1

IT Service Management:Management:Demystifying ITIL®

J. Andrew Atencio “Andy”City of Greenwood VillageCity of Greenwood Villageaatencio@greenwoodvillage.com

Agenda

1. Introduction and History

2. Why Service Management/ITIL®?

3. The How and the Challenges

4. Defining Success

5. Closing / Q&A

2

What is ITSM?

Managing Services to meet Customer g gNeeds.

Align IT with Business Processes Leveraging repeatable processes to deliver quality services that are cost-justified.The goal is to leverage & integrate:PeoplepProcesses (best practice)Technology

There are many ITSM frameworks: ITIL®, MOF, MSF, CMMI, etc.

What is ITIL®?

Information Technology Infrastructure Library®

O d b th Offi f G t COwned by the Office of Government Commerce (OGC) for public useITIL® is a best practices framework not a standardHistorically the framework covers:

Service Support Service DeliveryApplication Management Infrastructure ManagementInfrastructure ManagementApplication and Service Development Security ManagementComplimentary guidance on:Case Studies, Business & Management skills, Business Continuity Management, Network Services Management, Business Perspective, Security…

3

ITIL®’s Origins & Evolution

Late 1980sUK government project startedUK government project started CCTA (OGC) involved in development plus practitioner and consulting organizationsFirst books published

Early 1990sThe library completed

Late 1990sGenerally accepted as the de-facto standard for IT service management Introduced ITIL® to North America

2000-2005Submission to ISO\IEC20000 – fast tracked and acceptedVendor community begins to develop products in support of ITIL®ITIL® Version 3 commenced

2006ITIL® – a global standard

2007ITIL® Version 3 released

Terms and Acronyms

Term DefinitionBusiness Process Management

Activities performed by businesses to optimize and adapt their processes.

CI Configuration Item – The physical stuffCMDB Configuration Management Database(s)

–Where you store information about CIsCustomer The person that has monetary

responsibility for the outcome provided by the service. Also responsible for defining the business need for a service.

Incident Any event that is not part of the standard operation of a service and that causes, or may cause, an interruption to, or a reduction in, the quality of that service.

4

Terms and Acronyms (Cont.)

Term DefinitionITSM (IT Service Management) An integrated set of processes

used in the management of services, which are needed to support the business objectives.

Known Error An Incident or problem for which the root cause is known and for which a work-around or alternative has been identified.

Problem Unknown underlying cause of one or more incidents.

Process A connected series of activities or action aimed at achieving a specific objective.

Terms and Acronyms (Cont.)

Risk A measure of the exposure to which an organization may be subjected.

SLA – Service Level Agreement A written agreement between a service provider and Customer that documents agreed service levels for a service

UC Underpinning Contract A contract with an externalUC – Underpinning Contract A contract with an external supplier covering delivery of services that support the IT Organization.

User The person that uses a service on a day-to-day basis

5

The Real World View?

ScreenScrape

Application

Network

End User

IT Magic

ScreenScrape

ScreenScrape

MessageQueue

Message

DownloadFile

DownloadFile

Transaction

TransactionFile

ORB

ORB

CICS Gateway

APPC

RPC

TransactionFile

Sockets

Sockets

Message

Application

Application

ApplicationApplication

Application

Application

Application

Source: Gartner

End User

ScreenScrape

gQueue

MessageQueue

DownloadFile

TransactionFile

TransactionFile

CICS Gateway

APPCRPCMessage

Application

Application

Application

The Goal of ITIL®

ITBusinessBusinessAlignedBusiness g

IT

6

ITIL® Model – Version 2

ITIL® V2 Management Processes

Version 2 of ITIL® is made up of 10Version 2 of ITIL® is made up of 10 management processes separated by Service Delivery and Service Support.Service Desk (SS)Incident (SS)

Service Level (SD)Availability (SD)Incident (SS)

Problem (SS)Change (SS)Configuration (SS)Release (SS)

Availability (SD)Financial (SD)Continuity (SD)Capacity (SD)

7

Moving from V2 to V3

V2: IT to Business AlignmentICT Infrastructure ManagementICT Infrastructure ManagementService SupportService DeliveryApplications ManagementSecurity ManagementBusiness PerspectivePlanning to Implement Service Mgmt.

V3: Service Life-Cycle Approachy ppService Strategies: deciding on the servicesService Design: requirements & designService Transition: deployment & activationService Operations: day-to-day operationsContinual Service Improvement: how to improve

Purpose of ITIL® V3?

Meet needs of today’s technologiesMeet needs of today s technologies.Address practice gaps and missing processes.Move processes into a lifecycle.Stronger connections to other emerging g g gstandards.

8

ITIL® Model – Version 3

Changes in ITIL® V3

Expanded focus on business alignment.p gInclusion of business value in the business alignment perspective.Service as a iterative lifecycle rather than a linear process.Inclusion of Continual Service Improvement across all processesImprovement across all processes.More prescriptive than simple guidance.Number of services expanded from 11 core to 26 to provide an expanded view of ITSM

9

Processes in Version 3

ITIL® V3 Governance Processes

There are seven processes that fall punder the governance function:

Service Measurement (CSI)Service Reporting (CSI)Service Improvement (CSI)Demand Management (SS)Strategy Generation (SS)Service Portfolio Management (SS)IT Financial Management (SS)

10

ITIL® V3 Operations ProcessesThere are 19 processes that fall under the operations function

Service Catalogue (SD)Service Level Mgmt. (SD)Capacity (SD)Availability (SD)Service Continuity (SD)Information Security (SD)

Release and Deployment (ST)Service Validation (ST)Evaluation (ST)Knowledge Mgmt. (ST)Event (SO)

operations function

Information Security (SD)Supplier Mgmt. (SD)Transition Planning & Support (ST)Change (ST)Asset and Config. (ST)

Event (SO)Incident (SO)Request (SO)Problem (SO)Operation (SO)

Why a lifecycle?

Enabling integration ith b iwith business

processesManaging service from cradle to graveRemoving process silosProviding for Service M tManagement as a holistic lifecycle rather than as a linear path

11

Where is Service Support?

Where is Service Delivery?

12

Updated Definition of a Service

A ‘service’ is a means of delivering value

to customers by facilitating outcomes

t t t hi ith t thcustomers want to achieve without the

ownership of specific costs and risks

Service Components

13

Service Design Constraints

Values and ethics

Standards and regulations

© 2007 Metaphor Systems. All rights reserved.

Updated Definition of a Service

A ‘service’ is a means of delivering value

to customers by facilitating outcomes

t t t hi ith t thcustomers want to achieve without the

ownership of specific costs and risks

14

What is Value?

What is Value?

Value is determined by the customerValue is determined by the customer

Value is variable

Value changes over time and context

V l h t b ti t dValue has to be negotiated

Value can be managed

Value is not always financial

15

Measuring Value

If value is not realized ‘valueIf value is not realized, value added’ is equal to ‘money spent’

Value Realized must be greater than money spent

Value added internally is not value until it is realized

What does this mean for IT?

If IT wants to demonstrate value itIf IT wants to demonstrate value it has to link its services to where value is realized, not where valueis added

If IT can not do this it will always be viewed as ‘money spent’ not ‘value added’

16

Why ITSM?

Increase Customer SatisfactionIncrease Customer SatisfactionAbility to Provide Cost JustificationGain Efficiency and Eliminate Duplicate EffortsCompetitive AdvantageProcess Reengineering for IT Industry

What do each of these mean?

Customer Satisfaction

Customers want ‘anytime, anywhere’ y yServices

This is same for internal and externalJust think how often you have to worry about getting to the bank before closing?

Set Clear Expectations (this is iterative)Define expectationsMonitor themMeet themChange them

17

Level of Expectation

Cost Justification

Being able to define what services cost?gHolistic view: the total cost of a serviceBusiness focused cost justification

Allows you to communicate with customers in their termsProvides customersthe ability to clearly y ycommunicate their expectations of whatlevel of service they are willing to pay for (or accept)

18

Improved Efficiency

Ability to reduce or even eliminate duplication ilacross silos

Sharing of resources and knowledge Repeatable process allows re-use, improvement

More efficient application of resources to existing workloadAbility to incorporate quality improvementMore effective collection information for planning & d i i ki& decision-makingContinuous ongoing repeatable processesExamples: Six Sigma, Deming, 7-step, Waterfall and ITIL®, etc.

The Application Management Lifecycle

Requirements

Optimize Design

Operate Build

Deploy

19

Competitive Advantage

Outsourcing gResearch – can it help us?

IT groups shift from managing technology (the stuff) to managing ‘end-to-end’ services.Customers, even governmentCustomers, even government customers, have option to go somewhere else!Decision-making to drive the vision and goals of the organization

Process Reengineering

BPR (Business Process Reengineering)( g g)The business has been reengineered, but has IT kept pace?Complex, distributed technology systems need to build in and leverage

Disciplined processes that align with b i tbusiness outcomesIntegration of processes, technology, people and culture

20

ITIL® = Common Sense

“Common sense is the knack ofCommon sense is the knack of seeing things as they are, and doing things as they ought to be done.”

C. E. Stowe

Find out if you are already doing ITSMAssess yourselfAssess yourselfDetermine what are you doing well versus what can be improvedThis is know as the DOH! effect

Where to Start?

Leverage Quick Wins (Keep it Simple)g Q ( p p )Incident or Change easiest because it typically exists already in some formProblem and Configuration are typically more complex but doable

Depends on environmentService Level Management

Service Delivery processes are a must (Availability, Capacity, Continuity)Don’t forget about them

21

Where to Start?

Find your Championsy pEmpower the Champions Let them use their expertise to get you there!

Top-down, bottom-up approachCreate your roadmap andCreate your roadmap and communicate consistently and often!

Revisit planning (Continual Service Improvement)‘Re-plan’ (the ITIL® Lifecycle)

Where Does ITIL® Take You?

Where are you now & where do youWhere are you now & where do you want to be (2, 4, 6 years)?

This should be viewed within the context of the business!

A mission and vision, which are aligned with the business are criticalaligned with the business, are critical to setting the stage and managing culture change.Put it in writing so you can communicate it

22

Bumps in the Road

Leadership/Management Buy-inp g yWrite a business case that is effective and conciseAlign the business case with the business outcomes

Participation across ITS ll it Wh t l d d i ?Sell it – What are we already doing?Identify champions – Let them be the ones to get people excitedShowing success will keep momentum moving forward

The Bumps in the Road –Are People!

Organizational Change ManagementOrganizational Change Management (OCM) is:

“The critical process of preparing, motivating, and equipping people to meet new business challenges associated with technologicalassociated with technological changes.” RWD Technologies

OCM is a proactive, disciplined, repeatable approach to Organizational Change

23

Changing the Organization

Important aspects of handling change:g gIdentifying the potential for individual and/or group resistanceBased on organizational culture find the best ways to mitigate the risks created by resistanceInclude technology driven organizational change planning in the current projectchange planning in the current project management methodology Definition of metrics capable of measuring and proving the gains of the changes, in understandable terms

Making ITIL® Successful

Leadership/management buy-in (if doing top d ) OR t h l t ff b i (if d i b ttdown) OR technology staff buy-in (if doing bottom up)

The higher the betterOrganizational culture change driven by leadership

Focus on awareness and communicationThis is a continual and on-going effort

Go after the low hanging fruit to build momentumGo after the low hanging fruit to build momentum and show quick wins

Immediate pain that can be fixed fast?Education, education, and even more education!

Formal training and certificationEducate everyone to the appropriate level

24

Where to Get Help

Connect with your itSMF USA Local Interest G (LIG)Group (LIG).

Meeting today!Visit http://www.itsmfusa.org/

Attend the itSMF USA Fusion 08 Conference and Expo

San Francisco – September 7-10, 2008Visit http://www.itsmfusion.com/

O li i l diOn-line resources including:The official ITIL® web site http://www.ITIL-officialsite.comArticle based sites like:

http://www.itsmwatch.com/

Giving Credit

Information in this presentation has come f i l di th tifrom many sources including the expertise of:

David Cannon – CAIvor McFarlane – IBMGeorge Spalding – Pink ElephantTheresa Compton – State Farm

ITIL® is a registered trademark owned and licensed by the Office of Government Commerce (OGC)

25

QUESTIONS?

Andy Atencio – aatencio@greenwoodvillage.com