The Roadmap to Becoming a Top Performing Organization in Managing IT Operations
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The Digital Enterprise Journal's research, based on insights from over 800 organizations, identifies key practices that top-performing organizations use to enhance their IT operations, focusing on strategy, process, organization, and technology. The study reveals significant challenges faced by organizations in managing IT performance, with top performers demonstrating a significantly better ability to detect and resolve performance issues. Recommendations emphasize the importance of data contextualization, real-time visibility, proactive management, and automation to close the performance gap with top-performing entities.
The Roadmap to Becoming a Top Performing Organization in Managing IT Operations
- 1. The key findings of Digital Enterprise Journal's research study based on insights from more than 800 organizations. The final study will be published in August of 2019 The Roadmap to Becoming a Top Performing Organization in Managing IT Operations Research study – key findings Bojan Simic, President and Chief Analyst Digital Enterprise Journal
- 2. Key Objectives Identify and leverage best practices 1 Take a holistic approach to IT Operations 2 Help create a business case3 Identify measurable benefits that organizations can expect from applying best practices Provide actionable recommendations to end- users by identifying and leveraging practices of top performing organizations Define a performance improvement roadmap by using the approach that includes 4 key areas – strategy, process, organization and technology Copyright © 2019 Digital Enterprise Journal
- 3. Market Drivers Key market dynamics driving organizations to modernize their IT Operations strategies and capabilities Need to launch new applications faster Volume and velocity of data and events to be processed Deployments of new types of architectures and infrastructures 58% 51% 43% 41% Re-defined their IT Operations strategies over the last 18 months 32 % Deployments of container based architecture 46% Deployments of Cloud services 65% 55% Higher customer expectations for experience Need to create a business value from technology deployments Copyright © 2019 Digital Enterprise Journal
- 4. Key Challenges 64%Reported inability to prevent performance issues to be the key challenge for IT Operations 52% Lack of capabilities for real-time management 61% Time spent on identifying the root cause 48% Scalability of management solutions 54% Lack of visibility into user experience 46% Management and performance of APIs 61% Lack of actionable context for monitoring data 40% Learning curve for IT Operations staff 52% Inefficient process for analyzing log data 59% Inability to correlate data from different domains Alert and event “noise” 73%Organizations are reporting, on average, a 61% success rate in preventing performance issues before users are impacted which is only a 6% improvement since 2018. Copyright © 2019 Digital Enterprise Journal
- 5. 36% Reported that DevOps is taking a lead role in some traditional IT Operations tasks 39% Increase in LoB becoming a part of the evaluation process for IT Ops solutions over the last 18 months. 34% Of outages are directly impacting revenue 41% Reported that automating IT Operations tasks is no longer optional 71% Increase of revenue loss per 1 hour of downtime over the last 18 months 18x More data collected from monitoring container based vs. traditional environments 35% Of incidents have 6 or more FTEs involved 2.7x Increase in amount of alerts and events to be processed over the last 2 years By the Numbers Copyright © 2019 Digital Enterprise Journal
- 6. Maturity Framework DEJ identified a class of top performing organizations (TPO) which represents the top 20% of the survey pool.
- 7. 1 TPO class is defined with the goal to identify practices of these organizations that allow them to outperform their peers 2 To provide recommendations to "all other" organizations, DEJ identified TPOs capabilities that have the strongest impact on their performance 3 All key TPO capabilities are grouped in 4 categories - Strategy, Process, Organization and Technology DEJ's research shows no correlation between companies' sizes, industry sectors or geographical location and their representation in the TPO class Top Performing Organizations (20%) All others Percent of performance issues that are proactively detected 79% 39% Average Mean Time to Resolution (MTTR) per incident 38 minutes 224 minutes (3.7 hours) Percent of IT budgets available for growth and innovation 51% 26% Definition of Top Performing Organizations (TPO) Copyright © 2019 Digital Enterprise Journal
- 8. Our analysis is centered around highlighting capabilities that are enabling these organizations to outperform their peers and industry averages. These capabilities are grouped in 4 categories – Strategy, Process, Organization and Technology Key Attributes of Top Performing Organizations
- 9. More likely to have customer experience as a central focal point of IT More likely to modify their strategy to meet specific requirements of monitoring Cloud and microservices More likely to put context of data in the core of their IT Operations strategy More likely to take the approach based on advanced analytics, automation and data and knowledge management concepts More likely to have a well defined API management strategy66% Less likely to experience revenue impacting performance incidents 4.2x More users managed per IT FTE as compared to all others 2.2x 78% 62% 75% 2.6x Attributes of TPOs - Strategy As a result of having these strategies, TPOs are more likely to report measurable benefits Copyright © 2019 Digital Enterprise Journal
- 10. More likely to correlate IT performance and business metrics More likely to have the ability to predict performance incidents More likely to have a process for prioritizing IT incidents More likely to be selecting monitoring solutions by predicting future amounts of data to be processed More likely to be deploying testing processes that measure the impact on user experience More likely to automate processes for launching new technologies and services 63% More likely to meet SLAs as compared to all others 5.1x Faster new application releases as compared to all others 68% 2.4x 61% 84% 63% 59% Attributes of TPOs - Process As a result of having these processes in place, TPOs are more likely to report measurable benefits Copyright © 2019 Digital Enterprise Journal
- 11. More likely to be ensuring that multiple job roles and departments gain value from IT data More likely to educate IT staff on AIOps related skills More likely to have enterprise wide initiative to evaluate technologies based on the ability to contribute to business outcomes More likely to leverage a single platform for IT, Dev, Security and IoT Ops More likely to establish formal policies and channels to enable DevOps initiatives 58% Less trouble tickets issued as compared to all others 69% Faster reaction to unplanned IT events as compared to all others 2.6x 52% 2.3x 1.7x 74% Attributes of TPOs - Organization As a result of these practices, TPOs are more likely to report measurable benefits Copyright © 2019 Digital Enterprise Journal
- 12. More likely to have capabilities for real-time analysis of streaming data More likely to have the ability to monitor user experience at the point of interaction with application More likely to have capabilities for automated remediation of performance issues More likely to have capabilities for automated discovery of containers and dependencies for microservices More likely to have an automated process for turning alerts into actionable events More likely to have a notification system that is based on context-driven automation 51% Fewer incidents escalated as compared to all others 2x Average improvement in relevancy of alarms as compared to all others 74% 2.2x 66% 2.5x 52% 2.1x Attributes of TPOs – Technology (1/2) As a result of having these capabilities, TPOs are more likely to report measurable benefits Copyright © 2019 Digital Enterprise Journal
- 13. More likely to have capabilities for unified analysis across IT management tools stack More likely to have the ability to monitor the impact of API performance on user experience More likely to be leveraging anomaly detection capabilities for IT Operations More likely to be using a single platform for managing performance of on-premise and Cloud services More likely to have capabilities for automated root cause analysis More likely to have capabilities for analyzing historical and real-time data together 77% 65% 59% 88% 2.3x 52% 69% More likely to reduce operating cost for IT Operations 2.6x Higher reduction in Mean Time to Detect (MTTD) per incident as compared to all others Attributes of TPOs – Technology (2/2) As a result of having these capabilities, TPOs are more likely to report measurable benefits Copyright © 2019 Digital Enterprise Journal
- 14. Summary of actions that organizations should be taking to improve the performance and cost of non acting Key Takeaways
- 15. DEJ's research shows that the performance gap between TPO class and all other organizations is not only wide, but it is trending to be wider each year. To start closing that gap, organizations should ensure that the following 6 areas are a part of their IT Operations strategies. Putting data in a context that is actionable, relevant and aligned with business goals is a key step in closing the performance gap with TPO class 1 Ability to scale up - for both present and future - should be one of the key selection criteria when selecting IT Operations solutions 2 Real-time visibility and taking a proactive approach for managing IT Operations are key prerequisites for achieving TPO performance levels 3 Organizations have to change their approach for managing IT Operations to support new technologies, infrastructure types and software architectures 4 Automation has become one of the key components of IT Operations strategy, but organizations have to make educated decisions about which processes they want to automate 5 Monitoring the performance of IT services from the perspective of the end-user does not have an alternative 6 The cost of non acting is significantly increasing every year and organizations need to have more urgency when it comes to improving IT Operations capabilities Creating a business advantage is one of the key drivers for top performing organizations to modernize their IT Operations practices Key Takeaways Copyright © 2019 Digital Enterprise Journal
- 16. $2,129,000 Average estimated revenue loss, per month, due to performance related slowdowns in application release times $10,700 Average IT labor cost per performance incident Analysis includes companies with an average revenue size of $227 million USD $126,000 Average revenue lost due to 1 hour of downtime. The Cost of Not Acting Copyright © 2019 Digital Enterprise Journal
- 17. Technology as a Competitive Advantage Research- analyst-media fusion Business impact analysis Digital Transformation Journey Situational analysis Ongoing data collection Beyond technology “buckets” About DEJ Copyright © 2019 Digital Enterprise Journal
- 18. Digital Enterprise Journal Digital Enterprise Journal (DEJ) brings together the most advanced concepts from analyst research and media industries. Our publications are driven by ongoing survey research and their coverage spans across all major business-to-business technologies. DEJ operates as a subsidiary of Cognanta Inc. Cognanta is a research firm dedicated to helping business professionals understand the impact of technology deployments on their key goals. Visit us at dej.cognanta.com