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Digital Product Operating Model - Recorded Nov 22nd 2022

Import · Nov 23, 2022 · video

recording all right welcome everybody to our Digital Services Forum bi-weekly call today we're going to talk about digital product operating models and go ahead and get started so if anybody's on for today for the first time always go over this in the beginning please put your name in the comments if you're on the live if you're on the live session some people be watching this on video if you are watching this on video when you go back to the comments on the bottom you'll see in the video I'll link you to the content for these presentations a lot of times what members take away from these calls is they're able to take this content that we're sharing and then use it internally so again if you aren't for the first time just post your name in the comments and where you're from and we'd like to welcome you to the group if you do want to use our shared instance we won't be using it today but we often use our shared instance and demonstrations and I give everybody admin on that instance so there's about 125 of us on that instance and the reason we do it there is if we show something on that instance we know everybody can get to it and they could pull down any configurations or anything that they see on there that might be useful that's another way that we share the another way we share is on our community and the community is also linked inside of your invites to this session and you can join our community and you'll get notified when new things are on there and that's why we put all the content that we have so anything we have to share whether it's code or presentations will be linked in that Community now for those of you that have been on a while it used to be on our Google Drive and then also what we've been doing is taking all these recordings and people often ask me for the recordings now we have them all contained in one big playlist so that's a link to the playlist that will give you all of our videos all of our recordings from all of our sessions at least since the beginning of 2022. so all of those are in one spot for you makes it easy to get to so the reason we brought this group together right it was really to talk about digital transformation that's the big buzzword that everybody's talking about these days but how do you how do you actually do that what are the processes around doing that what are the ways that we can make that done consistently and a lot of people on here well everybody on here is servicenow customers so how do you do that with servicenow so our mission is really to enable the members to drive their digital transformations in their organizations and a lot of the ways that we do this is by sharing work sharing some of the presentations we have the white papers the code anything we can share that'll make that Journey a little bit easier for you we we like to get out in this community and bring it together so whether it's customers presenting or Partners presenting or servicenow employees presenting that's we we try to share as much of that as possible it's the architecture team so I'm on the architecture team and there's three other people on the team that that put all the content together for you guys and then we do meet bi-weekly and we are going to keep that up across next year foreign agenda so we're going to start out and dance on for the first time and dance the managing managing director at ccnc Europe and Dan's going to talk through some of the problem statements around digital products so why are the digital products here and then he's going to talk about a little bit about how things changed from digital products to Digital Services and then talk a little bit about digital product management and jump around based on how you guys got them right as we allow comments and things like that I want to come in and give the servicenow perspective on that and where we are with servicenow talk about the cmdb linkages give some examples actually one example I'm going to really focus on and then I'm going to talk a little bit about getting started the people that you need the processes and the technology and then at the end we'll save a little bit of time just to talk about our content for our next sessions and any questions before we get started all right with that I think I want to pass sharing over to Dan our guest speaker for today and then you should be able to see share at the top of your screen and just take it from me if you say new share and share screen I am sharing I think it's almost there it is all right all yours okay hi and welcome my name is Dan Warfield and uh I'm not a servicenow customer or partner or a member but I actually do a lot of work with servicenow and the architecture space and different kinds of training and I've been pretty closely connected with some of the people in that space for a few years so you don't really have conceptual Partners you only have implementation partners and things like that so I'm not any of those what I'm going to talk about today is digital products and digital product management and particularly in the context of the it through it standard which is a standard of the open Group I've been deeply involved in that for gosh about six or seven years now since I was first introduced to it when I was working at Walmart in Bentonville uh and I was introduced to it by Mark bodman who some of you may know who was not working for service now then but he has been for the last two years and recently focused a lot on csdn so Mark and I have been doing this it for it stuff for a while one of the things that I was asked to bring into the frame is that um the structure of the different products that's that are available on the servicenow platform and of the platform itself and the structure of the way the csdm is evolving is is closely tied to it for it they're not exactly the same but they are are definitely half siblings if you like and that's partly because we're all we're on the same Mission which is about moving from Project based IG management and ID investment in particular to product based models and I believe and that's I'll tell you a little bit about why that that is essential if you want to have a scalable digital transformation and the itvi standard is not the only way to do that but it is a robust model that has been proven as a way of understanding how to manage digital products and also how to automate the digital Factory we'll talk a little bit about that button so this is a little bit about me just a little bit I left Walmart uh six years ago and went back to having a small company which is part of a a group of Enterprise architecture Boutique consultancies based in Sydney with offices in London and India and Seattle but I've worked for some big companies as you can see in the past both as a consumer and as a seller of big systems and very much in the space of strategy and architecture and trying to understand how should we spend the money and in that space this is one of my favorite things I've learned this is something I picked up at a Forester conference several years ago uh one of the architecture presentations and I thought this is fantastic and a lot of what I want to talk about keys off of this understanding which is that nit and in my experience in it a lot of us tactical people really don't understand the business aspects of what we're doing we do not understand the perspectives of the people who are spending the money to have the I.T and one thing I often challenged people with who reported to me or in other situations is can you tell me what you're doing that justifies the money that's going into your paycheck every month because somebody's writing your check every month what is it that you do that is worth more than that to them if you can't answer the question then this principle starts right there with your own salary and you may be in danger but it also applies very much to understanding how we invest in I.T and how we get out of this zero-sum trap that I've seen all my life in it Management in which uh the traditional way of doing it budgeting has been you have a great big number that is maybe hundreds of millions or billions of dollars and often they'll give you a three percent more than last year that kind of thing and we really don't know where the money's going exactly but it gets allocated out to the different teams and the stack here represents the way that this usually works in a big company you may have a very large I.T spend but most of that is already allocated before it gets out of the gate to depreciation to keep the lights on business as usual operational things to maintenance fees that you have to pay and also to what I call done deals on this chart so for example at Walmart um almost half of the I.T budget when I was there was allocated to uh dropping new it into new Walmart stores and there were not that money was not up for grabs for other stuff that's a done deal that's that's already there so if you look at the whole I.T spend uh and say well how much of those actually left for us to fight about it's small it's probably less than five percent so uh what that means for the CIO is that that number that allocation is entirely treated as a cost and the job of the CIO is to is to supervise the the fist fight about who gets that little green stripe and also to always look for ways to save money and spend less because you can't have more because everything about it is just a cost a money sink it's a money pit and that's the way most of the business people will look at it as long as you're doing that and you can't explain what you're doing in terms of value to the business that they recognize with that metric of dollars then uh then you're stuck in this in this job where your main job is to get beat up about money all the time and we can't actually do i t right if we take that approach I've also worked in software companies that were big I.T companies that made I.T things products and uh there's a very different approach there a different model different way of thinking about what we're doing with creating products and to the extent that we can move into that way of thinking and business we will get out of the zero-sum game and we'll we can make the concept of the I.T budget go away if we take it far enough so the way that you do that is you productize everything you do almost everything that you deliver from it can be managed as a product that has a price that has a proposition that has an offer for consumers and for which you are measuring the cost in some way and getting getting the money back to pay for the cost of providing product in some way a lot of companies don't want to do that for things that they consider to be internal uh because well we're going to spend the money anyway I I think that's a fallacy because every dollar that is being paid for anything you do in it in your company is coming from outside and somebody in the company who is engaged with outside is is giving you some of their money to do it so there's never not a cash customer and if we can stop thinking that there is a lot that we do that doesn't have a cash customer that will help us to manage it a lot better so if we can create our digital product way of working then the digital product manager is going to be just another product manager in the company competing for funding not from the it budget but from the corporate budget I've got a product idea it's really good I can't I can't keep them they fly out the door everybody wants them I have a model that we all agree on on whether that is actually profitable to the company and if we do agree then we can find more money for that because that's a net carrying to the bottom line that's the direction you want to take a lot of the things that support that product uh traditionally are all of our keep the lights on stuff can be productized in the same way so if I want to go out and buy an Amazon web server development server um that has a price I configure it online I say what I want to push the button I get a bill every month for that you can do that internally and anybody who says that's too hard and nobody knows how to do that you need to just show them Amazon web services it's not too hard people do know how to do that and when we start doing that in IG I believe that will get us out of this job of being a cost center where your job is just to get beat up so that's that's been a big motivator for a lot of the work that I've been doing for the last few years at the bottom I still left a little gray bar because some of the things that we do centrally can't be um uh turned into products and you can't give people permission to strip everything out of the data center except the one application that forces you to have a Mainframe but as we go to Cloud that problem starts to go away too so ultimately as you incrementally approach this this state you should be able to move well away from the traditional way of looking at I.T investment as throwing money down a hole the possibilities that opens are endless there are some key things that you need to do to be able to go in that direction one thing is you have to start thinking in terms of uh what do I think of as income and what do I think of as cost how do I measure it and everyone has to agree that that's legitimate so if I say that the service desk product has income in terms of chargeback which may be uh I charge you a dollar to call me it may be I charge your entire department twenty thousand dollars a year but it's a number that we agree that they agree is a fair price and we may lots of things we can do with that product in terms of configuration service levels and all of that but we have a pricing agreement foreign I spent several years at Walmart being asked to look after strategy for infrastructure and Security in I.T and and I found that especially infrastructure people have a hard time with this concept so just state it very clearly again price has nothing to do with cost it doesn't matter what it costs the price is what someone will pay everybody in marketing understands that perfectly and everybody who has got a two for one offer at the grocery store has seen that in action but one thing that people start out by doing which I'll warn you against is saying well we'll just pass the cost through to you and be transparent if you want to be transparent add 15 percent it isn't free for you to provide the service people often lose sight of that you need to capture all of your costs in your financial model I've given a few examples of the main costs that you need to think about but the important thing is understand all the costs and allocate them correctly now if uh if you have one line and your expense budget called Unix Ops and everybody who has a Unix thing that uses Unix compute is a customer of Unix Ops but you have no idea how to allocate that among different products and services then that's part of your journey is to figure that out but it can be figured out not overnight but not always but I promise you this is a journey that people have made and they have measured the outcome of good outcomes and they measured in dollars so I'm going pretty quickly through this you can read these slides later because we have not a lot of time and some things to cover um they please ask questions if you have questions um so as part of the concept of a digital product the owner of the digital product is not just software it is an entire thing that you are offering so it has uh customers it has distribution mechanisms it has service and support it has explicit and implicit warranties and Promises to people both in terms of things like service levels plus especially in some contexts where your customers are external there are lots of implied or legally required elements to your contract with that consumer and you have to take those into account even if they're not written down so for example most jurisdictions have some kind of rule that says if product is broken you can get your money back you need to anticipate that as part of your planning even though even though you're not making That explicit in your contract I put a few metrics here that you might use to look at these different parts of the work that we do over the life cycle of the product these are the kinds of things you can measure you do planning the product owner product manager will do planning and they need to have a solid Financial understanding of how that product exists as a financial thing in the company and as I mentioned before we'll mention again not all of the numbers have to be exactly factual the important thing is that they're agreed and as I mentioned to John yesterday in a meeting we had about this that if you go far along for it management at some point you come to an amazing meeting if you're coming to the technical side where you see a couple of big big business people talking about how they're okay the cost of something between them and the discussion is not about oh you're charging me too much I don't want to pay that much because I know that those widgets are two dollars and that's not you don't talk about that they have in the meeting they don't have time for that they say well here's here's 10 million dollars a year that we have to pay we have to pay how will we divide that up and they'll sit there and say well I think it's fair that you take 60 and I'll take 40 and they evaluate that based on not some cost idea but they've evaluate it based on is it fair and what will that do to their bottom line in their operating unit will they still get their bonus if they do that is the question they're interested in not how much does one more flip-flop cost so very important to have that correct financial model and planning when you're doing development and I just call this devops metrics because that's the real world the Dora metrics are really good metrics to to use to explain what you're doing these are all about understanding what's going on in your factory um there's one I put here there are others but that is particularly important and as a test of how well you're going to be able to scale and how what your quality will be is can you show me the traceability from your requirement to your test case does every test case point to a requirement does every requirement have a test case does every code module in your in your Source Library point to a requirement and vice versa if you can't do that you've got some problem problems of quality that you need to address when we get into delivery if we're talking about a digital Factory that is really delivering digital products it's very important that we know how to scale up and automate what we're doing and a metric I'm suggesting for that for example is what percent of all RIT fulfillment and provisioning again measured in dollars not in numbers of something what percent of that is fully automated for offering things to people a successful self-service consumption and automated fulfillment that's a kind of a Target you can put for yourself again all of these things are incremental you don't have to turn the light on all of a sudden you can turn it up it just keeps getting better one thing people care about the other thing I put in delivery metrics is uh money wasted on software licenses that you're not using and angry software vendors who discover that you are using software licenses that you don't actually own and if you carefully manage how you do the Fulfillment and how you deal with the consumption of your service that problem really ought to go away it's gone and and it's not gone in most places yet finally an operation and support if we're thinking about the digital product over its life cycle we want to measure things like how many of our if we're successful in pushing a digital product in instead of just a bunch of compute platforms and disk drives and things then our cmdb should be populated with discoverable products what percentage of the CIS in your cmdb actually can easily recognized and are are packaged as oh that's that's the general ledger system when you start being able to do that not just for not just for stuff you bought because you can buy services for that but for things you built things you disfigured hey Dan I got a question here um is the difference on these metrics that you're showing um Mitch was saying can you talk about differentiating between a product and a service in terms for differences and interdependencies and maybe even roles um these the teams is he says the terms and roles often get conflated EG product owner versus product manager versus service owner or service manager all right I'm going to talk about that a little bit later but I I will say this that the in the it4it Forum uh in the current new release of it4it we call this Central thing that we're managing the digital product portfolio in the previous release we called it the service portfolio what we actually meant by that was exactly the same and we have a problem with these kinds of things where we have overloaded terms so we want to say it's an application or a service or a product all of them are sort of correct all of them are wrong and all of them already mean other things so uh a better approach to say what's the difference I think if you understand what we're presenting here is to try to understand what we're talking about that we've given this label and um and make your draw your own conclusions about that generally the way that we think about it in the it4it space is a digital product provides business value that is delivered as a service that's one way to talk about it and I think that maybe fairly consistent with the csdm dew point um the thing about product owners and product managers service owners that the the issue there for me is that um the digital product is a business thing it's not a technology thing so if you say I'm a product owner or a product manager and what you actually are is the manager of a team of software Developers and that's what you do then you're probably not the product manager and you probably don't have one um and and that's a that's a debate that's that's in the whole IT industry that's unclear so there's there's an entire uh world of websites and blogs out there about product being a product manager that are entirely about managing software teams and there's a whole other Universe of things about being a product manager that are not actually about I.T necessarily at all they're about how do I manage a product so I want to I've got a new idea and I want to take it to some kind of market and sell it to some people I can Define and it's going to cost something to deliver and and there will be some kind of a price that people will be willing to pay it will cost something to build there will be all those considerations are uh generic product management considerations and whether your product is digital or not is just a detail or has been but now everything is digital my car is I got an email from a car dealer on my way to the office saying your car your coolant is low would you like to bring it in and have us take a look so my car send a message to the factory to the to this provider that's a digital product my car is a digital product it has software in it that's running all the time it's updated over the Internet it communicates back with the Mercedes-Benz company and talks to them about my car there are three times more lines of code in that car than there are in this computer that I'm using if if Windows 11 is a digital product so is a Mercedes and uh that's that's something we need to get our heads around if we want to talk about this stuff um so uh but we will talk more about I think that will become clearer as we get a little bit deeper into this I'm I am rushing because I want to give John some time to talk to um so when we talk about metrics and measuring and things like that I found this slide in a Gartner current Gartner um uh piece that's out on the internet so you didn't have to pay for it to see this but this perfectly illustrates the point of what we mean about metrics that can be measured in dollars so I've got in this example there is some kind of a of a software system or I.T system that supports the loan organization in the bank the business outcome that the bank is interested in is profitability of the loan portfolio and you can deconstruct that and and to and decompose that into things that go down the stack until you get to uh sort of low level things that are still recognizable to that loan manager unscheduled outage of the loan application well they're interested in that they are not interested in apology operational metrics I don't care so if that's the only thing you're measuring and the business people are beating you up all the time saying why am I paying you anything that's part of the reason another point on this slide I should I I want to mention because it stands out in my experiences the number of people who and big companies uh agree the service level agreement based on the deal that they're able to make with with some second level support company foreign and they say well I've got this much money I'm a cost center so it's all the money I've got to hire a second level support company to do that and um and so how much SLA can I buy for that and that becomes the published service level for that I've seen that and I asked somebody who was in charge of quite a few Mission you know critical things I said um tell me about the process you used to with the business to come to these numbers he said oh I've never talked to them foreign Center if that's your approach let me just show you briefly uh I'm available to talk about this more uh in in another Forum but in it for it we describe the digital product in this way so this is the structure of it and the whole point of the digital product is to produce an outcome so the outcome is going to be um a value thing that we've described you define the product and that can be all kinds of things the way that we do it is we present an offer to the consumer now if the consumer is uh is me buying a book from Amazon then the service offer is a list of books that I might want to buy if the consumer is another digital product that needs to consume some data that my assistant has on offer then this offer might be presented in the form of an API um documented API and some context that makes it consumable so there are lots of different ways to do that mostly we'd like to talk about the humans because we seem to do that worst the service offer is short and explains the things about the service or the product that are visible to the consumer but we also have to design a system that has everything that we need all the technology resources that are necessary to support that and John's going to talk about how that plays out in a csdm model the system is described and and has to be documented as part of the design of the product for it to work and that enables the service interactions the service interactions are also explicit and those are the kinds of things that we can do that will result in this outcome so understanding all of this is the job of the business side of the product ownership you can understand all of this without knowing very much about how the technology actually works there's another role in this space which is to do the actual technical design to present this but that is those may be two skills in a team of any size they're not going to be the same for us so that's a simple view slightly more complex view of the digital product instance is here where the consumer with a human interface um with some methods and other digital products are also have different ways of interacting and the system itself that we need to supply the product probably almost certainly consumes other digital products so for example if I have a general ledger system running on sap that digital product is probably the general ledger module Maybe modularity depends on how would you like to do it that's an architectural issue but pretty certainly sap platform is a different digital product that is part of this picture it's not part of this system IT supplies that system with support just as the servicenow platform supplies service desk with uh with the with the support that it needs to work and this can get really complicated and there are lots of different ways to structure that so this is these pictures you from the new it4it version three and Mark and I wrote a paper about digital products that was published by the open group last year which then became part of the new standard and this is just to point out I mean one important thing that this points out is you can't manage your product portfolio on a bunch of spreadsheets and PowerPoint slides you need a database that is set up to record this kind of information in these kinds of relationships which John can tell you about I think um so this is an example from the it4it training that we do and how this works this is pretty simple but and this is an imaginary employee expense management system here it is in this orange circle and here's Hans who is the business owner of that system Hans has a contract and everything about the idea of having a product is that there's a provider and a consumer and they have some kind of a contractual relationship and that may be 200 pages of text written by lawyers it may be a handshake but there is some kind of a contract Hans is only interested in this software and but inside this digital product system there's a couple of uh services that it's not actually supplying itself so in this example in order to instantiate this this system I also have to instantiate this Backup Service which has its couple of digital products one is the backup server and and then there's two there's two products there there's two contracts they're in the hosting service I've got a hosting seat I've got a a thing here that has an operating system license but that's all actually sitting on a hyper-v server which is another subsidiary product and this is a simplified example of the kind of thing you need to be able to represent in the in the digital product world I'm just going to jump over that slide because it takes too long as we as we look at ways of dividing up the work and roles uh and you asked about product manager the product manager needs to understand the portfolio of similar things and one of the main ways of organizing that is who's going to use it visit customers that are external is it Market facing and the way that you manage those is probably different from internal customers for a number of reasons that the market facing one feels less competitive than the internal facing one but if you believe that too strongly you'll then be one of those people complaining about Shadow I.T all the time because the internal facing one is only something you can relax on if there's no way for them to do it some other way we also have what are called foundational products that are never directly consumed they're always parts of something and as we evolved this thinking we've evolved it to think about actually there's probably a Fourth Kind which is uh with this is Mark's box here which he calls Factory automation which is um the existence of the factory itself because we need a factory we need a a context in which to do the work of managing the planning the building the delivering the supporting of these of these products and that's what um I teach RIT is about so uh this is the it for it digital Factory if you like it has seven value streams that describe work that we do and it's it is heavy with feedback loops and it all is ultimately focused on this digital product that is owned by a product owner product manager I think you can define those precisely in an organization but generically there is no standard definition of that we've tried not to Define it in our standard that becomes the source for the design which happens during the building which is this and that is the source for the product release which has to include all the information and this model not just about um it's not just a bunch of build packages it's everything you need to know this is part of the devops way of looking at the world if I think I've created a product release that nobody should have to do a whole lot more work with that to create an instance of it besides push a button if an infrastructure team has to spend three months figuring out how to install it that's not interesting as we drill into this model what we're sharing here is a template for full automation of the life cycle each one of these blue boxes represents a an essential function in the factory and each one of the circles represents data that you really need to be managing collecting managing and automating as much as you can and black lines represent system of record integration so um if I if I make my way around this uh picture here's my requirement data it is linked to policy data it is linked to test cases and it is linked to backlog items and the uh in the product which is a different kind of backlog item than the Strategic Epic portfolio backlog item data assistant of record Integrations are very important for the factory if there's any point in which information flowing between two of these functions is manual or if everybody does it in a different way your factory will not scale and one mistake that people make when they go down this path is they Empower their agile teams or their safety teams or whatever their teams are to invent their own tool chain and invent their own ways of working and there are some pretty clear boundaries that are understood by people who have been down that path uh where you can allow people to make their own choices for example what language did I write the code in that can be about your product how do we how do we run our CI CD pipeline if every team has their own way of doing that you will not have a scalable Factory so there's a lot there to think about organizations that are trying to understand where they are in the journey we can use it for it is really good as a template for helping people understand where are the real gaps so in this example I would say to you so you've got demands coming into your I.T system um tell me about products that you used you can you tell me about software you're using for that and can you tell me who runs that and who's the budget owner who's process owner who's the budget owner who has the budget for that is it 15 different systems there's an email is it a grown-up demand management system it makes a difference in how well you can automate these things so your process documented or is it just tribal knowledge or is it just an agile and nobody knows what's going on but somehow it happens and as your documentation correct and do you have any experts you can introduce me to and what would happen if one of them went under a bus would you still be working um and and the main thing that really interests me and we did this at Walmart we used this template to understand how to streamline the I.T operation in Walmart and uh as I interviewed every every group in the EIT division it became very clear that most of them were had very dim idea of where the data was coming from that they used to do whatever they did and they often had no idea at all about who was consuming the data they created or whether the data they created was actually needed by somebody later and the biggest takeaway from several months of that was a typical big it organization creates all the data that you need to streamline this and automate it and most of them throw it away after they create it for some immediate purpose which leaves you with a cmdb full of information about servers and wires and boxes I'm not very much about products so what we're trying to get to is an interlocked um an interlocked product Factory and Dan from demand to final deprecation that is actually data and that's that's uh that's all I've got to say about that I'm probably gone over my time a bit for which I apologize I hand it back to you John I'll answer any questions answer any questions if there's time okay I'll take you through a little bit of this and try to tie it back to to what we have on the servicenow side and then if there are any questions go ahead and post in the chat if we don't get to them today we'll go ahead and um and follow up with you afterwards all right thanks a lot Dan really appreciate that I want to take you through now and uh pick up on this part where where Dan talked about so in all these all these portfolios are different products and we've talked about some of these on the previous meeting and what goes into the foundational bucket what goes into the employee bucket and what goes into the market-facing bucket when you look at it for it um Dan showed these and this is where I'm going to actually tie in to the common service data model so the the plan builds deliver and run are the functions that we're supporting in order to to make a product in order to push a product through the factory when it's in the Run State just like my car my car is reporting back to the factory to give it the metric it needs to improve the next car or to say I need more metrics so what we want to do is look at a servicenow process like this that we're all pretty familiar with and I'm going to use that as an example but before we do that I want to look I want to kind of map like if we look at this diagram in it for it and we start to say okay which boxes are in the common service data model you won't find any of them in the common service data model because that's that's a model for what we're pushing through this process the common service data model says okay here here are the services that make up the product and that's what we're going to plan build deliver and run on but if we look at this diagram that we've been sharing this gives you a better idea of how servicenow Maps their data objects to those data objects in that level one data model from it for it so if we look at the top part of this where we're pushing an idea through and demand right these are records that you can actually map one to one and make part of your it for it repository and then as we come down into individual tasks here in epics and enhancements these are more of the elaboration of your requirement and as those demands come in they get vetted against portfolios they also get vetted against budget right they go through a funding Loop up here and then if we go down and we look at the bottom uh the bottom is where we're actually doing our build so during our build we have that requirement that we're pushing through and different artifacts that we collect along the way to have that change committed and whether you're planning or building everything is done against that digital product right that's the idea is to get all your work streams that you have um actually map to that digital product so you can calculate things like cost and effort and then if you look at the middles chunk here right this is our run so our run has our problem tickets our incident tickets and our change tickets now if you look at this there's one big piece missing right so if we go up right and we look at this we have plan build deliver and run now deliver isn't represented on that model because we're not really delivering here this is all the Operational Support for it so if we look at a delivery that gets much more complex because delivery goes more into this model where we're actually looking at all of our pieces in here all right so if you go into delivery we're looking at the beginning who are our people that we're delivering to are they citizens are they customers are they you know what type of people are they and then as we go through there's going to be what engagement layers are we using right so all these things are part of that delivery piece all the way back to the systems of Records uh service now is chunks in between here that can help you deliver depending on who you're delivering to and what you're delivering to them and that's more the delivery piece okay we got now we don't want to go into next is um we look today and I always give this explanation right and the the upper right our organization expresses the need so we have this capability that we need to deliver on so we buy some applications we build some stuff we actually get software up there whether we're building it or buying it we get software up there and then once we get it we get all the pieces we we put them all together in this build domain so how are we assembling those uh those things that we have in that build domain well in order to assemble things and run things and get them to production those people that are building stuff they need to be able to operate that stuff so they need this operations team right this is where they put all the pieces together and then finally at the end right all the way back in the green now our consumers can consume it because we bought the software we configured it or we built some pieces we customized it we integrated it we operationalized it now we're giving it back and so that's the the general gist of what the common service data model is trying to do is push those things through and coordinate the people so whether you like to use these models or not you're doing it all anyway right and that's what I always tell people don't get afraid of this because it's all stuff you do already it's probably in a bunch of emails and spreadsheets but you are doing this somewhere you are buying stuff you are building stuff you are operationalizing stuff and then you are providing that back in some form or another um back to the business now the idea is right to get better at doing that over and over again so the common service data model 4.0 which we're using today does focus on that and then some of you have been watching and I gave a a resource sheet I'll give in the end of this deck where you can go and look at some of the things that are coming in the next common service data model but this is really where we go with the version five and here you'll see that we're we're really looking at products right so instead of the business app that actually becomes a product because you're buying a app from somebody or you're building an app right that you're going to use in the business so that that one that you're buying or building gets revved right it goes through this software development life cycle and the different teams work on it and then they give it to the Ops Team and the Ops Team stand-up systems that run that configured or built or combination of the two they run that system for you so that consumers can then can consume from those systems and get the value that they're after so you'll see a lot of new things on this picture and this is one that Mark shared before so the the products if you're buying one like let's say we buy a product and I'll only give you an example actually let's just go into the example so if you go ahead and you look at ways to make products now I used to be a product manager and my main events as a product manager was every quarter I had to go in front of my Executives and I had to say this is how much money I made with my product when I sold it uh this is I made or missed my number the reason I made or missed my number and then what am I doing to increase the revenue on my product how am I selling more of it right now whether you're a pro a product manager like me or you're a product manager where you're selling VMS internally it's kind of the same thing because you have to get in front of those Executives and say look we're selling we'll be able to provide more VMS from our our VMware uh instead of going to Amazon or we're starting to push more people over to Amazon or Microsoft right so whatever the case is you're still doing the same thing you're reporting to those Executives but at the same time I have to come back and report to my developers right and in between the executives and the developers is the consumers that you're trying to get value from and so if one of the things that we all do in service now these are probably the ones that we're all running already whether we're running them like this or not but you have an asset manager that's there trying to say that I want to manage all of the it assets right so I want to maintain all the records for all the the hardware all the software all the business applications and and take that and put it together right don't think of every servicenow product I have to implement with every feature and every product right but I'm gonna my main job is to keep that Master data record up to date whether that's getting some information from SCCM getting a little information from tenable putting that information together right I'm going to get that most accurate record and everybody's going to come to me for records instead of using their spreadsheets right and I'm going to rationalize all that data from all those different systems so that I have the most up-to-date asset record in the company and then I'm going to serve these different consumers that need that data and so I go into some customers and there's seven to even ten different systems of records for assets so the idea behind me owning this product is that if the Ops team needs asset records so that they can they can put the Assets in the incidents they come to me if the Cyber team needs an asset record so that they can go ahead and say this is the security event on that product they come to me right so that's the idea of this asset manager that's how I'm adding value is I'm stopping all this duplicate work of everybody tracking assets right they come to me I'm the One-Stop shop for assets the same thing with the op Center that we talked about before and Dan mentioned this a little bit so if we're a service desk right I'm this I'm the owner of this service desk product and again I'll go into a lot of organizations and they'll have 30 or 40 service desks every department has their own IT service desk and then they sometimes map to that main service desk right so why is everybody redoing their service desk right why is all these people so if I'm the product manager of a service desk I'm providing that to the main it organization but I'm also able to extend that and say look I can provide this service desk product to you to you to you right so that we're not redoing things and then the same thing with the servicenow platform right this is where that platform team we don't want the platform team saying oh I'm running all incident problem change now my my job is to maintain the platform so that you can run operations on it or you can run Asset Management on it or you can run HR on it or you can run cyber on it right I'm just going to keep that platform alive and I'm going to give you core things as somebody running a service on my platform I'm going to make sure all the Integrations that you need are maintained so for HR I might be hooking into workday or PeopleSoft I'm going to make sure that all your user interfaces are there for both your end users so they can come into a portal but also for your agents that are working on requests or tickets coming in for those services right so if you divide things up like this and they make sense right they have to make sense to the business like I'm not going to the business saying hey we bought Hardware Asset Management Service now it costs us this amount of money and here's the value we're getting out of it it's too granular you'll be sitting there with the executives and and they'll they're going to gloss over right but if you have a handful you group all the product now and a lot of these things aren't just product now right like on the platform it's it's not just servicenow it's it's servicenow but it's also going to be your all your security tools you're hooking into it's going to be your tenables and your um rapid sevens and it's also going to be all of the operational tools like SCCM or InTune that you're hooking into right so that's that's what you need to run Services right so there's core things that you can give that everybody doesn't have to be doing those on every team right so so those if we take a look at that IP asset manager now let's let's figure your everybody kind of put themselves in this picture where I am an IT asset manager and I'm charged with I'm going to go to to management I'm going to make this pitch for letting me manage all the it Assets in our entire organization not only manage I.T assets for for the IT team but all the other departments too I'm going to go out and tell all the other departments stop using your asset management and come use mine okay so the first thing you need to do is you realize you need this capability right and if you do need that capability you say okay how do I build the asset management product you need to say what I'm going to do is I'm not going to build it myself I'm going to go out and buy some stuff and I'm going to buy some things from servicenow I'm going to buy Hardware asset management software asset management and even APM so I can use applications manage applications right so once you buy those things you need to say how am I going to run it right so this we already have service now I'm going to use the servicenow platform and run those on top of it so when I go to that servicenow platform owner on the bottom they're already running servicenow and there's certain things that come with me using that product to run my Hardware software right I get certain things for free I don't have to hook up the single sign-on because we already have single sign-on connected I don't have to do certain other things because I don't have to manage my Integrations to get Hardware information in because I'm going to put that on that that platform team I'm going to tell them hey I need an integration that SCCM to get Hardware information I need an integration to PeopleSoft to get my application portfolio whatever those are you feed those requirements into that application team and they're able to get that that platform team is able to get those in those Integrations set up and then you'll pay a fee to that application platform for for maintaining those Integrations for you now ideally some people already have those Integrations because maybe the secops team is using that and you could just piggyback off it and you say okay I'm getting data on this asset record right so there's all different ways that you get real good scale in here because you're leveraging that team to provide a lot of what you need and you don't have to do all that foundational work okay now here you might have different platforms like I might say if I call in and there's one servicenow team and and all of my Hardware Asset Management questions or all of my escalations then you might just have one application service but in this case I have a special team of people that just handle Hardware Asset Management questions so I need another application service so I treat those as different systems because there's a different support structure or different service level so that's one way to represent it where I can have two but I don't need one for APM because for APM I just get that out of the core right the core team answers APM questions so this is where you're determining a lot of that setup and that's how the organization might be set up now at the end here you want to provide certain things right I want to provide that Asset Management capability so what I can do here is I could say now I'm going to have my offerings right so I'm going to let people retire Hardware request Hardware request software even do compliance reporting on their Hardware their software and their applications and so these are where your offerings map up all the way through into the portfolio now one of the things I'll leave you with because we're out of time today and I'll I'll pick up on this next time because we're gonna in our next session we're gonna talk about the year in review but I can kind of finish up on this the um the next part of this is where these product models come in right so a lot of things will either be converted to product models past csdm4 and this is where the product management comes in so there might be a product manager for software for hardware and they're like your product manager for portfolio there might be a product manager for its Asset Management that's selling this back to the business now one of the things we can do with the stlc components is stratify those things right and that's where it comes in and we say look we have our one big product model called Acme it asset management and I'm going to hook into all these things so all these things are going to reference me and I'm going to tie them all together and when I go report back to the business or I go and drop these in an agile queue drop requests into for the next version of this I'll be doing it here I'm not going to be doing it each of these I'm not going to have different cues for all these requests for all these things I'm going to have one big model that stratifies all that and brings it together so that I can manage my costs there and I can also manage my requirements there all right we're right at the top of the hour so I do have a couple more slides and I said I'll pick up on this next meeting and I'll finish it off um with some additional slides but I will put these slides in there and at the end of this I just want to show you there's a couple references if you do want more like how cstm maps to um to cstm Maps back to it4it or this is the the publication on the new standard for it for it really good read especially going through and seeing a couple of things that Dan talked about in there there's a bunch of links here to Mark's material on the csdm and mapping to it for it and then this is a really good one from Matt and Scott or Mark and Scott rather where they talk about the life cycle parts of those so we are a minute over thanks everybody much for your time and uh I will like I said I'll pick up on this next meeting and we can cover the second half of this so Dan thanks again for presenting really appreciate it thank you and if there are any questions can I just just say in response to Mitch there is a paper about how it4it maps to ITIL and I will dig that up and send it from you to add to the uh Forum hey Dan I'll put that in this page so all the references are one spot all right good yeah thank you all right thanks everybody

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