Integrated Process Model - v2 Service ManagementGartner Hype Cycle for IT Operations Management, 2007 visibility Continuous Data Protection CMDB Inevastructure Library v3 Data De-cupleation. Server Vitualzation Managernent Tools K— cusiness Service Management Took, Jab Scheduing Toots Recovery From Disk Notwork Monitoring Toots Server Pravisioning ana T inventory, Sofware ‘Corfiguration Management ‘Distrbution and AT Change Management Process emelige !T Change Management Tools Application Maney Run Book Automation Real-Time intrasructure Fr Workload Automation Broker Tools IT Savice Portolo Managertent Tools IT Service Catalog Applicaton ‘Transaction Protiing End-User Monitoring Tools TT Senice Desk Tools Incident Management Process Capacity Planning Tools Event Correlation and Analysts Tools ‘Storage Resource Management and SAN Management PC Life Cycle Configuration Management ‘Service-Level Agreement Monitortig and Resorting Tools Problem Managemert Process T Chargeback Tools Network Performance Reporting Tools IT Asset Managemert Process and Tools Irfammation Technology Infrastructure Library As of June 2007 Peak of Technology Trough of Plateau of agg” gyi pettanment ——SHCAFENhenment prety time = Years to mainstream adeption: siecle Olessthan 2years © 2toSyears @5to 10 years Amore than 10 years @ before plateauManage IT from a Business Perspective Order to Cash IT Process (e.g. ITIL) 2 8 Co 2 FA 8 £ 4 Er ee Pa 3} s cS IT EnvironmentUse controls to go faster . air) lee on eo) Business gro Saxe le nes IT Process olT Controls lees GENE loin SLO IT EnvironmentOui of Service Experience ——___—. Business| Service Request Management Service Desk Dashboards Asset Management Change Management Discovery Capacity Sofware Management Contiguration Imp ‘Management Event [Management Virtual Servers woos QQ @ Orne Applications ‘and MiddlewareIT Budget Reality How much business value could you create with 2X the investment in IT innovation? IT Budget Current 9 “As 76% of the IT budget goes to 24% ‘ i 7 operations, firms that implement Change the BSM can potentially save 25% of Business their overall IT budget.” — Forester Research i, pkerengBSUt Kop The BP n ‘Mind if You Want To Reap The Full Benefts’ T Mendel, P O'Neill with 1 Garber Ral Ap 2008 Run the Business L__| beChanging Nature of IT in Organizations Focused on Technology Focused on Customer Outcomes Firefighting Mode Demand-Driven Organisational “Stovepipes” Enterprise Services and Process Unknown Costs Financial Transparency Technical Metrics Business ValueITIL 3.0 and Supporting MaterialsWhat’s New? * Evolution, not revolution + Lifecycle approach to Services + ITIL v3 includes: — Business service management (BSM) - now defined and recommended — Configuration Management System » Includes CMDB, and now... » Federation, Data collection, Topology, — Knowledge Management — Request Fulfillment — Business Impact Analysis — Access Management — Service Portfolio Management — Service as an Asset that creates value through Utility and WarrantyAccess/Identity Management ST, caorne (Deland) (sot ‘Approvers ‘User Population = Directory View | Admin = § a) tit tit Pere Wee oes q ~ BMC Atrium’ iy DUE us PRUNE)What Is a Service? ° V2 “A service is one or more IT systems which enable a business process” © V3 “A service is a means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks”Service Management + Service Management is a set of specialized organizational capabilities for providing value to customers in the form of services. + Service Management takes the form of a set of Functions and Processes for managing services over their Lifecycle. Service Management is also used as a synonym for IT Service Management.Utility and Warrant Utility “Attributes of the service that have a positive effect on the performance of activities, objects, and tasks associated with desired outcomes” Warranty “The positive effect being available when needed, in sufficient capacity or magnitude, and dependably in terms of continuity and security” - Utility is what the customer gets, and warranty is how it is delivered.The Source of Service Value = Utility = Utility is what the customer wants — the service is “Fit for Purpose” = Derived from the attributes of a service that: = Have a positive effect on the performance of activities, objects, and tasks associated with desired outcomes = Or with the removal or relaxing of constraints on performance = Warranty = Warranty is how what the customer wants is delivered — the service is “Fit for Use” = Derived from the positive effect of: « Being available when needed = In sufficient capacity or magnitude = Dependably in terms of continuity and securityService Strategy Objectives Service Strategy seeks to answer the questions: » What services should we offer and to whom? - How do we differentiate ourselves from competing alternatives? How do we truly create value for our customers? How do we capture value for our stakeholders? » How can we make a case for strategic investments? How can financial management provide visibility and control over value- creation? How should we define service quality? How do we choose among different paths for improving service quality? » How do we efficiently allocate resources throughout a portfolio of services? » How do we resolve conflicting demands for shared resources?Service Strategy The first book in the lifecycle is the Service Strategy which looks at the overall business aims and expectations ensuring the IT strategy maps onto these. = The Practice of Service Management = Service Principles " Service Assets, Provider Types, Structures, fundamentals (New) = Service Strategy (New) = Service Economics = IT Financial Management = Return on Investment (New) = Service Portfolio Management (New) = Demand Management (New) = Strategy & Organisation Culture, Technology, Operations (New)Service Design + Pragmatic Service Blueprint + Policies, architecture, portfolios, service models « Effective technology, process and measurement design ¢ Outsource, shared services, co-source models? How to decide and how to do it + The service package of utility, warranty, capability, metrics tree * Triggers for re-designService Design The second book is Service Design which starts with a set of new or changed business requirements and ends with the development of a solution designed to meet the documented needs of the business. Service Design Principles (New) Service Design Processes = Service Catalog Management (New) = Service Level Management = Capacity Management = Availability Management = Service Continuity Management * Information Security Management = Supplier Management (New) « Application Management (New as core) = Data & Information Management (New) = Requirements Engineering (New) = Service Design Considerations (Organisation, Process & Tools) (New)Service Transition + Managing Change, Risk and Quality Assurance + Newly designed Change, Release and Configuration processes « Risk and quality assurance of design * Managing organization and cultural change during transition + Service knowledge management system + Integrating projects into transition * Creating and selecting transition modelsService Transition The next book is Service Transition which is concerned with managing change, risk and quality assurance and has an objective to implement service designs so that service operations can manage the services and infrastructure in a controlled manner. * Service Transition Principles * Service Transition Processes * Transition Planning & Support (New) * Change Management " Service Asset (New) & Configuration Management = Configuration Management System (New) * Release & Deployment Management ® Service Validation & Testing (New) * Evaluation (New) = Knowledge Management (New)Service Operation « Responsive, stable services « Robust end-to-end operations practices + Redesigned, Incident and Problem processes + New functions and processes « Event, technology and request management * Influencing strategy, design, transition and improvement ¢ SOA, virtualization, adaptive, agile service operation modelsService Operation The fourth book in the lifecycle is Service Operation which is concerned with business as usual activities. = Service Operation Principles = Service Operation Processes = Event Management (New) = Incident Management = Request Fulfillment (New) = Problem Management = Access Management (New) = Monitor & Control, IT Operations, Tech. Domain Mgmt. (New) = Functions: * Service Desk = Technical Management (New) = IT Operations Management (New) * Applications Management (New)Continual Service Improvement « Measurements that mean something and Improvements that work * The business case for ROI * Getting past just talking about it * Overall health of ITSM * Portfolio alignment in real-time with business needs * Growth and maturity of SM practice + How to measure, interpret and execute resultsContinual Service Improvement The final book is Continual Service Improvement which has an overall view of all the other elements and looks for ways that the overall process and service provision can be improved. Continual Improvement Principles & Fundamentals (New) = Continual Improvement Processes (New) = The Seven Step Improvement Process = Service Reporting = Service Measurement = Return on Investment (ROI) for CSI = Business Questions for CSI = Service Level Management & Service Improvement = CSI Methods & Techniques: Assessments, Benchmarking, Measurement Models (SWOT, Balanced Score Card) (New)Quality service delivery depends on integration Business Objectives Ot Ra seopl . [eceem le ter ere Pack of sefvtte context’ Su Processes Requirements ||... Delivery | Doptoy giiea| ss ooo Not élosed-I looped. Not automa Management informa Contig fon / iting ne | ao ae a ‘Data not shared or integrated. ~ Technol ges || tetcow. || Dee Gewer || sect joe Sotepe @ Senneloay oe" Silo-specific. Not Integrated. | .Service management processes are applied across the new ITIL Service Lifecycle Strategy Impro Coat eT vement eras pea LEE Tora) Peery m, PEW Ee aes lee— : i improvement Service Strategy Service Portfolio Mgmt Change Mgmt Monitoring & Event Mgmt || Measurement & Control Market inteligence || Service Catalog Mgmt || oaxevice Asal & Incident Mgmt Service Measurement Knowledge Mgmt & 2 Request Fulfillment Service Assessment & {Financial Management |) Service Level Mamt |! service knowledge system|| (standard changes) ‘Analysis Service Release & Process Assessment & Service Portfolio Mgmt Capacity Mgmt ery anend Pare Enter sant Analysis Performance and Risk Service Level Demand Management Availabilty Mgmt rare ‘Access Mgmt s "| Risk Management ‘Service Continuity Mgmt ‘Testing Improvement Planning Information Security Mami] — Acquire, Build, Test infrastructure (SO 27K, 180 20k) Release __ Management Service Release, 7 ‘Supplier & Contract Mgmt || 4. ce, Test & Pilot ‘IT Operations Processes Organizational Change & ||, CePioyment Facilities ‘Communications ecm a ‘Management TransferKey links, inputs & outputs of the service lifecycle stages The Business / Customers SLPS from o Resource Requirements = i Policies and constraints zs Strategies SE ee roa : Standards SOs ge + Sutin Desins Architectures 23 ee €5 £2 Service . rE : ae 7 § Transition t= Tested solutions 2 Transition Plans 5 . \ =o) Se Service ae i + (pect sei =o Operation |e geal Pow se 2 7 \ Zo 2 Continual Service rs Improvement | Improvement actions & plansScope of change and release management for services Strategic change Tactical change Operational change Business Manage the business Service provider Dene es Manage the business processes Service change Manage business operation Supplier Manage the supplier's business Manage external services External OperationsITIL V3 Service Management Processes across the Lifecycle Continual Service Improvement (CSI) 7-Step Improvement Process Service Measurement Service Reporting Service Strategy (SS) Strategy Generation Financial Management Service Portfolio Management Demand Management Service Transition (ST) Transition Planning and Support ‘Change Management Service Asset & Configuration Mgmt Release and ‘Service Validtion and Testing Evaluation ‘knowledge Management Service Design (SD) Setvice Catalogue Management Seivice Level Management Capacity Management ‘Availabilty Management IT Service Continuity Management Information Security Management Supplier ManagementService Strategy i—onirao nant cities werenes acne “uunzation panies — Dese te suppor ncioents ie — oe Ly = sieve marines is utilized \J| is supported Ny | cess Posse — >| design service ineients. ——_" operation tow sence ———s o is delivered __}) eepioed (Feng) oun eons trae Eee] campemtngmnee igi “ponte epee rs =e ‘strategy Source: Service StrategyGeneric Process ElementsProcess Model sub: oi Process: | START High Level Process Customer Intiatoe ‘Global Change Manager Local Chango | Wager Local Change Coordinator Local Change Acvscry Boer (CAB) Emerge Comnnitee ES) Global CABIEC Change Buler (ually Assurance (4) (cM Proooss ‘Owner Responsible for Process ActivesFive Aspects of Service DesignService PortfolioService Catalog Relationship Manager | L_] | sia | | | | | Service Catalogue Product ManagerService Catalog (Continued) ooo Service Catalogue(s) | Service Portfolio ae ' Description Supported Products ' ‘ Value Proposition Policies ( Business Cases Ordering and Request ( Procedures ‘ Priorities \ ‘Support Terms and ‘ Risks Conditions j Offerings and Packages Entry Points and Escalations f Cost and Pricing \ Pricing and ee ChargebackService Level Management (SLM) Concepts * SLM is the name given to the processes of planning, agreeing to, monitoring, and reporting of SLAs, and the ongoing review of service achievements to ensure that quality is maintained and improved » An SLA is a written agreement between an IT service provider and the IT customers, defining the key service targets and responsibilities of both parties - An OLA is an agreement between an IT service provider and another part of the same organization, for example, a facilities department that maintains the air conditioning, or network support team that supports the network serviceService Level Management Activities Log and manage all complaints and compliments Review and revise SLAs, service scope OLAs, contracts, and any other underpinning agreements Determine, negotiate, document, and agree upon the requirements for services Monitor and measure service performance achievements of all operational services against targets within SLAsSLA, OLA, and UC * Service Level Agreements, Operational Level Agreements, and Underpinning Contracts — Service Level Agreement (SLA) » Key service targets and responsibilities of both parties — Operational Level Agreement (OLA) » Internal departments or organizations — Underpinning Contract (UC) » A contract with an external organizationuc + An underpinning contract is likely to be structured with the following sections: — The main body containing the commercial and legal clauses — Elements of a service agreement, as described earlier, attached as schedules — Other related documents as schedules, for example: » Security requirements » Business continuity requirements » Mandated technical standards » Migration plans (agreed prescheduled change) » Disclosure agreementsSLA Classification aS Clients/ { || ww) \[L« Users |. ——— ——+——T = Underpinning Other Internal Contracts ITunits lcs External ProvidersAvailability, Reliability, Maintainability, and Serviceability * Availability is the ability of a service, component, or Configuration Item (Cl) to perform the agreed upon function when required + Reliability is a measure of how long a service, component, or Configuration Item can perform the agreed upon function without interruption * Maintainability is a measure of how quickly and effectively a service, component, or Configuration Item can be restored to normal working after a failure * Serviceability is the ability of a supplier to meet the terms of their contractAvailability Terms-Reliability Reliability ‘Available time in hours Se! Number of breaks Available time __ Total downtime Reliability inhours ~ — inhours (MTEB in hours) Number of breaks Reliability is often measured and reported as Mean Time Between Service Incidents (MTBSI) or Mean Time Between Failures (MTBF)Maintainability Maintainability | Total downtime in hours Ee nos) Number of service breaks Example: A situation where a 24 x 7 service has been running for a period of 5020 hours with only two breaks, one of 6 hours and one of 14 hours would give the following figures: Availability = (5020-(6+14)) / 5020 x 100 = 99.60% Reliability (MTBSI) = 5020 / 2 = 2510 hours Reliability (MTBF) = 5020 — (6+14) / 2 = 2500 hours Maintainability (MTRS) = (6+14) / 2 = 10 hoursIncident Management Process FlowUrgency, Impact, and Priority + Priority — The required sequence of Incident resolution. Priority = Impact x Urgency * Impact — The extent to which an Incident leads to a departure from expected service operations, such as the number of users or Cls affected + Urgency — The required speed of resolving an IncidentPriority = Impact x UrgencyProblem Management ProcessChange Management ProcessThe Four Ps of Service Management The implementation of ITIL Service Management as a _ practice is about preparing > and planning the effective and ) efficient use of the four Ps: — People — Processes — Products (services, technology, and tools) — Partners (suppliers, manufacturers, and vendors) ‘© Minder Chen, 2008 ITIL 3.0- 52Service Operations—Quality of Service versus Cost of Service « Service Operation is required to consistently deliver the agreed upon level of service « Service Operation must keep costs and resource utilization at an optimal Balancing Service Cost and Quality cost level sonal ae ost ia + An increase in the level Sledoay of quality usually results in an increase in the cost ++ of service edonance la Recon + Relationship is not always directly proportional ‘© Minder Chen, 2008 ITIL 3.0- 53The Deming Cycle Clockwise direction Maturity Level Optimized 5 Continuous astern by step Managed 4 Defined 3 Repeatable 2 SS consolidation ofthe level reached (e.g. ISO 9001, BSI) Initial 1Continual Service Improvement Continual Service Improvement Model What is the vision? <>) LS Business Vision, mission, goals and objectives Where is the service provider now? Baseline Assessments Where does the service provider want to be? Measurable Targets How does the service provider get there? Service and Process Improvement DU Did the service provider get there? Measurements and MetricsMeasurements for Continual Service Improvement + Why are measurements performed? —To validate —To direct —To justify —To intervene Your Measurement FrameworkIT Operations Management Process Maturity Model Level 4 Value manic +ITas astategic business partner +lTasasene ae provider +I ard business Level 1 Proactive * Define services, metric linkage J +Anale trends classes, pricing + ITrbusiness Const Reactive Sot nreahous + Understand costs cen j vel O . improves business —— eee *Predict problems | * Suarantee SLAs process Chaotic + Inventory + Measure applica | * Measure and : report service + Realtime # Ad hoc *Deskiop tion availability ee panties . software + Automate “és i Undocumented | ietibution ee + Integrate processes Ease aca] ; +Mature problem, * Unpredictable | initiate problem | * Sete i Cambeky ——_— ros + Multiple help eae change, asset management GES +Alert and event papacy mrgrelpiccassee ‘Service and Account Management + Miniral |T management ese peau ee neeett Service Delivery Process Engineerin Veer call availability (uptown) = one notification Operational Process Engineering Tool Leverage Source: www.gartner.com/DisplayDocument?doc_cd=131972ITIL Process Coverage and Mapping ITIL v3 Core Mw Core Continual Sewice Servier Sewic) «= Senvee Suto Process Susie Desgn __Trarsiion_ Operation mgrovement 1 ‘Access Management En] SS] 2 ‘Avaiabity Management 3 Business Quedtions tor CS” || a) | | 4 Capacty Management 5 ‘Change Management [a 8 Demand Management 7 Evaluation =) Peis eeate] 8 Event Management SS 9 Financial Management for T Series™ 10 Incident Management " IT Service Contry Management 2 ‘Knowledge Management 2 Problem Management 16 Release and Deployment Management Z 5 Request Fulitent aes % Ror en ” Securty Management 8 ‘Service Level Management 18. Service Aswot and Confguraion Management 2 Service Catalog Mana gornnt 2 Service Portola Management 2 Service Repoting and Meeutement ron Il | 2 ‘Service Valin and Test ee 24 Seven Step improvement Process* EE SS Fs Supplier Mans gemert % TrastionPlamng a Suppor” a a = Friary source of detalfor named process ‘Secondary source of deta for named process ‘Associaton wth, terface or expict toto named proces ‘No expt reference or tle substance to reference SS = ITILv2 Publication ~ Servier Support (ive Book) = IMILv2 Publeaton ~ Service Delvery (Red Book) :/ www. symani yn/enterpris wity response Y 7/ .cessmap.htm!The Service V Model Service V model to represent Configuration Levels and Testing Define Customer! kita Validate Service | Packages, Level — | ausiness Requirements [g........74/7197.......y| Offerings and contracts z towel | Samasenee = I aA I A. —_ A. Level Ons | icchare| | Setiome I A Develop Service ec Sou fe