TFHD IT Service DeskITIL Best Practices Part 1Overview

Objective TFHD IT Service Desk To present the basic concepts and tools for IT Services Management within the ITIL Framework and to illustrate how IT Customers can better understand the value delivered through IT Services.

Scope of TFHD IT Service DeskITIL FrameworkIT Service Life CycleIT Service StrategyService PlanningService Design and OperationsService Metrics

EVOLUTION OF ITILITIL - Information Technology Infrastructure LibraryHistoryOriginally created in late 80s by the UK governmentNow truly global and applicable to all IT Services Focus on process and roles rather than organisationVersion 1 in 1991- focused on UK GovernmentVersion 2 in 2000 - Industry wide and took into account changes in technologyVersion 3 in June 2007 Life Cycle Approach

OGCOffice of Government Commerce UK Treasury ministry

ITSMFThe driver behind all things ITIL taken over from OGCGlobalUSA, Canada, Mexico, Argentina, and Brazil - AmericasAustralia, India, Singapore - Asia PacificDenmark, France, Germany, Netherlands, Sweden, UK - EMEA

Is a collection of books which contain recommendations & suggestions to improve provision of IT ServicesNot 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 ITILITILBS 15000ISO 20000BS15000 the first standard derived from ITIL

ISO 20000: ISO standard derived from ITIL

SUMMARY OF ITIL v3 PROCESSES & FUNCTIONS

SERVICE LIFE CYCLE APPROACH

The Four Ps

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

Key CONCEPTS..Service & Service OwnerService ManagementProcess & Process OwnerFunctions, Staff, RolesMetrics, Interfaces Accountable, Responsible, Consulted, Informed or ARCIPlan, Do, Check, Act or PDCA, Deming's Process Improvement Cycle Compliance & GovernanceConcept of Caps

ARCI Model Accountable = Sign off Authority Responsible = The DoersConsulted = Have InputInformed = Kept Aware

Key:

A= Accountable; ultimately answerable for completion of task (only 1 person per task)

R = Responsible; performs the task

C= Consulted; provides information or assistance

I = Informed; kept apprised of the activity

Continuous step by step improvementConsolidated of the level reached(e.g. ISO 9001)PLAN DO CHECK ACT (Demings Cycle for Improvement)

STORY TIME

1. SERVICE STRATEGY

ACTIVITIES OF SERVICE STRATEGYIdentify market & define your target areasDecide what services you will offer & who are the customers. IE CPSI, Varian

Develop your service offeringsBuild on/improve your services

Develop strategic assetsDevelop new services as requested by customer.

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

BASIC CONCEPTS OF SERVICE STRATEGYUtility It is derived from the attributes of service which have a positive effect on the performanceWhat does the service do?Functional requirementsFeatures, inputs, outputsFit for purpose

Warranty It is derived from positive effect being available when needed, in sufficient capacity & magnitude & dependably in terms of Continuity & SecurityHow well service does itFit for use

OBJECTIVESTo understand customers current requirements

Trend of requirements over a period/business cycle

Match the customers expectations with organization's capabilities of providing services

Ensure IT Sevices are in alignment with customers needs

KEY CONCEPTS

Core service vs. Supporting Service

Pattern of Business Activity (PBA), User profile

Business Relationship Management

Core Service vs Supporting ServiceCore Service is the service which actually brings value to the customer. Its a service which is KEY from organization's perspective as wellLab Testing, the core services provided will be all lab samples testing so IT Services that support Soft would be the Core Service. Supporting Service supports or enhances the core servicesIts like an added feature which may not be desired but important to haveMany times it becomes necessity E.g. supporting services in above case could be providing a helpdesk which helps/troubleshoots any issues/queries faced by users when they access the website

Pattern of Business Activity (PBA) & User ProfileRepresents change in pattern of customers demands as explained by organizationImportant to track as it helps organization identify improvements in existing services or identify future opportunitiesAlso important to study customers business & changing business needs

User ProfileDemand patterns shown by usersUsers means people or even processes/functions etc.Is usually associated with/is subset of PBA

Business Relationship ManagementCustomer centric activities

Constant communication with customer

Helps to know the improvements & future scope for business

Usually the First Point of contact for the customer especially for a first time/new business

METRICSAccurate understanding of customers business needs

Loss of Business to competitors especially for a new services

Improved Customer Relationships

ROLES & RESPONSIBILITIESBusiness Relationship ManagerDocumenting the customers business needs, PBAs, User Profile etc.Ensure SLP matches customers needsDiscussions with internal teams for setting up new SLPs or establishing the existing onceAnalyze potential SLP improvements , Look for future business opportunities with customer

He may have a team working with multiple customers

SERVICE STRATEGY 2 OF 3SERVICE PORTFOLIO MANAGEMENT

Simply SpeakingSPM = How to bundle/package the services

OBJECTIVESPlan for services you can offer

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

Provide information/guidance to Service Design

KEY CONCEPTSService Portfolio, Its Components & structure

Business Service, Business Service Management

Business Service vs. IT Service

Service PortfolioIt describes how the services are bundled & packaged

Takes care of Marketing components such asWhat is the REASON customer will buy these services?What is the REASON customer will buy these services from US?SWOT analysis for our Organizations service capabilitiesWhat could be our pricing modelsHow best to allocate resources & capabilities

ACTIVITIESDAAC (Based on DMAIC cycle)DefineTake Service Strategy as input, Define Inventories, Business Case, Validation of Data

AnalyzeDecide Value Proposition, Prioritization, Balance of Demand & Supply

ApproveAuthorize / Finalize the Portfolio, Services, Resources

CharterCommunicate information / decisions, Resource allocation, Chartering of services

Continually Update/ Improve the portfolio begins next DAAC

METRICSHow Accurate & Up-to-Date Portfolio is

Is the information contained is relevant from Market perspective

Is it in alignment with customer needs

ROLES & RESPONSIBILITIESProduct ManagerCreate Business caseEvaluate Marketing OpportunitiesDeploy new services/retire the old onesManage a set of related services

Business Relationship ManagerFirst Point of ContactDocument Customer needs

SERVICE STRATEGY 3 OF 3FINANCIAL MANAGEMENT

Simply SpeakingFinancial Management = Getting the biggest BANG for the IT $$$$.

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 PRICECost = Actual Expenditure of providing IT Services

Price = The amount at which one Sells IT Services

Hence Price Cost = Profit

KEY CONCEPTSService Valuation (Previously known as Charging)

Service Investment Analysis (Previously known as Budgeting)

Accounting

SERVICE VALUATION (CHARGING)A mechanism which helps organization to recover at least the expenditure incurred on providing IT services with additional monitorial profits as applicable

Types Cost Recovery (Actual)Cost Plus Fixed FeeCost Plus % of CostsCost Plus IncentivesNotional ChargingFixed PriceTime & Material

SERVICE INVESTMENT ANALYSISWas termed as Budgeting in v2

It is a Time phased allocation of Funds

It helps Track & Control the expenditure pattern

Also guide how to utilize the funds

ACTIVITIESTo design mechanisms for service valuation, Investment Analysis & Accounting

To align IT Business with Districts Finance Priorities

Ensure the accuracy in implementing IT Cost Accounting

METRICSAccuracy in Budgeting, Forecasting & Controls

Quick & Effective financial decision making

Proper IT Accounting

Ensure Timely Bill Payments & Collections

Overall performance of Finance Dept.

Best Practice vs. Good Practice Good practice could be either the application of Best Practice or could be an input to Best Practice itself.Read ALL slides till IT PROCESSES & POSITIONS.There can not be >1 person Accountable for any Task. Any single person can not be Accountable & Responsible for the same task.Please see the Roles & Responsibilities of Demand Management