Unit 2

Chap 1- SERVICE DESIGN

Introduction
• The primary objective of Service Management is to
ensure that the IT services are aligned to the business
needs and actively support them
• The main aim of Service Design is to design IT services,
together with the governing IT practices, processes and
policies, to realize the strategy and to facilitate the
introduction of these services into the live environment
ensuring quality service delivery, customer satisfaction
and cost-effective service provision
Service management as a
practice
• 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 is a set of specialized organizational
capabilities for providing value to customers in the form of
services.
Functions and
•Process
Functions:
• units of organizations specialized to perform certain types of work and
responsible for specific outcomes
• self-contained, with capabilities and resources necessary for their
performance and outcomes
• have their own body of knowledge, which accumulates from
experience
• provide structure and stability to organizations.
• Process
• examples of closed-loop systems because they provide change and
transformation towards a goal, and utilize feedback for self-reinforcing
and self-corrective action
• Characteristics:
• Measurable
• Specific results
• Customers
• Responds to specific event
Service design
fundamentals
• Main purpose of the Service Design stage of the lifecycle is the
design of new or changed services for introduction into the live
environment.
• Five individual aspects of service design:
• New or changed services
• Service Management systems and tools, especially the Service
Portfolio, including the Service Catalogue
• Technology architecture and management systems
• The processes required
• Measurement methods and metrics.
• 4 Ps of service design:
• People
• Processes
• Products (services, technology and tools)
• Partners (suppliers, manufacturers and vendors)
Service design
fundamentals
• Benefits of good service design practice:
• Reduced Total Cost of Ownership (TCO)
• Improved quality of service
• Improved consistency of service
• Easier implementation of new or changed services
• Improved service alignment
• More effective service performance
• Improved IT governance
• More effective Service Management and IT
processes
• Improved information and decision-making
Service design
fundamentals
• Processes within service design
• Service Catalogue Management: to ensure that a Service Catalogue is produced and
maintained, containing accurate information on all operational services and those
being prepared to be run operationally
• Service Level Management: negotiates, agrees and documents appropriate IT service
targets with representatives of the business, and then monitors and produces reports on the
service provider’s ability to deliver the agreed level of service
• Capacity Management: to ensure that cost-justifiable IT capacity in all areas of IT always
exists and is matched to the current and future agreed needs of the business, in a timely
manner
• Availability Management: to ensure that the level of service availability delivered in all
services is matched to, or exceeds, the current and future agreed needs of the business, in a
cost- effective manner
• IT Service Continuity Management: to ensure that the required IT technical and service
facilities (including computer systems, networks, applications, data repositories,
telecommunications, environment, technical support and Service Desk) can be resumed
within required, and agreed, business timescales
• Information Security Management: to align IT security with business security, and ensure
that information security is effectively managed in all service and Service Management
activities
• Supplier Management: to manage suppliers and the services they supply, to provide
seamless quality of IT service to the business, ensuring value for money is obtained.
Service design
principles
• Role:
• The design of appropriate and innovative IT services, including their
architectures, processes, policies and documentation, to meet current
and future agreed business requirements.
• Must consider these aspects:
• Business process
• Service
• SLA/SLR
• Infrastructure
• Environment
• Data Applications
• Support Services
• OLA and contracts
• Support teams
• Suppliers
Service design
•principles
Main goals and objectives of service design:
• Design services to satisfy business objectives, based on the quality,
compliance, risk and security requirements, delivering more effective
and efficient IT and business solutions and services aligned to
business needs by coordinating all design activities for IT services to
ensure consistency and business focus
• Design services that can be easily and efficiently developed and
enhanced within appropriate timescales and costs and, wherever
possible, reduce, minimize or constrain the long-term costs of service
provision
• Design efficient and effective processes for the design, transition,
operation and improvement of high-quality IT services, together with
the supporting tools, systems and information, especially the Service
Portfolio, to manage services through their lifecycle
• Identify and manage risks so that they can be removed or mitigated
before services go live
• Design secure and resilient IT infrastructures, environments,
applications and data/information resources and capability that meet
the current and future needs of the business and customers
Service design
principles
• Balanced Design
• Functionality :
• Resource: people, technology, and budget available
• Schedules : Timescales
Service design
•principles
Main goals and objectives of service design:
• Design measurement methods and metrics for assessing the
effectiveness and efficiency of the design processes and their
deliverables
• Produce and maintain IT plans, processes, policies, architectures,
frameworks and documents for the design of quality IT solutions, to
meet current and future agreed business needs
• Assist in the development of policies and standards in all areas of
design and planning of IT services and processes, receiving and
acting on feedback on design processes from all other areas and
incorporating the actions into a continual process of improvement
• Develop the skills and capability within IT by moving strategy and
design activities into operational tasks, making effective and efficient
use of all IT service resources
• Contribute to the improvement of the overall quality of IT service within
the imposed design constraints, especially by reducing the need for
reworking and enhancing services once they have been implemented
in the live environment.
Identifying service
•requirements
Service Design must consider all elements of the service by
taking a holistic approach to the design of a new service.
• The scalability of the service to meet future requirements, in support of
the long-term business objectives
• The business processes and business units supported by the service
• The IT service and the agreed business functionality and requirements
• The service itself and its Service Level Requirement (SLR) or Service
Level Agreement (SLA)
• The technology components used to deploy and deliver the service,
including the infrastructure, the environment, the data and the
applications
• The internally supported services and components and their
associated Operational Level Agreements (OLAs)
• The externally supported services and components and their
associated underpinning contracts, which will often have their own
related agreements and/or schedules
• The performance measurements and metrics required
• The legislated or required security levels
Identifying and documenting
requirements and drivers
• Information on the requirements of existing services
• New facilities and functionality requirements
• Changes in business processes, dependencies, priorities, criticality and impact
• Changes in volumes of service transactions
• Increased service levels and service level targets due to new business driver, or
reduced for old services, lowering priority for those due for replacement
• Additional needs for Service Management information.
• Information on the requirements of new services:
• Facilities and functionality required
• Management information required and management needs
• Business processes supported, dependencies, priorities, criticality and impact
• Business cycles and seasonal variations
• Service level requirements and service level targets
• Business transaction levels, service transaction levels, numbers and types of users
and anticipated future growth
• Business justification, including the financial and strategic aspects
• ,,,,,,,,,,,,
• Level of business capability or support to be provided, e.g. local business-based
support.
Design
activities
• Requirements collection, analysis and engineering to ensure
that business requirements are clearly documented and agreed
• Design of appropriate services, technology, processes, information
and process measurements to meet business requirements
• Review and revision of all processes and documents involved in
Service Design, including designs, plans, architectures and
policies
• Liaison with all other design and planning activities and roles, e.g.
solution design
• Production and maintenance of IT policies and design
documents, including designs, plans, architectures and policies
• Revision of all design documents, and planning for the deployment
and implementation of IT strategies using ‘roadmaps’,
programmes and project plans
• Risk assessment and management of all design processes and
deliverables
• Ensuring alignment with all corporate and IT strategies and
policies.
Design
activities
• Inputs:
• Corporate visions, strategies, objectives, policies and
plans, business visions, strategies, objectives and plans,
including Business Continuity Plans (BCPs)
• Constraints and requirements for compliance with
legislated standards and regulations
• IT strategies and strategic documents (from Service
Strategy)
• Measurement tools and techniques.
Design
activities
• Deliverables:
• Suggested revisions to IT strategies and policies
• Revised designs, plans and technology and management
architectures, including:
• The IT infrastructure and infrastructure management and environmental
strategy, designs, plans, architectures and policies
• The applications and data strategies, designs, plans, architectures and
policies
• Designs for new or changed services, processes and
technologies
• Process review and analysis reports, with revised and improved
processes and procedures
• Revised measurement methods and processes
• Managed levels of risk, and risk assessment and management
reports
• Business cases and feasibility studies, together with Statements
of
Requirements (SORs) and Invitations to Tender (ITTs)
• Comments and feedback on all other plans
Design
aspects
• Service solutions, including all of the functional
requirements, resources and capabilities needed and
agreed
• Service Management systems and tools, especially the
Service Portfolio for the management and control of
services through their lifecycle
• Technology architectures and management architectures
and tools required to provide the services
• Processes needed to design, transition, operate and
improve the services
• Measurement systems, methods and metrics for the
services, the architectures and their constituent
components and the processes.
Design
aspects
1. Designing service solutions
2. Designing supporting system
3. Designing technology architectures
4. Designing processes
5. Design of measurement systems and metrics
Chap 2- Service design processes

• Service catalogue management

• Service level management
• Capacity management
• Availability management
• IT service continuity management
• Information security management
• Supplier management
Service catalogue
management
• Purpose:
• To provide a single source of consistent information on all of the
agreed services, and ensure that it is widely available to those who are
approved to access it.

• Goal:
• to ensure that a Service Catalogue is produced and maintained,
containing accurate information on all operational services and those
being prepared to be run operationally.

• Objective:
• To manage the information contained within the Service Catalogue,
and to ensure that it is accurate and reflects the current details, status,
interfaces and dependencies of all services that are being run, or
being prepared to run, in the live environment.
Service catalogue
management
• Scope:
• Definition of the service
• Production and maintenance of an accurate Service Catalogue
• Interfaces, dependencies and consistency between the
Service Catalogue and Service Portfolio
• Interfaces and dependencies between all services and
supporting
services within the Service Catalogue and the CMS
• Interfaces and dependencies between all services, and
supporting components and Configuration Items (CIs) within the
Service Catalogue and the CMS.
Service catalogue
•management
Aspects:
• Business (customer view)
• Technical (not customer view)
• Activities:
• Agreeing and documenting a service definition with all relevant parties
• Interfacing with Service Portfolio Management to agree the contents of the
Service Portfolio and Service Catalogue
• Producing and maintaining a Service Catalogue and its contents, in
conjunction with the Service Portfolio
• Interfacing with the business and IT Service Continuity Management on the
dependencies of business units and their business processes with the
supporting IT services, contained within the Business Service Catalogue
• Interfacing with support teams, suppliers and Configuration Management on
interfaces and dependencies between IT services and the supporting services,
components and CIs contained within the Technical Service Catalogue
• Interfacing with Business Relationship Management and Service Level
Management to ensure that the information is aligned to the business and
business process.
Service level
management
• Goal:
• To ensure that an agreed level of IT service is provided for all
current IT services, and that future services are delivered to
agreed achievable targets.

• Purpose:
• to ensure that all operational services and their performance are
measured in a consistent, professional manner throughout the IT
organization, and that the services and the reports produced
meet the needs of the business and customers.
Service level
•management
Activities:
• Designing SLA frameworks
• Determine, document and agree requirements for new services and
produce SLRs
• Monitor service performance against SLA
• Collate, measure and improve customer
• Satisfaction
• Review and revise underpinning
• agreements and service scope
• Produce service reports
• Conduct service reviews and instigate
• improvements within an overall SIP
• Review and revise SLAs, service scope
• and underpinning agreements
• Develop contacts and relationships
• Complaints and compliments
Service level
management
• SLA frameworks:
• Service-based SLA (covers one service for all customers of
that service)
• Customer-based SLA (agreement with an individual customer
group, covering all the services they use)
• Multi level SLA
• Corporate level
• Customer level
• Service level
Service level
management
• Inputs:
• Business information
• Business impact analysis
• Business requirements
• The strategies, policies and constraints from Service Strategy
• The Service Portfolio and Service Catalogue
• Change information
• CMS: containing information on the relationships between the
business services, the supporting services and the
technology
• Customer and user feedback, complaints and compliments
Service level
management
• Outputs:
• Service reports
• Service improvement plan (SIP)
• Service quality plan
• Document templates
• Service level agreements (SLA)
• Service level requirements (SLR)
• Operational level agreements (OLA)
• Reports on OLAs and underpinning contracts
• Service review meeting minutes and actions
• SLA review and service scope review meeting
minutes
• Revised contracts
Capacity
management
• Goal:
• To ensure that cost-justifiable IT capacity in all areas of IT always
exists and is matched to the current and future agreed needs of
the business, in a timely manner’.
• Sub process:
• Business capacity management
• translates business needs and plans into requirements for service and
IT infrastructure, ensuring that the future business requirements for IT
services are quantified, designed, planned and implemented in a timely
fashion
• Service capacity management
• management, control and prediction of the end-to-end performance and
capacity of the live, operational IT services usage and workloads
• Component capacity management
• management, control and prediction of the performance, utilization and
capacity of individual IT technology components
Capacity
management
• Proactive activities
• Pre-empting performance issues by taking the necessary actions
before they occur
• Producing trends of the current component utilization and estimating
the future requirements, using trends and thresholds for planning
upgrades and enhancements
• Modeling and trending the predicted changes in IT services, and
identifying the changes that need to be made to services and
components of the IT infrastructure and applications to ensure that
appropriate resource is available
• Ensuring that upgrades are budgeted, planned and implemented
before SLAs and service targets are breached or performance issues
occur
• Actively seeking to improve service performance wherever it is cost-
justifiable
• Tuning and optimizing the performance of services and
components.
Capacity
management
• Reactive activities
• Monitoring, measuring, reporting and reviewing the
current performance of both services and components
• Responding to all capacity-related ‘threshold’ events and
instigating corrective action
• Reacting to and assisting with specific performance issues
Availability
management
•Goal:
• To ensure that the level of service availability delivered in all services is matched to
or exceeds the current and future agreed needs of the business, in a cost-effective
manner.
• Purpose:
• to provide a point of focus and management for all availability-related issues,
relating to both services and resources, ensuring that availability targets in all areas
are measured and achieved.
• Objectives:
• Produce and maintain an appropriate and up-to-date Availability Plan that reflects
the current and future needs of the business
• Provide advice and guidance to all other areas of the business and IT on all
availability-related issues
• Ensure that service availability achievements meet or exceed all their agreed
targets, by managing services and resources-related availability performance
• Assist with the diagnosis and resolution of availability related incidents and
problems
• Assess the impact of all changes on the Availability
• Plan and the performance and capacity of all services and resources
• Ensure that proactive measures to improve the availability of services are
implemented wherever it is cost-justifiable to do so.
Availability
management
• Activities:
• Reactive activities: the reactive aspect of Availability
Management involves the monitoring, measuring, analysis and
management of all events, incidents and problems involving
unavailability. These activities are principally involved within
operational roles.
• Proactive activities: the proactive activities of Availability
Management involve the proactive planning, design and
improvement of availability. These activities are principally involved
within design and planning roles.
• Level:
• Service availability: involves all aspects of service availability and
unavailability and the impact of component availability, or the
potential impact of component unavailability on service availability
• Component availability: involves all aspects of component
availability and unavailability.
IT Service continuity
management
• Goal:
• to support the overall Business Continuity Management process
by ensuring that the required IT technical and service facilities
(including computer systems, networks, applications, data
repositories, telecommunications, environment, technical support
and Service Desk) can be resumed within required, and agreed,
business timescales.
IT Service continuity
management
• ITSCM lifecycle:
• Initiation
• Policy setting
• Specify terms of reference and scope
• Allocate resources
• Define the project organization and control structure
• Agree project and quality plans
• Requirements and strategy
• Requirements: business impact analysis
• Strategy: document the required risk reduction measures and recovery
options to support the business
• Implementation
• Ongoing operation
Information security
management
• Goal:
• to align IT security with business security and ensure that
information security is effectively managed in all service
and Service Management activities.
• Basic concepts
• Security framework
• The Information Security Policy
• The Information Security Management System (ISMS)
Information security
management
• Activities:
• Production, review and revision of an overall Information Security
Policy and a set of supporting specific policies
• Communication, implementation and enforcement of the security
policies
• Assessment and classification of all information assets and
documentation
• Implementation, review, revision and improvement of a set of security
controls and risk assessment and responses
• Monitoring and management of all security breaches and major
security incidents
• Analysis, reporting and reduction of the volumes and impact of
security
breaches and incidents
• Schedule and completion of security reviews, audits and penetration
tests.
Information security
•management
Security measures
• Preventive: security measures are used to prevent a security incident from
occurring. The best-known example of preventive measures is the allocation of
access rights to a limited group of authorized people.
• Reductive: further measures can be taken in advance to minimize any
possible damage that may occur. Familiar examples of reduction measures are
making regular backups and the development, testing and maintenance of
contingency plans.
• Detective: if a security incident occurs, it is important to discover it as soon as
possible – detection. A familiar example of this is monitoring, linked to an alert
procedure. Another example is virus-checking software.
• Repressive: measures are then used to counteract any continuation or
repetition of the security incident. For example, an account or network address
is temporarily blocked after numerous failed attempts to log on or the retention
of a card when multiple attempts are made with a wrong PIN number.
• Corrective: The damage is repaired as far as possible using corrective
measures. For example, corrective measures include restoring the backup, or
returning to a previous stable situation (roll-back, back-out). Fallback can
also been seen as a corrective measure.
Supplier
management
• Goal:
• To manage suppliers and the services they supply, to provide
seamless quality of IT service to the business, ensuring value for
money is obtained.
• Objectives:
• Obtain value for money from supplier and contracts
• Ensure that underpinning contracts and agreements with suppliers are
aligned to business needs, and support and align with agreed targets
in SLRs and SLAs, in conjunction with SLM
• Manage relationships with suppliers
• Manage supplier performance
• Negotiate and agree contracts with suppliers and manage them
through their lifecycle
• Maintain a supplier policy and a supporting Supplier and Contract
Database (SCD).
Supplier
management
• Lifecycle
• Identification of business need and preparation of the business case:
• Produce a Statement of Requirement (SOR) and/or Invitation To Tender (ITT)
• Ensure conformance to strategy/policy
• Prepare the initial business case, including options (internal and external),
costs, timescales, targets, benefits, risk assessment.
• Evaluation and procurement of new contracts and suppliers:
• Identify method of purchase or procurement
• Establish evaluation criteria – for example, services, capability (both personnel and
organization), quality and cost
• Evaluate alternative options
• Select
• Negotiate contracts, targets and the terms and conditions, including
responsibilities, closure, renewal, extension, dispute, transfer
• Agree and award the contract.
• Establish new suppliers and contracts:
• Set up the supplier service and contract, within the SCD and any other associated
corporate systems
• Transition of service
• Establish contacts and relationships.
Supplier
management
• Lifecycle (cont.)
• Supplier and contract categorization:
• Assessment or reassessment of the supplier and contract
• Ensure changes progressed through
• Service Transition
• Categorization of the supplier
• Update of SCD
• Ongoing maintenance of the SCD.
• Manage the supplier and contract performance:
• Management and control of the operation and delivery of service/products
• Monitor and report (service, quality and costs)
• Review and improve (service, quality and costs)
• Management of the supplier and the relationship (communication, risks,
changes, failures, improvements, contacts, interfaces)
• Review, at least annually, service scope against business need, targets and
agreements
• Plan for possible closure/renewal/extension.
• End of term:
• Review (determine benefits delivered, ongoing requirement)
• Renegotiate and renew or terminate and/or transfer.
Service design technology-related
activities
• Requirements engineering
• Data and information management
• Application management
Requirements
engineering
• Requirement types:
• Functional
• Management and operational
• Usability
• Investigation techniques:
• Interviews
• Workshops
• Observation
• Protocol analysis
• Shadowing
• Scenario analysis
• Prototyping
Data and Information
management
• Scope:
• Management of data resources
• Management of data/information technology
• Management of information processes
• Management of data standards and policies
• Data classification:
• Operational
• Tactical
• Strategic
Application
management
• Approaches:
• SDLC
• Feasibility study
• Analysis
• Design
• Testing
• Implementation
• Evaluation
• Maintenance.
Organizing for service
design
• Roles:
• Process owner
• Service design manager
• IT planner
• IT Designer/architect
• Service catalogue manager
• Service level manager
• Availability manager
• IT service continuity manager
• Capacity manager
• Security manager
• Supplier manager
Technology considerations
• Service design tools
• Enable hardware, software, environmental, process and
data design
• Benefit:
• Speeding up the design process
• Ensuring that standards and conventions are followed
• Offering prototyping, modeling and simulation facilities
• Enabling ‘What if?’ scenarios to be examined
• Enabling interfaces and dependencies to checked and correlated
• Validating designs before they are developed and implemented to
ensure that they satisfy and fulfill their intended requirements.
Technology considerations
• Service management tools
• Some points that organizations should consider when evaluating
Service Management tools include:
• Data structure, data handling and integration
• Integration of multi-vendor infrastructure components, and the need to
absorb new components in the future – these will place particular demands
on the data-handling and modeling capabilities of the tool
• Conformity to international open standards
• Flexibility in implementation, usage and data sharing
• Usability – the ease of use permitted by the user interface
• Support for monitoring service levels
• Distributed clients with a centralized shared database (e.g. client server)
• Conversion requirements for previously tracked data
• Data backup, control and security
• Support options provided by the tool vendor
• Scalability at increasing of capacity (the number of users, volume of data
and so on).
Implementing service
design
• Business impact analysis
• Service level requirements
• Risks to the services and processes
• Implementing service design
• What is the vision
• Where are we now
• Where do we want to be
• How do we get there
• How can we tell when we have got there
• How do we keep going
• Measurement of service design
Challenges, critical success factors and
risks
• Challenges
• The need to ensure alignment with current architectural directions, strategy and
policies
• The use of diverse and disparate technologies and applications
• Documentation and adherence to agreed practices and processes
• Unclear or changing requirements from the business
• A lack of awareness and knowledge of service and business targets and
requirements
• Certain facilities are not built into the design
• A resistance to planning, or a lack of planning leading to unplanned initiatives and
unplanned purchases
• Inefficient use of resources causing wasted spend and investment
• Good knowledge and appreciation of the business impacts and priorities is
imperative.
• Poor relationships, communication or lack of cooperation between the IT service
provider and the business may result in the design not achieving the business
requirements.
Challenges, critical success factors and
risks
• Challenges:
• Resistance to work within the agreed strategy.
• Use of, and therefore the constraints of, old technology and legacy systems.
• Required tools are too costly or too complex to implement or maintain with the
current staff skills.
• Lack of information, monitoring and measurements.
• Unreasonable targets and timescales previously agreed in the SLAs and
OLAs.
• Over-commitment of available resources with an associated inability to
deliver
(e.g. projects always late or over budget).
• Poor Supplier Management and/or poor supplier performance.
• Lack of focus on service availability.
• Lack of awareness and adherence to the operational aspects of security
policies and procedures.
• Ensuring normal daily operation or business as usual is considered as
part of
the design.
• Cost and budgetary constraints.
• Ascertaining the ROI and the realization of business benefit.
Challenges, critical success factors and
risks
• How to overcome challenges
• Understanding the business requirements and the business
priorities and ensuring that these are uppermost in mind
when designing the processes and the services.
• Communications will be vitally important both in explaining what is
happening and how individuals will be affected and in listening to
the requirements and needs of the individuals. It’s vitally important
to communicate with people about concerns that relate to their
daily job.
• Involve as many people as possible in the design. Setting up
focus groups or steering groups can be very effective in getting
the right solution as well as gaining wider support.
• Gaining commitment from senior management as well as from
all levels of staff.
Challenges, critical success factors and
risks
• Risks
• If any of the PFSs for Service Design are not met, then the Service Design or Service
Management process will not be successful
• If maturity levels of one process are low, it will be impossible to achieve full maturity in
other processes
• Business requirements are not clear to IT staff
• Business timescales are such that insufficient time is given for proper Service Design
• Insufficient testing, resulting in poor design and therefore poor implementation
• An incorrect balance is struck between innovation, risk and cost while seeking a
competitive edge, where desired by the business
• The fit between infrastructures, customers and partners is not sufficient to meet the overall
business requirements
• A coordinated interface is not provided between IT planners and business planners
• The policies and strategies, especially the Service Management strategy, are not available
from Service Strategy, or its content is not clearly understood
• There are insufficient resources and budget available for Service Design activities
• The risk of services developed in isolation using their ‘own’ assets and infrastructure
• Insufficient time given to the design phase, or insufficient training given to the staff tasked
with the design
• Insufficient engagement or commitment with the application’s functional development, leading to
insufficient attention to Service Design requirements.