IT SERVICE MANAGEMENT for BUSINESS PROCESS

Scope of Module 8ITIL FrameworkIT Service Life CycleIT Service StrategyService PlanningService Design and OperationsService Metrics

EVOLUTION OF ITIL ITIL - Information Technology Infrastructure LibraryHistory

Originally created in late 80s by the UK government Now truly global and applicable to all IT Services Focus on process and roles rather than organisation Version 1 in 1991- focused on UK Government Version 2 in 2000 - Industry wide and took into account changes in

technology Version 3 in June 2007 – Life Cycle Approach

OGC Office of Government Commerce – UK Treasury ministry

ITSMF The driver behind all things ITIL taken over from OGC Global

USA, Canada, Mexico, Argentina, and Brazil - Americas Australia, India, Singapore - Asia Pacific Denmark, France, Germany, Netherlands, Sweden, UK - EMEA

Is a collection of books which contain recommendations & suggestions to improve provision of IT Services

Not a standard but a Best Practices FrameworkNeeds to be adopted and/or adapted

ITIL …

Benefits of ITIL framework:-increased user and customer satisfaction with IT

servicesimproved service availability, directly leading to

increased business profits and revenuefinancial savings from reduced rework, lost time,

improved resource management and usageimproved time to market for new products and

servicesimproved decision making and optimized risk.

Standards based on ITIL

ITIL

BS 15000 ISO 20000

•BS15000 the first standard derived from ITIL

•ISO 20000: ISO standard derived from ITIL

SERVICE LIFE CYCLE APPROACH

The Four P’s The implementation of ITIL as a practice is about

preparing and planning the effective use of The Four Ps:

People

Processes

Products

Partners

FOCUS AREAS

STORY TIME

ITIL describes processes, procedures, tasks and checklists that are not

organization-specific, used by an organization for establishing integration

with the organization's strategy, delivering value and maintaining a

minimum level of competency. It allows the organization to establish a

baseline from which it can plan, implement and measure. It is used to

demonstrate compliance and to measure improvement.

The Five Volumes :ITIL Service StrategyITIL Service DesignITIL Service TransitionITIL Service OperationITIL Continual Service Improvement

1. SERVICE STRATEGY

ACTIVITIES OF SERVICE STRATEGYIdentify market & define your target area

Decide what services you want to offer & who can be the potential customers

Develop your service offerings Build on/improve your services

Develop strategic assets Develop new services

Help clarify the relationships between different services, processes, strategies etc.

SERVICE STRATEGY

1.Demand Management

2.Service Portfolio Management

3.Financial Management

SERVICE STRATEGY 1 OF 3

DEMAND MANAGEMENT

Simply Speaking

Demand Management = Know your customer and then identify his / her requirements

OBJECTIVES To understand customer’s current requirements

Trend of requirements over a period/business cycle

Match the customer’s expectations with organization's capabilities of providing services

Ensure Warranty & Utility are in alignment with customer’s needs

SERVICE STRATEGY 2 OF 3

SERVICE PORTFOLIO MANAGEMENT

Simply Speaking

SPM = How to bundle/package the services

OBJECTIVES

• Plan for services you can offer

• Record of all the services including current, expired & in Pipeline

• Provide information/guidance to Service Design

SERVICE STRATEGY 3 OF 3

FINANCIAL MANAGEMENT

Simply Speaking

Financial Management = Getting the Deal ($$$) right

OBJECTIVESTo serve as strategic tool to align IT services with Financial

Decisions

To balance the Cost & Price as appropriate

Accounting for IT Services

Facilitate Accurate Budgeting

Finalize Financial Policies (e.g. Charging)

Financial Review & Control

COST VS PRICE

Cost = Actual Expenditure of providing IT Services

Price = The amount at which one Sells IT Services

Hence Price – Cost = Profit

2. SERVICE DESIGN

ACTIVITIES• Design services to meet Business Objectives ◦ Design Secure & Resilient IT Infrastructure

◦ Identify, remove the risks from the services before they go live

◦ Create & maintain IT plans, policies, technical & process framework (Design tool ensures standards are adhered to)

◦ Design measurement methods & metrics for assessing effectiveness of processes

◦ Design Effective & efficient processes for design, transition & operation phases

◦ Scope includes new services & improvements as may be needed over a service lifecycle

SERVICE DESIGNService Catalog ManagementService Level Management Availability ManagementCapacity Management Supplier Management Information Security ManagementService Continuity Management

SERVICE DESIGN 1 OF 7

SERVICE CATALOG MANAGEMENT

Simply SpeakingService Catalogue Management = Services Ready to Use

OBJECTIVESCreate & Manage Service Catalog

Keep Service Catalog Up to Date with latest information

Continual Improvement in Management of Service Catalog

SERVICE DESIGN 2 OF 7SERVICE LEVEL MANAGEMENT

Simply Speaking

Service Level Management = Negotiate & Agree Service Levels with client

OBJECTIVESTo Negotiate, Agree & Document the Service Levels

To balance the customer expectations & organization’s capabilities

To measure, report & continually maintain/improve service level

To manage the performance as per agreed service levels

To manage the customer relationship

Service Scope and descriptionService hoursMeasures of availability and reliabilitySupport details – who to contact, when and howRespond and fix timesDeliverables and time scalesChange approval and implementationReference to IT Service Continuity PlanSignatoriesResponsibilities of both partiesReview processGlossary of terms

ELEMENTS OF SLA

SLA,OLA,UC

Organization Management

Customer

Org’s Internal Teams

Vendors

SLA

OLA

UC

SERVICE DESIGN 3 OF 7

AVAILABILITY MANAGEMENT

Simply SpeakingAvailability Management = Ensure IT is working as

agreed

OBJECTIVES

To ensure agreed Availability Level is met or exceeded

The Availability Management process plays an important role in ensuring that a defined level of IT services is continuously accessible to customers, in a cost-effective manner

Continually Optimize & Improve the availability by preparing Availability Plan

• The ability of a service, component or configuration item to perform it’s agreed & expected function when required

• Usually expressed as Percentage

Availability= (AST-DT) X 100 ----------------- AST

AST = Agreed Service TimeDT = Downtime

AVAILABILITY

Availability MetricsMTRS- Mean Time to Restore Service (Down Time) =

Relates to Maintainability (Also has an element of Serviceability)

Detection

Diagnosis Recover

Restoration

IncidentOccurred

MTBF- Mean Time Between Failures(Uptime)= Availability

MTBSI – Mean Time Between system Incidents = RELIABILITY

Time

IncidentOccurred

Repair

SERVICE DESIGN 4 OF 7

CAPACITY MANAGEMENT

Simply SpeakingCapacity Management = Ensure IT is sized in optimum & cost effective manner

OBJECTIVESProvide the required IT Infrastructure in a cost effective

manner while also meeting it’s requirements

Ensure optimum utilization of IT infrastructure

Work on current & future needs

Produce & regularly upgrade Capacity Plan

SERVICE DESIGN 5 OF 7

SUPPLIER MANAGEMENT

Simply SpeakingSupplier Management = Manage Supplier Relationship &

Performance

OBJECTIVESManage supplier relationship & performance

Ensure the Right & Relevant contracts with supplier

Manage the contracts throughout their lifecycle

Create & maintain Supplier Policy, List & Contracts Database

Supplier Selection

Request Supplier Responses

Requirement of 3rd party supplier

Select Suppliers

Analyze Supplier Capabilities

Contract with Supplier (UC)

Supplier providesServices

Manage Suppliers SCD

Update supplier’s

records

Supplier – Contracts Database (SCD)

Supplier ContractsDatabase

Organization’s SupplierPolicy & Strategy

Contracts categorizationAccording to Types of services,Owner, expiry date, value etc.

Fresh/Renewed Contracts

Existing Contracts

Records of Past/Expired Contracts

Contracts Modification/Termination

Supplier’s performanceAgainst contract terms

SERVICE DESIGN 6 OF 7INFORMATION SECURITY MANAGEMENT

Simply Speaking

ISM = Protect your Data & Information

OBJECTIVESTo prevent Unauthorized Access (& allow Authorized Access)

To provide effective security measures at Strategic, Tactical & Operational organizational Levels

To enable organization to do a business “Safely”

To comply with Security Requirements as per SLA

SERVICE DESIGN 7 OF 7SERVICE CONTINUITY MANAGEMENT

Simply Speaking• Service Continuity Management = Recover from disaster Z

as per agreed & applicable SLA

OBJECTIVES• To create & manage IT service continuity & recovery plans

• To reduce potential disaster occurrence

• To negotiate & manage necessary contracts with 3rd parties

• Balance SLAs & Cost factors while planning for service continuity

3. SERVICE TRANSITION

ACTIVITIES• Plan & Implementation of all the releases / Services (Applies to

new & existing services)◦ Ensure that the changes as proposed in Service Design are

realized

◦ Authorize, Package, Build, Test & Deploy the releases into production

◦ Transition of services to & from other Organizations

◦ Decommission or Termination of services

SERVICE TRANSITION

Service Asset &Configuration Management Change ManagementRelease & Deployment ManagementKnowledge Management

SERVICE TRANSITION 1 OF 4

SERVICE ASSET & CONFIGURATION MANAGEMENT

Simply SpeakingSACM = Know what you have

OBJECTIVESIdentify, Record & Provide accurate information of the

Configuration Items (CI = IT components)

Provide the Logical Model for IT infrastructure correlating the IT services & their components

Protect Integrity of the CIs

Create & maintain Configuration Management System

Manage Service Assets (Service CIs)

Perform regular audits / status accounting activities for all the CIs

CONFIGURATION MANAGEMENT SYSTEM

CMDB1Services

CMDB2H/W

CMDB3Policies

Data/Source information gathering

Knowledge & Logic processing

Presentation Layer /User Interface

NOTE – CMDB can be any Database, or even Excel File

SERVICE TRANSITION 2 OF 4

CHANGE MANAGEMENT

Simply SpeakingChange Management = Minimize the Impact of

Change

OBJECTIVESStudy the adverse Impact of change & minimize it

Create & maintain a Change Management process

Prevent Unauthorized changes

Prepare Change (& Back out) Plans via FSC & provide PSA

Post Implementation Reviews of Changes

Maintain a record of all changes

Note - Change Management does NOT implement change

7 Rs of ChangeWho RAISED itWhat is REASON for changeWhat is the RETURN expected from changeWhat could be the RISKS involved in changeWhich RESOURCES are needed to implement changeWho (which R&D Team) is RESPONSIBLE for build,

test & implement changeIs there (or what) any RELATIONSHIP between this

change & other changes

SERVICE TRANSITION 3 OF 4RELEASE & DEPLOYMENT MANAGEMENT

Simply SpeakingR & D Management = Bring in the change Carefully

OBJECTIVESImplementing the authorized changes as per

Change plan

Plan, Design, Build, Test & Install Hardware & Software components

Skills & Knowledge Transfer to enableCustomers & users the optimum use of serviceOperations & support staff to run & support the

service

SERVICE TRANSITION 4 OF 4KNOWLEDGE MANAGEMENT

Simply Speaking Knowledge Management = Gather, Analyze, Store & Share the knowledge

OBJECTIVES Improve the efficiency by reducing the need to Re-

discover the knowledge Create, Maintain & update Service Knowledge

Management System Make sure that a Right & Relevant information at

Right time is available for organization’s requirements (e.g. Customer details, contract/SLA data)

Data - Information – Knowledge - Wisdom Data◦ A set of discrete facts about the events◦ Usually large amount of data is/can be

collected Information◦ The data is arranged/sorted in appropriate

context & manner so that it’s easy to locate/work on

◦ Answers questions like Who, what, when, where?

KnowledgeCreated based on the information/data or own

expertiseAnswers How?Is dynamic & context basedHelps in decision making

WisdomGives detailed understanding Arriving at the judgmentHelps finalize future decisions/actions

Data - Information – Knowledge - Wisdom

Service Knowledge Management System - SKMS

Services H/W Policies

Presentation Layer /User Interface

SCDCDBDML

CMS

Service Knowledge Base

Knowledge & Logic Processing

4. SERVICE OPERATION

ACTIVITIESKeeping services into Operations◦ Ongoing day to day activities◦ Ensure that services are delivered at agreed levels

(SLA)◦ Continual Improvement in meeting the SLAs &

management of operations Involves Management of◦ Services◦ Service Management Processes◦ People◦ Technology

SERVICE OPERATIONService Desk (FUNCTION)Incident ManagementEvent ManagementRequest FulfillmentAccess ManagementProblem Management Technical Management (FUNCTION)IT Operations Management (FUNCTION)Application Management (FUNCTION)

5. CONTINUAL SERVICE IMPROVEMENT

KEY CONCEPTSCSI Model

Service Measurement

VDJI Structure

Types of Metrics

7 Step Improvement Process

Continual Service Improvement Model

Service Measurement

Ability to capture the performance of an End to End service against Targets/Standards

Also helps in prediction of future performance

Produces management reports for comparison / Trend

Why do we measure?

Organization’s Measurement

Framework

Strategic Vision

To Validate

ChangesCorrective

Actions

To In

terv

ene

Factual Evidence

To Justify

TargetsMetrics

To Direct

ROLES & RESPONSIBILITIES• Service Manager◦ Oversee the development, implementation, Evaluation

& Ongoing management of all new & existing products & services

◦ Develops Business Case, Product Line strategy & Architecture

◦ New Service Deployment & lifecycle Schedules

◦ Perform Service Cost Management

◦ Instill a Market Focus

7 Step Improvement Process

1.Define What You should

measure

2.Define What You can measure

3.Gather the Data

4.Process theData

5.Analyze theData

6.Present & usethe Information

7.Implement corrective

Actions

Goals

SUMMARY OF ITIL v3 PROCESSES & FUNCTIONS