Service Catalogue Real World Case Studies October 2010 Presenter: Blaine Bey, I.S.P., ITCP - President, CIPS BC. (BlaineBey@SierraSystems.
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1 Catalogue Real World Case Studies October 2010 Presenter: Blaine Bey, I.S.P., ITCP - President, CIPS BC (BlaineBey@SierraSystems.com)
2 Agenda - Organizational Situation Assessment - IT s and Catalogue - Catalogue Principles - Summary of Real-World Experiences - Request / Fulfillment / Recovery - Catalogue Project - Current Market Product Assessment (Additional material contained at end of slide deck)
3 Organizational Situation Assessment Canada - France - Hawaii Observatory, Mauna Kea, Hawaii (13,793 ft) Ensure you understand the big picture to keep things in context
4 Organizational Situation Assessment 1. To what extent does IT typically offer VIP treatment? When VIP treatment is commonly offered it makes it more difficult to manage service levels (since they are not scheduled or planned) 2. How complex are IT services? Complexity generally increases with multiple points of contact for internal and external service providers It can be difficult to define what should be bundled versus what should be atomic 3. How well are IT services defined in a manner understood by customers? Indicates how well we are focusing on the customer s view
5 Organizational Situation Assessment 4. How well understood are the ways by which customers can make requests for service? The more confusion there is, the more effort is expended on individual service requests 5. What are the different ways we accept service requests? The more ways involved, the more difficult it is to standardize Some areas of service require more information from customers than others 6. What is required to approve a service request? Approvals help control spending; too many approval levels make it difficult to achieve acceptable service levels
6 Organizational Situation Assessment 7. How busy is a typical IT resource in fulfilling most service requests? Common for internal IT service providers to be understaffed for the number of service requests they handle 8. To what extent do we currently break down our costs on a service by service basis? Direct costs are easier to break down, especially when provided by an external service provider Indirect costs are tougher to break down
7 IT s & Catalogue
8 IT s & Catalogue What is an IT? s are a means of delivering value to customers by facilitating outcomes customers want to achieve without ownership of specific costs and risks Hint: NOT sales or products Examples: Messaging s ( ) Workstation s (desktop / laptop) Business Applications IT Solutions Consulting
9 IT s & Catalogue IT Business Catalogue Definition IT Business Catalogue is an integration component defining all services provided to the Business by IT Written in business language and includes expected standard level of service Basis to negotiate Level Agreements (SLA) and internal IT Operational Level Agreements (OLA) Over arching component used in managing existing IT services and future improvements.
10 IT s & Catalogue IT Business Catalogue Why Have One? Communicates how IT can help customers do their jobs. Answering the questions, What does IT do?, and How well does IT do it? (reduce smoke and mirrors effect) Provides a vehicle to realistically set and meet business expectations Helps standardize service delivery and improve service quality through a comprehensive list of service offerings Informs business users consumption choices Lists back office services required to deliver requested IT services
11 IT s & Catalogue IT Business / Technical Catalogue context IT s Business Catalogue X-Ref Technical Catalogue Customers Providers
12 IT s & Catalogue Business Process #1 Business Process #2 Business Process #3 Business Catalogue v A B C D E F Technical Catalogue Support Hardware Software Applications Electronic Messaging Data
13 IT s & Catalogue Business #1 Documented IT s What do we do? How much do our services cost? Support Harcware Software Applications Technical Catalogue The internal view of IT services Used by IT resources Business Catalogue Business Process Process #2 Business Catalogue A B C D E F Technical Catalogue The customer view of IT services Used by customers Cross-references to the Technical Catalogue v Business Process #3 Electronic Data Messaging
14 IT s & Catalogue Business Catalogue Value Clear customer-facing view of IT services available Accurate Consistent Available to entire organization Centrally managed Defines business processes involved Ordering / Cancelling support Levels & quality of service customers can expect
15 Catalogue Principles
16 Catalogue Principles Strategy Outcome-based definition of services (i.e. what is valuable to the customer) Portfolio Management & Catalogue Management Design Define / Design / Develop new services (associated SLAs & OLAs involved) Transition Changes to Catalogue implemented through Change Management Operation Catalogue is a critical success factor within Request Fulfillment Continual Improvement Catalogue is one input for definition of what should be measured Are the targets identified in the Catalogue being met?
17 Summary of Real-World Experiences
18 Case Profile: Multiple Federal Government Departments Objectives: Streamline delivery of support services and improve client service Solution: Consolidation of Desks Integrated processes aligned with ITIL: IM, Catalogue, Request, PM, ChM, CM, RM, SLM Provide application modernization (migrate to Axios assyst) Implement portal / reporting solution Team Composition: Project Manager ITSM Business Process Engineer (ITIL V3 Expert) Senior and Intermediate Technical Architect Business Analyst, Tester, Trainer Technology: Axios assyst, Oracle Portal, Sharepoint, Crystal Reports, SQL Reporting
19 Case Profile: Provincial Government Objectives: Consolidate multiple service request methods; Recover costs Solution: Configuration Module Request / Configuration Management Systems Custom Provider Request / Fullfilment Broker Custom Recovery (Billing) Solution Accounts Receivable / General Ledger Team Composition: Project Manager ERP solution experts Senior Technical Architect Business Analysts, Developers, Testers, Change Management consultants Technology: ERP solution, XML Messaging Broker, Java, Oracle Discoverer
20 Case Profile: Private Sector Objectives: Set scope, approach, and governance of Catalogue project covering customers in seven countries (with Desks in each country) Solution: Catalogue Multiple Desks aligned with Request System Team Composition: Project Manager Others to be brought onto team as project progresses Technology: Jira (Incident Management) Catalogue / Request technology yet to be determined (organization is at early stage of Catalogue project)
21 Summary of Real-World Experiences Vital to shift to the customer s view of services Vital to clearly understand the value business wants to get from IT services Define IT services in terms the customer can understand (i.e. NOT technical) Defining what is a service can result in much debate Identification of services is step one. Need to automate provisioning Keep the Business Catalogue simple & don t publish anything you can t commit to
22 Summary of Real-World Experiences Focus is on services rather than on products Important to provide cost transparency to customers to identify value of IT services Clearly indicate in the Definition (in the Catalogue): What customers need to do When they need to do it How long it takes to get a service installed What information customers need to provide in the service request process
23 Summary of Real-World Experiences Vital to have buy-in from a high level of the organization (CEO if possible) to assure success Don t need to shoot for the ultimate maturity level (there is no value for the cost required to get there) Design bundled services (e.g. moves) and allow individual atomic services to be ordered as well Strive to have a cookie cutter approach for definition of IT services Defining IT services will require discussion with all IT resources over time. Not defining job descriptions
24 Summary of Real-World Experiences A Catalogue project is much like any other project and thus requires typical project management activities s in the Catalogue must be capable of being personalized to the role of the requester (eg visibility) Catalogue should allow the user to not just view the definition of a service but provision it Publishing a Business Catalogue not a one-time event important to have a Catalogue tool to support management of the Catalogue
25 Summary of Real-World Experiences Catalogue should be integrated with ITSM tool or Desk tool Reporting and KPIs measure s in the Catalogue (a level up from technical components under a ) Make the publication of the Business Catalogue a success for the business not just the project team definitions in Catalogue (Business & Technical) will help align service support as well as service performance measurement activities
26 Request / Fulfillment / Recovery
27 Request / Fulfillment / Recovery Business Catalogue Request Request Fulfillment Support Cost Recovery Forecast / Budgeting Technical Catalogue Performance Measurement
28 Catalogue Project
29 Catalogue Project Subset of Portfolio Management Project Planning Single phase Multiple phases
30 Catalogue Project Catalogue Project Single Phase Plan Catalogue Project Undertake Catalogue Project Roll Out Technical Catalogue Roll Out Business Catalogue Continuous Improvement
31 Catalogue Project Catalogue Project Single Phase Single phase undertaken when IT services clearly defined and understood by customers Limited as to geographical areas involved Limited number of external service providers Project duration dependent upon Number and complexity of services Number of business areas supported. Consider IT resources as the first set of customers Start with definition of services in Technical Catalogue Roll out Technical Catalogue Follow with definition and rollout of Business Catalogue
32 Catalogue Project Catalogue Project Multiple Phases Plan Catalogue Project Undertake Catalogue Project Phase Roll Out Catalogue / Extensions (Technical / Business) Project End Continuous Improvement Plan Next Phase
33 Catalogue Project Catalogue Project Multiple Phases Undertake multiple phases to reduce risk / create quick wins Scope of customers in each phase Consider IT resources as first set of customers Cover one or more business units in each phase Business / Technical Catalogue scope divided into phases Plan Next Phase Consider lessons learned in current phase Adjust the overall plan as appropriate
34 Catalogue Project definition considerations (single or multiple phase): Focus is on services rather than on product (i.e. service delivery not sales ) Description Is in business terms (not technical) Features and functionality (in terms of value to customer) Prerequisites & Request approach to follow Related services request lead times levels offered & hours of operations Costs (one time and ongoing) Cancellation policy request approval process Support process involved
35 Catalogue Project Continuous improvement considerations (single or multiple phase): Analysis of service levels achieved (reporting on SLAs) Workload assessment of IT resources (planned versus actual) Trend analysis of future increase / decrease of service usage and required capacity for each service Develop service improvement plan
36 Catalogue Project Organizational Change Management Appropriate resources in the organization consulted before changes undertaken Communications: Are well thought out Frequent Consistent Have clear messaging Openness to constructive input (for communication improvement)
37 Current Market Product Assessment
38 Full Life-Cycle: Request through to Fulfillment Business User IT Business Manager IT Manager Business User IT Operations
39 Self- and Catalogue
40 Designer
41 Workflow Engine
42 Current Market Catalogue Product Assessment Pink Verify for Catalogue Mgt, Request Fulfillment and 11 or more ITIL Processes Axios assyst v9 BMC ITSM Suite 7.0 CA Desk Manager R12 HP Manager 7.0 Landesk Desk v7.3 -Now.com Forrester Market Overview - ITSM Support Tools Report Axios assyst v9 addresses all SC functionality Landesk does not have a SaaS Offering BMC and -Now do not have workflow engines HP workflow engine is a separate product (not SM7) CA Catalogue is a separate product (not R12) -Now does not provide on-premise solution FrontRange does not have Cat.Builder and Saas Cat. Functionality Self- Request Mgt Separate Workflow Engine Process Automation Catalogue and Builder Self- Portal SaaS Offering
43 Current Market Catalogue Product Assessment Good sources for additional information Forrester Market Overview - IT Management Support Tools: Good detailed functionality analysis PinkVerify: Good information. Information does not always reflect the latest version of the products. Includes smaller companies with limited number of proven implementations. Gartner: Contact Gartner analyst and schedule meeting to go over an assessment of these products. Gartner Desk Magic Quadrant: Too high level for functionality and ease of implementation assessment. Good for company and market assessment Butler Group: Provide vendor-specific company and product reviews. Information can be out dated. Bring the Vendors in to provide you with demos and project references
44 Content contributed by Sierra Ottawa: John Deland (President itsmf Canada), Michel Tourigny, Steve Worth Sierra Victoria: Paulette Barrette, Dave Barnes, Carol Nuernberger Various customers: Catalogue project experiences Management Consulting Project Implementation Managed s
45 Additional Material
46 Request / Fulfillment / Recovery Details Catalogue involvement in the process Technical Catalogue utilized by IT service providers Internal IT resources External service providers Business Catalogue utilized by customers Is Web-deployed requests created to represent services ordered from the catalogue Downstream processes include the fulfillment of service requests and recovery of costs Remember that IT resources are also customers of IT services
47 Request / Fulfillment / Recovery Details Request / Fulfillment Business Catalogue X-ref Review s Customers Technical Catalogue Request Requests / Delivered s Providers (Internal / External) Request (Ordering) Requests (Orders) Request Request Management Approved Requests Request Approval Review (if required) Installed s / Costs Operational Management Configuration Management System (CMS) Providers (Internal)
48 Request / Fulfillment / Recovery Details Request / Fulfillment Customer selects IT services from the Business Catalogue and creates a Request requests are approved by operational management requests may need review by internal service providers before proceeding (some costs may be estimated at this point which would impact the order of the approvals) Approved service requests are passed to internal / external service providers for request fulfillment s are installed and uniquely identified in CMS Actual costs may be included (e.g. installation costs) Uniquely identify each installed service
49 Request / Fulfillment / Recovery Details Support Business Catalogue Review Support Requirements Customers Request Support Request Support Technical Catalogue Support Request s / Level Info. Communication (as required) Support Requests Support Requests Support Requests Providers (Internal) Installed s / Updates Providers (External) Support Requests Desk Support Requests Support Management Installed Info. Configuration Management System (CMS)
50 Request / Fulfillment / Recovery Details Support Customers request support based upon the service support requirements identified in the Business Catalogue providers (internal or external) provide support Warranty provided for defective products desk communicates with the customer as required
51 Request / Fulfillment / Recovery Details Cost Recovery Business Catalogue Costs Configuration Management System (CMS) Costs Request Management - Monthly Costs - Annual Costs - One-time Costs Cost Recovery Installed s / Costs Journal Vouchers (Expense) Financial System (General Ledger) Costs Operational Management Costs / Payments Financial System (Accounts Receivable) Invoices Invoices / Payments
52 Request / Fulfillment / Recovery Details Cost Recovery Costs for each installed service are determined One-time (installation costs / cancellation fees) Recurring (Monthly / Annual) Consumption based Costs are expensed in the General Ledger or may optionally be invoiced to customers in Accounts Receivable Operational management can review their IT service costs
53 Request / Fulfillment / Recovery Details Forecast / Budgeting Business Catalogue Info. Operational Management Requests (New / Cancellation) Request / Fulfillment Info. Technical Catalogue Incl. cancellation prerequisites Installed s / Forecast s Budget / Forecast Costs Financial System (General Ledger) Installed s Configuration Management System (CMS)
54 Request / Fulfillment / Recovery Details Forecast / Budgeting Operational management review the installed services s installed under their lines of business Cost of services A forecast can be provided for the services estimated as being required in an upcoming year A review of the budget in comparison to actual may be done requests may be created To request additional services To request cancellation of services
55 Request / Fulfillment / Recovery Details Performance Measurement Requests (Orders) Configuration Management System (CMS) Support Requests Outstanding / Fulfilled Requests Installed s Outstanding / Completed Support Requests Business Catalogue Technical Catalogue Info. Info. Performance Measurement Performance Info. IT Management
56 Request / Fulfillment / Recovery Details Performance Measurement Performed by IT management KPIs should be: Meaningful to organization Simple to measure Responsive to change Financial view Historical view of costs Non-financial view Transactional processing time Issue / error rate (involving service requests and service fulfillment)
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