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IT500 Master ClassIT4ITTony Price Craig Alexander HPE Software Services
Your speakers
2
Tony Price
Director WW IT4IT strategic consulting
HPE SW Services
Craig Alexander
EMEA Lead IT4IT strategic consulting
HPE SW Services
Context and the need for transformation?
3
Consumer demands are rapidly changing; on-demandOne common ask - better, faster, cheaper and safer
4
Gen Z2000-presentChildren
The first generation never to have experienced the pre-internet world
Millennials/Gen Y1980-2000Early teens to early 30s
Demanding, internet savvy, instant gratification. The iPad generation
Gen X1965-79Early 30s to mid-40s
The ‘focused, keep your heads down generation”
Baby BoomersPre 1965Late-40s+
Regarded in the West as the “have it all” postwar generation
Business models are changing, and IT services must shift
5
You get what you are givenYou get what you want, plus what you
didn’t know you needed…and of course, must always be better, faster, cheaper and safer
Day to day IT operations are evolvingSupport multi-model service delivery
Digital IT
Plan Source
OfferManage
New
Style
Traditional IT
Plan
Build
Run
Industrialized IT
Plan Build
DeliverRun
New
Tech
Reality: working smarter across the continuum and in all modes
IT can no longer manage all services the same way
Core IT Fluid IT
Greater agility
Businessoutcome-centric
New workloads, apps,and experiences
Shorter cycle times
IT outcome-centric
Conventional workloads & apps
Longer cycle times
Lower cost
Typical look at the business of IT still has silosAnalyze and understand how to support the business by initiative
Velocity / requirements
Process
ToolCore IT
CloudProcess
Tool
DevOpsProcess
Tool
SecurityProcess
Tool
Multiple Suppliers / SIAM
Process
Tool
MobilityProcess
Tool
Conte
xt / use c
ase
How can IT respond?
9
Transforming IT impacts every aspect of your organizationChange the lens in which you view your business
IT Value Chain Lens
IT4IT
11
The Open Group IT4IT™ standard to Run 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
• ~5000 downloads
• ~800 organizations
• ~74 countries
• Pocket Guide “Hot Seller”
• ~600 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
itSMF UK
IT delivers value through a series of activities
Which means there is an IT Value Chain supported by Value Streams
Efficiency
&
AgilityFinance & Assets
Intelligence & Reporting
Resource & Project
Governance, Risk & Compliance
Sourcing & VendorIT V
alu
e C
hain
Plan Build Deliver Run
Reference Architecture
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
as in a stream of activities delivering value
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
The IT Value Chain has 4 IT Value Streams
Efficiency
&
AgilityFinance & Assets
Intelligence & Reporting
Resource & Project
Governance, Risk & Compliance
Sourcing & VendorIT V
alu
e C
hain
Plan Build Deliver Run
Reference Architecture
itSMF UK
General approach to the IT4IT™ Reference Architecture
User is the north star, therefore start with IT use cases
Functional Model
• High level definition of all functional areas for IT
• Based on customer use case analysis
Lifecycle
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
• Defines key control points for integration, based on artifact
• Link Information model with lifecycle model Foundational Integration Layer (key control points)
Common Data/Information Model
Common Lifecycle Model
Functional Model
IT4IT™ reference Architecture V2.0
16
Service
Portfolio
Component
Portfolio
Demand
Component
Proposal
Component
Policy
Component
Defect
Component
Requirement
Component
Project
Component
Test
Component
Build
Component
Source Control
Component
Change
Control
Comp.
Problem
Component
Incident
Component
Event
Component
Diagnostics &
Remediation
Component
Usage
Component
Chargeback /
Showback
Comp.
Strategy to
PortfolioRequirement to Deploy Request to Fulfill Detect to Correct
Offer Mgmt.
Component
Offer Consumption Component
Service
Archite-
cture
PolicyRequire-
ment
Scope
Agree-
ment
IT
Initiative
Portfolio
Backlog
Item
Source
Conceptual Service
Blueprint
Concep-
tual
Service
Logical
Service
Blueprint
Test
Case
Defect
Offer
Service
Release
Build
Service
Catalog
Entry
Desired
Service
Model
Usage
Record
Fulfill-
ment
Request
Sub-
scription
Charge-
back
Contract
Request
Problem/
Known
Error
Incident
Event
Service
Monitor
Run
Book
RFC
Service
Monitoring
Comp.
Catalog
Composition
Component
Shopping
Cart
Enterprise
Architecture
Component
Service
Design
Component
Fulfillment
Execution
Comp.
Request
Rationalization
Component
Configuration
Management
Component
Release
Composition
Component
Service Level
Component
Service
Contract
Actual
Service
CIs
Service
Release
Blueprint
Build
Package
Build Package
Component
The Information Model
– The information model comprises of service lifecycle data objects and their relationships
– Each value stream produces and/ or consumes data that together represents all of the information required to control the activities that advance a service through its lifecycle
– These are referred to as “Service Lifecycle Data Objects”
17
Data object type Description Symbol
Key Data Objects
Key data objects describe aspects of “how” services are created, delivered & consumed; they are essential to managing the service lifecycle. Managing the
end to end service lifecycle & associated measurement, reporting, & traceability would be virtually impossible without them. The IT4IT Reference Architecture
defines 32 key data objects and most are depicted as black circles
Service models are stand alone subclass of key data objects that describe “what” IT delivers to its consumers. They represent the attributes of a service at three
levels of abstraction: Conceptual, Logical and Realised. These data objects referred to as the Service Model Back Bone data objects (or service backbone
data objects in short) & depicted using purple coloured circle in the IT4IT Reference Architecture diagrams
Key Data Objects
Auxiliary data objects provide context for the “why, when, where etc ” attributes and, while they are important to the IT Function, they do not play a vital role in
managing the service lifecycle. The IT4IT Reference Architecture currently describes eight auxiliary data objects and they are depicted using a grey
coloured circle
The Service Model
– Without a clear understanding of both the business and the technology attributes of a service, there is no way to be certain that the desired outcome can be consistently attained and that most optimal sourcing strategy will be applied.
– The Service Model construct in the architecture captures, connects and maintains these service lifecycle attributes as the service progresses through its lifecycle
– The structure that binds the different abstraction levels of the Service Model together is called the “Service Model Backbone”
– The Service Backbone can also be broken down into Service Components
18
Service
Portfolio
Component
Change
Control
Comp.
Strategy to Requirement to Deploy Request to Fulfill Detect to Correct
Conceptual Service Blueprint
Concep-
tual
Service
Logical
Service
Blueprint
Service
Release
Desired
Service
Model
Fulfill-
ment Request
RFC
Service
Design
Component
Fulfillment
Execution
Comp.
Configuration
Management
Component
Release
Composition
Component
Actual
Service
CIs
Service
Release
Blueprint
The Functional Model
– Based on real IT scenarios and use cases, the IT4IT Reference Architecture identifies and defines one of the essential building blocks – functional components- which create or consume data objects and can be aligned with the appropriate value streams.
– The functional Model is the set off functional components and their relationships
19
Functional Component type
Primary functional component
Description Symbol
A primary functional component is depicted using a blue coloured rectangle and is core to a specific value stream. This means that the functional component plays a key role in the
activities of a particular value stream/ Without this functional component, the integrity of the
data objects and thus the Service Model could not be maintained consistently & efficiently. Most IT4IT documentation will use language
such as “functional component is owned by or is core to a particular value stream” to
represent a primary functional component
The Integration Model
– Integration between components in the traditional IT management ecosystem is based on capability and processes.
– The interfaces needed to accommodate the requirements associated with this approach are largely point to point between products to enable automation of interdependent workflows.
– Over time, this results in a complex web of connections that is virtually impossible to manage, making changes to any of the components a daunting task
– The IT4IT reference architecture defines an integration model composed from the following three types of integrations for simplifying the creation of an IT Management ecosystem using functional components
– Systems of record integrations
– Systems of engagement integrations
– Systems of insight integrations
20
IT4IT in action
21
So lets look at some practical examplesExercise
– Your challenge – build a car for FY17 (new model) using standard components
– 2 groups – no conferring
– 10 minutes to do so (questions will only be answered in the first minute)
– You will present your finalised car to the course facilitator who will give feedback to the entire audience
22
Exercise Review
– What were your observations?
– Both groups had exactly the same components. So the cars look identical?
– Would it have been easier if the second group had the instructions?
– Architecture diagram similarity
– Did you really understand the business requirements (given you work for the business we expected you would)
23
Next stage of the exercise
– To stay competitive in the Race industry whilst controlling costs we:
– Can no longer make all the car components and we have to buy them in from various sources and assemble them as a race car
– We need to be constantly in control of all the suppliers to make sure they deliver on time, to quality and collaborate when needed when interoperability of components is required across suppliers
– We can not accept supplier non performance as this business is so time critical hence we need to be able to switch suppliers with minimal notice and disruption
– We recognise that our business is racing and not IT. So we will employ an IT company to do real time analytics on all our race data to ensure we continually improve and win races. This will be sourced via an IT Cloud based solution
– The race industry is highly competitive and we need to keep all our latest development secure and not available to the competition
– If our success continues we want to compete in multiple types of racing (Formula 1 , Formula E, Rally Cross, Oval (NASCAR) etc
– We believe our strength is our team
– We believe we can be successful in any of the above
– We do not have the technology for all the above vehicles and hence will have to buy in pre built vehicles
– Would your solutions meet be capable of meeting the above requirements?
24
So what have we just seen and how does it relate to IT ?
25
So what have we just seen and how does it relate to IT ?
26
Control of all the suppliers
SIAM
Building from Common
Components
Service Integrator
Our business is Racing
Cloud
The race industry is
competitiveSecurity
Buying in pre build vehicles
Brokerage
Typical look at the business of IT still has silosAnalyze and understand how to support the business by initiative
Velocity / requirements
Process
ToolCore IT
CloudProcess
Tool
DevOpsProcess
Tool
SecurityProcess
Tool
Multiple Suppliers / SIAM
Process
Tool
MobilityProcess
Tool
Conte
xt / use c
ase
Looking at IT4IT through the Value Chain lens One IT4IT or many ?
Process
Tool
Core IT
Cloud
Process
Tool
DevOps
Process
Tool
SIAM
Process
Tool
Security
Process
Tool
Mobility
Process
Tool
Service
Portfolio
Component
Portfolio
Demand
Component
Proposal
Component
Policy
Component
Defect
Component
Requirement
Component
Project
Component
Test
Component
Build
Component
Source Control
Component
Change
Control
Comp.
Problem
Component
Incident
Component
Event
Component
Diagnostics &
Remediation
Component
Usage
Component
Chargeback /
Showback
Comp.
Strategy to
PortfolioRequirement to Deploy Request to Fulfill Detect to Correct
Offer Mgmt.
Component
Offer Consumption Component
Service
Archite-
cture
PolicyRequire-
ment
Scope
Agree-
ment
IT
Initiative
Portfolio
Backlog
Item
Source
Conceptual Service
Blueprint
Concep-
tual
Service
Logical
Service
Blueprint
Test
Case
Defect
Offer
Service
Release
Build
Service
Catalog
Entry
Desired
Service
Model
Usage
Record
Fulfill-
ment
Request
Sub-
scription
Charge-
back
Contract
Request
Problem/
Known
Error
Incident
Event
Service
Monitor
Run
Book
RFC
Service
Monitoring
Comp.
Catalog
Composition
Component
Shopping
Cart
Enterprise
Architecture
Component
Service
Design
Component
Fulfillment
Execution
Comp.
Request
Rationalization
Component
Configuration
Management
Component
Release
Composition
Component
Service Level
Component
Service
Contract
Actual
Service
CIs
Service
Release
Blueprint
Build
Package
Build Package
Component
One Lens, One Architecture, Many PerspectiveApplying IT4IT
Process
Tool
Core IT
Cloud
Process
Tool
DevOps
Process
Tool
SIAM
Process
Tool
Security
Process
Tool
Mobility
Process
Tool
Service
Portfolio
Component
Portfolio
Demand
Component
Proposal
Component
Policy
Component
Defect
Component
Requirement
Component
Project
Component
Test
Component
Build
Component
Source Control
Component
Change
Control
Comp.
Problem
Component
Incident
Component
Event
Component
Diagnostics &
Remediation
Component
Usage
Component
Chargeback /
Showback
Comp.
Strategy to
PortfolioRequirement to Deploy Request to Fulfill Detect to Correct
Offer Mgmt.
Component
Offer Consumption Component
Service
Archite-
cture
PolicyRequire-
ment
Scope
Agree-
ment
IT
Initiative
Portfolio
Backlog
Item
Source
Conceptual Service
Blueprint
Concep-
tual
Service
Logical
Service
Blueprint
Test
Case
Defect
Offer
Service
Release
Build
Service
Catalog
Entry
Desired
Service
Model
Usage
Record
Fulfill-
ment
Request
Sub-
scription
Charge-
back
Contract
Request
Problem/
Known
Error
Incident
Event
Service
Monitor
Run
Book
RFC
Service
Monitoring
Comp.
Catalog
Composition
Component
Shopping
Cart
Enterprise
Architecture
Component
Service
Design
Component
Fulfillment
Execution
Comp.
Request
Rationalization
Component
Configuration
Management
Component
Release
Composition
Component
Service Level
Component
Service
Contract
Actual
Service
CIs
Service
Release
Blueprint
Build
Package
Build Package
Component
Service
Portfolio
Component
Portfolio
Demand
Component
Proposal
Component
Policy
Component
Defect
Component
Requirement
Component
Project
Component
Test
Component
Build
Component
Source Control
Component
Change
Control
Comp.
Problem
Component
Incident
Component
Event
Component
Diagnostics &
Remediation
Component
Usage
Component
Chargeback /
Showback
Comp.
Strategy to
PortfolioRequirement to Deploy Request to Fulfill Detect to Correct
Offer Mgmt.
Component
Offer Consumption Component
Service
Archite-
cture
PolicyRequire-
ment
Scope
Agree-
ment
IT
Initiative
Portfolio
Backlog
Item
Source
Conceptual Service
Blueprint
Concep-
tual
Service
Logical
Service
Blueprint
Test
Case
Defect
Offer
Service
Release
Build
Service
Catalog
Entry
Desired
Service
Model
Usage
Record
Fulfill-
ment
Request
Sub-
scription
Charge-
back
Contract
Request
Problem/
Known
Error
Incident
Event
Service
Monitor
Run
Book
RFC
Service
Monitoring
Comp.
Catalog
Composition
Component
Shopping
Cart
Enterprise
Architecture
Component
Service
Design
Component
Fulfillment
Execution
Comp.
Request
Rationalization
Component
Configuration
Management
Component
Release
Composition
Component
Service Level
Component
Service
Contract
Actual
Service
CIs
Service
Release
Blueprint
Build
Package
Build Package
Component
Service
Portfolio
Component
Portfolio
Demand
Component
Proposal
Component
Policy
Component
Defect
Component
Requirement
Component
Project
Component
Test
Component
Build
Component
Source Control
Component
Change
Control
Comp.
Problem
Component
Incident
Component
Event
Component
Diagnostics &
Remediation
Component
Usage
Component
Chargeback /
Showback
Comp.
Strategy to
PortfolioRequirement to Deploy Request to Fulfill Detect to Correct
Offer Mgmt.
Component
Offer Consumption Component
Service
Archite-
cture
PolicyRequire-
ment
Scope
Agree-
ment
IT
Initiative
Portfolio
Backlog
Item
Source
Conceptual Service
Blueprint
Concep-
tual
Service
Logical
Service
Blueprint
Test
Case
Defect
Offer
Service
Release
Build
Service
Catalog
Entry
Desired
Service
Model
Usage
Record
Fulfill-
ment
Request
Sub-
scription
Charge-
back
Contract
Request
Problem/
Known
Error
Incident
Event
Service
Monitor
Run
Book
RFC
Service
Monitoring
Comp.
Catalog
Composition
Component
Shopping
Cart
Enterprise
Architecture
Component
Service
Design
Component
Fulfillment
Execution
Comp.
Request
Rationalization
Component
Configuration
Management
Component
Release
Composition
Component
Service Level
Component
Service
Contract
Actual
Service
CIs
Service
Release
Blueprint
Build
Package
Build Package
Component
Service
Portfolio
Component
Portfolio
Demand
Component
Proposal
Component
Policy
Component
Defect
Component
Requirement
Component
Project
Component
Test
Component
Build
Component
Source Control
Component
Change
Control
Comp.
Problem
Component
Incident
Component
Event
Component
Diagnostics &
Remediation
Component
Usage
Component
Chargeback /
Showback
Comp.
Strategy to
PortfolioRequirement to Deploy Request to Fulfill Detect to Correct
Offer Mgmt.
Component
Offer Consumption Component
Service
Archite-
cture
PolicyRequire-
ment
Scope
Agree-
ment
IT
Initiative
Portfolio
Backlog
Item
Source
Conceptual Service
Blueprint
Concep-
tual
Service
Logical
Service
Blueprint
Test
Case
Defect
Offer
Service
Release
Build
Service
Catalog
Entry
Desired
Service
Model
Usage
Record
Fulfill-
ment
Request
Sub-
scription
Charge-
back
Contract
Request
Problem/
Known
Error
Incident
Event
Service
Monitor
Run
Book
RFC
Service
Monitoring
Comp.
Catalog
Composition
Component
Shopping
Cart
Enterprise
Architecture
Component
Service
Design
Component
Fulfillment
Execution
Comp.
Request
Rationalization
Component
Configuration
Management
Component
Release
Composition
Component
Service Level
Component
Service
Contract
Actual
Service
CIs
Service
Release
Blueprint
Build
Package
Build Package
Component
Addressing the silosApply the Reference Architecture consistently to all areas
Velocity / requirements
Process
ToolCore IT
CloudProcess
Tool
DevOpsProcess
Tool
Multiple Suppliers / SIAM
Process
Tool
SecurityProcess
Tool
MobilityProcess
Tool
Conte
xt / use c
ase
Service
Portfolio
Component
Portfolio
Demand
Component
Proposal
Component
Policy
Component
Defect
Component
Requirement
Component
Project
Component
Test
Component
Build
Component
Source Control
Component
Change
Control
Comp.
Problem
Component
Incident
Component
Event
Component
Diagnostics &
Remediation
Component
Usage
Component
Chargeback /
Showback
Comp.
Strategy to
PortfolioRequirement to Deploy Request to Fulfill Detect to Correct
Offer Mgmt.
Component
Offer Consumption Component
Service
Archite-
cture
PolicyRequire-
ment
Scope
Agree-
ment
IT
Initiative
Portfolio
Backlog
Item
Source
Conceptual Service
Blueprint
Concep-
tual
Service
Logical
Service
Blueprint
Test
Case
Defect
Offer
Service
Release
Build
Service
Catalog
Entry
Desired
Service
Model
Usage
Record
Fulfill-
ment
Request
Sub-
scription
Charge-
back
Contract
Request
Problem/
Known
Error
Incident
Event
Service
Monitor
Run
Book
RFC
Service
Monitoring
Comp.
Catalog
Composition
Component
Shopping
Cart
Enterprise
Architecture
Component
Service
Design
Component
Fulfillment
Execution
Comp.
Request
Rationalization
Component
Configuration
Management
Component
Release
Composition
Component
Service Level
Component
Service
Contract
Actual
Service
CIs
Service
Release
Blueprint
Build
Package
Build Package
Component
HPE IT value chain lens changes how you execute
31
Source Offer ManagePlan
Strategy
to Portfolio
Requirement
to DeployRequest
to Fulfill
Detect
to Correct
I want to decide between build, buy or broker to deliver services
I want to aggregate services from suppliers into my catalog
I want to provide a service marketplace and track usage
I want to manage suppliers to deliver rapid & effective resolution
Service integrator
I want to maximize efficiency across my service portfolio
I want to prepare patches for updates to my running services
I want automatic request fulfilment and offer pay-on-use pricing
I want to predict events and automatically remediate incidents
Service supplier
I want to build a new service or enhance an existing one
I want to incrementally build and release new features
I want to publish my enhanced services in a service marketplace
I want to quickly identify and fix problems and defects
Service broker
Real life examples
32
Taking away pain…just happens to be IT4IT – Global Finance
True Business
Pain identified
Use Cases associated with pain
Potential value
identified
Agile approach
Regular value
delivered
IT reputation improved
Business Pain
removed
IT4IT was almost incidental The focus was on removing pain
Regular delivery of value keeps stakeholders engaged
Business
Operation
Disruption
IT4IT as the end goal (Global FMCG example)
Fantastic Architecture
Superb road maps
Happy Architects
IT not delivering the value
Unhappy business
IT4IT viewed as the end goal rather than supporting the end goalIT4IT evangelist
Without adoption value will not be realisedNo mention of Value
Focusing on Value Stream optimisation – Global Hi Tech Electronics
Tools deep dive
Identified broken value
streams
Increment Improve
Optimise Value
Streams
18 Month Road Map
Reduced waste
IT4IT value stream optimisation keyOver Optimisation leads to systemic waste
Identifying the missing basics
Optimized
Tools
Factor of 11,000 reduction of security events Arcsight ESM with D2C
Talk this language – Business and IT Execs listen !
50% faster release of applicationsContinuous Release & Deployment with R2D
30% business continuity improvement Closed Loop Incident Management with D2C
$1,000,000+ saving on business efficiencySelf Service Automated Request Fulfilment with R2F
Detect root cause:
36h*5FTE ½h*1FTE Operations Analytics with D2C
45% Support Cost reduction Retirement of legacy applications aligned to new strategic delivery with S2P
Increase speed of fulfilment by 20% resulting in 5% increase in CSATAutomation of fulfilment Process with R2F
itSMF UK
Recommendations
37
Recommendations (continued)
Value Stream optimisation Remember over optimisation leads
to systemic waste
Formal IT4IT education is valuableWe do not need to train the world in
IT4IT
At last we have a reference architecture for running the business
of IT
But keep it in context …. Its not the law…. Its not religion
Start to have conversations with your vendors about IT4IT
Remember the standard was only released in October 2015
Start thinking value and avoid pure IT Technical “speak”
The business will always listen when you talk value
Think Big Start Small
Useful links
39
The Open Group IT4IT™ forumhttp://www.opengroup.org/IT4IT
The Open Group IT4IT™ Collaboration
Sitehttp://www.it4it.com
IT4IT™ The New Reference
Architecture for Managing the
Business of IT – Webinar (recorded) https://www2.opengroup.org/ogsys/catalog/D139
The IT4IT™ pocket Guidehttp://www.vanharen.net/9789401800303/The_IT4IT%
E2%84%A2_Reference_Architecture,_Version_2.0_%
E2%80%93__A_Pocket_Guide_(english_version)?es_
p=855690
The Open Group
IT4IT Consulting Serviceshttp://www8.hp.com/uk/en/software-solutions/it4it-
value-chain/services.html
IT4IT eBookhttp://h20195.www2.hp.com/V2/GetDocument.aspx?d
ocname=4AA5-8970ENW
Live Network (for Hewlett Packard
Enterprise Software License holders) –
full product mapping to IT4IThttps://hpln.hpe.com/
Hewlett Packard Enterprise
Thank you and Questions
40
