IT Service Management

ITIL – Framework for IT Service

Management

GOVIS

Presented by: Athol Culpan

ProActive Services
 Agenda
• Issues affecting IT Service Providers
• Defining IT Service Management (ITSM)
• Benefits of ITSM
• Implementing ITSM
• Overview of ITIL and BS 15000
• Overview of ITIL Processes
• Questions
Issues affecting IT
Service Providers
 Drivers for IT Service Management
• Competitive business environment
• Business reliance on IT
• User accessibility and more exacting
demands
• Ever changing and more complex
technology
• Adapting to changing business needs
• Business and IT alignment
• Customer Control of IT Budget
 A Service-Based Approach
• Focus on services that underpin business
objectives

• Services are managed according to business

value

• Maintain the balance between quality and cost

• Provide an effective and efficient IT service

• Create a customer service culture

Defining ITSM
 What is ITSM?
Generally
– Philosophies and practices used to manage
IT Services
Specifically
– Set of disciplines for managing IT services
that:
• Are aligned to business needs
• Promote an integrated, quality approach
• Meet service targets in a cost effective manner
 What does ITSM involve?
A set of disciplines, embracing

People
Organisation Structure

Tools
Process

that together allow us to develop & deliver

high quality IT services
i.e. ITSM provides….

The bridge between the

business requirement and the
technology solution.
What does ITSM cover – Everything !
Not just about managing technology Not just about managing “live services”

4 5
3
Procurement
Service of System
2
Desk 6
Supplier
Approvals
Process

1
Installation Services

End User
Request
Moves Adds and Changes

11
GL/AP 8

HR
Employee/Location/
10 Cost Center Data
9
Contract &
Disposition
Option
Managemen
t
Managing the complete “technology lifecycle” from
initial idea through to decommissioning of obsolete
solutions.
 ITSM: The Building Blocks
IS Organisation, Architecture,
Relationship Mgt, Strategic
Strategic Alignment

Service Delivery
Cost-effective, available,
Tactical
aligned to client expectations

Service Support
Operational Responsiveness, reliability,
flexibility

Physical ICT Infrastructure

 The Challenge -
Aligning IT to the Business
Business Units IT Department

Business IT
Plans Planning

Service Level Agreements (SLA’s)

Service Level Service Level
Requirements Management

Customers Service
Desk

© ProActive
Benefits of ITSM
 Benefits of ITSM
• Aligns IT with the business needs

• Moves from a technology to service based

culture

• More ability to absorb rapid change

• Improves quality of IT services

• IT perceived as offering value to the

organisation

• Ensures everyone speaks the same language

 Operational Tangible Benefits
• Increase first call resolution rate

• Decrease cost per call

• Prevent software license over-purchasing

• Reduce frequency of physical inventories

• Lower support costs

o H/W & S/W standards

o Documented, repeatable processes

o Performance metrics
 Operational Intangible Benefits

• Enhanced service levels

• Higher customer satisfaction ratings

• Enhanced image of IT as business partner

• Motivated support personnel

• Better information for decision making

 What does all this mean?
Consistent and
accurate solutions
Business IT
Demands
Available, Usable,
Secure & Perform

So can we deliver? All the time?

Yes No
You’re either telling porkies or Welcome to the club – its large
about to become very rich & and friendly!
famous!
IT Organisation in Change
Future

nge
a
ch

Quality of IT Services

Costs of IT Services
nge
a
ch

Now
 IT and Business Alignment
Typical start point

Customer
Customer
/Service Desk
relationship

“Tribalism” Service Desk

DTS
DTS
CHANGE Service Desk
APPS
SLM /IT relationship
NT IT
NET
DBA
UNIX

OPS
 IT and Business Alignment
End Objective

Customer
Customer /
Service Level Service Desk
Agreements relationship

“Alignment” Service Desk

Service Desk /
Operational Level Contracts
IT relationship
Agreements (External)
(Internal)
IT
Implementing ITSM
 Overall Approach
High Level
What is the vision?
Business Objectives

Where are we now? Assessments

How do we keep
Where do we want to be? Measurable Targets
the momentum?

How do we get there? CSIP

How do we check our

milestones have been Measurements and Metrics
reached?
 Experience Shows
Project failure results from:
• Software-centric mindset

• Un-documented processes

• Lack of upper management support

• Project success results from:

• Total solution focus encompassing people, process
and tools

• Documented and validated lifecycle processes

• Upper management sponsorship and commitment

 Processes and Structure –
Getting focused on the customer
Silo Structure Integrated Structure

silo silo silo silo

Multidisciplinary Team
? ?
Disconnected Activities Coordinated Activities
Focused on outcomes and the
Focused on technical end-user experience
activities or platforms
Process Alignment
Functional Alignment
Best Practice
Worst Practice

Copyright Gartner 2004

 Transforming to a Customer
Service Culture
• Customer Service and
quality control is
“someone else’s job”
• Staff feel they can never
get anything done, and
are not supported with
adequate resources or
skills
• IT and technology take
precedence over
customers
• Staff have little
understanding of the
core business
Consider both internal and external
to IT Customers
• Everyone, from the top down,
must believe that they work for
the customer.
• Staff are competent, capable,
accountable and empowered,
and continually try to improve
services
• Serving customer needs takes
precedence over technology
• Staff have a good
understanding of business
products and impact of
providing poor service
Promoting a Service Culture

Senior Vision &

leadership
Management

Service
Supervisors Deliverers

empowerme
nt
support
‘can do’
facilitation
attitude
ITIL and BS 15000
IT Infrastructure Library (ITIL)

T
T Planning to Implement Service Management h
h e
e
Service Management
ICT T
B The Service e
Infrastructure
u
Business Support c
s Management h
Service
I Perspective n
n Delivery o
e Security l
s Management o
s g
Applications
y
Management
IT Infrastructure Library (ITIL)
– A series of books on the provision of quality IT services
– Produced by OGC, published by the Stationery Office
– A code of Best Practice Framework for IT Service provision
– Non-proprietary Impartial and Generic
– Publicly available
– First written in 1986 – 1993
– Revised in 1999 - 2001 with global input
– Second Revision currently in progress
 Certification & Standards
Certification
• Examination Boards
• Global Standard
• Two levels based on Service Support & Delivery (Foundation &
Manager)
• Also Practitioner level
• Accreditation of Training Service Providers
Standards
• British Standards Institution BS15000/AS8018
• AS8018 moving towards ISO - target 2006
 Growth and adoption of ITSM and ITIL
• Companies from varied market sectors
• Government, public and private acceptance
• Companies that have adopted ITSM
include:-
– Hewlett Packard, IBM, Microsoft
– EDS, Gen-I, Datacom
– ASB, BNZ, ANZ/National – UK
– Fonterra, Tranz Rail – Europe
– NZPOST
– Ministry of Education, Ministry of Health, – Americas
Ministry of Social Develop.
– South Africa
– Maj. NZ tertiary institutions
– Proctor & Gamble (Worldwide) – Australia
– Telstra / Telecom
– New Zealand
 The ITIL Processes
Service Support Service Delivery

Service Desk (Function) Service Level Management

Incident Management Availability Management

Capacity Management
Problem Management
IT Service Continuity
Change Management Management

Release Management Financial Management

Configuration Management
Process Orientated Working

Service Delivery

Service Support
 ITSM Organisation
Service Management Infrastructure Applications
Service Support
Service Desk
Incident Management
Problem Management
Change Management
Release Management
Configuration Management

Service Delivery
Service Level Management
Availability Management
Capacity Management
Finance Management
IT Service Continuity Management
 BS15000

BS15000
Specification & Standard for the highest
Code of level of ITSM
Practice

PD 0005 Management
Management Overview Overview
ITIL Process
IT Infrastructure Library Definition

Deployed
In House procedures Solution
 The BS15000 Model
Service Delivery Processes
Capacity Management Service Level Management Information Security
Management

Service Continuity and Service Reporting Budgeting and

Availability Accounting
Management for IT Services
Service Reporting
Control Processes
Configuration Management
Change Management
Release Relationship
Process Processes
Resolution
Processes

Release Management Incident Management Business Relationship

Management

Problem Management Supplier Management

Comparison of ITIL to BS15000
ITIL
– Provides framework for best practice
– Can assess maturity
– Flexible and adaptable

BS 15000
– Normative reference
– Internationally recognised certification
– Prescriptive
– Cannot assess maturity
– Only pass or fail
Overview of ITIL Processes

Service Support
&
Service Delivery
 ITIL Practices - Service Delivery

Customers

Service Level Management

IT Services

Financial Capacity Availability Continuity Service

Management Management Management Management Support

IT Infrastructure
 Service Support Processes

Customers Alerts

Service Desk

Incident Management

Problem Change
Configuration
Management Management
Management

Release Management

Infrastructure
ITIL Practices - Service Support

Release
Management
C
u
s Service Configuration
Desk
t Change
o
m Incident Management
e Management Management
r
s

Problem
Management
 CMDB Interfaces
Capacity

Cost
Change &
Release

Incident
Problem CMDB (Service Desk)

Performance
SLM

Management
Information
 Service Delivery Processes

Business Stakeholders

Service Level Management

Capacity Financial Availability IT Service

Management Mgt Management Continuity

Change Management
 Integration between the
Processes
SLA

Budget
Performance Service Level Business
Disaster Management Requirements
Charges
Costs
Performance
Recovery Support
Charges Service Desk, Incident,
Planning
Availability, Capacity, Service level and Problem
Continuity and Finance targets Management

Infrastructure Changing or
Change, Release and improving the IT
Configuration Management Infrastructure
 Assessment Results Overview
46% - ensure that standardized methods and 54% - provide cost effective stewardship of the IT assets and the
procedures are used for efficient and prompt financial resources in providing IT Services
handling of all Changes
33% - maintain and improve IT Service quality,
48% - minimize the adverse impact through a constant cycle of agreeing, monitoring
of Incidents and Problems on the and reporting upon IT Service achievements and
business, and to prevent their instigation of actions to eradicate poor service, in
Financial Management
recurrence line with business or cost justification
100.00%
Change Management Service Level Management
80.00%

60.00%

Problem Management 40.00% Service Continuity Management

10% - provides a logical
model of the infrastructure
or a service, by identifying, 20.00%
controlling, maintaining and
0.00%
verifying the versions of
Configuration Items (CIs) in Configuration Management Availability Management
existence

Release Management Capacity Management

Incident Management Service Desk

66% - ensure that all aspects of a
Release, both technical and non-
technical, are considered together
37% - single point of contact for the users
47% - restore normal operation as quickly as
possible with minimum disruption to the business

Maintenance Approach for Ground Data Systems

 High level summary of SMO key functions
Service Management
Organization
Director
Commercial Service Delivery
Management Management
 Partner Contract Mgmt  Day-to-day interface
– Commercial strategy & with infrastructure
Education services
 Service Mgmt oversight
– Contract policies &
by Technical Towers
procedures
– Internal Applications
– Contract administration – Messaging Services
& changes
– Mainframe &
– New service Servers
negotiations – Data, Voice & Video
 Partner Financial Mgmt Network
– Invoice reconciliation – Help Desk
– Service credit mgmt – Desktop Computing
– Security & Disaster
– Budgeting / Forecasting
Recovery
– Charge back – Telecommunications
 Technical tower based
– Labor forecasting
forecasting & capacity
– Financial reporting planning oversight
– Funding/ Request for  IT escalation &
Service facilitation of resolution
– Benefits realization of delivery issues
• Leadership of service management team
• Oversight of service management arrangements
• Escalation point for resolution of issues
• Champion service management and improvements
Agency Strategy & Transition &
Performance Architecture Transformation
Management Coordination Management
 Work closely with the  Coordination with VITA’s  Implementation of SMO
Customer SMS directorate and the directorate
Relationship Partner on Architecture,  Mgmt of Transition to a
Managers and are technology & Innovation Partner - e.g. planning,
split across the  Ensure the integrity of IT risk mgmt, logistics,
Secretariats infrastructure strategy, internal VITA coordination
 Service level technology architecture of activities e.g. with, HR,
performance mgmt & and standards CRM, Communications
reporting  Coordinate and provide  Oversight, coordination &
 Facilitate service technical expertise and mgmt of Transformation
improvement plans assurance for Agencies with a Partner - e.g.
 Agency project based and projects with service delivery
infrastructure infrastructure elements improvement projects
forecasting and  ITIL Process development
capacity planning & mgmt - Business &
oversight Operational
 Line management of  Process quality assurance
Managed Employees and service improvement
 SMO roles to be posted on
October 26
Working Job Title Role Title Position Number
SMO Director IT Manager III 00480
Senior Commercial Manager IT Specialist IV 00481
Senior Service Delivery Manager IT Specialist IV 00485
Senior Agency Performance IT Specialist IV 00484
Manager
Strategy & Architecture Coordinator IT Specialist IV 00483

Senior Transition & Transformation IT Specialist IV 00482

Manager
The Goal Isn’t This

Accounting Manufacturing
 This Is Our Goal!

Accounting Manufacturing

Hence a tension will always exist between balancing compliance and the
need to attain our goal
 New GSIUS Contract – Strategic Solution (KPIs)

• Key Performance Indicators

– Service Quality
• Percentage of repeated incidents
• Percentage of wrongly diagnosed problems
• …
– Service Targets
• Percentage of problems fulfilling PM within target time
• Average time to fulfill PM
• …
– Service Dimension
• New Problems planned vs actual percentage deviation
• Number of new problems by criticality AND urgency
• …
– Service Improvement
• Percentage average time reduction to perform PM

Maintenance Approach for Ground Data Systems

 Trying to Run Before Walking
Level 4
Value
Level 3  IT as strategic
Service business partner
Level 2  IT as a service  IT and business
Proactive provider metric linkage
Level 1  Analyze trends  Define services,  IT/business
classes, pricing
Reactive  Set thresholds collaboration
Level 0  Fight fires  Predict problems  Understand costs improves business
 Inventory  Guarantee SLAs process
Chaotic  Measure appli-
 Real-time
 Ad hoc  Desktop SW cation availability  Measure & report
distribution service availability infrastructure
 Automate
 Undocumented  Integrate processes  Business planning
 Initiate  Mature problem,
 Unpredictable problem mgt  Capacity
configuration, Manage IT as a Business
 Multiple help
process change, asset mgt
 Alert and and performance
desks Service and Account Management
event mgt mgt processes
 Minimal IT
 Measure component
operations
availability (up/down)
Service Delivery Process Engineering
 User call
notification Operational Process Engineering

Tool Leverage
 Maturity and Management
Challenge

Level 5
30%
Value
Level 4
• IT as Strategic Business
60% Service
Level 3 Partner

• IT as Service Provider • IT and Business Metrics

Proactive
Level 2 • Define Services, Linkage

Reactive • IT / Business Collaboration

• Analyze Trends Classes, pricing
Level 1
• Manage Costs Linkage improves
• Set Thresholds
Chaotic • Fight Fires
• Guarantee SLA’s business Processes
• Predict Problems
• Inventory • Real-time Infrastructure
• Measure Application • Measure and report
• Adhoc • Desktop Software • Business Planning
Availability service availability
• Un-Documented Distribution
• Automate • Integrate processes Manage IT as Business
• Unpredictable • Initiate Problem
• Mature problem, • Capacity
• Multiple Helpdesks management Process
Configuration, Change, management
Service and Account Management
• Minimal IT • Alert and Event
Asset performance
Operations Management
Management Process
Service Delivery Process Engineering
• User Call • Measure Component
Notification Availability (Up or Operational Process Engineering
Down)
Tool Leverage

Source: Forrester Research; Adapted by KG

 Proactive Service Management

Proactive
•Analyze Trends
•Set Thresholds
•Predict Problems
Paretto Charts
•Measure Application
Upper
Availability Spec. Limit

•Automate
•Mature problem,
Configuration, Lower
Spec. Limit
Change, Asset
Control Charts
performance
 Leverage Process Integration
1
 Comprehensive monitoring
 Iteratively tune thresholds Discover anomalies
Availability  Filter out noise as soon as possible,
preferably before
Management  Train operations center staff customer impact
Smell the smoke  Automate on call staff notification

2
 Perform parallel investigation
Incident  Designate senior technical leaders
Resolve incidents
as quickly as
Management  Utilize problem isolation tools possible
Firefighting  Prioritize effort based on criticality
 Dedicate staff to problem management
3  Conduct quick review on all problems
Problem  Perform in-depth postmortem on Take action to
Management significant problems prevent future
 Identify root cause risk areas problems
Fireproofing
 Identify action items and track
to completion
 Maintain an Availability Hit List
 Use Metrics to Drive Behavior and
Measure Progress
 People inherently want to do a good job
 What gets measured gets attention
 What doesn't get measured drops off the radar
 People will take action to move a metric in a
positive direction
– People will do "dumb" things
– People will stop doing "smart" things
 Focus on analysis and action vs. reporting
– Select a few key metrics instead of many
– Measure what will help you improve, not what's easy
to measure
– Create "tiers" of metrics tailored to different audiences
 Effectively Staff Crucial Roles
• Designate individuals as process
owners
• Assign (virtual) teams of subject
matter experts
• Utilize program or project managers
– Credibility
– Communication skills
• Desirable characteristics for team
– Process and customer focus
members
– Ability to deal with ambiguity
– Commitment to the cause

People will make or break your ITIL initiative

Global Service Maturity

Most
Companies
are Here

We need to implement IT … to enable delivery of

Service Management (ITSM)… global shared services
 IT Service Management and
ITIL
“IT Service Management (ITSM) is the collective behaviors,
competencies, processes, management systems, and technologies that
drive the IT organization’s ability to deliver desirable and predictable
results.”
Gartner, 2005

“IT Infrastructure Library (ITIL) is an

industry leading best practice
‘framework’ used by organizations
worldwide as a guidance to establish
and improve ITSM capabilities”
ITIL V3, 2007
 IT Service Management
THE BUSINESS
Capabilities
Business Services
Business Facing Services (e.g. Applications, PCs, Audio)
Technology Services (e.g. server hosting, connectivity,
database)
Organization Integrated Processes Policies
HR
People Purchasing
Roles Finance
Functions Sourcing
Partners Legal
Etc..

Technology & Tools

THE INFRASTRUCTURE
 Services are Dependant upon the Processes
As the Processes Mature, the

Service Capability
Process Maturity
Service Capability will Increase

The Capability of the Services is Processes

Service Capability
directly dependent upon the Maturity
Process Maturity

of the Processes

Services

Processes
Service Level Management
CUSTOMER
NEEDS

PERFORMANCE SATISFACTION
SLA

IT Service

IT Systems
IT Systems
IT Systems
IT Systems

OLA UC
EXTERNAL
INTERNAL
SUPPLIERS &
SUPPLIERS
MAINTAINERS
Everything that’s bad about “Processes”
 Critical Components
People

Culture, Attitude,
Belief, Knowledge
and Skills

Infra-
structure
Processes ITIL
including Technology
tools

Efficient, Effective and Economic

 Service Catalogue Management
Business Business Business
Process 1 Process 2 Process 3

Business Service Catalogue

Service A Service B Service C Service D Service E

Technical Service Catalogue

Support
Hardware Software Applications Data
Services
 The SLM Process
Implement and
Establish Function
maintain SLAs
Create and maintain
Planning
Service Catalogue
Establish and maintain
Implementation
SLRs
Produce and maintain
draft SLA structure Ongoing
Negotiate new and Management
maintain existing SLAs
Review Contracts Monitor achievements
and OLAs Produce regular
Agree new and reports
Periodic Reviews
amended SLAs Conduct customer
Review SLAs, OLAs reviews
and Contracts Instigate any
Review SLM remedial actions
process Feed enhancements
into continuous SIP
 Capacity Management
• Talking to the business to determine their strategy
• Translate these business initiatives into IT requirements
Business
• Influence business strategy by providing capacity advice
Capacity
• Design and procure solutions to meet future requirements
Management
• Manage capacity requirements in the context of SLAs
• Consolidate component capacity data into an end-to-end
Service service view
Capacity • Optimise infrastructure components to meet SLA targets
Management • Monitor and report upon Service capacity
• Identify trends and take proactive action to maintain SLA
targets

• Manage infrastructure component capacity

Component • Identify trends and take proactive action
Capacity • Consider innovative technology solutions to
Management meet business requirements
 Capacity Management

Capacity Management has

three sub-processes
Demand Management

Business Service Resource

Capacity Capacity Capacity
Management Management Management

Capacity Plan

Capacity Iterative activities

Database (Performance Mgmt)
 Capacity Management

Tasks
Iterative
Activities
Business
Capacity Analyze
Management
Tuning

Implementation
Service Capacity
Capacity
Capacity Management
Management Monitoring
Management

Demand
Resource Management
Capacity
Management
Capacity
Database Application
(CDB) Sizing
 Capacity Management

Input & Output

SUB-PROCESS
INPUT OUTPUT
Business Capacity Management
Capacity plans
Trend, forecast, model, prototype,
Technologies CDB
SLAs, SLRs, and size, and documentation Minimum requirements
service portfolio of future business requirements and profiles
Business plans and Threshold values and
strategies signals
Maintenance windows Service Capacity Management Capacity reports
Employment and Monitor, analyze, tune, and report (regular, ad hoc, and in
development plans and special cases)
on service performance; establish SLA and SLR
programmes
Planning of future baselines and profiles of use of recommendations
changes services Costs and
Incidents and problems recommendations for
Manage demand for service further calculations
Service reviews
Proactive changes and
SLA violation service improvements
Financial plans Resource Capacity Management Revised maintenance
Budgets Monitor, analyze, and report on windows
utilization of components, Effectiveness review
Establish baselines and profiles on Audit reports
use of components
 Capacity Management

Iterative Activities
•A number of the activities of Capacity
Management need to be carried out
iteratively, and form a natural cycle:
Tuning

– Set up and maintain the Capacity Database

– Reporting
• Analyzes and reports Implementation Analysis

• Production of the capacity plan

– Demand Management and Monitoring
Monitoring
• Ensure that the future business
requirements for IT services are
considered
• Report on performance against targets
contained in SLA SLM Exception Resource Utilization
Reports Exception Reports
• Monitoring of resources Resource
Utilization SLM Thresholds
• Forecast future capacity requirements Thresholds
Capacity
– Document costs associated with options Management

– Assess new technology and its relevance Database

(CDB)
 Capacity Management
Benefits and Costs
•Benefits
– Reduced risk of performance problems and
failure
– Cost savings
– Both achievable through:
• Planned buying
• Deferring expenditure until really needed
(but in a controlled way)
• Matching capacity to business need
– Ensures that systems have sufficient capacity to
run the applications required by the business for
the foreseeable future
– Provides information on current and planned
resource utilization of individual components
allowing decisions on which components to
upgrade, when to do so, and how much it will
cost.
“Planned buying is cheaper than panic buying.”
•Costs
– Setting up Capacity Management:
• Procurement of required hardware and
software, such as monitoring tools
• Project management
• Staff costs
• Accommodation
– Daily management of Capacity Management:
• Annual maintenance and upgrades
• Ongoing staff costs
• Recurring accommodation costs (leasing,
rental, energy)
Planning & Implementing Service Management
Warning

To Be

As Is

Valley of
Despair
 Introduction to IT Infrastructure
Library
Service Delivery
Infrastructure
Management Capacity Financial Availability
Management Management Management

Service Level Continuity Customer

Supplier Management Management Management Management

Service Desk

Security Management Service Support

Configuration
Incident Management Problem Management Management

Applications
Management Change Management Release Management
 Overall ITIL Context
The ITIL processes all fit together to provide an overall approach to Operations.

Service Delivery
Availability
Management
(Design for
required
quality)

Capacity
Service Level
Management Financial
Business Management
(Maximize use Management Operations
Units (Define Service
of identified (Maximize ROI)
Requirements) Monitoring
technology)

IT Service
Continuity
Management
(Disaster
Recovery)

Users

Service Support

Service
Incident Problem
Desk Change Release
Management Management
(Single Management Management
(Service (Diagnosis &
Point of (Coordination) (Deployment)
Restoration) Solution)
Contact)

Configuration Management
(including Configuration Management Database)
 Business Continuity Lifecycle
Stage 1
Initiate BCM
Initiation

Business Impact Analysis

Stage 2 Risk Assessment
Requirements
Business Continuity Strategy
and Strategy

Organisation and
Implementation Planning
Implement Stand-by Develop Implement Risk
Arrangements Recovery Plans Reduction Measures
Develop Procedures
Stage 3
Initial Testing
Implementation

Review Testing Change

and Audit Management
Education
Training
and Awareness
Stage 4
Operational
Management Assurance
 ITSCM
Challenges
• Providing ITSC plans without Business
Continuity Management in place
– Incorrect assumptions
– Plans could be rendered useless
– Business assumes IT has the responsibility
– Technology solution which may not be necessary
 ITSCM
Challenges
• With BCM in place
– Aligning ITSC and BCS plans
– Keeping both sets of plans up to date.
ITSC integrates with all ITIL disciplines

• A selected few
– Service Level Management
– Change Management
– Problem Management
– Availability Management
 Successful ITSC

• Business and IT must work together

Service Catalog: Business vs. Technical

Two aspects of the Service Catalog:

 The Business Service Catalog contains details of all IT Services delivered to the customer and represent the customer
view.
 The Technical Service Catalog contains details of all IT Services delivered to the customer, together with relationships
to the supporting services and components necessary to support the provisioning of the service.
 The Service Catalog will provide a single point of entry for requesting shared services available to you

Business Service Catalog

Business Business Business
Process 1 Process 2 Process 3

Service A Service B Service C Service D

Support Hardware Software Apps

Network
Services

Technical Service Catalog

 Service Hierarchy
Business Service Bundle
Comprehensive bundle of services End User
aimed at a defined customer Services

Business Service
Discrete services expressed in Email PDA
business terms

Decomposition
IT Service Bundle Re-composition Address Office Email Web Email Mobile email
Aggregated IT services mapping
to business services

IT Service Directory Email Web

Blackberry
Individual IT Services Service Servers Servers

IT Core Service
Lower Level IT Services Storage LAN WAN Internet

Service Component LUN

Bandwidth DNS Routing Firewall
Individual Service Components Allocation
 ITIL Component Goal
Service Level Management To maintain and gradually improve business aligned IT service
quality through a constant cycle of agreeing, monitoring,
reporting, and reviewing IT service achievements and through
instigating actions to eradicate unacceptable levels of service.

Availability Management To optimize the capability of IT infrastructure and supporting

organization to deliver a cost effective and sustained level of
availability that enables the business to satisfy its objectives.

Capacity Management To understand the future business requirements (the required

service delivery), the organization's operation (the current
serviced delivery), the IT infrastructure (the means of service
delivery), and ensure that all current and future capacity and
performance aspects of the business requirements are provided
cost effectively.

Financial Management for IT To provide cost effective stewardship of the IT assets and the
Services financial resources used in providing IT services

IT Service Continuity To support the overall Business Continuity Management process

by ensuring that the required IT technical and services facilities
can be recovered within required and agreed business time-
scales.
 Goals

Continuous process and Service improvement

Current State Long Term

• Inward looking • Outward looking
• Ad Hoc • Rationalized
• Best efforts • Streamlined &Measured
• Fragmented, Silos • Integrated, End-to-end
• Reactive • Proactive
 Measuring and Improving the
Service Process Maturity
• Service process capability - the range of expected results that can
be achieved by following a service process

• Service process performance - the actual results achieved by

following a service process

• Service process maturity - the extent to which a specific process is

explicitly defined, managed, measured, controlled and effective
If only they knew …

IF ONLY THEY KNEW

… WE HAVEN’T EVEN
STARTED TO FIGURE
OUT HOW TO
MANAGE THIS STUFF
YET!
 Three very inter-connected ITIL
processes
•Change Management
The three process areas must work together
Is the set of standardized processes and tools used to
and share information.
handle change requests in order to support the business
while managing risks. (Risk Management)
•Release Management
Uses formal controls and processes to safeguard the
production environment. Coordinates the rollout of
changes. (Quality Control)
•Configuration Management
Focuses on tracking and documenting configurations and
then providing this information to other areas including
Change and Release Management. Configuration tracks
relationships to understand who is affected and assess
impact.
Don’t try to eliminate risk!

100%

You can spend a

Level of Assurance

fortune and you will

never truly hit a
100% level of
assurance.

The objective is to
lower risk to an
acceptable level, not
eliminate it because
Level of Investment you can’t!
Strategic, Planned, Holistic Approach
…
Business Strategy

“ There are 2
Business Plan
business growth
CAPACITY
MANAGEMENT patterns that our
IS/IT Strategy capacity plan
•Increase ROI of UNIX
server base must address:
•ORGANIC
IS/IT Business Plans •EVENT DRIVEN”
•Integrate Data Centers &
shared facilities
•Create shared production - Pepperweed
platforms
•Implement a UTILITY
client quote
SAN-based PROGRAM
 On-going activities

Ad-Hoc

Three Sub-Processes…

Business Capacity
Iterative
Management Capacit
Activitie Deman
•MONITOR y Data
s d
Service Capacity •ANALYSIS Modelin Storage
Management Mgmt g•TREND
•TUNING Applicatio
ANALYSIS
•IMPLEMENT n Sizing
Resource Capacity •BUSINESS

Management •SERVICE
•TECHNICAL
•UTILIZATION

Capacity Plan CDB

Metrics: Some guidelines
• Throughput (Volume & Utilization)
•CPU Utilization
•Memory Utilization
•File storage utilization

• Performance
•Response times

• Gather data at:

•Total resource utilization level
•Detailed load profiles per service per resource
SUPPORT PROCESS Problem Mgmt
INTERDEPENDENCIE
S Capacity Problem Reports

Incident Mgmt Capacity Diagnostic Change Mgmt

Tools/Performance reports
FSC

•Ad hoc/Cumulative Impact of

Capacity Incident Reports
Capacity Mgmt Proposed Changes on capacity
•RFCs

Capacity requirements planning for

new releases (response times,
CI Attributes storage requirements, LAN traffic)
Capacity Audits
CDB updates
Asset change
Configuration
recommendations Release Mgmt
Mgmt
DELIVERY PROCESS Financial Mgmt
INTERDEPENDENCIE
S Procurement req Budgets/actual variances
/Usage profiles IT Service
SLM Continuity Mgmt
Recovery
Performance options
reports
Capacity requirements for recovery
SLAs, OLAs, SLRs
Capacity Mgmt options

Availability Mgmt
The Capacity Plan…

Document current levels of resource utilization and • CURRENT LEVELS,

service performance CHALLENGES,
SERVICE LEVELS,
CHANGES

Factor in business strategy and plans

•BUSINESS
SCENARIOS
•SERVICE FORECAST
Forecast future requirements for IT resources
•RESOURCE
FORECAST
•RECOMMENDATIONS
Develop quantifiable recommendations •Business benefits
•Impact analysis
•Costs
 Component of Business
SET Vision
Continuity
Being a prestige and trustworthy marketplace with competent team
by promoting innovative products and services with a pool of liquidity
to meet stakeholders’ expectations

SET IT Mission
Develop & operate trading, post-trading and information systems supporting SET’s operation
Focus on accuracy, robustness and trustworthiness
Encourage mutual mission among stakeholders
Uphold good IT governance through project management and risk management

Business Continuity & Availability Management

System Availability Disaster Recovery Crisis
Management Management Management

Industry Readiness
“ To minimize risk and to manage the crisis situation properly ”
 System Availability
Limitation
Management
Systemt
Broker

• Plan capacity for Peak

Redundancy
Link

Redundancy Management
• Infrastructure/Equipment

Limitation Management
Monitoring Control
• Network devices/Connection
Security System
SET Network &

• Broker back up service

– On-site

– Internet

Monitoring Control
di gi t a l d i gi t a l

• Fault & Performance report

SET System

di gi t a l

• To identify the cause of

problem and reduce

recovery time
 Disaster Recovery
Management Two SET data centers have the same capacity,
delivering best possible service demanded by securities markets
2 Data Centers: Alternate Site

RDC (1997) NDC (2005)

Features
• Each can operate as a primary site
• Same service level
• A highly efficient network linking the two sites for resilience purpose, i.e. system failover
 Design Concept

Security
– Access
– Earthquake resistance*

Availability
– Minimize Single Point of Failure
– Redundancy

Maintainability
– Ease of Use
– Flexibility
– Scalability
“Accuracy, Robustness and Trustworthiness ”

* Able to resist up to 4-5 richter magnitude (typically 2-3 richter)

 Crisis Management
• Rules & Regulations
– Governance and Transparency

• Procedure
– Problem Solving
– Communication

• Authority
– Crisis Committee

• Risk Management
– Scenario Planning
 Business
OGC & ITIL framework Infrastructure
Service
Application
How to People
Manage Planning to Implement Service
Successful Management
Service
Programs
Management
How to ICT
Manage Service

Products
The Infrastructur
Practice

Change Business Delivery e

Perspective Manageme
Risk Service nt
Management Support

Security
PRINCE2 Management
and other
Applications Management
OGC books
Processes
 ITIL overview
Business Objectives

IT Strategy

Operational IT Processes Tactical IT Processes

Service Support Service Delivery
Service Desk function SLM, Management of:
Incidents, Problems, Changes, Finance, Capacity,
Releases, Configuration Availability, Continuity
Re
The CIO is under pressure
tur
n on
IT on
i nv ti
es
tm a liza
en l ob
t G

Innovation The CIO Compliance

ent Ris
nm k
a lig
T
ssI
ine
rn

s En
hu

Bu vir
C

on
gy

m
lo

en
no

t
ch
Te
 Components of SLM

Service
Operational
Service Level Underpinning
Level
Catalog Agreements Contracts
Agreements
Components of a Service
Catalog

Service
Service Service
Level
Listing Details
Agreement
The Holistic Service Management
Approach
Encompasses the business (enterprise) IT
approach
Business
Environment

Business
Requirements
Plan
Vision
Strategy
Mission
Governance
Framework
Objectiv Operations
Framework
es
Service
Fulfillment
 Service Management
Holistic Practices
Managing the Business of IT Reference Model

Business Value IT
Managem
Business Services ent Service Delivery
Financial
Management Management Management
of IT Services

Service Fulfillment Service Operations

Management Value
Management
Mapping

Service
Service Quality
Infrastructure
Management
Management
 Service Level Management
Domain
• Goals
– Meet expectations, Right quality, Within cost, Understood by customer, Measurable by
provider, Promise what you can measure, Inspect what you expect
• Scope
– Service provider organization, Align business & IT expectations, Arbitrate service issues,
Control customer satisfaction, Translate customer results,
Value of IT service
• Concepts
– Service, Service Quality Plan, Service Improvement Plan, Service Catalog, Service
request provision, Service level requirements, Service level agreement levels,
Operational level agreement, Underpinning contracts
• Major Activities
– Plan, Catalog, Request management, Define requirements, Negotiate, agree, contract,
Monitor, Review, Report, Improve
• Relationships
– Financial Management, Service Desk Incident Mgt, Continuity Mgt, Capacity Mgt,
Problem Mgt, Availability Mgt, Change Mgt, Configuration Mgt
 SLM Scope of Operation
Provider
Customer
Facing
Facing
Service Quality Plan Service Catalog

Service Request

Service Level Requirements

Internal Specs External Specs

Operations Level Agreement

Underpinning Contracts

Service Level Agreement Multi-level SLAs

Corporate
Service Targets Service &
Customer

Service Improvement Program Service Level Reports Service Incidents

 Service Quality Management

• Service Quality Plan

– The core plan detaining overall strategy, objectives, targets of IT service
– Contains major policy on catalog agreements, prioritization schemes,
and operations
– Should be linked to IT Business Plans and quality improvement initiatives

• Service Improvement Program

– Initiated as a result of unsatisfactory service levels
– Developed in conjunction with Problem and Availability Management
– Identifies actions to restore service levels
 Service Catalog

• An IT org without a Catalog is like a restaurant

without a menu
• Is a Service Portfolio, the basis for requesting
and negotiating service level
• Includes pricing models and charging methods
• Requires integrated service request mgt
processes
 Catalog Elements

• Offers lines of business and lines of

service
– Performance, communications, improvement, availability,
accounting, support, infrastructure, business continuity, suppliers

• Offers a Balanced Scorecard

– Operational Level Agreements, std requests,
response, changes, costs
 Service Request Management

• The single most influential Process

represents 85% of the IT work Load
• Typically managed by Service Desk where
responses can span multiple IT functions
and external resources
• Quality and speed govern terms dscribed
in service and the operations level
agreement
 Service Level Requirements

• Mandatory reference to Service Catalog,

encapsulated in a service request
• Defines scope, customer requirements
and prepares funding
• Maps customer activities
• Managed to a governance mandated
lifecycle to serve a service level objective
 Service Level Agreement

• In conjunction with the Service Catalog the

primary tool for expectation management
• May be developed at multiple levels:
corporate, service (regardless of
customers), Customer (most detailed
closet to personal service)
 Operational Level Agreement
(OLA)
• Required to enable effective, efficient SLAs
• Derived from the internal specs
• Using the same monitoring policy as for the
underpinning contracts
• Standard OLAs encouraged for infrastructure
mgt groups: network, database, applications,
and overal service request mgt
 Underpinning Contracts (UC)

• Used to Manage external suppliers

• Support service levels defined in the OLAs
• Require approval of contracts
administrator and usually the customer
• Should represent ‘Cascade’ of service
level targets seen in SLA and OLA
 The End

• There’s more than meets the eye in ITIL

• The question is how far do you want to
take your enterprise?
• What you want ITIL to help you with?
 Service Level Management
Clients Staff Faculty Students Tenants

SL
SL SL SL SL
AA SL SL SL
AA AA AA

Service Desk / Service catalog

OLA – Operating Level Agreement

IT
Services PC LA APP
APP
NET B

Vendors UC – Underpinning Contracts

© British Columbia Institute of

 Service Delivery - process inter-dependancies
Legend
Service
Delivery Financial Availability IT Service Capacity
Management Management Continuity Management
Service
Support

Service Level
Configuration
Management
Management

Incident Problem Change Release

Management Management Management Management

Production Environment

End User Business

Units
Customers
 ITIL
Effectiveness Process Controls

Process Activities and

Compliance
Sub processes

Efficiency Process Enablers Tools

 And Finally…. Behavioral Change
ITIL is about getting people to work differently…

...a different management style… …a different approach.

 The ITIL definition of IT “Service” - is this helpful ??

“An integrated composite

that consists of a number of components

such as management processes,

hardware, software, facilities and people

that provides a capability to satisfy

a stated management need or objective.”

Dictionary of IT Service Management

 Think of MANAGING IT as PROVIDING a SERVICE

SERVICE
BUSINESS IT SERVICE
DELIVERY

SERVICE
SUPPORT
Align IT services with the
needs of the Business
Improve the Quality of the
Service
Reduce the long-term costs
 Think in terms of PROCESSES rather than SKILLS

Functional Organization

Process Approach

Using a Process Approach, we no longer think in terms of individual

technical teams “doing their own thing”.
Rather we think in terms of the overall goal which should be directed to the
main goals of the organization.
 Service
Approach
We focus on providing project management services attendant to
the logistics and IT domains.
 Service Delivery
Project  Project Management Office (PMO) Support
Management  Implement Proven PM Methodologies/ Governance Mechanism
Office  Earned Value Management
 Independent Verification &Validation
 Competitive Sourcing

LogIT's project management services leverage our experience and capabilities in strategic planning and effective project
oversight, cornerstones in our logistics and information technology service areas.
Logistics  Management of Logistics Assets via IT Applications
 Production of Logistic Support Plans, Acquisition Documents
 Research and Analysis Studies

Achieving efficiency throughout the logistics lifecycle is one of LogIT’s goals. Our approach is rooted in the analysis of the
technologies, communication links, and control systems associated with logistics projects to propose the solution that
achieves effectiveness and reliability.

Information  Custom/Web-Enabled Application Development

Technology  Enterprise Information Management/Data Reconciliation
 Infrastructure Consolidation
 Implementation of Document/Record Management Systems
 COTS Product Evaluation and Implementation

LogIT’s IT solutions and services leverage leading-edge information technologies to provide the highest level of quality,
performance-based solutions and services to ensure client satisfaction.
 IT Imperatives: Business Alignment
… and improving Management
Practices increases productivity … but doing both
more than investing in IT… yields highest increase!

Management-Practices Score +
75th Percentile and +8% +20%1
Above

Improving IT Practices
increases productivity …

25th Percentile and

Below
0 +2%

- Intensity of IT Deployment +
25th Percentile and 75th Percentile and
Below Above
1
For 9 out of 10 companies whose management-practices scores and levels of IT deployment both ranked in the top quartile.
Source: 2005, Dorgan & Dowdy -- London School of Economics-McKinsey Survey and analysis of 100 companies in France, Germany, United Kingdom,
and United States
IT in Organizations is Changing
Today’s IT Organizations Tomorrow’s IT Organizations

 Focused on Technology  Focused on Customer

Outcomes

 Firefighting Mode  Demand-Driven

 IT Organizational  Enterprise Services and

“Stovepipes” Process

 Unknown Costs  Financial Transparency

 Technical Metrics  Business Value