Welcome!

Open Source Cloud Authors: Pat Romanski, Elizabeth White, Liz McMillan, Ed Featherston, Carl J. Levine

Blog Feed Post

Why BSM Fails to Provide Timely Business Insight

image_pdfimage_print

Business Service Management (BSM) projects have always had a reputation for over promising and under delivering. Most people know BSM as the alleged “manager of managers,” or “single source of truth.” According to the latest ITIL definition, BSM is described as:  ”The management of business services delivered to business customers.” Like much of ITIL this description is rather ambiguous.

Wikipedia however, currently describes BSM’s purpose as facilitating a “cultural change from one which is very technology-focused to a position which understands and focuses on business objectives and benefits.” Nearly every organization I talk to highlights being technology-focussed as one of their biggest challenges, as well as having a desire for greater alignment to business goals. BSM should therefore be the answer everyone is looking for… it’s just a shame BSM has always been such a challenge to deliver.

Some years ago I worked as a consultant for a small startup which provided BSM software and services. I got to work with many large organizations who all had one common goal: “to make sense of how well IT was supporting their business.” It was a tremendous learning experience for me where I frequently witnessed just how little most organizations really understand the impact major IT events had on their business. For example, I remember working with a major European telco who would have an exec review meeting on the 15th calendar day in the month, to review the previous months’ IT performance. The meeting was held on this date because it was taking 4 people 2 weeks to collate all the information and crunch them into a “mega-spreadsheet.” That’s 40 man days effort to report on the previous 30 day period!

As organizations continue to collect an increasing amount of data from a growing list of data sources, more and more organizations I talk to are looking for solutions to manage this type of “information-fogginess,” but are skeptical about undertaking large scale BSM projects due to the implementation timescale and overall cost.

Implementing BSM:

I’m sure the person who first coined the term “scope creep” must have been involved in implementing BSM, as most BSM projects have a nasty habit of growing arms and legs during the implementation phase. I dread to think how many BSM projects have actually provided a return on their substantial investments.

BSM has always been a heavily services-led undertaking as it is attempting to uniquely model and report on an organization. No two organisations are structured in quite the same way; each having its own unique IT architecture, operating model, tools, challenges and business goals. This is why BSM projects almost always begin with a team of consultants conducting lots of interviews.

Let’s look at cost of implementation for a typical deployment such as the European Telco example I described earlier. This type of project could easily expect 100 – 200 man days of professional services in order to deliver. Factoring in software license costs, training, support & maintenance costs, the project needs to deliver a pretty substantial return in order to justify the spend:

Cost of BSM implementation:

Professional services

(100-200 days @ $1800 per day)

$180,000 – $360,000

Software license

$200,000 -$500,000

Annual support and maintenance

$40,000  - $100,000

Training

$25,000

TOTAL

$445k – $985k

Now if we compare to the pre-existing cost of manually producing the monthly analysis:

Existing manual process costs:

Days per month creating reports

10

Number of people

4

Total man days effort per year

480 days

Average annual salary

$45,000

Total working days per year

225

Annual cost to generate reports

$96,000

Even with our most conservative estimates it would take almost 5 years before this organization would see a return on their investment by which time things will probably have changed sufficiently to require a bunch of additional service days in order to update the BSM implementation. This high cost of implementation is one reason why there is such a reluctance to take the leap of faith needed to implement such technologies.

The most successful BSM implementations I am aware of have typically been the smaller projects, which are primarily focused around data visualization; but with powerful open-source reporting tools such as graphite, graphiti or plotly available for free, I wonder if BSM still has a place even with these small projects today?

What does success look like?

Fundamentally, BSM is about mapping business services to their supporting IT components. However, modern IT environments have become highly distributed, with SOA architectures that have data dispersed across numerous cloud environments and it is just not feasible to map basic 1:1 relationships between business and IT functions any more. This growing complexity can only increase the amount of time and money it takes to complete a traditional BSM implementation. A simplified, more achievable approach is needed in order to fulfil the need to provide meaningful business insight from today’s complex IT environments.

In 2011 Netscape founder Mark Andreessen famously described how today’s businesses depend so heavily on applications when he wrote “software is eating the world”. These applications are built with the purpose of supporting whatever the individual business goals are. It seems logical then that organizations should look into the heart of these applications to get a true understanding of how well the business is functioning.

In a previous post I described how this can be achieved using AppDynamics Real-time Business Metrics (RtBM) to enable multiple parts of an IT organisations to access business metrics from within these applications. By instrumenting the key information points within your application code and gathering business metrics in real time such as the number of orders being placed, the amount of revenue per transaction, and more, AppDynamics can enable everyone in your organization to focus on the success or failure of the most important business metrics.

These are very similar goals to those of a traditional BSM project, however in stark contrast to every BSM project I have ever heard of; AppDynamics can be deployed in under an hour, without the need for any costly services as detailed in a previous blog post introducing Real-time Business Metrics.

Instead of interviewing dozens of people, architecting and building complex dependency models, gathering data and analyzing it all to make sense of what is happening, AppDynamics Real time Business Metrics focuses on the key metrics which matter to your business, providing focus and a common measurement for success across IT and The Business.

So before you embark on a long and costly BSM project to understand what is happening in your business, why not download a free trial of AppDynamics and see for yourself; there is an easier way!

The post Why BSM Fails to Provide Timely Business Insight written by Tom Levey appeared first on Application Performance Monitoring Blog from AppDynamics.

Read the original blog entry...

More Stories By AppDynamics Blog

In high-production environments where release cycles are measured in hours or minutes — not days or weeks — there's little room for mistakes and no room for confusion. Everyone has to understand what's happening, in real time, and have the means to do whatever is necessary to keep applications up and running optimally.

DevOps is a high-stakes world, but done well, it delivers the agility and performance to significantly impact business competitiveness.

@ThingsExpo Stories
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Vidyo, Inc., has joined the Alliance for Open Media. The Alliance for Open Media is a non-profit organization working to define and develop media technologies that address the need for an open standard for video compression and delivery over the web. As a member of the Alliance, Vidyo will collaborate with industry leaders in pursuit of an open and royalty-free AOMedia Video codec, AV1. Vidyo’s contributions to the organization will bring to bear its long history of expertise in codec technolo...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
SYS-CON Events announced today that China Unicom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...