When two Fortune 500 companies merge the IT convergence can feel like two high speed trains on parallel tracks speeding toward a single-track tunnel. Not only is IT tasked with maintaining or increasing quality of service, but the CEO’s are quite impatient to quickly rationalize the IT operating expense equation of “1+1=1.25”. Maybe 1.50 if you have an extremely benevolent Board of Directors.

Unlike the Automotive Industry example posted earlier (BSM Evolution Paths: Auto Industry Sample), this Financial Services example has much less tops-down roadmap direction, and much more independent parallel paths. Let’s take a look at three of the key personas and evolutions within these parallel paths.

Data Center Operations Manager; Infrastructure Operations path:

The new Data Center Operations Manager (DCOM; reporting to VP of IT Ops) commissioned a tools architecture analysis. They inventoried their management tools and counted over 80 major “platforms” in the fault, performance and availability category alone!

The DCOM empowered a Global Software Management Architect to drive a “limited vendor” strategy to simplify and standardize the tool environment. Although there were many individual domain experts bent out of shape, this standardized environment limited the vendor touches, enabled renegotiated license/support contracts, concentrated tool expertise and resulted in improved quality of service.

The fault, performance and availability architecture was boiled down to three major vendors covering three broad categories (plus device specific element plug-ins):

• System Infrastructure (Server, OS, Database, storage middleware, LAN feeds, etc.)
• Network Services (WAN, LAN, advanced protocols, route analytics, etc.)
• Enterprise Event (consolidated event console, correlation, filtering, root cause)

The DCOM could have pushed harder for a single vendor covering all three categories, but it was a matter of time-to-deploy pragmatism. A vendor could only be selected as category solution if the product was successfully deployed previously, and internal deployment expertise existed to lead the global implementation. This “survival of the fittest” approach did not necessarily drive the most elegant architecture, but it did speed deployment and limit risk.

Independent roadmaps and key integration capabilities were developed for each category to meet 6, 12, 18 and 24 month milestones.

CTO; Business Service Oversight path

Early on in the merger process, there was a power struggle to own the business service visibility and accountability solution. The VP of IT Operations wanted the tools, process and organizational power, but the Lines of Business insisted on a more independent group that would sit between IT Operations and the business-aligned Application Owners.

The Online Banking Group from one of the pre-merger divisions had successfully implemented a business service dashboard and Service Level Agreement reporting solution (based primarily on end-user experience monitoring). Using an “adopt and go” strategy, the CIO empowered the CTO to develop an end-to-end group and expand the solution to all six major business units.

This business unit expansion rolled out over 12-18 months and was successful, but limited to monitoring and reporting. Over the next 12 months, Application Owners, Line of Business CIO’s and VP of IT Operations all wanted to extend the business service monitoring to:

1. Problem isolation, application diagnostics, and incident resolution
2. In-depth transaction management of composite applications

Director Service Management; Enterprise CMDB path

The Director of Service Management, reporting to VP IT Ops, drove two major initiatives over the first 12 months of the merger.

1. Consolidate to a single, global, follow-the-sun service desk
2. Rationalize and standardize the request and incident management process

I could easily spend an entire blog post discussing the IT process convergence and standardization, but I refuse! Instead, I’ll focus on what happened in the 12 months following the service desk consolidation.

The Director of Service Management launched a CMDB RFP which was originally grounded in incident, problem and configuration management. The RFP touched off an enterprise-wide nerve, not to mention a flurry of vendor responses. The project quickly expanded, and changed focus to the “hotter” driver of change and (release) risk management, and how to drive all IT process from an enterprise service model.

Once the application owners got involved (from a change/release control perspective), and the infrastructure operations got involved (from a change and performance/availability perspective), and the CTO got involved (from a business service reporting and accountability rperspective) all of a sudden incident management took a back seat in the decision process.

In the end, a service discovery, dependency mapping and change/release management solution was selected that was a different vendor all together from the incumbent service desk solution.

An interesting journey… so far

The three paths described above are clearly a small subset of the overall work done for this corporate merger, but hopefully gives a glimpse into the BSM evolution dynamics. By all accounts, this company has been successful in their journey; you may be interested to know that this financial services company is not participating in the government bail-out program.

The lack of a tops-down “enterprise IT transformation” roadmap did not hinder their progress… in fact some will argue it enable their progress! You can observe, however, that at the end of each path there is a drive towards further integration and cross-IT dependence. It will be interesting to watch this company, and see how their approach evolves as they continue down the intersecting evolution paths.

Bryan Dean, BSM Research