Jan Presentation 3
Transcript of Jan Presentation 3
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Theory of ITSM CSIP
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Key concepts ITSM The directive for ensuring delivery IT Services isin-line with organizations mission
Increase efficiency and effectiveness by 30%
(Gartner) Changing the behavior of IT resources activities
Historical behaviors, Habits, etc
Senior management must be part ofimprovements
Middle management will be most affected
Implementation done through quick wins (4 to 8
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Why invest in ITIL and ITSM?To answer the following questions (partial list, examples): How much money was spent on managing failures?
What are all the components required to deliver a specific
IT service?
Do you an agreement for all IT services being delivered?
Can you justify 100% of the IT expenditures?
How many failures were caused because of changes?
What is the projected service availability (availability
requirements) of your top 3 IT Services?
Have all the IT services been defined?
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Why would the military adopt a
process approach?Good, robust and standardized processes across militaryservices, combat commands, Defense Information SystemsAgency and the intelligence community:
Can be audited and improved
Impose organizational discipline
Clarify organizational boundaries and roles
No process stands alone
Cut across silos promote communication and co-
operation Capture organizational knowledge
Link individuals with the work roles they fill
Avoid duplication of effort
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ITIL contributes to the Global
Information Technology Model Integrated central processes Common processes
Standard procedures
Clear roles and responsibilities Improved IT availability, reliability and security ofmission critical IT services
Justify cost of service quality
Provide services that meets business, customers andusers demands
Provide demonstrable performance indicators
Policy-driven
Incident handling
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ITSM through a scenarioThe best way to show why to get involved in ITSMand using ITIL is through an improvement example
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Q1. What is the vision ?
(objectives) Reduce downtime of IT
Services
(for users)
Increase efficiency inmanaging failures
Increase service levels forclients
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Q2. Where are you now ?
(Assessment) Organization with 500 incidents per
day
Average incident time (MTTR)7mins 30secs
Average time spent on detection anddiagnosis is 4mins
12 staff at the Service Desk, 7
involved in detection and diagnosis
Salary of SD staff $75K/year
Cost of unavailability $7.50/minuteof down time for users (???)
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Q3. Where do you want to be
(Targets) Reduce detection/diagnosis time
by 1 minute
Save $300,000/year Increase SLA Target
Reduce SD Staff by 15%
Associated KPIs: MTTR
% SLA Breached
% Failed RFC
Etc
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Q4. Process Improvement Using ITIL Framework best practices and
ITSM discipline
Availability Management (AM) Process confirmMean Time To Restore (MTTR) anddetection/diagnosis time
AM making recommendation on how to reducefailure time
Change Management (ChgM) to manage RequestFor Change (RFC) to implement newimprovements
Configuration Management Database (CMDB) torecord new Configuration Items (CIs) being
implemented
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Q4. Process Improvement AM Recommendations Training of SD staff ($20K) Implement Knowledge DB ($35K) Implement new module of Monitoring tool ($40K) Change Incident Management process
Incident changed process to use KDB and newmonitoring tool Hire consultants to help change the processes andanalysis of recommendation. Cost of $250K
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Q5. Measuring Success of
Improvement Annual savings of$555,000 from recommendations
Current situation (Calculations) 7 staff X 8 hours X 60 minutes X 70% ondetection/diagnosis = 2352 minutes of possible work 500 incidents/day X 4 minutes unavailability = 2000minutes of unavailability time
If detection/diagnosis is reduced from 4 mins to 3 mins 500 incidents/day X 3 minutes unavailability = 1500
minutes of unavailability time Reduction of unavailable time of 500 minutes (From2000 mins to 1500 mins)
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Q5. Measuring Success of
Improvement Calculation Resource Savings 1500 minutes of unavailable time 5 staff X 8 hours X 60 minutes X 70% = 1680 minutes ofpossible workWas 7 staff X $75K = $525K
Reduced to 5 staff X $75 = $375K SAVINGS OF $150K/year or 28.5%
Calculation Availability Savings Savings of 500 minutes of unavailability (was 2000
reduced to 1500) $7.5/minutes X 500 minutes (saved) / day = $3,750/day 200 days of work X $3,750/day = $750K SAVINGS OF $750K/year
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Q5. Measuring Success of
Improvement $150K + $750 = $900K / Year Cost of improving: $95K (Availability recommendations) + $250K (Consultantassistance in process changes) = $345K cost
$900K - $345K = Net Savings of $555,000
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Increase revenue of the organization
Lower cost of operations Legal compliancy (Political)
Better control/knowledge of ServiceDelivery
Increase morale of the organization
all improvement projects should be linked to business objectives ...
ITSMImprovements
BusinessObjectives
The 5 main business objectives
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Creating a business vision At the end of the day it is not the process diagram
that will make a difference, but the business
results Take the time to define yourKPIs and Business
Objectives from the start
You will be forced to look at the bottom line for
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Conclusion This is just an example but the premise is sound ITIL and ITSM is about making real life changes It is proven that it works Make sure you set your objectives and set some
KPIs to measure the success
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Questions
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Important KPIs Incident,
Problem & CM Number of Business impact 1 incidents Number of Business impact 1 solved within agreedservice level times Service Desk user daily satisfaction survey Incidents vs KE ratio
# of KE solutions implemented last period % of assets (CIs) in the CMDB (under change control) % increase of CIs audited % of CI under Control by Type
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Important KPIs Change &
Release % of failed changes % of failed changes (by service line) % of emergency RFCs raised # of rejected changes because of bad categorization # of Emergency Releases
% of Releases with Approved RFCs
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Important KPIs Service
Delivery
% of security incidents byS
erviceL
ine Number of security incidents solved within agreedservice level times % ofICA updated in capacity plan % of successful ITSCM plan invocation
% of clients withSL
As in place % ofSLAs breached % of items sold that are in service catalogue (by $ value) Total Cost of operations % Variance between budget and expenses
% Variance between budgeted and billed revenues % Variance in planned and completed report dates Business Growth (Also by each MajorService Line) Average score in client survey