How do you measure the ROI of CMDB implementation?

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A configuration management database (CMDB) is a repository of information about the assets, services, and dependencies in an IT infrastructure. A CMDB can help you improve service quality, reduce costs, and optimize performance. But how do you quantify the value of implementing a CMDB? How do you measure the return on investment (ROI) of your CMDB project? In this article, we will discuss some of the benefits and challenges of calculating CMDB ROI, and suggest some methods and metrics to help you evaluate your CMDB implementation.

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Ron D.

Enabling Advancement of Digital Delivery in Technology Operations

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1 Define your goals and scope

Before you start measuring your CMDB ROI, you need to define your goals and scope for the project. What are the main objectives and outcomes you want to achieve with your CMDB? How will you align them with your business strategy and priorities? What are the scope and boundaries of your CMDB? What assets and services will you include and exclude? How will you ensure data quality and accuracy? How will you manage changes and updates? By defining your goals and scope, you can establish a clear baseline and expectations for your CMDB project, and avoid scope creep and unrealistic expectations.

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Ron D.

Enabling Advancement of Digital Delivery in Technology Operations
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There are three fundamental reasons for a CMDB: - Traceability of Change - Relationship Analysis for Impact - Comprehension of Services under Management Boundaries are fluid, depending on your role, and if you own the CMDB or another does. Assets in or out are also under the same constraint. Data Quality is best managed when collection, ingestion, and normalization of data is automated. Accuracy of human flags like billing or naming of systems and services as collections depend on an external process to ensure consensus and completeness. System discovery should be automatic in update, human updates should be change-control driven or request driven.

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2 Identify your costs and benefits

The next step is to identify and estimate the costs and benefits of your CMDB project. The costs include the initial investment and the ongoing maintenance of your CMDB, such as hardware, software, licenses, staff, training, integration, data collection, validation, and governance. The benefits include the tangible and intangible value that your CMDB generates for your organization, such as improved service availability, reliability, efficiency, security, compliance, and customer satisfaction. You can use various methods and models to calculate the costs and benefits of your CMDB, such as total cost of ownership (TCO), net present value (NPV), payback period, internal rate of return (IRR), or benefit-cost ratio (BCR).

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3 Choose your metrics and indicators

To measure the return on investment (ROI) of your configuration management database (CMDB) project, you need to select metrics and indicators that align with your goals and scope. These metrics and indicators can be financial, operational, quality, or customer-oriented. For example, financial metrics could include cost savings, revenue growth, and budget variance; operational metrics could include service availability and incident resolution time; quality metrics could include data accuracy and completeness; and customer metrics could include customer satisfaction and loyalty. You can use various tools and techniques to collect, analyze, and report these metrics and indicators, such as dashboards, reports, surveys, audits, or benchmarks.

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4 Compare and communicate your results

The final step is to compare and communicate your results to evaluate your CMDB ROI. You can compare your results with your baseline and expectations, with your industry standards and best practices, or with your competitors and peers. You can also communicate your results to your stakeholders, such as senior management, business units, IT staff, or customers, to demonstrate the value and impact of your CMDB project, and to gain feedback and support for future improvement and optimization. You can use various formats and channels to communicate your results, such as presentations, newsletters, blogs, or webinars.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you measure the ROI of CMDB implementation?

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1 Define your goals and scope

2 Identify your costs and benefits

3 Choose your metrics and indicators

4 Compare and communicate your results

5 Here’s what else to consider

Infrastructure Management

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