International vehicle manufacturer anticipates $25 million saving in 5 years with IBM

Published on 29-May-2010

Validated on 20 Mar 2012

International Vehicle Manufacturer

Fabrication & Assembly

Deployment country:
United States

Asset Management, Business-to-Consumer, Business Service Management , Cloud & Service Management, Service Management, Systems & Network Management, Virtualization


IBM Integrated Service Management solutions are helping an International Vehicle Manufacturer to save $24.9 million over 5 years. These savings will help the company to reduce the cost of manufacturing and drive new levels of efficiency to increase its market position.

Business need:
Gain greater visibility, control and automation of IT infrastructure to improve service quality

An IBM Integrated Service Management solution that simplifies IT management to help staff respond faster, make better decisions, reduce risk and cut costs

US$24.9 million net anticipated savings over 5 years; 201 percent return on investment; expected reduction in production costs; increased business flexibility

Case Study

International vehicle manufacturer anticipates $25 million saving in 5 years with IBM

How do companies thrive even in the toughest economic times? For this international vehicle manufacturer, the answer is simple: innovation.

Through innovation that spans the company’s history, this manufacturer has created one of the strongest brands in the world. And it is by applying this same innovation to its business processes that it is maintaining its competitive edge in today’s difficult economic climate.

Reducing complexity by eliminating IT silos
Take, for example, the company’s service management initiative based on IT Infrastructure Library® (ITIL®) best practices. Launched in 2007 as part of its work to create a new enterprise data center, this three-year initiative provides company staff with visibility, control and automation to raise IT management from the monitoring and management of individual resources to the orchestration of the entire environment. This environment spans more than 1,200 IBM System x™, Power System™ and System i® servers; 2,000 applications and their supporting middleware and databases; 600 network nodes, and 11,000 desktop and laptop PCs.

As the company expanded over the years, each of its divisions was responsible for its own IT infrastructure. These divisions used dozens of different tools along with manual processes to manage service delivery. Because operational information was stored in multiple applications across each organization, IT staff often wasn’t aware of service outages until employees and even customers reported the outages. Provisioning new applications could take weeks. And tracking IT assets for licensing, compliance and service desk support was time-consuming and subject to human error. The company’s vision was to create a common, simple and integrated environment worldwide will help drive operational excellence to reduce IT costs, improve service, manage risk and act with speed.

To achieve its goals, the manufacturer is working with IBM to create a cohesive, integrated model based on industry standard processes for availability management, service desk and IT asset management, and provisioning and discovery management (which includes enterprise change management, release management and configuration management).

Through this program the organization focused on four key milestones:
· Gaining visibility into services and their IT dependencies to manage the business proactively
· Standardizing processes for reduced risk and improved audit compliance
· Providing a centralized global application deployment model to fulfill user requests on demand
· Automating processes to better manage IT costs

IBM Tivoli Software Services is supporting the implementation to help the company meet its very aggressive timeline. The services team is also helping the organization to fully leverage the software’s capabilities. Through this work, the organization will increase the level of automation from basic, in which most analysis and actions are implemented by IT staff, to predictive, in which analysis and actions are coordinated without human intervention.

Improving decision making and response times
One of the company’s first areas of focus was building a global framework that helps staff maximize application availability, visibility and performance and cuts costs. This effort leverages an IBM Integrated Service Management solution for application availability that includes IBM Tivoli Business Service Manager, IBM Tivoli Composite Application Manager, IBM Tivoli Enterprise Portal, IBM Tivoli Monitoring, IBM Tivoli Netcool, Tivoli Performance Analyzer and IBM Tivoli Security Operations Manager software.

With this solution, which consolidates and correlates nearly 10,000 system and security events per minute, IT administrators can immediately see if key business services, such as the company’s dealer portal or manufacturing systems, are “up” or “down” and understand how events, such as a memory leak, may impact critical business services. Incidents are stored in a central repository to help staff pinpoint the root cause of problems, identify recurring trends and measure service and availability.

When issues arise, the solution can automatically open a trouble ticket in IBM Tivoli Service Request Manager software and administrators can receive immediate notification by phone or pager via an event notification application. Self-healing capabilities automate problem resolution for many common problems, such as restarting a service, to reduce problem resolution times.

Maximizing control for reduced risk
The manufacturer also created a centralized global repository that helps staff efficiently manage IT assets and provide world-class business support to its employees. Doing so will help the company save nearly $14 million over five years.

The solution replaces 23 products with just 5 Tivoli software products—IBM Tivoli Service Request Manager. IBM Tivoli Change and Configuration Management Database, IBM Tivoli Asset Management for IT, IBM Tivoli Service Level Advisor and IBM Tivoli License Compliance Manager software.

Together, these products will provide a seamless, unified solution for all aspects of service request fulfillment and management including:
· Providing an easy-to-access Web interface for submitting tickets, viewing updates and searching for solutions to common problems
· Pre-populating information from end user requests into tickets to save time and reduce errors
· Helping staff build an internal knowledgebase that shortens the time to resolve problems
· Tracking and recording changes to help administrators minimize the impact of changes
· Measuring key performance indicators related to system availability and service delivery
· Proactively managing and verifying software license compliance and measuring use activity to reduce unnecessary license fees

· Tracking and managing IT assets throughout their life cycles to improve decision making surrounding infrastructure upgrades and asset utilization.

During phase one of the project, IT staff implemented Tivoli Service Request Manager, Tivoli Change and Configuration Management Database and Tivoli Asset Management for IT software. Phase two will include the deployment of Tivoli License Compliance Manager and Tivoli Service Level Advisor software.

Optimizing provisioning to deliver on demand support
Finally, the IT organization is automating global changes and providing consistent deployment processes to minimize risk. To achieve its goals in this area, the company replaced nine different tools with IBM Tivoli Provisioning Manager software. Now, IT staff can automatically provision desktops and laptops from bare metal, effectively plan upgrades, provide on demand service to users and contain viruses more quickly than previously possible. The software discovers and maps information from the company’s more than 11,000 desktops and laptop PCs. This information is combined with server information discovered by IBM Tivoli Application Dependency Discovery Manager and network information compiled using a third-party tool.

The solution is helping to drive more than $6 million in savings and dramatically reducing the time required to provision new services. In one case, 13 company sites upgraded to Microsoft Windows XP in a record 6 months, helping the team avoid nearly $3 million in upgrade costs.

End-to-end service management delivers business advantage
Through this enterprise service management initiative and use of IBM Integrated Service Management solutions, the company expects to cut IT costs by $24.9 million over 5 years. This represents a 201 percent return on investment with project payback in less than 14 months.

Nearly $11.5 million of this savings is a result of IBM’s integrated approach, which is essential in helping the company align IT planning and execution to business requirements and seamlessly manage processes end-to-end to provide:
· Greater reliability, stability of business service
· Reduced mean time to repair
· Improved 7x24 support for monitored services and immediate response to security violations
· On-demand delivery of critical applications and security patches.

Ultimately, this savings will help IT reduce the cost of manufacturing and drive new levels of efficiency to reduce time-to-market.

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Legal Information

© Copyright IBM Corporation 2010 IBM Corporation Software Group Route 100 Somers, NY 10589 U.S.A. Produced in the United States of America May 2010 All Rights Reserved IBM, the IBM logo, and Tivoli are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or ™), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at "Copyright and trademark information" at IT Infrastructure Library is a registered trademark of the Central Computer and Telecommunications Agency which is now part of the Office of Government Commerce. ITIL is a registered trademark, and a registered community trademark of the Office of Government Commerce, and is registered in the U.S. Patent and Trademark Office Other company, product or service names may be trademarks or service marks of others. This case study is an example of how one customer uses IBM products. There is no guarantee of comparable results. References in this publication to IBM products and services do not imply that IBM intends to make them available in all countries in which IBM operates. TIC14119-USEN-00

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