The Total Economic Impact™ Of BMC Helix With BMC Helix ... · adopting BMC Helix, organization no...

A Forrester Total Economic Impact™

Study Commissioned By BMC

January 2019

The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot

Cost Savings And Business Benefits Powered By BMC Helix

Table Of Contents Executive Summary 1

Key Findings 1

TEI Framework And Methodology 4

The BMC Helix ITSM Customer Journey 5

Market Overview 5

Interviewed Organizations 7

Solution Requirements 7

Key Results 9

Composite Organization 9

Analysis Of Benefits 11

Ticket Deflection 11

Agentless Ticket Resolution 13

Agent Productivity 15

End-User Productivity 18

Cost Avoidance Of Legacy On-Premises Solution 20

Unquantified Benefits 21

Flexibility 23

Analysis Of Costs 26

Implementation Labor 26

BMC And Third-Party Technology Licensing And Professional Services 28

Ongoing Labor 30

Financial Summary 31

BMC Helix: Overview 32

Appendix A: Total Economic Impact 34

Appendix B: Endnotes 35

Project Director:

Benjamin Brown

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1 | The Total Economic Impact™ Of BMC Helix With BMC Helix ITSM, BMC Helix Digital Workplace, And BMC Helix Chatbot

Executive Summary

Delivering a seamless and incident-free user experience has never been

more difficult — or more important — as employees rely on the whole

stack of organizational technology to complete everyday tasks.

Organizations stand to achieve substantial returns by enhancing traditional

IT service management (ITSM) technologies to empower users with self

service and accelerate ticket resolution with cognitive automation.

BMC Helix is a software-as-a-service (SaaS) offering that delivers IT

service management with cognitive capabilities to be run across multicloud

environments. With BMC Helix ITSM, organizations can deploy a myriad of

enhanced ITSM and enterprise service management (ESM) solutions such

as chatbots, cognitive automation, and multicloud service management.

EMS solutions like BMC Helix can extend IT service management

capabilities beyond technology services to address business-centric use

cases such as human resources or facilities; manage service demand and

supply through a common platform, portal, and service catalog; and speed

up innovation and workflow automation through platform-as-a-service

(PaaS) and low-code development tooling.

BMC commissioned Forrester Consulting to conduct a Total Economic

Impact™ (TEI) study and examine the potential return on investment (ROI)

enterprises may realize by deploying BMC Helix ITSM, BMC Helix Digital

Workplace, and BMC Helix Chatbot in the cloud. This study’s purpose is to

provide readers with a framework to evaluate the potential financial impact

of BMC Helix solutions for service management on their organizations.

To better understand the benefits, costs, and risks associated with this

investment, Forrester interviewed seven customers using these BMC Helix

solutions and constructed a composite financial analysis based upon the

aggregated information from these interviews. These customers chose

BMC Helix because it enabled them to quickly and effectively modernize

their ITSM operations, facilitating operational efficiency savings, enhanced

user experience and productivity, and business agility for future needs.

Prior to deploying BMC Helix ITSM, the customers used legacy on-

premises ITSM solutions that were either offered by BMC, a third-party, or

were built in-house. Customers wanted an easily scalable solution to meet

the demands of their growing business that would not require a significant

investment of time and resources to implement and maintain. Customers

also desired a centralized ticketing system, to facilitate prioritizing and

routing service requests. Furthermore, the organizations needed a mobile-

friendly solution, so end users and service desk agents would not be

limited by location in making and resolving requests. Throughout these

needs, they wanted a system that could be embedded with artificial

intelligence and automation for maximum impact.

Key Findings

Quantified benefits. Forrester’s model quantifies the following three-year

risk-adjusted present value (PV) benefits for the composite organization:

› Deflect up to 25% of tickets through self service and 10% with a

chatbot, saving $2.7 million. Replacing confusing and disjointed

submission processes for end users with a centralized self-service portal

and knowledge base, helps end users find instructions and resolve

would-be tickets themselves. By launching a virtual chatbot for IT

requests, organizations can further deflect tickets by automating certain

Key Benefits

Tickets no longer requiring agent labor due to self service, chatbots, and automation:

45% deflection $4.1 million in savings

Improved agent efficiency to resolve the remaining tickets:

15% to 20% reduction $2.2 million in savings

Improved end-user productivity:

3 hours/user per year $4 million in savings


IT requests and helping users locate the correct self-service articles.

Ticket deflection benefits both end users with faster resolution, and IT

agents who free up time from performing simple, redundant requests.

› Automatically resolve up to 18% of Tier 1 tickets without agent

involvement, saving $1.4 million. Through cognitive automation and

multicloud service management, certain tickets such as provisioning

environments or changing user access can be handled automatically —

saving IT labor and accelerating resolution for end users.

› Streamline agent productivity by reducing labor per ticket by 15%

to 20%, saving $2.2 million. BMC Helix ITSM helps enterprises

analyze the efficiency of the service desk and identify opportunities for

improvement. Submitted tickets feature more complete and accurate

information, and combined with better routing, agents spend less time

gathering information and waste less time on tickets requiring another

agent. Further, cognitive classification and multicloud brokering reduces

manual labor for tickets, accelerating resolution.

› Improve end-user productivity for submitting and managing tickets,

saving $4.0 million. BMC Helix Digital Workplace provides an easy-to-

use, centralized ticket request portal to submit information more

efficiently. Users face less confusion, spend less time on the phone

submitting a ticket, and can have fewer interactions throughout ticket

resolution with more complete, consistent requests. End users saved an

average of 15 minutes per ticket across an estimated 12 tickets per year,

leading to an average time savings of 3 hours per year, per user.

› Avoid costs for legacy on-premises solutions, saving $632K. By

adopting BMC Helix, organization no longer need to pay prior licensing

or invest in on-premises servers. Additionally, organizations can

redeploy systems administration labor to other activities by moving to

the cloud, which can result in significant labor savings that could

otherwise approach the on-premise hardware costs themselves.

Unquantified benefits. The interviewed organizations also experienced

the following benefits that could not be quantified in this study:

› Improve end-user experience with BMC Helix Chatbot.

› Scale and modify BMC Helix cloud deployments faster, easier, and more

cost efficiently.

› Increase availability, user productivity, and satisfaction with faster ticket

resolution.

› Improve field technician responsiveness and productivity.

› Empower senior help desk staff to focus on higher value-add tasks.

› Improve service level agreement (SLA) monitoring and compliance.

› Drive productivity savings for other teams.

Flexibility. The interviewed organizations looked to other potential use

cases and outcomes, which are not quantified for this study:

› Deploy and move BMC Helix across hybrid or multicloud environments.

› Launch new or joint service offerings powered by multicloud service

management.

› Implement future functionality with ease.

› Launch additional automation for password resets.

ROI 354%

Benefits PV

$11 million

NPV $8.6 million

Payback <6 months


› Utilize BMC Helix Business Workflows for enterprise service

management to handle broader tasks and workflows beyond IT.

› Utilize BMC Helix ITSM to provide and manage direct customer support.

› Improve management of both hardware and software assets using BMC

Helix CMDB (configuration management database).

› Streamline audit compliance and reduce the risk of violations.

› Prevent issues and reduce labor to resolve change incidents.

Costs. The composite organization experiences the following three-year,

risk-adjusted PV quantified costs:

› Implementation costs of $459K. The organization deploys BMC Helix

ITSM with multicloud service management, BMC Helix Digital

Workplace, and BMC Helix Chatbot over a six-month period, dedicating

IT agents, engineers, and other cross-functional employees to

deployment and training for the new solution.

› BMC and third-party technology licensing and professional

services costs of $1.4M. Licensing includes BMC Helix ITSM with

multicloud service management, BMC Helix Digital Workplace, and BMC

Helix Chatbot. The organization employs BMC’s professional services to

help migrate data, deploy the BMC Helix capabilities, and provide

continuing support and customization as the organization updates and

enhances their environment on an ongoing basis. A small amount of

telephony costs are also incurred to support BMC Helix Chatbot

operating over an optional SMS messaging service.

› Ongoing labor costs of $570K. One systems administrator is devoted

to ongoing management of the environment, and additional FTEs devote

part of their time to building knowledge base articles, training the

chatbot, and deploying new use cases for the chatbot, automation, and

multicloud service management.

Forrester’s interviews with seven existing customers and subsequent

financial analysis found that a composite organization based on these

interviewed organizations experienced benefits of $10,978,827 over three

years versus costs of $2,419,757, adding up to a net present value (NPV)

of $8,559,070 and an ROI of 354%.

Total benefits

PV, $11.0M

Total costs PV,

$2.4M

Initial Year 1 Year 2 Year 3

Financial Summary

Payback:<6 months

$2.7M

$1.4M

$2.2M

$4.0M

$631.7K

Ticketdeflection

Agentlessticket

resolution

Agentproductivity

End userproductivity

Costavoidanceof legacy

on-premisessolution

Benefits (Three-Year)


TEI Framework And Methodology

From the information provided in the interviews, Forrester has constructed

a Total Economic Impact™ (TEI) framework for those organizations

considering implementing BMC Helix.

The objective of the framework is to identify the cost, benefit, flexibility, and

risk factors that affect the investment decision. Forrester took a multistep

approach to evaluate the impact that BMC Helix service management

solutions can have on an organization:

DUE DILIGENCE Interviewed BMC stakeholders and Forrester analysts to gather data relative to BMC Helix.

CUSTOMER INTERVIEWS Interviewed seven organizations using BMC Helix to obtain data with respect to costs, benefits, and risks.

COMPOSITE ORGANIZATION Designed a composite organization based on characteristics of the interviewed organizations.

FINANCIAL MODEL FRAMEWORK Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewed organizations.

CASE STUDY Employed four fundamental elements of TEI in modeling the impact of BMC Helix: benefits, costs, flexibility, and risks. Given the increasing sophistication that enterprises have regarding ROI analyses related to IT investments, Forrester’s TEI methodology serves to provide a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.

The TEI methodology

helps companies

demonstrate, justify,

and realize the

tangible value of IT

initiatives to both

senior management

and other key

business

stakeholders.

DISCLOSURES

Readers should be aware of the following:

This study is commissioned by BMC and delivered by Forrester Consulting. It is

not meant to be used as a competitive analysis.

Forrester makes no assumptions as to the potential ROI that other

organizations will receive. Forrester strongly advises that readers use their own

estimates within the framework provided in the report to determine the

appropriateness of an investment in BMC Helix.

BMC reviewed and provided feedback to Forrester, but Forrester maintains

editorial control over the study and its findings and does not accept changes to

the study that contradict Forrester’s findings or obscure the meaning of the

study.

BMC provided the customer names for the interviews but did not participate in

the interviews.


The BMC Helix ITSM Customer Journey

BEFORE AND AFTER THE BMC HELIX INVESTMENT

Market Overview

BMC Helix ITSM is the newest evolution of BMC’s IT service

management (ITSM) solution, which enables customers to run ITSM as a

service in the cloud with flexibility to support hybrid-cloud and multicloud

environments via containerization of core services. Interviewed

customers described how on-premises deployments often led to out-of-

date versions, significant capital expenditures for hardware, and

extensive ongoing systems administration. With BMC Helix, interviewed

customers migrated these deployments to an “as-a-service” model,

which reduced the cost and effort of upgrades and ultimately enabled the

organizations to remain up-to-date with the newest capabilities.

Market Trends: Cloud Migration

According to Forrester’s research, organizations are looking to migrate

legacy workloads not originally built for the cloud. While many

enterprises quickly embraced the cloud with workloads such as mobile

applications or retail websites, legacy systems like enterprise resource

planning (ERP) or ITSM have lagged behind. Enterprises are rapidly

exploring the possibility of migrating these systems to recognize the

potential availability, scalability, and cost-reduction benefits provided by

the cloud.

› Cloud migration is a key enterprise strategy. In surveys conducted

by Forrester with infrastructure decision makers, 90% of respondents

said they are developing a comprehensive cloud strategy over the next

12 months.1 Also, 75% of respondents stated that migrating existing

applications to cloud environments was part of their cloud strategy.2

Moreover, these respondents shared that they have begun targeting

workloads that would benefit due to location or cost model.

› Most organizations now have hybrid-cloud or multicloud

deployments. Hybrid cloud refers to the use of cloud in combination

with other cloud and non-cloud technologies, and multicloud refers

more specifically to the use of multiple cloud environments.3 These

hybrid deployments are now the norm.4 For those organizations

already leveraging at least some form of public cloud offering, 91%

report having two or more environments in place.5 Further, in

Forrester’s surveys, 77% of respondents describe their cloud strategy

as hybrid, with no single platform dominating on-premises, private

cloud, or public cloud plans.6

› Software-as-a-service (SaaS) provides agility and amplifies

benefits. According to Forrester: “Many SaaS products deliver higher

benefits faster than on-premises ones because they are easier to use

and configure. They also enable businesses to be more agile — for

instance, allowing them to introduce new business models.”7

Market Trends: Containerization

Containers can help organizations tackle the challenges of managing

hybrid-cloud environments — and in 2019, Forrester predicts them to

increasingly reshape core enterprise apps.8 Moving workloads from one

cloud to another isn't simple, and organizations are looking for ways to

manage these challenges. Containers are “stateless ways to package


applications to establish abstraction from

underlying environments.”9

They bundle applications with the libraries they

depend upon, reducing complexity and increasing

efficiency, helping to bridge the gaps between

legacy systems and new services.10 Containers

can help update applications faster and at scale,

with higher resiliency and flexibility across a wider

range of implementation options.11

Containerized applications can therefore play a

valuable role in an organization’s efforts regarding

cloud migration (moving a workload from a non-

cloud to cloud environment), portability (moving a

cloud-based workload to another cloud

environment, helping to avoid potential vendor

lock-in), and interoperability (connecting a cloud

workload or environment to other cloud or non-

cloud workloads or environments through APIs).12

In Forrester’s surveys, 63% of respondents now use containers to

support their public cloud deployments.13 Large enterprises want to

recognize the cost benefits of the cloud, while avoiding the time

investment involved in rearchitecting their applications. Containers

enable the flexibility for organizations to choose their preferred

deployment and, if public, vendor.

Market Trends: Next Steps For Service Management

Many service desks have not been forward-looking enough to anticipate,

let alone drive, disruptive changes. Process discipline and compliance

must be more agile in the digital age.14 ITSM solutions are expanding to

address the pace of innovation and provide ways to make the service

desk more agile, faster, and accurate.

› Organizations are evaluating smart chatbots to augment agent

activity. These “virtual agents” can use natural language processing to

provide real-time recommendations.15 And according to Forrester,

“automation is no longer optional for excellent customer experience —

it's mandatory.”16

› Cognitive capabilities can enhance efficiencies to under-

automated areas. Organizations are applying cognitive features to

their service operations, to accelerate request fulfilment and optimizing

workflows.

› Digital transformation heightens the importance of enterprise

service management (ESM) within the modern enterprise. As

enterprises engage in transformation efforts, both internal and external

enterprise services must also become digital. Internal corporate units,

such as human resources and facilities, typically maintain separate

systems of record specialized for their function. While robust, these

systems often do not efficiently handle service requests, which are

typically funneled to a shared inbox or handled via collaboration tools

(e.g., Sharepoint and Lotus Domino). With no intelligent way to

manage or measure these requests, they can easily be lost or

overlooked. Many enterprises are now expanding their ITSM service

platforms to handle requests across their entire organization, providing

a centralized location to manage service requests.17


Interviewed Organizations

For this study, Forrester conducted seven interviews with BMC

customers using BMC Helix ITSM along with a combination of multicloud

service management capabilities, BMC Helix Digital Workplace and BMC

Helix Chabot. Interviewed customers include the following:

Solution Requirements

Interviewed organizations identified several key solution requirements

that led to their investment in BMC Helix ITSM, BMC Helix Digital

Workplace, and BMC Helix Chatbot:

› Improve user experience. Organizations aimed to simplify the

process for end users, replacing multiple separate (and potentially

confusing) portals, emails, and phone numbers with a centralized

portal for all requests. They looked to knowledge base articles, self-

service forms, and chatbots to empower users to get what they need

themselves instantly without waiting for agents. Finally, they aimed to

improve the routing and resolution of tickets to minimize the effort and

interactions required of end users and to get the tickets resolved faster.

The director of service management at an education

organization shared: “The key driver [for our investment in

BMC Helix] is the customer service experience. Reducing

errors or saving time is a side benefit, we’re not using that as

the primary prioritization. What we’re looking at is finding the

best way to improve the experience and connect the user for

fulfilment as efficiently as possible.”

The director of service management for an IT services

organization elaborated on similar ambitions: “In the past,

[tickets] went through email and different approval systems in

INDUSTRY REGION INTERVIEWEE SERVICE DESK STATISTICS

Professional services

Global • VP of IT sourcing

• VP of enterprise applications

• 90,000 end users

• 750,000 tickets

• 80 agents

Education United states

• Director of service management

• Associate director of IT service delivery

• Assistant director of service management


• 70,000 tickets

• 15 agents

IT services Global Customer services director


• 400,000+ tickets

• 60 agents

Healthcare United States Systems administrator


• 15,000 tickets

• 30 agents

Insurance EMEA Director of service management


• 92,000 tickets

• 7 agents

Education United States Systems administrator

• 6,000 end users

• 70,000 tickets

• 95 agents

IT services EMEA Director of service management • 66,000 tickets

• 200 agents

“The key driver [for our

investment in BMC Helix] is

the customer service

experience. Reducing errors

or saving time is a side

benefit, we’re not using that as

the primary prioritization. What

we’re looking at is finding the

best way to improve the

experience and connect the

user for fulfilment as efficiently

as possible.”

Director of service management,

education


three systems, and now it is all in [BMC Helix ITSM]. This is a

big improvement in satisfaction and efficiency for [service desk

agents] and end users. On many levels it will be better.”

› Deflect tickets. Organizations wished to deflect tickets from the

service desk through knowledge bases and chatbots, and to resolve

some submitted tickets entirely via automation.

› Improve agent efficiency. Organizations wanted to shift tickets from

phone or email to portals or chatbots to enrich requests with more

information, reduce the need for follow-up questions, and shorten

communication. They sought to route tickets to the right teams to

reduce redundant labor and avoid wasting the labor of higher tier

agents or subject matter experts for simple requests.

› Quickly scale to meet business growth. Business growth naturally

led to an increased number of end users and tickets, but IT lacked

resources to support the growth. Interviewees needed an easily

scalable service management solution they could implement quickly

and that could meet their growing business demands cost-effectively.

› Reduce upfront expenses, upgrade costs, and administrative

effort. By moving to the cloud, organizations hoped to avoid hardware

purchases, maintenance, and systems administration and aimed to

stay up-to-date with new features. They sought to shift focus from

“keeping the lights on” to higher-value work.

The customer services director for an IT services company

described their drive towards the cloud via software-as-a-

service (SaaS, “Our preference is SaaS-first for everything so

we can focus on doing what we need to do.”

An education organization’s assistant director of service

management shared: “The reality is that we are not data

center managers. There are places that do this for a living that

are purpose-driven and efficient. We're looking to reduce our

on-premises footprint and cost by taking advantage of the

efficiencies that exist in the cloud.” She continued: “We were

looking to free up staff resources for development and

innovation in operations versus the day-to-day of trying to

maintain, configure, and upgrade the service. We're restricted

on resources, so we need to help them work at a higher level.”

› Gain flexibility to tackle future challenges, such as advanced use

cases. Interviewed organizations searched for an ITSM solution which

could fit their current needs while also providing capabilities to tackle

future challenges such as supporting other workflows (such as human

resources), change management, asset management, and auditing.

An education organization’s director of service management

described: “We wanted artificial intelligence integrated with the

back-end systems and actual outcomes. A key decision in

choosing [the BMC Helix Chatbot] was our ability to prototype

and demonstrate the support on the back end. It makes our

support efforts more efficient and feasible, so we can do more

complex and varied things while supporting our users.”

› Provide solutions for the breadth of today’s and tomorrow’s

needs in a unified, continually updated, flexible solution.

Organizations sought a provider whose systems could support the full

breadth of ITSM and enterprise service management needs, so they

could continually grow and launch new capabilities easily and quickly.

“We wanted artificial

intelligence integrated with the

back-end systems and actual

outcomes. A key decision in

choosing [the BMC Helix

Chatbot] was our ability to

prototype and demonstrate the

support on the back end. It

makes our support efforts

more efficient and feasible, so

we can do more complex and

varied things while supporting

our users.”


education

“Our preference is SaaS-first

for everything so we can focus

on doing what we need to do.”

Customer services director, IT

services

“The reality is that we are not

data center managers. There

are places that do this for a

living that are purpose-driven

and efficient. We're looking to

reduce our on-premises

footprint and cost by taking

advantage of the efficiencies

that exist in the cloud.”

Assistant director of service

management, education


Choosing a technology with continual updates and modular

deployments in the cloud was essential.

The professional services’ VP of enterprise applications

explained how BMC’s Helix offerings met ESM needs: “[BMC

Helix] provides the first single, shared services platform across

functions and geographies for our organization. We used to

have many teams who didn't even have a way for people to

reach out for support, and we had multiple other help desks in

different regions. Now we have global reporting for all our

tasks such as IT, HR, payroll, and more.” He also explained

the value of the BMC Helix Chatbot deployment using IBM

Watson: “With the [BMC Helix Chatbot] built on IBM Watson,

BMC offered one platform that could be used across the entire

shared services team. The additional capabilities that [BMC

Helix] brings with every release has made it a good choice.”

Key Results

Organizations revamped their service desks and enhanced the rigor of

their information technology infrastructure library (ITIL) operations with

BMC Helix. The customer interviews revealed that organizations can

achieve a number of key results from the investment in BMC Helix:

› Enhance the end-user experience. Users found it easier to find

information, communicate with the service desk and chatbot, and

submit tickets, while also enjoying faster ticket resolution speed, better

SLAs, and reduced downtime — which previously wasted productivity

and increased frustration.

› Deflect up to 45% of tickets from the service desk. Knowledge

base articles, self-service forms, chatbots, and automation across

environments can slash the number of tickets submitted and/or that

require agent involvement.

› Improve service desk productivity for ticket resolution by up to

20%. Redundant labor is reduced through better routing, while

enriched upfront information reduces communication needs.

Automation, analytics, and service integration further accelerates

ticket resolution for service desk agents.

› Eliminate legacy licenses, hardware, and systems administration

labor. With BMC Helix available on choice of cloud, organizations no

longer need to invest in and manage an on-premises installation —

allowing employees to focus on higher-value work and helping to

keep systems up-to-date with the newest capabilities.

Composite Organization

Based on the interviews, Forrester constructed a TEI framework, a

composite company, and an associated ROI analysis that illustrates the

areas financially affected. The composite organization is representative

of the seven organizations that Forrester interviewed and is used to

present the aggregate financial analysis in the next section. The

composite organization:

› Is a global enterprise based in the United States.

› Upgrades from an on-premises, third-party ITSM solution to BMC

Helix ITSM, BMC Digital Workplace, and BMC Helix Chatbot.

Key assumptions:

• Global enterprise based in the United States that adopts BMC Helix ITSM, BMC Digital Workplace, and BMC Helix Chatbot

• 40,000 supported end users

• 12 annual tickets per user

• 480,000 total annual tickets

• 169 Tier 1 and 58 Tier 2 or Tier 3 service desk agents

• Tickets distributed with 35% at Tier 0, 55% at Tier 1, and 10% at Tier 2 or Tier 3

• 47 minutes average labor to resolve a ticket prior to Helix

• $24 per hour weighted average salary for agents

“Return on investment [for

implementing BMC Helix] was

based on efficiency, time, and

the ability to grow related to

scale. Can it help us resign

some existing customers for

an additional three or five

years? That is the kind of

things we’re looking at.”

Customer services director, IT

services


› Supports 40,000 end users who submit an average of 12 tickets per

year (both service requests and incidents). Tier 0 tickets account for

35% of ticket volume and take an average of 30 minutes of labor to

resolve by Tier 1 agents, but could be handled by users themselves.

Tier 1 tickets account for 55% of ticket volume and take an average of

45 minutes of labor, while Tier 2 and Tier 3 tickets account for 10% of

ticket volume and take an average of 120 minutes of labor to resolve.

› Employs 169 Tier 1 agents at a fully burdened rate of $22 per hour and

58 Tier 2 and Tier 3 agents at a fully burdened rate of $31 per hour.

These agents work 2,080 hours per year at a utilization rate of 80% for

tickets (1,664 hours). The other 20% of their time is devoted to other IT

projects, knowledge creation, training, and administrative tasks.

› Resolves tickets with an average of 47 minutes of labor each. Agents

work for a weighted average cost of $24 per hour, for a per-ticket cost

of approximately $17.23 (prior to adopting BMC Helix ITSM).

The following reference table provides the baseline assumptions

regarding the composite organization’s service desk, including ticket

volume, ticket type, resolution time, and agent employment.

Composite Organization And Assumptions: Reference Table

REF. METRIC CALC. VALUE

R1 Number of end users supported by service desk 40,000

R2 Annual tickets submitted per user 12

R3 Baseline ticket volume R1*R2 480,000

R4 Percent of tickets that could be resolved at Tier 0 Assumption 35%

R5 Volume of Tier 0 ticket candidates R3*R4 168,000

R6 Minutes of labor currently required to resolve Tier 0 ticket candidates Assumption 30

R7 Percent of tickets that can be resolved by Tier 1 agents Assumption 55%

R8 Volume of Tier 1 tickets R3*R7 264,000

R9 Minutes of labor required to resolve Tier 1 tickets Assumption 45

R10 Percent of tickets requiring Tier 2 or Tier 3 agents Assumption 10%

R11 Volume of Tier 2+ tickets R3*R10 48,000

R12 Minutes of labor required to resolve Tier 2+ tickets Assumption 120

R13 Minutes of labor required to resolve a ticket, weighted average (R5*R6+R8*R9+ R11*R12)/R3

47

R14 Number of T1 agents (80% utilization) (R5*R6+R8*R9) /60/1664

169

R15 Fully burdened hourly salary for Tier 1 service desk agents $35K annually + 30% burden rate

$22

R16 Number of T2 and T3 agents (80% utilization) (R11*R12)/60/1664 58

R17 Fully burdened hourly salary for Tier 2 and Tier 3 service desk agents

$50K annually + 30% burden rate

$31

R18 Weighted average service desk hourly salary (R14*R15+R16*R17) /(R14+R16)

$24

“With the BMC Helix Chatbot

built on IBM Watson, BMC

offered one platform that could

be used across the entire

shared services team. The

additional capabilities that

BMC Helix brings with every

release has made it a good

choice.”

VP of enterprise applications,

professional services


The table above shows the total of all benefits across the areas listed below, as well as present values (PVs) discounted at 10%. Over three years, the composite organization expects risk-adjusted total benefits to be a PV of almost $11 million.

24%

three-year benefit PV

$2.7 million

Analysis Of Benefits

QUANTIFIED BENEFIT DATA AS APPLIED TO THE COMPOSITE

Ticket Deflection

Organizations created unified support portals for their IT services in BMC

Helix, featuring knowledge base articles, self-service forms, and for

some, a chatbot. These self-service offerings can handle common and

simple requests (referred to in this study as Tier 0 tickets), empowering

users to quickly and easily resolve their need themselves without

involving an IT support agent. Ensuring that the information is robust,

relevant, and easily navigable is important; when done correctly, it can

deflect significant ticket volume from the service desk.

› An education organization slashed tickets with self service, as the

associate director of IT service delivery described, “Our customer base

has grown while support requests have decreased by 30% due to

launching more self-services and developing solutions that are more

intuitive to use by the user.” He continued, “Our self-service efforts and

self-help documentation in the knowledge base have greatly

empowered end users who opt to ‘fix it themselves’.”

› The VP of IT sourcing for a professional services company described

how deploying knowledge base articles led to immediate ticket

deflection, “In every area we've implemented a knowledge base article,

we have reduced tickets within three months by 10% to 15%.”

BMC Helix ITSM provides the platform for the knowledge base and its

service desk analytics can surface common requests, challenges, or

points of confusion. Organizations can then leverage these findings to

build new articles and forms, improve existing ones, or better organize or

surface content so users can find what they need as easily as possible.

› The associate director of IT service delivery for an education

organization described the value of data from BMC Helix ITSM in

building knowledge base articles: “We can now automatically classify

work requests through the use of templates. This helps improve our

metrics and our ability to know what our customers are struggling with,

which allows us to prioritize what areas to focus on for self-service

documentation and/or automation.”

Total Benefits

REF. BENEFIT YEAR 1 YEAR 2 YEAR 3 TOTAL PRESENT VALUE

Atr Ticket deflection $628,320 $1,099,560 $1,570,800 $3,298,680 $2,660,093

Btr Agentless ticket resolution $352,836 $705,672 $705,672 $1,764,180 $1,434,142

Ctr Agent productivity $633,071 $1,092,733 $1,017,889 $2,743,693 $2,243,359

Dtr End-user productivity $1,224,000 $1,836,000 $1,836,000 $4,896,000 $4,009,497

Etr Cost avoidance of legacy on-premises solution

$308,275 $222,775 $222,775 $753,825 $631,736

Total benefits (risk-adjusted) $3,146,502 $4,956,740 $5,353,136 $13,456,378 $10,978,827

Ticket deflection: 24% of total benefits

“In every area we've

implemented a knowledge

base article, we have reduced

tickets within three months by

10% to 15%.”

VP of IT sourcing,



Along with BMC Digital Workplace, the BMC Helix Chatbot helps users

navigate self-service offerings, finding the information they need more

quickly and easily, and ultimately amplifying ticket deflection from the

service desk. The virtual agent provides users with a more pleasant,

conversational experience that is available at all hours and can be easily

accessed (over SMS, for example), and it can also automatically resolve

certain issues through automation or aid in ticket submission.

› Deflecting basic tickets was essential to the professional services

company when choosing BMC Helix Chatbot, as the VP of IT

explained: “The primary driver for [BMC Helix Chatbot] was to move

our staff away from the rudimentary work they were doing and improve

their productivity.” The organization’s initial chatbot deployments

included 16 standard human resources queries for policy and

procedure questions such as insurance, benefits, promotions, and

relocation. They then deployed transactional capabilities such as

checking balances or managing applications, and are now deploying a

range of IT-specific functions with a major focus on providing and

revoking access to applications and infrastructure.

› By implementing BMC Helix Chatbot, an education organization’s

service performance has caught the attention of other departments

seeking call deflection, as the assistant director of service

management described: “Since launching the [BMC Helix Chatbot],

several other departments have requested to add their frequently

asked questions to the chatbot to trim down their call volume. In the

long run, it won't just serve IT, it will serve the organization as a whole.”

› The professional services’ VP of IT sourcing shared: “We did not have

ITIL processes before [BMC Helix ITSM], so agents took a lot of time

to diagnose problems and determine the process to take. Now, users

are immediately shown a knowledge base when submitting tickets and

tickets have gone down as a result. Further, users can now select the

right type of ticket which helps route tickets to the right team. Finally,

we have consolidated the services to equalize work across teams.”

Forrester’s financial evaluation of this benefit assumes the following:

› Thirty-five percent of the organization’s 480,000 tickets (168,000) can

be considered Tier 0, meaning that they could instead be solved by the

user themselves before becoming a ticket with knowledge base

articles or the BMC Helix chatbot, and no agent interaction.

› Tier 1 agents resolve these tickets, at an average fully burdened hourly

salary of $22 (approximately $35,000 per year burdened at 30% for

benefits and other costs of employment).

› The average agent labor per Tier 0 ticket is 30 minutes.

› As the knowledge base is launched, promoted, and enhanced, and as

the chatbot expands and helps drive users to the appropriate articles, it

deflects 30%, 50%, and 70% of Tier 0 tickets in years 1 through 3,

respectively — effectively deflecting 24.5% of overall ticket volume.

› As the chatbot is launched, promoted, and enhanced, it deflects 10%,

20%, and 30% of Tier 0 tickets in Year 1, Year 2, and Year 3,

respectively — effectively deflecting 10.5% of overall ticket volume.

Forrester recognizes that impacts will vary depending upon the unique

characteristics of every organization. Specific risk considerations include:

› Existing IT ecosystem and any pre-existing knowledge base.

Tickets deflected by

knowledge base articles:

24.5% deflection

Tickets deflected by the

BMC Helix Chatbot:

10.5% deflection

“Our customer base has grown

while support requests have

decreased by 30% due to

launching more self-services

and to developing solutions

that are more intuitive to use

by the user.”

Associate director of IT service

delivery, education

“Since launching the chatbot,

several other departments

have requested to add their

frequently asked questions to

the chatbot to trim down their

call volume. In the long run, it

won't just serve IT, it will serve

the organization as a whole.”




Impact risk is the risk that the business or technology needs of the organization may not be met by the investment, resulting in lower overall total benefits. The greater the uncertainty, the wider the potential range of outcomes for benefit estimates.

13%


$1.4 million

› Complexity, severity, and overall volume of tickets.

› Internal talent, focus, and implementation of knowledge base and

chatbot capabilities.

› The average salary and level of service desk employees.

› Training and end-user adoption of BMC Helix technologies.

To account for these risks, Forrester adjusted this benefit downward by

15%, yielding a three-year risk-adjusted total PV of $2,660,093.

Agentless Ticket Resolution

BMC Helix ITSM provide automation capabilities that can allow certain

tickets to be handled entirely without the involvement of a live agent. This

can be effective for certain tasks such as provisioning or shutting down

services or environments, updating passwords, or editing other relevant

information. Brokering tickets from the standard portal to other services

such as project management, CRM, sales, voice, or cloud tools enables

a user to submit a ticket easily while ensuring it gets to the correct

service, sets up the correct credentials, and passes back the end result

for the user as needed – all with little to no agent intervention.

Interviewed organizations are in early days of agentless automation,

especially across multicloud environments, but are beginning to

experiment and finding early wins. While they may only have one or a

Ticket Deflection: Calculation Table

REF. METRIC CALC. YEAR 1 YEAR 2 YEAR 3

A1 Volume of Tier 0 ticket candidates R5 168,000 168,000 168,000

A2 Minutes of labor per ticket R6 30 30 30

A3 Fully burdened hourly salary for Tier 1 agents R15 $22 $22 $22

A4 Percent deflected by self service 30% 50% 70%

A5 Tickets deflected by self service A1*A4 50,400 84,000 117,600

A6 Hours saved via self service A2*A5/60 25,200 42,000 58,800

A7 Self-service labor cost savings A3*A6 $554,400 $924,000 $1,293,600

A8 Percent deflected by virtual agent 10% 20% 30%

A9 Tickets deflected by virtual agent A1*A8 16,800 33,600 50,400

A10 Hours saved via virtual agent A2*A9/60 8,400 16,800 25,200

A11 Virtual agent labor cost savings A3*A10 $184,800 $369,600 $554,400

At Ticket deflection A7+A11 $739,200 $1,293,600 $1,848,000

Risk adjustment ↓15%

Atr Ticket deflection (risk-adjusted) $628,320 $1,099,560 $1,570,800

Three-year, risk-adjusted present value of ticket deflection: $2,660,093

Agentless ticket resolution: 13% of total benefits


couple of tasks automated, they see significant potential for a broad

array of other services to be automated – promising huge benefits to

users who would no longer wait days or weeks for their request, and

major savings for agents who no longer would work on those tickets.

› The professional services company automated over 16 use cases,

eliminating almost 50,000 tickets per year and allowing the reallocation

of eight agents to focus on more valuable work. Examples including

setting up printers, installing VPNs, establishing or revoking application

access, provisioning access to specific buildings when a user is

traveling, or changing permissions as a user changes their job role.

› An education organization enabled users to instantly set up their

devices on the wireless network with no agent involvement – a task

that would have taken days to be resolved, causing frustrating delays

for end users. The associate director of IT service delivery elaborated:

“We've piloted automating the provisioning of specific end-user devices

to our wireless network. Three-to-five day delays were changed to just-

in-time provisioning.” In a separate initiative, the organization also

automated voice service tasks: “End users can now provision their own

voice services, manage voice-related passwords, and customize their

voice service functionality. . . . We've eliminated our communication

services team [with multicloud service management].”

› The insurance company can now automatically provision new users by

leveraging integrations with a variety of applications and web services.

Instead of getting a spreadsheet and manually conducting these tasks,

it all can happen automatically – saving significant labor.


› Fifty-five percent of the organization’s 480,000 tickets (264,000) can be

solved by Tier 1 agents (not including Tier 0 tickets).

› Tier 1 agents are paid an average fully-burdened hourly salary of $22

(approximately equivalent to $35,000 per year burdened at 30% for

benefits and other costs of employment).

› The average agent labor per Tier 1 ticket is 45 minutes.

› As automation and multicloud service management is deployed and

expanded, 9% of Tier 1 tickets in Year 1 and 18% of Tier 1 tickets in

Year 2 and Year 3 can be solved entirely via automation without any

agent involvement – reducing the overall ticket volume handled by

agents by approximately 10%.



› The other technologies in use as part of the IT stack and their potential

for integration and automation.

› Nature of tickets including complexity, severity, potential for

automation, and overall volume.

› Internal talent and implementation of multicloud service management

integrations and other forms of automation.


› Training and end-user adoption of BMC Helix technologies.


10%, yielding a three-year risk adjusted total PV of $1,434,142.

Tickets handled by

automation without any

agent interaction:

10% automated

“We've piloted automating the

provisioning of specific end-

user devices to our wireless

network. Three-to-five day

delays were changed to just-

in-time provisioning.”


delivery, education

“End users can now provision

their own voice services,

manage voice-related

passwords, and customize

their voice service

functionality.”


delivery, education


20%


$2.2 million

Agent Productivity

Organizations also leverage BMC Helix ITSM to further streamline their

service desks and improve productivity for the remaining tickets. The

interviewed IT services organization anticipates at least a 10%

improvement in productivity, while an education organization’s associate

director of IT service delivery described achieving significant savings:

“We've been able to reallocate 17% of our agents to proactive problem

management over the last three years. We also saw a shift in work

patterns that allow our help desk agents to spent 20% more of their time

working on developing knowledge articles, project work, and other

operational duties not directly related to support.” To improve efficiency

and achieve such gains, organizations use BMC Helix ITSM to:

› Shift tickets from phone or email to standard forms. Before BMC

Helix ITSM, organizations frequently received tickets via phone and

email. Requests lacked context and often required further

investigation. With BMC Helix, requests are submitted via a consistent

portal (via the chatbot or Advanced Digital Workplace), which collects a

minimum required standardized amount of information. Having richer

context in service requests reduces the amount of time agents must

spend communicating with the end user and investigating issues.

› Automatically categorize and route tickets to the correct

resources or teams. This helps decrease the calls and emails that

users typically send directly to their go-to support agents (often a

higher tier), preventing that agent from wasting time on basic work.

BMC Helix ITSM helps the organization ensure that tickets had rich

context for resolution, resulting in fewer tickets escalating to Tier 2 or

Tier 3 workers. The associate director of IT service delivery for an

education organization described, “Using work request templates in

[BMC Helix ITSM] has improved ticket routing to the correct team.”

› Reduce manual rekeying and ticket management — even across

environments and service providers. Integrating environments with

Agentless Ticket Resolution: Calculation Table


B1 Volume of Tier 1 tickets R8 264,000 264,000 264,000

B2 Minutes of labor required to resolve Tier 1 tickets R9 45 45 45

B3 Fully-burdened hourly salary for Tier 1 agents R15 $22 $22 $22

B4 Percent resolved entirely via automation 9% 18% 18%

B5 Tickets resolved entirely via automation B1*B4 23,760 47,520 47,520

B6 Hours saved via automation B2*B5/60 17,820 35,640 35,640

Bt Agentless ticket resolution B3*B6 $392,040 $784,080 $784,080


Btr Agentless ticket resolution (risk-adjusted) $352,836 $705,672 $705,672

Three-year, risk-adjusted present value of agentless ticket resolution: $1,434,142

Agent productivity: 20% of total benefits


BMC Helix ITSM’s multicloud service management capabilities enables

tickets to be seamlessly passed between systems without re-entering

data and simplifies the process of brokering and monitoring tickets.

Automation also helps accelerate certain tasks, and by collecting ticket

information from users via forms rather than emails or calls, agents

spent less time entering information — simultaneously reducing the

risk of wrongly entered data.

An education organization built automation with BMC Helix

Digital Workplace and BMC Helix ITSM’s multicloud service

management capabilities, as the assistant director of service

management explained: “We are resource-constrained, so

automating processes behind the scenes is very appealing.

We need to be able to cut across decentralized environments

so we can integrate systems to speak to each other and pass

tickets without the end user seeing any difference.”

› Enable agents to update, monitor, and resolve tickets from mobile

devices. Empowering service agents to work on-the-go improves

productivity as agents can review information when away from the

main service desk — especially benefiting deskside or field assistance.

One education organization’s systems administrator saw huge

impacts, “The biggest benefit we received was that our techs

were able to be mobile. They didn’t have to be tethered to

desktops or laptops to get their service tickets. Before, they

were always constantly going back to their desk to get their list

of what was going on [at their job sites].”

› Scale and streamline IT service desk operations. Organizations

create key performance indicators (KPIs) and dashboards to monitor

the effectiveness of the service desk in a consolidated view. They also

complete system performance checks with BMC Helix ITSM and

analyze the frequency, type, and complexity of tickets — using this

information to adequately provision service desk resources.

› Forecast user ticket demands and mold hiring strategy. Better

understanding of needs and capabilities can help identify key skillsets

and potentially prevent excess hiring of Tier 2 and Tier 3 resources.


› The remaining Tier 0 tickets not deflected (as noted in the first benefit

category) still require agent involvement for resolution — 100,800

tickets in Year 1, 50,400 tickets in Year 2, and 0 tickets in Year 3.

› The remaining Tier 1 tickets not automated (as noted in the previous

category) still require agent involvement for resolution — 240,240 in

Year 1 and 216,480 tickets in Year 2 and Year 3.

› The remaining 10% of the organizations’ overall ticket volume, 48,000

tickets, require escalation to Tier 2 or Tier 3 agents.

› The average agent labor per Tier 0 ticket is 30 minutes, per Tier 1

ticket is 45 minutes, and per Tier 2 and Tier 3 ticket is 120 minutes.

› The average fully burdened hourly salary for Tier 1 agents is $22 and

for Tier 2 and Tier 3 agents is $31.

› Tier 1 agents achieve productivity improvements of 8% in Year 1 and

15% in Year 2 and Year 3.

› Tier 2 and Tier 3 agents achieve productivity improvements of 10% in

Year 1 and 20% in Year 2 and Year 3.

“The biggest benefit that we

received was that our techs

were able to be mobile. They

didn’t have to be tethered to

desktops or laptops to get their

service tickets. Before, they

were always constantly going

back to their desk to get their

list of what was going on [at

their job sites].”

Systems administrator,

education

“It’s a more efficient procedure

to resolve the tickets [with

BMC Helix ITSM]. We can

push more information on how

to auto-solve their request.

There are portals to manuals

for when they don’t know or

remember how to access it,

that helps us to solve more

tickets automatically.”


insurance




› Nature of tickets including complexity, severity, potential for

automation, and overall volume.

› Internal talent, training, and end-user adoption of BMC Helix.




Agent Productivity: Calculation Table


C1 Volume of Tier 0 tickets not deflected R5-A5-A9 100,800 50,400 0

C2 Minutes of labor required to resolve Tier 1 tickets R6 30 30 30

C3 Fully burdened hourly salary for Tier 1 agents R15 $22 $22 $22

C4 Labor hours dedicated to Tier 0 ticket resolution C1*C2/60 50,400 25,200 0

C5 Percent reduction in agent labor per Tier 0 ticket 8% 15% 15%

C6 Reduction in Tier 0 labor hours C4*C5 4,032 3,780 0

C7 Tier 0 labor cost savings C6*C3 $88,704 $83,160 $0

C8 Volume of Tier 1 tickets not resolved via automation R8-B5 240,240 216,480 216,480

C9 Minutes of labor required to resolve Tier 1 tickets R9 45 45 45

C10 Labor hours dedicated to Tier 1 ticket resolution C8*C9/60 180,180 162,360 162,360

C11 Percent reduction in agent labor per Tier 1 ticket 8% 15% 15%

C12 Reduction in Tier 1 labor hours C10*C11 14,414 24,354 24,354

C13 Tier 1 labor cost savings C12*C3 $317,108 $535,788 $535,788

C14 Volume of Tier 2+ tickets R11 48,000 48,000 48,000

C15 Minutes of labor required to resolve Tier 2+ tickets R12 120 120 120

C16 Fully burdened hourly salary for Tier 2 and 3 agents R17 $31 $31 $31

C17 Labor hours dedicated to Tier 2+ ticket resolution C14*C15/60 96,000 96,000 96,000

C18 Percent reduction in agent labor per Tier 2+ ticket 10% 20% 20%

C19 Reduction in Tier 2+ labor hours C17*C18 9,600 19,200 19,200

C20 Tier 2+ labor cost savings C19*C16 $297,600 $595,200 $595,200

Ct Agent productivity C7+C13+C20 $703,412 $1,214,148 $1,130,988


Ctr Agent productivity (risk-adjusted) $633,071 $1,092,733 $1,017,889

Three-year, risk-adjusted present value of agent productivity: $2,243,359


37% three-year benefit PV

$4.0 million

End-User Productivity

BMC Helix ITSM, BMC Helix Digital Workplace, and BMC Helix Chatbot

provides users with intuitive self service on any device. Prior to BMC

Helix, users struggled to find the correct information and reach support,

navigating multiple confusing sites, forms, phone numbers, and emails.

Organizations replaced these redundant, confusing processes with

unified ticketing systems on BMC Helix to allow users to easily find

information (such as FAQs or directions), simplify ticket submission, and

save users time by pre-populating information, attaching photos, and

identifying the necessary information upfront. Users can find information,

submit tickets, and monitor status on-the-go — enabling them to submit

tickets faster and with more ease. Since tickets have more detail, fewer

interactions are required between agents and end users to gather

additional information during remediation. Further, agents can engage

users more easily through these tools — reducing the time required for

checking on ticket status and providing follow-up information. And with

the knowledge base, chatbots, and automation, users can often solve

their issues immediately — preventing frustrating downtime while they

wait for a response from IT.

› The healthcare systems administrator described, “[BMC Helix ITSM]

saves time for the end user to submit requests and get responses

because they are entering specific questions related to their issues.

With the legacy submissions, a large majority of tickets we received

would say “‘computer broken’ or ‘can’t do my job’ and the service desk

must then call the user back. It might take a week to get back to the

user, and then that’s a whole week that the user has had their ticket

open and nothing has happened with it.”

› The director of service management for an insurance company shared:

“It’s easier for our users to request something from us. Before using

[BMC Helix Digital Workplace], there were several users who would try

to phone in to IT and try to solve incidents with our agents. Now it is

easier for them to use the application and much easier to reduce the

total request time.”

› An education organization’s associate director of IT service delivery

described the benefit of self service: “Our self-service efforts and self-

help documentation in our knowledge base have greatly empowered

our end users who opt to fix it themselves. For example, end users can

now provision their own voice services, manage voice-related

passwords, and customize their voice service functionality.” The

associate director provided another example, “[One of our multicloud

service management integrations] eliminates the wait time for students

to register their device on our Wi-Fi networks, as it happens

immediately and does not require the processing of a ticket.”

Summarizing the impact: “We've decreased turnaround time and

empowered end users to help themselves to the services they want on

their schedule, not just during our IT operating hours.”


› The service desk supports 40,000 end users that submit an average of

12 tickets per user, per year.

› By deploying clear ticket submission processes, the knowledge base,

and chatbot, end users are able to submit tickets faster, easier, and

with better information upfront. They also save time on reduced back-

and-forth interactions with IT agents during the ticket resolution

End-user productivity: 37% of total benefits

“BMC Helix ITSM saves time

for the end user to submit

requests and get responses

because they are entering

specific questions related to

their issues. With the legacy

submissions, a large majority

of tickets we received would

say ‘computer broken’ or ‘can’t

do my job’ and the service

desk must then call the user

back. It might take a week to

get back to the user, and then

that’s a whole week that the

user has had their ticket open

and nothing has happened

with it.”


healthcare


process. End users save on average 10 minutes per ticket in Year 1,

and 15 minutes per ticket in Year 2 and Year 3.

› End-user positions and salaries vary greatly with an average fully

burdened salary of $36 per hour, near the United States’ average

hourly rate of $36.63 as identified US Bureau of Labor Statistics in its

2018 Employer Costs for Employee Compensation report.18

› Only 50% of the time saved for end users is recaptured by the

business for increased value of productivity.



› Existing channels for IT support and the complexity and clarity of the

ticket submission process.

› The average number of tickets per end user.

› The breakdown of ticket types, complexity, and severity.

› The average salary per end user.



End-User Productivity: Calculation Table


D1 Number of end users supported by service desk R1 40,000 40,000 40,000

D2 Annual tickets submitted per user R2 12 12 12

D3 Minutes reduced per ticket for submission and communication

10 15 15

D4 Hours saved per end user D2*D3/60 2 3 3

D5 Total hours of time savings for end users D1*D4 80,000 120,000 120,000

D6 Average end user fully burdened hourly salary US Bureau of Labor Statistics, 2018

$36 $36 $36

D7 Amount of hours recaptured for business productivity

50% 50% 50%

Dt End-user productivity D5*D6*D7 $1,440,000 $2,160,000 $2,160,000


Dtr End-user productivity (risk-adjusted) $1,224,000 $1,836,000 $1,836,000

Three-year, risk-adjusted present value of end-user productivity: $4,009,497


6%


$631,736

Cost Avoidance Of Legacy On-Premises Solution

Deploying a cloud-based, SaaS version of BMC Helix ITSM in

replacement of a on-premises ITSM deployment offers significant

efficiencies. Systems administration is vastly simplified, with much less

effort required to install, update, and maintain the previous solution.

Rather than investing in hardware, maintenance, and other on-premises

costs like space and heating or cooling, BMC Helix is available on an

organization’s preferred cloud provider — either BMC’s cloud services,

an alternative public provider, or on private cloud or on-premises. As

BMC Helix is containerized, it offers portability to change providers or run

it across a hybrid- or multicloud environment. These cost savings and

efficiencies allowed organizations to more quickly deploy BMC Helix than

prior ITSM solutions, keep it up-to-date with minimal cost, deploy new

modules as desired, and scale flexibly as needed by the organization.


› BMC Helix replaces a legacy on-premises ITSM solution that cost

$150,000 annually and avoids upgrading six servers in Year 1 at an

estimated price of $15,000 each had it not moved to the cloud.

› The organization is able to reallocate one systems administrator from

management of the on-premises environment to other business tasks,

saving their fully loaded burdened salary of $84,500 per year.



› Prior ITSM solution and related licensing and hardware costs.

› Complexity of the environment and need for systems administration.


5%, yielding a three-year risk-adjusted total PV of $631,736.

Cost Avoidance Of Legacy On-Premises Solution: Calculation Table


E1 Avoided legacy ITSM solution licensing costs $150,000 $150,000 $150,000

E2 Avoided server purchases 6

E3 Price of server $15,000

E4 Hardware cost avoidance E2*E3 $90,000 $0 $0

E5 Reallocated systems administrators 1 1 1

E6 Fully-burdened systems administrator annual salary $84,500 $84,500 $84,500

E7 Labor cost avoidance E5*E6 $84,500 $84,500 $84,500

Et Cost avoidance of legacy on-premises solution E1+E4+E7 $324,500 $234,500 $234,500


Etr Cost avoidance of legacy on-premises solution (risk-adjusted)

$308,275 $222,775 $222,775

Three-year, risk-adjusted present value of cost avoidance of legacy on-premises solution: $631,736

Cost avoidance of legacy on-premises solution: 6% of total benefits

“Your cost benefit comes from

being on-demand. You’re not

paying for a tier 3 or 4 system

administrator to keep your

systems up and running as if

you were on-premises. BMC’s

servers are up. They are doing

their own upgrades.”


healthcare


Unquantified Benefits

Interviewees also identified a variety of benefits achieved with BMC Helix

that could not be quantified in this study but were important factors in

determining success. BMC Helix helps these interviewed organizations:

› Improve end-user experience with BMC Helix Chatbot. The solution

provides an easy, conversational way for users to find the information

they need or submit tickets, at any time or on any device.

For one education organization, deploying the BMC Helix

Chatbot is all about user experience, as the assistant director

of service management described: “The immediate initiative for

piloting the BMC Helix Chatbot was user experience. Because

we are so diversified as an [organization], everyone has their

own websites and elements. Our users have to identify what

the issue is, figure out what division of the organization owns

that element, then figure out how to put in a ticket. We want to

move the onus of that issue off the user and move it onto us.”

It resonated with users, as she explained: “We surveyed pilot

chatbot users and found that 88% of respondents enjoyed it

and wanted it as an enterprise service.” She elaborated, “Our

end users don't care that different requests are handled by

different groups. We looked at artificial intelligence to blur the

lines between these divisions by interacting with users and

helping them submit the ticket in the correct way.”

The professional services company is currently expanding its

virtual agent to a new region, and expects to automatically

handle 10% to 15% of IT tickets in the next six months using

BMC Helix Chatbot. Within three to five years, it aims for 100%

of tickets to be created or raised with the virtual agent —

replacing today’s multiple channels of a mobile app, SMS,

BMC Helix Digital Workplace catalog, email, and phone. The

VP of IT sourcing described, “We see the [BMC Helix Chatbot]

becoming the main operating channel for users.” End users

are responding favorably, with a recent survey from one

human resources pilot showing 75% satisfaction.

› Scale and modify the BMC Helix cloud deployment faster, easier,

and cheaper. Upgrading versions and adding modules costs less and

requires much less effort to implement than before, helping stay

current and adapt to changing business needs. Furthermore,

environments can be scaled to accommodate changing user and ticket

volume without the need to purchase hardware (or risk excess capacity

should volume decrease). One interviewee described, “We were able

to increase velocity of deploying and integrating with apps [with BMC

Helix ITSM].” The insurance company that was interviewed for this

study cited significant benefits for major system upgrades: while the

previous upgrade required six months for seven FTEs, upgrading the

BMC Helix environment from 9.0 to 9.1 required less than one week for

one employee — and they believe it will continue to get easier.

› Increase availability, user productivity, and satisfaction with faster

ticket resolution. While this study quantifies reduced ticket

submission and administration labor, faster resolution drives additional

benefits — ending downtime faster, getting users their services to start

work more quickly, and otherwise improving end users’ experience with

IT. For instance, the healthcare company interviewed for this study was

“Our end users don't care that

different requests are handled

by different groups. We looked

at artificial intelligence to blur

the lines between these

divisions by interacting with

users and helping them submit

the ticket in the correct way.”



“We’ve seen a lot of

improvements in the timing of

[BMC Helix ITSM] updates.

Before, we needed about six

months to update from one

version to another. Now, [BMC

Helix ITSM] technicians

update the cloud and it’s only

two conference calls and one

person’s week of work. It has

been really, really easy for us

to update [BMC Helix ITSM]

because we moved to the

cloud.”


insurance

“We surveyed pilot chatbot

users and found that 88% of

respondents enjoyed it and

wanted it as an enterprise

service.”




able to slash its mean time to resolve (from beginning to end) by three

full days with BMC Helix ITSM.

Better routing with more complete data helps agents prioritize

critical incidents, resolving them before turning their attention

to lower priority issues. Critical incidents often cause downtime

which plagues end users with frustrating wasted productivity.

BMC Helix helps service desks: 1) lower the percentage of

issues causing downtime; 2) minimize the number of affected

users; and 3) shorten downtime periods.

The time waiting for a service request may cause lost

productivity, especially when that request involves needing a

new application, a machine repair, or some other service that

is essential to the user’s work. Turning these requests around

faster therefore improves productivity and further results in an

improved experience for users.

› Improve field technician responsiveness and productivity.

Technicians can go from one job to the next without returning to their

office site by accessing complete information directly on their mobile

devices. They add photos and updated tickets on-the-go, improving the

company’s data records and downstream productivity. Since tickets

contain more complete data upfront, techs are more likely to arrive at

the job site with all the correct equipment, avoiding wasted trips back

and forth. These factors combine to enable technicians to get to job

sites faster and complete their work with reduced labor, resulting in

heightened user productivity and customer satisfaction. An education

organization interviewed for this study shared that, with BMC Helix

ITSM, “we can dispatch a lot faster.”

› Empower senior help desk staff to focus on higher value-add

tasks. Tier 2, 3, and beyond, gain time to tackle key IT challenges and

work on strategic initiatives proactively — potentially empowering them

to improve data security, develop further automation, or even to identify

new business opportunities.

› Improve service level agreement (SLA) monitoring and

compliance. BMC Helix helps IT teams analyze their service desk

speed and effectiveness, even across multicloud environments and

multiple service providers. While automation and productivity

improvements increase SLA performance, organizations can also more

quickly identify SLA breaches and resolve them quickly. The VP of IT

sourcing for a professional services company shared: “We improved

the monitoring and tracking of deliverables and SLAs. We've improved

SLA consistency; we had pockets of inconsistent delivery where we

only met the SLA between 75% to 80% of the time. In the six months

since deploying [BMC Helix ITSM], our SLAs have crossed 90% due to

better tracking and monitoring as our teams can nail down what

caused an SLA to be breached.” An education organization’s assistant

director of service management shared how BMC Helix ITSM’s

multicloud service management capabilities could improve SLAs, “It

would reduce the likelihood of IT support agents keying errors.”

› Drive productivity savings for other teams. Both BMC Helix ITSM

with multicloud brokering features and BMC Helix Business Workflow

for enterprise service management deployments can help deflect calls

and improve productivity for teams outside of IT. Organizations can

save time for a range of teams such as human resources, facilities,

and catering.

“We improved the monitoring

and tracking of deliverables

and SLAs. We've improved

SLA consistency; we had

pockets of inconsistent

delivery where we only met

the SLA between 75% to 80%

of the time. In the six months

since deploying [BMC Helix

ITSM], our SLAs have crossed

90% due to better tracking and

monitoring as our teams can

nail down what caused an

SLA to be breached.”

VP of IT sourcing,



Flexibility, as defined by TEI, represents an investment in additional capacity or capability that could be turned into business benefit for a future additional investment. This provides an organization with the "right" or the ability to engage in future initiatives but not the obligation to do so.

Flexibility

The value of flexibility is clearly unique to each customer, and the

measure of its value varies from organization to organization. There are

multiple scenarios in which a customer might choose to implement BMC

Helix and later realize additional uses and business opportunities.

Interviewees identified potential use cases for the core system including:

› Deploy and move BMC Helix across hybrid- or multicloud

environments. BMC Helix’s containerized architecture allows

organizations to use it on BMC’s cloud, other public clouds, private

cloud, and on-premises environments — and to run it across multiple

environments or shift its location as needed in the future.

› Launch new or joint service offerings powered by multicloud

service management. The customer services director for an IT

services company shared, “We're looking at using [BMC Helix ITSM’s]

multicloud service management capabilities for different types of

service offerings or partnerships.” The organization hopes to increase

sales through joint bids that would not be possible without these

integration capabilities.

› Implement future functionality with ease. BMC’s regular updates

require minimal-to-no labor to deploy, ensuring today’s buyers get

tomorrow’s features and remain competitive. The professional services

VP of IT shared, “We are very excited with the new functionalities

[BMC Helix] provides with each upgrade; we look forward to these

updates to each new part of [BMC Helix] because it helps us transform

our business and continually improve.” An education organization’s

systems administrator shared: “If you can dream it, you can build it on

[BMC Helix]. When you buy their product, there is so much more in

that box than what you think, and people don't take the opportunity to

use what they have.” For the insurance company, ITSM-related apps

could be developed and deployed faster, as the director of service

management described, “We were able to increase velocity of

deploying and integrating with apps [with BMC Helix].”

› Launch additional automation for password resets. Eliminating

agent labor for these tickets could offer massive savings, as the

associate director of IT service delivery for an education organization

shared, “We hope to automate our password resets in the future [with

BMC Helix Chatbot], which would further reduce our tickets by

probably 25%.”

› Utilize BMC Helix Business Workflows for enterprise service

management to handle broader tasks and workflows beyond IT.

The system could be used internally to manage a variety of key tasks

for business units such as facilities, legal, marketing, and fulfillment.

One interviewed organization previously used a spreadsheet for

tracking their food service equipment. They had no idea how much

they spent on equipment or repairs, or even which items might be

under warranty, and found the process to track and manage repairs to

be very time-consuming. They turned to BMC Helix ITSM forms to

reduce this administrative labor and ultimately reduce the cost of food

service equipment and maintenance.

› Utilize BMC Helix ITSM to provide and manage direct customer

support. Customers could submit requests and issues via a modern

BMC Helix Digital Workplace solution, while agents use the BMC Helix

ITSM system to manage and resolve these externally-facing issues.

“If you can dream it, you can

build it on [BMC Helix ITSM].

When you buy their product,

there is so much more in that

box than what you think, and

people don't take the

opportunity to use what they

have.”


education

“We are very excited with the

new functionalities [BMC

Helix] provides with each

upgrade; we look forward to

these updates to each new

part of [BMC Helix] because it

helps us transform our

business and continually

improve.”

VP of IT sourcing,



This has the potential to improve customer experience and satisfaction

by responding and resolving their requests more quickly.

Multiple interviewees identified that they utilized additional BMC Helix

products integrated into their overall solution. Significant positive impacts

were achieved utilizing these modules and extensions, including:

› Improved management of both hardware and software assets

using BMC Helix CMDB (configuration management database).

Organizations can reduce labor to manage assets. More complete data

with better accuracy can enable better forecasting and ordering and

help companies to reduce excess or redundant configuration assets.

The insurance company interviewed for this study utilized BMC

Helix’s asset management functionality to track and manage

hardware assets. They previously sent spreadsheets back and

forth; but with 300 locations, exorbitant administrative effort

was incurred to share information between site staff and the

central office. BMC Helix software enabled them to move their

asset tracking to a centralized, online-accessible database.

Data was also more accurate and up-to-date, ultimately

helping the company to predict and control hardware costs.

This saved 12 hours per year, per location along with two

hours per week for a central administrator, adding up to over

3,700 hours of labor saved annually.

A healthcare company, interviewed for this study, reduced

labor across a three-person team by 30% by moving hardware

asset management to BMC Helix CMDB. This system replaced

a legacy discovery tool which caused redundancy and

duplicates, as one interviewee described, “The number of

duplicates was outrageous; with over 100,000 hardware

assets, we averaged three duplicates for every item.” BMC

Helix CMDB enabled the company to establish a true source of

information that cleanly integrated with other systems. It was

easier to create and update assets, and ultimately, employees

achieved significant time savings for entry, normalization, and

reconciliation. The company further cut out steps and

improved data quality by replacing spreadsheets.

In the future, the healthcare company plans to utilize the BMC

Helix CMDB data for asset life cycle auditing and software

configuration management. While asset life cycles are

currently tracked manually in a huge spreadsheet, in the

future, this data will enable the company to be more accurate

in ordering. It will drastically reduce the time and effort required

to complete the refresh cycle and audits. Adding software

assets will further improve productivity, accuracy, and help the

company to reduce redundant license and maintenance costs.

› Streamlined audit compliance and reduced the risk of violations.

With BMC Helix, companies can streamline the process of responding

to audits or even addressing violations themselves — reducing IT

labor. Furthermore, interviewees hoped to reduce the number and

scope of audit violations in the first place through better ITIL practices

and a centralized change management via BMC Helix CMDB.

› Prevented issues and reduced labor to resolve change incidents.

Interviewees identified that BMC Helix ITSM’s change management

functionality helped to discover changes as they occurred and identify

ones that may have an adverse impact. As a result, incidents and

“At this point in time, we are not

utilizing asset life cycles in

[BMC Helix ITSM], they are

being tracked in a humongous

spreadsheet. There are

definitely mistakes. Come next

year, we will have a full life

cycle [in BMC Helix ITSM] so

we can refresh timelier, know

the status, know when to

order, and know what to

order.”


healthcare

“We didn’t have an impact view

of what changes were being

made in our systems before

[BMC Helix ITSM]. Now that

we track every change we

make in our applications and

hardware, we reduced the

number of incidents by 80%

and the time to resolve these

incidents from 6 to 8 hours

down to about 2 hours.”


insurance


outages could be prevented by catching changes and upgrades before

they went into production and affect users. Furthermore, organizations

could provide proactive support when changes were discovered.

Before using BMC Helix for change management, the

insurance company interviewed for this case study identified

that changes would sometimes go into production without

anyone knowing for one or two weeks. BMC Helix ITSM

helped this organization pinpoint users and control releases.

More control using BMC Helix has helped them to reduce the

incidents related to those changes. The company reduced

incidents by 80% from 1,000 to less than 200, and furthermore

slashed mean time to resolve from 6 to 8 hours to only 2 hours

on average.

Flexibility would also be quantified when evaluated as part of a specific

project (described in more detail in Appendix A).


The table above shows the total of all costs across the areas listed below, as well as present values (PVs) discounted at 10%. Over three years, the composite organization expects risk-adjusted total costs to be a PV of approximately $2.4 million.

19%

three-year cost PV

$459,140

Analysis Of Costs

QUANTIFIED COST DATA AS APPLIED TO THE COMPOSITE

Implementation Labor

Organizations came from a variety of legacy ITSM systems from third-

parties, BMC, or that were built internally, adopting BMC Helix ITSM in

the cloud along with a range of related BMC Helix services. The amount

of labor and overall time varied due to the prior and goal state, along with

the size and complexity of the organization’s ITSM practice. Deployment

was generally fast, with most conducting deployment in phases —

ranging from three months to two years for overall deployment time, with

most Phase 1 implementations between three and nine months and

Phase 2 implementations typically adding two to four additional months.

› For those organizations upgrading from legacy, on-premises versions

of BMC’s ITSM solutions, the upgrade process was fast and easy.

BMC conducted the bulk of the work for the upgrade and migration,

which involved not only upgrading their ITSM software suite, but

migrating all data and core applications from their prior on-premises

installation of a legacy BMC ITSM solution to the cloud.

› For those organizations deploying a new environment or shifting from

an alternative third-party or homegrown ITSM solution, more labor was

naturally required to rebuild systems and convert data. However, these

organizations generally found deployment to be faster and easier than

expected — and with BMC professional services involved, it could be

done quickly and with minimal internal labor.

BMC Helix Chatbot deployments, specifically, took between six and 18

weeks for the initial launch with additional use case development,

training, and promotion continuing post-launch. Interviewees noted that it

was important to focus on a small selection of simple, highly-requested

services, and to grow from there. They found success bringing in cross-

functional employees such as communications teams to craft effective

responses, to test BMC Helix Chatbot, and to promote it broadly.

› The associate director of IT service delivery at an interviewed

education organization explained the agility of their pilot BMC Helix

Chatbot deployment: “We identified 14 frequently requested services

for new users, and worked to identify the intents and the ways they

should be answered. It was a very fast-moving project; we built,

Total Costs

REF. COST INITIAL YEAR 1 YEAR 2 YEAR 3 TOTAL PRESENT VALUE

Ftr Implementation labor $459,140 $0 $0 $0 $459,140 $459,140

Gtr BMC and third-party technology and professional services

$372,857 $399,426 $414,143 $416,260 $1,602,686 $1,390,981

Htr Ongoing labor $0 $314,600 $200,200 $157,300 $672,100 $569,636

Total costs (risk-adjusted) $831,997 $714,026 $614,343 $573,560 $2,733,926 $2,419,757

Implementation labor: 19% of total costs


Implementation risk is the risk that a proposed investment may deviate from the original or expected requirements, resulting in higher costs than anticipated. The greater the uncertainty, the wider the potential range of outcomes for cost estimates.

trained, and tested our chatbot to launch the pilot for those services in

under two months.”

Forrester’s financial evaluation of this cost assumes the following:

› Implementation of BMC Helix ITSM occurs over six months. Six IT

employees are employed for implementation and creation of the

knowledge base, spending 50% of their time on the project. Most

deployment effort is completed by BMC professional services, as

quantified in the next cost section.

› Implementation of BMC Helix Chatbot takes three months. Two IT

employees dedicate half their time to the project, while three engineers

dedicate their full time to the project during this period. An additional 12

cross-functional employees dedicate 25% of their time during this

period for training, writing communications, testing, project

management, and internal promotion.

› Implementation of BMC Helix ITSM’s multicloud service management

capabilities takes two months for key integrations with two external

services. This requires two fully dedicated engineers and two IT

employees dedicating half their time to the project.

› All 227 service desk agents take part in 4 hours of training on the new

systems.

› The average fully burdened hourly salary for this group of IT

administrators, engineers, and cross-functional employees is estimated

at $50 per hour, equating to approximately $80,000 per year plus 30%

burden rate for benefits and costs of employment.

Forrester recognizes that costs will vary depending upon the unique


› The complexity, size, and type of software of the legacy ITSM

deployment that is being upgraded.

› The complexity, size, and specific features of the BMC Helix system

being deployed.

› The level of internal expertise and desired ratio of work being

completed by BMC, third-party professional services, or by internal

employees at the organization.

To account for these risks, Forrester adjusted this cost upward by 10%,

yielding a three-year risk-adjusted total PV of $459,140.


BMC And Third-Party Technology Licensing And

Professional Services

BMC’s licensing costs will vary depending upon the number of IT users,

the number of end users, ticket volume, the volume and complexity of

cognitive automation, the type and number of services integrated, and

Implementation Labor: Calculation Table

REF. METRIC CALC. INITIAL

F1 IT FTEs for BMC Helix ITSM implementation and knowledge base creation

6

F2 Hours per FTE 50% dedicated for 6 months 520

F3 BMC Helix ITSM implementation hours F1*F2 3,120

F4 IT FTEs for BMC Helix Chatbot implementation 2


F6 Engineer FTEs for BMC Helix Chatbot implementation 3


F8 Cross-functional FTEs for BMC Helix Chatbot implementation 12


F10 BMC Helix Chatbot implementation hours F4*F5+F6*F7+F8*F9 3,360

F11 IT FTEs for multicloud brokering implementation 2


F13 Engineer FTEs for multicloud brokering implementation 2


F15 Multicloud brokering implementation hours F11*F12+F13*F14 960

F16 Service desk agents R14+R16 227

F17 Training hours per agent 4

F18 Service desk training hours F16*F17 908

F19 Total implementation hours F3+F10+F15+F18 8,348

F20 Estimated average fully burdened hourly salary for cross-functional implementation FTEs

$80K annual salary + 30% burden rate

$50

Ft Implementation labor F19*F20 $417,400

Risk adjustment ↑10%

Ftr Implementation labor (risk-adjusted) $459,140

Three-year, risk-adjusted present value of implementation labor cost: $459,140


57%

three-year cost PV

$1.4 million

the specific features (such as a chatbot) deployed. Professional services

costs can range significantly depending upon the deployment needs and

complexity. For organizations leveraging chatbots, additional costs such

as SMS delivery from a third-party provider may also be relevant.


› Licensing fees are based on the complexity and size of its service desk

needs for BMC Helix ITSM (with multicloud service management),

BMC Helix Digital Workplace, and BMC Helix Chatbot. These

technology costs are slightly over $300,000 per year.

› Licensing costs are also incurred during the initial six-month

implementation period, equating to approximately $150,000 (half of the

annual spend) in costs before full deployment.

› BMC professional services are employed to lead deployment, incurring

$200,000 in initial costs.

› BMC professional services provide ongoing management, upgrades,

and enhancements, at a rate of approximately 22% of the annual

technology spend for approximately $70,000 per year.

› The BMC Helix Chatbot utilizes an optional third-party service for SMS

communication, incurring an estimated $.01 per SMS sent or received

at an average of 12 messages per ticket deflected by the chatbot.



› The complexity, size, and type of software of the legacy ITSM

deployment that is being upgraded.

› The size (number of service desk users, end users, tickets,

integrations, cognitive automation calls) of the BMC Helix environment

and the particular features that are deployed.

› Whether work is conducted by BMC, third-party professional services,

or by internal employees at the company.


yielding a three-year risk-adjusted total PV of $1,390,981.

BMC And Third-Party Technology Licensing And Professional Services: Calculation Table

REF. METRIC CALC. INITIAL YEAR 1 YEAR 2 YEAR 3

G1 BMC technology costs $155,102 $310,390 $320,390 $320,390

G2 BMC professional services G1*22% (excluding initial)

$200,000 $68,000 $70,000 $70,000

G3 BMC costs G1+G2 $355,102 $378,390 $390,390 $390,390

G4 Third-party chatbot communication technology for SMS

A9*12*$.01 $0 $2,016 $4,032 $6,048

Gt BMC and third-party technology and professional services

G3+G4 $355,102 $380,406 $394,422 $396,438


Gtr BMC and third-party technology and professional services (risk-adjusted)

$372,857 $399,426 $414,143 $416,260

Three-year, risk-adjusted present value of BMC and third-party technology and professional services: $1,390,981

BMC and third-party technology licensing and

professional services: 6% of total costs


24%

three-year cost PV

$569,636

Ongoing Labor

Organizations also incur ongoing costs to manage their BMC Helix

environment, train service agents to use the new system, develop and

improve knowledge base articles, automation, and integration, train the

chatbot, and continually expand use cases.


› BMC’s professional services, as calculated in the previous benefit,

provide significant upgrade, customization, and support services on an

ongoing basis — helping keep ongoing labor to a minimum.

› BMC Helix is supported by one full-time systems administrator.

› The organization continues to improve and develop new knowledge

base articles, dedicating 50% of 1 FTE in Year 1, 25% of 1 FTE in Year

2, and one-eighth of 1 FTE in Year 3.

› The organization expands and improves the chatbot, dedicating 1 FTE

in Year 1, 50% of 1 FTE in Year 2, and 25% of 1 FTE in Year 3.

› The organization launches a third multicloud service management

integration and automation, devoting 25% of 1 FTE during Year 1.

› The average fully burdened hourly salary for IT and engineer FTEs is

estimated at $50 (approximately $80,000 per year burdened at 30%).



› The particular improvements needed to be made for the knowledge

base, chatbot, automation, and multicloud service management.

› The complexity of improvements that need to be made.

› Internal expertise and desired ratio of work completed by BMC, third-

party professional services, or internal employees at the organization.


yielding a three-year risk-adjusted total PV of $569,636.

Ongoing Labor: Calculation Table

REF. METRIC CALC. INITIAL YEAR 1 YEAR 2 YEAR 3

H1 Systems administration hours 2,080 2,080 2,080

H2 Knowledge base improvement hours 1,040 520 260

H3 Chatbot improvement hours 2,080 1,040 520

H4 Automation and MCSM improvement hours 520 0 0

H5 Ongoing labor hours H1+H2+H3+H4 5,720 3,640 2,860

H6 Estimated average hourly salary F20 $50 $50 $50

Ht Ongoing labor H5*H6 $0 $286,000 $182,000 $143,000


Htr Ongoing labor (risk-adjusted) $0 $314,600 $200,200 $157,300

Three-year, risk-adjusted present value of ongoing labor costs: $569,636

Ongoing labor: 24% of total costs


The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the composite organization's investment. Forrester assumes a yearly discount rate of 10% for this analysis.

Financial Summary

CONSOLIDATED THREE-YEAR RISK-ADJUSTED METRICS

Cash Flow Chart (Risk-Adjusted)

-$2.0 M

$2.0 M

$4.0 M

$6.0 M

$8.0 M

$10.0 M

$12.0 M

Initial Year 1 Year 2 Year 3

Cashflows

Total costs

Total benefits

Cumulative net benefits

These risk-adjusted ROI,

NPV, and payback period

values are determined by

applying risk-adjustment

factors to the unadjusted

results in each Benefit and

Cost section.

Cash Flow Table (Risk-Adjusted)

INITIAL YEAR 1 YEAR 2 YEAR 3 TOTAL

PRESENT VALUE

Total costs ($831,997) ($714,026) ($614,343) ($573,560) ($2,733,926) ($2,419,757)

Total benefits $0 $3,146,502 $4,956,740 $5,353,136 $13,456,378 $10,978,827

Net benefits ($831,997) $2,432,476 $4,342,397 $4,779,576 $10,722,452 $8,559,070

ROI 354%

Payback period <6 months


BMC Helix: Overview

The following information is provided directly by BMC. Forrester has not validated any claims and does not

endorse BMC or its offerings.

BMC Helix: Cognitive Service Management On Your Cloud Of Choice

Every industry is going through a major transformation where they are under competitive pressure to provide

service across multicloud, multidevice internet of things (IoT), and multichannel environments at the highest

efficiency, speed, and lowest cost. Service management is being disrupted by technologies like artificial

intelligence (AI) and machine learning (ML), chatbots, and virtual agents to help businesses manage these

increasingly complex landscapes. Hence, business leaders who are highly cognizant of this wave are embracing

and applying cognitive technologies to solve real business challenges and get a competitive edge in the market.

BMC Helix embeds AI, machine learning, and automation throughout the service portfolio to increase the

accuracy of updates and resolutions, leading to greater overall service and improved customer satisfaction. The

powerful mix of cognitive technologies and automation empowers service desks to improve accuracy and

satisfaction even as IoT, multicloud, and other trends are expected to increase ticket volumes in most enterprises

over time.

Deliver everything-as-a-service with intelligent, omnichannel experiences in the cloud.

› Cognitive capabilities embedded across the service management portfolio improve the accuracy and speed of

service ticket resolution.

› Delivery via containers provides a choice of clouds, as well as flexibility and scalability of operations.

› Chatbots and virtual agents help deflect Tier 0/1/2 tickets to lower support costs.

› Powered by BMC Helix Innovation Suite, our cloud-native application development platform.

Deliver predictive ITSM across multicloud environments.

BMC Helix ITSM fuels your IT transformation with intelligent, people-centric user experiences that help you work

smarter. It is delivered in the cloud, on-premises, or in hybrid environments for unprecedented choice. BMC Helix

ITSM has everything you need to deliver predictive, industry leading service management.

› Modern persona-based UX optimized across devices.

› Comprehensive and intuitive change management capabilities.

› Multicloud service management for a seamless service experience across multicloud environments.

› Cognitive automation capabilities that transform the agent experience.

› Powerful, stunning reports and visualizations allowing data driven insights.

› Container deployment to run in any type of public cloud.

Deliver intelligent, omnichannel self-service experiences.

BMC Helix Digital Workplace provides intuitive and intelligent consumer-like experiences to help organizations

step into the future of work. BMC Helix Digital Workplace establishes modern self service for the digital

workplace.


› Intuitive omnichannel conversational experiences for end users beyond web to Slackbot, Chatbot, SMS, and

Skype.

› Consumer-like shopping experience: Simple interface provides a familiar way to help employees get what they

need.

› Single service catalog across your organization: Eliminate catalog sprawl by presenting services from multiple

business units including IT, HR, and facilities in a single catalog.

› Workflow and automation: Decrease Tier 1 ticket costs by deflecting routine help desk calls.

› Powerful connectors: Easy to integrate into leading industry services and platforms like Microsoft Office 365,

Microsoft Azure, Atlassian JIRA, Amazon Web Services (AWS), and more.

Deliver fast and accurate responses to users.

BMC Helix Chatbot brings the cognitive enterprise to life with intelligent, omnichannel experiences that lets users

find and request services through a conversational and personalized interface.

› Consumer-like experience: BMC Helix Chatbot is tailored to platforms and devices employees are already

using.

› Service delivery: BMC Helix Chatbot can call and execute custom processes and workflows created in the

platform.

› Skype for Business, Office 365: Communicate with BMC Helix Chatbot through a familiar contact channel.

› SMS messaging: Use BMC Helix Chatbot from your mobile device without needing to access an additional

app.

› Web chat: View the full status of your requests and rate knowledge that BMC Helix Chatbot has provided.

› Available with BMC Helix Digital Workplace and BMC Helix Business Workflows.

For more information, visit bmc.com/helix.

https://www.bmc.com/helix


Appendix A: Total Economic Impact

Total Economic Impact is a methodology developed by Forrester

Research that enhances a company’s technology decision-making

processes and assists vendors in communicating the value proposition

of their products and services to clients. The TEI methodology helps

companies demonstrate, justify, and realize the tangible value of IT

initiatives to both senior management and other key business

stakeholders.

Total Economic Impact Approach

Benefits represent the value delivered to the business by the

product. The TEI methodology places equal weight on the

measure of benefits and the measure of costs, allowing for a

full examination of the effect of the technology on the entire

organization.

Costs consider all expenses necessary to deliver the

proposed value, or benefits, of the product. The cost category

within TEI captures incremental costs over the existing

environment for ongoing costs associated with the solution.

Flexibility represents the strategic value that can be

obtained for some future additional investment building on

top of the initial investment already made. Having the ability

to capture that benefit has a PV that can be estimated.

Risks measure the uncertainty of benefit and cost estimates

given: 1) the likelihood that estimates will meet original

projections and 2) the likelihood that estimates will be

tracked over time. TEI risk factors are based on “triangular

distribution.”

The initial investment column contains costs incurred at “time 0” or at the

beginning of Year 1 that are not discounted. All other cash flows are discounted

using the discount rate at the end of the year. PV calculations are calculated for

each total cost and benefit estimate. NPV calculations in the summary tables are

the sum of the initial investment and the discounted cash flows in each year.

Sums and present value calculations of the Total Benefits, Total Costs, and

Cash Flow tables may not exactly add up, as some rounding may occur.

Present value (PV)

The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PV of costs and benefits feed into the total NPV of cash flows.

Net present value (NPV)

The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made, unless other projects have higher NPVs.

Return on investment (ROI)

A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs.

Discount rate

The interest rate used in cash flow analysis to take into account the time value of money. Organizations typically use discount rates between 8% and 16%.

Payback period

The breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs) equal initial investment or cost.


Appendix B: Endnotes

1 Source: “Adoption Profile: Private Cloud In North America, Q2 2018,” Forrester Research, Inc., April 19, 2018.

2 Source: Ibid.

3 Source: “Top 10 Facts Every Tech Leader Should Know About Hybrid Cloud,” Forrester Research, Inc., April

25, 2018.

4 Source: “Benchmark Your Enterprise Cloud Adoption,” Forrester Research, Inc., January 3, 2017.

5 Source: “A Clear Multicloud Strategy Delivers Business Value,” Forrester Research, Inc., April 18, 2018.

6 Source: “Adoption Profile: Private Cloud In North America, Q2 2018,” Forrester Research, Inc., April 19, 2018.

7 Source: “How To Secure Funding For Your SaaS Migration,” Forrester Research, Inc., October 11, 2017.

8 Source: “Predictions 2019: Cloud Computing,” Forrester Research, Inc., November 8, 2018.

9 Source: “The State Of Cloud Migration, Portability, And Interoperability, Q4 2017,” Forrester Research, Inc.,

January 5, 2018.”

10 Source: “Brief: Why The CIO Must Care About Containers,” Forrester Research, Inc., May 10, 2016.

11 Source: “Navigate The Kubernetes Ecosystem,” Forrester Research, Inc., June 23, 2017 and “Vendor

Landscape: Container Solutions For Cloud-Native Applications,” Forrester Research, Inc., March 16, 2017.

12 Source: “The State Of Cloud Migration, Portability, And Interoperability, Q4 2017,” Forrester Research, Inc.,

January 5, 2018.”

13 Source: “Adoption Profile: Public Cloud In North America, Q2 2018,” Forrester Research, Inc., April 19, 2018.

14 Source: “Shift To Enterprise Service Management To Improve The Employee Experience,” Forrester

Research, Inc., February 12, 2018.

15 Source: “The Changing Landscape Of IT Incident And Crisis Management,” Forrester Research, Inc., February

20, 2018.

16 Source: “Digital Transformation Demands A New Automation Framework,” Forrester Research, Inc., July 9,

2018.

17 Source: “ESM: Elevate Service Value Beyond The Technology Organization,” Forrester Research, Inc., August

2, 2017.

18 Source: “Employer Costs for Employee Compensation – September 2018,” Bureau of Labor Statistics, U.S. Department of Labor, December 14, 2018.

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