Business Services Management: Transforming Business · partner with BMC software to implement...

Business Services Management: Transforming Business

O c t 2 0 1 2

Business Services Management: Transforming Business | Oct 2012

© 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.

TABLE OF CONTENTS

Contents

Abstract ............................................................................................. 3

Abbreviations .................................................................................... 4

Business Service Management ........................................................ 5

Understanding Business Services .................................................... 5

Creating a BSM capable organisation .............................................. 7

Wrong use of the term BSM ............................................................ 10

Conclusion....................................................................................... 11

Reference ........................................................................................ 12

Author Info ....................................................................................... 12



3

Abstract

Organizations ranging from Aerospace to heavy

engineering are relying on IT to deliver their products

and service. The main objective of BSM is to align their

IT process to the correct set of business goals. This

streamlines the operations of the organization and helps

it migrate to services on cloud, reduce IT redundancy

and in turn deliver better quality to their customers in a

lesser time.



4

Abbreviations

Sl. No. Acronyms (Page No.) Full form

1. BSM Business Services

Management

2. CMDB Configuration

Management

Database

3. ISD Infrastructure

division

4. SaaS Software as a

Service



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Business Service Management

IT enables business. From aerospace to online email platforms, a robust IT infrastructure helps

businesses across a multitude of domains, to meet their business goals. And at this juncture comes

the question of how well is IT doing its job and what can be done to bridge the gap between

expectation and reality.

Senior management and decision makers in the industries like aerospace, automotive, consumer

appliances etc. consider investments into IT as necessary evil and rightly so. Investments made into

IT don‘t always yield returns. Companies pumped in millions of dollars in building IT infrastructure

only to find that it solves only 20% of their issues. Applications not keeping up with the changing

demands of business, constant upgrades and data migration projects together are enough reason for

management to be apprehensive about investing in IT.

This is where BSM steps in. Any organization has numerous business services which implement the

business objectives. The main objective of BSM is to align the IT process to their correct set of

business goals and hence do away with redundancy. On a high level, BSM externalizes the role of IT

in the business and attempts to make it predictable, systematic and repeatable.

Understanding Business Services

Business services are the primary revenue generating activities performed by a business. For

example, financial services (banking, insurance etc.), technology services (information technology,

R&D etc.), human resource services (staffing, job allocation, payroll etc.); these are all examples of

some common business services which enable a business to become a value creation enterprise.

Business domains have their unique service needs and opportunities and an understanding of these is

the first step towards initiating a BSM initiative.



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Service opportunities across various industries are:

Aerospace - Characterised by long product life cycle, regulatory requirement for parts and

logged asset track and trace. So it‘s a huge market opportunity with a limited channel

dependence which enables players to exploit the service life cycle.

Industrial - Characterised by large complex assets with predictable mobility, track and trace

along with a long product life cycle and availability of good information. So has a potential

for captive service market exploitation using controlled distributors/dealer network.

Automotive - Characterised by mobile assets, channel dependent service and rapid product

introductions. Has a complex value chain, from tiered suppliers to service provider and

hence has potential need for integration and optimization.

Consumer appliances - Characterised by household usage i.e. fixed asset with predictable

usage. Also this domain sees rapid product variants launched in short durations and this

sector is relatively simple to analyse. So it relies on channel for reach and execution of

service requirements.

Utility industry - Characterised with fixed assets with a long life cycle, predictable service

patterns and perfect information availability. Hence third party service providers work on

‗complete outsourcing‘ models, using field force optimization as the driver.

Expectations from what IT can deliver have greatly increased. IT is expected to not just be an

enabler but to also measure and report service quality using metrics. IT is expected to not just be a

measurement and reporting process, but is also expected to provide feedback about the efficiency of

the business based on operation's data.

And this is BSM. And BSM has the following drivers:

Business Services Availability: This implies service guarantees throughout the length and

breadth of the organisation. Some business processes are cardinal to the organisation and these

are regarded as the core processes and usually they tend to spread across multiple applications

and business departments. For example, activating a new mobile phone account triggered by a



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specific marketing campaign involves over 80 process steps and several separate business

applications. Business expects IT to be able to mirror this perspective and understand the impact

of their IT infrastructure on this kind of process definition.

Quality: The perception of IT in user terms now counts for the most as they require information

in their business process terms.

Relevant IT: Mapping business to the IT infrastructure. New technologies that have hit the

market over the past 24 months have made it possible to directly associate business services

with the behaviour and performance of IT infrastructure components. The tools can even

monitor these associations on a dynamic basis — which is important when the data center

encompasses dynamic provisioning and virtualization technologies. The technology itself

supports application mapping, but business users can define the linkage between apps and

enterprise wide business services themselves.

BSM is not just some tools which can be bought and used to implement BSM in the organisation.

It‘s more of an outlook. It‘s about having the business point of view to exploit the investment in

BSM tools. And that calls for BSM expertise and consultancy. For example, in the IT captive of a

heavy engineering products manufacturer, an operational level employee should know that he or she

is not in the business of running SQL but rather in the business of selling tractors and so forth.

The key is that every business is different and hence the strategy of every business is also different.

That has a direct implication that their IT needs and requirements are also different. And hence the

applicability and acceptability of BSM in any organisation needs an experienced consultant‘s view

point.

Creating a BSM capable organisation

Service Model: A configuration management database (CMDB) along with mapping and

modelling tools is cardinal to have a 360 degree view of services based on a Unified Service

Model and hence link the service through the contributing technology. A CMDB collects

component level information related to an information system. This is also called CI -

configuration items, of IT infrastructure. This makes it possible to maintain the integrity of



8

the service throughout the life cycle of the service. HCL Technologies is a strategic alliance

partner with BMC software to implement Atrium CMDB.

Infrastructure: IT Infrastructure for an organisation is optimized by improving IT policies,

processes, capacity, equipment, availability planning, data, application performance, human

resources, workload automation, external contacts and disaster recovery.

HCL Technologies Infrastructure Service Division (HCL ISD) is an end to end owner of IT

Infrastructure through differentiated value proposition ―Industrialized IT Management‖. The

concept of Industrialization is truly based with cloud computing as one of the platform of

delivering that service. What the customer gets is optimized, Flexible, Centralized &

Standardized & business aligned IT. Key service offering include: end-user computing,

datacentre & Mainframe services, integrated operations management service, Cross

Functional services, Security & Network Services and Cloud Computing Services. HCL

ISD evolved from being a pure play IT Operations to a transformational player offering

"Plan – Design - Implement – Operate – Optimize" services across all the elements of IT

Infrastructure Lifecycle. This includes services such as Data Centre Design, Migration &

Rollout Planning, Process Design, Service Delivery Structure Design, Implementation &

Rollouts as well as Day to Day Operations across the entire range of Infrastructure Elements

such as Servers, Storage, Mainframes, Databases, End User Devices, Network Devices,

Security Devices, Web Services, Applications, Mainframes, Infrastructure Applications &

Process and Tools.

HCL ISD service delivery approach is governed by cross functional services comprising of

the set of activities performed across all the service elements to ensure process adherence,

standardization, serviceability and availability of all the components of that service tower

being delivered. The cross functional services comprise of the following service elements:

Service Management, Governance and Reporting, Knowledge Management.

Outsourcing: BSM is sometimes misinterpreted. It‘s not about protecting the IT but rather

optimizing and utilizing IT. So if the organization is not competent in any of the enabling

domains like networks for example, it should get the right domain experts to run it for them.



9

SaaS: Software as a service and BSM are intimately related. BSM can be implemented with

or without SaaS but vice versa is not possible. BSM is a fundamental step in implementing

SaaS. For large and old organizations, more often than not, IT exists in silos. But for SaaS

implementation, by definition, service is provisioned with minimal access to the supporting

infrastructure. For new companies that‘s not the case as they start with a SaaS architecture.

So for companies existing in Silo, they need to implement BSM first aided by the enabling

set of tools and applications. Leading software vendors are all incorporating SaaS and

transforming their key offerings to support the services business model.

SaaS and On-Demand software solutions bring a number of benefits. Steady revenue

streams, access to hitherto untapped markets and reduction in Total Cost of Ownership for

their end customers to name but a few. With their end customers now being service users,

software vendors can also engage more closely with them, understand requirements &

deliver products and services that are closer to customer needs and uniformly up to date

across the entire customer base.

However, the journey towards enabling, running and managing a successful SaaS business

model comes with its own set of complexities. SaaS takes finite amount of time but

demands a multitude of skills.

HCL‘s SaaS practice brings together SaaS Consulting & Enablement, Software Product

Engineering, Managed Services, Hosting and Infrastructure Management expertise, along

with HCL‘s proprietary Service Delivery Platform ‗Agora‘, that help craft a complete SaaS

enablement and delivery solution and make On-Demand services model adoption seamless



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Moving IT from chaotic to proactive: Seen as a part of the larger picture, a need emerged to make

business sense of IT services. For example:

Looking at the above statistics, each of the individual sub-IT departments may claim excellent

uptime figures but from the point of view of the user, it‘s a different story altogether. IT maturity is

all about moving from managing IT in silos to a more proactive management of IT.

Wrong use of the term BSM

The term BSM has been frequently used and misused and so the customers are sometimes get fickle

messages from the vendors. An estimated 117 vendors leverage terms like BSM directly in their

marketing theme but the inconsistency and gap between the theme and the service offerings makes

their proposition difficult to understand. BSM cannot be a superficial concept. By definition, BSM

has to be perceptible. There are numerous failed cases of implementation of BSM but that shouldn‘t

cause apprehension because if done correctly it is a major milestone and analogously there are

numerous cases of success for example that of Deutsche Bank with their Novell roll out of Managed

objects technology.



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Conclusion

So is BSM for you? If you are either an organization struggling with ramping up your operations or

an organization interested in syncing up with the next wave of technology, then BSM is a stepping

stone to your goal. Your IT department can no longer keep on doing what it was doing before, i.e.

managing applications and services. Now it has to connect technology components to their

respective business services within the infrastructure. And in doing so, the focus of IT will shift from

a technology enabler to a service enabler oriented to the business goals of your organization.



12

Reference

www.hcl.com

Author Info

Akhil Munjal is a part of consulting team at

HCL Engineering and R&D division and his

expertise is in strategy and technology

Hello, I’m from HCL’s Engineering and R&D Services. We enable technology led organizations to go to market with innovative products and solutions. We partner with our customers in building world class products and creating associated solution delivery ecosystems to help bring market leadership. We develop engineering products, solutions and platforms across Aerospace and Defense, Automotive, Consumer Electronics, Software, Online, Industrial Manufacturing, Medical Devices, Networking & Telecom, Office Automation, Semiconductor and Servers & Storage for our customers.

For more details contact [email protected]

Follow us on twitter: http://twitter.com/hclers

Visit our blog: http://ers.hclblogs.com/

Visit our website: http://www.hcltech.com/engineering-services/

About HCL

About HCL Technologies

HCL Technologies is a leading global IT services company, working with

clients in the areas that impact and redefine the core of their

businesses. Since its inception into the global landscape after its IPO in

1999, HCL focuses on ‘transformational outsourcing’, underlined by

innovation and value creation, and offers integrated portfolio of

services including software-led IT solutions, remote infrastructure

management, engineering and R&D services and BPO. HCL leverages its

extensive global offshore infrastructure and network of offices in 31

countries to provide holistic, multi-service delivery in key industry

verticals including Financial Services, Manufacturing, Consumer

Services, Public Services and Healthcare. HCL takes pride in its

philosophy of ‘Employees First, Customers Second’ which empowers

our 85,335 transformers to create a real value for the customers. HCL

Technologies, along with its subsidiaries, had consolidated revenues of

US$ 4.3 billion ( 22,471 crores), as on 30th September 2012 (on LTM

basis).

For more information, please visit www.hcltech.com

About HCL

HCL is a $6.2 billion leading global technology and IT enterprise

comprising two companies listed in India – HCL Technologies and HCL

Infosystems. Founded in 1976, HCL is one of India's original IT garage

start-ups. A pioneer of modern computing, HCL is a global

transformational enterprise today. Its range of offerings includes

product engineering, custom & package applications, BPO, IT

infrastructure services, IT hardware, systems integration, and

distribution of information and communications technology (ICT)

products across a wide range of focused industry verticals. The HCL

team consists of over 90,000 professionals of diverse nationalities, who

operate from 31 countries including over 500 points of presence in

India. HCL has partnerships with several leading global 1000 firms,

including leading IT and technology firms.

For more information, please visit www.hcl.com

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