

Jason C. H. Chen, Ph.D.

Professor of MIS

Gonzaga University

Spokane, WA 99258, USA

[email protected]

Dr. Chen, Computing Asset ManagementTM -2

Project Description:

Asset management can reduce the cost of computing without reducing effectiveness. The project will:

Identify a process for managing site assets

Identify metrics to monitor Identify a process for collecting the

metrics


What is Computing Asset Management?

Computing asset management is a process or technology that helps to manage computer hardware/software procurement, usage, facilitate license compliance, track inventory, and enable change, providing overall ability to efficiently deploy software and manage portfolios.


Goals of Computing Asset Management

Reduce costs Increase

effectiveness Enhance return on

investment (ROI)


An Enterprise Model to Computing Asset Management

Info

rma

tion

Knowledge

Change

Dr. Chen, Computing Asset Management TM -6

PlanningAnalysis

Design

Implementation

Maintenance

Project Development Process:

(PDP)

ChangeInformation

Knowledge

Processes,Metrics

Report to ITManagers,

CIOs,CFOsetc.

Report to ITManagers,

CIOs,CFOsetc.

Information Quality Metrics:

i Timei Contenti Form

Information Quality Metrics:

i Timei Contenti Form

Knowledge Management Process(KMP)

i Knowledge Creationi Knowledge Sharing

t Capturet Organizet Access

i Knowledge Applicationt USE

Knowledge Management Process(KMP)

i Knowledge Creationi Knowledge Sharing

t Capturet Organizet Access

i Knowledge Applicationt USE

Change ManagementProcess(CMP):

i Culturei Operationali Benchmarkingi Outsourcingi BPI/BPRi TCOi Desktop Asset Management

Change ManagementProcess(CMP):

i Culturei Operationali Benchmarkingi Outsourcingi BPI/BPRi TCOi Desktop Asset Management

GOALS:¨ Reduce costs

¨ Increase effectiveness

¨ Enhance ROI


Content Scope

Functional Scope

Capture Organize Access

Knowledge

Sharing

Create

Knowledge

Creation

Use

Knowledge

Application

Value

Cross-Process Activities

Collaboration

Maintenance

Figure 6: Gartner Group’s KM Process FrameworkFigure 6: Gartner Group’s KM Process Framework

Planning

Analysis

Design

Implementation

Maintenance

Conduct a feasibility study to determine whethera new or improved system is a feasible solution.

Develop a project management plan and obtainmanagement approval.

Analyze the information needs of end users, theorganizational environment, and any systempresently used.

Develop the functional requirements of a systemthat can meet the needs of end users.

Develop specifications for the hardware,software, people, and data resources, and theinformation products that will satisfy thefunctional requirements of the proposed system.

Acquire (or develop) hardware and software. Test the system, and educate/train people to

operate and use it. Convert to the new system.

Use a post-implementation review process tomonitor, evaluate, and modify the system asneeded.

Figure 4: A Project Development Process Model



What is a Process? A process is a set of linked activities that

transform inputs into outputs.

An input or output may be a type of manpower/services, equipment, materials/goods, methods, and environment.


What is a Process?(Conti.)

The transformation involves the addition or creation of value in one of three aspects: time (when), place (where), or form (how).


Metrics

Metrics are combined measures and variables that quantify a goal.

Metric values are the numerical values for metrics.

Time horizon is the period allowed for achieving the goal or objective.


What is Total Cost of Ownership (TCO)?

is collective (and usually annualized) cost (both direct and indirect) of providing and maintaining corporate information services


Goals of TCO

Help enterprises understand many of the components involved in both the budgeted (direct) and unbudgeted (indirect/hidden) costs of acquiring, operating and managing their IT infrastructures throughout its life cycle

Reduce TCO Increase ROI


Four Metrics for TCO Model

Capital Technical Support Administration End-user operations

Each category is further divided into desktop and network components


Total Cost of Ownership (TCO) by Platform


A Process model: 10 Steps To A Lower PC TCO

Take a PC inventory Match the box with the usage Adopt and enforce internal standards Choose a vendor you can work with

over the long haul Develop an implementation plan and

stick to it


10 Steps To A Lower PC TCO(Conti.)

You can't improve what you can't measure

Know what you're paying for Match your TCO model and methods to

your industry Look at what other companies have

done to reduce TCO Investigate unorthodox solutions to

cutting costs


CFO

CIOIS-Manager

MS/SMS

Desktop AssetManagement

(DAM)Software Tool

Desktop AssetManagement

(DAM)Software Tool

InventoryD.B.

DAMD.B.

OtherD.B.

FinancialD.B. Financial

ManagementSoftware

Tool

FinancialManagement

SoftwareTool

TCO

Asset Acquisition (What, How many, and When)Planning/Budgeting/Forecasting Asset RequirementsROI Analysis

Maximizing Advantages of other Alternatives

Help Desk (Who has Which software, Where and When)

Software Distribution

Y2K (What, Where)

Messaging Management (Service Level Management)

Figure 8: A Desktop Asset Management(DAM) software

Tool Environment Model

Figure 8: A Desktop Asset Management(DAM) software

Tool Environment Model

V-A DAM TOOL

Metering/Monitoring

Inventory

SoftwareDistribution

SMS

MS/SystemsManagementServer

IT Manager/System Administrator/

CIO/CFO

Figure 9: A Value-Added Desktop Asset Management (V-A DAM) Software Tool Model

¼¼¼¼¼¼¼¼¼¼¼¼¼¼¼¼¼¼¼¼¼¼¼¼¼¼¼¼¼¼

DAMDatabase

MessagingManagement

Y2k

V-A DAM TOOL (Cenergy)

Metering/Monitoring(CentaMeter)

Inventory(NetCensus)

SoftwareDistribution(WinINSTALL)

SMS

MS/SystemsManagementServer

IT Manager/System Administrator/

CIO/CFO

Figure 10: A Value-Added Desktop Asset Management (V-A DAM) Software Tool Model(Tally Systems Corp.)

¼¼¼¼¼¼¼¼¼¼¼¼¼¼¼

¼¼¼¼¼¼¼¼

DAMDatabase

MessagingManagement(MailCheck/Veranda)

Y2k(Centennial 2000)


A Survey from Gartner ...Gartner studied 30 end-user organizations with an average of

7,000 workstations, the firm found the following results: 68 percent reported that their organization had an asset

database 50 percent claimed that asset management was a priority

for the Information Systems (IS) organization 26 percent claimed asset management was a priority for

the enterprise 23 percent reported that formal asset management plans

had been implemented 19 percent had an individual responsible for enterprise-

wide asset management


A Company Example of Cost Savings on MS/Office Suite Licensing

Based on total number of PCs of 80,000 units

1. Assume that a company pays $100 to each copy

Total cost:

$100 x 80,000=$8,000,000

Based on number of concurrent users: 80%

1. MS/Office suite cost

$100 x 80,000 x 80% = $6,400,000

2. Asset management software (Cenergy, with 3 modules) cost:

Cost on ASM ($17/each):$17 x 80,000=$1,360,000

3. Total costs:

$6,400,000 + $1,360,000=

$7,760,000


A Company Example of Cost Savings on MS/Office Suite Licensing (Cont.)



Total cost:

$100 x 80,000=$8,000,000

2. TOTAL SAVINGS:

$8,000,000 - $7,760,000 =

$240,000

3. Plus other potential strategic advantages



$100 x 80,000 x 80% = $6,400,000


Cost on AMS ($17/each):$17 x 80,000=$1,360,000

3. Total costs:

$6,400,000 + $1,360,000=

$7,760,000


A Company Example of Cost Savings on MS/Office Suite Licensing (Cont.)



Total cost:

$100 x 80,000=$8,000,000

2. TOTAL SAVINGS:

$8,000,000 - $7,360,000 =

$640,000

3. Plus other potential strategic advantages



$100 x 80,000 x 75% = $6,000,000


Cost on AMS ($17/each):$17 x 80,000=$1,360,000

3. Total costs:

$6,000,000 + $1,360,000=

$7,360,000


Conclusion and Recommendations

Apply the suggested enterprise model to project development processes

Use suggested processes and metrics in the computing asset management

Evaluate a different software licensing strategy (e.g., concurrent users) by using “metering/monitoring” function from one of the suggested DAM software tools to reduce TOC and increase/explore other potential strategic advantages


Documents

Development of Enterprise Computing Asset Management: Processes and Metrics