Publish date April 24, 2019
The complexity and diversity of IT landscapes today are ensuring that nearly 65% of the IT budgets are being spent on managing/maintaining them. These cost-intensive initiatives are getting IT management teams into the line of fire when presenting to business leaders. By getting sucked deep into the weeds of menial fire-fighting, companies often miss out on transformational benefits that can accrue from well-strategized application management initiatives.
Gartner has predicted that by the end of 2019, IT service desks using machine learning technologies and artificial intelligence will free up almost 30 percent of the global support capacity. But to drive real value, a relentless focus on innovation and transformation is the only way to distinguish oneself within a group of peers who are continually doing the same.
The need for a Next-Generation AMS
It would have been great if there was a simple way to reset the expectations for businesses, and remain solely focused on new and innovative programs. Sadly, that’s not how it works. The path to managing diverse applications that can be run and improved at the same time requires overhauling the approach itself. These include processes, systems, and people – being aligned with the vision of keeping applications management intimately connected to work-in-progress innovations and improvements.
Applications are at the core of digital transformation. Akin to every new technology service, AMS is also evolving rapidly to align with fast-paced and continuously changing business environment. Next generation AMS is combining the strategic need for value enrichment, cost optimization and driving business user satisfaction with powered tools like RPA, machine learning, cognitive computing, and other AI technologies. New layers of methodologies are slowly overtaking the traditional models which are still firmly entangled in process descriptions, service level agreements (SLAs) of fixed-price contracts. These continuous and simultaneous changes have prompted the AMS project teams to redefine how they deliberate their budgets in conjunction with sourcing new opportunities.
Some of the ‘characteristics of next-gen AMS would include:
Measuring the value generated by AMS: Moving from SLAs to BLAs
As companies climb up the AMS value chain, measurement metrics need to be sharper and more holistic. Service level agreements (SLAs) are metrics that track performance against technical service requirements. While they are useful in many situations, they do not address all aspects of the metrics puzzle. A better approach is to shift the focus on business outcomes.
Essentially, Business level Agreements (BLA) ) are differentiated from SLAs owing to focus on efficient deployment, optimisation of resources and delivery led business outcomes. Businesses need to view applications management as a core capability linked tightly to continuous IT improvisations and innovation.
A multi-pronged transformation roadmap for businesses – the way forward
AMS is at cross-roads with IT leaders dealing with the paradox of dwindling budgets with an imperative to balance the same with the need to spend on business innovation. AMS can emerge as a substantial budgetary blind spot. Traditional AMS approaches will not be able to provide high levels of visibility and control that CIOs require alongside the need to optimize modernize and transform their organisation.
The name of the game is innovation. Faster service deliveries, personalised customer demands, short time-to-market and constantly evolving customer experiences are hallmarks of next-gen AMS models. This requires leaders to proactively position themselves in a new digital context, where business and IT solutions move hand-in-hand, in sync for end-to-end transformation by linking the right talent and building a culture of collaboration that breeds new ideas and opportunities.
Revenue alignment, strategic growth, and disruptive innovation point to the need for a strategic transformation partner that intuitively understands client needs and meets them head-on.
Asst. Vice President YASH Technologies