hello everyone thank you for joining the webinar I'm Deborah McGrath principal engineer technical product marketing and last Thursday's webinar Host this webinar will focus on how to leverage it asset management and APM along with a little SPM to rationalize it spend the solution-focused webinar is the first in a new series of quarterly last Thursday's webinars where we'll discuss and demo how to achieve greater business value with SPM and or APM seamlessly integrated with other capabilities across the now platform presenting today both from servicenow are James Ramsey director outbound product management and Doug page who heads up our outbound product management team Doug and James both have many years experience at servicenow and both are truly passionate about SPM APN and the Better Together Solutions we provide to our servicenow customers this webinar will include a discussion and demo we'll then highlight upcoming events share a key resource and please feel free to submit your questions during the webinar as well while most of what will be be presenting is currently available please take note of our Safe Harbor notice that this presentation may contain forward-looking statements that reflect the current beliefs of servicenow all are based on current information available but actual results May differ materially and they should not be relied upon on making purchasing decisions so Doug and James we're so happy to have you join us today thanks Deborah and I think it's a great time to be talking about cost optimization because according to Gartner this is one of the top three priorities for cios and this statistic is also backed up by Forester research that is telling us that the top two priorities for 2023 for it organizations are one upgrading refreshing or consolidating business apps hardware and software infrastructure and the second priority number two is modernizing Legacy technology so obviously this idea of controlling our technology footprint especially from a cost perspective is top of mind for it organizations so if we think about who's involved with this process and who's responsible for it first of all this is a c-level discussion it comes down to controlling the bottom line of the organization controlling costs this CIO and the CTO are creating the vision for the organization they're creating the the mandate to spend time to do this they're creating the targets that we need to reach but of course they can't do this on their own so who else from their organizations are engaged with this firstly it's asset managers who are tasked with reducing software and Hardware spend and to ensure compliance with the organization with their vendors and also this is importantly it's Enterprise architects who are defining the technology strategy and optimizing at the application portfolio to support the business goals and when when you look at those two groups they can't do this alone or they can't do this in silos why not first is if you look at Asset Management if they're simply focused in a silo on the reduction of the software and Hardware cost they might be focused on applications that would actually be removed from the organization by the Enterprise Architects and if you look at the Enterprise Architects if they're doing this alone you're only getting the benefit from the portfolio level decisions and not what's happening at the software and Hardware level so it's clear that these groups need to work together to make sure that real optimization is happening to reduce license infrastructure maintenance and support costs but in reality this isn't simple if it was simple organizations would achieve this very quickly they'd spend a month a year doing this and it would be done but the reality is you know when James and I go and talk with organizations they realize that their technology landscape is complex if you look at the information that they need to make this decision or these decisions it tends to be located in many different systems also they don't have information about how these uh applications are being serviced including incident information they also maybe don't have direct access to their technology standards to understand where they may need to make decisions based on those considerations finally where are the costs for these applications and the software and hardware and where is that located very importantly is contract information if you're going to eliminate an application there's no use doing it if you just sign a contract for three years there are other things that you can do that are going to take out costs in the short term and then you could wait two years to reduce that application or to eliminate that application because you're already committed for three years so another key piece of decision making finally Integrations understanding where you have Integrations and complexity in the relationship between your applications is very important if you have two applications that by taking them out either it would save you a million dollars but one has no Integrations the other has 12 Integrations you're definitely going to move and take out the one that has no integration it's a lot less complexity also where do we have information about customer satisfaction technical fit of these applications and where are we going to do the actual organizational change and finally what are the active users that we have uh on this application how many people are actually using it so as you can see to make good decisions to align with these strategies that are very important in 2023 and 2024 organizations need access to a lot of information to make those good decisions and with that I'm going to hand it over to James who's going to show us what this actually looks like in servicenow thanks Duke so as dude was mentioning we often get asked the exam question in terms of how can service now help us drive across our technology optimization initiative or you know simplification or rationalization of initiative so what I'm going to do is walk you through a series of steps which combine strategic portfolio management with application portfolio management and it Asset Management how we bring all of that data that dogs are just been talking around that underpins the decisions that we need to make so I think the first starting point and going back to Duke's first line in terms of what the analysts are saying every organization on their strategic roadmap has some sort of strategic initiative that's aligned to rationalization of simplification so on our first view we're looking at the strategic planning workspace and looking at my strategic roadmap for my company Acme bank and on here I can see all of our current strategic initiatives we're looking to drive forward in 23 24 and 25. one of those which we've got particular interest in today's optimizing our technology Investments and we're looking to make a overall saving of around 50 million dollars now that is aligned to our strengthened cost and capital efficiency strategic priority now as well as planning that out on the roadmap and when we're looking to deliver and attain those benefits I can also then start to look at the Target or the goals we've actually set in order to actually drive that particular initiative so I can see against our strengthened cost and capital efficiency strategic priority we've defined a goal in terms of reducing technology capex and Opex and we don't Define a series of targets now in this particular example we've got a monetary Target in terms of about 50 million reduction in Legacy support software costs and also a non-emergency Target in terms of a 25 reduction in the number of Legacy applications in our application portfolio now those are going to be what drive and help as major success in this rationalization initiative that were underpinning now armed with that strategic view of the world we then look at those those other personas that Doug was talking about so let's look into the world of the Enterprise architect now they will engage inside the process and their starting point will be the Enterprise architecture workspace it's part of that application portfolio management now key to the architecture workspace is giving me as an Enterprise architect insights into things I need to know about so as I come on here I can see an Insight around my technology portfolio and it's telling me all around where I've got business applications that are at risk from underlying technology that is going to end up life I can see impacts from hardware and software products together all in one space if I scroll down I've then got an overall insight into what's going on across the application portfolio in terms of where I've got technical debt and also where I've got business applications at high risk so lots of information there for me to quickly dive in and address potential problems now just before I I go further in this use case I want to um just talk around that that interaction between the Enterprise Architects World I.E through application called portfolio management and the asset managers World from an I.T Asset Management perspective and one of the things that glues this together is something we call the technology portfolio management data model so behind the scenes as we're able to look in terms of the interaction between business applications and their supporting software products what we're able to quickly understand these where that relationship sits so in the background we're pulling all of this information together from a solution standpoint and from a risk perspective I can quickly and easily see with inside the system my business applications the instances of those applications and then the software products associated with those instances and applications and including where those software products are actually installed so we've got full visibility of that underlying data which is fundamental to when we're looking at rationalizing our overall Technologies thing so I've built on that Foundation let's then look at how we can go about helping organizations making decisions on what we want to remove I'm just going to go into my list view here and one of the key starting points to this journey is after defining what those targets are we want to create this single view of the target Technologies the target applications that we're looking to rationalize now interested in them from an APM perspective we're going to pull together our Central inventory of business applications but from an asset Management's perspective they've got a view of all of the software products that are being utilized across the organization along with usage and the cost of those software products now interestingly when you look from a other those two areas you can often find for example SAS applications that are residing with inside saving the asset management list the software product list they'll actually don't exist with inside the business application repository so if you take for example somebody marketing for example has gone on a credit card and procured some licenses at monday.com for example that might be there with inside the asset management list but because it's sort of Shadow I.T the Enterprise Architects maybe even aware of that actually being on the estate of the organization so one of the key starting points we have is how we bring all of that together so we have a fundamental defined list of all those business applications that are underpinning the capabilities we're driving in the organization and of their driving business processes once we've established that we want to then measure how they're performing and what we could do with that is utilize something we call the indicator framework now without application portfolio management out of the box we provide 18 or 19 indicators but users of APM are then able to actually create their own indicators against metrics that they may want to measure so the typical ones we have out the box are measuring today user satisfaction or csap measuring the technology fit the business value of the application we also have indicators that go in pull information from other areas the platform like number of incidents of this application that have happened with in the last month coming from itsm maybe we're going to pull in costs from software asset management or Hardware Asset Management all of these indicators can be defined inside the index framework and once they're defined we can then look at capturing those scores on a periodic basis so having done that what we then find when I go to my application scoring list we'll have a list of all of our applications so I've got an example here of some of the applications we have in this particular uh inventory and across this list across the top we've got some other examples of those indicators where we're pulling information so we've got cost related information now the up TCO they may that might be information we're pulling in from saying external Source software costs and Hardware because we could be pulling that information later through to business value these are things from from APM as I mentioned in number of incidents from itsm as we go across the way we can be looking at calculating the number of days to renew coming from contracts on the platform and we can be pulling number of Integrations from information inside the cmdp but actually from an organizational standpoint the type of indicators and the ones you want to add with inside your analysis is sort of endless you can you can Define the ones that are put into you now I wouldn't I've been working with customers around this type of new case which started that out by identifying what those those indicators those measurements need to be and then we typically work on the process of defining the scorecard against an application so on this particular business application we've actually configured a set of attributes which are pulling in those indicator scores so we can readily see them on the application form and to Doug's point about these decisions not being easy to take we've actually looked at how we can split the the decision making into two halves so on the left hand side here we're looking in terms of the value of rationalization of this particular application the attendance and payroll management system and on the right hand side we're looking at the complexity in terms of how we deliver that rationalization and the aim is what we're going to do is calculate a rationalization score and a complexity score because it's two there's two halves of the equation so when we're looking at the value of rationalizing up we obviously got costs in mind one of the cost savings going to be if we can rationalize take out this application but we also then want to have other dimensions so we want to understand well is this actual application being being used by the organization is it satisfying the users is it giving what they think what they wanted to do does it fit without a technology strategy we also need to understand where does it sit in terms of how it supports the business how many business capabilities is it supporting so I.E what value if it's not supported in any capabilities that means it's actually no real values in the business so there's a high value of rationalizing it and taking out the organization so having looked at those facts as we calculate that rationalization score so the higher the score the more benefit we get from rationalizing it or taking it retiring after the estate and on the right hand side then we're looking at the complexity this is what does it take to actually remove it and the things then to factor in are things like well how many users are actively using this application and how many of those use it we're gonna have to transition onto something else how many days left we've got in terms of the renewal so have we got a long period of time in terms of how we can plan this or is it looking at it in a short number a short number of days to actually do this and complexity from the level of integration of this application to other applications in the estate all of that needs to be factored into account so by using these indicators we're able to make those um there's a analyst scores around around complexity now what customers then look at is well how are we going to visualize this how are we going to help us to make make decisions now typically that's going to come in some form of dashboard so this is just an example of a dashboard I set up for one of the customers I'm working with and it's a it's a simple three-tab dashboard the landscape is all about just giving that um view of what we've got all of this information pertinent to our decision making sitting on on the surface down platform so on the left hand side we're looking from a financial perspective on the right hand side we're looking at it from from a risk view of the world so we could be pulling business applications from APM and the top down spend on those applications this year releasing from an APM standpoint and the bottom-up view of the software spend of the associated software products related to those applications I can then break down that total application spend by the category of applications I can go down and look at to it to the in terms of the publishing of those applications on the right hand side pulling information through from my time I can understand how many out in-the-life software products do I have and by end of life I'm talking to those products that are going into support end of extended support and end of life and then understanding by combining that data in that TPM data model how many of our business applications are life cycle risks based on these 145 software problems and then if I want to go to a little extra level of detail which is typically where the asset managements want to go I can then understand by publisher where those risks are by software products one in business applications are impacted and also write down into an infrastructure standpoint where those software products are actually being installed and where that Alistair which is causing that risk is coming from so that gives me that landscape view so as I mentioned at the beginning that's sort of the foundation of making those decisions now because we've got that indicator framework scoring applications in the background we can then start to use workloads to automate identifying recommendation candidates for rationalization so we can see on the top right here I've got 27 names that identified candidates now if I go to the recommendations tab this gives me more detail on those 27. so the top top left that's just a bubble chart showing me the overall estate and breaking that down by what we call the distant disposition so whether we're going to retire sustain migrate or invest and we're going to focus in on those ones we're going to retire on the top right I've got a heat map which is giving me an overall picture of valuing rationalization down the y-axis complexity to rationalize on the x-axis and the value in the middle is the total savings within this category so if you if you look at it I've got some applications which are very hard going to give me very high value by rationalizing and I can make 19 million dollars worth of savings on that category but they're highly complex to actually remove from the estate so do I want to focus on that 19 million to begin with or should I turn my attention to the 40 million or very high rationalization value which I've got law complexity to remove now to explain that a bit more if I drill if I scroll down onto the list here we can see our 27 candidates in this list and they're ordered by descending value of rationalization so the very high ones the ones we want to get rid of are going to give you the most return at the top to the low rationalization one at the bottom but we can see from the from an application standpoint we got our bias application very high in terms of the value we'll get back from rationalizing it we can see high levels of cost and we can see it's not performing well lots of incidents it's got technical risk of obviously it's something we want to get rid of but on the right hand side we can see This is highly complex to rationalize we've got 15 000 users currently actively using buy it which we're gonna have to to select it and and give them something else to perform their tasks we've got not a long time left on there [Music] contracts or potentially we're gonna have to renew that so we can we can move forward in terms of uh rationalizing now we've got 16 Integrations so all in all highly complex to actually rationalize whereas if you compare that with a cost Track application here we're seeing something yeah very high we want to get rid of lots of cost and it's got a lot of complexity because we've got not many users we have to go through a change management process with no Integrations so a more simple way to take out so we can focus on maybe taking out good strap so for that what I want to do I want to action that recommendation and for that I will create a demand which will feed you to the demand pipeline just while I'm on here just add an Insight we can provide particularly from our asset management perspective is I can see based on all of those uh candidates we've identified the impact of the underlying software so I can see against each one of those rationalization candidates what software products are related and how many installs how many servers are impacted by those applications so I can understand if I want to get rid of the attendance of payroll management system I'm going to actually be able to retire three database servers as part of this so that gives that connection with Enterprise architecture and asset management which is often not taken into account as part of rationalization so having identified the candidates we want to do those will then feature on our success success to tell so we can understand the the number of recommendations that we're currently actually those demands that we've created and identifying from that where our identified savings are going to be against rationalization of the business applications and also the underlying software problems I can also get visualization then in terms of where those benefits are going to accrue as we perform and deliver on that Aroma and that's the fine The Next Step so going back into the world of of SPN as we create those and it demands to activate those recommendations those will now appear on my roadmap underneath my optimized technology Investments strategic initiative so these are all the things we're now looking to do I can now look at it from a timeline perspective it also then gives me the ability then to hand those off to the various teams that will then be delivering this activity so as those teams are executing whether they're doing it for a Project's perspective or whether they're using an agile methodology this will give me visibility in terms of where we are the progress being made and the status of of delivering against those activities and as I'm and then doing that we can go back to our targets and utilizing automation from all of its analytics in in terms of the goal framework with inside SPM all that will then give me is an automatic update of where we actually are in delivering on those targets based on the work that's been undertaken to deliver those recommendations that we were currently action in so it enables whether I'm the Enterprise Architects asset manager or I'm looking at it from an executive standpoint I've got that up to minute picture of where we are in terms of progress on delivering on those rationalization targets so that was sort of a quick run through of how we look to connect that end-to-end process in terms of delivering that uh rationalization initiative are we how we link strategies from an SPM perspective with the world of the Enterprise Architects to facilitate decision making and also connecting the world of the asset managers so we've got that underlying information coming from Asset Management in terms of costs and then also in terms of life cycle data so we can then get the solutions to start making recommendations of where we focus our rationalization and with that I'll hand back to you Deborah thank you James and Doug for showing us how we can leverage APM item and SPM to together as that single seamless solution it was great seeing how it enables much more collaborative end-to-end rationalization with all those different roles and all Guided by business strategy and how it provides at the end of the day much greater Clarity around technology decision making we hope to have you join us again for additional solution focused discussions so customers can see how they can get even greater value with SPM and or APM and other server cell applications and capabilities so I'd like to share two live on servicenow events and an informative resource for you first on October 17th we have a webinar on resource assignment in Project workspace this one really drills into a variety of the different use cases for where and how you can leverage the new resource assignment feature join us for our next last Thursday's webinar on Thursday October 27th which will be on technology portfolio management this will be presented by Mark Casto and Gerard berthet and you'll learn how to manage technology obsolescence risk and servicenow APM and you'll receive guidance on how to optimally set up and use TPM and you can view this webinar again and access any of our last Thursday's webinars on our YouTube Last Thursdays with SPM webinars playlist use the tiny URL in the blue box in the upper right corner of the screen and finally we also have a resource for you APM plus item Better Together solution brief scan this QR code for that thank you so much James Ramsey and Doug page thank you to my last Thursday's co-producer John Lim and as always much appreciation to our last Thursday's audience for joining us we will see you on the next last Thursday in October thanks Deborah thanks everyone