The Digital Transformation Journey at BMC

The Digital Transformation Journey at BMCThe TBM Perspective

Blaine Bryant, Director

IS&T Finance

Service Management Office

BMC Software© Copyright 2016 BMC Software, Inc.

© Copyright 2016 BMC Software, Inc. 3

DIGITAL TRANSFORMATIONTBM Perspective

1 Defining Digital

Digital Accelerators2

TBM - Managing Digital Services3

4 Service Management Excellence

5 Measuring Success via TBM

Leveraging technology to engage with customers in new and ever more compelling ways.

Protect and Preserve existing business from

new entrants and digital disruptors.

Leverage the power of digital technologies to Evolve and Grow new frontiers of value and sources of revenue.

Defining Digital Business

Source: “The 2016 state of Digital Transformation” - Altimeter, 2016

55%Evolving customer

behaviors andpreferences

53%Growth opportunities

in new markets

49%Increased competitive

pressure

42%New standards in

regulatory andcompliance

Top Drivers of Digital Transformation

Cloud Technology

Advanced Robotics

Autonomous Vehicles

Virtual Reality

The Internetof Everything

Blockchain

Mobile Internet

Big Data

Disruptive Technology and Experiences


1 Defining Digital






Digital Accelerators

Modern Elastic Infrastructure

Digital-EnabledEmployees

High-SpeedInnovation

1. Modern Elastic Infrastructure

Users

The Public Cloud

Core IT

3rd Party Providers

Corporate DataCenters

PrivateCloud

HybridCloud

Business Service

Software-as-a-Service (SaaS) 70%

Infrastructure-as-a-Service (IaaS) Public Cloud

46%

On-premises Private Cloud 46%

Hosted Private Cloud 41 %

Adoption of Cloud ServiceWhich of the following types of cloud services, if any, does

your organization currently use?

Source: 2016 451 Research., LLC

FY14 FY15 FY16 FY1736 19 8 4

62,000 Sq Ft 21,000 Sq Ft 9,200 Sq Ft 7,500 Sq Ft

1.6 MW 1.2 MW 740 KW 640 KW

Enabling Technologies: • True-sight Operations Manager• ITSM• Application Discovery and Dependency Manager (ADDM)• BMC Server Automation• BMC Network Automation• True-sight Capacity Optimization • BMC Cloud Lifecycle Management

$4.4Mrun-rate

reduction

Data Center Automation

© Copyright 2016 BMC Software, Inc.

BMC IT SaaS First Strategy - Applications

Sales Commissions – CallidusTaxware – Tax ExemptionSiebel (EOL)

CPQ ApttusCybersource – Credit CardHyperion

NvR – Force.comRecurly BillingIT2

FieldGlass Contractor MgmtElectronic Product Download - Akamai

Concur Travel MgmtOracle 12 eBiz

Oracle Fusion HRTaleo RecluitingiLearn – Cornerstone OnDemand

ADPAON HewittBMC HR Case Mgmt

Employee Recognition – GloboForceFidelityEmployee Digital Workplace – my.bmc.com

Chatter - SFDCSmartsheet

Mobile Applications – Force.comSharePoint Online (future)

Citizen Development – Force.comSharePoint 2013

Microsoft OneDrive for BusinessBMC MyIT

Office 365

• iOffice• Sungard Notification Mgmt

zSolutions Optimization Service Support Workload Automation Data Center Automation/Cloud Performance/AvailabilityZ E

Cloud SaasCloud - HybridOnPrem

BACKOFFICE

HUMAN RESOURCES

MANAGEMENT

IT MANAGEMENT

FACILITIESMANAGEMENT

STRATEGY MANAGEMENT

MARKETING MANAGEMENT

SALES MANAGEMENT

GLOBAL SERVICES

MANAGEMENT

SOLUTIONS

MANAGEMENT

CUSTOMER SUPPORT

MANAGEMENT

STRATEGY MARKET SELL SERVICE DEVELOP SUPPORT

Salesforce.comBMC Communities -JIVE

BMC.com – ClickabilityBMC Communities - JIVEBMC Advocate Hub - InfluitiveSprinklr – Social MediaBunchball GamaficationSAVOEloqua EngageLean DataReferenceEdgeAdobe Test & TargetAdobe Site CatalystTwistage / Vidyard

Sales Cloud – SFDCExecutive Briefing Center – SFDCPartner Relationship Management – SFDCCPQ – ApttusInsidesales.comDealmaker – TASPlan 2 WinBMC Demo CloudAccount Research

Open Air – NetSuiteBMC Academy -Cornerstone OnDemandReadyTech - IAASContract Mgmt – ApttusSalesforce.com

Request for Assistance –SFDCJIRA – AttlassianConfluence – AttlassianBeta Program – SFDCGithubBMC CLMMilkbone / ChuckWagonPerforce, CVS, VSS

Service Cloud – SFDCCoveoStarPound OCMSWalker SurveyQualtricsGainsightSkype for Business

2. Digital-Enabled Employees

Source: BMC study of 3,200 employees in 12 countries (September and December 2016)

50% of employees see their

companies as innovative

40% fear that they won’t be able to

keep up with the rate of change required by digital business

88% of employees place

responsibility for creating innovative cultures on

employers

MyITSmartOffice

UnifiedCommunication

New HireOnboarding

HR Case Management

CloudLifecycle

Management

my.bmc

On Demand DynamicMeeting sessions vs

Scheduled Conference Calls

BMC IT Driving Value of the “Digital Workplace”

BMC IS&T

Office 365with

OneDrive

Digital Lab with R&D

NexGen Products in collaboration with

R&D

HR - Employee Experience @ BMC

Collaborative Content Management in the

cloud with employee and partners

Innovation with PolyCom

Transformation Innovation

DIGITAL OFFICE @WORK


3. High-Speed Innovation

Source: Forrester’s Business Technographics® Global Developer Survey, 2015

We release many times per day 2%

We average one release per day

21%

We average one release per quarter 26%

16%

Application ReleaseHow often does your team or teams release applications?

2%

11%

10%

We average two releases a year

We average one release a year( or less frequently )

We time new releases to coincide with new versions of operating systems of middleware

Other

We average one release a month

8%We average one release a week

6%

Build Automation – Code Move

Automated Patching

Automated Environment Refresh

Password Reset Self Service

Closed Loop Incident Processing

• 80% (25K) repetitive tickets automated

• Eliminated 5,000 hours of admin work

• 10x improvement in MTTR

• 6,000 hours of productivity improvement

• 3 FTE cost avoidance

Last 20 Days Statistics Build Automation 376 Environment Refresh 22 Patching 2 Password Change 100

• Deployment frequency increased 4x

BMC IT Accelerating Application ReleasesRemedy

Control-M

Atrium Orchestrator

Customer Success Dashboards


at your fingertips…

Digital Onboarding



1 Defining Digital






• IT perceived as unnecessarily large

• True cost obscured

• Lack of alignment

• Lack of transparency

• Abundance of amnesia

• Processes labor intensive and time consuming

• Digital Service Management

TBM Challenges


• Align cost structure to digital services

• Deliver transparency and show-back

• Benchmark and manage unit costs

• Shape demand and optimize

• Leverage EPM techniques “The TBM Hallmarks”, Jesse Lee, Feb 25, 2015

Strategy: Support DSM Through TBM


BUSINESS SERVICES

TECHNICAL SERVICES

SERVERS, NETWORK DEVICES, STORAGE, ETC.

LogicalLayer

PhysicalLayer

BR

IDG

E

Digital Service Modeling

GL, FIXED ASSETS, BUDGETS, COST CENTER HIERARCHY, ETC.Financial

Layer

TBM


Brin

g IT to Life

Define Business Services


Brin

g IT to Life

Map Technical Services



1 Defining Digital






Service Management

Excellence

Enterprise Portfolio Management

Continual Service Improvement

Business Relationship Management

Service Excellence

Social and Community-based

IT Service Management

Process Excellence

Proactive Service Management

Change Management

• Project Management Office• Managing Portfolio Value• Resource, Schedule,

Budget • Risk Management

• Measurement• Reporting• Improvement

• Feedback Management• Requirements

Management• Customer Satisfaction on IT

Services

• Service Culture• Competence Management• Personal Service

• Social Media Service Channels

• Knowledge and Information Management

• Process Maturity

• Data Analytics• Identification of Repeating

Incidents

• 3-step Change Model• Release and Deployment

Management

“Service Management Excellence Framework”, Marko Jantti© Copyright 2016 BMC Software, Inc.

Project Initiation Request

Feedback Loop to Concept Development

Feedback Loop to Strategy Development

Scope Schedule Resources Risk Value

EPM Dashboard Reporting

Enterprise Portfolio Management

Data G

overn

ance C

heckp

oin

t

Data G

overn

ance C

heckp

oin

t

Data G

overn

ance C

heckp

oin

t

Alignment Intake Prioritization Planning Delivery Value Measurement

Plan Build Run

EPM @ BMC

Strategy

Major Activities

• Strategic Planning

• Scenario Planning

• Portfolio Alignment

• Value Management

Concept

Major Activities

• Idea Management

• Feasibility Analysis

• Tech/Vendor Evaluation

• Proof of Concept

Portfolio Intake

Major Activities

• Portfolio Development

• Portfolio Prioritization

• Resource Planning

• Financial Planning

Project Execution

Major Activities

• Project Management

• Process Management

• Decision Management

• Monitoring & Reporting

Service Management

Major Activities

• Service Design

• Service Transition

• Service Operation

• Service Costing


1 Defining Digital






SLA Performance

Joe Customer713-918-8800

Bu

sin

ess

Serv

ice

sWhat Is This Service?

Order Services covers most aspects of the Quote to Cash process including but not limited to the following: Provides the visibility for Executive Management to track the revenue being

generated from Orders. Offers a unique pricing structure for the Sales Reps to work with remotely. Tools that allows for highly complex orders to be entered efficiently. Allows BMC to recognize revenue on a timely and accurate basis. Provides for a Special Bids Automated approval system Customized Collections module

Cost $1,514,309

IT Cost Transparency application Functional view of IT costs

Key Cost Drivers Oracle maintenance and license fees Production Support of a customized application

What Is Included?

AR Cash Management Billing Collections Contract Agreement Order Management Financed Receivables License Key Management License Product Management Official Orders

Pricing Month/Qtr End Close Revenue Recognition Revenue Summary Sales Commissions Sales Quotes Support Contracts Support Quote Support Renewals Revenue applications

Planned Enhancements

Pricing updates Revenue Accounting Recast and

Subscription updates Support Quote expiration

updates

Licensing updates Opportunity ID updates Add Credit Limits in OE+

29%

51%

20%

Cost BreakdownNon FTE Related

Internal Labor

Project Costs

What Should You Expect?

Incident SLA See Standard Incident Management Response/Resolve SLA

Service Continuity Tier 1

See Appendix B

Incident Compliance

Critical High

96.4% 97.8%

Availability last 90 days

# of Outages last 90 days

398.6%

(Simulated Data)

Users

Corporate – Order Management (Services)


Measuring Success: Service Value


Measuring Success: Trusted PartnerEmployee Onboarding Service

36 to 4Reduction in data centers

62k to 7k

Reduction in sq ft

$24M

5-year savings

183%

5-year ROI

10x

Increase in collaboration

1.1M to 11M

Minutes used

$12M

3-year ROI in in savings

$18M

3-year savings

Increasedworkforceefficiency

+Greater

customer engagement

Efficient & effective

collaboration

Tighter integrations

New digital processes

Empowered employees

176k casesSocial Customer

Service

18k articles

Strong Search Capabilities

100%

Adoption

100%

Killed email requests

3-fold

Reduction in resolution times

146%

Increase in submitted

tickets

5 months

Business-focused Digitlal

Workplace

Data Center Consolidation &

Automation

Unified Communications

Office of the Future

Office 365 with OneDrive

Employee Digital

Experience

Customer Service

HR Case Management

MyIT

Instant Messaging for

rapid swarming on cases

Dual channel Self-Service strategy

Collaboration from Anywhere (Office,

Home, Mobile)

2.5MTotal files on

OneDrive

4,765Live Accounts

UserDriven Adoption

Measuring Success:Impacting the Cost Structure

BMC’S DIGITAL WORKPLACE

1 Focus on the organization – put people first, always

Accelerate value delivery – accent on agility and innovation2

Communicate the value story – why does the business come to us?

Give people meaningful work – automate the rest3

4

Optimize license and subscription positions – manage risks and never be surprised5

Continuing to Pursue The Digital Journey


Questions?


Thank you


Documents

The Digital Transformation Journey at BMC