ITIL v3 - IT Infrastructure meets IT Service

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1 ITIL v3 - IT Infrastructure meets IT Service David Cannon ITSM Practice Principal HP 2006 itsmf USA. All rights reserved.

2 Agenda Defining Service and Value from v2 to v3 Service Operation in ITIL v3 - Principles - Processes - Functions

3 Operational Challenges 2006 itsmf USA. All rights reserved.

4 Operational Challenges Design (and budget) focuses on functionality - Manageability is secondary - Lack of involvement in Design and Development of services The customer is always right - Promises are made without understanding the operational impact

5 Managing Operations Today Technical Specialization is critical It is also a major challenge: - Resulting silos - Monitoring is local - Metrics are limited - Teams can demonstrate great performance, but little idea of how they contribute to value

6 Technology Evolution Virtualization - Evolution of technical skills - Emphasis shifts from technology to workload Consolidation - Economies of scale - Growing centralization - Shift in Control

7 Defining IT Services From v2 to v itsmf USA. All rights reserved.

8 What is an IT Service (v2)? A set of related functions provided by IT systems in support of one or more business areas This service can be made up of hardware, software and communication facilities, but is perceived by the business customers as a self-contained, coherent entity

9 Service Components

10 As Seen by the Customer

11 Process Orientated Working Configuration Management Change Management Incident & Problem Management

12 The Problem with Processes Processes help to organize work better They are aligned to activity and output, not necessarily to value You have to know what you want to achieve, or else assume that the customer does Processes are not strategic Bottom line: Managing IT needs more than just a set of processes, people and tools

13 ITIL v3 Creating a way to integrate IT Processes, People and Tools with the Business Strategy and Outcomes Seeing IT as a Strategic Business Unit

14 Definition of a Service (v3) 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

15 The ITSM Lifecycle

16 The ITIL v3 Books

17 Focus on Value and the Supply Chain 2006 itsmf USA. All rights reserved.

18 Using Services to Achieve Business Outcomes Source: Majid Iqbal

19 What is Value?

20 What is Value? Value is in the eye of the beholder Value is variable Value has to be negotiated Value changes over time and context Value can be managed Value is not always financial

21 What is Value? Value is in the eye of the customer Value is variable Value has to be negotiated Value changes over time and context Value can be managed Value is not always financial

22 Value in Supply Chains Value Realized Money Spent R&D Engineer Manufacture Market and Sell Value Added

23 Value in Supply Chains Lessons Learned 1. If value is not realized, value added is equal to money spent 2. Value Realized must be greater than money spent 3. Value added internally is not value until it is realized

24 What does this mean for IT? If IT wants to demonstrate value it has to link its services to where value is realized, not where value is added If IT can not do this it will always be viewed as money spent not value added

25 IT Value an Example Outsourcer 1 Other Suppliers Vendor A Commodities Money Spent Enterprise IT Dept A Dept B Dept C Dept D Value Added? Money Spent BU1 IT BU2 IT Value Added Business Unit 1 Business Unit 2

26 Supporting Business Outcomes Product Manager Relationship Manager Productive capacity Business outcomes Crown Copyright.

27 Service Operation in ITIL v itsmf USA. All rights reserved.

28 Context - Monitor Control Loop Norm Control Compare Monitor Input Activity Output

29 Complex Monitor Control Loops Norm Control Compare Monitor Norm Norm Norm Control Compare Control Compare Control Compare Monitor Monitor Monitor Input Activity Output Input Activity Output Input Activity Output

30 Context - The ITSM Lifecycle IT Managers, Vendor Account Execs, IT Execs Service Strategy Portfolio, Standards, Architectures Input Business Executives, Business Unit Managers, Customers Control Activity Norm Compare Monitor OutputInput Service Design Tech Architectures, Performance Stds Control Activity Norm Compare Monitor Service Transition OutputInput Activity Technical Experts, Vendor Support, IT Operational Staff 1 2 Control 3 Norm Compare Monitor Continual Service Improvement Output Users

31 SO Principles 2006 itsmf USA. All rights reserved.

32 Achieving Balance Internal and External Focus Stability and Responsiveness Quality and Cost Reactive and Proactive

33 Obtaining an Optimal Balance Service Range of Optimal Balance Quality of Service (Performance, Availability, Recovery)

34 SO Teams and other Lifecycle Stages Service Operation is a Lifecycle phase not a department People working in SO will also work in other phases Management of these people tends to be operational

35 Service Operation Processes 2006 itsmf USA. All rights reserved.

36 Service Operation Processes & Functions User Self Help Request or Incident? Request Fulfillment Incident Management Access Management Problem Management User Service Desk Event Management Common Service Operation Activities Services Technical Management IT Operations Management Application Management

37 Service Operation Processes Event Management Incident Management Incident Management Request Fulfillment Self Help

38 Self Help Web based front end menu driven shopping cart experience Significant opportunity to: Improve responsiveness Reduce costs Extend hours of service Reduce demand on IT staff Improve quality Incident Management Request Fulfillment Change Management Deployment Access Management CMS

39 Event Management 1 Event Event Notification Generated Significance? Informational Warning Exception

40 Event Management 2 Informational Warning Exception Informational Warning Exception

41 Event Management 2 Informational Warning Exception Event Logged Auto Response Alert Incident/ Problem/ Change? Human Intervention Incident Mgmt Problem Mgmt Change Mgmt

42 Problem Management Problem Control Error Control Problem Control Problem Management Known Error Known Error Known Error

43 Access Management Execution of Availability and Security Management 6 major areas: - Requesting Access - Verification - Providing Rights - Monitoring Identity Status - Logging and Tracking Access - Removing or Restricting Rights

44 Service Operation Functions 2006 itsmf USA. All rights reserved.

45 Service Operation Functions Service Desk IT Operations Management Technical Management Application Management Operations Control Facilities Management

46 Common SO Activities Mainframe Management Server Management Network Management Storage and Archive Database Administration Directory Services Management Desktop Management Internet / Web Management Etc.

47 The Application Management Lifecycle Requirements Optimize Design Operate Build Deploy

48 The Application Management Lifecycle Requirements Optimize Design Operate Build Deploy

49 IT Services The V3 Value Proposition Governance (eg., CObIT) Demand Financial SLM Availability Capacity Continuity Configuration Assets Release Change Problem Request Incident Events Operations Service Strategy Service Design Service Transition Service Operations Continual Service Improvement (Six Sigma, TQM, etc.) Development Strategy Architecture Portfolio Bus. Req. Analysis Design Development Test Deploy Release Operate Business Needs Project Management (PMBOK, PRINCE2, etc.) Source: Ken Wendle TIME

50 Conclusion 2006 itsmf USA. All rights reserved.

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