IT Asset Management
FT Prentice Hall FINANCIAL TIMES
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IT Asset Management How to manage your IT equipment
ALEX SEFKE
FT Prentice Hall FINANCIAL TIMES
IT B RIEFINGS ’ S ERIES EDITOR : S EBASTIAN N OKES
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First published in Great Britain in 2003 © Pearson Education Limited 2003 The right of Alex Sefke to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. ISBN 0 273 66298 8 British Library Cataloguing in Publication Data A CIP catalogue record for this book can be obtained from the British Library. All rights reserved; no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without either the prior written permission of the Publishers or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1P 4LP. This book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in which it is published, without the prior consent of the Publishers. 10 9 8 7 6 5 4 3 2 1 Typeset by Monolith – www.monolith.uk.com Printed and bound in Great Britain by Ashford Colour Press Ltd, Gosport, Hants. The Publishers’ policy is to use paper manufactured from sustainable forests.
About the author
Alex Sefke moved into IT business about 15 years ago from a career in financial and commercial management. Having initially concentrated on network design and hardware distribution, he refocused his company to IT consultancy and software development in the early 1990s. As a senior consultant, Alex specialized in service management, working for international companies such as GE, Lufthansa Systems, Deutsche Bank and Mannesmann. Within the field of service management he gained particular recognition in the area of service centres and help desks, including the application and design of workflow and customer relationship management systems. Among the numerous service centre projects Alex has designed and implemented have been multilingual helpdesks operated 24 hours a day, seven days a week and which are seamlessly integrated into the service and production supply chains. Over the past three years Alex has held directorships in operational and strategic roles within SITA, a global telecommunications and network provider focused on the air transport community. These roles included the service and process design, implementation and operation of major airlines’ outsourced global managed services. Currently leading the Programme Office, Alex presently focuses on strategic and tactical operations such as the design and subsequent implementation of operational services models for desktop-related IT products in the airport. His role in senior management covers not only the more theoretical design of service processes but also the practical proof of such concepts in implementation and operation. Meanwhile, at the Newcastle University, Alex is also conducting research within the field of technology management, where his work has specialized in IT asset management and its impact on financial performance and competitive advantage. Alex may be contacted via
[email protected] or
[email protected] v
About the series editor
Sebastian Nokes is Series Editor for the IT Management series within the Financial Times Prentice Hall Executive Briefings and has written and co-written several works on the subject. These Briefings are designed to provide concise, focused knowledge, concerning critical IT issues facing managers today. They deliver the information and insight needed to evaluate situations and make informed decisions. Sebastian is a partner at Kimbell Evaluation Ltd, a leading consulting and analytical firm. Kimbell Evaluation was co-founded by Sebastian and helps clients measure and manage value added by information technology, both in stable organizations and in business or divisional turnarounds. His consulting clients include international financial institutions and commercial corporations. Sebastian began his career in the IT and investment banking industries, and has been an employee of Credit Suisse First Boston and IBM. He was educated at London University, served in the 2nd KEO Goorkhas, and holds finance and engineering qualifications. Sebastian may be contacted via
[email protected] vii
Contents
List of definitions
xi
List of figures
xii
List of tables
xiii
Preface
xv
1
2
3
4
Introduction
1
Terminology IT asset management programmes IT asset management and ‘traditional’ asset management
3 5 7
Management context
9
The need for IT asset management Supply chain management IT asset life cycle Service and support strategy IT strategy IT asset strategy
11 14 16 19 20 23
IT asset management services
29
IT asset management services model Inventory management Configuration management Change management Order processing Contract management
31 33 43 56 60 64
Financial aspects
69
Property accounting Budget and cost control Potential cost savings
71 72 73
ix
Contents
5
6
7
8
x
Reporting
77
Definition and outline Data sources Data analysis Report production Sample report
79 81 84 84 85
Organizational structure
91
Impact of ITAM Roles and responsibilities
93 94
Technology
105
Management approaches Layers of information Asset tags Tool requirements Solutions
107 109 111 113 115
Implementation plan
119
Due diligence Implementation plan
121 123
Appendix: ITAM data table
135
Bibliography
149
Definitions
1
IT asset management
3
2
ITAM programme
3
3
Assets
4
4
Configurations
4
5
Inventory
4
6
Change
5
7
IT asset life cycle
16
8
Inventory management
33
9
Configuration management
43
10 Change management
56
11 Order processing
60
12 Contract management
64
13 Reporting
79
xi
Figures
xii
2.1 Integrated supply chain
14
2.2 Components of customer service
16
2.3 IT asset life cycle
17
2.4 Managed life cycle
18
2.5 Derivation of strategy
21
2.6 Generic strategies
21
2.7 Development of strategies
22
2.8 Design IT asset strategy
25
3.1 IT asset management services model
32
3.2 Factors impacting inventory
36
3.3 Recursive configuration data structure
46
3.4 Sample structure
47
3.5 Development of new configurations
49
3.6 Integration of new software or component
50
3.7 Dependencies of purpose, objective and scope
52
3.8 Contract management
66
5.1 Report implementation
81
5.2 Data links
83
5.3 Data analysis matrix
84
5.4 Report generation overview
86
6.1 ITAM organizational structure
93
7.1 Push and pull approach
107
7.2 Layers of information
110
7.3 eTag General information
112
7.4 eTag Help information
113
7.5 Push and pull management
115
Tables
1.1
Maturity of ITAM programmes
6
2.1
Management advantages linked to ITAM
13
3.1
Service deliverables for asset administration
38
3.2
Service deliverables for asset record updating
40
3.3
Service deliverables for software licence management
41
3.4
Service deliverables for quality assurance
42
3.5
Service deliverables for reporting
43
3.6
Sample configuration
51
3.7
Purpose, objective and scope dependency examples
53
3.8
Service deliverables for configuration management
54
3.9
Service deliverables for change management
59
3.10 Service deliverables for order management
61
3.11 Service deliverables for logistics
64
3.12 Service deliverables for contract management
67
4.1
Controlling IT costs
73
4.2
Cost impact of ITAM
75
7.1
Push and pull limitations and advantages
108
7.2
Checklist for tracking system customization
117
8.1
Service deliverables for wall-to-wall inventory
122
8.2
Preliminary service deliverables for ITAM implementation
123
8.3
ITAM programme implementation checklist
125
8.4
ITAM programme compliance checklist
132
A1
ITAM data table
136
xiii
Preface
During the course of positions held in senior management, both in IT operations and projects, I came across an absence of common terminology and general understanding of IT asset management. Despite an individual, detailed knowledge of underlying issues and requirements, conceptualization and communication were hampered through this lack of a common view of IT asset management services which is capable of being shared. This book attempts to outline a terminology and a set of definitions for IT asset management, using a framework of five main components. It is not intended to override existing different definitions, but to provide a baseline for a corporate understanding of IT asset management and the services involved. I would like to express my thanks to my colleagues at SITA London, Montreal and Frankfurt, who have supported me with their invaluable feedback and input, and in particular to Darrell Frith of SITA for his professional contribution and support.
xv
1 Introduction
■
Terminology
■
IT asset management programmes
■
IT asset management and ‘traditional’ asset management 7
3 5
1
Introduction
TERMINOLOGY IT asset management is often referred to as configuration or inventory management. In particular in the UK, asset management is often understood as an accounting discipline rather than as a managed set of services. However, within a holistic approach, configuration and inventory management are – like property accounting – services or applications within the context of the management of IT assets. IT asset management hence marks a wider scope and is intended to integrate processes and procedures on a corporate level or provide information to other disciplines via access to data repositories. Despite other terminologies in use, the term ‘IT asset management’ is widely used within the context of IT service management. From here on within this book IT asset management is referred to as ‘ITAM’. Definition 1: IT asset management IT asset management (ITAM) is understood as a set of services, which may be utilized internally or provided to customers. ITAM services are built on processes in order to track technical, commercial and financial data associated with IT assets. ITAM focuses on all assets which are available to an organization as means for internal processes or as part of contracted services. ITAM covers the entire life cycle of assets. Within a corporate environment ITAM is usually understood as a set of services, supported by technology, which help IT organizations to accurately take inventory of assets and configurations. ITAM allows for the management of these assets through the various stages of their time in service, i.e. their life cycles. From the point of view of organizational structure, ITAM may also be referred to as a set of policies, roles and responsibilities which are adhered to and carried out by individuals and hence determine an organizational function or role. Increasingly organizations include ITAM functions in their organizational structure. All of the above are encompassed by an ITAM programme, which is designed prior to the implementation of ITAM services and is maintained after implementation as an ITAM policy. The maintenance of the ITAM programme is a managerial function, which – depending on the impact of ITAM on an organization’s business and its size – will be integrated into the organization’s structure. This integration can be achieved through the design of dedicated roles and responsibilities or through the integration of ITAM functions into existing roles and responsibilities. Definition 2: ITAM programme An ITAM programme encompasses processes and policies, which are delivered through procedures, carried out through roles and responsibilities, supported by
3
IT Asset Management
a technology. An ITAM programme incorporates the commercially relevant life cycle management, e.g. from purchase to disposal on a corporate/global basis. Definition 3: Assets IT assets are all valuable items, irrespective of material evaluation and ownership, which physically or in the form of licences and rights are at an organization’s disposal for purposes of information technology. Assets may be assigned to other assets or contain other assets. Assets are grouped into categories, types and items, whereby items mark unique, physically identifiable assets. Ownership and evaluation of assets may be relevant for organizational entities to determine the level of management required. However, all assets which are in use or are available to use have to be considered from a management perspective, that is in terms of handling, maintaining and support for these assets during their life cycles. Definition 4: Configurations Configurations are combinations of assets which form a functional unit, offering a defined functionality and integration within parameters which allow an understanding of the relationships and dependencies among components. Configurations may be valid for a number of assets, an asset type may be valid for numerous configurations, but a single, uniquely identified asset may have only one configuration at any point in time. Assets are set up for a particular purpose through configurations. All assets in use within an organization have a specific configuration. Configurations may vary, for example following new or altered requirements or technical changes, and hence may exist in a number of different versions. Definition 5: Inventory The inventory lists all IT assets available to an organization, be they installed, in stock or shipped. All parts of the inventory are associated with physical, contractual and financial data, which uniquely identify equipment and establish an organizational context. Inventory comprises physical assets, rights and licences. The inventory lists all assets, possibly grouped on a department, contract or customer basis, which are available for internal use or for service provision to customers. Not restricted to ‘owned’ assets, this inventory goes far beyond property accounting, as it will contain all equipment which is at an organization’s disposal for IT purposes. The inventory provides information about what equipment is where and what its status is with respect to the life cycle. Physical inventory data is frequently linked to demographic data to achieve this.
4
Introduction
Organizations as a whole have to respond to changes in their environment, which will also be reflected in their inventories. Definition 6: Change Change is the implementation of new processes, sub-processes, procedures or technologies to an existing organizational context in order to let the organization respond to changing environments. Change needs to take place in order to allow an organization to become flexible with respect to changes in the business environment such as customer requirements and demands. Standardized and predefined changes are described as IMACs, i.e. installations, moves, additions and changes.
IT ASSET MANAGEMENT PROGRAMMES IT asset management (ITAM) is an ongoing operational effort and its implementation an iterative process. ITAM goes beyond the one-time efforts of projects, focusing on tools and processes and their implementation. ITAM needs to be established as part of the organization – responding to its size and business with dedicated resources and integration into operations and administration procedures. Efforts to maintain data accuracy are likely to exceed efforts for programme implementation. ITAM services are either provided by internal entities to internal customers or outsourced as part of service contracts with service providers. Organizations which provide ITAM services to their customers have to implement a wider set of services and processes which need to be highly adaptable in order to serve the various customers’ requirements. An ITAM programme within this business context needs to contain the full range of ITAM services if it is to operate as a ‘pick and mix’ toolkit, from which those services in the programme may be chosen which are relevant for internal purposes and to fulfil contractual obligations. Effective ITAM programmes need to encompass four basic components: ■
an IT asset strategy based on the customers’ and business needs;
■
‘Quick wins’ which deliver immediate impact and high visibility;
■
the negotiation of contracts, where applicable;
■
performance measurement.
In order to be implemented, the programme needs to focus on a business area of high visibility which provides an appropriate opportunity to succeed within set timelines and budgets. The implementation needs to demonstrate financial impact
5
IT Asset Management
beyond the ‘one off’, and needs to build on designed processes and procedures to allow for adaptation and replication in other areas. An ITAM programme typically includes team members from those parts of the organization which are involved in the different aspects of ITAM, i.e. those which have a business interest in the programme and its outcome. For example, team members will be representatives from: ■
business units;
■
finance;
■
legal;
■
IT organizations.
The overall maturity of an ITAM programme and its implementation can be determined through parameters such as: ■
process;
■
tools;
■
information;
■
integration.
Table 1.1 shows these parameters for five levels of ITAM, Level I being the lowest and Level V the highest. Table 1.1
6
Maturity of ITAM programmes Level I
Level II
Level III
Level IV
Level V
Process
Low maturity
Reactive state
Proactive life cycle management
Measurements Seamless and SLAs in integration place
Tools
No tool for inventory scanning available
Tool for inventory counts
Tool integration with service management
Tool integration with ERP (see text) systems
Integration with corporate systems
Information
Limited availability
Inventories and IMAC run on project basis
Inventory linked with finance and contract management
Standard reporting on inventory and opportunity
Inventory transparency, usage based re-charge and billing
Integration
None
Through ITAM Dedicated project teams implementation ITAM team with senior management attention
Seamless organizational integration
Introduction
Particularly with businesses which provide process integration to customers, but also with internal service provision, the provision of ITAM services will be expected between Level III and Level V. Customers are also likely to expect their vendors and suppliers to provide these levels of process excellence in order to benefit from cost advantages.
IT ASSET MANAGEMENT AND ‘TRADITIONAL’ ASSET MANAGEMENT What are the differences between IT asset management and ‘traditional’ asset management? First of all, all practices applicable and relevant to overall asset management should also apply to IT asset management. However, this does not always seem to be the case. Core business processes, which are supported or enabled by technology, expose organizations to a certain level of dependency on assets and technology. This level of dependency will vary with the level of integration of technology and may be observed not just with IT assets. However, productivity gains are often achieved through a higher involvement of IT in core business processes, e.g. Enterprise Resources Planning systems (ERP). The increased dependency on IT systems and their availability means that IT assets become of vital importance to organizations, which may make these assets different from many others. IT asset management is different with regard to life cycles, which may be perceived as being shorter in comparison to other assets with a similar level of investment and maintenance, e.g. machinery for production. And life cycles are constantly getting shorter due to increasing requirements, e.g. for computing power, memory and storage as well as integrational capabilities such as networking. The IT industry itself seems to drive the shortening of life cycles through enhanced or new functionalities and usability. These enhancements do not necessarily result in a similar increase in productivity. To follow the latest developments – sometimes even fads – is perceived as strategic. Furthermore, the company’s image and culture – to remain at the forefront of developments and industry practices – may ‘force’ an organization to further cut down the time IT assets spend in service, i.e. their life cycle. A large proportion of IT costs is associated with maintenance, which frequently exceeds the original purchasing cost. The effort to get these costs under management control seems to be a major difference to ‘traditional’ asset management, where these problems are likely to have already been solved some time ago. The reason for IT asset management not being as far advanced in standardization as traditional asset management and property accounting can be
7
IT Asset Management
seen in its relatively short history. There is a need to develop further these management capabilities, processes and procedures. This seems to be the case for ‘WINTEL’ (Windows/Intel) dominated environments in particular, although in host-based environments a number of these requirements have already been satisfied for some time, e.g. the re-charging of IT cost on a usage basis. A third difference is derived from the nature of IT assets: they are manageable through technology. The decentralization of computing power in PC networks has had a significant effect on the need for on-site maintenance for anything other than peripheral equipment. While some active network components such as routers, switches and gateways have been remotely manageable by default, other components such as PCs and printers are only now becoming available for remote management. Supported by a continuous reduction in the size and weight of equipment – but ever more increased functionality – the need to have skilled personnel on-site is decreasing. Support strategies utilize remote management and logistic services to replace the entire piece of equipment if it cannot be ‘repaired’ remotely. Support strategies also go beyond financial management of IT assets. Not only assets which are owned but all assets which are at an organization’s disposal require technical and/or physical management. Thus the inventory of IT equipment may include leased or rented equipment. Organizations may be obliged to keep track of IT assets not only through legal regulations but also through contracts with their suppliers. Typical supplier contracts will, for example, oblige organizations to maintain inventory lists of leased equipment and be in a position to report on the number of software licences in use.
8
2 Management context
■
The need for IT asset management
■
Supply chain management
■
IT asset life cycle
■
Service and support strategy
■
IT strategy
■
IT asset strategy
11
14
16 19
20 23
9
Management context
THE NEED FOR IT ASSET MANAGEMENT The implementation and operation of leading-edge information technology is often hampered by the high risk and failure rates of projects. The failure of IT systems which support core business processes – thus creating an organization dependent on technology – reflects deficiencies in the management of IT. Successful IT management requires accurate information about the installed asset base. Dependencies and interactions within this inventory need to be considered for changes to be made to installations and configurations. Legal obligations require organizations to operate a system of asset management for internally ‘owned’ assets. These obligations are determined by local accounting regulations and by organizational policies. Despite being within legal regulations, organizational policies may be far-reaching, and are generally set up to support economic objectives such as leveraging economic performance. Obligations also include licence agreements, for example with software vendors which require software assets to be tracked and reported on. Under the terms of their contracts with software vendors clients in volume agreements are required to prove how many and what types of licences are utilized. An accurate inventory may help to save cost by avoiding over-licensing. In many cases the purchase of software, such as operating systems and office applications, is automated with every new PC. An inventory allows purchases to be optimized by identifying options for upgrades or re-use of existing licences. Through the keeping of accurate numbers the purchasing department will be able to negotiate volume agreements or discounts on certain products. Also, an inventory will make sure that no breach of a licence agreement occurs by buying the correct amount of licences. In order to provide internal or outsourced services, organizations are required to have a reasonably accurate overview of: ■
what assets are available internally and for service delivery to customers;
■
where assets are located;
■
who uses assets;
■
how assets are moved;
■
how assets change.
Within the outsourcing business these requirements are extended through contracts and possibly further legal obligations. ITAM provides the basic information to operate asset-related outsourced managed services, including change and the ability to control technology streams. Being able to pass on accurate asset information, for example to field service technicians, will allow the time for fault diagnosis and response time to be significantly reduced.
11
IT Asset Management
Although organizations tend to invest a significant portion of corporate capital in IT, an increasing dissatisfaction with IT and related services is evident. The lack of services is perceived to be due to a lack of efficiency in internal IT organizations, including re-charging mechanisms. Dissatisfaction is further nurtured through rising costs, though these are often justified by increases in capacity and performance through technological developments. These increases will have led in some cases to unwanted overcapacity. ITAM programmes can help to utilize this overcapacity and hence increase the return on investment. Organizations seek to achieve service improvements and IT cost reductions through economies of scale and improved cost control. Consequently organizations are looking to outsource IT functions to gain improved transparency, unless internally provided services are competitive, i.e. at ‘world-class level’. However, outsourcing may also expose the organization to a number of risks, such as: ■
loss of flexibility due to long-term contracts and relationships;
■
irreversibility of contracted outsourced services;
■
high cost and constraints to in-source where and when necessary.
The indications show that in general business is expected to benefit from IT through improved information availability, while the area of accounting expects to benefit through improvements in the services offered and the performance of services provided. However, these benefits may be hampered by: ■
systems which are not fully functioning;
■
systems which are not fully implemented;
■
changes in power relevant to system implementation.
There is also a need for corporate integration of ITAM in order to gain process competence, competitive advantage and differentiation of service products, e.g. in the areas of supply chain management, logistics and marketing effectiveness. Common drivers for the initiation of an ITAM programme include:
12
■
help desk support;
■
maintenance and repair cost;
■
software distribution;
■
property and lease management;
■
licence compliance;
■
budgeting;
■
IT procurement;
■
planning, e.g. for capacity and life cycles;
■
technology migration;
Management context
■
disaster recovery;
■
mergers and acquisitions;
■
mobile device management.
Integration of IT brings to organizations management advantages. Possible advantages supported by ITAM are shown in Table 2.1: the right-hand column links these potential management advantages to ITAM and hence demonstrates the corporate importance of ITAM functions and services. Table 2.1
Management advantages linked to ITAM
Management advantages
Link to ITAM
Increased speed of communication of more accurate data
Availability of accurate and timely asset-related data for planning and support purposes
Better quality of communication
Direct links between systems, e.g. accounting, enable higher transparency of asset data
Speeding up of the business cycle
Support through accurate asset information
Increase business flexibility
Exact information on installed base, configurations and asset status enables planning and change management
Improved decision making, gaining competitive advantage
Provision of core data for decision making, e.g. availability, capacity and usage
Headcount savings
Efficiency gains through clearly defined processes, supported by technology
Increased direct control
Accurate and timely asset information allows improved cost and usage control
Awareness of outstanding duties to be completed
Life cycle management, preventative measures, licence management and control of leasing contracts
The link between inventory data delivered by wall-to-wall inventories and through frequent inventory scans under contract and demographic data allows for the efficient management of IT assets. Efficient management leads to contract efficiency with regard, for example, to leasing and software licences and helps to avoid legal or contractual exposure. ITAM is affected by technological and economic trends, including shifting requirements and increasing complexity. Centralization and globalization lead to increased compatibility and communication requirements. Technology developments lead to diversification of requirements and continuously shortened life cycles.
13
IT Asset Management
SUPPLY CHAIN MANAGEMENT Logistics and supply chain management focus on purchasing, procurement and delivery of organizational demands, including assets, consumables, supplies for production processes and traded goods. They may be in place to support the organization’s or the customer’s business. A tendency towards integrated supply chains has led away from vertical integration and towards virtual integration of core processes, as illustrated in Figure 2.1.
Integrated supply chain
Fig. 2.1
Suppliers
Internal supply chain
Customers
Virtual integration requires seamless, streamlined and effective service processes, which need to be supported by similar effective and efficient ITAM processes, leading to closer customer relationships and also to maximized ROIs. Within supply chain management services are expected to become a key differentiator, given the fact that a growing ‘commoditization’ of products can be observed with prices remaining a competitive denominator. Supply chain management has a strong impact on cost and customer service. Successors in a competitive environment can be expected either to have gained cost advantages over their competitors or to have differentiated themselves through their products and services. Services and their likely association with products play an increasing role in differentiation in competitive environments where customers tend to buy services rather than products. In a commodity environment products are largely interchangeable with respect to the value expected and/or perceived by the customers buying them. Consequently, buying decisions are widely based on price. Services associated with products allow organizations to differentiate from their competitors by adding further criteria to the decision making. Customers’ willingness to switch products may possibly decrease and help to build long-term customer relationships. The differentiation through service relies on an effective strategy for supply chain and logistics management. ITAM supports both logistics and supply chain
14
Management context
management through accurate and timely information which will lead, for example, to reduction in lead times. The impact of ITAM is even more evident in vendormanaged inventories, where customer demands are managed through shared information between customer and vendor. Based on information shared, a vendor takes responsibility for agreed services affecting the customer’s inventory. Services initiate, support or utilize supply chain and logistics management to increase customer satisfaction. Processes and technology support supply chain and logistics management to improve service capabilities and provide cost advantages. Customer relations are impacted through quality of service, process excellence and process integration, using services as a differentiator. The absence of ITAM may also add to the cost pressure put on an organization by customers, as they would expect an increase in efficiency based on industry standard processes such as ITAM to have an impact on their cost base also. Customers will expect services beyond volume pricing, such as suppliers becoming involved in life cycle management and optimization of the customer and vendor relationships. Joint life cycle management is part of virtual integration, i.e. process integration between customers and vendors. Customers of service products expect cost advantages through buying service rather than providing these internally. Services bought externally need to integrate seamlessly with internal and other outsourced services to provide overall added value and competitive advantage for customers. In service environments, e.g. where supply chain and logistics are the ‘products’ or part of managed services sold to customers, differentiation and competitive advantage can be achieved through process excellence. The expected or perceived process excellence of a service provider is similar to the properties of products and is also subject to ‘commoditization’, with buying decisions, for example in outsourcing contracts, being made based on price and process excellence. To a certain extent ITAM programmes and efforts are driven by the complexity involved in purchasing and delivering IT assets. The complexity is caused through the diversity and variety of products available and suppliers operating globally. Order processing strives to manage the first stages of life cycle management by offering a framework of standardized processes to deliver installations, moves, adds and changes (IMAC). This framework may be understood as a basic part of an ITAM programme. Offering services related to products and process excellence in performing services are effective ways to add value and gain efficiencies. Value adds may include: ■
service delivery;
■
service excellence;
■
financial packages;
■
technical support.
15
IT Asset Management
Efficiencies gained and value added lead to competitive advantage by performing strategically important activities both at a lower cost and offering higher value. Cost leadership strategies have been focusing on economies of scale. Logistics are very likely to offer a powerful alternative to deliver cost advantages with the speed and effectiveness of logistics processes becoming performance indicators. ITAM allows the consolidation of purchasing and maintenance processes based on inventory information. The improved technology and business planning provided by ITAM will lead to shortened procurement cycles. Service differentiation, process integration and improved customer relationships make ITAM a vital and central function in customer service, as illustrated in Figure 2.2. Based on the transaction related components of customer service, ITAM components and services are found in all three sectors, e.g. stock availability, order, delivery, substitution and service parts availability. Fig. 2.2
Components of customer service
Pre-transaction
■ ■ ■
Stock availability Target delivery dates Response time to queries
Transaction
■ ■ ■ ■ ■
Order fill rate On-time delivery Back-orders by age Shipment delays Product substitutions
Post-transaction
■ ■ ■ ■ ■
First call fix rate Customer complaints Returns/claims Invoice errors Service parts availability
Models for inventory calculation require accurate and current data. Through the determination of annual demands and availability curves per system, ITAM delivers a vital part of the data baseline to calculate stock levels, hence ITAM is becoming an important part of the equation for optimal inventories and spares levels.
IT ASSET LIFE CYCLE Definition 7: IT asset life cycle An IT asset’s life cycle encompasses the different stages the asset will undergo during its time in service and which are commercially or technically relevant, from purchase to disposal. These different stages are identified through a status which will allow
16
Management context
detailed tracking, supported by technology. IT asset life cycle management aims at cost management, cost reduction and continuous performance improvements. Life cycle management has to be understood as an interdisciplinary, corporate effort, facilitated by IS organizations to establish standards for the use of IT equipment. Ageing equipment, warranties, lease contracts and labour costs have to be tracked closely in order to reduce costs. Life cycles for IT equipment need to be planned to reduce complexity and take maximum advantage of future developments in technology. On a wider scope, activities and phases also have to be included which make assets available to an organization in the first place, e.g. gathering of requirements, procurement and approval. Management of equipment has to allow for overlaps while preceding product generations are phased out and new product generations are phased in. During a life cycle, the intensity of service requirements may vary, as illustrated in the ‘bath tub curve’ shown in Figure 2.3 which shows increased service requirements during the deployment and disposal phases. Hence life cycle management has to be envisioned as an overlapping process, which is directly linked to the service efforts and hence service costs.
Number of failures/ interventions
Fig. 2.3
IT asset life cycle
Phase in Phase out
Phase in/ Phase out Earlier generation of assets
Following generation of assets
Generation of current assets
Asset’s time in service
Support strategies and physical management
Retirement and disposal strategies
Management
Technology planning and deployment
Transition
Procurement
Plan
Business approval
Product investigation
Requirements gathering
Strategy
17
IT Asset Management
The pace of life cycles may be accelerated, e.g. through new software platforms which also require enhanced hardware. ITAM allows for the management of changes and the optimization of the use of IT assets, while taking control of developments in technology (see Figure 2.4). Fig. 2.4
Managed life cycle
Retirement/ disposal strategy
IT and IT asset strategy
Disposal Technology planning Procurement
Purchasing Asset management services
Life Cycle Deployment Services delivery
Inventory tracking
Asset identificaton
Technology Support strategy
Physical management
The technological life cycle of a PC is an average of three-and-a-half years for desktops and below three years for laptops. The economic life cycle, however, is calculated at three years. Due to technological developments in hardware in recent years, an overcapacity will have been built in many organizations. Overcapacity which does not correspond to increased user requirements can be employed to extend the economic life cycle to four years and hence reduce annual depreciation. An asset life cycle is embedded in a set of organizational service-relevant strategies which allow life cycles to be managed according to organizational needs. These strategies and their impact are shown in Figure 2.4. The managed life cycle integrates planning, procurement and purchasing into the cycle.
18
Management context
The efficiency of IT resources will be focused by organizations due to rising economic pressure. The 1990s saw a deployment of overcapacity within the IT infrastructure, probably supported by falling hardware prices. Obtaining exact information about the installed base and its capacity will allow organizations to cut costs by eliminating overcapacity without reducing services and quality. The extension of services to new business requirements may be made without further investments in IT. Using the option to upgrade PC hardware rather than replace the entire PC will also lead to the extension of life cycles. While reductions in depreciation may lead to a decrease in internal cost re-charges, an increase in taxes on assets may occur consequently. ITAM will allow – both internally and in the context of service contracts – reporting on ‘green’ issues within the inventory, such as compliance with recycling and disposal policies, so that what needs to be disposed of in the future is recognized and understood. Aspects of the ‘green’ management of assets are becoming more and more important on a regional level, for example in Europe, but also for global or international organizations and hence add to an organization’s competitive advantage. In fact, through the policies of global European organizations for example, standards for environmental friendliness may become relevant worldwide, even in emerging countries. Using ITAM, data managers are in a position to report accurately on the environmental friendliness of inventories. Furthermore, disposal policies can build and plan on ITAM data related to the expected life cycles of equipment, including options and plans for recycling certain parts and components.
SERVICE AND SUPPORT STRATEGY Industry standard service and support strategies frequently encompass three levels of services, typically provided through a centralized unit such as a help desk or service centre which takes ownership for the life cycle of a request. Also referred to as ‘consolidated service desks’ these entities are directly reliant upon the availability and accuracy of asset-related data to be able to provide the required services. Furthermore, requests raised may include the need to trigger change processes, which may have an impact on assets. Also, problems occurring through changes will be reported into this service structure. To provide these services, accurate and timely inventory and configuration data is required. In order to ensure adequate engineering and documentation of IT systems, organization and control is provided through configuration management. Rigid
19
IT Asset Management
processes are introduced to prevent loss of information with respect to configurations. The extent of configuration management can be an indicator of the organization’s level of process maturity. ITAM data can provide the statistical evidence to identify faulty products and take appropriate actions to avoid future negative impact on IT availability and reliability. Minimizing the impact of faulty products, such as downtime or logistics and maintenance costs, is an efficient strategy to improve effectiveness and cost reduction.
IT STRATEGY Concepts for business strategy are also applicable for IT strategy and planning. IT is understood as a set of processes, policies and technologies that allow data storage, processing and transmission. IT has the capability to link entities within the organization and beyond through the standardization and extension of linkages. IT potentially reduces cost by adding efficiency to transactions. IT offers integrational capabilities which allow services to become available across the board, as is evident from systems which integrate corporate processes, e.g. ERP systems. Due to the central role of IT, dependency on IT in terms of availability, reliability and usability increases. The level of integration of IT in core processes determines the level of dependency on IT. IT has strategic importance as it may offer new or enhanced business and management opportunities, for example: ■
competitive advantage gains;
■
productivity and performance improvements;
■
as an enabler for new ways of managing and organizing;
■
new business development.
Clearly identified, defined and communicated objectives supported by adequately defined structures are also prerequisites for a successful IT implementation. Strategies can be described as focused measures which are derived from the organization’s visions, missions and objectives, as illustrated in Figure 2.5. Strategies support the achievement of organizational objectives and their formulation is hence dependent on these objectives. Defining a strategy prior to identifying objectives is impossible. Figure 2.5 also indicates that strategies are at the end of a process which provides direction to the organization in general. Changes to the vision and its derived mission will inevitably lead also to changed objectives, which are likely to lead to changed strategies in order to be achieved.
20
Management context
Fig. 2.5
Derivation of strategy
Vision
Mission
Objectives
Strategy
A lack of clarity within the vision and the mission statement, or in their communication, will almost inevitably lead to less clearly defined objectives and strategies. A clear and strong mission statement will hence contribute to the overall success of an organization. An organization’s position within the market is determined through its competitive advantage over its competitors. Objectives and strategies are defined with respect to the market position. When operating in international environments, these factors may be multiplied through the influence of regional markets and production conditions. In relation to an organization’s mission and market position a number of generic strategies can be identified, as illustrated in Figure 2.6.
Cost leadership
Broad differentiation
Cost focus
Product differentiation
Cost
Product
Focus
Broad
Generic strategies
Narrow
Fig. 2.6
Competitive advantage
21
IT Asset Management
Following this approach, organizations gain competitive advantage either through their products being innovative or new, or through cost and price optimized production. The focus determines whether an organization strives for leadership or follows existing leaders. Use of technology and readiness for investment and technical innovation is determined by such self-assessment by an organization. IT capabilities and capacities which are hard to imitate contribute to an organization’s competitive advantage and hence are an integral part of its resource base. As a consequence, the alignment of IT and overall business strategy will increase competitive advantage. However, it is the management of IT, rather than the technology itself, which is primarily contributing to this competitive advantage. Overall corporate strategies will determine the strategies for products, functions and departments in order to make sure that the organization’s strategy is followed in the relevant corporate areas, as shown in Figure 2.7. Fig. 2.7
Development of strategies
e.g. overall organizational objectives
Corporate strategy
Business unit strategy
e.g. product and marketing strategies
e.g. product objectives Department strategy
ITAM services are likely to be sold bundled with other services, which allows vendors offering ITAM to gain competitive advantage within the outsourcing business and/or be more successful in winning business internally. Three categories of overlap between the use of IT and strategy can be identified:
22
■
IT used to help in the formulation of business strategy;
■
IT used in the implementation of business strategy;
■
strategic planning within IT functional units.
Management context
These categories point towards a corporate importance of IT which goes beyond organizational departments. Consequently issues of control arise which lead to the tendency to see the IT department as a corporate or federal function. Technology management has focused on strategic issues such as integration with corporate and business strategies. The effective implementation of IT strategies requires operational process management. ITAM provides a framework which allows an understanding the technology management issues and incorporates tools and technologies for strategy implementation. The integration and application of IT within an organization’s core processes lead to competitive advantage through, for example: ■
production process excellence;
■
support process excellence;
■
order and logistic process excellence;
■
resource management;
■
level of process integration with customer;
■
organizational responsiveness and flexibility;
■
level of integration with business strategy.
To gain competitive advantage, organizations need to identify their critical success factors and review their current ways of operating in order to find cost savings. The technology currently in place and expected changes in systems which are involved in the business value chain need to be evaluated in order to define a strategy with respect to the organization’s vision and targeted market position in terms of, for example, cost leadership or differentiation. Competitive advantage may be gained by the use of IT in products and services, distribution and supply. ITAM is linked to all these applications, providing baseline information for distribution through data gathered earlier.
IT ASSET STRATEGY Overview IT systems, including hardware and software, need to be identified through a technical framework such as ITAM in order to meet business needs, maximize opportunities, establish a data structure and provide an evolution plan of current systems. Successful ITAM programmes will respond to the organizational, environmental, financial and technological environment of the organization. Hence, ITAM strategies encompass critical success factors such as:
23
IT Asset Management
■
responsiveness to business requirements;
■
involvement of corporate entities;
■
identification of potential cost savings and commitment to achieve;
■
linkage of business and IT objectives;
■
senior management support;
■
funding;
■
adequate resource assignment;
■
iterative approach for implementation.
IT asset strategies need to reflect the fact that ITAM is an ongoing effort which, despite the underlying complexity, needs to remain understandable and straightforward. ITAM services focus on strategic areas within the corporate context, where accurate and timely asset data is key to decision making. These areas include: ■
IT budgeting;
■
licence management;
■
infrastructure planning and management;
■
procurement;
■
standardization;
■
decision support;
■
contract management.
The ITAM process design builds on the IT asset strategy, in particular when some policies and processes are already in place which need to be integrated. Process integration needs to cover the ITAM requirements gathered from the parties involved and hence a re-engineering component is likely to be included. Any decision on technology and tools which are brought in to support ITAM needs to be based on the IT asset strategy and the requirements included in it. The requirements of and management policies included in the IT asset strategy determine the need for, scope and level of customization required to meet ITAM expectations. Figure 2.8 provides an overview of the preliminary steps in designing an IT asset strategy. The IT asset strategy should be reviewed frequently to make sure that changes in the business environment and requirements are reflected. Change processes need to be implemented to maintain the strategy and provide business flexibility.
Scope of ITAM As a preliminary step, the scope of ITAM services within the context of the organization has to be determined. The scope is expected to vary according to environmental factors such as: 24
Management context
■
business environment;
■
type of business;
■
level of competitiveness;
■
role of IT and ITAM for the business;
and internal factors such as: ■
size of organization;
■
level of process integration with IT;
■
service management.
The scope outlines the organizational requirements for ITAM on a high level and in relation to the business and the organization. Based on this framework, the requirements and objectives for an ITAM implementation are further described in the IT asset strategy. Fig. 2.8
Identify and document scope of ITAM
Design IT asset strategy
Identify and collect requirements for ITAM
Consolidate existing ITAM strategies and policies
Design and maintain inventory management policy
Determine data set for inventory tracking
Design and maintain IT asset strategy
ITAM requirements Requirements for ITAM services come from a number of different sources, e.g. legal and contractual obligations as mentioned earlier, business strategies and customer requirements. These requirements actually form the basis for any IT asset strategy and subsequent ITAM implementation. Any shortfall in meeting requirements will likely have an impact on an organization’s business and financial performance, while exceeding requirements frequently means overspending and impacting negatively on the organization’s margins. To gather requirements, the stakeholders in ITAM services have to be identified and allowed to provide their input in order to make the picture as complete and valid as possible. Stakeholders are likely to include both internal and external 25
IT Asset Management
entities, which will have specific requirements for their individual involvement in ITAM, and possibly include a potential for improvement which is usually expected to be addressed simultaneously. Nevertheless, these requirements need to fit into the overall scope of ITAM as earlier identified. The expectations of stakeholders and involved parties need to be managed accordingly to maintain support and buy-in.
Existing ITAM strategies and policies Although an overall IT asset strategy and ITAM services implementation may be missing, organizations will likely have implemented parts and subsets of ITAM within departments and operations in order to respond to existing needs. An IT asset strategy needs to evaluate the existing processes and procedures, and possibly the tools and technologies, in place and incorporate them where and when appropriate. In particular these will include existing agreements with service providers which are in place to operate the base already installed. Although the IT asset strategy will provide overall guidance to the management of service providers and the type of agreement required in support, a general renegotiation of all existing contracts may not be feasible. Besides building on existing pre-work and hence saving investments and returns, subprocesses in place will also provide a good insight into the requirements of and options for implementation. Likewise, invaluable experience may come from the processes and policies being operated, which should be captured for the overall strategy. Furthermore, integrating the existing expertise in staff and inherent in current strategies and policies will certainly increase the level of support and commitment for the implementation of corporate ITAM programmes.
Inventory management policy Based on requirements and existing processes, strategies and policies, a corporate inventory management policy needs to be defined. This policy will describe overall management approaches to utilizing technologies and manual processes such as:
26
■
data collection;
■
updating processes;
■
asset tagging;
■
audits and site surveys;
■
links to demographic data;
■
links to other systems.
Management context
Within the policy, the information to be collected per asset and how it is to be organized and later maintained will be outlined, for example: ■
categorization of assets;
■
level of detail maintained per asset;
■
asset status with respect of life cycle.
The inventory management policy will outline the linkages with other internal or external entities such as customers, departments and service providers. Other corporate policies, such as purchasing and procurement, are likely to be impacted by the inventory management policy. The principles of virtual integration and shared inventories need to be applied in these areas. ITAM services are based on a plan for wall-to-wall inventories, both initially and through frequent reiterations. All changes to the inventory in place (IMACs) need to be captured and monitored in a similar way in order to keep the inventory current. The accuracy of data collection and ongoing inventories can be seen as a major challenge in ITAM. Hence process and interface definition to and from ITAM is vital.
Data set for inventory tracking Based on the IT asset management policy outlined, the requirement for a supporting data set can be derived. Although the data set should already point very much in the direction of technology and tools, it is vital to have the data set derived from the organizational requirements rather than, for example, a particular tool’s capabilities and architecture. The data set will also outline an overall structure for the data based on the categories of information required. For all assets to fall within the scope of the IT asset strategy – ideally all IT assets available to the organization – a mandatory data set will be defined which depicts the core information which has to be collected and maintained in order to provide basic ITAM services.
Design of IT asset strategy The IT asset strategy links the concepts of ITAM and the services it comprises to the organizational context, based on the requirements and preliminary steps described above. The strategy is documented and communicated to all involved parties; subsets of the internal strategy document may be distributed to external customers and service providers, where applicable. The framework outlined for the development, documentation and communication of an IT asset strategy is also applicable for software and licences. Increased
27
IT Asset Management
complexity may make a split of licence management from inventory management for hardware necessary. An IT asset strategy document will frequently contain the following sections:
28
■
purpose of the document;
■
communication and distribution;
■
business requirements;
■
ITAM scope;
■
inventory management policy;
■
inventory data requirements;
■
linkages with organization and supply chain;
■
contract management (where applicable);
■
implementation;
■
change management.
3 IT asset management services
■
IT asset management services model
■
Inventory management
■
Configuration management
■
Change management
■
Order processing
■
Contract management
31
33 43
56
60 64
29
IT asset management services
IT ASSET MANAGEMENT SERVICES MODEL The key business drivers for ITAM, which have been outlined earlier, are directly related to an organization’s business objectives and IT strategy. These drivers are reflected in operational strategy, planning and management, such as: ■
capacity and integration planning;
■
support strategies;
■
physical management.
To support these operational requirements, five key components of ITAM can be identified, which are illustrated in the ITAM services model (Figure 3.1). The following chapters define these five main components of ITAM in detail and also provide tables which contain the service deliverables for each component. Many of the service deliverables are linked or dependent on each other. Any selection from these deliverable to form a tailored ITAM service hence needs careful consideration of these dependencies. Some deliverables have to be understood as enablers for other services and deliverables. The tables attempt to reflect this matter by grouping the service deliverables in three distinct levels: ■
Mandatory service deliverables are prerequisites for services and other deliverables.
■
Standard form a standard ITAM service or programme, building and relying on mandatory service deliverables.
■
Extended mark services beyond the standard, which build on the standard service deliverables and can be provided as optional extras, usually subject to additional cost.
Figure 3.1 also shows the links of ITAM into service management and finance, which both make use of the data and information made available through ITAM. Service management is dependent on the accuracy and timeliness of ITAM data for all asset-related requests, e.g. problems and changes. Often the entitlement to service is validated through ITAM data, where services and support may be denied when the asset referred to is not contained in the asset inventory. ITAM also provides core data to finance, which is used for property accounting and cost re-charging and billing purposes. ITAM data may be reconciled with data from other repositories to complement the information, e.g. with purchasing data. In cases where cost re-charge or revenue is based on a per asset (per seat) basis, accurate and timely asset information is vital.
31
Release management Capacity management
Licence management
Configuration management
Tools and processes
Scanning/ capturing
Inventory management
Support strategies
Tools and processes
Service management
IT asset management services model
Service operations
Fig. 3.1
Project management
Installation/ delivery
Change management
Capacity and integration planning
IT strategy
Business objectives
Warranty
Logistics
Procurement
Order processing
Tools and processes
Billing
Property accounting
Customer contracts
Vendor management
Contract management
Physical management
Data
Finance
IT asset management services
Depending on the business and market an organization is in, the complexity of ITAM components and services may increase. This is particularly the case when ITAM services are not only provided internally, but are also supporting the organization’s business or even are products sold on externally to customers. In these cases ITAM services need to be ‘productized’, which means that ITAM service products are designed making use of standard service deliverables. To provide different ITAM service products to customers and respond to changing demands and market situations usually requires the capability to cover the entire portfolio of ITAM services. Focused on ITAM, Figure 3.1 indicates in passing only the very important links through data and processes to finance and service management. Within this model, finance would be expected to use the data provided by ITAM to derive the financial information required such as depreciation, ownership, etc. The link through data and processes to service management indicates a strong bilateral dependency, where both disciplines, service management and ITAM, are interacting with each other, e.g. through the involvement of a service centre change and configuration management. The services model is neither a functional nor organizational view, but illustrates the links between objectives and strategies which lead to the provision of integrated ITAM services. Transposed into an organizational structure, the main components of ITAM may be found in different areas of the organization or be outsourced to external service providers. The components may also be part of a wider functionality through which – among others – ITAM services are provided.
INVENTORY MANAGEMENT Definition and outline Definition 8: Inventory management Inventory management tracks information on ‘where’, ‘what’ and ‘who’ in respect of available equipment, with levels of detail determined by configuration management. Information tracking may be done manually, through technology or by a combination of both. Information is stored in a repository database and updated through corporate processes and procedures. Inventory management aims to identify and count available equipment within an organization. Equipment within the inventory is identified by the physical and demographic data on the assets which are linked within the repository to contractual and financial data.
33
IT Asset Management
Legal obligations require organizations to operate asset management for assets owned internally. These legal obligations also include licence agreements with software vendors, which require software assets to be tracked and reported on. Based on outsourcing, organizations providing lease and rental contracts may also be obliged to keep track of equipment owned by third parties. Hence ITAM focuses on overall IT equipment irrespective of ownership. The level of detail maintained for the inventory is determined by organizational requirements. These requirements may reflect, for example, an organization’s core processes depending on the IT and the level of specialization of the IT supporting these processes. Typically, finance departments will determine the level of detail required to maintain property accounting or support the obligations arising from renting or leasing contracts. Support functions need to be provided with IT asset information to deliver contracted services. In some cases a mere count of equipment may be satisfactory, such as where pieces of equipment or components are dealt with in ‘bulk’. This may be the case for equipment representing comparatively little value such as standard keyboards or pointing devices. Also, components build in such as RAM chips, network interface cards or CD ROM drives are often tracked by number or capacity rather than through unique identification such as a serial number. In order to maintain a high accuracy of inventory data, the overall requirements should be reduced wherever possible. Who is responsible for the inventory repository needs to be clarified and assigned responsibilities. Changes which occur as a result of field services intervening during repair or maintenance need to be reflected within the inventory immediately, such as by a service centre which has been set up to coordinate and manage the services provided. Due to the non-physical properties of software, licence management is a specific form of inventory management. Licence management maintains an inventory of licences, rights and patents, i.e. immaterial assets. Within the context of ITAM, software licences are of particular interest. Volume software licence agreements at the corporate level are negotiated on the basis of exact information on licences which are available and in use. ITAM delivers this data and allows the use of licences to be analysed so that the most cost-effective options for the re-use and upgrading of existing licences may be identified. Organizations may be obliged through contractual regulations, such as licence or volume agreements, as well as through legislation to maintain a schedule of existing licences. When purchasing a software licence, usually only the right to use but not ownership of the software as such is acquired. This right is appropriated and limited based on the licence agreement. Limitations may be imposed through a prohibition to copy and re-sell, but may also be imposed on the use, e.g. in named licences.
34
IT asset management services
In order to ensure compliance with licence agreements and to maximize the return on investment, an accurate schedule of licences in use and available is required. Without inventory management on software, organizations are in danger of being in breech of contract or over-licensed, both positions likely to give rise to costs. Over-licensing as a result of over-purchasing, under-utilizing existing licences, under-utilizing upgrade options or not re-using in cases of replacement may amount to as much as 10 per cent of overall software licence costs. Through the evolution of the inventory database into a service database, historical service data, e.g. on changes and repairs, becomes available which may be used for preventative or trend analysis purposes. Inventory data available through the service database provides basic information required by service management functions, such as helpdesks, IMAC teams and field services. Inventory management has a significant impact on: ■
control of asset utilization;
■
cost control;
■
asset related re-charge and revenue;
■
service management;
■
finance and billing.
Inventory management supports the optimization of IT asset costs through, for example: ■
life cycle management;
■
capacity planning;
■
asset utilization control;
■
optimized licence utilization;
■
avoiding outages;
■
preventative maintenance;
■
planned repair and maintenance.
Change Inventories of fixed assets are subject to numerous changes – and in the case of IT ever more frequently. The factors impacting on an inventory are illustrated in Figure 3.2. The diagram shows the inventory surrounded, i.e. protected, by standard configurations and acceptance procedures. The application of standards, e.g. the execution of acceptance procedures, allows changes to the inventory to be processed in a planned and controlled manner.
35
IT Asset Management
Fig. 3.2
Factors impacting inventory
Changing environment
Installations
Inventory
Changes
Life cycle
Configurations
Acceptance
Repair and maintenance
Wear and tear, consumption
Installations of additional equipment, changes, maintenance and new equipment have to comply with existing configurations or otherwise have to undergo agreed change processes prior to being accepted within the inventory. The drivers for changes to the inventory are either usage and ageing of the equipment or changes within the environment which an organization has to react to. The requirement for continuous change in response to changing business environments derives from the need to gain and maintain competitive advantage. Following an initial wall-to-wall inventory, the repository needs frequent updates which can be provided through: ■
technology and tools, i.e. inventory scanning;
■
process integration, e.g. IMAC;
■
manual inventories.
The required accuracy and timeliness of the data in a repository can be achieved by merging these sources into a coherent set of processes supported by technology and tools.
36
IT asset management services
The inventory may be understood as the product determined by the following factors: ■
initial installation;
■
moves;
■
additions;
■
changes;
■
deletions.
Standardized changes, i.e. defined and agreed procedures for changes, are utilized by IMAC operations, while change management takes care of those changes for which standardized procedures are not available.
Spare management Spares need to be available to IT operations in order to bridge shortages and to maintain service availability. Spares can be either parts for replacement or complete products which will be used for replacement of a faulty unit or which may be stripped and ‘cannibalized’ when a specific part is needed. The IT strategy has significant impact on the spares policy through the determination of the required level of service and product used. The levels of spares are calculated based on experience and manufacturer data, such as mean time between failure (MTBF). Obviously levels of spares are affected by the number of different products and their individual reliability and life cycle. Spares represent a non-productive portion of inventory, which has a negative impact on asset utilization. Consequently organizations in charge of providing services tend to keep spares levels to an absolute minimum. Calculations of spares levels hence need to be as accurate as possible. The level of spares available reflects the importance of the availability of IT systems to the organization expressed in terms of how much downtime may be tolerated. Depending on the geography, vendor contracts may make spare inventories partially redundant; however, expected lead times and product availability need to be considered for spare levels. Spare equipment will not usually be online and hence will not be captured through inventory scanning tools.
Status Equipment status identifies what state a piece of equipment is in with respect to its life cycle. All technical, commercial or financial states within the life cycle are
37
IT Asset Management
reflected by the status of an asset which may also vary with respect to its specifics. Typical life cycle states will include: ■
ordered;
■
shipped;
■
in stock;
■
productive;
■
spare;
■
shipped for refurbishment;
■
broken;
■
out of use.
The status determines the relevance of an asset for reporting, for example where non-productive assets will be excluded from performance and SLA reporting. The analysis of status also allows an understanding of the reliability of certain types of equipment and their need for repair. The status also determines which equipment is included in inventory scans and hence what to expect from such a scan.
Service deliverables Asset administration Table 3.1 shows the service deliverables for asset administration, that is for adding asset data to the repository using manual and automated methods.
Service deliverables for asset administration
Notification on missing data
•
Add data for assets that were missed during due diligence Notification to add asset data from IMAC process
• •
Add asset data from the IMAC process Notification to add asset data from change management process Add asset data from the change management process
38
• • •
Extended
Level Mandatory
Service deliverable
Standard
Table 3.1
IT asset management services
continued
Notification to add asset data from end user’s request
•
Add asset data from end user’s request Notification to add new asset data from inventory scan
• •
Add new asset data from inventory scan
•
Notification to add asset data other than minimum
•
Maintain asset history
•
Maintain schedule for preventative maintenance
•
Asset life cycle management
•
Create new data from electronic source: – coordination of data mapping – development of custom data load and data cleansing procedures Scheduling and loading of data for transfer and synchronization between data sources
Extended
Level Mandatory
Service deliverable
Standard
Table 3.1
•
•
Analyse and cost development of custom data load and interfaces
•
Add asset data and data from the interface with acquisition processes
•
Add asset data and data from interface with financial management and lease management
•
Add asset data manually or carry out manually data load
•
Maintaining mandatory data tables for data standardization and normalization
•
Developing and running scripts necessary to ensure data validity and quality
•
Provide billing data
•
Provide reference and values for accounting systems
•
Prepare for financial tracking of assets
•
Asset data update Table 3.2 shows the service deliverables for asset data updates, that is for updating data in the repository using manual and automated methods.
39
IT Asset Management
Service deliverables for asset record updating
Notification on mandatory update standard on, for example, IMAC, repair, maintenance or infrastructure change Update asset data standard on IMAC: – updated demographic data – initiate inventory scan
•
Update demographic data via mass update resulting from: – company reorganization (i.e. changes to department, cost centre, etc.) – location changes (e.g. building or floor changes) – change in asset ownership (e.g. manager or equipment coordinator changes
•
Update asset data from the repair activities that require removing a broken asset and replacing it with one from stock (an asset that already is in the data standard)
•
Update server (or infrastructure device) data from the change management process
•
Update asset data and data from electronic sources (e.g. spreadsheet, edit feed or delimited text file) or online (web) access
•
Update asset data manually entering data in the data standard or manually loading it from an alternative source such as a spreadsheet or data standard provided by a customer
•
Update asset data and data from the interface with financial management and lease management
•
Update asset data and data from network electronic scan or from user-initiated scan via online (web) access
•
Run the data through a loader or filter or activities associated with running recurring scripts or tools that automatically scrub and load data
•
Load the acceptable data into the data repository through use of automated tools Manually load the acceptable data into the data repository
40
•
• •
Extended
Level Mandatory
Service deliverable
Standard
Table 3.2
IT asset management services
Software licence management Table 3.3 shows the service deliverables for software licence management, that is the processes to effectively and efficiently gather, track and distribute software licences.
Service deliverables for software licence management
Extended
Level Mandatory
Service deliverable
Standard
Table 3.3
Verify software licence and maintenance agreements
•
Identify software keys, expiration dates and entitlement data
•
Software metering
•
Maintain utilization information: – procure additional licences as needed – address daily operational issues
•
Control software licences: – execute control requests – gather and analyse software requirements – develop/maintain software licence management strategy and infrastructure Establish software licence repository
•
•
Review existing software: – collect and capture standard software licence data, attributes and deployment – develop re-use plan for standard applications – review software upgrade policies – review existing licence, maintenance and support agreements
•
Administer licence, maintenance and support agreements: – react to licence expiration – track, allocate, authorize, monitor and audit software use – maintain software utilization data – procure additional licences – perform vendor agreement negotiation – address daily operational issues – resolution or escalation of issues
•
Provide information on software products installed to initiate compliance analysis and identify corrective actions
•
41
IT Asset Management
Quality assurance Table 3.4 shows service deliverables related to quality assurance and inventory management.
Service deliverables for quality assurance
Provide reports of data rejected during the load or cleansing processes
•
Reconcile data
•
Analyse data standard
•
Determine correct data
•
Update data standard with correct data
•
Revalidate data
•
Implement quality controls to identify data and/or process discrepancies: – identify problem – determine variances – analyse detail reports for completeness of data – audit sample of IMAC activity to determine asset information accuracy reconciliation to correct discrepancies
•
Determine root cause: – develop corrective actions – execute corrective actions Generate reports that identify last inventory date for software
•
•
Perform regular automated audits on software licence information accuracy Perform regular manual audits on software licence information accuracy
Extended
Level Mandatory
Service deliverable
Standard
Table 3.4
• •
Reporting Table 3.5 shows the service deliverables for reporting within inventory management.
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IT asset management services
Service deliverables for reporting
Provide scheduled standard reporting
•
Developing and generate ad hoc reports or additional recurring custom reports
•
Developing and running reports necessary to conduct quality control tasks
•
Extended
Level Mandatory
Service deliverable
Standard
Table 3.5
CONFIGURATION MANAGEMENT Definition and outline Definition 9: Configuration management Based on a logical model of the infrastructure, configuration management controls, maintains and verifies existing configurations and their status and version. Configuration management maintains dependencies and interactions of configurations and components across configurations and inventories. Configuration management helps to organize and control IT systems through adequate engineering and documentation. Configuration management is focused on the combinations of assets or components, hardware and software, which are required for organizational purposes. Configurations are focused on certain functionalities and performance features, which are derived from the requirements of the core business processes. A configuration is understood to be a collection of assets defined and identified via: ■
functionality;
■
use;
■
features;
■
capacity;
■
asset composition;
■
settings, adjustments and parameterization.
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IT Asset Management
Detailed knowledge of configurations is vital for qualification, categorization, reasoning and solution to problems. Configuration data allows the application of problem isolation techniques using the understanding of interaction with other components. Configuration management controls use, change and renewal of configurations and forms the overall basis for change management by maintaining information on relations between and interaction of assets and configurations. The data, which has to be collected and maintained to support control, vary by the necessary level of detail. Consequently, the amount and complexity of data to be maintained increases with the amount of information required for configuration and change management. As a consequence, an important prerequisite for configuration and change management is a defined data structure with respect to: ■
components to be recorded;
■
information and data on these components;
■
required accuracy.
The structure provides the basis of the management system and its linked processes and databases. With respect to an installed base, this structure has to be defined in a way which allows for all configurations within an organization or relevant part to be accounted for, as long as they are relevant to the services provided. This includes in particular configurations which do not follow configuration policies and hence are not authorized. Only through the thorough collection of configuration data may divergences from standards and policies be recorded, reported and acted on, the aim being to include the entire installed base in configuration management. If non-authorized configurations are excluded from configuration management, a ‘grey zone’ may remain which is not managed and hence not serviced through agreed and controlled services. Consequently, the ‘grey zone’ may not be included in strategic decision making and service management, including SLAs.
Configuration constituents Configuration information usually consists of different types and levels of data with reference to the configuration itself, for example:
44
■
configuration name;
■
configuration purpose;
■
authorization;
■
management information;
■
versions/releases.
IT asset management services
Reference is also made to components of the configuration, for example: ■
master hardware;
■
hardware components and accessories;
■
firmware;
■
operating system;
■
software;
■
drivers;
■
connected peripherals;
■
network connection and addresses;
■
parameters and adjustments.
The structure is recursive, thus configurations may include other assets with a similarly dedicated and detailed configuration. A three-level structure is widely used for configuration data, comprising: ■
category;
■
type;
■
item.
This may be repeated to achieve the necessary level of detail, as shown in Figure 3.3. Categories are groups of components or asset types, for example: ■
hardware;
■
software;
■
infrastructure.
Types describe kinds or variants within categories, for example within the category ‘hardware’: ■
PC workplaces;
■
printers;
■
scanners;
■
other peripherals.
Items describe a single component within a type, belonging to a category, e.g. within the type ‘printer’: ■
HP LaserJet 1100;
■
IER 557;
■
HP DeskJet 970Ci.
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IT Asset Management
Fig. 3.3
Recursive configuration data structure
Configuration
Category
Level I
Type
Type
Type
Type
Item
Item
Item
Level III
Level II
Item
Type
Item
When a further level of detail is required, items may be determined into further types and items which are related to the parent item. Hence items become categories, which are again divided into types and items. So, for the item ‘HP LaserJet 1100’, we may include: ■
driver;
■
mechanical parts;
■
accessories.
Likewise, for the type ‘mechanical parts’, we may include: ■
paper feed;
■
housing;
■
drum.
For all levels, detailed information is maintained, for example:
46
■
name;
■
description;
■
status with respect of life cycle;
■
version and release;
■
licence or serial number.
IT asset management services
Although relatively straightforward, these examples may give an idea of the emerging complexity of the data to be maintained. The levels of detail may vary depending on the configurations and their constituent components within the structure. In general, only the information necessary for the appropriate and required level of management should be maintained, that is it should be a ‘good enough solution’. The level of detail should not be based on what is technically possible or driven by a desire for completeness. Figure 3.4 shows an example with different levels of detail, using Microsoft Explorer® as a design aid. Not shown in this example is the data to be stored and maintained for the different levels, for example: ■
serial numbers;
■
manufacturer;
■
chip sets;
■
installation parameters;
■
quantitative measures, e.g. capacity, number, size.
Fig. 3.4
Sample structure
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IT Asset Management
Data requirements are directly linked to the level of integration of technology into core business processes and the level of dependency between installed assets within the organization. For instance, the configuration management of office PCs, which use standardized hardware and software components, may be sufficiently achieved through the recording of equipment versions as agreed by contract with suppliers. However, the use of configurations which are specifically tailored to an organization and its process needs, e.g. production control via interfaces to enterprise resource planning (ERP) systems, will require a level of detail down to the level of components and parameters for the assets. Although referring mainly to hardware, the examples above are valid for software and other intangible assets and components, when serial numbers are used to identify licence agreements. For example, with regard to software, the liability of an organization to keep records may derive from legal regulations such as licence agreements. Depending on the agreement between the organization and the supplier, the organization may be obliged to keep track of individual licence numbers or the total number of licences in use to avoid a breach of the agreement. With regard to standard software there is often the potential for cost reduction through efficient configuration and inventory management. For instance, organizations which also acquire the necessary operating system and office software suite with each new PC may discover significant opportunities for cost optimization by comparing the number of PCs in use – including spares – and the number of licences purchased. It may turn out that options for cheaper upgrades or even the re-use of existing software licences arising from discarded equipment have not been fully utilized.
Building configurations Due to the possible impact on the installed infrastructure, new configurations or new versions and releases of existing configurations have to be developed following clearly defined processes and responsibilities. Possible interaction with existing configurations and installations has to be identified and managed. Figure 3.5 provides a high-level overview of the basic steps in the development of new configurations, starting with the collection and analysis of business requirements, from users, departments and business units. The requirements are transformed into a technical specification which is the basis for the subsequent solution. Depending on the complexity of the configuration and the technical infrastructure, integration tests may have to be carried out. The technical solution identified has to be verified against the original business requirements. That is, from the user’s and department’s point of view, the solution has to be verified with respect to its expected impact on core business processes, for example in terms of:
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IT asset management services
■
cost savings;
■
quality improvements;
■
efficiency improvements;
■
productivity improvements.
Fig. 3.5
Collection of business requirements
Support of core business processes, identification of sponsor
Development of new configurations
Development of technical solution
Technical specification based on requirement specification
Integration testing
Interaction/ interference with installed base and infrastructure
Have the requirements been met?
Comparison of requirements and objectives against technical solution
Pilot
Test report and preparation for change management
Acceptance of configuration
Implementation planning
Acceptance through configuration management and sponsor
Business as usual
Availability of configuration for defined users
The pilot or a test phase proves the performance and reliability of the technical solution under operational conditions. The interactions identified with the existing infrastructure are confirmed or added to where necessary and documented for the change management. After successful testing and creation of documentation the new configuration can be accepted, following appropriate acceptance procedures and checklists. Following the acceptance and implementation planning, the configuration is made available through the change processes in place to the identified user community. Figure 3.6 shows an altered high-level process for the integration of new software or components into configurations. The diagram assumes that a supplier or other department, internal or external to the organization, will provide the workable software. With the software that has been received being operational as regards documentation and faults, it is then verified against its intended purposes. Compatibility with current configurations is tested and the software returned with a problem report to the supplier in case of any complications. Once accepted as ‘fit for purpose’, either a new configuration for the software or a change to an existing configuration is created. That software is not usually a physical asset means it may be distributed electronically. However, how feasible this may be is determined by the underlying communication network infrastructure, for example:
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IT Asset Management
■
availability;
■
reliability;
■
bandwidth;
■
utilization.
Fig. 3.6
Receive new software
Supplier to provide software and documentation
Integration of new software or component
Integration testing
Interaction and interference with other applications
Acceptance of new software
Confirm software to be operational
Integration into configuration
Prepare change management of affected configurations
Integration into distribution processes
Distribution test
Test report and finalize change management
Implementation planning and release
Acceptance through configuration management and sponsor
Business as usual
Availability of configuration for defined users
Limitations may be evident from a combination of the size of the software package and the available, usable bandwidth. Once distributed, software usually requires initial installation and the parameters with regard to the device to which it has been distributed to, although this can usually be initiated automatically and left unattended. In order to solve problems, it must be technically possible to manage and operate the system remotely whenever automated processes fail. Underlying this are similar limitations as with the distribution itself with respect to bandwidth and emerging performance. In cases where electronic distribution and remote management fail or are not available, media carrying the software have to be sent out using traditional distribution channels. Initiation and installation may still be carried out automatically or via remote management systems.
Validity of configuration Due to changes components may undergo during their life cycle, configurations are also subject to change. It seems evident that the number and frequency of changes to configurations vary according to the level of details maintained. The example of the office workplace may help to illustrate this: the configuration of the workplace can be reduced to the determination of equipment variants as illustrated in Table 3.6.
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IT asset management services
Table 3.6
Sample configuration
Type
Item
Minimum specification
Office workplace
Standard workplace
Pentium processor 1800 Megahertz 128 Megabyte RAM 512 Megabyte VGA 3.5” floppy disk Hard disk 20 Gigabyte Mouse 19” colour monitor US keyboard MS Windows XP MS Office 2000 Professional 100 Megabit network interface card
Only changes outside the minimal specification will be recorded. Changes of single components will typically not be recorded as long as they are within specifications, for example: ■
motherboards;
■
graphics cards;
■
hard disks;
■
RAM.
Consequently, configurations will be available in a number of versions because a change will not inevitably affect all installed and in-use configurations. Configuration management administers these different versions in direct relationship with change management. Information required by change management is maintained and provided by configuration management, including available information on interaction, dependencies and contingency with respect to assets and configurations. Changed configurations are validated through configuration management, observing operated policies, security guidelines, test procedures and other relevant regulations. Validated configurations are made available to a defined user community in conjunction with IT strategies and plans. The separation of new configurations from changed or updated configurations does not follow strict lines but is fluid, depending on the level of detail maintained. The configurations available will have a different status in terms of their use and availability with an organization, for example: ■
live;
■
test;
■
validated;
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IT Asset Management
■
authorized;
■
scheduled for update;
■
out of use;
■
non-authorized.
The status determines the phase within the life cycle of a configuration. The validity period is determined by technical changes and their relevance to the data maintained for a configuration and by changing requirements with respect to support for core business processes.
Focus of configuration management The level of detail required within configuration management is determined by organizational plans and policies, depending on: ■
the level of integration of IT into core business processes and the resulting dependency of the organization on technology;
■
legal requirements, e.g. licence agreements.
In particular, the requirements for configuration management depend on: ■
technical changes affecting configurations and components;
■
changing requirements with respect of support for core business processes.
The purpose, scope and objectives of configuration management are interdependent as illustrated in Figure 3.7. Models for configuration management are defined within these constraints and dependencies and are documented in policies, rules and plans for organizational use. Fig. 3.7
Dependencies of purpose, objective and scope
Purpose
Objective
Scope
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IT asset management services
The purpose of configuration management refers to the question, ‘why do we need to do configuration management’ with respect to the particular organizational situation and which information needs to be maintained. The scope defines the areas of the organization in terms of structure and services which configuration management will cover. The objectives provide an answer to the question, ‘what do we want to achieve’ by making use of the information which has been collected and maintained. Purpose and objectives are closely linked and impact each other, as indicated in Figure 3.7. Figure 3.7 further clarifies that the scope (or level of detail) of configuration management is directly assigned to purposes and (organizational) objectives. Hence configuration management follows organizational requirements and is not based on technical possibilities or the availability of data. Widening the scope beyond the purpose and objectives is likely to drive costs unnecessarily. Table 3.7 provides examples of these dependencies. Table 3.7
Purpose, objective and scope dependency examples
Purpose
Objective
Scope
Overview on location of PC workstations
Provide data for property accounting and cost control Precautions against theft
Collection and maintenance of location data in conjunction with related asset data
Overview on investments
Provide data for financial accounting
Collection and maintenance of financial data
Billing of outsourced services
Accurate and timely billing
Collection and maintenance of data relevant for billing
Anticipation of impact of change in hardware equipment
Operational reliability with respect to change management
Collection and maintenance of hardware details and relationships with other assets
Overview on utilized software licences
Avoiding breach of licence agreements Cost optimization
Collection and maintenance of software licences as part of configurations
Centralized configuration management
Standardization of infrastructure
Definition of standard configuration, collection and maintenance of data relevant to standard configurations
Change management builds directly on configuration management as the discipline maintaining relevant data and relations. Also, configuration and order processing are closely linked to purchase new equipment and provide logistic services.
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IT Asset Management
Configuration management maintains the basic information for service management, which may be centralized for example in a helpdesk or service centre, which is required for the analysis and management of incidents and problems. Recorded incidents may provide information on frequency of problem occurrence or outages. Via documented downtimes, reports on the impact on productivity are available. Linked to documented field service interventions, maintenance costs can be related to single assets or configurations and analysis for cost optimization may be undertaken.
Service deliverables Table 3.8 shows the service deliverables for configuration management.
Service deliverables for configuration management
Create new configuration data: – agreeing on data elements, format of delivery and source – coordinating data mapping – developing loading and cleansing procedures – scheduling data loads and synchronization – analysis and cost development of custom loaders and interfaces – identifying interdependencies with existing configurations – describing change procedures – receiving and validating documentation – support for user testing – configuration approval
54
•
Maintain data standardization: – demographic data tables (e.g. user, locations) – product tables – vendor tables – configuration tables – data load and cleansing procedures – developing and running quality control reports
•
Maintain documentation library
•
Maintain existing configurations: – updating data – initiating inventory scans – version and release control – status – approve or reject changes based on acceptance criteria – keeping documentation library accurate
Extended
Level Mandatory
Service deliverable
Standard
Table 3.8
•
IT asset management services
continued
Add configuration data
•
Add data for configurations that were missed during due diligence
•
Add configuration data from the IMAC process
•
Add configuration data from an end user’s request
•
Add new configuration data and data from inventory scan and electronic sources
•
Add configuration data other than the minimum
Extended
Level Mandatory
Service deliverable
Standard
Table 3.8
•
Add configuration data and data from the interface with acquisition processes
•
Add configuration data and data from interface with financial management and lease management
•
Add configuration data from other sources
•
Update configuration data from repair and maintenance activities
•
Update configuration data and data from electronic sources
•
Update configuration data manually
•
Update configuration data and data from the interface with financial management and lease management
•
Update configuration data and data from inventory scans
•
Run data loads and cleansing procedures
•
Provide exception reports of data rejected during load and cleansing procedures
•
Reconcile filtered data
•
Implement quality controls to identify data discrepancies: – identify problem – determine variances – analyse detail reports for completeness of data – audit sample of IMAC activity to determine configuration information accuracy – reconciliation to correct discrepancies – determine root cause – develop corrective action plan – execute corrective action plan
•
Generate report to provide timestamp to configuration inventory Perform periodic audits to validate configuration data information utilizing automated facilities
• •
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IT Asset Management
continued
Perform periodic physical audits to validate configuration data information Generate standard configuration reports as scheduled and review reports for accuracy
Extended
Level Mandatory
Service deliverable
Standard
Table 3.8
• •
Develop and generate ad hoc reports or additional custom reports
•
CHANGE MANAGEMENT Definition and outline Definition 10: Change management Change management handles the change processes in respect of assets, inventory and configurations in order to minimize negative effects on the availability and reliability of IT systems. Requested changes are approved or denied through the application of change management processes, which are valid for all IT assets and configurations available within the organization. Change management records changes being carried out on a per asset and per configuration basis. Change management applies to changes to the infrastructure and to the business environment, i.e. contracts, SLAs, services, etc. It can be understood as proactive, as the processes and procedures strive to manage and control changes which are carried out against a defined inventory. Inventory and change management need to be implemented simultaneously to gain control over the installed base and changes affecting the inventory. Technical issues, combined with growing dissatisfaction and lack of support, may lead to a failure of the change effort. As with change in general, changes in the area of technology may face resistance from groups affected, due to their impact – perceived or otherwise – on vested interests. Within an organization, these groups may actually have the power to stop changes from being implemented. Change management is an important component of service delivery and business continuity, which allows an improved alignment of IT with the business requirements.
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IT asset management services
The ability to support the IT environment through centralized functions such as helpdesks is supported, if not enabled, through change management, which allows changes to the installed base to be tracked. Furthermore, change requests may be initiated through these support functions and tracked until fulfilment, quality checking and closure. Standard change procedures are available for predefined changes with a predictable and repeatable outcome. Non-standard changes follow change processes either as one-off changes or as additions to the set of standards. Standard change procedures are called upon by order processing to respond to day-to-day customer requests. These changes also have agreed costs/prices assigned to them, which simplifies approval and procurement. Standard changes allow change management to be streamlined, increasing the flexibility of IT and improving change performance. Standard change procedures are typically available for changes affecting the installed base, for example: ■
moves of equipment and/or users;
■
installation of additional equipment;
■
discontinuity of installed equipment;
■
changes to existing equipment within current functionality.
These changes will follow agreed procedures and are usually part of product and service catalogues. Standard changes can be defined as: ■
established and proven procedure;
■
generally technically approved;
■
cost and re-charge defined;
■
centralized problem ownership.
Change management processes need to consider the following: ■
scope of changes;
■
timelines;
■
ownership;
■
communication plan;
■
integration of business continuity;
■
critical components;
■
management of risk;
■
implementation plan.
Change management is an essential business process, which requires thorough planning in order to get it right first time. Unexpected and unpredictable outcomes have to be avoided. Change management encompasses the following steps:
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IT Asset Management
■
requirement gathering;
■
defining the outcome;
■
approval;
■
planning;
■
implementation;
■
quality assurance;
■
lessons learnt.
Definitions and models for change may be part of capacity and implementation planning. Possible changes are identified in these project phases and documented in change models to describe optional developments in technology environments. Change models developed during engineering allow outcomes and impacts on other equipment to be predicted. The line between requests being handled as changes or as projects is often indistinct. A change involving only a new piece of equipment may become as elaborate as a project, for example when the scalability of the existing environment is limited. Otherwise the integration of a new production site may still constitute a change when all required procedures are sufficiently described as standards. Changes become projects once their impact and magnitude impose non-standard procedures or need handling through dedicated resources. Organizational change and technology innovation are encompassed by IT systems development. Failure of IT systems, reflecting a failure to manage IT, can be due to: ■
not meeting the systems objectives;
■
not delivering the expected outcome;
■
not being used appropriately.
Change management allows changes to be carried out to an IT environment in operation in a planned and structured manner, with defined deliverables and outcomes, including documentation and the maintenance of existing databases. Through change management the risk of negative impacts on the existing infrastructure is mitigated. Change management is reliant on the availability of accurate configuration information in order that changes may be carried out in a structured and planned manner, i.e. following defined and agreed change processes. Change processes entail certain predefined steps which can possibly involve numerous resources and departments. The time taken for a change request hence becomes an important measurement for performance and customer satisfaction. Higher priorities and urgency may require ‘fast-track’ processes in order to make a more timely and flexible response to changing environments and demands.
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IT asset management services
Consequently, ‘fast-track’ processes and procedures are required which provide similar levels of management and predictability of outcomes but take less time. Fast-track processes therefore need additional resources to increase the process performance. Under no circumstances should process steps be left out. The postponement of certain deliverables deemed as less important for implementation needs careful consideration. Putting administrative tasks such as documentation and database maintenance to one side will possibly deliver a short-term performance advantage but is likely to cause problems in the near future. If not carried out as part of acceptance procedures these administrative tasks may not be carried out at all, as change and project managers tend to loose focus for these deliverables immediately after implementation. The performance of change management can be appraised using quantitative measures such as: ■
total number of changes;
■
number of standard changes;
■
number of non-standard changes;
■
number of rejected changes;
■
number of fast-track changes;
■
queue of pending changes;
■
number of changes not successful in first attempt;
■
number of escalations;
■
cost per change;
■
in relation to number of changes to number of equipment/users.
Service deliverables Table 3.9 shows the deliverables for change management.
Service deliverables for change management
Gather requirements for change
•
Validate change requests
•
Recommend solutions based on standard service and product catalogue
•
Extended
Level Mandatory
Service deliverable
Standard
Table 3.9
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IT Asset Management
continued
Extended
Level Mandatory
Service deliverable
Standard
Table 3.9
Recommend solutions beyond standard service and product catalogue
•
Create and implement workarounds
•
Define and maintain business process documents
•
Develop change procedures for standardized changes
•
Develop change procedures for non-standardized changes
•
Develop and maintain risk register and mitigation plan
•
Coordinate change requirements for non-standard installation, additions, moves, deletions and upgrades Coordinate change requirements for standard installation, additions, moves, deletions and upgrades
• •
Coordinate change requirements for infrastructure
•
Manage change processes
•
Report on change success, failure and cancellation
•
Follow up and resolve identified problem areas
•
ORDER PROCESSING Definition and outline Definition 11: Order processing Order processing manages the process of handling customer requests for IT equipment to be installed, moved, added to, changed or removed, by making use of and integrating with existing change and service management processes, including logistics. Requests are handled from their initialization, through analysis, validation, authorization, procurement, purchase, logistics, acceptance and closure. Order processing keeps track of warranty information. Order processing provides commercial management of change in respect of assets, inventory and logistics for global stock and spares management. Order processing is closely linked to standard change processes and service management.
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IT asset management services
The handling of inventory logistics services includes the following: ■
receiving inventory, temporary storage, labelling and scanning of inventory, entry of initial inventory information into the inventory repository and reconciliation of asset data with order or invoice information;
■
providing logistics support to ensure that inventory is sufficiently maintained and protected while in storage and during transportation. Logistics support also provides options for decommission, recommission and retirement of inventory;
■
preparation of equipment prior to delivery, covering the unpacking of components, assembly and staging of operating systems and applications, integration testing of sample systems and set-up, initial security implementation, repackaging of the system and preparation for transportation.
Service deliverables Table 3.10 shows the service deliverables for order management. Table 3.10 Service deliverables for order management
Maintain product catalogue: – product substitution – product portfolio maintenance – source recommendation – monthly updates – adding and deleting items
•
Maintain vendor tables
•
Maintain master product catalogue providing monthly updates, adding and deleting items
Extended
Standard
Level Mandatory
Service deliverable
•
Perform enhanced master product catalogue management including: – proactive review of catalogue – supplier product release trends
•
Perform enhanced requisition processing: – identify and recommend alternative products – shop for orders (no preferred supplier) – validate entitlements of requests – provide link to software compliance monitoring
•
Interface to helpdesk, IMAC and inventory management processes and tools
•
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IT Asset Management
Table 3.10 continued
Provide technical support to ensure compatibility with existing environment and product standards
•
Provide ongoing project management for business analysis, process re-engineering, productivity improvements and implementation of recommendations
•
Provide interface to finance, procurement and purchasing systems: – customize processes and procedures – select tools – update the systems for pending or ordered assets
•
Coordinate requisitions and orders for project roll outs
•
Handle all procurement activities including: – enhanced supplier management – guaranteed pricing – negotiation of volume purchase agreements – strategic supplier management
•
Placing purchase orders using manual and electronic methods
•
Establish online interfaces with order tracking and user self-service were applicable
•
Establish and manage acceptance of purchased assets procedure
•
Receiving purchase manually and through electronic sources
•
Reconcile invoices and orders
•
Handle assets acquired through other sources
62
Extended
Standard
Level Mandatory
Service deliverable
•
Validation and entitlement: – receive requisitions – validate accuracy of request or requisition – validate compliance with product catalogue – validate mandatory fields for order placement – pursue approvals
•
Process requisitions: – receive into order processing system – create orders from requisitions – process rush orders – process change orders – process return material authorization (RMA)
•
IT asset management services
Table 3.10 continued
Obtain and confirm quotes
•
Perform second sourcing
•
Track and report on orders: – track order status – manage backlog – measure compliance with SLA – maintain master product catalogue – update the order status
•
Monitoring supplier performance: – perform order processing – track open order and pending shipments – maintain problem log – recommend supplier changes – review recommendations and take action
•
Prepare reports: – pending shipments (weekly) – open orders – value of orders processed – types of equipment – operational reports
•
Preparation of reports for internal user including: – SLA compliance reports – cycle time reports – volume reports – discrepancy reports – order status reports – internal operational reports
•
Extended
Standard
Level Mandatory
Service deliverable
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IT Asset Management
Logistics Table 3.11 shows the service deliverables for logistics. Table 3.11 Service deliverables for logistics
Extended
Standard
Level Mandatory
Service deliverable
Perform shipping including: – handling of the shipping request – preparation and tracking of shipment – validation of invoices
•
Perform receiving including: – handling order delivery and acceptance – validating contents against packing slip – notification of receipt and corresponding updates
•
Provide warehousing including: – site preparation and access control – warehouse inventory and tracking
•
Dispose of assets: – develop disposition plan – decommission and recommission inventory – notification of available inventory
•
CONTRACT MANAGEMENT Definition and outline Definition 12: Contract management Contract management handles customer and vendor relationships based on contracts with performance measures included, e.g. SLAs on an operational day-to-day basis. Contract management provides core information for billing. Contract management also maintains a synopsis of existing contracts for corporate access and identifies services to be delivered.
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In an operational environment contract management is likely to interact closely with account management, which usually handles the customer relationship, including performance-related issues. The account management relies on the centralized storage and maintenance of relevant contracts. Contract management is a bilateral function between the parties which have signed a service agreement. These parties can be internal entities, but may also be – as in the context of service contracts – external service providers. In any case, contract management provides an interfacing function between customers and service providers by utilizing contract managers to bring together the relevant stakeholders and their interests. Contract management oversees the implementation and subsequent performance of service and delivery contracts which impact on asset management in general, such as: ■
project contracts;
■
service contracts;
■
leasing contracts;
■
delivery contracts;
■
acceptance.
Depending on the organization’s size and the scope of the agreed service contracts, contract management can be structured to cover the corporate level or just single areas of service components. Contract management contains performance management to ensure mutual contract fulfilment. In particular this includes controlling SLA attainment and the definition and initiation of necessary measures where applicable. For cases of actual or expected infringements of contracts escalation procedures are in place which allow for timely and effective interventions. The interaction between customer and service provider is illustrated in Figure 3.8 where contract management is shown as providing a function overseeing service processes and contractual performance. Figure 3.8 shows an additional function on the service provider side. This is the service delivery manager, who holds overall responsibility for customer operations based on single or multiple contracts. Customer operations typically comprise tasks such as: ■
request management;
■
remote support;
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IT Asset Management
■
remote management;
■
installations, moves, additions, changes and removals;
■
maintenance;
■
repair;
■
provision of spares.
These operational tasks are coordinated and managed by the service delivery manager as the central point of contact. The service provider hence provides an additional step within the escalation procedures before the contract manager is involved. Fig. 3.8
Contract management
Service provider
Customer Contract manager
Contract management
Service delivery manager
Escalation
End-user/ customer
Contract manager
Service request Service delivery Defined services
The contract manager and the service delivery manager are responsible for the implementation of services as defined within contracts and agreements. This responsibility frequently includes the interpretation and application of contracts and agreements which are ambiguous or allow for different interpretations. It is down to negotiation skills and fairness to interpret contracts in such a way that both a long-term and successful relationship can be established between the parties involved. In IT in particular, contracts which have been agreed and signed will most likely undergo changes while in place. These changes may not necessarily be covered by or even foreseen within the contract. The contract management negotiates these changes when they occur or provides standard procedures for predefined types of changes in order to offer the flexibility required to meet expectations.
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Service deliverables Table 3.12 shows the service deliverables for contract management. Table 3.12 Service deliverables for contract management
Manage product warranty
•
Administer and manage warranty periods
•
Extended
Standard
Level Mandatory
Service deliverable
Administer maintenance contracts
•
Administer leases and rentals: – expiration analysis and recommendations – charge-back methodology and administration
•
Administer maintenance contracts
•
Administer service delivery contracts
•
Manage service delivery
•
Handle change requests: – receive change requests – evaluate change requests – negotiate re-charge Renew existing vendor contracts
•
Terminate existing vendor contracts
•
67
4 Financial aspects
■
Property accounting
■
Budget and cost control
■
Potential cost savings
71 72 73
69
Financial aspects
PROPERTY ACCOUNTING Asset management and property accounting are closely linked and in some instances even used interchangeably. This understanding stems from the use of the word ‘asset’ being related to financial assets, i.e. property, which is related to old French ‘assez’ and vulgar Latin ‘ad satis’ in the sense of ‘to sufficiency’. The term ‘asset’ is generally explained as: ■
any thing of value
■
property
■
sufficient estate to pay off debts
but also as: ■
a useful or valuable quality, skill or person
■
a part of the usually valuable property.
ITAM, however, goes beyond this understanding of assets within a financial context. ITAM not only relates to all IT assets which are at an organization’s disposal, irrespective of ownership, but also to the technical management of this equipment. The requirement to keep track of an organization’s assets, and hence report on the use of stakeholders’ capital, is extended due to the requirement to also keep track of rented and leased equipment. Subject to contracts, organizations may hence be obliged to account for assets that are not owned in a similar way as for assets that are owned. Outsourcing, leasing and rental businesses often contract their customers to provide the asset management for the equipment used. Increasingly the provision of ITAM services becomes a service differentiator and best practice ITAM programmes help to gain competitive advantage. Beyond these obligations ITAM also includes the technical management of assets, which may be a specific property of technology, e.g. in configuration management and remote management. ITAM provides the data required for property accounting and contract management such as: ■
depreciation parameters;
■
ownership;
■
contract and vendor information;
■
service levels;
■
entitlement (for service).
Property accounting may be understood as one application of ITAM among others. Relevant details for property accounting and, for example, lease contract
71
IT Asset Management
management can be reported from the ITAM repository, possibly linked to and reconciled with data from purchasing and procurement. Likewise data for re-charge and billing can be derived from the ITAM repository and linked to information from cost controlling systems.
BUDGET AND COST CONTROL Often organizations struggle to determine an adequate level of IT expenditure and the expected ROI of investments in IT which may be justified through: ■
cost savings;
■
staff savings;
■
quality improvements.
Perhaps due to the strategic importance of technology, IT seems to be ‘incompatible’ with traditional management measures such as cost controlling and project management. Organizations sometimes invest in IT not only for business requirements, but also in order to maintain state-of-the-art equipment and infrastructure. This may be due to the fact that organizations need to stay at the forefront for competitive reasons, but also to the need to maintain an image or to follow its beliefs. Despite reductions in overall spending, IT budgets are not necessarily cut back in the same way as other budgets. Cost control of IT projects does not often take place in the same rigid and effective way as for projects outside IT. Project failure is often observed and more likely with IT projects and an ROI below cost can often be observed with IT investments. Consequently, organizations are increasingly looking for IT expenditure to be treated in the same way as other capital investments which are expected to deliver tangible profits. The principles and concepts applicable to general management are also to be applied to IT management. The financial framework may not work as expected, as IT projects are variable, complex and interrelated in their outcome. The steps in the decision-making framework may comprise the following: 1. Investment proposal 2. Estimates of cash flows 3. Evaluation of cash flows utilizing, for example, payback or net present value 4. Selection of projects based on acceptance criteria 5. Continuous re-evaluation of investments after acceptance. The evaluation of an IT project itself, focusing only on the project rather than on a corporate view which also includes the project’s interrelations with and contribution 72
Financial aspects
to an overall investment portfolio, is difficult and is likely not to provide the required comprehensive view and hence lead to the perception of failure. The failure of an IT project may be related to the absence of clear strategic goals and well coordinated structures for implementation, which can lead to the project ■
not meeting objectives and expectations, e.g. with respect to availability and performance;
■
not meeting timelines or budgets;
■
systems not usable.
Besides a direct impact on costs, revenue and re-charge, ITAM adds to the ability to control IT costs, as shown in Table 4.1. The various approaches to cost control have been linked to possible contributions by ITAM in the right-hand column of the table. Table 4.1
Controlling IT costs
Approach to control costs
Contribution of ITAM
Reduce complexity of IT systems by reducing overall complexity of business processes
Order processing and change management
Standardization of IT inventory to reduce complexity
Establishment of configuration and change management
Create single point of contact for service delivery
Improved information flow and availability with respect to serviced inventory
Use of remote management capabilities
Improved information flow and availability with respect to serviced inventory
Centralized and standardized IT purchasing
Improved information flow and availability with respect to serviced inventory, contract management
Life cycle management
Data analysis of installed base enabled through accurate and timely information
Plan ahead
Support of life cycle management and preventative measures
POTENTIAL COST SAVINGS IT costs can be grouped into those that have been budgeted for and those that have not. Budgeted costs are, for example: ■
hardware and software
73
IT Asset Management
■
management
■
support
■
development
■
communication.
Costs not budgeted for are, for example: ■
end-user self-support
■
downtime
■
costs incurred during life cycle.
Through the availability of accurate and timely information ITAM is able to address both budgeted and non-budgeted cost. In general, cost impact, including headcount, can be structured as: ■
cost avoidance;
■
cost reductions;
■
cost control;
■
cost re-charge (both internal and external).
Within the context of finance, ITAM delivers basic management information to support management tasks such as ■
capacity planning;
■
budgeting;
■
software licence compliance;
■
contract management.
Further cost impact may also be derived from an adjustment of the depreciation period to the technical life cycle of IT assets. The technical life cycle reflects the economic usability of equipment, also taking into account operational costs such as maintenance. However, depreciation periods are determined on economic life cycles, which are related to the economic value of equipment based on ageing, wear and tear. As the economic value, i.e. the book value, does not reflect the relevance of the equipment for the organization or the technical life cycle differences are likely. Eliminating equipment that has been retired or disposed of but which still shows a book value from the property accounts will offer immediate tax savings, where tax is calculated on the basis of a company’s property. Potential cost savings through ITAM programmes also lie in shifting workload from highly skilled technical staff toward less skilled staff, e.g. in helpdesks, supported by ITAM processes and technology. Staff in centralized service
74
Financial aspects
functions such as helpdesks are enabled to manage on-site interventions were necessary based on the information available. Current and future cash flows are impacted through the ability to bill accurately and in a timely manner for contracts where billing on a per seat/system base is required. Changes to billing on a usage base may only be carried out on the basis of accurate inventories and measurements. Accurate inventory information is also required for effective and improved cost controls which lead to cost reduction, e.g. within the area of equipment levels. Accurate ITAM can be expected to help organizations to achieve significant cost savings. These may amount to 20 per cent of the overall asset cost following the implementation of ITAM. The integration of ITAM systems with other back-end systems also allows for process and resource economies which enables organizations to benefit from interaction with change management. ITAM can contribute to cost savings either directly, e.g. through re-charge mechanisms, or indirectly, e.g. through process support and information. Direct and indirect contributions of ITAM to cost savings are summarized in Table 4.2. Table 4.2
Cost impact of ITAM
Impact
Area
Details
Direct
Winning/Retaining Business
Where ITAM is a deliverable expected by customers, e.g. as part of supply chain management, process excellence or outsourcing, ITAM is a service differentiator.
Revenue/cost recharge
Accuracy of billing and recharge. Usage control.
Licence management
Failing to accurately manage desktop and operating system software licences is likely to lead to over-licensing. ITAM programmes will furthermore help to avoid risks of illegal use of software or breach of licence agreements.
Property accounting
Control and protection of investments.
Standardization
Design and implementation of configuration standards.
Capacity planning
Plan for required levels of capacity and availability, including redundancy and expected downtimes.
Life cycle management
Planning capabilities, including ‘green’ issues.
75
IT Asset Management
Table 4.2 Impact
Indirect
continued
Area
Details
Change management
Risk mitigation for changes in business environment. Controlled technology migration.
Inherent benefits
Process design. Due diligence. Tool evaluation. Requirement gathering. Service product design.
Purchasing
ITAM supports centralized purchasing to close volume deals on hardware, software and infrastructure.
Logistics
Support of multi-echelon systems.
Asset utilization
Re-use of assets, including software. Optimized software deployment. Utilization of over-capacity. Elimination of retired equipment from inventory. Selling of excess equipment.
Billing
Enable and support customer-focused billing and re-charge methods, e.g. based on asset use.
Spare management
Determination of correct spare levels and support of spare management and logistics.
Cost control
Control of asset-related costs.
Project accounting and control Reconciliation of plan vs. actuals. Identification of outstanding duties.
76
Disposal
Planning for disposal policies.
User support
Provision of accurate and timely data. Accelerated communication. Reduced costs.
Maintenance
Provision of data for preventative maintenance schedules. Identification of faulty products (downtime, maintenance, logistics and spares). Base data for SLA-based maintenance contracts.
Business
Increased speed of business cycles. Improved flexibility. Improved decision making
5 Reporting
■
Definition and outline
■
Data sources
81
■
Data analysis
84
■
Report production
■
Sample report
79
84
85
77
Reporting
DEFINITION AND OUTLINE Definition 13: Reporting Reporting provides transparency and understanding of complex, diverse and large data sources through the grouping and comparison of relevant sub areas, utilizing arithmetic, mathematic and statistical methods. Reporting combines and links information according to defined measures. Within ITAM, reporting is aimed at ongoing control and analysis of the installed base. This is achieved through: ■
information on inventory and life cycles;
■
demographic and geographic distribution;
■
control of inventory scans, audits and optimization measures;
■
analysis of growth and capacity;
■
progress statistics of change and configuration management;
■
information regarding non-authorized configurations;
■
inventory evaluation.
The transparency gained provides the basis for planning and operational management within an organization, e.g. resource management, capacity planning and service management. The reporting is hence structured according to the various requirements: ■
quantitative aspects referenced to timescales: – numbers in inventories (number of assets, number of licences) – incidents (changes, installations, disposals) – outages (number and durations);
■
organizational aspects: – accounts – departments, profit and cost centres – user – processes;
■
geographic aspects: – regions – locations – sites;
■
technical aspects: – asset categories
79
IT Asset Management
– status information – life cycle information – history – dependency and hierarchies of assets – outages and reasons – non-authorized configurations – licences usage analysis; ■
performance monitoring: – SLA attainment – downtimes – malfunctions – changes (number, backlog) – time to react – time to restore.
The various groupings of reports allow monitoring of quality and performance of service management through comparison of reporting periods, e.g.: ■
number of incidents relevant to service;
■
number of assets and their status;
■
cost of assets;
■
cost of service per asset;
■
cost per incident.
Through the integration of ITAM data into other databases of service management extended analysis of overall service management becomes available, such as: ■
impact of a helpdesk on quality and performance through ‘First Call Resolution’ and remote management;
■
changes in priorities of requests;
■
changes in service costs (diagnosis, remote management and field services);
■
changes in hours of service;
■
SLA attainment;
■
number and types of changes.
Billing may be understood as a specific form of reporting. The data required for purposes of billing and re-charge can be provided by ITAM and linked databases. Depending on the tools in place, invoices may be produced directly out of ITAM systems.
80
Reporting
Data can be broken down into internal and external customers and further divided into geographic aspects. Data provided for billing and re-charge can include: ■
number of assets;
■
basic data to determine depreciation;
■
additions and deletions within property accounting;
■
cost of service;
■
availability;
■
calculation of penalties.
DATA SOURCES Reports make use of available data and data derived from available data sources. Hence reporting requirements need to be considered in planning and project phases in order to make sure that the necessary information is available from the data models that have been designed. The creation of a report which cannot make use of available or derived data usually entails significant manual effort and cost. This additional effort is likely to impact the overall efficiency of reports and production cost. However, it is usually the case that reporting and data requirements are often only taken into account after project closure and hand-over to operations. Implementation phases for reporting are shown in Figure 5.1. The diagram also indicates that reporting requirements, e.g. key indicators and measurements, have to be defined prior to the implementation of the report itself. The subsequent implementation encompasses all the necessary steps to integrate the data into one coherent report. Fig. 5.1
Report implementation
Project planning
– SLA definition – Key performance indicators – Asset details and properties
Report implementation
– – – – – –
Data sources Data deriviation Report format Frequency Dates due Design and layout – Programming/ coding – Web design – Communication planning
Report production
– Timely production – Distribution – Quality and consistency checks
Report analysis
– Performance indicators – Trends – Cause analysis
Feedback
– Presentation – Expectations – Contract impact
81
IT Asset Management
Along with the technical and statistical requirements reports also have to employ an adequate layout and sensible display and format of data to ensure both optimal readability and that what is probably complex data can be understood. The volume and level of detail in the report are related to the recipients. A summary of the report should provide a quick overview of the main contents and key measures. Following implementation, reports are produced as frequently as requested by those who will receive them. Based on a prototype, reporting needs to be automated as far as possible in order to minimize the manual intervention costs associated with frequent report production. Report production also includes frequent qualitative and quantitative checks with respect to: ■
completeness
■
consistency
■
plausibility.
These checks will ensure the validity of the reports is accepted. Data gathered within the reports will be analysed to identify underlying issues and reasons for any divergence from the expected. Actual and historic data are used to determine trends on which forecasts can be based so that any action which may be required can be identified. The report is finally distributed and presented to a defined set of recipients, e.g. management, internal customer, external customer. These presentations are regularly used to verify customer satisfaction, i.e. compliance of service operations with set objectives. Based on the feedback from the recipients measures to improve operations may be taken. Sources for reports can be divided into newly generated (primary) and already existing (secondary) data. Primary data sources include: ■
inventory scans;
■
due diligence;
■
service requests;
■
change management;
■
installations and roll-outs;
■
surveys.
Secondary data sources include: ■
asset management repositories;
■
configuration databases;
■
user databases.
Within the context of ITAM data sources are linked to obtained enhanced information, such as: 82
Reporting
■
cost of service per asset category;
■
duration and frequency of outages;
■
impact of outages on capacity;
■
cost re-charge;
■
asset evaluation.
Often ITAM data sources are used as data keys, e.g. using serial numbers or asset tags to refer to other data sources. Linked secondary data sources include: ■
service management databases;
■
management information systems (MIS);
■
enterprise resource systems (ERP);
■
customer relationship management systems (CRM);
■
property accounting;
■
cost controls.
Options for integrating ITAM data with internal and external data used for service management are shown in Figure 5.2. Regulations in operation, such as legislation, policies and contracts, and measurement definitions are shown as filters within the diagram. These filters determine the type, area and focus of the report. Fig. 5.2
Data links
External data sources
Internal data sources
User-related data
User-related data
Names Phone numbers Addresses Used systems access etc.
Names Availability Roles and responsibilities Skills etc.
Technical and strategic data Customer data Applied systems Available systems Customizations
Asset Management Repository
Service Management Database
Regulations
Consolidated data Request categories Problem categories Time to restore etc.
Measurements
Reporting/Controlling
83
IT Asset Management
DATA ANALYSIS Sample options for reports and analysis are shown in Figure 5.3. Depending on the categorization of assets in use, the ‘general’ section in particular in Figure 5.3 may be extended significantly where deemed necessary for the relevance of reporting.
– Planned actions
– Status
Asset life cycle
– Hierarchies
– Processes
Areas of application
– Sites
– Cost centres
– Accounts
Organizational
– Regions
– Locations
– Departments
– Users
Data analysis matrix
Demographic data
Fig. 5.3
General – Categories – Types – Items Software – Standard
Service performance – SLA performance – Number of service interventions – Number of service requests – Number of failures and outages – Outage duration – Time to react – Time to restore
– Individual – Packages Services – Priorities
Cost – Opportunity cost – Depreciation – Maintenance – Repair – Cost of service per asset
Inventory statistics – Counts – Serial numbers – Licence numbers – Ageing – Additions and deletions – Changes – History – Configurations – Non-authorized configurations – Utilization – Capacity
– Severity
A set of information relevant to the needs of organizations or single departments is put together from the various indicators shown and statistical statements, including optional derivations and enhancements. This information is then used to form a standardized and automated reporting, which is distributed to a predefined time schedule.
REPORT PRODUCTION The overall report production process is illustrated in Figure 5.4. All relevant data, including ITAM and other data sources, are merged into a centralized database or storage area for processing, shown in Figure 5.4 as the ‘Report
84
Reporting
Engine’. The data external to ITAM which is included in the production of the report, will comprise both primary and secondary sources. Primary data are likely to have immediate impact on ITAM data, e.g. through change management, the processes of which will foresee an update of the asset repository. It is important for the validity and quality of reports that these links do not distort reports, e.g. through double counting. The report engine functionality can be provided by an ITAM system, but also by a separate system. Through the report engine standardized reports and processed raw data are provided frequently. Standardized reports will be predefined with respect to: ■
format;
■
contents;
■
communication plan;
■
frequency and due dates;
■
analysis.
Raw data will be predefined with respect to: ■
format;
■
data set.
Raw data can be used to produce individual, customized or ad hoc reports. Departments and customers are thus enabled to produce their own reports for a particular area of interest within a predefined scope. This ‘do-it-yourself’ reporting relieves service functions of requests for specialized reports beyond the defined standards and also allows those requesting individual reports to process the data with their own resources and hence not receive additional re-charges. It is sometimes observed that the priority perceived by requesters will be set much lower when these reports can be created ‘in-house’ and thus tie up internal resources. Both standard reports and processed raw data will be communicated or electronically stored in an accessible data storage area, e.g. on a website, as shown in Figure 5.4.
SAMPLE REPORT The following pages show sample standard reports for outsourced operations supporting three sites of an imaginary global organization. The equipment was renewed early in 2002 following a system migration. Roll-outs have started January 2002 in New York, followed by London (March) and Singapore (May).
85
IT Asset Management
Report generation overview
Other data sources (secondary)
Asset repository
Change and installationprocesses
Primary data sources
Fig. 5.4
Report engine
Standard reports
Raw data (processed)
Web page
The sample reports shown are as follows: Inventory summary
The example shows the entire IT equipment installed since the system migration, in cumulated numbers, i.e. monthly inventories. The report contains the numbers for all sites.
Site inventory
The example shows the site inventory for the New York site, providing details for hardware
86
Reporting
and software installed. The numbers shown are the monthly inventories. Property accounting
A sample report for use within property accounting, showing the amount of equipment purchased in each month for all sites during the course of the current year.
IMAC statistic
This provides an overview of moves, additions, changes and deletions carried out globally in each month.
Configuration change requests
This
shows
requested
changes
to
the
configurations of workplaces. These changes become IMAC requests once the change procedures for the configurations have been defined. It is assumed that change requests lead to a new configuration and hence no versions and releases need to be tracked.
Inventory Summary (cumulated) 2002 Jan Feb Mar Apr May Jun
Jul Aug Sep Oct Nov Dec
Hardware Workstation Type I Workstation Type II Workstation Type III Total workstations
9 5 13 27
37 107 144 219 224 233 235 238 15 36 36 64 71 76 76 77 13 16 16 30 30 30 30 31 65 159 196 313 325 339 341 346
Personal Printers Network Printers Servers Workgroup Hubs Switch/Hub Routers
8 10 4 4 4 3
20 10 6 10 4 3
Standard Software MS Office Professional MS Visio Lotus Notes MS Project Adobe Illustrator
27 18 27 18 18
65 159 196 323 336 339 342 347 28 52 52 99 103 106 107 109 65 159 196 323 336 339 342 347 28 52 52 99 103 106 107 109 28 52 52 99 103 106 107 109
Customized Software IPO ProdPlan v3.7 IPO CRM v1.2
14 14
52 143 180 293 306 309 312 315 52 143 180 293 306 309 312 315
58 22 14 30 10 8
72 116 122 124 127 127 22 33 33 33 36 36 14 21 21 21 22 22 37 59 63 64 66 66 10 15 15 15 15 15 8 12 12 12 12 12
87
IT Asset Management
Site Inventory New York 2002 Jan Feb Mar Apr May Jun Workstation Type I Configuration I.0 Configuration I.1 Spares Adds/Deletions Workstation Type II Configuration II.12 Configuration II.13 Configuration II.14 Spares Adds/Deletions Workstation Type III Configuration III.32 Configuration III.40 Configuration III.41 Configuration III.42 Configuration III.43 Spares Adds/Deletions
9
5
10
37
15
7 3
68
Jul Aug Sep Oct Nov Dec
5
68 17 5
85 5
85 5
85 5
87 5
90 5
21
21
21
21 4
21 4
25
2
2
2 2
2
2
2
24 1 2
5 5
2 8
2 5 3
2 5 2 1
2 3 4 1
2
2
1 7
2
2
2
2
2
2
7 2 2 1
Personal Printers Canon HP Spares Adds/Deletions
4 4
10 10
18 18 4
21 21 4
21 21 4
21 21 4
21 21 4 2
23 22 4
23 22 4
HP 45xx HP 8xxx Spares Adds/Deletions
4 6
4 6
4 6 1
4 6 1
4 6 1
4 6 1
4 6 1 1
5 6 1
5 6 1
Domain Controller File Server Spares Adds/Deletions
2 2
2 4
2 5
2 5
2 5
2 5
2 5
2 5
2 5
18 2 4 1 3 1
21 2 4 1 3 1
21 2 4 1 3 1
21 2 4 1 3 1
21 2 4 1 3 1 2
23 2 4 1 3 1
23 2 4 1 3 1
Network Printers
Servers
Infrastructure SMC Workgroup Hub Spares SMC Switch/Hub Spares Cisco Router Spares Adds/Deletions
88
1
4
10
4
4
3
3
Reporting
Jan Feb Mar Apr May Jun
Jul Aug Sep Oct Nov Dec
Standard Software MS Office Professional MS Visio Lotus Notes MS Project Adobe Illustrator Adds/Deletions
24 15 24 15 15
62 108 125 127 129 129 131 136 25 35 35 37 39 39 39 41 62 108 125 127 129 129 131 136 25 35 35 37 39 39 39 41 25 35 35 37 39 39 39 41 5 4
Customized Software IPO ProdPlan v3.7 IPO CRM v1.2 Adds/Deletions
14 14
52 52
96 113 115 117 117 119 122 96 113 115 117 117 119 122 2
Property Accounting 2002 Jan Feb Mar Apr May Jun
Jul Aug Sep
Year to date
Workstation Type I Workstation Type II Workstation Type III Total workstations
9 5 13 27
28 10 0 38
70 21 3 94
37 75 0 28 0 14 37 117
5 7 0 12
9 5 0 14
2 0 0 2
3 1 1 5
238 77 31 346
Personal Printers Network Printers Servers Workgroup Hubs Switch/Hub Routers
8 10 4 4 4 3
12 0 2 6 0 0
38 12 8 20 6 5
14 0 0 7 0 0
44 11 7 22 5 4
6 0 0 4 0 0
2 0 0 1 0 0
3 3 1 2 0 0
0 0 0 0 0 0
127 36 22 66 15 12
Standard Software MS Office Professional MS Visio Lotus Notes MS Project Adobe Illustrator
27 18 27 18 18
38 10 38 10 10
94 24 94 24 24
37 127 0 47 37 127 0 47 0 47
13 4 13 4 4
3 3 3 3 3
3 1 3 1 1
5 2 5 2 2
347 109 347 109 109
Customized Software IPO ProdPlan v3.7 IPO CRM v1.2
14 14
38 38
91 91
37 113 37 113
13 13
3 3
3 3
3 3
315 315
Hardware
89
IT Asset Management
IMAC Statistic 2002 Jan Feb Mar Apr May Jun
Jul Aug Sep Oct Nov Dec
Moves Total Moves
1
Adds/Deletions Workstation Type I Workstation Type II Workstation Type III Personal Printers Network Printers Servers Infrastructure MS Office Professional MS Visio Lotus Notes MS Project Adobe Illustrator IPO ProdPlan v3.7 IPO CRM v1.2 Total adds
4
3
5 5
9 2
2
6
1
1 1
1
4
2 3 1 11 2 11 2 2 11 11 62
2
1
4 10 5 10 5 5 10 10 73
17 179
9 9
1
1
7
1 1 1 1 1 1 1 8
1 1 1 1 1 1 1 8
9 5
2 56
3
Changes Configuration I.1 Configuration II.13 Configuration II.14 Configuration III.40 Configuration III.41 Configuration III.42 Configuration III.43 Total changes
5 3
0
3
2
2
3
9 3
20 191
1 1
12
20
26
6 64
2 10
Configuration Changes 2002 Jan Feb Mar Apr May Jun Configuration I.1 Configuration II.13 Configuration II.14 Configuration III.40 Configuration III.41 Configuration III.42 Configuration III.43
1 1 1 1 1 1 1
Total Change Requests Requests pending
90
Jul Aug Sep
1 1
0
2
1
1
2
0
0
1
2 0
0
1
6 Organizational structure
■
Impact of ITAM
■
Roles and responsibilities
93 94
91
Organizational structure
IMPACT OF ITAM ITAM has to be understood as an ongoing effort, where frequent action is required to maintain an accurate inventory. The data within any system is likely to become out of date within a very short period of time if not frequently updated. These updates are supported by organizational processes and responsibilities rather than by technology. The cost of technology implementation is exceeded by organizational change, the establishment of roles and responsibilities and database maintenance. Following an implementation and the processes of data gathering through wallto-wall inventories, operational processes need to be designed and integrated to include all five basic ITAM components: ■
inventory management;
■
configuration management;
■
change management;
■
order processing;
■
contract management.
These processes will usually be carried out by individuals supported by technology. Depending on the organization’s size and the amount of equipment involved, these functions need to be integrated into existing functions or dedicated functions need to be set up. ITAM functions also need to be closely integrated into the existing organizational structure in order interact with other organizational functions, as shown in Figure 6.1. Fig. 6.1
ITAM organizational structure
Tools and technology
IT infrastructure
IT procurement
IT asset management
ITAM data administration
Inventory tracking
Configuration management
Change management
Order management
Contract management
93
IT Asset Management
ITAM programmes straddle corporate functions, including business, technical and non-technical support functions, and hence a number of functions need to be represented within the ITAM organizational set-up, for example: ■
helpdesk, service centre or other centralized user support function;
■
purchasing;
■
software distribution;
■
procurement;
■
end users/customers;
■
contract management;
■
information services, including communications, infrastructure, desktop, server and host;
■
support functions, such as human resources, legal and finance.
The implementation of ITAM functions into organizational structures has been observed in numerous organizations in recent years. This development points to how critical it is to have the appropriate level of resources and accountability assigned to an ITAM programme in order to make it a success. However, ITAM implementations are unlikely to meet expectations unless executive buy-in and understanding of senior management’s requirements and expectations are ensured.
ROLES AND RESPONSIBILITIES The typical roles and responsibilities involved in ITAM are described below. These roles do not necessarily represent dedicated staff but may be part of an overall job description for an employee, depending on organizational size and operational needs. In general, management functions are embedded in an overall organizational structure. This structure derives from the determination of an organizational task into subtasks, section and departmental remits. Departments may only act independently within these remits exceptionally or within limited or narrow constraints. Cooperation and interaction are indispensable in striving for organizational objectives. Configuration management is one of those tasks within an organization which typically has interactions and interdependencies with a variety of organizational functions, and hence requires roles and responsibilities to be defined in the context of the organization as a whole and interfaces arranged accordingly. Organizational roles and responsibilities generally depend on:
94
■
size of organization;
■
number of configurations to be administered;
Organizational structure
■
level of detail and complexity of configurations;
■
organization’s dependency on technology change;
■
internal and external service delivery.
The roles and responsibilities described below are to be considered in the light of these dependencies, which may be integrated in other functions or roles, or may require entire teams with dedicated staff which in turn require further structuring. It should also be noted below that: ■
the term manager refers to the function performed rather than job classification or title;
■
responsibilities include but are not limited to those listed for each role.
Within the context of ITAM, service management is of central importance, because the strategies and policies defined within service management provide direction to operations. The service manager will provide approval to core ITAM elements, such as the inventory plan, spare part policy and business continuity policy. The set-up of IT services in general has a significant impact on the scope and objectives of ITAM. Closed service contracts or the outsourcing of an organization as a whole or in part to external service providers demand reflection within ITAM or even make ITAM obsolete when provided externally. The services themselves are defined by a comprehensive IT strategy, which reflects or imposes the level of dependency of an organization and its core business processes on IT. Higher levels of dependency will frequently require higher system availability and security, which in turn will increase service requirements. The level of detail required from configuration management will be impacted by these service requirements to provide supporting information. Direct and efficient cooperation between service management and ITAM is therefore vital for service performance. The IT service manager will usually hold responsibility for the IT service budget, which is closely linked to the management of internal and external service providers, i.e. contract management.
Transition/project manager The tasks of project and transition managers depend on the size and scope of projects. A project is understood within this context as a temporary organization, which is formed and maintained to achieve a defined objective, using defined resources within a given time frame. Depending on the scope of work involved, the resources available and proposed duration, a team and management is designed accordingly. Transition and project managers are needed to build the service delivery for ITAM, including process implementation and set-up of organizational structure.
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Typically the tasks and duties of transition or project managers can be described as: ■
agreement of clear project description, which explains objectives, scope, timelines and cost of project;
■
agreement of an acceptance procedure, orientated on qualitative and quantitative project outcomes;
■
customer expectation management;
■
identification of critical success factors;
■
management of all required planning activities within the context of the project;
■
resource management;
■
risk management;
■
project cost control;
■
identification, planning and coordination of all required activities to achieve the project objectives;
■
reporting on project performance;
■
documentation of project and outcomes;
■
project closure report, including experiences (‘lessons learnt’) and potential for optimization.
Project and transition managers work to the overall objectives agreed within service management, i.e. portfolios of service delivery units to implement the organization’s asset management policy and standards. This includes the evaluation of policies and standards in respect of the project and identifying and addressing possible gaps. In cases where ITAM is dependent on deliverables from other departments or customers’ responsibilities, existing systems and data availability have also to be evaluated and possible processes and tools for integration or interfacing identified. In respect of wall-to-wall inventories, project/transition managers have in particular the following responsibilities: ■
determining the wall-to-wall inventory scope;
■
developing the wall-to-wall inventory plan;
■
overall responsibility for preparing for the wall-to-wall inventory;
■
managing the wall-to-wall inventory;
■
obtaining accurate and complete baseline inventory data for the initial population of the production inventory database;
■
96
transitioning ownership of inventory where applicable.
Organizational structure
Asset manager The asset manager is responsible for the implementation of the IT and ITAM policy. Key tasks and duties are as follows: ■
application of overall ITAM policies and procedures;
■
formulation and administration of ITAM definitions and standards;
■
formulation and administration of ITAM naming conventions;
■
version and release control;
■
maintaining existing ITAM and inventory scanning systems including further development;
■
maintaining data integrity within the ITAM system and the relevant repositories;
■
design, negotiation and management of ITAM processes;
■
providing reports;
■
evaluation of impact and implications of change requests and technical improvements;
■
support for regular quality checks on the asset data operated;
■
evaluation of ITAM level that best meets the customer’s expectations, budget, resource, time scale and technical requirements;
■
proposing and/or agreeing interfaces with change management, network management, release management, desktop operations, logistics, finance and administration functions;
■
maintaining the inventory tracking system and processes, which capture configuration, demographic and financial data;
■
performing periodic ‘spot-checks’ on inventories to determine any variances between the inventory results and the information in the production inventory database;
■
defining inventory control strategy, policies and plans;
■
determining/updating the inventory tracking scope;
■
analysing order backlog and current inventory;
■
consolidating inventory requirements;
■
managing the approved inventory plan;
■
developing and maintaining the software licence control strategy.
Configuration manager The configuration manager is responsible for the implementation of the IT and configuration management policy.
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IT Asset Management
Key tasks and duties are: ■
determination of level of detail and development of asset model, including naming conventions and asset hierarchies;
■
design and management of the configuration plan, policies and standards;
■
process design and implementation;
■
maintenance of configuration management systems including any further development;
■
maintenance of data integrity with the configuration management system and the relevant databases;
■
definition and maintenance of process interfaces and procedures with other processes like change management and logistics;
■
evaluation of impact and implications of change requests and technical improvements;
■
support for regular quality checks on the asset data operated;
■
configuration version and release control.
Configuration librarian The configuration librarian archives and stores configuration information and documentation, referring to configuration items listed within the ITAM system and according to the asset management level. Key tasks and duties are: ■
receiving and managing configuration information and associated documentation;
■
withdrawing of outdated configuration information, where applicable;
■
assisting asset management to prepare configuration management plan;
■
creation and maintenance of libraries and other storage facilities for configuration information and documentation;
■
assisting in the identification of products;
■
maintaining current status of configuration information and documentation;
■
updating libraries with new or updated configuration information;
■
providing configuration information for review or change;
■
driving authorization of changed configuration information;
■
maintaining records of all copies issued;
■
collection and maintenance of information to support technical validation of change requests;
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Organizational structure
■
providing status reports;
■
assisting in configuration audits.
Change manager The change manager manages authorized change requests to be implemented in compliance with change management procedures and ensures changes are recorded in the change management database or system. Changes include: ■
changes to installed inventory;
■
changes to service and product catalogue;
■
changes to processes and procedures, including change management.
Key tasks and duties are: ■
assessing impact of requests for change and ensuring that implemented changes are as authorized;
■
analysis of each change request;
■
evaluating change requests and responding with impact statements, timelines and cost estimates;
■
managing change implementation across all functions;
■
release management.
Logistics manager Logistics management provides logistic solutions for installations/de-installations, change requests, spares management and repair management. Key tasks and duties are: ■
providing efficient, timely and cost-optimized logistic solutions;
■
ensuring inventory is sufficiently maintained and protected while in storage and during transit between the place of storage and the destination site;
■
handling the disposition of equipment out of use;
■
ensuring appropriate warehouse space and security;
■
accepting responsibility for received and kept inventory;
■
returning leased inventory;
■
preparing pre-delivery plan for requests;
■
verifying inventory received;
■
arranging for prevention of financial and physical loss;
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IT Asset Management
■
accurate and timely accounting of inventory movement, including storage areas;
■
inspecting inbound and outbound inventory for damage and completeness;
■
arranging for inventory labelling;
■
arranging for inventory tracking to ensure timely location and transfer of shipments;
■
reconciling shipments (number of boxes) with the shipping documentation.
Software custodian The software custodian holds software-related information and documentation, and archives master copies of all software configuration items which are listed within the ITAM database and according to the ITAM level of service. Key tasks and duties are: ■
control of software licence allocations;
■
auditing of software licences;
■
monitoring of software usage;
■
reconciling and reporting exceptions;
■
allocating and recording software licence assignments;
■
identifying and reporting on cost-saving potentials;
■
providing software licence consulting;
■
administering software licence, maintenance and support agreements.
IMAC coordinator The IMAC coordinator acts as a single point of contact (SPOC) for all predefined change and service requests which have an impact on inventory and configurations. Key tasks and duties are: ■
verifying received requests in respect of completeness of information, entitlement and validity;
■
providing assistance for configurations based on standard product catalogue;
■
coordinating installations, moves, additions, changes and removals of equipment and software;
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■
monitoring all received changes and their progress in respect of IMAC processes;
■
liaising with change manager and field services to execute IMACs;
■
providing pricing information for IMAC as per service catalogue;
■
handling IMACs out of scope;
Organizational structure
■
suggesting rules for acceptance, rejection and priority for changes received;
■
communicating acceptance, rejection and priority to customer;
■
providing reporting;
■
ensuring that the inventory and configuration database is updated to reflect IMAC activities.
Procurement manager The procurement manager has overall responsibility for an order from the creation or modification of a requisition to the receipt and validation of the order, including vendor management. Specific responsibilities include: ■
creating and modifying requisitions;
■
processing orders;
■
tracking all orders for delivery on all procured components;
■
answering calls for information/status and quotes;
■
coordinating receipt of orders;
■
confirming validated orders against the standard hardware and software configuration or pre-approved substitutes;
■
rejecting orders that do not conform to specified standards, unless the deviation is approved by the customer;
■
cancelling requisitions/orders;
■
handling return of incorrect or damaged items;
■
providing customer with configuration assistance and price quotations;
■
communicating order placement and estimated delivery date to requesting customer;
■
selecting vendors;
■
negotiating vendor agreements;
■
renegotiating vendor agreements;
■
renewing vendor agreements;
■
cancelling vendor agreements;
■
providing status as requested;
■
identifying/managing exception items that need to be addressed;
■
escalating exceptions as required;
■
ensuring all procurement tasks are completed;
■
ensuring problems are resolved and resolutions verified;
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■
updating request records as required;
■
analysing completed procurement requests and measurements.
Spares manager The spares manager provides – in cooperation with order processing and logistics – central order entry support, logistics planning and inventory control for all spare parts and depots. Key tasks and duties are: ■
assuring spare part availability according to spare part policy;
■
status reporting;
■
developing, improving, maintaining and monitoring of processes;
■
maximizing efficiency of spare part usage and operation;
■
assuring proper stock control and database maintenance via audits;
■
assisting in determining stock levels and low order points;
■
assisting in return/repair procedures;
■
providing reporting.
Contract manager The contract manager handles all contract related issues with the service providers and vendors. Key tasks and duties are: ■
maintaining updated records of all relevant contracts;
■
fostering effective communication;
■
quality control;
■
vendor database management and reporting;
■
statistics of the services provided;
■
coordination between the parties involved and invoice control;
■
monitoring quality of services based on the contract terms;
■
acting as the focal point of contact for either party;
■
control of all related invoices.
Business continuity manager The business continuity manager implements and maintains processes and procedures documented within the business continuity policy.
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Organizational structure
Key tasks and duties are: ■
developing and managing business continuity plans to ensure objectives of continuity policy can be met;
■
ensuring all service management parties are prepared to respond;
■
maintaining IT testing schedules;
■
reviewing relevant procedures;
■
ensuring awareness of business continuity issues within the business and IT;
■
involvement in contract management where necessary;
■
managing IT service delivery in cases of crisis.
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7 Technology
■
Management approaches
■
Layers of information
■
Asset tags
■
Tool requirements
■
Solutions
107
109
111 113
115
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Technology
MANAGEMENT APPROACHES Inventory management makes use of an initial wall-to-wall inventory, often also referred to as due diligence, as a baseline. These physical inventories are necessary for: ■
counting the number of pieces of equipment per location;
■
capturing necessary data from the inventory;
■
complementing physical data with contractual and financial data;
■
verifying the accuracy of the information initially provided, such as inventory lists.
Wall-to-wall inventories form the basis for internal and external service contracts. Combined with service requirements, formulated as SLAs, service fees or prices can be calculated on a per asset and per location basis. Service providers rely on the accuracy of the inventory for their calculation of: ■
levels of spares;
■
workload;
■
preventative measures;
■
number and location of staff.
Based on the initial wall-to-wall inventory, there are two principal methods for maintaining an accurate inventory. These are outlined in Figure 7.1 which shows the information flow to and from the inventory: ■
a reactive ‘pull’ of information from the inventory;
■
a proactive ‘push’ of information into the repository database.
Push and pull approach
Fig. 7.1
Inventory
‘Push’
‘Pull’
proactive management ■
■
managing outbound logistics, e.g. through MAC, based on due diligence and preliminary site surveys management-based approach: based on information available through site survey, roll-out, order and change management, logistic and field services
reactive management ■
■
polling information from components already installed approach based on inventory scan or audits: generally based on information available through tools, technology and functionality
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IT Asset Management
The ‘push’ approach strives to manage the flow of equipment into the inventory through certain processes and procedures. The wall-to-wall inventory is carried forward based on these agreed processes, which also include the management of the information flow toward inventory management. Implemented fully, the inventory would in theory be accurate at any point in time. The ‘push’ approach is very much in line with traditional methods for inventory and stock control. The ‘pull’ approach utilizes technology to get information from the installed base. The idea is to use scanning technologies and tools to receive information stored in the devices, and reconcile this data with the existing repository. From the unique identification of each device responding, an accurate inventory could be derived upon request at any point in time. The ‘push’ approach makes use of the manageability of IT equipment in respect of its ability to be scanned via a network. The basic advantages and limitations of both approaches are shown in Table 7.1. Evidence can be drawn from the table that the utilization of either of the approaches in isolation will not deliver sufficient inventory accuracy. Consequently, the solution is found in a combination – a hybrid – of both methods, utilizing the strengths of both in order to mitigate the shortcomings. Table 7.1
Push and pull limitations and advantages Push
Pull
Limitations
Little or no control over data accuracy Highly dependent on human/manual procedures and a conscientious way of working Little automization Frequent physical inventory required when overview of inventory is limited by numbers and geographic distribution
Complexity of technology Dependency on tools, functionality and infrastructure Spares and stock usually not included
Advantages
No functional limitations through technology Not dependent on tools and technologies
Control capabilities Proactive in respect of service delivery Links to enhanced functionalities such as remote management and software distribution
Depending on the types of equipment, numbers and geographic distribution, both approaches offer cost advantages or disadvantages. In a fairly small or easily surveyed environment concentrated in, say, a few locations, a ‘push’ approach
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Technology
may have significant cost advantages over a technology-based ‘pull’ approach purely due to the cost of technology and its implementation. A combination of both proactive and reactive management methods is likely to deliver the most efficient ITAM processes and procedures, supported by a set of tools. A well-designed combination of automated and manual processes will achieve between 80 and 85 per cent accuracy of inventory. Well-established data normalization processes will allow accuracy above 90 per cent to be achieved. A workable hybrid approach for inventory management will include the following components: ■
initial wall-to-wall inventory to obtain an accurate ‘as is’ status of the inventory;
■
carry forward of inventory based on changes and IMAC processes, marking the target inventory;
■
ongoing, technology-supported controlling of inventory to maintain ‘as is’ status;
■
frequent wall-to-wall inventories to reconcile the ‘as is’ with the target inventory;
■
analysis of differences and identification of actions for improvements.
The frequency of tool-based inventories and reconciliation is chosen in a way that allows sufficient accuracy of inventory data. The frequency is determined by the number of changes in a period of time. Due to the amount of data to be reconciled, the frequency will be shorter for larger inventories. In order to keep the inventory up to date as far as possible between inventory counts (manual or automated), change management is of equal importance, as it will keep track of IMACs which have a direct impact on the inventory.
LAYERS OF INFORMATION Effective ITAM requires a combination of contractual, physical and financial data in order to serve corporate requirements and processes, as shown in Figure 7.2. Contractual data refers to information related to the use of equipment based on lease contracts and licence agreements. Financial data refers to the financial aspects of equipment in use such as cost and revenue. Physical data refers to information related to a specific piece of equipment, e.g. asset tags and demographic data. For the purposes of ITAM, physical data provides the key database references and permits reference to contractual and financial data. All three parts link together ‘hand in glove’ in order to provide the required information for the various applications of ITAM, e.g. service management, billing, re-charge and calculation of depreciation. Information is usually available from a number of different sources which need to be linked into an asset repository. This can be done by identifying one lead system, i.e. one centralized repository, which holds the entire set of information.
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IT Asset Management
Due to the complexity and the potentially highly specialized information requirements a single repository may, however, not be feasible. Working with various repositories such as ITAM, property accounting and contract management requires clearly defined processes and identification of lead systems for the different parts of ITAM information. In particular updating the repositories needs detailed definition in order to avoid missing or conflicting updates. Fig. 7.2
Layers of information
Contractual
Physical
legal licence compliance contract maintenance supplier management negotiations request for proposal (RFP)
inventory version software distribution licence use asset usage planned status changes
Financial procurement depreciation investment cost budget cost control charge back
Asset-related information is available from the asset itself (physical) and from documentation (contractual or financial). In order to keep the inventory accurate at any given point in time, links between these data sets need to be established which reflect the requirements of the users of the ITAM system. In particular, contractual and financial data will refer to physical data for unique identification, but rely on this data being linked to other information, stored within a repository database or elsewhere. The physical data provide key criteria to identify additional information, possibly across corporate databases and applications. Repositories are loaded initially and also updated with data from various sources, which may be structured as: Process
Wall-to-wall inventory Change management IMAC Maintenance and repair
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Technology
Technology
Inventory scanning Remote surveillance Remote management
A subset of the information required can be retrieved utilizing technologies from the equipment itself. Information may be retrievable remotely through properties of the equipment stored within the device, e.g. BIOS, ROMs and EPROMs. The tendency to move towards ‘IP enabled’ devices will further increase these capabilities within IT networks.
ASSET TAGS Information may also be stored in asset tags and labels, which are placed on the equipment and may be retrieved through technologies like barcode or chip scanners connected to mobile technologies such as notebooks or palm tops. Although these scanning capabilities require a presence ‘on-site’, mobile technologies provide invaluable benefits, e.g. to maintenance and repair, because the data associated with changes may be directly stored in the engineer’s device. Later replicated into a repository, the data set will be updated without large amounts of data having to be entered manually and hence avoiding delays and mistakes. Labelling of equipment also provides information about equipment which is not ‘online’, e.g. shut-down, faulty or spare equipment. Scanning labels streamlines physical inventories and reduces the level human failure which requires manual reconciliation. Labels are also often used to identify the equipment for service requests. Helpdesks request the identification not only to have the related asset data available but also to verify the entitlement of the requester. Although this identification can be achieved by using the serial number, it is often more convenient for users to have a separate label placed within easy access, e.g. on the front of the equipment or the side of a screen. Serial numbers are often to be found at the rear of equipment, which will require ‘diving’ under desks or even removing equipment from its compartment. Labels and asset tags provide a unique identifier for assets within the repository. Linked to the serial number, the asset tag is related to a single piece of equipment and to the physical, contractual and financial data associated with it. In order to make sure that these labels are not removed and placed on, say, a replacement, they are made out of material which will be destroyed when removed. For purposes of electronic scanning an additional barcode may be provided. Also, labels may be expected in the very near future to contain a small, ultra-thin chip which can be scanned by suitable devices.
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IT Asset Management
Processes to produce asset tags will usually vary with related organizational processes such as procurement, purchasing and roll-out. Although it is not necessarily vital to centralize the production of labels, the process in place has to ensure their uniqueness. Furthermore, the process needs to foresee steps and controls which will ensure that all equipment is properly labelled according to the ITAM policies in place. Information about the equipment itself can also be stored in an application on a PC, which may also provide basic information how to get help. This ‘e-tagging’ is obviously only applicable to devices with a human interface, e.g. a PC, notebook or palm top. This use is also limited to equipment that is running as the application will not be available once the device is shut down. The screenshots in Figures 7.3 and 7.4 show basic asset information and a service process help taken from the application ‘eTag’. The General information tab shows data stored on the desktop computer which may be used by end-users and maintenance engineers for identification purposes. The Help information displays a brief explanation of how to obtain help and outlines the information required by the helpdesk. Fig. 7.3
eTag General information
The sample screen shots also display the contact details of the helpdesk and offer optional requests via pre-populated e-mails to the helpdesk. A Site information tab, not shown in the screenshot, is used to display further demographic data on organizational departments and geographic locations.
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Technology
Fig. 7.4
eTag Help information
Stored in a central area, e.g. a file server, data from electronic tagging applications can also used for automated inventory scans. The information from electronic tagging may also be extended to peripherals connected to the desktop computer.
TOOL REQUIREMENTS The different layers of information, its origin and maintenance have a direct impact on tools for ITAM. The two management approaches outlined above also determine the functional requirements for a toolset to support ITAM: ■
automated gathering of data from the inventory (pull);
■
managing changes to the inventory through processes and procedures (push).
A combination of both approaches, which incorporates the specific strengths and weaknesses of each, is likely to deliver accuracy and efficiency with acceptable update frequencies. The automatic gathering of data is usually achieved by utilizing tools which make use of the accessibility of devices within a network. Network and system management (NSM) technology is used to scan a network for devices. This scanning includes:
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IT Asset Management
■
triggering devices to respond to broadcasts send by an NSM system;
■
receiving and interpreting messages from devices;
■
interpreting logon information from servers;
■
searching PC hard disks for applications;
■
searching PC configuration files, including the Windows registry;
■
reading information stored permanently in devices, e.g. BIOS.
Toolsets with scanning capabilities therefore need to comprise a central management component and a decentralized agent which is installed in devices and controlled remotely through the central management. The centralized component stores the received data, reconciles it with existing data and enables reconciliation with external repositories. A policy for data reconciliation which describes the key determinants of devices is vital to maintain an accurate repository. The distributed agents, generally small applications running in the background, gather and send data as per their configurations. The process of data gathering is mainly done during system start-up, but certain tasks will also be carried out during operation. These tasks may include the sending of messages describing certain conditions which have occurred, e.g. failures or particular events. Running on a PC, agents may also capture errors and events from connected peripherals such as printers. Although almost every possible error condition may be ‘trapped’ by a software agent, the configuration of NSM software and inventory scanning must be driven by the organizational and operational requirements. Only data which needs to be fed into the ITAM system – or is otherwise needed – should be gathered, and hence the datastreams contributing to overhead can be restricted. The data from automated inventory scans has to be completed and complemented with data which cannot be gathered automatically. Consequently, a management component within the toolset is required, which allows data to be manually changed and which interfaces with other corporate systems, e.g. those used for IMAC management and purchasing. Figure 7.5 provides an overview of an inventory data flow combining push and pull methods. Information which is retrieved through manual and automated inventory counts is reconciled into a repository or inventory database. Additional information coming from corporate processes such as change management and IMAC is also entered into the database. Access to ITAM data is provided to service management entities such as change management, IMAC and service centres, which also allow data to be maintained, where this is foreseen in service management processes. A sample data table containing the information required for outsourced IT operations and managed services is provided in the appendix to this book. The
114
Technology
required data set is expected to vary depending on the size of an organization, its business and whether services will be provided internally or externally. The number and level of detail of configurations will also have impact on the design of the data table. Fig. 7.5
Push and pull management
Change management
Automated inventory
Physical and contractual data Physical data Data reconciliation
Manual inventory
Inventory
Service Service management management database
Physical and contractual data Physical, contractual and financial data
IMAC
SOLUTIONS The ITAM market is dominated by tool strategies which are internally managed and which, despite significant investments, often have not met expectations. Internal ITAM programmes are promoted based on cost benefits to be achieved, which are frequently not achieved. A common reason for perceived failure in these areas is the concentration on technology rather than on processes. Successful strategies, on the other hand, are based on processes which accurately collect and maintain data. It is the focus on processes which, through the detailed definition of requirements, provides the context for the implementation of technology. Following process development, the integration of processes, probably on a corporate level, needs to be pursued to provide the basis for technical integration. ITAM policies and standards need to be mapped out against organizational roles and responsibilities in order to ensure corporate understanding of and adherence to those processes which will lead to the materialization of benefits.
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IT Asset Management
The successful implementation of the correct tools is built on clear terminology and definitions for ITAM which also reflect configuration and financial needs. The tools involved in ITAM may use similar or overlapping data sources, such as inventory, network and system management. In order to provide maximum value, tools working independently need to be integrated into a coherent ITAM system. Due to the complexity of ITAM, it is possible that multiple data sources may be necessary to cover all the requirements, rather than one single database or repository holding the entire information set. Redundancies have to be managed through processes, roles and responsibilities. The tools in place to enable, support and/or automate the processes should have been designed and delivered as a prerequisite within the ITAM programme. The decision on which tools to employ should be based on a detailed definition of the requirements of all the involved entities, so that a ‘pick and mix’ toolkit and services matrix may be provided, which may be used to commission customer-related and internal services. Typical tools supporting an ITAM solution are as follows: 1. Inventory tracking
collecting physical data on equipment reachable within an organization network.
2. ITAM repository
consolidating physical, contractual and financial data.
3. Usage tracking
tracking usage of software and hardware for licensing and re-charge purposes.
4. Change management
tracking IMACs and changes.
5. CRM
offering management support for ITAM components, such as inventory, configuration and contract management.
6. Software distribution
the ITAM toolset is frequently linked to – or part of – a remote management suite which allows the configuration of IT equipment and problems to be resolved, e.g. via a centralized helpdesk or secondlevel support unit.
Because the concentration of an ITAM programme on technology is unlikely to deliver the expected and possible benefits, technology in fact plays a minor role during the course of an ITAM programme implementation. An ITAM programme therefore has to be developed, adapted and implemented as a solution to a problem and not considered ‘strategic’ in its own right. The major part of the return on investment of an ITAM programme stems from the implementation of effective and improved processes. The review and optimization of processes, including the interfaces to other corporate processes, enable significant
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Technology
cost reductions. Based on optimized processes suitable toolsets can be investigated and implemented. An observed dissatisfaction with internal ITAM programmes offers opportunities for external providers of ITAM services. Effective ITAM in this context helps to win business, both for internal and external service providers. The implementation of ITAM has been increasing during the past couple of years and is expected to grow significantly over the next two to four years, regardless of organization size. The demand from large-scale organizations will further drive tool and system functionality, while smaller enterprises will more likely look for ‘off-the-shelf’ products with bundled functionality. To meet future customer needs, both internally and within the context of IT outsourcing, service providers and tool vendors need to move to integrated solutions, offering high value and supporting service excellence. Components and sub-solutions of an overall ITAM solution are often already in place. These existing solutions need to interface between each other in order to integrate into a corporate solution to allow overall advantage to be taken of ITAM services. An integrated ITAM toolset, available organization-wide, and supporting efficient ITAM processes, i.e. reflecting exactly the organization’s requirements, may be expected to pay back its investment within the first year after implementation. Table 7.2 shows a basic checklist, which can be applied to customize the maintenance of inventory tracking systems. Table 7.2
Checklist for tracking system customization
Check point
Comment
Gather requirements for inventory tracking
Identify and involve stakeholders Business requirements based on: – IT asset strategy – inventory plan – configuration plan – SLA and performance requirements
Gather requirements for reporting
Identification of key performance indicators
Document requirements in functional specification
Review all requirements and merge into single document, outlining functionality, scope and potential for future development
Evaluation and selection of tools
Comparison of tools and decision making on best-fit, customization effort, return on investment and strategic considerations
Document technical specification
Describe how functional specification will be represented in tool
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IT Asset Management
Table 7.2
continued
Check point
Comment
Customization
Build and implement required functionality, where applicable
Testing
Usability and integrational test procedures
Acceptance
Agreement on compliance of technical solution with requirements
Data load
Load data required into system, e.g. demographic or user data
Pilot
Proof of concept in limited organizational area
Change management
Analysis of pilot, identification of necessary changes, implementation plan
Deployment Change management
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Ongoing quality control and improvement management
8 Implementation plan
■
Due diligence
■
Implementation plan
121 123
119
Implementation plan
DUE DILIGENCE The process of due diligence aims to collect and verify data of the situation in place, in order to obtain as complete and accurate a picture of the inventory to be managed as possible. Due diligence encompasses the collection of information relevant to ITAM services. A physical wall-to-wall inventory is part of the due diligence and is focused on the installed base or operated inventory, comprising both hardware and software. Although documentation and schedules may be available, their accuracy and consistency need to be validated. A wall-to-wall inventory of all equipment, planned and managed appropriately, offers vital information for service management at an ultimate level of quality and a reliable baseline for operations. Due diligence will in particular cover the areas of: ■
installed base, i.e. the inventory of IT equipment;
■
service and support arrangements;
■
maintenance and repair arrangements;
■
delivery contracts, including purchase, renting and leasing.
Information regarding arrangements and contracts in place are usually provided through the administrative systems already set up, be they electronic or manual. In some cases, and as means for verification and validation, contracts and agreements may be reviewed physically. Physical wall-to-wall inventory counts are carried out based on the data model designed for this purpose and including the data which has been deemed necessary within the IT asset strategy. The information collected is used initially to populate the asset repository. Prior to starting any activities to collect data – and in particular prior to embarking on any costly physical inventory counts – processes and technology to maintain the collected data up to date need to be considered. When and where required, staff physically present on site are also used to carry out some preliminary tasks which may include: ■
placement of asset tags;
■
virus checks;
■
condition checks.
Table 8.1 outlines service deliverables being part of a physical wall-to-wall inventory.
121
IT Asset Management
Service deliverables for wall-to-wall inventory
Run general planning session with customer parties involved prior to performing the initial wall-to-wall inventory in order to develop the inventory plan
•
Establish the asset data standard (i.e. load the asset information obtained during the initial wall-to-wall inventory)
•
Produce a statement of work from planning session, which defines: – scope, e.g. devices, locations, data to be collected – acceptance criteria, e.g. completion, approval, audit, accuracy – responsibilities of parties involved
•
Coordinate and perform the asset inventory to validate and/or establish the asset data standard
•
Conduct a physical inventory, collecting e.g. – manufacturer – product name – serial number – asset tag number – machine type (part number) – model number – asset description – demographic data – configurations, including versions and releases
•
Collect additional data, load software or perform other tasks during the course of the inventory
122
Extended
Level Mandatory
Service deliverable
Standard
Table 8.1
•
Notify if viruses are detected during the inventory process
•
Notify of any obstacle that prevents initial inventory of an asset
•
Tag inventoried equipment
•
Provide and install the software agent(s) to enable electronic scanning of assets to capture future asset-tracking information
•
Reconcile the collected asset data, including the identification and correction of the following types of discrepancies: – missing and/or duplicate serial numbers – missing, duplicate and/or incorrect length of asset tag numbers – missing and/or duplicate demographic information
•
Obtain acceptance of data collected and inventory sign off
•
Implement the process and schedule of future asset information collection
•
Implementation plan
IMPLEMENTATION PLAN Preliminary service deliverables A number of preliminary service deliverables have to be carried out during an ITAM programme implementation. These service deliverables provide the basis on which to build the required ITAM services. Based on an IT asset strategy and configuration plan, service deliverables as listed in Table 8.2 form the basic milestones in ITAM programme implementation.
Preliminary service deliverables for ITAM implementation
Gather customer requirements
•
Define asset strategy: – asset hierarchy – level of detail to be maintained – tagging policy – frequency of periodic inventories
•
Provide list of mandatory asset information
•
Identify key performance indicators for reporting
•
Define configuration strategy: – configuration hierarchy – level of detail to be maintained – naming convention, releases and versions – define standard configurations – frequency of periodic inventories – handling of non-standard configurations
•
Gather business requirements for interfaces
•
Build organization/business specific configuration model
•
Build service catalogue
•
Adopt end-to-end ITAM processes
•
Clarify asset data standard ownership
•
Identify asset tagging policy
•
Establish the asset data standard (i.e. load the asset information obtained during the initial wall-to-wall inventory)
•
Carry out consistency checks
•
Extended
Level Mandatory
Service deliverable
Standard
Table 8.2
123
IT Asset Management
continued
Link asset data to user data were applicable
•
Identify and evaluate changes to standard service offering
•
Solution design, i.e. identify suitable level of service
•
Provide services and responsibilities template
•
Identify ITAM tool: – gather business requirements based on asset strategy – define technical solution – investigate tool options – customization plan – deployment plan
•
Identify necessary interfaces between systems
•
Provide funding for development
•
Manage implementation of interfaces
•
Manage implementation of tools
•
Design manual software distribution processes for non-standard applications
•
Set up spares policy
•
Set up schedules for preventative maintenance
•
Charge-back methodology and administration Carry out wall-to-wall inventory
Extended
Level Mandatory
Service deliverable
Standard
Table 8.2
• •
Implementation checklist The implementation of an ITAM programme follows the key success factors outlined above and includes:
124
■
IT asset strategy;
■
senior management commitment;
■
stakeholder management;
■
assignment of appropriate resources;
■
focus on ITAM as a solution to a problem.
Implementation plan
Table 8.3 provides an overall checklist for the basic steps during the implementation of ITAM programmes. The steps and check points outlined are to be understood as a baseline and need customization to the organization’s individual requirements with respect to its size, business and type of operations. Table 8.3
ITAM programme implementation checklist
ID
Check point
Sub-category
Comments
1
Project set-up
1.1
Sponsorship
Ensure senior management commitment and support
1.2
Advisory board
Set up board to ensure input and commitment from stakeholders
1.3
Project leadership
1.4
Resource identification
Put together resource plan, including finance and external staff
1.5
Headcount
Put together human resource plan
1.6
Project organization
Set up appropriate organizational structure
2
Temporary workarounds Attempt to respond to immediate business requirements and mitigate high risks, utilizing a workaround or manual process, prior to having ITAM in place
2.1
Identify available workarounds
2.2
Process description
2.3
Integration of stakeholder requirements
2.4
Technical implementation
2.5
Process implementation
3
Gather and attempt to integrate urgent requirements from stakeholders
Project charter Outline of project, deliverables, roles and responsibilities
3.1
Business drivers
3.2
Stakeholders
3.3
ITAM programme description
125
IT Asset Management
Table 8.3 ID
Sub-category
Comments
3.4
Milestone plan
High-level plan, outlining key deliverables and timelines
3.5
Objectives
3.6
Corporate requirements for ITAM
4
Check point
IT asset strategy
4.1
Management approach
Describe push, pull or other approaches to managing IT assets
4.2
Data set
Define data to be maintained and ownership of data
4.3
Tagging policy
Describe requirements for the production and use of IT asset tags
5
126
continued
Corporate process Process design of ITAM processes and integration with existing processes
5.1
Requirements gathering
Requirements from involved entities and stakeholders for ITAM processes and integration
5.2
Evaluation of existing processes
5.3
Statement of work
Outline of deliverables
5.4
Solution design
Design of business solution based on standard services
5.5
Communication plan
What will be communicated and how, including document types, formats, recipients, timelines and frequency (where applicable)
5.6
Quality plan
Implementation of frequent reviews of objectives with outcomes, analysis of deviations and actions planned
Implementation plan
Table 8.3 ID
continued
Check point
Sub-category
Comments
5.7
Project plan
Finalize detailed plan, describing detailed deliverables, assigned resources, timelines and dependencies
5.8
Risk management
Description of identified risks, likelihood of occurrence, anticipated impact and potential mitigation
5.9
Documentation of existing ITAM processes
Description and analysis of processes in place
5.10
Process design for ITAM components
Including re-design and integration of existing processes were deemed applicable
5.10.1
– Inventory management
Based on requirements and management approaches
5.10.2
– Change management
Based on requirements and management approaches
5.10.3
– Order processing
Based on requirements and management approaches including: – master product catalogue – service catalogue – product standards – vendor management – acceptance
5.10.4
– Configuration management
Based on requirements and management approaches, including: – release management – version control – release control – change management
5.10.5
– Contract management
Based on requirements and management approaches, including: – warranty management – maintenance contracts – lease/rent contracts
127
IT Asset Management
Table 8.3 ID
Sub-category
Comments
5.10.6
– Financial asset management
Tailored to the needs and business of the organization
5.11
Interface definition
Define interfaces to other corporate or existing processes, including: – departments – service providers – customers – virtual integration – shared inventories
5.12
Process consolidation
Merge ITAM component processes into overall corporate ITAM process; streamline and optimize customized ITAM process and interfaces
5.13
Reporting requirements
Key indicators, ratios and report contents
5.14
Re-charge/billing
5.15
Roll-out plan
Define deliverables, locations and timelines for corporate/global roll-out of processes, including risks and dependencies
6.1
Requirement specification
Merge business requirement into specification document to enable communication with technical departments
6.2
Tool evaluation
Research market based on requirements and budget
6.3
Tool decision
6.4
Logical view
Overview of system and interactions
6.5
Functional specification
Description of how the business requirements will be reflected within the application
6
128
continued
Check point
Technology
Implementation plan
Table 8.3 ID
continued Sub-category
Comments
6.6
Specification change management
Description of required changes and customization
6.7
Physical view
System architecture
6.8
Solution approval
6.9
Purchase and procurement
6.10
Test bed installation
6.11
Customization
6.12
Documentation
6.13
Data load
6.14
Roll-out plan
6.15
Training plan
6.16
Application acceptance
7
Check point
Due diligence Collect service-relevant information and carry out wall-to-wall inventory
7.1
Methodology
Identify means for data gathering, storage, reconciliation, analysis and validation
7.2
Inventory plan
Put together plan, including resources and timelines
7.3
Technology
If ITAM tool not available, identify technology to support data collection, including: – database – data entry – management capabilities
7.4
Contracts and agreements Collect service relevant information on existing contracts and agreements including SLAs and further obligations
7.5
Wall-to-wall inventory
Physical counting and identification of inventory in place, utilizing data plans, concepts and technologies
129
IT Asset Management
Table 8.3 ID
Check point
Sub-category
7.6
Data collection
7.7
Data entry
7.8
Tagging
7.9
Data analysis
8
Comments
Pilot project Running of test operation in part of organization to test processes and implementation, proof of concept under ‘real world’ conditions
8.1
Technical implementation
8.2
Process implementation
8.3
Pilot operation
8.4
Solution review
8.5
Change management
Implement changes where necessary
8.6
Review roll-out plans
Customize roll-out plans for processes and tools
8.7
Review training plan
9
130
continued
Corporate deployment Rollout of solution organization-wide, based on reviewed roll-out plans
9.1
Tool roll-out
9.2
Process roll-out
9.2.1
– Inventory management
9.2.2
– Configuration management
9.2.3
– Change management
9.2.4
– Order processing
9.2.5
– Contract management
9.3
Training
10
Productization Applicable when organization plans to market ITAM services only
10.1
Service definitions and description
Based on ITAM service description, design description for marketing purposes
10.2
Design cost model
Define standard costing and pricing model for ITAM services
10.3
Marketing plan
Identify and plan appropriate actions
Implementation plan
Table 8.3
continued
ID
Check point
11
Project closure
Sub-category
11.1
Project review
11.2
Compliance check
11.3
Lessons learnt
Comments
The checklist in Table 8.3 focuses on the following key areas: ■
project set-up;
■
temporary workarounds;
■
project charter;
■
IT asset strategy;
■
corporate process;
■
technology;
■
due diligence;
■
pilot project;
■
corporate deployment;
■
productization;
■
project closure.
The order of the various steps during the course of implementing an ITAM programme may vary depending on a number of factors. Some steps are also likely to be carried out in parallel rather than as a sequence. The project procedure also attempts to make use of existing processes and procedures which may help to solve burning issues in the context of ITAM and hence may provide a temporary workaround. The interim solution will help to keep the ITAM programme and its implementation focused and reduce the need for compromises related to time pressure to an absolute minimum.
Compliance checklist Table 8.4 provides a checklist to verify the implementation of an ITAM programme by auditing and reviewing the basic deliverables. The checklist is divided into the following major sections: ■
overall assessment;
■
process deployment;
■
process and management control; 131
IT Asset Management
■
process accountability;
■
process documentation;
■
process compliance;
■
process application support.
This high-level checklist allows the overall performance and return on investment, expected vs. delivered, of an ITAM programme implementation to be validated. Table 8.4
ITAM programme compliance checklist
Check points
Details
Overall assessment
Requirements met for: – internal customers – external customers – contractual obligations – risk management – change management process ITAM processes, procedures, tools and implementation documentation: – complete and sufficient – up to date – accessible to all involved entities and users – review process established Effective deployment of ITAM processes, including user: – understanding processes and their purposes – roles and responsibilities defined – training – objectives defined Effective management and controlling of ITAM processes, including: – measurements – process improvement procedure Accountability for ITAM and its components: – defined – understood in organization Support of ITAM through tools and technologies: – fully deployed – meeting expectations – change management processes – ITAM strategy defined and implemented
Process deployment
Roles and responsibilities defined Senior and line management commitment User training
132
Implementation plan
Table 8.4
continued
Check points
Details
Process management and control
ITAM policies and procedures: – defined – documented – available and accessible Local/departmental break down of ITAM policies and procedures: – assessed with respect of compliance to corporate ITAM processes – consistency in supporting the ITAM process objectives – documented – available and accessible Process documentation in compliance with quality management ITAM process measurements: – defined, agreed and implemented – trend analysis – performance reporting Management system supporting ITAM, including: – control meetings and reviews for aspects of process management – reporting to senior management – measurements and documentation Quality circles for improvements: – applied – root-cause analysis to process measurements – performance analysed – actions for improvement defined Process improvement plan including: – customer input/requirements – user input and requirements – control measurements and indicators – audit recommendations
Process accountability ITAM process ownership defined ITAM roles and responsibilities defined Measurements according to SLAs (customer and provider): – defined – implemented – reported frequently Roles interlock table showing dependencies and cooperation between roles and responsibilities across the service organization: – completed – communicated – deployed
133
IT Asset Management
Table 8.4
continued
Check points
Details
Process documentation ITAM process documentation: – adhering to organizational policies and standards – available to all affected parties – all operational aspects covered – change and review procedure Documentation for standard reporting: – definition of performance indicators and ratios – calculation methods and arithmetic – production schedules Documentation of process improvement processes and procedures Process compliance
Project management: – timelines – budgets – open issues after project closure Deliverables of ITAM processes meeting contractual obligations: – internal and external customers – vendors – service providers – legal Scope creep management: – measures implemented – contract management implemented Performance reporting: – defined – produced – communicated – reviewed Risk management: – identify potential risks – mitigation of risks – compliance of mitigation plans with ITAM processes
Process application support
Tools and technology supporting ITAM tools: – identified – purchased – customized – tested – documented – deployed – accepted Customizations and modifications documented, reviewed and accepted Change management processes for tools and technologies
134
Appendix
ITAM data table Table A1 shows a sample data table for ITAM. The information is structured into the following categories: 1. General 2. Configuration 3. Contract 4. Service 5. Hardware 6. Software 7. Operating systems 8. Network 9. Host connectivity. Although the table is primarily related to a PC environment, the model can also be applied to other IT assets such as active LAN components, network printers and servers by restricting entries to the fields applicable to this equipment. The table contains physical, contractual and financial data. Configurations are referred to which are not maintained within the table. Only information which adds to or alters standard configurations is stored with the individual assets. The far right column indicates where information is deemed to be retrievable via automated and electronic means. Entries in this column are to be understood as indications only, as the ability to scan this information is dependent on the inventory itself and the tools and technologies used. The scope of the table covers typical outsourcing environments, where a service provider offers ITAM services to a customer as part of a service portfolio and contract. It is acknowledged that this type of model usually exceeds the requirements for an internal ITAM operation. The organization’s individual requirements for ITAM, as reflected in the IT asset strategy, should be applied to ‘right size’ the set of information. Table A1 offers a starting point for the development of data tables which are tailored to the specific needs of an organization.
135
Appendix
136
ITAM data table
ID
Category
Type
Field
1.1.1
General
Account
Account ID
1.1.2
Account
Account name
1.1.3
Account
Cost centre
1.1.4
Account
Financial code
1.1.5
Account
Location code
1.1.6
Account
Location name
1.1.7
Account
Organizational unit address ID
1.1.8
Account
Regional telex address
1.2.1
Contact
Contact ID
1.2.2
Contact
Contact first name
1.2.3
Contact
Contact last name
1.2.4
Contact
Employee ID
1.2.5
Contact
Employee first name
1.2.6
Contact
Employee last name
1.2.7
Contact
Personal address ID
1.2.8
Contact
Personal address
1.2.9
Contact
Personal city
1.2.10
Contact
Personal country
1.2.11
Contact
Personal state
1.2.12
Contact
Personal zip
1.3.1
Financial
Accounting method
1.3.2
Financial
Accounting reference
1.3.3
Financial
Action value
1.3.4
Financial
Action value currency
1.3.5
Financial
Asset currency
1.3.6
Financial
Asset value
1.3.7
Financial
Residual value
1.3.8
Financial
Cost list ID
1.3.9
Financial
Original cost
1.3.10
Financial
Replacement value
Automation
Table A1
Appendix
ID
continued
Category
Automation
Table A1
Type
Field
1.3.11
Financial
Responsibility date
1.3.12
Financial
Tax code
1.3.13
Financial
Value basis
1.4.1
Identification
Asset tag
✓
1.4.2
Identification
Asset name
✓
1.4.3
Identification
Asset model
✓
1.4.4
Identification
Asset description
1.4.5
Identification
Asset category
1.4.6
Identification
Asset type
1.4.7
Identification
Asset version number
1.4.8
Identification
Asset architecture
1.4.9
Identification
Product name
1.4.10
Identification
Product number
1.4.11
Identification
Registered date
1.4.12
Identification
Asset number
1.4.13
Identification
Asset system ID
1.4.14
Identification
Equipment ID
1.4.15
Identification
Serial number
1.5.1
Installation
Acceptance date
1.5.2
Installation
Authorization date
1.5.3
Installation
Authorization owner
1.5.4
Installation
Date
1.5.5
Installation
Meter count
1.5.6
Installation
Order type
1.5.7
Installation
Procedure
1.5.8
Installation
Roll-out schedule
1.6.1
Inventory scanning
Configuration file
1.6.2
Inventory scanning
Manual data entry
1.6.3
Inventory scanning
Next scheduled scan
1.6.4
Inventory scanning
Object ID
✓
1.6.5
Inventory scanning
Object label
✓
1.6.6
Inventory scanning
Reference system
✓
✓ ✓
✓ ✓
137
Appendix
Type
Field
1.6.7
Inventory scanning
Scan time
✓
1.6.8
Inventory scanning
Time stamp
✓
1.7.1
Location
Building address
1.7.2
Location
Building description
1.7.3
Location
Country
1.7.4
Location
Country code
1.7.5
Location
Latitude
1.7.6
Location
Location code
1.7.7
Location
Location ID
1.7.8
Location
Longitude
1.7.9
Location
Outlet ID
1.7.10
Location
Room description
1.7.11
Location
Room floor
1.7.12
Location
Room number
1.7.13
Location
Site acceptance date
1.7.14
Location
Site name
1.7.15
Location
Site status
1.8.1
IMAC
Acceptance date
1.8.2
IMAC
Acceptance remark
1.8.3
IMAC
Article ID
1.8.4
IMAC
Product inventory ID
1.8.5
IMAC
Purchase contract
1.8.6
IMAC
Purchase date
1.8.7
IMAC
Purchase ID
1.8.8
IMAC
Quantity
1.8.9
IMAC
Remarks
1.8.10
IMAC
Request ID
1.8.11
IMAC
Ship date
1.8.12
IMAC
Source/supplier
1.9.1
Change management
Request ID
1.9.2
Change management
Description
1.9.3
Change management
Installation date
ID
138
continued Automation
Table A1
Category
Appendix
ID
continued
Type
Field
1.9.4
Change management
Acceptance date
1.9.5
Change management
History
1.10.1
Administration
Customer cost centre
1.10.2
Administration
Customer region
1.10.3
Administration
Data status
1.10.4
Administration
Department code
1.10.5
Administration
Internal costs centre
1.10.6
Administration
Internal region
1.11.1
Ownership
Owner
1.11.2
Ownership
Owner account ID
1.11.3
Ownership
Owner asset ID
1.12.1
Other
Comments
Hardware configuration
Build
✓
2.1.2
Hardware configuration
Name
✓
2.1.3
Hardware configuration
Version
✓
2.1.4
Hardware configuration
Release
✓
2.2.1
Relation
Child asset ID 1
2.2.2
Relation
Child asset ID 2
2.2.3
Relation
Child asset ID 3
2.2.4
Relation
Child asset ID 4
2.2.5
Relation
Child asset ID 5
2.2.6
Relation
Child asset ID 6
2.2.7
Relation
Child asset ID 7
2.2.8
Relation
Child asset ID 8
2.2.9
Relation
Child asset ID 9
2.2.10
Relation
Child asset ID 10
2.2.11
Relation
Other relationship
2.2.12
Relation
Parent asset ID
2.3.1
Software configuration
Build
✓
2.3.2
Software configuration
Name
✓
2.3.3
Software configuration
Version
✓
2.3.4
Software configuration
Release
✓
2.1.1
Category
Automation
Table A1
Configuration
139
Appendix
ID
Category
3.1.1
Contract information General
3.1.2
General
End date
3.1.3
General
Name
3.1.4
General
Start date
3.2.1
Infrastructure
Contract ID
3.3.1
Other
Contract ID
3.4.1
SLA
Restore time
3.4.2
SLA
Intervention time
3.4.3
SLA
Max. downtime
3.4.4
SLA
Hardware refresh
3.4.5
SLA
SLA extended 1
3.4.6
SLA
SLA extended 2
3.4.7
SLA
SLA extended 3
3.4.8
SLA
SLA extended 4
3.4.9
SLA
SLA extended 5
3.4.10
SLA
SLA extended 6
General
End date
4.1.2
General
Name
4.1.3
General
Service provider
4.1.4
General
Service provider contract ID
4.1.5
General
Start date
4.2.1
History
Related SR
4.3.1
Preventative maintenance Date
4.3.2
Preventative maintenance Type
4.3.3
Preventative maintenance Schedule next PM
4.4.1
Status
Condition
4.4.2
Status
Current status
4.4.3
Status
History
4.4.4
Status
Next status planned date
4.4.5
Status
Scheduled status
4.5.1
Warranty
Warranty expiry date
4.5.2
Warranty
Warranty start date
4.5.3
Warranty
Warranty type
4.1.1
140
continued
Service information
Type
Field
Contract ID
Automation
Table A1
Appendix
continued
ID
Category
Type
Field
Automation
Table A1
5.1.1
Hardware information BIOS
Type
✓
5.1.2
BIOS
Version
✓
5.1.3
BIOS
Date
✓
5.1.4
BIOS
Asset information
✓
5.1.5
BIOS
Change description
5.1.6
BIOS
Change time
5.1.7
BIOS
Change type
5.1.8
BIOS
Service tag
✓
5.2.1
Main board
Article ID
✓
5.2.2
Main board
Manufacturer
✓
5.2.3
Main board
Model
✓
5.2.4
Main board
Type
✓
5.3.1
Processor
Manufacturer
✓
5.3.2
Processor
Model
✓
5.3.3
Processor
Processor number
✓
5.3.4
Processor
Speed
✓
5.3.5
Processor
Co processor model
✓
5.3.6
Processor
Co processor type
✓
5.4.1
System memory
Description
✓
5.4.2
System memory
Memory
✓
5.4.3
System memory
Space (kb)
✓
5.4.4
System memory
Configuration
✓
5.5.1
Hard drive
Access speed
✓
5.5.2
Hard drive
Cylinders
✓
5.5.3
Hard drive
Heads
✓
5.5.4
Hard drive
Model
✓
5.5.5
Hard drive
Sectors
✓
5.5.6
Hard drive
Seek time
✓
5.5.7
Hard drive
Serial number
✓
5.5.8
Hard drive
Size (MB)
✓
5.5.9
Hard drive
Type
✓
5.6.1
Floppy drives
Article ID
✓
5.6.2
Floppy drives
Model
✓
✓
141
Appendix
Type
Field
5.6.3
Floppy drives
Type
✓
5.7.1
Logical drives
Logical drive I share name
✓
ID
Category
5.7.2
Logical drives
Logical drive I location
✓
5.7.3
Logical drives
Logical drive I mount directory
✓
Logical drive I space free (kb)
✓
Logical drive II share name
✓
5.7.4 5.7.5
Logical drives Logical drives
5.7.6
Logical drives
Logical drive II location
✓
5.7.7
Logical drives
Logical drive II mount directory
✓
Logical drive II space free (kb)
✓
Logical drive III share name
✓
5.7.8 5.7.9
Logical drives Logical drives
5.7.10
Logical drives
Logical drive III location
✓
5.7.11
Logical drives
Logical drive III mount directory
✓
Logical drive III space free (kb)
✓
5.7.12
142
continued Automation
Table A1
Logical drives
5.8.1
Other drives
CD ROM article ID
✓
5.8.2
Other drives
CD ROM model
✓
5.8.3
Other drives
CD ROM type
✓
5.8.4
Other drives
DVD article ID
✓
5.8.5
Other drives
DVD model
✓
5.8.6
Other drives
DVD type
✓
5.9.1
Ports
Port I name
✓
5.9.2
Ports
Port I type
✓
5.9.3
Ports
Port I base address
✓
5.9.4
Ports
Port II name
✓
5.9.5
Ports
Port II type
✓
5.9.6
Ports
Port II base address
✓
5.9.7
Ports
Port III name
✓
Appendix
continued
Type
Field
Automation
Table A1
5.9.8
Ports
Port III type
✓
5.9.9
Ports
Port III base address
✓
5.10.1
Monitor
Article ID
✓
5.10.2
Monitor
Manufacturer
✓
5.10.3
Monitor
Model
✓
5.10.4
Monitor
Monitor ID
✓
5.10.5
Monitor
Monitor size
✓
5.10.6
Monitor
Serial number
✓
5.10.7
Monitor
Type
✓
5.11.1
Keyboard
Language
✓
5.11.2
Keyboard
Manufacturer
5.11.3
Keyboard
Model
5.11.4
Keyboard
Serial number
5.11.5
Keyboard
Type
5.12.1
Mouse
Article ID
5.12.2
Mouse
Model
✓
5.12.3
Mouse
Type
✓
5.13.1
Printers
Printer I connection type
✓
5.13.2
Printers
Printer I manufacturer
✓
5.13.3
Printers
Printer I model
✓
5.13.4
Printers
Printer I type
✓
5.13.5
Printers
Printer II connection type
✓
5.13.6
Printers
Printer II manufacturer
✓
5.13.7
Printers
Printer II model
✓
5.13.8
Printers
Printer II type
✓
5.14.1
Other peripherals
Other peripheral I connection type
✓
Other peripheral I manufacturer
✓
ID
5.14.2
Category
Other peripherals
✓
5.14.3
Other peripherals
Other peripheral I model
✓
5.14.4
Other peripherals
Other peripheral I type
✓
5.14.5
Other peripherals
Other peripheral II connection type
✓ 143
Appendix
ID
5.14.6
144
continued
Category
Automation
Table A1
Type
Field
Other peripherals
Other peripheral II manufacturer
✓
5.14.7
Other peripherals
Other peripheral II model
✓
5.14.8
Other peripherals
Other peripheral II type
✓
5.15.1
Options
Installed option I name
5.15.2
Options
Installed option I type
5.15.3
Options
Installed option I model
5.15.4
Options
Installed option I settings
5.15.5
Options
Installed option I serial number
5.15.6
Options
Installed option I address
5.15.7
Options
Installed option I driver
5.15.8
Options
Installed option I article ID
5.15.9
Options
Installed option II name
5.15.10
Options
Installed option II type
5.15.11
Options
Installed option II model
5.15.12
Options
Installed option II settings
5.15.13
Options
Installed option II serial number
5.15.14
Options
Installed option II address
5.15.15
Options
Installed option II driver
5.15.16
Options
Installed option II article ID
5.15.17
Options
Installed option III name
5.15.18
Options
Installed option III type
5.15.19
Options
Installed option III model
5.15.20
Options
Installed option III settings
5.15.21
Options
Installed option III serial number
5.15.22
Options
Installed option III address
5.15.23
Options
Installed option III driver
5.15.24
Options
Installed option III article ID
5.15.25
Options
Installed option IV name
✓
✓
✓
✓
✓
✓
Appendix
continued
Type
Field
Automation
Table A1
5.15.26
Options
Installed option IV type
✓
5.15.27
Options
Installed option IV model
5.15.28
Options
Installed option IV settings
5.15.29
Options
Installed option IV serial number
5.15.30
Options
Installed option IV address
5.15.31
Options
Installed option IV driver
5.15.32
Options
Installed option IV article ID
5.15.33
Options
Installed option V name
5.15.34
Options
Installed option V type
5.15.35
Options
Installed option V model
5.15.36
Options
Installed option V settings
5.15.37
Options
Installed option V serial number
5.15.38
Options
Installed Option V address
5.15.39
Options
Installed Option V driver
5.15.40
Options
Installed Option V article ID
5.16.1
Device drivers
Keyboard
✓
5.16.2
Device drivers
Monitor
✓
5.16.3
Device drivers
Mouse
✓
5.16.4
Device drivers
CD ROM
✓
5.16.5
Device drivers
DVD
✓
5.16.6
Device drivers
Faxmodem card
✓
5.16.7
Device drivers
I/O card
✓
5.16.8
Device drivers
Network card
✓
5.16.9
Device drivers
Sound card
✓
5.16.10
Device drivers
Graphics card
✓
Options
Installed option I name
6.1.2
Options
Installed option I type
6.1.3
Options
Installed option I model
ID
6.1.1
Category
Software
✓
✓
✓
✓
145
Appendix
ID
Type
Field
6.1.4
Options
Installed option I settings
6.1.5
Options
Installed option I licence number
6.1.6
Options
Installed option I article ID
6.1.7
Options
Installed option II name
6.1.8
Options
Installed option II type
6.1.9
Options
Installed option II model
6.1.10
Options
Installed option II settings
6.1.11
Options
Installed option II licence number
6.1.12
Options
Installed option II article ID
6.1.13
Options
Installed option III name
6.1.14
Options
Installed option III type
6.1.15
Options
Installed option III model
6.1.16
Options
Installed option III settings
6.1.17
Options
Installed option III licence number
6.1.18
Options
Installed option III article ID
General
Booted OS name
✓
7.1.2
General
Booted OS version
✓
7.1.3
General
Boot manager
7.1.4
General
Build
✓
7.1.5
General
Installation date
✓
7.1.6
General
Language
✓
7.1.7
General
Service pack
✓
7.1.8
General
Type
✓
7.1.9
General
Version
✓
7.2.1
Windows
Organization
✓
7.2.2
Windows
User
✓
7.2.3
Windows
System root
✓
Connection
Hub
Connection
Outlet
7.1.1
8.1.1 8.1.2 146
continued
Category
Automation
Table A1
Operating system
Network
✓
✓
Appendix
ID
continued
Category
Automation
Table A1
Type
Field
8.1.3
Connection
To IP
8.1.4
Connection
To port
8.2.1
General
ID
8.2.2
General
VLAN
8.2.3
General
Segment name
8.3.1
IP
Default gateway
✓
8.3.2
IP
DNS
✓
8.3.3
IP
IP address
✓
8.3.4
IP
Multiple addresses
✓
8.3.5
IP
Segment name
8.3.6
IP
Subnet mask
✓
8.3.7
IP
WINS
✓
8.3.8
IP
DHCP
✓
8.4.1
IPX
Address
✓
8.4.2
IPX
Connection name
✓
8.4.3
IPX
Connection number
✓
8.4.4
IPX
Full name
✓
8.4.5
IPX
Internal address
✓
8.4.6
IPX
Logon name
✓
8.5.1
Network node
Node address
✓
8.5.2
Network node
Node name
✓
8.5.3
Network node
Protocol
✓
8.6.1
Novell
NDS context
✓
8.6.2
Novell
NDS tree name
✓
8.6.3
Novell
NWCMDEnabled
✓
8.6.4
Novell
NWEXtnet
✓
8.6.5
Novell
Preferred server
✓
8.6.6
Novell
Time source
✓
8.7.1
Windows
Domain
✓
8.7.2
Windows
Logon server
✓
8.8.1
Other protocol
Parameter 1
8.8.2
Other protocol
Parameter 2
✓
147
Appendix
ID
Type
Field
8.8.3
Other protocol
Parameter 3
8.8.4
Other protocol
Parameter 4
8.9.1
Server
Article ID
8.9.2
Server
Asset ID
8.9.3
Server
Model
8.9.4
Server
Name
8.9.5
Server
Serial number
8.10.1
WAN
Router
8.10.2
WAN
Firewall
8.10.3
WAN
Bandwidth
8.10.4
WAN
Provider
General
Emulation
9.1.2
General
SNA NAU
9.2.1
IBM
Address
9.2.2
IBM
Printer address
9.2.3
IBM
Session number
9.3.1
Other
Parameter 1
9.3.2
Other
Parameter 2
9.3.3
Other
Parameter 3
9.3.4
Other
Parameter 4
9.4.1
Unisys
Address
9.4.2
Unisys
DNS gateway
9.4.3
Unisys
Gateway
9.4.4
Unisys
Office code
9.4.5
Unisys
Printer address
9.4.6
Unisys
RID
9.4.7
Unisys
Session number
9.4.8
Unisys
SID
9.4.9
Unisys
TC
9.1.1
148
continued
Category
Host connectivity
Automation
Table A1
✓
✓
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152
