1 ITIL Version 3 Road Show ITIL V3 Global Road Show
2 Today s agenda Introduction & high level story The 5 books Qualifications The road ahead
3 Housekeeping Where to go if The Lord of the Ringtones Breaks Other
4 Thanks to The Author team Our Sponsors The Delivery team
5 ITIL V3 Global Roadshow
6 The ITIL Service Team OGC Contract Mgmt Core Practices Web Services TSO IP Mgmt Board Quals Board APMG Exam Institutes Examiner Panels Comp Portfolio Marketing Course Providers Partners
7 Core Practice Team The Chiefs OGC OPERATIVE TSO OPERATIVE Chief Architect THEIR Chief Editor Publisher MISSION Author Author Task master ITIL Queen ITIL Evangelist ITIL Evangelist INOPERATIVE IMPOSSIBLE
8 The Agents Michael Nieves Accenture Majid Iqbal Carnegie Mellon University David Wheeldon Hewlett Packard David Cannon Hewlett Packard Colin Rudd ITEMS Ltd Vernon Lloyd Fox IT George Spalding Pink Elephant Gary Case Pink Elephant Shirley Lacy ConnectSphere Ivor Macfarlane Guillemot Rock Sharon Taylor Aspect Group GLOSSARY Ashley Hannah HP Stuart Rance - HP SERVICE MODEL Jeroen Bronkhorst - HP
9 ITIL V3 Global Roadshow
10 The Purpose of V3 Meet the needs of today and tomorrow Evolve SM practices to next level of maturity Address current practice gaps Embed solid processes into a service lifecycle Stronger connection to converging frameworks Governance Standards Management
11 The need for change More practical how to guidance Improved consistency and comprehensiveness Extend the focus to measurable business value Visible links to other industry practices Guidance in context to current needs
12 ITIL V3 Global Roadshow
13 ITIL At your Service
14 Core Structure ISO CMMI escm ISO COBIT Six Sigma
15 Why a Lifecycle? Building on a great practice base Enabling integration with business process Managing services from cradle to grave Removing process silos Reflecting the public feedback for holistic lifecycle focus
16 A lifecycle stage at work Plan Do Check Policies & Principles Processes Measure Fundamentals Activities Review Organization R&R Functions Deliverables to next stage Act
17 Non linear process
18 Event Incident Problem Technology Access Financial Generation Portfolio Catalogue Service Level Availability Capacity Continuity Supplier Demand Change Asset & Configuration Release and Deployment Validate
19 ITIL V3 Global Roadshow
20 Value for Services Services as Assets Sustainable performance Service Utility and Warranty What the customer gets fit for purpose How it is delivered fit for use
21 The Service Portfolio Service Portfolio Description Value Proposition Business Cases Priorities Risks Offerings and Packages Cost and Pricing Service Catalogue(s) Service Catalogue(s) Services Service Catalogue(s) Services Supported Products Supported Services Products Policies Policies Supported Products Ordering and Request Procedures Ordering Policies and Request Procedures Support Terms Ordering and and Request Conditions Support Procedures Terms and Conditions Entry Points Support and Terms and Escalations Entry Conditions Points and Escalations Pricing and Entry Chargeback Points and Pricing Escalations and Chargeback Pricing and Chargeback
22 Five Aspects of Service Design 1. Requirements, Resources, Capabilities 2. Management Systems, Tools 3. Technology and Management architectures 4. Processes 5. Measurement systems
23 Service Knowledge and Stability Wisdom Knowledge Service Knowledge Management System Presentation Layer Knowledge Processing Layer Information Informatio n Integration Layer CMIS Service Knowledge base KEDB AMIS Integrated CMDB Data Data and Informatio n CMDB1 CMDB2 DML1 DML2 Enhancing the decision power in Service Management
24 Continual Improvement 7 Steps to Service Improvement Identify Vision, & Strategy Tactical Goals Operational Goals 1. Define what you should measure 7. Implement corrective action 2. Define what you can measure Goals 6. Present and use the information assessment summary action plans, etc. 3. Gather the data Who? How? When? Integrity of data? 5. Analyze the data Relations? Trends? According to plan? Targets met? Corrective action? 4. Process the data Frequency? Format? System? Accuracy?
25 ITIL V3 Global Roadshow
26 ITIL Complementary Portfolio Supports the ITIL Core Topic Specific Enhanced Guidance Industry Developed Research Supported Living Library Industry owned ITIL Branded Official Study Aids Outsourcing Expertise Scalable Adaptation Public Sector Knowledge System Measurement ITIL for Executives ITIL in various sectors ITIL in various platforms Commences June 2007
27 Business Benefits of V3 Improved use of IT investments Integration of business and IT value Portfolio driven service assets Clear demonstration of ROI and ROV Agile adaptation and flexible service models Performance and measures that are business value based IT Service Assets linked to business services
28 ITIL V3 Global Roadshow
29 Service Strategy ITIL Service Strategy authors Michael K. Nieves Accenture Majid Iqbal Carnegie Mellon University ITIL V3 Global Road Show
30 From ITILv2 to ITILv3 Computers are useless. They can only give you answers." Computers are useless. They can only give - Pablo you answers. Picasso - Pablo Picasso ITIL v2 Publication Framework ITIL v3 Service Lifecycle
31 What do you see?
32 There are no triangles. We provide the edges as we provide our views of the world. The edge of IT was once to be found solely in technology. ITIL rearranged the edge to include people and process. ITILv3 once again rearranges the edge. This time with a focus on services.
33 The future: A global service economy Nation % WW Labor % A % G % S 25 yr % delta S United States 2004 China India Agriculture Goods U.S Indonesia Services Brazil Russia Japan Nigeria Banglad Germany Steps towards a Science of Service Systems, Jim Sporhrer,et al. IBM
34 The past: What ever happened to other process frameworks such as TQM, BPR, QC, et al.? History teaches us that process frameworks don t solve everything. In fact, they often bring their own set of challenges. Left ignored, these challenges work against the long-term success of the organization. What ever happened to other process frameworks such as TQM, BPR, QC, et al.? Critiques common to all process frameworks: transformed our organization from functional silos to process silos. oversimplified an increasingly complex business environment. offered only a basic pragmatism. potpourri of loosely interconnected, and often redundant, vignettes in search of a framework. ignored swings in priorities such as cost reduction, revenue growth, competitive advantage, profit or market domination.
35 What is the service strategy of ITILv2? A model whereby the strategy is the optimization of work tasks. The parameters of value are contained within the walls of IT Value means making whatever you want more efficiently. ITIL v2 Publication Framework Not wrong, but are you making the right things to begin with, or can you create more value by undertaking broader or narrower missions?
36 What is the service strategy of ITILv3? It is a model whereby the strategy begins with the customer s desired outcomes. Customers don t buy products, they buy the satisfaction of particular needs. This means that what the customer values is often different from what the service provider thinks he or she provides. Acknowledges that every service provider is subject to competitive forces. Service Strategy sits at the core of the new ITIL v3 Service Lifecycle
37 What is a Service? Services are a means of delivering value to customers by facilitating outcomes customers want to achieve, without the ownership of specific costs and risks.
38 What is a Service? Services are a means of delivering value to customers by facilitating outcomes customers want to achieve, without the ownership of specific costs and risks.
39 What is a Service? Services are a means of delivering value to customers by facilitating outcomes customers want to achieve, without the ownership of specific costs and risks. Utility: What the Customer gets Utility is measured on the basis of the number of key outcomes supported and constraints removed + Warranty: How is it delivered Warranty is measured in terms of the levels of Availability, Capacity, Continuity and Security = Value Creation The basis of differentiation in the Market Space
40 What is a Service Strategy? A means to become not optional. The lifecycle begins with Service Strategy, the discernment of an IT organization s strategic purpose; a topic that often gets short shrift in the pursuit of day-to-day practicalities. It service strategy helps senior managers understand how their organization will differ from competing alternatives and thereby satisfy both customers and stakeholders. Properly done, these core strategic concepts can and should lead to powerful and practical insights where is the organization headed and what does it need to do to get there?
41 Operational efficiency is necessary but not sufficient. IT services are now part of the fabric of the business and customers expect guaranteed levels of service: A few years ago, customers could only use ATMs to withdraw cash.
42 Service strategies are required to create long-term value for Customers and Stakeholders. IT services are now part of the fabric of the business and customers expect guaranteed levels of service: A few years ago, customers could only use ATM s to withdraw cash. Today, the entire customer experience may take place through ATMs: withdraw cash; pay in cheques and cash; manage their accounts; transfer money; obtain quotes for loans; top-up their mobile phones.
43 Who will shape the service strategies of tomorrow? IT services are now part of the fabric of the business and customers expect guaranteed levels of service: A few years ago, customers could only use ATM s to withdraw cash. Today, the entire customer experience may take place through ATMs: withdraw cash; pay in cheques and cash; manage their accounts; transfer money; obtain quotes for loans; top-up their mobile phones. Service strategies will shape the ATMs of tomorrow.
44 Why should CIOs care about ITILv3? Whilst CIO s will still care about achieving operational excellence in order to deliver robust services to the Business and its Customers Unacceptable levels of Service availability Unclear and uncontrolled Service costs Inability to respond to changing Business needs Ineffective Service improvement Programmes Inconsistent reporting of Service performance δ Inability to react effectively to major Service Events or Crisis Perception of poor quality and inconsistent ways of working Inability to demonstrate regulatory compliance (eg SOX)? Unclear compliance against Software Licence Agreements Complex infrastructure and unclear end-to-end IT Services
45 Why should CIOs care about ITILv3? they will also need to understand how to shape service strategies that create value for Business and its Customers. The new Service Strategy volume deals with these C-Level Business concepts. For example: Defining Services; Defining Strategy; Value Networks, Value Creation and Value Capture; Market Spaces and Solution Spaces; Business and IT Service Management; Service Portfolios; Enterprise Architecture and Service Oriented Architecture; Types of Service Providers; The Business Case for building Service Assets and Service Management Capabilities; Measuring Service Performance.
46 Service Strategy ITIL Service Strategy authors Michael K. Nieves Accenture Majid Iqbal Carnegie Mellon University ITIL V3 Global Road Show
47 Business outcomes and performance of customer assets are the basis for valuing services and service management Leverage Leverage People don t buy quarter-inch drills. They buy quarter-inch holes. - Theodore Levitt 2007 Metaphor Systems. All rights reserved.
48 Service management synchronizes the productive capacity of service assets with business activity of customer assets Customer Service Provider Operation schedules Resource allocation Capacity adjustments Usage profiles Patterns of business activity Customer assets Services Service assets Service Level Packages Pricing policies Service Level Agreements Principles in practice Specialization & coordination Synchronization Closed-loop system Feedback & learning Loose-coupling 2007 Metaphor Systems. All rights reserved.
49 Services and service level packages are tagged with the outcomes for which they have service potential WSP1 COM1 STR1 SEC1 WSP2 COM2 STR2 SEC2 WSP3 COM3 STR3 SEC3 Keeping geeks happy for over a quarter of a century. Credo of James J. Skees Building Facilities Manager, School of Computer Science, Carnegie Mellon University Crown Copyright.
50 On behalf of customers, Relationship Managers negotiate productive capacity in the form of suitable services Product Manager Productive capacity Service Catalogue Principles in practice Separation of concerns Agency Loose-coupling Portfolio 2007 Metaphor Systems. All rights reserved.
51 The Service Portfolio represents investments across the Service Lifecycle necessary to implement strategy Third-party catalogue Service Design Service Operation Retired services Economy does not lie in sparing money, but in spending it wisely. - Thomas Henry Huxley 2007 Metaphor Systems. All rights reserved.
52 So, Service Strategy is not the exclusive concern of strategists who come to work in specially marked cars!! CIO / Director Thank you! Product Manager 2007 Metaphor Systems. All rights reserved.
53 Service Design Authors Colin Rudd ITEMS Vernon Lloyd ITIL V3 Global Road Show FoxIT
54 See first that the design is wise and just: that ascertained, pursue it resolutely do not for one repulse forego the purpose that you resolved to effect William Shakespeare A common mistake that people make when trying to design something completely foolproof was to underestimate the ingenuity of complete fools. Douglas Adams
55 Business Process Change Business Requirements & Feasibility Business Process Development Business Process Implementation Business Benefits Realisation IT Service Requirement IT Service IT Service Lifecycle
56 Service Definition Definition: 'The design of appropriate and innovative IT services, including their architectures, processes, policies and documentation, to meet current and future agreed business requirements'
57 Requirements The Business / Customers Service Strategy Strategies Policies Resource and constraints Objectives from Requirements Service Portfolio Service Catalogue Service Design Service Transition Solution Designs Standards Architectures SKMS Tested solutions Transition Plans SDPs Service Operation Operational Plans Operational services Continual Service Improvement Improvement actions & plans
58 The five aspects of Service Design Design of the service solutions Design of the Service Management Tools (and other supporting systems) Design of the technology architectures and management systems Design of the processes Design of the measurement systems, methods and metrics
59 Service Design There is a requirement to design all processes Processes covered in detail: Service Level Management Availability Management IT Service Continuity Management Supplier Management Information Security Management Capacity Management Service Catalogue Management.
60 The Service Catalogue Business Process 1 Business Process 2 Business Process 3 Business Service Catalogue Service A Service B Service C Service D Service E Technical Service Catalogue Support Services Hardware Software Applications Data
61 Customer perspective Business perspective Innovative perspective Financial perspective Business objectives & metrics Customer perspective Business perspective Innovative perspective Financial perspective IT objectives & metrics Overall service & customer metrics Service quality Customer feedback Customer complaints Individual service & customer metrics (Customer Satisfaction) Service functionality (Process performance) (Response & innovation) Service D Service Customer Customer Service Service quality C surveys complaints functionality Service Customer Customer Service quality surveys complaints functionality Service Service B Customer Customer Service quality surveys complaints functionality Service Customer Customer Service Service A quality surveys complaints functionality (Financial performance) Individual Process metrics Process 3 quality effectiveness Process 2 costs efficiency quality effectiveness Process 1 costs efficiency progress compliance effectiveness efficiency Individual Component metrics Component 3 Availability Performance Capacity Failures Changes Component 2 Availability Performance Capacity Failures Changes Component 1 Availability Performance Capacity Failures Changes
62 Design is the art of gradually applying constraints until only one solution remains. Comparative unit costs Existing commitments Resource constraints including schedules Acceptable service solution Level of warranty Desired service solution Value & ethics Technology constraints Copyright, patents & trademarks Solution space or the set of designs that are allowed with the given set of constraints Compliance with Standards & regulations Capability constraints Utility to be provided Other constraints: policy, governance, etc..
63 New Requirements Operational New Services Service Strategy Strategies and constraints Service Design Package Service Transition Service Operations Analyse requirements, document & agree Design service solution Evaluate alternative solutions Procure the preferred solution Develop the solution Service Design Architectures Service Portfolio Measurement Methods Service Catalogue Key Service Design processes SLM: Policy, plans, SIP, SLRs, SLAs, OLAs, reports Capacity: Policy, plans, CMIS, reports, sizing, forecasts Availability Policy, plans, design criteria, risk analysis, AMIS, reports, schedules IT SCM: Policy, Plans, BIA, BCPs, IT SCPs, risk analysis, reports & schedules Security: Policy, plans, risk analysis, reports, classification, controls Supplier: Policy, plans, reports, SCD, contracts Service Catalogue M. Service Level Management Capacity Management Availability Management IT Service Continuity M. Information Security Supplier Management Processes input from other areas: including Event, Information, Incident, Problem, Request Fulfilment, Access, Change, Configuration, Knowledge,, Release Planning, Risk Evaluation, Testing, Build and Test, Release Acceptance, Deployment, IT Financial, Service Portfolio, Demand Management
64 Summary Design is so critical it should be on the agenda of every meeting in every single department. Tom Peters Design is not just what it looks like and feels like. Design is how it works. Steve Jobs Good design is the most important way to differentiate ourselves from our competitors. Samsung CEO Yun Jong Yong Your products run for election every day and good design is critical to winning the campaign. Procter & Gamble CEO A.G. Lafley Design's fundamental role is problem solver Fast Company
65 The better the design the less the need for rework Col & Vern 2007 Colin Rudd FISM Vernon Lloyd FISM
66 Service Transition Authors: Shirley Lacy, ConnectSphere ITIL V3 Global Road Show Ivor Macfarlane IBM 66
67 Service Transition Taking ITIL forward Value to the business Integrate/align new or changed services with the customer s business Ensure that the changed service can be used in a way that maximizes value to the business operations Deliver more change successfully Across the customer base Reduce unpredicted impact and risks Reduce variation - estimated v. actuals Services - fit for purpose, fit for use
68 What is Service Transition? Taking the design and transitioning the Service into operations focused on Service Delivering in the actual circumstances Practices to: Make it easier for to adopt and manage change Standardize transition activities Maintain the integrity of configurations as they evolve Expedite effective decisions Ensure new / changed services will be deployable, manageable, maintainable, cost-effective
69 Key Processes Lots that isn t new - but improved Change management Configuration management Release and Deployment Nothing much there to upset your Tools Training Practitioners
70 Change Management Scope Business Service provider Supplier Strategic change Manage the business Manage IT services Manage the supplier s business Tactical change Manage the business processes Service portfolio Manage external services Service change Operational change Manage business operation Service operations External operations
71 What s improved Change & configuration management Change Normal, standard emergency change models Change evaluation More granular change authorization Design Configuration structures, models, levels Processes, procedures, workflows Configuration management system Managing change to service assets and configurations Optimisation and lifecycle management of service assets Capturing baselines and releases Minimizing issues due to improper configurations
72 Configuration Management System - CMS Presentation Layer Knowledge Processing Layer Information Integration Layer Integrated CMDB Data and Information CMDB1 DML1 CMDB2 DML2
73 What s improved Release and Deployment Change Management Service Asset and Configuration Management Plan and prepare release Build and test Service testing and pilots Plan & prepare deployment Transfer, Deploy, Retire Review and close service transition Release and Deployment Early Life Support
74 What s new Transition planning and support Integrated planning Transition capacity and resources Across all service transition With service operations and CSI With the business, customer and users Proactive support Maintain/ re-use transition models Progress tracking & management Course corrections Transition closure
75 What Else is New Change Management Service Asset and Configuration Management Oversee management of organization and stakeholder change Service Transition Planning and Support Plan and prepare release Build and test Service testing and pilots Plan & prepare deployment Transfer, Deploy, Retire Review and close service transition Release and Deployment Early Life Support Service Validation, Testing and Evaluation Knowledge Management
76 What s new Service V model Level 1 Level 2 Level 3 Business/ Customer Needs Service Design Service Op. Readiness Test Service Acceptance Service Operations Level 4 Level 5 Build & Test Service Transition Stage 1 Test models and Testing perspectives Structure, baselines, evidence More controlled handovers / release
77 What s new SKMS Service Knowledge Management System Decisions Configuration Management System Configuration Management Databases
78 What s new - Managing organizational change Strategies to manage organization, stakeholder, people change People s commitment, roles and emotions Performance optimum performance shock avoidance external blame self blame The emotional cycle of change Time
79 Service Transition Moving ITIL forward Delivering what the business needs Services fit for purpose, fit for use Integrated, holistic, standard approach Reduce variation predicted vs actual Quality, Cost, Time Capabilities, Resources, Capacity Risks, Errors and incidents More IT enabled change that adds value to the customer s business Shirley Lacy Ivor Macfarlane
80 Service Operation Business as Usual ITIL V3 Global Roadshow
81 Why Service Operation? Stability but not stagnation Realizing value Responding to operational needs in Business and Technology Great design is worth little if it can not be delivered Achieving balance
82 What Were we Thinking? Service and Infrastructure are not different worlds Different service models will be operated differently we limited ourselves to IT The what and the who are equally important The world of Operation does not stand alone
83 Context ITIL V3 Global Roadshow Monitoring and Control
84 Context - Monitor Control Loop Norm Control Compare Monitor Input Activity Output
85 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
86 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
87 ITIL V3 Global Roadshow Processes
88 Service Operation Processes Incident Management
90 Service Operation Processes Event Management Incident Management Incident Management Request Fulfillment Self Help
91 Self Help Significant potential to: Improved responsiveness Reduced demands on IT staff Reduced costs Improved standardization Improved quality
92 Self Help Web Based Front End Menu Driven Shopping Cart Experience Incident Management Request Fulfillment Change Management Deployment Access Management Asset or CMDB
93 Event Management Logging and Filtering Exception Filter Warning Event Information
94 Event Management Managing Exceptions Incident Incident Management Exception Incident/ Problem / Change? Problem Problem Management RFC Change Management
95 Event Management Information & Warnings Incident Incident/ Problem / Change? Problem RFC Alert Human Intervention Warning Auto Response Information Log
96 Service Operation Processes Problem Control Error Control Problem Control
97 Service Operation Reactive Processes Problem Control Error Control Problem Control Problem Management
98 Service Operation Reactive Processes Problem Control Error Control Problem Control Problem Management Known Error
99 Service Operation Reactive Processes Problem Control Error Control Problem Control Problem Management Known Error
100 Service Operation Reactive Processes Problem Control Error Control Problem Control Problem Management Known Error
101 ITIL V3 Global Roadshow Functions
102 Service Operation Functions Service Desk IT Operations Management Technical Management Application Management Operations Control Facilities Management
103 Common SO Activities Mainframe Management Server Management Network Management Storage and Archive Database Administration Directory Services Management Desktop Management Internet / Web Management Etc.
106 Questions? Questions? Y Answer Known? Y Answer N N Thank Audience State that time has run out Leave
107 ITIL v3 Continual Service Improvement ITIL V3 Global Roadshow Gary Case George Spalding Pink Elephant
108 Organizations Have Always Talked About It CSI is not a new concept. Organizations have talked about it for many years; but, for most, the concept has not moved beyond the discussion stage. For many organizations, CSI becomes a project when something has failed and severely impacted the business. When the issue is resolved, the concept is promptly forgotten until the next major failure occurs
109 What s Different in v3 Most everything CSI was only addressed as part of Service Level Management in v2 Addressed as part of the overall Service Lifecycle Improvement Model in v3 Continual Improvement Process in v3
110 CSI Goals, Scope & Key Processes Goals To identify and implement improvement activities on IT Services that support the business processes as well as identify and implement improvements to IT Service Management processes. The improvement activities will support the Lifecycle approach through Service Strategies, Service Design, Service Transition, and Service Operations and should always be looking for ways to improve process effectiveness, efficiency as well as cost effectiveness Scope Service and Service Management improvement All of IT Key Processes Service Level Management (monitor, report, review) Problem Management (Proactive / trending / analysis) Knowledge Management (DIKW)
111 CSI Objectives Review, analyze and make recommendations on improvement opportunities in each lifecycle phase: Service Strategies, Service Design, Service Transition, and Service Operations Review and analyze Service Level Achievement results Identify and implement improvement activities to improve IT Service quality and improve the efficiency and effectiveness of ITSM processes Improve cost effectiveness of delivering IT Services Identify and implement improvement activities of the ITSM processes and supporting tools Ensure applicable quality management methods are used to support continual improvement activities
112 Continual Service Improvement Model What is the Vision? Business Vision, mission, goals and objectives How do we keep the momentum going? Where are we now? Where do we want to be? Baseline Assessments Measurable Targets How do we get there? Service & Process Improvement Did we get there? Measurements & Metrics
113 The Continual Improvement Process Identify Vision, & Strategy Tactical Goals Operational Goals 1. Define what you should measure 7. Implement corrective action 2. Define what you can measure Goals 6. Present and use the information assessment summary action plans, etc. 3. Gather the data Who? How? When? Integrity of data? 5. Analyze the data Relations? Trends? According to plan? Targets met? Corrective action? 4. Process the data Frequency? Format? System? Accuracy?
114 Service Lifecycle Improvement Service Strategy Strategies Policies & Standards Feedback lessons learned for improvement Feedback lessons learned for improvement Service Design Output Plans to create and modify services and service management processes Feedback lessons learned for improvement Feedback lessons learned for improvement Output Service Transition Manage the transition into production of a new or changed service and/or service management process Output Feedback lessons learned for improvement Service Operation Day to day operations of services and service management processes Continual Service Improvement Activities are Embedded in the Service Lifecycle
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