Would there be a way to create groups for reporting automatically from my cmdb source in this case Service Manger. This would allow me to group things easily by application or tier.
I have done a similar configuration in our SCOM environment. I have setup an automatism based on SCOM which pulls data from our CMDB(Service manager). The base automatism ist setup like the way provided by Kevin Holman. For setting things up like this you need skills in PowerShell and SCOM MP Authoring. Also a Little in SQL for the query.