Service Management ITIL Service Design
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1 Service Management ITIL Service Design Univ.-Prof. Dr.-Ing. Wolfgang Maass Chair in Economics Information and Service Systems (ISS) Saarland University, Saarbrücken, Germany WS 2011/2012 Thursdays, 8:00 10:00 a.m. Room HS 024, B4 1
2 General Agenda 1. Introduction 2. Service Strategy 3. New Service Development (NSD) 4. Service Quality 5. Supporting Facility 6. Forecasting Demand for Services 7. Managing Demand 8. Managing Capacity 9. Managing Queues 10. Capacity Planning and Queuing Models 11. Services and Information Systems 12. ITIL Service Design 13. IT Service Infrastructures 14. Summary and Outlook Slide 2
3 ITIL Service Lifecycle (ITIL V3) (OGC, 2011) Today Last lecture Service Design Design of new or changed services for introduction into live environment Guidance for designing and developing services Converting strategic objectives into service portfolios and service assets; or improve existing services Development of design capabilities for service management Slide 3
4 Service Composition Slide 4
5 ITIL Service Design Input Output Key processes in ITIL Service Design Key service design processes (OGC, 2011) Design of service solution 1 Design coordination (Providing and maintaining single point of coordination and control of all design activities) 2 Service catalogue management 3 Service level management 4 Availability management 5 Capacity management 6 IT service continuity management 7 Information security management 8 Supplier management Slide 5
6 Service Design 2. Service Catalogue Management Purpose Providing and maintaining a single source of consistent information on all operational services (service catalogue) and those being prepared to be run operationally Gaining common understanding of IT services of service provider between diverse stakeholders Contribution to definition of services and service packages and specification of interfaces and dependencies between service catalogue and service portfolio (OGC, 2011) Definition of services and service packages Types of services in service catalogue a) Customer-facing services support customers business (seen by customer) b) Supporting services support customer-facing services (not seen by customer); also called infrastructure or technical services SLA = Service Level Agreement between service provider and customer (assures level of service quality (warranty)) Service package of customer ii Slide 6
7 Service Design 2. Service Catalogue Management Structuring service catalogue Depends on audiences to be addressed views for diverse audiences Minimum: 2 different views (1) business/ customer, and (2) technical / supporting service catalogue view Further opportunity: 3 views, e.g., (1) wholesale, (2) retail, and (3) supporting service catalogue view Service catalogue example Customers (understand portfolio of service provider) Users (which services are available; how to place service requests) Used by Staff members (how supporting services and service provider assets support business activity) (OGC, 2011) Slide 7
8 Service Design 3. Service Level Management Purpose Service Level Management Agreeing on and documenting service level targets and (SLM) responsibilities within SLAs and Service Level Requirements 1 Designing SLA Frameworks (SLR) for every service and related activity 2 Determining, documenting and agreeing requirements for new Service level targets have to be appropriate and reflect services / Producing SLRs requirements of business 3 Negotiating, documenting and agreeing SLAs for operational services 1 Designing SLA Frameworks 4 Monitoring service performance Operational Level Agreement (OLA) = against SLA agreement between IT service provider and part 5 Producing service reports of same organization that supports delivery of 6 Conducting service reviews services, e.g., facility department (OLA targets instigating improvements within underpin those of SLA) overall service improvement Underpinning contracts = contracts with plan external partners/suppliers 7 Collating, measuring and Types of SLAs: improving customer satisfaction a) Service-based SLAs covering 1 service 8 Review and revise SLAs and b) Customer-based SLAs covering all services of OLAs, underpinning individual customer group agreements and service scope 9 Develop contracts and Multi-level SLAs: (1) corporate level with generic SLM issues; (2) customer relationships level with customer-/business-unit-specific SLM issues; (3) service level with service-specific SLM issues with regard to customer 10 Handling complaints and compliments (OGC, 2011) Slide 8
9 Service Design 3. Service Level Management 2 Determining, documenting and agreeing requirements for new services / Producing SLRs Starts during service strategy phase Service level requirement (SLR) = customer requirement for an aspect of IT service SLRs used to negotiate service level targets SLRs relate primarily to warranty of service, e.g., a) How available does the service need to be? b) How secure? c) How quickly must it be restored if it should fail? 3 Negotiating, documenting and agreeing SLAs for operational services Targets in SLAs originate from specified SLRs Only measurable targets, e.g., 99,5% availability of service (OGC, 2011) 4 Monitoring service performance against SLA 5 Producing service reports e.g., service level agreement monitoring (SLAM) charts Slide 9
10 Service Design 4. Availability Management Availability = ability of service to perform its agreed function when required Reliability = how long service can perform agreed function without interruption -- mean time between service incidents (MTBSI) and mean time between failures (MTBF) Purpose Ensuring that level of availability delivered in all IT services meets the agreed availability needs and service level targets in cost-effective and timely manner Maintainability = how quickly and effectively a service can be restored to normal working after failure (mean time to restore service (MTRS)) Serviceability = ability of third-party supplier to meet terms of its contract (OGC, 2011) Slide 10
11 Brainteaser 10 Minutes A 24 x 7 service has been running for a period of 5020 hours with two breaks, one of six hours and one of 14 hours. Calculate the availability, reliability (mean time between service incidents and mean time between failures) and maintainability of the service. Papers will be collected. Slide 11
12 Service Design 4. Availability Management Reactive activities, e.g., Investigating all service and component unavailability and instigating remedial action e.g., via expanded incident lifecycle Minimizing impact of incidents Mapping of total IT service downtime for any given incident against major stages of incident progress (lifecycle) Proactive activities, e.g., Planning and designing new or changed services e.g., component failure impact analysis (CFIA) Predict/evaluate impact on IT services arising from component failures M=alternative component available but needs manual intervention to be recovered A=alternative component available X=failure of component causes inoperative service blank= failure of component does not impact service (OGC, 2011) Slide 12
13 ITIL Service Design Key processes in ITIL Service Design 1 Design coordination 2 Service catalogue management 3 Service level management 4 Availability management 5 Capacity management (ensures that capacity of IT services / IT infrastructure meets agreed capacity- and performance-related requirements in costeffective and timely manner) 6 IT service continuity management (ensures that IT provider can always provide minimum of agreed service levels) 7 Information security management (ensures confidentiality, integrity, availability of organization assets, information, data etc.) 8 Supplier management (OGC, 2011) Slide 13
14 Service Design 8. Supplier Management Purpose Obtain value for money from suppliers to provide seamless quality of IT service to business Ensuring that all contracts and agreements with suppliers support needs of business Categorization of suppliers Strategic suppliers = significant partnering relationships; managed at senior management level e.g., worldwide network organization Tactical suppliers = significant commercial activity and business interaction; managed at middle management e.g., hardware maintenance organization Operational suppliers = operational products and services; managed at junior management e.g., internet hosting service provider Commodity suppliers = low-value products/services e.g., supplier of printer paper (OGC, 2011) Slide 14
15 Real Life Examples Procter & Gamble Started using ITIL in % to 8% cut on operating costs Help desk calls reduced by 10% Caterpillar Started using ITIL in 2000 Rate of achieving target response time for incident management on web-related services jumped from 60% to 90% Capital One Started using ITIL in % reduction in system crashes and softwaredistribution errors 92% reduction in business-critical incidents (Kaiser, 2007) Slide 15
16 Critique Assumption: Many IT enterprises are looking for a magic bullet to end their IT chaos - But: Success with ITIL is largely dependent on determining how best, and when, to apply the processes in the IT organization Assumption: Often claimed "ITIL compliance" gives false impression that ITIL is an IT standard - But: ITIL is a set of best practices; ISO is an international standard based on ITIL Assumption: Interactive and integrative nature of ITIL processes implies the entire framework has to be implemented in an all or nothing manner - But: Many organizations benefit from implementing only one or two ITIL processes such as change management or incident management Assumption: ITIL consists of a series of books that describe best practices in IT service areas an can be implemented out of the book - But: ITIL provides WHAT to do, not HOW to do it; it is not an instructional manual for IT leaders to improve IT services and operations (Khan, 2008) Slide 16
17 A Handful of IT Service Management Frameworks Control OBjectives for Information and related Technology (COBIT) Governance and control framework for IT management by ISACA and IT Governance Institute; current version: COBIT 4.1 (2007) Defines 34 generic processes to manage IT Publications: Core Content, IT Assurance Guide, Implementation Guide and Control Practices Relation to ITIL: COBIT is positioned at higher level Aligned and harmonized with other, more detailed, IT standards and good practices such as ITIL Slide 17
18 A Handful of IT Service Management Frameworks enhanced Telecom Operations Map (etom) Published by TeleManagement Forum Defines most widely used and accepted standard for business processes in telecommunications industry Relation to ITIL: etom seen as addition to ITIL Contrary to ITIL, etom offers data model for each detailed process because telecommunication companies often need to interchange data -- focus on delivery of transparent services throughout several companies Vendor frameworks based on ITIL e.g., MS Operations Framework (MOF) as basis of MS System Center Service Manager [1] e.g., HP ITSM services based on ITIL [2] Slide 18
19 Outlook 1. Introduction 2. Service Strategy 3. New Service Development (NSD) 4. Service Quality 5. Supporting Facility 6. Forecasting Demand for Services 7. Managing Demand 8. Managing Capacity 9. Managing Queues 10. Capacity Planning and Queuing Models 11. Services and Information Systems 12. ITIL Service Design 13. IT Service Infrastructures 14. Summary and Outlook Slide 19
20 Literature Kaiser, T. "ITIL: What is it? Why you should use it? How to use it?", PPT, Khan, I. A. "Myths and Realities about ITIL", PPT, Office of Government Commerce (OGC), ITIL Service Design, The Stationery Office (TSO), London, Spaulding, G. "What s New in ITIL v3", PPT, Web: [1] [2] Services?404m=rt404mb,newcclltow1en# Slide 20
21 Univ.-Prof. Dr.-Ing. Wolfgang Maass Chair in Information and Service Systems Saarland University, Germany Univ.-Prof. Dr.-Ing. Wolfgang Maass
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