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IT Asset Management: It’S All About Process

IT Asset Management: It’S All About Process

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IT : It’s All About Process

1 IT Asset Management: What and Why This definition highlights three elements that IT Asset Management: An effective IT asset management (ITAM) are essential to realize the value of IT asset It’s All About Process program delivers significant benefits management: through IT cost management, increased 7 agility and reduced . Gartner clients who • A focus on financial, contractual and From the Gartner Files: physical data; Demonstrate the Relevance of successfully execute ITAM as a discipline Your ITAM Program by Using have typically achieved 30% cost savings in • The asset life cycle; and, Outcome-Oriented Metrics the first year, and at least 5% cost savings in each of the subsequent five years.1 ITAM • A process framework. 11 can also significantly reduce the compliance About Provance® associated with the recent increase in software audits.2 The Focus of IT Asset Management Information technology is mission critical. Few Gartner characterizes IT asset management today could function without the IT as “a framework and set of processes for – the hardware, software, network and strategically tracking and managing the other technologies – that support financial, physical, licensing and contractual operations. Not only are IT assets numerous, aspects of IT assets through their life cycle.”3 they’re expensive to acquire, configure and maintain. IT assets are frequently moved, rapidly depreciate and require constant update and replacement. The objective of IT asset management is to ensure that the large volume of constantly churning, costly assets so essential to an ’s success are effectively managed from beginning to end to achieve the highest possible return on investment.

1,2,3Gartner Inc., IT Asset Management Key Initiative Overview, G00214140, 22 July 2011 ITAM focuses on centralized management of financial (e.g., The IT Asset Life Cycle purchase price, cost events, supplier, etc.), contractual (e.g., terms Life cycle management practices are required to improve the and conditions, software entitlement, support agreements, leases, return on investment for IT assets, avoid internal and external audit warranties, etc.) and physical (e.g., location, ownership, assignment, consequences, and adopt future technology.5 Gartner identifies five etc.) data about IT assets in an organization. It is a completely different stages to an asset life cycle – requisition, , deployment, function than IT operational management, whose objective is to maintenance and retirement – and notes that while many companies optimize the performance and delivery of IT services; however, as mistakenly believe that IT life cycle management begins when they Gartner points out, receive an asset, the life cycle actually commences when an asset is requisitioned.6 Similarly, life cycle management continues after an “ITAM is often confused with the day-to-day management of the asset is no longer operationally active, extending to retirement and configuration of that asset, the of assets disposal activities. Management of the life cycle may further continue that are on the fixed asset register or maintaining an inventory for an indefinite period where historical asset records must be 4 of deployed assets.” retained to satisfy legal and fiscal requirements.

Configuration management is not IT asset management. Effective IT asset management requires complete coverage of the entire life cycle. Configuration information derived from IT operational management tools should never be used as a substitute for IT asset management As an asset progresses through the life cycle, its status changes, data sources like ERP (enterprise resource planning) and and changes will occur to financial, contractual and physical data systems. For example, asset assignment should not be based on the associated with the asset. Simply recording and tracking these discovered primary user of a computer, nor should an asset’s physical changes, however, does not constitute asset life cycle management. location assignment be determined by IP address. Asset tracking IS NOT life cycle management! Using configuration information in place of properly sourced data is not consistent with IT asset management best practice.

FIGURE 1 IT Asset Life Cycle7

Source: Gartner (May 2013)

4 Gartner Inc., MarketScope for the IT Asset Management Repository, G00247007, 2 April 2013 5,6 Gartner Inc., Adopt IT Asset Life Cycle Management as the Foundation for Your ITAM Programs, G00210671, 24 February 2011 7 Gartner Inc., Demonstrate the Relevance of Your ITAM Program by Using Outcome-Oriented Metrics, G00249346, 16 May 2013

IT Asset Management: It’s All About Process is published by Provance. Editorial content supplied by Provance is independent of Gartner analysis. All Gartner research is used with Gartner’s permission, and was originally published as part of Gartner’s syndicated research service available to all entitled Gartner clients. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. The use of Gartner research in this publication does not indicate Gartner’s endorsement of Provance’s products and/or strategies. Reproduction or distribution of this publication in any form without Gartner’s prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner’s may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see “Guiding Principles on Independence and Objectivity” on its website, http://www.gartner.com/technology/about/ombudsman/omb_guide2.jsp.

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IT Asset Management Process Best practice is capturing proven and in the correct sequence, that appropriate Life cycle is what you do, and asset tracking effective know-how and incorporating it relationships and interdependencies records what you’ve done. Process is how into IT asset management processes. are taken into account, and that data you do it. Process is the essence of IT asset is properly maintained and updated. management. Aside from the specialized ISO 19770 For example, a good tool will move standards and Microsoft® SAM Optimization child assets when the parent asset It’s all about process. Model for software management, no location is changed, or remove software generally recognized framework is available assignments automatically when a Gartner Research Director Patricia Adams for IT asset management comparable to IT hardware asset is retired. underscores the importance of process and frameworks such as ® tool support in managing assets through the ITIL (IT Infrastructure Library) or the Microsoft Best practice ensures process is optimized entire life cycle: Operations Framework (MoF). There are, based on successful individual and however, three good sources for best aggregated experience and is directly “ITAM depends on robust processes, practices: integrated into better IT asset management with tools to automate manual processes. tools. This data then enables to • Effective current practices. Whether or not effectively manage IT assets, vendors there is an existing IT asset management IT Asset Management Maturity and a software and hardware asset program, practices are already in place There are a number of different maturity portfolio from requisition through to perform the IT asset management models that establish an IT organization’s retirement, thus monitoring the asset’s function. In many cases, these practices level of proficiency and guide future performance throughout its life cycle.”8 have been refined over time to become improvement. These include Gartner’s more effective and better matched ITScore for Infrastructure and Operations A process is a sequence of activities to organizational needs. There is no (ITSIO), and the Microsoft Core Infrastructure and tasks for the management of assets substitute for firsthand learning. Taking Optimization (CIO) model. Regardless of the through a particular step in the life cycle. the time to identify, formally record and model, it is universally established that: Effective processes are designed to achieve institutionalize successful methods specific goals and objectives, take into already in place as part of the IT asset • Most organizations are at a low to modest account corporate polices, standards management program is the most level of IT asset management maturity. In and procedures, and are modeled on fundamental and important source of best its five-level model, Gartner estimates that established and proven best practices. about 35% of enterprises have reached practices. Proper processes provide control, the proactive (3rd) level of ITAM process consistency and accuracy. • Industry. Research firms like Gartner, maturity, while 5% to 8% have reached practitioner organizations like the the service-aligned (4th) level, and less Well defined processes that are structured, International Association of IT Asset than 3% have reached the business enforced and automated in a supporting Managers (IAITAM), publications like partner (5th) level.9 tool are the foundation for IT asset the ITAM Review, and ITAM events and management success. webinars are excellent sources of best • Increasing benefits accrue as maturity practice information. Experienced IT level increases. “As IT organizations Best Practice asset management and software asset progress from level to level up the management consultants can also provide maturity curve, each step will yield The quality of processes implemented valuable knowledge and insight. in support of an IT asset management incremental savings, resulting in lower program is critical, especially for automated costs, decreased risk and increased • Tools. Superior IT asset management business alignment.”10 processes that are not under direct human tools integrate best practices directly to supervision. ensure tasks and activities are performed

8Gartner Inc.,Hype Cycle for IT , 2013 G00252566, 23 July 2013 9,10Gartner Inc.,Characteristics of IT Asset Management Maturity G00227267, 28 March 2012

3 • Maturity increases as a result of process “By integrating IT life cycle management Selecting a Tool to Support Your IT Asset improvement and implementation of tools processes through all the stages of the Management Processes that provide effective process support asset life cycle, IT asset management There are four core capabilities tools must and automation. For example, these are (ITAM) programs will contribute provide to support an effective IT asset 12 characteristics of organizations at the meaningful savings at each stage.” management program: proactive (3rd) level of the Gartner ITAM maturity model: Successful IT asset management programs • An IT asset management repository; are supported by effective tools. An effective “At this level, asset management tool is characterized by its ability to manage • Hardware and software inventory and planners have designed, documented financial, contractual and physical data, usage information; and tested the processes that are integrate with adjacent IT management tools being adhered to around the different and business systems, provide out of the • Integration with adjacent IT and business stages of the life cycle, and where the box best practice functionality, and support systems; and, processes intersect with other IT areas, implementation and automation of IT asset such as service request, service desk management processes. • Data import. and . Another characteristic of this level is that an ITAM “Organizations that systematically The IT asset management repository is repository and at least one inventory manage IT asset life cycles focusing on the principal component of an IT asset tool and software usage tool should processes augmented by tools will reduce management system. It serves as the central be installed and delivering day-to-day costs and improve the performance of the store for the required financial, contractual 13 reports regarding the performance of the IT assets in their environment.” and physical data. However, what assets. These tools will help automate determines the quality and effectiveness of processes, thereby reducing the need for Components of a successful IT asset the tool is the repository’s functional ability manual data entry, such as data management program: to perform IT asset management tasks and or hardware inventory data collection, activities that support processes across the which will lead to a higher degree • Complete coverage of the entire IT asset life cycle and that are based on best practice. of data accuracy.”11 life cycle, from requisition to retirement (or beyond); The ability to discover hardware and Continuous process improvement software inventory and determine asset combined with effective tools that provide • Well defined processes to ensure use is similarly essential to effective IT asset process support and automation advance efficient, consistent and accurate management. Both automated discovery IT asset management maturity to deliver execution of IT asset management tasks and physical inventory tools like bar code increasingly greater benefit. and activities; scanning are required to ensure continuous management of assets through both Building a Successful IT Asset • Continuous process improvement to operational and non-operational portions Management Program achieve increasingly greater levels of of the life cycle. Without physical inventory In order to realize the significant potential maturity; and, capabilities, it is impossible to support benefits of IT asset management, a certain IT asset management processes and successful program requires breadth and • Effective tools that provide process best practices, such as receiving and rolling depth. Specifically, breadth of life cycle support and automation. (physical) inventory. coverage and depth of process support. Making continuous improvements to processes results in increasingly greater benefits.

11Gartner Inc., Characteristics of IT Asset Management Maturity G00227267, 28 March 2012 12,13Gartner Inc., Adopt IT Asset Life Cycle Management as the Foundation for Your ITAM Programs G00225114, 20 September 2012 14Gartner Inc., MarketScope for the IT Asset Management Repository G00247007, 2 April 2013

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IT asset management is reliant upon data In lieu of or as a supplement to hands on The Joint Microsoft® – Provance® Solution from both IT and business systems. For this testing are product reviews and evaluations for IT Asset Management reason, by objective and knowledgeable third The joint IT asset management solution parties. The Gartner MarketScope for the comprised of Microsoft® System Center and “When choosing an ITAM repository, IT Asset Management Repository provides Provance® management pack extensions most Gartner clients say one of the a review of 14 products and vendors. In features rich integration with the Microsoft top priorities is to look for how tightly addition, Gartner clients can schedule an Server and Cloud Platform for IT operational integrated the repository is with adjacent analyst inquiry to ask detailed questions management, complete life cycle coverage, toolsets. The primary toolsets with which about tools under consideration. Product built-in best practice, process automation ITAM repositories will integrate, besides reviews are also occasionally featured in and powerful data import. It represents a inventory and software usage, are IT industry periodicals and web sites; however, unique collaboration that delivers the best service support management, change caution should be exercised in using of both worlds — the recognized IT asset management, and purchasing and information acquired from general forums management expertise of an agile and 14 configuration management.” and blogs, even those hosted or moderated innovative independent software specialist, by a credible authority — particularly when delivered on a powerful, extensible platform Where no direct technical integration is information is posted by unattributed sources developed and backed by the world’s largest provided, effective data import capability is or anonymous authors. software company. required, e.g., from finance or ERP systems. At a minimum, an import tool should be Reputable tool vendors will be able to provide Microsoft System Center able to access information stored in either customer case studies and references. While Microsoft System Center is IT operational databases or files, and provide capabilities partisan, these can be useful in more clearly management software that delivers unified to filter and transform source data to either understanding capabilities or scenarios management across on-premises, service create or update asset records in the that are particularly relevant or specific to a provider, and Windows® Azure environments, repository. certain business need or industry. thereby enabling the Microsoft Cloud OS. System Center provides features that enable Given the increased benefit that is realized In addition to gauging the quality and infrastructure provisioning, infrastructure as an IT asset management program appropriateness of the tool, thorough due monitoring, application performance evolves, it is essential to select a tool whose diligence is also required in appraising monitoring, automation and self-service, and feature set will not just meet current needs, prospective suppliers. Important assessment IT service management. Capabilities of System but will also support anticipated future criteria include: Center that support IT asset management requirements as maturity improves. A larger include: initial investment in a more highly functional • Established experience in IT asset tool at the outset can prevent significantly management and software development; • Configuration management database higher downstream costs to “rip and (CMDB). System Center-Service Manager replace” a tool whose functionality fails to • Future viability (derived in part by past features a CMDB with out-of-the- keep pace with organizational improvement. track record and length of time in box connectors to Active Directory®, operation); Evaluating IT Asset Management Tools Configuration Manager, Operations Manager, Orchestrator and .csv file import. and Vendors • Evidence of success and expertise, such as industry memberships, awards, It’s essential to thoroughly assess and • Inventory. System Center — Configuration accreditations and certifications; evaluate tools. The preferred method of Manager provides discovery of inventory evaluation is through firsthand use of fully and usage information for hardware and • Company priority and focus on IT asset functional trial or evaluation versions. This software. provides an opportunity to rigorously test management software development (as opposed to , software with real data and fully explore • User and organizational detail. The out-of- development focus on other software integration with existing systems and the-box System Center — Service Manager products, etc.); and, environments. Along with a functional connector to Active Directory® imports assessment, a detailed review of product user, device and organizational detail into • Established history of product introduction documentation will help establish the tool’s Configuration Items in the CMDB. capabilities and quality. and .

5 • IT Service Management. IT service Provance IT Asset Management for In the most recent MarketScope for the IT management is a primary point of Microsoft System Center Asset Management Repository, Gartner interaction with IT asset management. For more than 16 years Provance IT Asset Research evaluated 14 IT asset management System Center — Service Manager Management software has been used by solutions targeted at midsize and large provides Incident, Problem, Change, enterprises and government organizations enterprises. The only native solution for Release and Request Management to of all sizes to drive down IT costs, increase Microsoft System Center included in the support the delivery of IT services. service management efficiency, and reduce MarketScope, Provance was rated overall security and compliance risks. Today, as “Promising,” and received recognition • Self-service. Users can submit and check Provance provides the most complete and from Gartner for its strong integration with the status of IT service requests, change powerful IT asset management solution for Microsoft System Center 2012 and its ability requests and incidents through the web- the Microsoft Server and Cloud Platform, to rapidly innovate. Gartner recommends based System Center — Service Manager enabling coverage of the entire IT asset life the Provance IT Asset Management Pack as self-service portal. cycle with deep support for process based an option for Microsoft-centric businesses, on best practice. The Provance family of IT particularly those who have implemented • Automation. PowerShell, built-in workflow asset management software products run Microsoft System Center 2012 Configuration capabilities and runbook automation natively as process management packs Manager or Service Manager components. using System Center — Orchestrator within Microsoft System Center 2012. They all provide powerful functionality for supplement the IT service management In addition to expertise in IT asset automating tasks, activities and system- capability of Microsoft System Center with management process, Provance places high to-system interaction. powerful IT asset life cycle management, value on excellence in internal operational software asset management, data process and continual improvement, and is management and physical inventory certified to the ISO 9001:2008 international management. From request to disposal, standard for . A Provance gives you visibility and control of Microsoft Gold Certified Partner, Provance the hardware and software that make up holds the Microsoft Software Asset your client, cloud computing and datacenter Management (SAM) and Volume Licensing environments. Competencies and is a member of the Microsoft System Center Alliance. Provance was named Microsoft 2011 SAM Innovation Partner of the Year finalist, and was a national 2011 Microsoft Impact Awards Partner of the Year finalist for SAM and .

Source: Provance

Provance is a registered trademark of Provance Technologies Inc. Active Directory and Microsoft are either registered trademarks or trademarks of Microsoft in the United States and/or other countries. ITIL® is a Registered Mark, and a Registered Community Trade Mark of the Office of Government Commerce, and is Registered in the U.S. Patent and Trademark Office. All other brands, trademarks, and registered trademarks are the property of their respective owners. ©2014 Provance Technologies Inc. All rights reserved. Information may be subject to change without notice.

6 7 From the Gartner Files: Demonstrate the Relevance of Your ITAM Program by Using Outcome-Oriented Metrics

IT asset managers must demonstrate and Consider utilizing an internal audit to add to the enterprise, ITAM budgets will continue quantify IT asset management program credibility to ITAM value metric processes to be at risk of stagnation or reduction. This benefits to secure vital resources and ensure and methodology. results in insufficient funds for critical ITAM ITAM is a valued component of IT. Develop resources. outcome-oriented metrics to quantify the • Maintain an ongoing log of all cost value and ROI delivered to the business savings/avoidance that can be attributed In order to begin measuring and through ITAM practices. to ITAM program efforts, such as the communicating ITAM program benefits, IT cancellation of unused/unneeded asset managers should follow these steps: Key Challenges hardware maintenance, software licenses • IT asset managers struggle to and/or maintenance or services . 1 Determine what is important to your demonstrate and quantify value in order business and IT in terms of objectives and to justify continued executive sponsorship Introduction desired outcomes. and investment in IT asset management IT asset managers are struggling to ITAM. demonstrate and quantify value in order 2 Mine your existing ITAM processes to justify continued executive sponsorship for activities that link to these desired • Many ITAM teams are already short- and ongoing investment in ITAM resources. outcomes. staffed and unable to prioritize program These managers want to establish best- value assessments. The irony is that the in-class ITAM practices that demonstrate 3 Determine what outcomes can be very act of reporting this value could value, but they struggle to accomplish this effectively quantified and tracked. provide the justification for much-needed with limited resources, such as head count.1 additional head count and tools. ITAM budgets are often at risk of becoming 4 Develop an ongoing discipline of tracking stagnant or, in the worst case, shrinking. ITAM benefits that includes measurement • Tracking ITAM benefits is very time- validation and results communication. consuming, especially using a Unfortunately, without a clear business methodology that is accepted across case to demonstrate the need for increased Analysis the enterprise. Yet this practice lends resources, ITAM teams can usually expect Determine What’s Important and credibility and paves the way for more of the same. Business cases require Align ITAM Metrics With Business increased maturity of ITAM programs. hard facts, sound ROI calculations and and IT Goals proven financial benefits to be approved. If we were to measure and track ITAM • IT asset managers are often unsure what Having an established set of ongoing, metrics, what should we measure and why? types of metric to utilize to demonstrate monitored ITAM value metrics can help ease ITAM value that is meaningful to the this process. business. ITAM activities are important for several reasons. In recent years, there has been How do ITAM teams demonstrate and a heightened focus on ITAM activities as Recommendations promote their value? What should we really a result of an increase in software license track and measure? IT asset managers should: compliance audits.2 However, there are many other reasons why organizations must Many IT asset managers believe it’s too time- • Align ITAM metrics to critical business aim to establish or improve ITAM practices. and IT initiatives, goals and objectives consuming to track accomplishments when there are more pressing issues at hand. Even to ensure that values with the maximum The key prerequisite for success is to map when there is adequate staff to perform the impact are measured. the priorities of your particular business task, tracking benefits is often not a priority. to the value delivered through your ITAM (In Figure 1, note that stewardship of cost- • Evaluate all ITAM life cycle processes discipline in the various areas of importance benefit analysis was ranked by respondents (requisition, procurement, deployment, to your business and IT. Figure 1 shows lowest in importance as a reason to maintenance and retirement) to mine the anticipated benefits that were rated by implement an ITAM program.) them for delivered benefits. respondents in Gartner’s 2011 ITAM survey, in terms of their relative importance.3 • Scrutinize the logic behind ITAM benefits The problem with this opinion is that if there calculations to ensure their validity. is no perceived or validated value delivered

7 FIGURE 1 Measurements of risk avoidance from proper ITAM Importance Ratings asset disposal practices are well worth tracking and communicating, especially if Mean there have been fees or violations of ITAD’s Control of IT Assets 1 10 88 5.88 stringent regulations in the past. Document regulatory compliance (including fines License Compliance 2 12 86 5.87 avoided) as part of your benefits-tracking Cost Savings 6 10 85 5.73 discipline.

Inventory Accuracy 4 11 85 5.69 Another example is if your organization (like Financial Management of IT 6 13 82 5.57 many others) is developing sustainability Improvement of Configuration and/or “green IT” programs – it might be 7 13 80 5.45 Management worthwhile to look at ITAM metrics that Cost Avoidance 4 19 77 5.45 convey progress toward these goals. Many such programs are focused on reducing the 5.43 Operational Efficiency 5 16 79 carbon footprint and environmental waste Risk Reduction 11 13 76 5.25 of the enterprise. For organizations that deem this a priority, it is worth measuring Reuse of Software 10 17 73 5.10 the value of moving to recyclable materials Financial Analysis of IT 14 15 71 5.03 for all hardware items. Such organizations Sourcing Options could also place a value on changing asset Source: GartnerFinancial (February Liability 2007)15 20 64 4.96 disposal methods from landfill-based

Budget Deviation 13 20 68 4.92 disposal to vendors that ensure disposed items never end up in landfill. Figure 2 Stewardship of Cost 17 16 67 4.85 Benefit Analysis highlights some examples (taken from Not Extremely “Define and Capture Sustainable Value in Important Important Table 1. Ability to Execute Evaluation Criteria Your Supply Chain”). 1-3 rating 4 rating 5-7 rating If your business maintains highly sensitive Note: The question asked was, “How important were or are the following benefits to your organization when information, where the risk of its exposure at implementing ITAM?” endpoints such as PCs or mobile phones is a ITAM = IT asset management concern, then security risk metrics would also Number of respondents = 143 be very beneficial to track. Where potential Source: Gartner (May 2013) losses can be tracked and recovery rates can be proven, incidents and successful mitigation can be reported — for example, A good example of how ITAM can clearly importance of such robust ITAD processes the number of times the ITAM organization demonstrate its considerable value is the and the substantial risk to your brand from was able to successfully wipe data from effective management of the high-risk end- ineffective ITAD. endpoint devices when they were reported state of the IT asset life cycle – retirement lost or stolen. In some cases, a monetary and disposition. Robust ITAM programs The benefits of ITAM may be difficult to value may be ascertained, or at least focus on the two major areas of IT asset quantify and project. However, they are very estimated, for such avoidance of data loss. disposition (ITAD) risk: data security and material in a financial sense, particularly environmentally-responsible recycling. All from a brand equity perspective. Just as Align your ITAM value metrics with critical organizations should ensure that their ITAD you may be able to manage risks within business initiatives to maximize the impact vendors have rigorous data sanitization a supplier agreement through improved of results. The more tightly integrated ITAM processes and a robust recycling process, terms and conditions, there is no specific practices are with key business goals and certified by eitherR2 Solutions or e-Stewards. financial number associated with this activity objectives, the more indispensable ITAM ITAM managers should communicate the to measure its success; however, these will undoubtedly be in the eyes of executive instances should still be tracked. management.

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FIGURE 2 3 Percentage of hardware leases refreshed Sustainability Example Drivers and Measures at or before the lease end date, as well as any buy-out negotiations that provide Value Drivers Measures value versus continuing with monthly payments. Cost, Impact and Pollution and waste Pollution prevention Risk Reduction Resource consumption Cost reduction and efficiency improvement Changing energy and resource 4 Number of purchase orders reduced Improved risk visibility and (see 2 above) — determine via your management Environmental externalities procurement team the cost of cutting one Compliance costs Tangible connections between sustainable and financial outcomes purchase order to a vendor. Supplier engagement — material and Enriched supplier interactions, shared product reporting and insight savings and collaboration 5 Successful audit results, which can be Reputational Transparency Product stewardship defined in a variety of ways. Success for Legitimacy Compliance Enhanced stakeholder relations your entity, based on its history, may be Communications and corporate social Reputation and legitimacy a compliance invoice of only 5% (or less) responsibility (CSR) Product portfolio re-evaluation of the current contract value. Capture any Green brand power and the green Supplier risk reduction marketplace costs avoided, such as fees you would Supplier engagement — social have to pay to the auditors if you are responsibility and labor standards found to be non-compliant.

Source: Gartner (May 2013) 6 Audits deterred/decreased – some clients have successfully demonstrated solid ITAM/software asset management (SAM) IT asset managers must determine Determine What Can Be Measured disciplines that convinced a supplier to what values can be quantified for their Effectively and Gather Baseline withdraw an audit request, or at least specific businesses. However, there are Data cease annual audits in favor of less 10 key metrics to consider that may help Once you have evaluated what is important frequent ones. If you accomplish this, you demonstrate the value of ITAM disciplines: to your business, decide what can be should record it. measured. When looking for potential 1 Number of unused or unnecessary value-add areas to measure and track, 7 Reduction in the total number of titles, line maintenance and/or support contracts first examine your IT asset life cycle and items with the same functionality and/ (hardware, software and telecom) associated processes, as illustrated in or number of suppliers in the portfolio, terminated, and their associated values, Figure 3. There are probably many steps in based on ITAM practices. as well as avoidance of any cancellation, the process already creating efficiencies, escalation or late fees. decreasing costs or reducing risks. Examine 8 Movement, transfer or divestiture of IT these life cycle processes to determine what assets through increased visibility and 2 Licenses and assets redeployed (or is currently in place and can be measured improved contract terms and conditions. refurbished or upgraded) versus moving forward. purchased (determine costs based on 9 Proactive elimination of license purchases current vendor contracts or comparable There are no rules when it comes to and/or non-standard equipment through substitute products). assessing and quantifying ITAM’s benefits. policy enforcement.

10 Reduction in cycle times for planning and executing major software licenses, FIGURE 3 maintenance and support renewals. IT Asset Life Cycle This list is not exhaustive. Continue to look Requisition Procuremen t Deploymen t Maintenance Retiremen t for areas in which your ITAM practices are providing real value to the enterprise. What efficiencies have been gained? What Source: Gartner (May 2013)

9 losses have been prevented? For all these Determine how and where you will maintain 3In a survey conducted in 2011, Gartner metrics, valid, fact-based data is of critical results. Some clients have developed invited 5,076 organizations in four countries importance. Ensure you can accurately repositories in applications such as from North America (the U.S.) and Europe account for and measure the value you claim SharePoint or Lotus Notes. Linking to asset (the U.K., Germany and France) to participate to be able to deliver. Develop and validate management systems or ERP systems may in a regional ITAM research study. The baseline states for each metric that will be require integration, but it can assist with the survey was administered online and using measured, so you can calculate end results automation of some of these processes. native languages. Survey questions focused comparatively over time. on ITAM maturity and organizational ITAM Consider auditing your processes. strategies. Of the 5,076 organizations initially Be mindful not to take sole credit in areas Unfortunately, ITAM organizations can face contacted, 2,934 qualified to participate that are collaborative efforts with other a conflict of interest when measuring their in Section 1 of the study, which focused on teams such as procurement or vendor own value. It can be beneficial to consult implementation and organizations’ ITAM management. Lastly, as benefits are with internal auditors and request a formal maturity. reported and communicated, ensure that review of process methodology and benefits you continue to improve and tweak your calculations. This will lend credibility to The qualifying criteria for this section metrics and methodologies over time to the metrics and can reduce or eliminate included: having already implemented an meet the evolving needs of your constituents. executives’ skepticism about the findings. ITAM program, currently implementing one, or implementing one in the next 12 months; Develop a Standardized Discipline However, as the ITAM discipline matures, its and having extensive knowledge of their of Benefits Measurement and metrics and the audited benefits calculation organization’s ITAM activities. Quotas were Communication methodology will, of necessity, evolve as further provided to ensure an equal sample well. Moreover, ITAM’s value metrics will size between the regions and a mixture of If something is worth measuring, the process have to be continuously tweaked and Gartner’s 14 industry subgroupings. of calculating these ITAM values should be retuned to remain in alignment with the well-documented, including the precise dynamic objectives of both IT and the In Section 2 of the study, Gartner homed formulas that must be followed for each business. in on large and midsize organizations and metric. Create a methods and procedures individuals with a more extensive knowledge document that details all the benefit Evidence of their organizations’ ITAM activities. measurement processes. Categorize each 1 Qualifying panelists (298) completed the benefit type and develop the standardized Over a 24-month period ending in March remainder of the study. The sample showed set of processes that will be used to measure 2013, Gartner’s IT Asset Management and an almost equal split between each region, that metric consistently. Procurement analysts fielded 4,042 inquires relating to ITAM. with 150 respondents in North America and 148 in Europe. Determine the frequency with which you will 2 calculate and report each metric. Develop Data from surveys carried out at Gartner The survey was developed collaboratively an effective communication plan for the IT Financial, Procurement and Asset by a team of Gartner analysts that follow the appropriate stakeholders, taking necessary Management Summits between 2005 and ITAM market, and it was reviewed, tested steps to ensure that it will be followed 2012, which showed that the percentage of and administered by Gartner’s research data consistently. Discuss your plans with respondents subjected to vendor software analytics team. relevant parties to determine the best format audits increased from 30% to 62% during this period. A similar poll of readers of The for delivering the results. For example, Source: Gartner Research, G00249346, Gayla Sullivan, enterprise (ERM) may ITAM Review in July 2010 found that 78% 16 May 2013 only be interested in ITAM metrics such as of respondents had been audited, with endpoint that tracks an average of 2.5 audits each, during the risk reduction. However, the CFO may wish to preceding 12 months. focus on areas of cost/budget reduction. The CIO may desire a monthly dashboard that expresses ITAM benefits in all areas.

10 About Provance®

When it comes to IT Asset Management for the Microsoft Server and Provance’s obsession with process permeates our product and Cloud Platform, Provance is the best in the business. organization — from software development to customer support — and is supported by 12 straight years of certification to the ISO 9001 An independent vendor of IT Asset Management software since international standard for quality management. 1997 and developer of the first third-party process management pack for Microsoft System Center, Provance has helped customers in Microsoft customers know that choosing Provance means a enterprises and governments from around the world drive down IT relationship with an acclaimed gold certified Microsoft partner that costs, increase service management efficiency and reduce security pioneered the development of process management packs for and compliance risks. Microsoft System Center.

Provance customers have achieved increases in IT service Provance is one of a select group of partners that actively participates management efficiencies in the ninetieth percentile, saved hundreds in Microsoft partner programs such as the Microsoft Technology of thousands annually in software licensing and hardware costs and Adoption Program (TAP) and Rapid Deployment Program (RDP), millions collectively in total IT savings. Microsoft Premier Support and the Microsoft System Center Alliance. The only IT Asset Management solution for Microsoft System Center Our customers know that choosing Provance means not only “best- verified for integration with all versions of Service Manager and in-class” software tracked by leading industry analysts like Gartner, Configuration Manager, Provance is one of just 22 third-party but a relationship with an organization obsessed with process software providers showcased in the 31 Microsoft Technology Centers — the foundation of both the IT Service Management and IT Asset around the world. Management disciplines.

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