Digital Service Efficiency: New Management Scorecard

Post on 28-Nov-2014

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This presentation was made at the recently concluded Express Technology Senate (Oct 3-5, 2013) at Abu Dhabi. It first defines and outlines Management Scorecards, including Kaplan & Norton's Balanced Scorecard. It then establishes the need for a supplementary scorecard to measure IT Efficiencies & Costs with respect to business operations. The answer to that is the recently announced "Digital Service Efficiency (DSE)" by ebay, Inc, led by one Dean Nelson, as he says the "miles per gallon" of IT infrastructure. The presentation concludes with a submission how a Next Gen DCIM Software is building the DSE framework through monitoring and analysis of data from IT, Infrastructure & Applications. The DSE Results can then feed into the Balanced Scorecard.

transcript

1

Digital Service Efficiency

- A New Management Scorecard

Shekhar Dasgupta

Founder GreenField Software

2

Examples

Management Scorecards

What are they? Organizational Performance Management frameworks • Mix of financial & non-financial measures against benchmarks • Started in late 1970s by Dr. Aubrey Daniels • Goal: alignment of top management towards common organizational

objectives & positive outcomes through key measurement parameters

What do they measure? People Performance Process Efficiency Systems Efficiency

3

Balanced Scorecard

• Developed by Kaplan & Norton in 1990s

• Linked company strategy to Financial & Non-Financial KPIs

• Multiple variants, including industry-specific templates

• Applicable for Public Services • Technology recognized as

enabler for business process efficiencies and driver for innovation and growth

• Principal criticisms: Seen just as tool for objectively

incentivizing executives on non-financial KPIs

Practitioners have not evolved any IT infrastructure-related KPIs nor directly linked them to the BSC framework

4

Why Now A New Scorecard?

• You identify certain processes need overhauling for the organization to function effectively

• You identify the process innovation and technology support to make that happen

• How do we now measure that these new processes are being managed effectively?

• What are the costs and how do they measure against benchmarks? • How do we measure the technology innovations/ new systems are delivering

the desired outcomes?

5

Digital Service Efficiency: A New Scorecard from eBay Inc.

“Digital Service Efficiency (DSE) methodology is ebay’s miles-per-gallon (MPG) equivalent for viewing the productivity and efficiency of technical

infrastructure across four key areas: performance, cost, environmental impact and revenue”.

“The DSE methodology equips decision-makers to see the results of their technical infrastructure choices to date (i.e., what MPG they achieved with

their design and operations), and serves as the flexible tool they need when faced with making new decisions (i.e., what knobs to turn to achieve maximum performance across all dimensions). Ultimately, DSE enables balance within the technology ecosystem by exposing how turning knobs in one dimension affects

the others”.

Original Designer: Dean Nelson from eBay, Inc. Original Designer: Dean Nelson from eBay, Inc.

6

DSE: Going Public

Beyond traditional PUE & other Green Grid measurements Linked to Business operations for Internet Commerce Public release of scorecard: March 2013 Work proceeding to extend beyond Internet Commerce

7

DSE Dashboard

ebay’s real-time dashboard available on http://tech.ebay.com/dashboard

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DCIM & Digital Services Efficiency

Data Center Infrastructure Management (DCIM)

Current DCIM measures real-time:

– IT Asset utilization

– DC Power usage (PUE, CUE)

– Cooling Requirements

– Floor & Rack Space Occupancy

Data analyzed for improving Energy Efficiencies & Capacity Planning

Can be directly translated to costs

DCIM is ideally suited to provide DSE Dashboard to give businesses granular cost measurement across complete IT infrastructure whether on-site or on the cloud.

DCIM DSE scorecard will measure Infrastructure Capability for Process Improvements & Technology Innovations.

9

The Next Gen DCIM

DCIM with DSE

Dashboard

Enterprise Application & Enterprise Balanced Scorecard

Enterprise Application & Enterprise Balanced Scorecard

Policies

Business Intelligence

ITSM/APM SAN

Blade Chassis

Rack Servers

Core Switch

Access Switch

Tape Library

CRAC units

UPS

Racks fitted with energy meters and environmental probes

DG Sets

Facilities Facilities IT IT

10

How Will This Help Your Business?

Link Back to Organizational Vision & Strategy & BSC Link Back to Organizational Vision & Strategy & BSC

Are the Data Centre Infrastructure & Capital Costs aligned to process

improvements?

Have we been able to reduce Infrastructure

OpEx?

Are we maintaining a Risk-free Data Centre

Infrastructure?

Is the infrastructure delivering on the

technology innovation?

Next Gen

DCIM w/ DSE

Dashboard

11

Thank You