Development of Enterprise Computing Asset Management: Processes and Metrics

1. Development of Enterprise Computing Asset Management: Processes and Metrics by Jason C. H. Chen, Ph.D. Professor of MIS Gonzaga University Spokane, WA 99258, USA chen@gonzaga.edu

2. Project Description: Asset management can reduce the cost of computing without reducing effectiveness. The project will: • Identify a process for managing site assets • Identify metrics to monitor • Identify a process for collecting the metrics

3. What is Computing Asset Management? • Computing asset management is a process or technology that helps to manage computer hardware/software procurement, usage, facilitate license compliance, track inventory, and enable change, providing overall ability to efficiently deploy software and manage portfolios.

4. Goals of Computing Asset Management • Reduce costs • Increase effectiveness • Enhance return on investment (ROI)

5. An Enterprise Model to Computing Asset Management Knowledge Information Change

6. Planning Analysis Maintenance Design Implementation Project Development Process: (PDP) • Knowledge Management • Process(KMP) • Knowledge Creation • Knowledge Sharing • Capture • Organize • Access • Knowledge Application • USE • GOALS: • Reduce costs • Increase effectiveness • Enhance ROI Change Knowledge Information • Information Quality • Metrics: • Time • Content • Form • Change Management • Process(CMP): • Culture • Operational • Benchmarking • Outsourcing • BPI/BPR • TCO • Desktop Asset Management Processes, Metrics Report to IT Managers, CIOs, CFOs etc. TM -6 Dr. Chen, Computing Asset Management

7. Functional Scope Content Scope Create Knowledge Creation Use Knowledge Application Capture Organize Access Knowledge Sharing Cross-Process Activities Value Collaboration Maintenance Figure 6: Gartner Group’s KM Process Framework TM -7 Dr. Chen, Computing Asset Management

8. TM -8 Dr. Chen, Computing Asset Management

9. What is a Process? • A process is a set of linked activities that transforminputs into outputs. • An input or output may be a type of manpower/services, equipment, materials/goods, methods, and environment.

10. What is a Process?(Conti.) • The transformation involves the addition or creation of value in one of three aspects: time (when), place (where), or form (how).

11. Metrics • Metrics are combined measures and variables that quantify a goal. • Metric values are the numerical values for metrics. • Time horizon is the period allowed for achieving the goal or objective.

12. What is Total Cost of Ownership (TCO)? • is collective (and usually annualized) cost (both direct and indirect) of providing and maintaining corporate information services

13. Goals of TCO • Help enterprises understand many of the components involved in both the budgeted (direct) and unbudgeted (indirect/hidden) costs of acquiring, operating and managing their IT infrastructures throughout its life cycle • Reduce TCO • Increase ROI

14. Four Metrics for TCO Model • Capital • Technical Support • Administration • End-user operations Each category is further divided into desktop and network components

15. Total Cost of Ownership (TCO) by Platform

16. A Process model: 10 Steps To A Lower PC TCO • Take a PC inventory • Match the box with the usage • Adopt and enforce internal standards • Choose a vendor you can work with over the long haul • Develop an implementation plan and stick to it

17. 10 Steps To A Lower PC TCO(Conti.) • You can't improve what you can't measure • Know what you're paying for • Match your TCO model and methods to your industry • Look at what other companies have done to reduce TCO • Investigate unorthodox solutions to cutting costs

18. CFO CIO IS-Manager Figure 8: A Desktop Asset Management(DAM) software Tool Environment Model Asset Acquisition (What, How many, and When) MS/SMS Planning/Budgeting/Forecasting Asset Requirements T C O Inventory D.B. ROI Analysis Desktop Asset Management (DAM) Software Tool Maximizing Advantages of other Alternatives DAM D.B. Other D.B. Help Desk (Who has Which software, Where and When) Software Distribution Financial D.B. Financial Management Software Tool Y2K (What, Where) Messaging Management (Service Level Management) TM -18 Dr. Chen, Computing Asset Management

19. V-A DAM TOOL Inventory MS/ Systems Metering/ Management Monitoring Server Software SMS Distribution DAM Database Y2k IT Manager/ ¼¼¼¼¼¼¼¼¼¼ ¼¼¼¼¼¼¼¼¼¼ System Administrator/ ¼¼¼¼¼¼¼¼¼¼ CIO/CFO Messaging Management Figure 9: A Value-Added Desktop Asset Management (V-A DAM) Software Tool Model

20. V-A DAM TOOL ( Cenergy) Inventory ( NetCensus) MS/ Metering/ Systems Monitoring Management ( CentaMeter) Server Software SMS Distribution DAM ( WinINSTALL) Database Y2k IT Manager/ (Centennial 2000) ¼¼¼¼¼¼¼¼ System Administrator/ ¼¼¼¼¼¼¼ CIO/CFO ¼¼¼¼¼¼¼¼ Messaging Management ( MailCheck/ Veranda) Figure 10: A Value-Added Desktop Asset Management (V-A DAM) Software Tool Model (Tally Systems Corp.)

21. A Survey from Gartner ... Gartner studied 30 end-user organizations with an average of 7,000 workstations, the firm found the following results: • 68 percent reported that their organization had an asset database • 50 percent claimed that asset management was a priority for the Information Systems (IS) organization • 26 percent claimed asset management was a priority for the enterprise • 23 percent reported that formal asset management plans had been implemented • 19 percent had an individual responsible for enterprise-wide asset management

22. Based on total number of PCs of 80,000 units 1. Assume that a company pays $100 to each copy Total cost: $100 x 80,000=$8,000,000 Based on number of concurrent users: 80% 1. MS/Office suite cost $100 x 80,000 x 80% = $6,400,000 2. Asset management software (Cenergy, with 3 modules) cost: Cost on ASM ($17/each):$17 x 80,000=$1,360,000 3. Total costs: $6,400,000 + $1,360,000= $7,760,000 A Company Example of Cost Savings on MS/Office Suite Licensing

23. Based on total number of PCs of 80,000 units 1. Assume that a company pays $100 to each copy Total cost: $100 x 80,000=$8,000,000 2. TOTAL SAVINGS: $8,000,000 - $7,760,000 = $240,000 3. Plus other potential strategic advantages Based on number of concurrent users: 80% 1. MS/Office suite cost $100 x 80,000 x 80% = $6,400,000 2. Asset management software (Cenergy, with 3 modules) cost: Cost on AMS ($17/each):$17 x 80,000=$1,360,000 3. Total costs: $6,400,000 + $1,360,000= $7,760,000 A Company Example of Cost Savings on MS/Office Suite Licensing (Cont.)

24. Based on total number of PCs of 80,000 units 1. Assume that a company pays $100 to each copy Total cost: $100 x 80,000=$8,000,000 2. TOTAL SAVINGS: $8,000,000 - $7,360,000 = $640,000 3. Plus other potential strategic advantages Based on number of concurrent users: 75% 1. MS/Office suite cost $100 x 80,000 x 75% = $6,000,000 2. Asset management software (Cenergy, with 3 modules) cost: Cost on AMS ($17/each):$17 x 80,000=$1,360,000 3. Total costs: $6,000,000 + $1,360,000= $7,360,000 A Company Example of Cost Savings on MS/Office Suite Licensing (Cont.)

25. Conclusion and Recommendations • Apply the suggested enterprise model to project development processes • Use suggested processes and metrics in the computing asset management • Evaluate a different software licensing strategy (e.g., concurrent users) by using “metering/monitoring” function from one of the suggested DAM software tools to reduce TOC and increase/explore other potential strategic advantages