For the two options you can select for software distribution or software update deployments:

Disable Operations Manager alerts while software updates run

Generate Operations Manager alert when a software update installation fails

Do you need to have the SCCM management pack for SCOM installed for these to work? For the first one, the SCCM agent will pause the SCOM health service during update installs. The second one I'd think you'd have to have the MP installed and the SCCM client forwards an alert to the SCOM agent which shows in Operations Manager console. If not, how does the alert for failed update get processed through SCOM? Please clarify.

Hi,

The OpsMgr client has to be installed on the system so that an alert will be triggered.

Also see: http://blog.tyang.org/2014/04/24/use-disable-operations-manager-alerts-option-configmgr/

Monitoring ConfigMgr 2012 with OpsMgr

http://blogs.technet.com/b/kevinholman/archive/2012/12/11/monitoring-configmgr-2012-with-opsmgr.aspx

I understand you'd need both agents as the Configmgr client pauses the Opsmgr agent service during update install. However, I'm not clear as to how it generates alerts for failed installs. Is this handled all on the client side (SCCM client tells Ops agent that software update failed and Ops agent generates alert in Opsmgr) or does this require the SCCM MP which allows Ops agent to monitor the update state messages on the management point for failures (using a monitor in the SCCM MP) and generate alerts if failures detected.

Yes, I know this is an old post, but Im trying to clean them up. Did you solve this problem, if so what was the solution?

Since no one has answer this post, I recommend opening  a support case with Microsoft Customer Support Services (CSS) as they can work with you to solve this problem.