Tutorial: Service Portfolio design for NGIs Terminology, concepts, practical guidance

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1 Tutorial: Terminology, concepts, practical guidance EGI Technical Forum 2012, Prague (Czech Republic) September 20, 2012 Owen Appleton Dr. Thomas Schaaf EMERGENCE TECH LTD. The gslm project is supported and funded by the Seventh Framework Programme of the European Commission ( ) Coordination and Support Action

2 Goals of this tutorial This tutorial shall provide a general introduction to the topics of service management, service portfolio management and service design explain the key ideas behind each of these disciplines give an overview and insights to the related international standard ISO/IEC 20000, and the ITIL framework provide some practical guidance and examples

3 Agenda Motivation: "Services"? Service and Value Service Portfolio and Service Catalogue Differentiated offerings: Core Service, Enabling Services and Enhanced Services Services, Service Components and Configuration Items Layers and perspectives Practical Guidance: Frameworks, templates and examples Summary

4 Motivation: "Services"? Accommodation Concierge Escalators Elevators Restaurant In-room dining Front desk Housekeeping Laundry Free TV Pay TV Minibar Telephone Wired Internet Wireless Internet Pool Fitness Congress rooms Limousine Hotel website Safety facilities Room lights Room heating Room air conditioning Room furniture Bathroom facilities Room decoration Cleaning Example: Hotel Car park Illuminated hotel sign Room reservation system Invoice system Music in the lobby Music in the elevator Room locks / key card readers "Do not disturb" sign Coat hook in room

5 Motivation: "Services"? Accommodation Concierge Escalators Elevators Restaurant In-room dining Front desk Housekeeping Laundry Free TV Pay TV Minibar Telephone Wired Internet Wireless Internet Pool Fitness Congress rooms Limousine Hotel website Safety facilities Room lights Room heating Room air conditioning Room furniture Bathroom facilities Room decoration Cleaning Example: Hotel Car park Illuminated hotel sign Room reservation system Invoice system Music in the lobby Music in the elevator Room locks / key card readers "Do not disturb" sign Coat hook in room

6 Motivation: "Services"? Stay & sleep Concierge Escalators Elevators Eat & drink In-room dining Front desk Housekeeping Laundry Free TV Pay TV Minibar Telephone Wired Internet Wireless Internet Pool Fitness Hold a conference Limousine Hotel website Safety facilities Room lights Room heating Room air conditioning Room furniture Bathroom facilities Room decoration Cleaning Example: Hotel Car park Illuminated hotel sign Room reservation system Invoice system Music in the lobby Music in the elevator Room locks / key card readers "Do not disturb" sign Coat hook in room

7 Analogies Service Provider Customer Customer's "business" Organizing the EGI Technical Forum Hotel EGI.eu (Core) Services provided: Conference rooms and facilities Conference catering

8 Analogies Service Provider Customer Customer's "business" Attending the EGI Technical Forum and co-located meetings Hotel Hotel guest (Core) Service provided: Accommodation

9 Service and Value Service can be defined as a means of delivering value to customers by supporting them in achieving their goals ( without the customer being responsible for the specific costs and risks associated with the service.) Definition according to [ITIL, 2011] What is value from a customer/business perspective? Utility Warranty Value Why would a customer be interested in the service? How can the provider guarantee to meet the agreed quality?

10 IT Services: Internal IT department Service Provider Customer Customer's business Internal IT department Any enterprise Manufacturing of products or delivery of services to end customers (Core) Services provided: Any IT- / technology-enabled services required to support enterprise business processes

11 IT Services: External IT provider Service Provider Customer Customer's business External IT provider Any enterprise Manufacturing of products or delivery of services to end customers (Core) Services provided: Any IT- / technology-enabled services required to support enterprise business processes

12 Generic model: Applicable to NGIs? Service Provider Customer Customer's business Doing research in their area of expertise to produce knowledge for the general public (or funding bodies) NGI VO (Core) Service provided: Computation (access to computing resources)

13 What is a Service Portfolio? Service Portfolio: Definition according to ITIL The complete set of Services that are managed by a Service Provider. The Service Portfolio is used to manage the entire Lifecycle of all Services, and includes three Categories: Service Pipeline (proposed or in Development); Service Catalogue (Live or available for Deployment); and Retired Services. Service Portfolio Management: Definition according to ITIL The Process responsible for managing the Service Portfolio. Service Portfolio Management considers Services in terms of the business value that they provide.

14 What is a Service Catalogue? Service Catalogue: Definition according to ITIL A database or structured Document with information about all Live IT Services, including those available for Deployment. The Service Catalogue is the only part of the Service Portfolio published to Customers, and is used to support the sale and delivery of IT Services. The Service Catalogue includes information about deliverables, prices, contact points, ordering and request Processes.

15 Service Portfolio Service Catalogue

16 Differentiated offerings Enabling Service Components: Things that the service provider must do to deliver a service experience / utility / warranty that the customer would at minimum expect Enhancing Service Components: Things that the service provider would do in addition to the core service to deliver additional value to the customer and further enhance utility / warranty

17 Example: Core Services Accommodation Concierge Escalators Elevators Restaurant In-room dining Front desk Housekeeping Laundry Free TV Pay TV Minibar Telephone Wired Internet Wireless Internet Pool Fitness Congress rooms Limousine Hotel website Safety facilities Room lights Room heating Room air conditioning Room furniture Bathroom facilities Room decoration Cleaning Example: Hotel Car park Illuminated hotel sign Room reservation system Invoice system Music in the lobby Music in the elevator Room locks / key card readers "Do not disturb" sign Coat hook in room

18 Example: Enabling Service Components Accommodation Concierge Escalators Elevators Restaurant In-room dining Front desk Housekeeping Laundry Free TV Pay TV Minibar Telephone Wired Internet Wireless Internet Pool Fitness Congress rooms Limousine Hotel website Safety facilities Room lights Room heating Room air conditioning Room furniture Bathroom facilities Room decoration Cleaning Example: Hotel Car park Illuminated hotel sign Room reservation system Invoice system Music in the lobby Music in the elevator Room locks / key card readers "Do not disturb" sign Coat hook in room

19 Example: Enhancing Service Components Accommodation Concierge Escalators Elevators Restaurant In-room dining Front desk Housekeeping Laundry Free TV Pay TV Minibar Telephone Wired Internet Wireless Internet Pool Fitness Congress rooms Limousine Hotel website Safety facilities Room lights Room heating Room air conditioning Room furniture Bathroom facilities Room decoration Cleaning Example: Hotel Car park Illuminated hotel sign Room reservation system Invoice system Music in the lobby Music in the elevator Room locks / key card readers "Do not disturb" sign Coat hook in room

20 Some more terminology Core Service Definition according to ITIL A Service that delivers basic Outcomes desired by one or more Customers. Supporting Service Definition according to ITIL A Service that enables or enhances a core service. For example, a directory service or a backup service. Service Component Definition according to ISO/IEC Single unit of a service that when combined with other units will deliver a complete service

21 Some terminology Configuration Item (CI) Definition according to ITIL Any element / component that needs to be controlled in order to deliver a service. Information about each CI is recorded in a Configuration Record within a CMDB and is maintained throughout is lifecycle. CIs are under the control of Change Management. Configuration Record Definition according to ITIL A record containing the details of a Configuration Item. Each Configuration Record documents the Lifecycle of a single CI. Configuration Records are stored in a Configuration Management Database (CMDB)

22 Typical layers / perspectives Service e.g. , Provision of standard desktop computers, Access to computational resources Service Components Hardware, networks, applications, manuals/documentation, supporting services (directory services, backup, ) Configuration Items (CIs) Hardware components, computing nodes, storage systems, network components, software (packages), libraries, licenses, configuration files

23 Typical layers / perspectives Service Portfolio, Service Catalogue (for customers) Internal / technical service component specifications Configuration Management Databases (CMDBs)

24 Typical layers / perspectives (Service) Strategy Service Portfolio, Service Catalogue (Service) Design Internal / technical service component specifications (Service) Transition (Service) Operation Configuration Management Databases (CMDBs)

25 Typical layers / perspectives (Service) Strategy (Service) Design (Service) Transition (Service) Operation The customer's perspective Understanding the needs Understanding value Linking the customer's perspective to the service provider's capabilities and resources Specifying technology architectures Developing and operating the technology and infrastructure

26 Are you doing (Service) Strategy? 7 (Service) Design?? (Service) Transition? (Service) Operation?

27 Overview of the Core Books Service Strategy Financial Management Service Portfolio Mgmt. Demand Mgmt. Service Design Service Catalogue Mgmt. Service Level Mgmt. Capacity Mgmt. Availability Mgmt. Continuity Mgmt. Service Transition Change Mgmt. Service Asset and Configuration Mgmt. Release and Deployment Mgmt. Service Validation and Testing Service Operation Event Mgmt. Incident Mgmt. Request Fulfillment Problem Mgmt. Access Mgmt. Continual Service Improvement The 7-Step Improvement Process Service Reporting Service Measurement Security Mgmt. Evaluation Supplier Mgmt. Knowledge Mgmt.

28 What is (IT) Service Management? Service Management (1): Definition according to ISO/IEC Set of capabilities and processes to direct and control the service provider's activities and resources for the design, transition, delivery and improvement of services to fulfill the service requirements Service Management (2): Definition according to ITIL Service management is a set of specialized organizational capabilities for providing value to customers in the form of services. The capabilities take the form of functions and processes for managing services over a lifecycle, with specializations in strategy, design, transition, operation, and continual improvement. The capabilities represent a service organization's capacity, competency, and confidence for action. The act of transforming resources into valuable services is at the core of service management.

29 What is (IT) Service Management? Service management is: Organizational capabilities Structured processes needed to provide a good service Understanding the value of the services provided Committing to delivering value to customers Doing everything needed to meet (agreed) requirements Involving people, creating awareness, clarifying responsibilities, defining interfaces Service management is not (only): Buying a new tool Marketing

30 ITIL and ISO/IEC ISO/IEC IT Infrastructure Library Number of books with "Good Practice" in IT Service Management Slogan: "the key to managing IT services" Descriptions of key principles, concepts and processes in ITSM ISO/IEC International standard for managing and delivering IT services Defines the minimum requirements on ITSM Most popular and widespread framework Not a "real" standard, but often related to as "de-facto standard" 5 books edited and released by the British OGC Developed by a joint committee of ISO and IEC Based on ITIL Auditable, certifiable

31 ITIL (good practice) vs. ISO/IEC (standard) 24 pages total (entire standard) ½ page per ITSM process about 1,500 pages total (entire framework) pages per management process

32 (IT) Service Management: 5 Key Facts 1. (IT)SM means: Alignment of IT service operations to the customers' needs. 2. (IT)SM means: A process approach in delivering and supporting IT services. 3. (IT)SM supports a consistent terminology, avoiding bad communication and lack of understanding. 4. (IT)SM requires the provider to understand the requirements of his customers. 5. There are various frameworks and standards providing guidance around (IT)SM.

33 The 5 most common myths around (IT)SM 1. (IT)SM is about buying or developing fancy tools (IT)SM means: Everything changes (IT)SM reduces costs (IT)SM is only about having some SLAs and dealing with incidents (IT)SM means: Customers and users are happy. 7

34 The one question: Do we need all this? Some people might think: "NGIs are not service providers." "Scientists are not customers." "Researchers do not need guarantees." "And anyway: Guarantees are worth nothing, if an earthquake, a nuclear disaster and a meteor strike occur at the same time!"

35 The one question: Do we need all this? Some people might think: "NGIs are not service providers." "Scientists are not customers." "Researchers do not need guarantees." "And anyway: Guarantees are worth nothing, if an earthquake, a nuclear disaster and a meteor strike occur at the same time!" Think again! Are you providing something to someone? Are you doing more than just putting something in a box and pushing it away? Why would that "something" not be regarded as a service? Why would you not regard that "someone" as your customer?

36 The one question: Do we need all this? Some people might think: "NGIs are not service providers." "Scientists are not customers." "Researchers do not need guarantees." "And anyway: Guarantees are worth nothing, if an earthquake, a nuclear disaster and a meteor strike occur at the same time!" Think again! Do your customers (users, VOs, scientists, researchers) have ANY expectations? At least the expectation that you do something for them an care of their needs? Are some of their expectations important enough for they would be disappointed, if these expectations are not met (repeatedly)? Why should your customer then not be interested in some kind of guarantee, promise or commitment?

37 The one question: Do we need all this? Some people might think: "NGIs are not service providers." "Scientists are not customers." "Researchers do not need guarantees." "And anyway: Guarantees are worth nothing, if an earthquake, a nuclear disaster and a meteor strike occur at the same time!" We agree! Still, a guarantee can be regarded as a clear commitment instead of just best effort. Customers will appreciate this.

38 Practical guidance Back to the Service Portfolio: So far, we have seen: What is a service? (Value!) What are service components and configuration items? (Terminology) What is a service portfolio, and why is it important? What is Service Management, and why is it important? Now: Some more practical guidance for designing your service portfolio: 1. Steps to be taken (closed loop) 2. Business Case template 3. Service Description / Specification template

39 1. SPM Steps to be taken (closed loop) Service Portfolio Management Business Cases U/W models Strategic goals Assets Define Analyse Approve Current offerings Business Case Value Prioritization Description in the Service Portfolio Output New offerings (service ideas) Service Portfolio Charter Communication Resource allocation Inputs for Service Design

40 2. Business Case template Business Case: Definition according to ITIL A Business Case is a conceptual tool to support decision making. It is used to justify a significant item of expenditure. General good practices: Create a business case for every service Existing services (already in your portfolio) New services (to be included in your portfolio) Keep it simple When defining assumptions, identifying risks and calculating costs: Consider different scenarios / situations (including: best case, worst case) The business case for a service shall help you to understand the value proposition of this service

41 2. Business Case template General structure of a Business Case (for a service): Title of the service and Business Case Introduction and goals Baseline Description Financial impact Assumptions Risks Constraints

42 2. Business Case template General structure of a Business Case (for a service): Title of the service and Business Case Introduction and goals Baseline Description Financial impact Assumptions Risks Constraints

43 2. Business Case template General structure of a Business Case (for a service): Title of the service and Business Case Introduction and goals Baseline Snapshot of the current situation Make use of key performance indicators (KPIs) and metrics, if possible Description Financial impact Assumptions Risks Constraints

44 2. Business Case template General structure of a Business Case (for a service): Description Financial impact Total cost of ownership - Direct and indirect costs for the service - Variable and fixed costs - Cost types and accounts - Apportioning of shared costs to the service - Costs through all service lifecycle phases (including design, development, operation and removal from operation) Income - Charging - Funding Assumptions

45 2. Business Case template General structure of a Business Case (for a service): Financial impact Assumptions Risks Identification of demand and demand patterns Anticipation of future demand Warranty requirements Projection of different cost components into the future (in particular technology, energy, personnel) Identification of any trends (e.g. usage, workload)

46 2. Business Case template General structure of a Business Case (for a service): Assumptions Risks Identify: - Assets - Vulnerabilities - Threats Estimate: - Probability / likelihood of risks - Impact of risks Analyze: Significance / risk exposure Treat: Avoid, reduce, transfer or accept Constraints

47 2. Business Case template General structure of a Business Case (for a service): Risks Constraints Legal requirements / constraints Contractual requirements / constraints Policies and other forms of compliance issues Monetary requirements / constraints People / staffing / competence requirements / constraints Any other resource constraints

48 3. Service Description / Specification template General structure of Service specification (entry in the Service Portfolio): Unique name and identifier of the service Status of the service Type of the service Service owner Service audience (target groups, customers) Contact information Service descriptions Valid service requests associated with the service Offerings and packages Service costs Dependencies References to other documents Glossary Document control & review

49 3. Service Description / Specification template General structure of Service specification (entry in the Service Portfolio): Unique name and identifier of the service Status of the service Type of the service Service owner Service audience (target groups, customers) Contact information Service descriptions Valid service requests associated with the service Offerings and packages Service costs Dependencies References to other documents Glossary Document control & review

50 3. Service Description / Specification template General structure of Service specification (entry in the Service Portfolio): Unique name and identifier of the service Status of the service Describe the current status of the service following a unified state model applied to all services Typical states: - Planned - In development - Early Life Support (Pilot) - Operational - Archived Type of the service

51 3. Service Description / Specification template General structure of Service specification (entry in the Service Portfolio): Status of the service Type of the service Typical types of services: - Network / connectivity service - Application service - Computational service - Storage service - Desktop service - Consulting Service owner

52 3. Service Description / Specification template General structure of Service specification (entry in the Service Portfolio): Type of the service Service owner Assign the service owner role to a dedicated person with sufficient knowledge and authority in the service provider organization Main responsibilities of the service owner: - Maintaining and updating the service description / specification - Represent the customer's view on the service towards the service provider - Represent the provider's view on the service towards the customer - Review and monitor the service - Identify changing demand patterns w.r.t. the service - Identify opportunities for improving the service Service audience (target groups, customers)

53 3. Service Description / Specification template General structure of Service specification (entry in the Service Portfolio): Contact information Service descriptions Internal service description - May include technical information for maintenance and support staff - May refer to major problems / known errors related to the service (link to the known error database, KEDB) Service description for customers - To be included in the service catalogue - Ensure the service catalogue is synchronized with this part of the service portfolio Valid service requests associated with the service

54 3. Service Description / Specification template General structure of Service specification (entry in the Service Portfolio): Service descriptions Valid service requests associated with the service Specify valid (standard / routine) service requests for this service Service requests may be triggered directly by users, customers or provider staff Typical service request types: - Request for information / support (reporting an incident is NOT a service request!) - Request for access (including password reset, e.g.) - Request for the delivery of standard service component or a standard change to the service (interface to the Change Management process) Offerings and packages

55 3. Service Description / Specification template General structure of Service specification (entry in the Service Portfolio):... Valid service requests associated with the service Offerings and packages Enabling service packages - Define enabling service components - Identify dependencies - Derive different core service options / variants, if needed Enhancing service packages Service costs - Define enhancing service components - Identify dependencies and mutual exclusions - Derive different additional enhancing service packages

56 3. Service Description / Specification template General structure of Service specification (entry in the Service Portfolio): Service costs Dependencies Identify major dependencies to other (core) services Identify major dependencies to supporting service components References to other documents

57 Summary Setting up a Service Portfolio is not too challenging. Become aware of your services and service components. see "Hotel" example Create the business cases. see Template in this presentation Specify the services in a structured way. see Template in this presentation Your Service Portfolio will be a useful basis and starting point for doing better Service Management. Finally: Some concluding remarks from Owen Appleton.

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