On-Demand Automation for Business Discipline in IT

1. The On Demand Operating EnvironmentDriving Business Discipline into IT Sandy Carter On Demand Automation Executive Sponsor VP WW Tivoli Marketing

2. Today we are talking about… 1 The On Demand Operating Environment On Demand Automation: Aligning IT Operations to Business Goals US Open, Prudential Steps to begin 2 3

3. Business Transformation Flexible Financial & Delivery Options Where to Focus First? Where you start depends on YOUR organization’s priorities. On Demand Operating Environment ENTRY Business Processes ENTRY • Increasing flexibility is the key—business models, processes, infrastructure, plus financing and delivery

4. On Demand Operating Environment Drives Measurable Business Value Integration Business flexibility through integrationof people, processes and information within and beyond the enterprise. Infrastructure Management Reduce complexity and cost of IT managementbased on business policies through Automation and Virtualization technologies.

5. On Demand Automation Delivers Measurable Value Business Service Management Infrastructure Orchestration IBM Infrastructure Management Blueprint Manage using business priority, manage service levels Sense, triggers, respond according to business goals • 40-50% savings in SLA reporting • Increase resource utilization avg. from 20% - 50% • 30-40% reduced admin time • 15-30% savings on time for root cause determination, downtime Availability Security Optimization Provisioning Ensure Health and appropriate functioning of IT Protect information assets, confidentiality and data integrity Make available right resources to right processes and people Ensure most productive utilization of IT • 27-32% savings triage time • 25-35% higher first call close • 35-40% reduced admin time • 35-40% reduced access time • 20-25% greater utilization • 40-50% fewer batch restarts • 15-35% less capital outlay • 25-30% reduced staff req’ts Resource Virtualization • 10-25% saving in physical consolidation • Increased storage utilization up to 3X Single, consolidated, logical view of and easy access to all available resources in a network -  

6. On Demand Automation Delivers Measurable Value Business Service Management Infrastructure Orchestration IBM Infrastructure Management Blueprint Manage using business priority, manage service levels Sense, triggers, respond according to business goals • 40-50% savings in SLA reporting • Increase resource utilization avg. from 20% - 50% • 30-40% reduced admin time • 15-30% savings on time for root cause determination, downtime Availability Security Optimization Provisioning Ensure Health and appropriate functioning of IT Protect information assets, confidentiality and data integrity Make available right resources to right processes and people Ensure most productive utilization of IT • 27-32% savings triage time • 25-35% higher first call close • 35-40% reduced admin time • 35-40% reduced access time • 20-25% greater utilization • 40-50% fewer batch restarts • 15-35% less capital outlay • 25-30% reduced staff req’ts Resource Virtualization • 10-25% saving in physical consolidation • Increased storage utilization up to 3X Single, consolidated, logical view of and easy access to all available resources in a network -  

7. Customer IT Server Usage Example Online banking: morning peak Branch Bank Teller: afternoon peak Home Banking: evening peak Maximum flexibility while increasing utilizationProvisioning and Orchestration 100 • Traditional IT Environment • Variable peak workloads • 92% manual processes • Slow response to change 80 60 % Demand 40 20 0 Just-in-Case Provisioning Low, Medium and High Demands Throughout the Day 8AM 10AM NOON 2PM 4PM 6PM 8PM 100 Result: Low Overall Resource Utilizationand High Labor Costs • Traditional IT Results • 15% average utilization • IT personnel focus on maintenance • Increased resource costs 80 60 % Utilization 40 20 0 8AM 10AM NOON 2PM 4PM 6PM 8PM Source: IBM analysis of Industry Consultant Reports and IBM customer engagements

8. Provisioning and Orchestration Orchestration • Sense and respond • Dynamically support SLAs • Best practices for aligning IT resources with business goals Provisioning • Automate execution of manual processes • Capture data center best practices • Help reduce human error Service Level Threshold Response Time Dynamic Resource Allocation 13-23 Days

9. The Challenge with Traditional IT Management IT View 99.1% Router MQSeries 99.4% DB2 99.1% Network 99.4% WebSphere 97.9% Domino 98.6% Unix 95.1% Customer's Application 74.0%

10. Consumer Relationship Customer Relationship Supply Chain & Distribution Business Administration Manufacturing Supply Chain Strategy Corporate Strategy Customer Relationship Strategy Manufacturing Strategy Category/Brand Strategy Strategy Corporate Planning Supplier Relationship Management Alliance Management Category/Brand Planning Customer Relationship Planning Line of Business Planning Production and Materials Planning Business Performance Management Brand P&L Management Assessing Customer Satisfaction Distribution Oversight External Market Analysis Manufacturing Oversight Tactics Matching Supply and Demand Customer Insights In-bound Logistics Out-bound Logistics Organization and Process Design Marketing Development & Effectiveness Account Management Supplier Control Legal and Regulatory Compliance Product Ideation Make Products Treasury and Risk Management Concept/Product Testing Value-Added Services Distribution Center Operations Accounting and GL Assemble/Pkg. Products Execution Customer Account Servicing Indirect Procurement Product Management Plant Inventory Management Retail Marketing Execution Transportation Resources Facilities and Equipment Management Marketing Execution In-store Inventory Mgmt HR Administration Manufacturing Procurement Consumer Service En route Inventory Management IT Systems and Operations Customer Directory Product Directory Business Designed for Growth and Change First, create a componentized view of the business Next, decide what’s differentiating and what is simply operating Then, analyze costs Finally, prioritize your initiatives 1 2 3 4

11. Consumer Relationship Customer Relationship Supply Chain & Distribution Business Administration Manufacturing Supply Chain Strategy Corporate Strategy Customer Relationship Strategy Manufacturing Strategy Category/Brand Strategy Strategy Corporate Planning Supplier Relationship Management Alliance Management Category/Brand Planning Customer Relationship Planning Line of Business Planning Production and Materials Planning Business Performance Management Brand P&L Management Assessing Customer Satisfaction Distribution Oversight External Market Analysis Manufacturing Oversight Tactics Matching Supply and Demand Customer Insights In-bound Logistics Out-bound Logistics Organization and Process Design Marketing Development & Effectiveness Account Management Supplier Control Legal and Regulatory Compliance Product Ideation Make Products Treasury and Risk Management Concept/Product Testing Value-Added Services Distribution Center Operations Accounting and GL Assemble/Pkg. Products Execution Customer Account Servicing Indirect Procurement Product Management Plant Inventory Management Retail Marketing Execution Transportation Resources Facilities and Equipment Management Marketing Execution In-store Inventory Mgmt HR Administration Manufacturing Procurement Consumer Service En route Inventory Management IT Systems and Operations Customer Directory Product Directory Reality Check—What They Want vs. What You Have • The highest impact priorities are typically horizontal processes • They’re cross-divisional—and probably cross-company

12. Govern Manage IT by Business Priority and Increase Service LevelsBusiness Service Management Align IT operations to business priorities and manage business systems in real-time, historical and predictive ways • Consolidation point of data and management capability across the IT infrastructure • Single consolidated view of the end-to-end “health” of the IT infrastructure including non-IBM Tivoli assets

13. IBM Partners Aspects of an insurance solution – portal view • The workplace • (WebSphere Portal) • Tailored reporting Prompted actions (WBI Monitor/business rules) Collaboration service (Lotus Instant Messaging) Customize rules; provide rules management system Visualization tools, “portlets” Comparative analyses DB2 Information Integrator Business Intelligence • Manage/orchestrate systems • Tivoli BSM Provide industry specific analysis & reporting • Alerts • Tivoli BSM, WBI Monitor, business intelligence, • business rules • Process monitoring • WBI Monitor • “Insurance leading practice” • Application, system, data and process events Provide leading best practice model, costing, key performance indicators

14. Increase Business Flexibility eBay: Continuing the On Demand Journey with 60,000 Transactions Per Second IBM On Demand Automation behind the scene: Automated deployment process for all the servers in less than 12 weeks Cut time to remove and reactivate a system from 20 to 4 minutes Reduced application downtime due to rollouts Challenges Challenges • Provide highly reliable infrastructure – WW auctions 24x7 • Manage fast business growth – 104.8 million users • Deploy new services real-time – 328 million listings Solution Solution IBM WebSphere Application Server, IBM WebSphere Studio Application Developer IBM Tivoli Business Systems Manager, IBM Tivoli Monitoring Family, IBM Tivoli Configuration Manager, IBM Global Services “The IBM On Demand Automation roadmap will help us move to full-automation and gain new levels of resiliency, efficiency, responsiveness, and flexibility” — Mark Hydar, Manager Enterprise Management Systems, eBay

15. Business Designed for Growth and Change

16. Assess current state Determine future state Develop Roadmaps Identify required capabilities and initiatives How Do I Start? The steps required to build an On Demand Operating Environment Customized on demand Adoption Roadmap

17. 1 2 3 Take the next steps now… Learn more about the On Demand Operating Environment • www.ibm.com/ondemand • www.ibm.com/software/tivoli/features/may2004 Look at how customers like you gain value from the On Demand Operating Environment • Case studies (US Open, HBOS, eBay) • User groups – www.tivoli-ug.org Talk to your IBM sales rep or business partnersabout a freeOn Demand Automation Assessment On Demand Operating Environment drives Business Discipline to IT