Effectively Leveraging IT, BSM Solutions as Innovative Strategy to Grow Business IT providing added value to enterprises In the globalized economy of the 21st century, effective IT support is proving to be an indispensable requirement for company growth. It is thus becoming more and more important to understand how IT and business affect and influence each other. In terms of IT providing value to the business sector, IT and business operations are now inseparable. Business today relies totally on IT and expectations of IT are therefore expanding to include managing business services. BMC Software Korea Ltd. is thus focusing on addressing business service management (BSM) methodology and concentrating the company's efforts on its market diffusion as a strategic direction engineered to support today's business & IT imperatives. Country Manager, Park Hong-Hyun, emphasizes that ultimately, IT is expected to create demonstrable business value in a special interview with The Korea IT Times on the occasion of the BMC Customer Days 2005 to be held over two days from Dec. 9 through 10 in Daemyung Vivaldi Park, Hongcheon, Gangwon Province. Yet, Park points out: "New solutions are needed to better view, manage, measure and report on the value IT delivers to business operations since today's IT toolset is designed to manage the enterprise from an IT, not a business perspective." In that respect, BMC Software has announced its Business Service Management (BSM) strategy to support IT service management (ITSM) more effectively and at the same time, has for the past few years been developing new procedures continuously, as well as seeking diverse solutions to support this strategy efficiently. In a nutshell, Park says that BSM is an innovative strategy to grow a business by effectively leveraging IT. He further explains that these services span multiple applications, databases and networks across the IT infrastructure, indicating that the quality of a company's critical business services can determine business success or failure. The Country Manager noted further, "You need to effectively monitor, measure and deliver the service levels required to meet business priorities," explaining that this means developing meaningful, tangible connections between the IT organization that delivers services and the business constituents who use them. More BSM solutions than any company in the industry Regarding why BMC Software became BSM, he responded proudly, "Our open approach to enterprise management integrates our proven best-of-breed products with your existing environmentfrom mainframe to distributed systems, databases to applications, service to security-reaching across the BMC Software portfolio and BMC Partner Network technologies." Park went on to explain that his firm had executed more BSM solutions than any company in the industry, adding, "Our solutions support and enable best practices, such as ITIL, so you can leverage proven methodologies to assess and optimize your current systems and lower TCO across your enterprise." "We can deliver best-practice enterprise management through BSM Managed Services, offerings that combine the full capabilities of BMC Software products with the in-depth expertise of service provider partners and a pay-asyou- go model." Park pointed out. Through the company's BMC Customer Days 2005, BMC Software Korea Ltd. is scheduled to share customer construction examples of several industry fields and technology information based on BSM with their customers by means of a seminar, "BSM strategy and its approaches." For readers' information, BMC Software Korea's customer construction references based on BSM in several industry fields are as follows: KOREA IT TIMES December 2005 _ 29 First of all, Park explained that there are domestic construction references of diverse fields such as chaebol, financial circles and public organizations which provide their affiliated companies as well as associated companies with SM (Service Management) service plus a number of overseas construction references. BMC Software Korea has its BSM construction references of Hanjin Information Systems and Telecommunications Co., Ltd., SK Group, LG Electronics, and The Ministry of Information & Communications (MIC) in the ITIL Service Support sphere. As another case, KOSCOM constructed SLM systems in the ITIL Service Support & Service Delivery sphere from May 2005 through December this year with the help of BMC Software Korea. By category of business, SK C&C, LG Electronics, KOSCOM, Hanjin Information Systems and Telecommunications and pangovernmental integration center etc., form BMC Software Korea's main customer references in Service Management. In infrastructure Management as well, BMC Software Korea holds a raft of client references, such as SK C&C, Kookmin Bank, Woori Bank, Industrial Bank of Korea, Hana Bank, Standard Chartered First Bank, Samsung Life Insurance, Kyobo Life Insurance, KOSCOM, Daewoo Securities, Tong Yang Investment Bank, LG Card and BC Card etc. In Database Management, POSCO, MIC, Hyundai Motor Company, LG Home Shopping, LG Card, GM Daewoo, Samsung Tesco, Kookmin Bank, Industrial Bank of Korea, Korea Exchange Bank and so forth comprise BMC Software Korea's customer references. Dongbu Insurance, KTF, Allianz Life Insurance, KITA (Korea International Trade Association), Hyundai Information Technology and others are using BMC Software infrastructure management solutions in Application Management. In Operation Management too, BMC Software Korea's customer references include Kookmin Bank, Hana Bank, Citibank, NACF (National Agricultural Cooperative Federation), Samsung Fire & Marine Insurance, Samsung Card, Samsung Life Insurance, LG Card, LG Insurance, National Tax Service, SK Telecom and KT etc. In Security Management, Daewoo Securities, SK C&C, Kyobo Securities and National Health Insurance Corporation compose its customer references. Activate Business with IT Power Concerning business service management strategy and approach methods, Park commented, "BMC Software's goal is to provide its customers with faster, more consistent service of a wide scope through BSM like its message of "Activate Business with the Power of IT' and to create opportunities of new revenues by diminishing business risk or by the decrease of service expenditures." Of course, the majority of associated business circle vendors have been using BSM terminology in recent years, but what made BSM terminology and established it, is absolutely BMC Software, he explained. Furthermore, the company offers its customers an approach method that can be accessed by stages from necessary segments realistically through RTV (Routes to Value), developed to provide a more distinct and gradual application channel for the sake of BSM's substantial materialization. On the common foundations for BSM, such as reporting, service, open-model portal, web service, service model, and CMDB etc., BMC Software provides the following solutions in eight spheres, such as Service Level Management, Incident and Problem Management, Infrastructure and Application Management, Service Impact and Event Management, Asset Management and Discovery, Change and Configuration Management, Capacity Management and Provisioning, and Identity Management. In conjunction with RTV, the Country Manager elaborated, "BMC AtriumTM is the core of BSM Routes to Value as an openly-built set of enabling technologies that provide information sharing and process collaboration across BMC Software and third-party solutions. Concretely speaking, it provides a set of loosely-connected enabling technologies that form part of BMC Software solutions, including a shared data repository, unified service model, and common user and reporting interfaces. It is further designed to fit into a heterogeneous IT environment and interoperate with clients' existing IT operations and management solutions. The BMC Atrium Configuration Management Database (BMC Atrium CMDB) is a key component in enabling clients' organizations to successfully implement a BSM strategy, Park explained, adding that BSM Routes to Value have been created to work with the BMC Atrium CMDB right out-of-the-box. To sum up, the BMC Atrium CMDB provides: -A single view and reliable source for your IT environment -The ability to leverage existing technology investments while creating a united IT environment -Compliance with industry standards and best practices to ensure IT consistently meets the needs of the business -Common integration between IT applications that span both Service and Infrastructure Management An opening market from now on BMC Software Korea which was established in late 1996, is expecting to be able to generate many opportunities next year since BSM is an opening market from now on, targeting a revenue of US$ 28 million this year whose fiscal year ends on March 31, 2006. Park forecasted that the BSM market would grow continuously till 2007 and would exceed $1.1 billion according to Forrest Research, Inc. materials. In the case of Korea, the ITSM market has been continuously growing recently and the ITSM market alone is tipped to grow to over 50 billion won (approx. $ 48million)~100 billion won (approx. $96 million). Park emphasized that BMC Software is a true leader in this ITSM market in Korea and around the globe, adding that the company aims to driving innovation to help IT align with the goals of the business sector. Especially, he stresses the company's goal is to create the largest benefits for enterprises at the smallest cost, explaining that relevant companies suffer double damage if they don't combine IT and business. As one of the world's largest software companies with annual revenues of more than $1.4 B, BMC Software has more of an edge than local vendors, the Country Manager noted. In actual fact, BMC Software boasts a solid balance sheet, with no debt, $1.4 billion in current assets plus being a member of the S&P 500 Index; listed on the NYSE (New York Stock Exchange). Moreover, the company has 15,000 clients in over 115 countries (coverage in more than 50 countries) and 95 of the Forbes Global 100 and more than 80% of the Fortune 500 rely on BMC Software, according to Park. He went on to affirm that BMC Software customers lead the Fortune 1000 companies, adding that BMC Software solutions apply across all major vertical industries. Accordingly, seven of the top 10 largest communications and media companies are using BMC Software plus eight of the top 10 largest natural resource companies and wholesale providers as well as nine of the top 10 largest retailers and utility companies. Besides, 10 of the top 10 largest banks, financial services firms, insurance companies, discrete manufacturers, process manufacturers, healthcare providers, services firms, and transportation firms are the major customer profile of BMC Software. Park is proud of the fact that praise continues to be heaped on BSM. As an instance, Enterprise Management Associates pointed out: "Most other vendors cannot offer the breadth, brand and depth that BMC Software can achieve with its existing technologies. It is well positioned to gain significant BSM awareness share and market share." In conclusion, BSM is not just another acronym, but a new way of thinking about the business and a new way of measuring IT effectiveness, as vice president Lee Adams, Infrastructure Services Healthcare Corporation of America explained.

Effect analysis when BSM strategy is in place Let's consider it through an actual example of one particular retail sale company. This company's IT service desk is receiving all sorts of assistance requests totaling 100,000 cases a month from the shops of each branch. Yet, owing to such requests, employees of these shops responsible for this were wasting much time in responding to these requests and the IT department's productivity was also falling due to dual consumption waste time to search for relevant infrastructure problems corresponding to this. To solve such problems, the company generated a service model, which combined connection relation with specific IT resources to support this service about key services directly associated with the operation of a shop. Moreover to provide tighter control as well as overall perspective, this company has reestablished and standardized IT processes related with incidents, modification, property as well as SLA management. By applying this model, the IT department was able to concentrate more on IT infrastructure which directly affects a shop's operation and problems by establishing priorities of the degrees of influence by which IT affects business. Consequently, obstacle requests have decreased continuously and their employees' productivity has been enhanced. Likewise, customers also were able to purchase good quality products they demand and the IT department has been empowered to concentrate its capacity on other more important spheres by transacting reduced number of obstacle tickets than before.