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©Copyright2004ConcordCommunications,Inc.BusinessServiceManagementOptimizingITServicestoDriveBusinessSuccessMap.Measure.Manage.TomHayesProductMarketingConcordCommunications,Inc.600NickersonRoadMarlboro,MA01752800.851.8725concord.comciMap.Measure.Manage.TMCompaniesgenerateprofitablerevenueasaresultofexecutingbusinessprocesses.Overthelastfewdecades,businessprocesseshavebecomemoreandmoreautomat-ed,requiringmoreandmoreITservices.Inaddition,newITtechnologieshaveenablednewbusinessprocessesthatcouldn’texistbefore.TheInternet,andWebtechnologyaregreatexamples.Thisbusinessprocessautomationhasresultedintremendousincreasesinproductivityandincreasedprofitability,tighteningthelinkbetweenthebusinessandtheITservicesthatsupportit.Asaresult,theavailabilityandperformancefeaturesofthebusinessservicehavebecomemorecritical.BusinessServiceManagement(BSM)linksITservicestothebusinessneeds,minimizingrisktothebusinessbyproactivelymanagingthetechnologythattheservicesdependuponandbydetectingproblemsbeforetheyimpactendusers.Whathappenswhenpoorperformanceaffectsbusiness?Theresultsareoftenincreasedcostsorlostrevenue.Let’sconsiderafewreal-lifeexamples.■Abankthathascometodependonitscustomerself-serviceoptionsexperiencesresponsedegradationinitsInternetbankingapplication,causingcustomerstoreverttothecallcenterforfulfillment.Acallcenterinquirycoststhecompany$2.50,whileanonlineinquirycoststhebusiness$.25.With1.5millionusers,and1%requiringcallcentersupport,thisbankseesanannualcostincreaseof$1.1M.1■Anautodealerrequiresa30-secondresponseonloanapprovalsorloses40%ofthebusinesstocompetitors.At$125averageearningsperloanand17,000lostloanaccountsayear,thecompanyloses$2.1Mannualizedearnings.1■Amediumtolarge-sizecallcenterestimatesthatevery6-secondincreaseincallhandlingtimecoststhem$330,000inrevenue.2BSMdirectlymonitorsthehealthoftheservicesthatdriveyourbusinessandgeneraterevenue.Everybusinesshasafewkeyservicesthatdrivethemajorityofrevenue.Iftheseservicesarerunningwell,thenemployeescandotheirjobandcustomersarehappy.Theseservicesmaybecomprisedofseveralapplicationsthatrunondistributedserversanddatabases,which,inturn,areconnectedbynumerousnet-workdevices.Whentheseservicesarenotrunningwell,thecomplexunderpinningsareexposedandfindingthesourceoftheproblemcanbecome“hitormiss.”Havingallthepiecesrunningwellisimportantbecauseitaffectsthemostimportantaspectofall–theuserexperience–andtheuserexperiencedrivesprofitablerevenue.Concord’sapproachtosuccessfulBSMisthree-fold—map,measure,andmanage.Mappingstartsatthetopofthehierarchy,withthebusinessservice,suchascashmanagementorcallcenters,andcon-sistsofmodelingthebusinessservicetounderstandthekeyperformanceindicators,mappingtheITservicestothebusinessservice,andvisualizingtheresultsthroughConcord’sBusinessServiceConsole.Measuringthebusinessserviceintermsoftheenduserexperience—thecriticaljunctionwherebusinessservicesandITservicesintersect—isthesecondstep.Synthetictest-ing(activetesting)andactualmeasurementofusers’experiences(observationaltesting)areimportantpiecesofapplicationperformancemanagement,acomponentofBSMthatmeasurestheall-importantuserexperience.Managingthebusinessservicerequiresbroad-basedman-agementtoolsandmanagementintegrationforsystems,applications,andnetworks,allkeycomponentsofBSM.Anintegratedfaultandperformancemanagementsolutionletsacompanymaximizeuptimeandplancapacitytomaintainthebusinessserviceavailabilityandperformancelevel.ConcordCommunications’eHealth®Suiteprovidesthetotalpicture,integratingthemanagementofapplications,systemsandnetworksbyprovidingaconsolidated,business-drivenviewofyourend-to-endITinfrastructure.BSM,viewedthroughConcord’sBusinessServiceConsole(BSC),putsyouinthedriver’sseat.BusinessServiceManagement©2004ConcordCommunications,Inc.1ExecutiveSummary1Source:TowerGroup,20032Source:ConcordCommunicationscustomer“Businessperspectivemanagementproductsofferpowerfulcapabilitiestotranslatedatafromtraditionalinfrastructureandapplicationmanagementtoolsintobusinesslevelrepresentations.”3Usingmanagementtoolstoviewthebusinessservice,ratherthantheinfrastructureandapplicationcomponents,helpscompaniesreducecostsandincreaserevenuebymaintainingtheavailabilityandperformanceofbusinessservices.ThebenefitsofBSMinclude:■MaintainingbusinessservicedeliverybyquicklyidentifyingandcorrectingITserviceproblems■Creatingahighlevelofcustomerserviceandsatisfaction.■Sustainingthecompany’srevenuestream.SomesecondarybenefitsarealsoabyproductofBSM:■Creatingaunifiedbusinessfocusforthewholecompany—management,businessunits,andtheITstaff■ImprovingcommunicationbetweentheITdepartmentandthebusinessunits■IncreasingthevalueoftheITresourceBusinessServiceManagement2©2004ConcordCommunications,Inc.TheBenefitsofBusinessServiceManagement3“BusinessPerspectiveManagementViews,”Delta2522,METAGroup,GlennO’Donnell,8October2003.ConcordisaleaderintheBusinessServiceManagementmarket.Concord’seHealth®Suiteprovidesthemapping,measuring,andmanagingnecessarytooptimizeITservicestodrivebusinesssuccess.MapITServicestoBusinessNeedsMappingstartsatthebusinessserviceandw