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Current Challenges Of It Service Management In Hungary 2009

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Péter Fehér
Péter Fehér

Zoltán Szabó and Péter Fehér of Corvinus University of Budapest conducted a survey of Hungarian IT service management companies in early 2009. The survey found that (1) the average IT budget was 6.44% of company revenues, with financial sector companies spending 5-20%, (2) 24% of IT budgets went to outsourcing, and (3) over 60% of companies had implemented or planned to implement IT service management processes based on ITIL v3 such as incident management and change management. The researchers planned additional detailed surveys and case studies to further analyze IT service management practices in Hungary.

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Current Challenges of IT Service Management in Hungary 2009 Zoltán Szabó & Péter Fehér Corvinus University of Budapest & ITSMf Hungary
Research Goals • ITSM – theory vs. practice? • Investigated issues: – the role of IT in competitiveness and innovation; – the actual activities in IT strategy planning; – the characteristics of IT infrastructure and applications; – the actual and planned state of IT service management; – the IT budget and the role of IT in the financial planning.
The Sample Hungarian IT service management applier companies in the first half of 2009
Organizational Size
Responding Representatives
IT Budget
IT Budget – in General • IT is business-critical • IT costs usually varies between the average 3-5% of the revenue (international) – Industry/sector-dependent – IT spending can exceeds 10% of the revenues - conservative companies spend only 0,5-1% • Results – 6,44% of the revenue – Lowest level: 0,1% (public sector) – Highest: 5-20% (financial sector)
Share of operational costs
Operational Cost vs. Development Outsourcing: 24%
What portion of the IT budget is determined by the IT function?
Is IT budget going up or down in real terms comparing to last year?
IT Strategy
Is there a documented IT strategy? for 2,9 years
Major Issues in IT Strategy NEW
The Role of IT information technology as a factor of the organisational performance and competitiveness
Our IT function is the main initiator of innovation
IT has a significant role in implementing business innovations
Business understands the role of IT
There is and efficient partnership between IT and business
Basic IT services are provided on the required quality level
IT is more important than the IT function 3,6 3,6 3 2,85 2,8 IT has a significant IT provides the basic Business areas Theres is an efficient IT is the originator of role in accomplishing IT services in an understand the role partnership between innovations innovations adequate level of IT business and IT
IT Infrastructure
IT Infrastructure (lower segment) Human resource management systems Cost management applications Manufacturing support systems Marketin support systems E-business applications Information Management oriented applications Logistic support systems Executive Information Systems ERP system 39% (42,7% in 2006) Quality management applications Systems supporting technical development Systems supporting organizational development 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
IT Infrastructure (upper segment) Financial management applications Accounting information systems Groupwork applications Workflow applications 61,1% (30% in 2006) Payroll systems Inventory management systems Sales management applications Controlling applications Business Intelligence 55,5% (10% in 2006) Procurement management applications 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
IT Service Management Based on ITIL v3
Service Desk Incident Management Request Fulfillment Management Transition Planning and Support Change Management Access Management Asset and Configuration Management Information Security Management Availability Management Demand Management Service Measurement Service Validation and Testing Service Continuity Management Already accomplished Financial Management Implementation in progress Service Strategy Planned Service Reporting Not expected Problem Management Release and Deployment Management 7- Step Improvement Process Supplier Management Capacity Management Service Level Management Common Service Operations Service Catalogue Management Service Portfolio Management Evaluation Knowledge Management Event Management 0% 20% 40% 60% 80% 100%
Impact of economic downturn In the afternoon session…
Research Phases and Plans 1. Phase 2a. Phase 2b. Phase Quick survey Detailed survey Case studies Short survey for the ITSMF Online questionaire Focus on the matured ITSM conference participants practitioners Respondents from IT and Major issues can be non IT domain Analysis of best practices, explored experiences, success and failures Focusing on general issues Solid base for the fine- but more detailed analysis tuning Exploration of complex relationship between ITSM and business
Further information: Corvinus University of Budapest– Department of Information Systems http://informatika.uni-corvinus.hu Zoltán Szabó (szabo@informatika.uni-corvinus.hu) Péter Fehér (pfeher@informatika.uni-corvinus.hu) Corvinus University of Budapest & ITSMf Hungary

More Related Content

Current Challenges Of It Service Management In Hungary 2009

  • 1. Current Challenges of IT Service Management in Hungary 2009 Zoltán Szabó & Péter Fehér Corvinus University of Budapest & ITSMf Hungary
  • 2. Research Goals • ITSM – theory vs. practice? • Investigated issues: – the role of IT in competitiveness and innovation; – the actual activities in IT strategy planning; – the characteristics of IT infrastructure and applications; – the actual and planned state of IT service management; – the IT budget and the role of IT in the financial planning.
  • 3. The Sample Hungarian IT service management applier companies in the first half of 2009
  • 7. IT Budget – in General • IT is business-critical • IT costs usually varies between the average 3-5% of the revenue (international) – Industry/sector-dependent – IT spending can exceeds 10% of the revenues - conservative companies spend only 0,5-1% • Results – 6,44% of the revenue – Lowest level: 0,1% (public sector) – Highest: 5-20% (financial sector)
  • 9. Operational Cost vs. Development Outsourcing: 24%
  • 10. What portion of the IT budget is determined by the IT function?
  • 11. Is IT budget going up or down in real terms comparing to last year?
  • 13. Is there a documented IT strategy? for 2,9 years
  • 14. Major Issues in IT Strategy NEW
  • 15. The Role of IT information technology as a factor of the organisational performance and competitiveness
  • 16. Our IT function is the main initiator of innovation
  • 17. IT has a significant role in implementing business innovations
  • 19. There is and efficient partnership between IT and business
  • 20. Basic IT services are provided on the required quality level
  • 21. IT is more important than the IT function 3,6 3,6 3 2,85 2,8 IT has a significant IT provides the basic Business areas Theres is an efficient IT is the originator of role in accomplishing IT services in an understand the role partnership between innovations innovations adequate level of IT business and IT
  • 23. IT Infrastructure (lower segment) Human resource management systems Cost management applications Manufacturing support systems Marketin support systems E-business applications Information Management oriented applications Logistic support systems Executive Information Systems ERP system 39% (42,7% in 2006) Quality management applications Systems supporting technical development Systems supporting organizational development 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
  • 24. IT Infrastructure (upper segment) Financial management applications Accounting information systems Groupwork applications Workflow applications 61,1% (30% in 2006) Payroll systems Inventory management systems Sales management applications Controlling applications Business Intelligence 55,5% (10% in 2006) Procurement management applications 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
  • 25. IT Service Management Based on ITIL v3
  • 26. Service Desk Incident Management Request Fulfillment Management Transition Planning and Support Change Management Access Management Asset and Configuration Management Information Security Management Availability Management Demand Management Service Measurement Service Validation and Testing Service Continuity Management Already accomplished Financial Management Implementation in progress Service Strategy Planned Service Reporting Not expected Problem Management Release and Deployment Management 7- Step Improvement Process Supplier Management Capacity Management Service Level Management Common Service Operations Service Catalogue Management Service Portfolio Management Evaluation Knowledge Management Event Management 0% 20% 40% 60% 80% 100%
  • 27. Impact of economic downturn In the afternoon session…
  • 28. Research Phases and Plans 1. Phase 2a. Phase 2b. Phase Quick survey Detailed survey Case studies Short survey for the ITSMF Online questionaire Focus on the matured ITSM conference participants practitioners Respondents from IT and Major issues can be non IT domain Analysis of best practices, explored experiences, success and failures Focusing on general issues Solid base for the fine- but more detailed analysis tuning Exploration of complex relationship between ITSM and business
  • 29. Further information: Corvinus University of Budapest– Department of Information Systems http://informatika.uni-corvinus.hu Zoltán Szabó (szabo@informatika.uni-corvinus.hu) Péter Fehér (pfeher@informatika.uni-corvinus.hu) Corvinus University of Budapest & ITSMf Hungary