BCIS 5520 IT Service Management. Service Design (Part 2)

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1 BCIS 5520 IT Service Management Service Design (Part 2) Class 7.01 Spring 2015 Dr. Becker Announcements: Exam #1 Class #8 (3/11; click here) EXAM #1: Foundations of ITSM based on ITIL v3, Jan von Bon (JVB) Chapters: 1-4; 8-10 Foundations in ITSM (ITIL v3 Foundations Course in a Book), Orand & Villarreal (O&V) Chapters: 1-5 Other Materials Class Handouts & Readings Multiple guess portion (200 pts) will be closed book Short Essay (100 pts) will be closed book Open-Ended Case portion (200 pts) will be open book 1

2 2014 Project Topics 1. Johnson, Chris, ITIL and Surveillance Camera Services at UNT 2. Kisner, Matthew, A Framework for Identifying and Selecting an ITSM Tool. 3. Perez, Christian, IT Service Management: Release Management and Agile Development 4. Underwood, Grant, Best Practices for Budgetary Financial Management of ITSM Projects Term Paper & Presentation Project (400 pts.) The subject of the paper should be relevant to the management of information assets and can be based on one of the topics covered in class, mentioned in your textbook, or any other topic relevant to IT Service Management. I. Introduction to topic. Title and statement of the topic (100 to 250 words). The topic statement should be in paragraph rather, rather than outline, form. Answer the question: Why should we care about your topic? Use outline form for rest of the paper when appropriate. II. Key Issues (KIs) for management of topic. Answer the question: To what things (i.e., nouns) must you pay attention in order to be successful at managing topic? You cannot have more than 10 or fewer than 5 KIs, preferably 6 to 8. NOTE: These MUST lead to the definition of CSFs in V. below III. Model/framework/theory/taxonomies. Answer the question: What concepts, paradigms, approaches, etc. are there to help us understand and/or organize the subject matter? IV. Primary content -- Cover the subject matter Provide management with the how to do it details. Ideally the content of section III and/or II provides you with a way to organize this section into several sub-headings. Case examples could go here too. Put longer cases, and supporting materials which cannot be easily cited in the References section into the Appendix. V. Critical success factors (CSFs) for successful management of this area. Answer the question: What things must be done right in order to be successful at managing this? Ideally this section links back to section II s KIs. Section V's CSFs should serve as your conclusions and summary section; but, if necessary, include a separate section before this one to deal with additional conclusions. You cannot have more than 10 or fewer than 5 CSFs, preferably 6 to 8. VI. References. [Not included in word counts] VII.Appendix. [Not included in word counts] Include PowerPoint Presentation Slides here. Copies of important references; website materials; and figures and tables not included in main body of report. Proposal (25 pts words) due: Feb 19th Paper (325 pts.; words) & Presentation (50 pts.; slides) due: April 30th 2

3 Class 7: Readings for Tonight Homework Class #7 (3/4; click here) Chapter readings: Foundations of ITSM based on ITIL v3, Jan von Bon (JVB) Chapter 10: Service Design: Functions & Processes Foundations in ITSM (ITIL v3 Foundations Course in a Book), Orand & Villarreal (O&V) Chapter 5: Service Design Functions & Processes Research Topics (3/4): #4A- ITSM Service Design Tools/Any one or more of the 7 Service Design Processes (SLM, SCM, etc.) ITIL ITSM Lifecycle: 5 Stages 1. Service Strategy 2. Service Design 3. Service Transition 4. Service Operation 5. Continual Service Improvement 3

4 Main Output of Service Design Service Level Package & Requirement (SLP & SLR) Major Inputs to Design Stage, whose Output is : Service Design Package (SDP) includes: Strategic Business Requirements Service Functional Requirements Service Level Requirements Process Requirements Service & Operational Management Requirements Service Design & Topology SDP input to the Service Transition stage Service Design: The Basic Processes Objective: the design of new or modified services for introduction into a productive environment. 5 Design Aspects: 1. Service Solution (functional requirements, resources & capacities; 2. Service Portfolio 3. Architecture (technological & management) 4. Processes 7 Processes 5. Measurement systems and metrics 4

5 5.1 Processes and Other Activities The 7 Processes are: 1. Service Catalog Management (SCM) 2. Service Level Management (SLM) 3. Capacity Management 4. Availability Management 5. IT Service Continuity Management (ITSC) 6. Information Security Management 7. Supplier Management 1. Service Catalog Management (SCM) Purpose: SCM provides a single source of consistent information on all of the agreed upon services and ensure that is widely available to those who are approved to access it. Goal: Ensure that a SC is accurately produced and maintained on all operational services and those being prepared to run operationally 5

6 SCM Key Points SCM Value for the Business Contains a customer facing view of all IT services in use, how they are intended to be used, the business processes they enable, and the level of quality of service the customer can expect. Difference between the SCM and Service Portfolio The Service Portfolio represents all active and inactive services in the various phases of the lifecycle; as such The Service Catalog is a subset of the Service Portfolio Many organizations integrate both as part of the Configuration Management System (CMS) Figure Service Portfolio 6

7 Service Catalog Components Business Service catalog Connects IT service supplied with relationships to the business units and the business processes Facilitates proactive and preemptive SLM processes. Technical Service catalog The IT view of the services that are delivered to the customer, along with relationships to the supporting and shared services, components, and configuration items (CI s) SCM: Activities, Methods, and Techniques Agree upon a document a Service Definition Agree upon contents of the Service Catalog and the Service Portfolio Produce and maintain the service catalog Identify dependencies between business units and their processes with IT services Interface with support teams, service providers, and configuration management on interfaces and dependencies 7

8 Interfaces: I/Os Inputs Business and IT Strategic plans Business Impact Analysis (BIA) Service portfolio Configuration Management System (CMS) Feedback for other processes Outputs Definitions of services Updates to the Service Portfolio Updates to the Service Catalog Suggested KPI s Number of services recorded and maintained with the service catalog, as a percentage of those being delivered and transformed in the live environment Number of difference between information from the service catalog and the live environment Percentage increase in the business service catalog and/or IT services catalog, compared with operational services Percentage of incidents at the service desk without appropriate service-related information 8

9 SCM CSF s Accurate service catalog Business users awareness of the services being provided and the location of the catalog IT staff awareness of the IT supporting the services. 2. Service Level Management (SLM) Purpose: Ensure that all operational services and their performance are measured and reported in a consistent and professional manner. Goal: Ensure that an agreed upon level of IT service is provided for all current IT services and that future services are delivered to agreed upon targets 9

10 SLM Objectives 1. Define, document, agree, monitor, measure, report, and review the level of IT services 2. Provide and improve the relationship and communication with the business and its customers 3. Ensure that IT and customers understand the expectations for service levels! Manage Expectations! 4. Ensure that specific and measurable targets are developed for all IT services 5. Monitor and improve customer satisfaction with the quality of services delivered 6. Ensure that proactive measures to improve service levels are delivered when cost-justified SLM Key Points Value for the Business Provides the business with the agreed upon service targets and the required management reporting & monitoring systems Difference between the SLAs and OLAs The Service Level Agreements (SLAs) is a written agreement between the service provider and the its customers defining service targets and responsibilities of each; The Operational Level Agreement (OLA) is an agreement between an IT service provider and another internal provider that assists with the service delivery 10

11 SLM Components Service Level Agreements (SLA) Service Level Requirements (SLR) Service Level Targets (SLT) Operational Level Agreements (OLA) Differences between OLA and SLA: 1. Service Level Agreement focuses on the service part of the agreement, like uptime of services and performance. On the other hand, Operational Level Agreement is an agreement in respect to maintenance and other services. 2. The Service Level Agreement is basically a contract between a service provider and a customer. OLA is an agreement between the internal support groups of an institution that supports SLA. 3. When comparing the target groups, the OLA has smaller target group than the SLA. 4. Unlike the OLA, the SLA connects the service providers to the customers. 5. The Operational Level Agreement is more technical than the Service Level Agreement. Read more: Difference Between OLA and SLA Difference Between OLA vs SLA SLM: Activities, Methods, and Techniques Design of SLA Frameworks Service-based SLAs Customer-based SLAs Multi-level SLAs Determining, negotiating, documenting and agreeing to SLRs Monitor and measure service performance Improve customer satisfaction Produce service & management reports Conduct service reviews Review and revise SLAs Develop contacts and relations (Service Desk) 11

12 SLM Activities & Processes (Fig.10.1) (courtesy OGC) SLM Activities & Processes SLM Workflow Activities Continued 12

13 Interfaces: I/Os Inputs Business information & requirements Service portfolio & service catalog Change information Configuration Management System (CMS) Outputs Service reports Service Improvement Plan (SIP) Service Quality Plan (SQP) Standard document templates SLA, SLR, and OLA Service review meeting minutes Suggested KPI s Percentage reduction in SLA targets missed Percentage increase in customer satisfaction Number or percentage of service targets met Reduction in costs of services provided Increase speed of performance delivery 13

14 SLM CSF s Overall quality of IT services Ability to deliver cost-effective services Ability to manage the interface with business and users Constant focus on business 3. Capacity Management (CMgt ) Purpose/Goal: Ensures cost-justifiable IT capacity exists for current and future agreed upon IT service needs of the business. 14

15 CMgt Objectives 1. Create and maintain an up-to-date capacity plan for current and future needs 2. Coordinate internal and external consulting on services in terms of capacity and performance 3. Manage performance and capacity services 4. Diagnose of performance and capacity incidents 5. Evaluate the impact of changes to the capacity plan 6. Take proactive measures to improve performance CMgt Key Points Value for the Business Balance costs against resources required and supply against demand. Justify expenditures. CMgt Sub-processes: Business Capacity Management Translates business needs into IT service and infrastructure requirements Service Capacity Management Focuses on delivery of existing services Component Capacity Management Focuses on individual technology components that support the services (CPUs, networks, printers, etc.; see Service Operations) 15

16 CMgt: Activities, Methods, and Techniques Reactive activities: Monitoring & measuring Proactive activities: Predicting future requirement and trends Supporting Activities: Review current capacity and performance Improve current service and component capacity Assess, agree and document requirements and capacity Plan new capacity requirements CMgt Activities & Processes (Fig (courtesy OGC) ) 16

17 Interfaces: I/Os Inputs Business information & requirements Service and IT information from strategic plan Capacity Management Info System (CMIS) Component performance and capacity information Financial information Workload information from operations Outputs Capacity Management Information System (CMIS) Capacity plan Service Performance reports Workload analysis reports Forecasts, & Threshold, alerts & events Suggested KPI s Percentage accuracy of forecasts of business needs Production of workload forecasts on time Increased ability to monitor performance Timely installation of new technology Reduction in use of old technology Reduction in incidents and problems related to inadequate capacity 17

18 CMgt CSF s Overall quality of IT services Ability to deliver cost-effective services Ability to manage the interface with business and users Constant focus on business 4. Availability Management (AMgt) Purpose/Goal: Ensures cost-justifiable IT availability exists for current and future agreed upon IT service needs of the business. Definition: The ability of a service, component, or configuration item (CI) to perform its agreed function when required. (e.g., up-time) 18

19 AMgt Objectives 1. Create and maintain an up-to-date availability plan for current and future needs 2. Coordinate internal and external consulting on services in terms of IT availability 3. Ensure that availability results meet or exceed defined requirements 4. Diagnose of performance and availabilityrelated incidents 5. Evaluate the impact of changes to the availability and capacity plans 6. Take proactive measures to improve availability AMgt Key Points Value for the Business Availability and reliability of IT services has a direct impact on customer satisfaction and company reputation. Availability management is vital! AMgt components: Availability ability to perform its function Reliability length of time Maintainability speed of repair Serviceability external service provider performance Scalability -- ease of increase or decrease in size 19

20 AMgt : Activities, Methods, and Techniques Reactive activities: Monitoring & measuring; Investigating incidents Proactive activities: Risk assessment and management Implement cost-justifiable countermeasures Plan and design for new and changed services Review all new and changed services; and Test all availability and resilience mechanisms AMgt Activities & Processes (Fig (courtesy OGC) ) 20

21 AMgt: Expanded Incident Lifecycle Incident stages: Detection; Diagnosis; Repair; Recovery; Restore Mean Time to Restore Service (MTRS) The time between failure and full restoration of a service. Other useful measure: Mean Time Between Failures (MTBF) Mean Time Between Service Incidents (MTBSI) Mean Time to Repair MTTR) Interfaces: I/Os Inputs Business information & requirements Service information from service portfolio and catalog Risk analysis, business impact analysis, and Vital Business functions studies Change calendars and release schedules Service targets Unavailability and failure information Outputs Availability Management Information System (AMIS) Availability plan Availability and recovery design criteria Updated risk register Availability mangaement test schedule Planned and preventive manintenance schedule Project service outage reports 21

22 Suggested KPI s Percentage reduction in unavailability of services and components Increase in reliability of services and components Percentage improvement in overall end-to-end availability of service Increase in customer satisfaction Reduction in costs of unavailability AMgt CSF s Availability and reliability of IT services Availability of IT infrastructure Satisfaction of business needs Increased customer satisfaction 22

23 5. IT Service Continuity Management (ITSCM) Purpose/Goal: Support the overall business continuity management process by ensuring that the required IT technical and service facilities (ICT), can be resumed within required and agreed upon time. ITSCM Objectives 1. Maintain an up-to-date set of continuity and recovery plans 2. Perform regular Business Impact Analysis 3. Provide expertise to all areas of the business on continuity and recovery-related issues 4. Ensure that the continuity and recovery mechanism are in place 5. Take proactive measures to improve availability of services 6. Negotiate agreements with IT service providers to support the continuity and recovery plan 23

24 ITSCM Key Points Value for the Business ITSM is vital! Intelligent risk management plan for the enterprise ITSCM components: Recall Westerman article on Risk Management Access Integrity Continuity Strategic ITSCM : Activities, Methods, and Techniques Initiation Requirements and strategy Business Impact Analysis Risk Estimation Risk Response Measures ITSCM recovery options Implementation Ongoing Operations 24

25 ITSCM Activities & Processes (Fig (courtesy OGC) ) Interfaces: I/Os Interfaces Incident and Problem Management system Availability management system Service level management system Inputs Business information & requirements IT information; Financial information BCM (Business Continuity Management) strategy & plans Change information CMS Testing schedules Outputs Revised ITSCM policy and strategy BIA exercises and reports Risk analysis and management reviews and reports Continuity plans Test scenarios; reports and reviews 25

26 Suggested KPI s Outcome of regular audits of ISCM plans Extent to which service recovery targets are agreed upon and documented in the SLA Test results of the ITSCM plan Regular review of the ITSCM plans Risk reduction vs. costs ITSCM CSF s Estimated time to restore operations Organizational awareness 26

27 6. IT Security Management (ITSM) Purpose/Goal: Align IT and business security and ensure that the Information security is managed effectively in all service activities 7. Supplier Management (SM) Purpose/Goal: Obtain value from suppliers that ensure that suppliers perform to the SLAs 27

28 Service Design: Summary Objective: the design of new or modified services for introduction into a productive environment. 5 Design Aspects: 1. Service Solution (functional requirements, resources & capacities; 2. Service Portfolio 3. Architecture (technological & management) 4. Process 7 Processes 5. Measurement systems and metrics 7 Processes of Service Design 1. Service Catalog Management (SCM) 2. Service Level Management (SLM) 3. Capacity Management (CMgt) 4. Availability Management (Amgt) 5. IT Service Continuity Management (ITSCMgt) 6. Information Security Management (ISMgt) 7. Supplier Management (SMgt) 28

29 THE END Class 7 Cloud Computing 2014 Key Trends 2015 Cloud Adoption & Risk Report Dynamic Reconfiguration Deployment (DRD) 29

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