WEBINAR The Rise Of Robots: How Automation Will Transform I&O Jean-Pierre Garbani, Vice President, Principal Analyst December 9, 2015. Call in at 10:55 a.m. Eastern time

Robot: From the Slavic language Robota (work) Fictional humanoid in the 1921 play R.U.R. (Rossum’s Universal Robots) by Czech author Karel Capek (Scene from the 1921 play)

Agenda Consequences of the “Digital Disruption” What does it mean for I&O? Creating an automation strategy Beyond 2016: Heuristic automation Conclusion

Business demands

Differentiate to grow

New services become growth engines

But: legacy budgets limit new projects MOOSE: Maintaining and Operation the tech Organization Systems and Equipment $ billion MOOSE is where budgets are spent

Can I&O keep growing? Image source: Wikipedia (http://en.wikipedia.org/)

CIO staff is growing faster . . . budget Software budget

The CIO technology conundrum Legacy systems weigh heavily on the CIO budget. Limited budget growth means difficult choices between upgrading legacy and business demand We need to increase productivity: not by a fraction but by an order of magnitude.

“Productivity depends more on technological changes and economy of scale than on human efforts.” Charles Perrow Princeton University

Deterministic automation example

But automation adoption is not growing Private cloud I&O processes

Automation requires a business plan The project leader must be independent from the project impact. Any organization is shadowed by a network of affiliations and allegiances. Success of an automation project is based on financial benefits to the enterprise. Vested interest must not undermine the project.

Automation requires a business plan The project must be sponsored at a high level. An automation project must be supported at the highest level of the CIO organization and part of the overall technology management strategy. Business leaders must be involved as sponsors as the end result is going to benefit BT initiatives.

Automation business plan Assess all the components of the current process and create a baseline. Evaluate all dimensions of the process such as time, resources, tools, and overall costs. Overall costs have a major influence on the final decision to implement or not the automation project.. Evaluate the challenge and opportunities for automation. There are domains where off-the-shelf automation may provide an immediate benefit. Others which could be automated later when the technology becomes available. Some areas where human intelligence, initiative, and decision-making abilities prevail over automation. Create a set of requirements for each automation opportunities. Submit RFP to vendors for their current and future solutions. Proof of concept provides valuable information on deployment and limitations of solutions. Evaluate the organizational and operational impact. Changes in role, the skills needed by the new solution. Impact of disrupting an existing process must be understood. Challenges in project completion and performance must be included in this evaluation. Create a financial analysis of the project. Project providing a net benefit over the existing process. Impact on benefits when adjusted for operational and implementation risks? Should the project be delayed until the available technology brings more benefits and expands the scope of process automation?

Beyond 2016: intelligence

The limits of deterministic automation

Heuristic automation based on AI

Service management and automation Service management process % adoption Automation type Incident management 69% Heuristic Change management 58% Deterministic Knowledge management 56% Asset management 47% Problem management 44% Service level management 30% Configuration management 29% Request fulfillment 28% Service catalog management 27% Information security management 21% Access management Release and deployment management 20% Event management 15% Business relationship management 12% NA Capacity management Service continuity management 11% Availability management 10% Service portfolio management 7% Financial management 6% Supplier management 5% Strategy management for services 4% Transition planning and support

Some automation vendors Deterministic automation Too many to list. Among them: WLA: ASCI, Automic, BMC, CA, Cisco, IBM, Redwood, Stonebranch. RBA: BMC, CA, IBM, and HP Many emerging players: Blue Prism, etc. Heuristic automation Advanced analytics: Automic, BMC, CA, HP, IBM, IPSoft, Prelert, and Splunk Use of AI: Digitate (Tata Consulting Services) Ignio

Automate before it’s too late! Operability and automation will be the key words in the future data center: IT uses too many resources to accomplish routine tasks that should be automated. Think of IT management in terms of industrial disciplines. Innovate by introducing an industrial approach to IT operations. Align IT with business objectives by first providing the ability to manage the “production line.” Define management solutions strategies in line with this prime objective.

Automate before it’s too late! Use automation as a way to revamp an existing production line. Automation provides reliability, repeatability, and predictability to critical process execution. Automation improves productivity by abstracting complexity and reducing waste. It embodies the "lean" industrial concept. Leverage automation in the delivery of new apps and services. Automation increases speed, consistency and predictability when provisioning and deploying new business IT solutions.

Jean-Pierre Garbani +1 617.613.6000 jpgarbani@forrester.com