Session 204: Service & Support in the era of Digital Transformation

Session 204: Service & Support in the era of Digital Transformation

Cross-Domain Solution Architect (CDSA)Microsoft Enterprise Services

John M. Clark

John.clark@microsoft.com@CyberJMC66 @MicrosoftITSM@MicrosoftMSMhttps://www.linkedin.com/in/CyberJMC66

The fourth industrial revolution has been characterized by

the World Economic Forum as “a fusion of technologies that

is blurring the lines between the physical, digital, and

biological spheres.”

https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/

=

Digital Disruption and the 4th Industrial Revolution

1780s 1870s 1970s 2015+

.

Becoming a digitally mature enterprise…key learnings:

Digital strategy drives digital maturity

The power of a digital transformation strategy lies in its scope and objectives

Maturing digital organizations build skills to realize the strategy

Employees want to work for digital leaders

Taking risks becomes a cultural norm

The digital agenda is led from the top

Digital Strategy, not Technology, Drives Digital Transformation

“But instead of reimagining their value proposition, many established companies are scoping transformations that merely digitize existing processes. Such companies are prey to more creative competitors - both existing and new.”

“Of course, this journey is not linear. Architecting for rapid innovation involves enabling continuous adoption of new enterprise processes, experiments with new technologies and development of new platform services.

By embracing constant change, companies can zero in on their targeted value proposition.”

MIT Research Briefing

MIT Research Briefing on Digital Transformation

9

Valu

e C

reati

on

Time

The value created by

any change decays

over time

Value Creation +

Value Destruction -

Digital Business Transformation Impact over Time

THINK

BIG

Incremental improvements will not be sufficient going forward

Go Big or Go HomeDoing Business as Usual is not an option…

FASHIONISTASRevenue: +6%

Profitability: -11%

Market Value: -12%

DIGITAL MASTERSRevenue: +9%

Profitability: +26%

Market Value: +12%

Revenue: -4%

Profitability: -11%

Market Value: -7%

BEGINNER

Revenue: -10%

Profitability: +9%

Market Value: +7%

CONSERVATIVE

Dig

ital

Cap

abili

ty

Leadership Capability

+9% Revenue Creation

+12%Market

Valuation

+26%Profitability

How digital leaders outperform their peers in every industry

Incremental

Experimental Aspirational

Evolutionary

Full Mobile

Experience

Supplier

Tools

Self-

Service v1Next Gen

Self-

Service

Phase 1

Phase 2

Phase 3

Phase 4

Phase 5

Full Stack

Team

Collaboration

Integrated

“Militant”

Automation

Modern

ITSM / ITAM

Platform

Artificial

Intelligence

Demand /

Failure

Forecasting

Service Map

Integration

EXAMPLE: Digital Transformation in ITSM

Mr. Patrick M. ShanahanDeputy Secretary of Defense

U.S. Dept of Defense GuidanceSep 2017

“Public cloud services are in the midst of a new phase, evolving from cost-cutting technologies to enablers of business agility. More than a way to cease operating data centers, the public cloud affords CIOs the ability to focus on projects that are

more strategic for the business; namely, digital transformations.”

CIO Magazine

15

OLD WORLD

Focus on planning

Compete, not collaborate

Static hierarchies

Individual productivity

Efficiency of process

Assumptions, not data

DIGITAL WORLD

Focus on delivering

Collaborate to win

Fluent and flexible teams

Collective value creation

Effectiveness of outcomes

Experiment, learn, and respond

KEY QUESTIONS…

“Digital Transformation is first and foremost a business transformation.”

CapGemini Consulting

•How does the customer experience change?

•What are some of the roles / jobs impacted in this scenario by the introduction of AI/Bot “Machine”?

•What roles are reduced/eliminated?

•What are some new roles?

•Can the entire process be automated?

•Will it ever?

QUESTIONS

IT Decision

Makers

Business

Decision

Makers

2018 IT Spend

45%

Source: IDC Futurescape, “Worldwide IT Industry 2016 Predictions”, November 4, 2015

Nearly half of all IT spend will be controlled by BDMs by 2018

BU President

CMO

VP Human Resources

COO

45%

55%

Digital Transformation purchasing is largely being driven by BDMs, not ITDMs

DNA Intermediation Disintermediation

Service Delivery Wave Based Continuous-Iteration Based

Service Stability Design for Success (HA/Redundant) Design for Failure (Resilient)

Delegation Levels IT Silos End-to-End Services

Processes In Documents, Optimized, Redesigned Self Service, Knowledge, Low Friction,

Automated

Automation Isolated, Manually Initiated Systemic, Triggered, Automatic

Monitoring Element, Fault Focused Service, End-to-End-Capability Focused

Support Service Desk / Contact Center Customer Experience / Self Service

Lifecycle N-1 or Older N, N+1

Configuration / Asset Management Discovered / Manual Configuration Prescribed, Declarative, Automated

Traditional IT Modern IT

Modern Service Management Paradigm Shift

•What are some of the IT roles / jobs impacted in this scenario by the introduction Digital Transformation?

•What roles are reduced/eliminated?

•What are some new roles?

•Can the entire process be automated?

•Will it ever?

QUESTIONS

• Fixed Budget (actually shrinking budget)

•Cost Center

•Cloud “Risk”

•DevOps “Risk”

• ...incorrect thinking...we need to change the discussion

• ...and we absolutely should not be contributing to the fear

What is the situation with Ops today?

What does “operations” usually mean today?

People

Process

Tools

NOC

Tools

Platform

Teams

ITSM

Process

Team

Help

Desk

Network Operations Center (NOC)

• Follow Documentation Steps• Reactive Break/Fix

• Proactive Task Completion

• Deployments

• Manual Monitoring

• Incident and Crisis Management • Run Bridges & Take Notes

• Call/Page People

• Watch Console

People

Process

Tools

NOC

Tools

Platform

Teams

ITSM

Process

Team

Help

Desk

Tools

• Monitoring• Tool(s)

• Rules/IP

• ITSM• Change Management

• Incident Management

• Problem Management

• Etc

• Other

People

Process

Tools

NOC

Tools

Platform

Teams

ITSM

Process

Team

Help

Desk

Platform Teams

• Network Team(s)

• Database Team(s)

• OS and Hardware Team(s)

• etc

People

Process

Tools

NOC

Tools

Platform

Teams

ITSM

Process

Team

Help

Desk

ITSM Process Teams

• Change Management

• Incident Management

• ...usually gets fuzzier from there...• Problem Management

• Service Level Management

• Configuration Management

• etc

People

Process

Tools

NOC

Tools

Platform

Teams

ITSM

Process

Team

Help

Desk

Helpdesk /Service Desk

• End-User version of the NOC• Reactive Break/Fix

• Proactive Task Completion

• Deployments

• Manual Monitoring

People

Process

Tools

NOC

Tools

Platform

Teams

ITSM

Process

Team

Help

Desk

MoMo24x7

Backstop Ops Center

Ops Programs

Ops Dev / Ops

Engineering

Legacy WorldCoordination

and MSRs

Help Desk of the Future

The Future of “Operations”

Modern Service Management

Dev Teams

Dev Teams

Dev Teams

“The secret of

change is to

focus all of

your energy

not on fighting

the old, but on

building the

new” -

Socrates

• Professional Incident Command• Supported by crazy-awesome-tooling

• Backstop for Automation• Incident...if the automated recovery failed...• Deployments...if the automated deployment failed...

• Calls/Pages...if the right people do not join the bridge within N minutes...

• Short-term manual steps...e.g. manual smoketesting until a monitoring gap is plugged...

24x7 Backstop Operations Center

• Ops” features are no different than any other app’s features• ...they should not be scared of code

• ...and they need to automate

• Ops Programs

• Ops Dev / Ops Engineering

• Integration (among Saas, Apps, Legacy, etc)

Ops Engineering

• Babysit automation

• Monitoring hub

• Incident command/backstop hub

• Deployment platform

• Log analytics hub

• etc

Ops Engineering: Hub Services

….Integration….

Ops Engineering: ITSM Tools

This opportunity is a step towards DevOps for historical operations. ...Ops getting to know an app more deeply (architecture and code levels) is always a great thing

...that means that Ops actually talks to devs

Ops Engineering: Manage Applications

Ops Engineering: Manage Everything Else…

• Horizontal Experts

• Platform Experts

• Coordination of Best Practices and Standards

• Run the Release Cadence

• Granular Accountabilities

• Accountabilities mapped to specific KPI

• Rhythm of the Business to review KPI

Coordination and Monthly Service Reviews

• Tier 0 is not the future• Fine for legacy-world issues...there is an

opportunity there

• Incorrect strategy for new-world issues. New-world issues should be eliminated by the app/service engineering teams

• Telemetry and data back into the engineering teams

Customer Experience Center (Help Desk of the Future)

• End-user training and enablement (biz value realization)

• “Wow’ing” end-users with customer service experience

• Is there still an opportunity to “do it the old way”?

• In some cities, there is still a limited market for horse-and-buggy rides (e.g. NYC Central Park), so it is likely “the old way” will be around in pockets for a long time

• Someone has to keep the lights on...• ...run old stuff at customerX until it is all gone

• ...find a company that is moving/evolving slower (brings its own risks)

• ...find an industry that is moving slower

• And even “new” apps may end up as “legacy apps” over time

Pure Legacy World…

At some point in the future. Maybe next week, or next month, or next year; this service will become legacy. And when it becomes legacy

DevOps always turns into JustOpsMichael Repperger, Senior Service Engineer in XBOX LIVE

Recommend IT Pros…

• LEARN App/Dev tools and practices as well as end to end monitoring and automation

• INTEGRATE with app teams, organize around services and/or apps –invite business teams while you are at it

• STOP being dogmatic about ITSM… Focus more on “Just enough process”. Cloud certs right now pay premiums $$$

• LEVERAGE new technologies and capabilities available from the cloud –Serverless apps don’t require development skills

• CONSOLIDATE roles, focus on cross-domain skills

• LEAD Digital Transformation initiatives – don’t forget people skills (e.g. Adoption & Change Management, TLTs, etc)

Recommendations and Resources