An Enterprise View to Running the Business of IT

An Enterprise View to Running the Business of IT Implementing ITIL Based Service Management Programs and ERP like tools Presented by Jeff Connie, IBM, IT Infrastructure Principal jconnie@ca.ibm.com 403-539-3308

Business and Infrastructure Silos Must be Bridged Business Objectives Operational Efficiency Competitive Advantage Business Growth and Effectiveness through Service Ecellence Diminished Business Performance People Processes Information Technology CO CIO Operations LOB Other Staff Staff Requirements and Planning Lack of service contet. Delivery Support and Assurance Deployment and Fulfillment Continuity and Resilience Not closed-looped. looped. Not automated. Config Data Asset Relationship Billing Data Operational Data Data not shared or integrated. Silo-specific. Not Integrated. Financial Management Compliance Data Apps Network Data Center Security Voice Storage Page 2

IT Service Management touches every part of an IT organization IT services needs to support business goals, similar to business ERP programs (SAP), the IT side needs the same integrated, consistent approach Implement policies by integrating information, technologies and people with automated processes Standardized, federated, accessible information Information Process IT Service Management People Clearly defined roles and responsibilities provide a sound decision-making framework Technology Products and technologies to automate and integrate tasks and processes Page 3

The starting point to a best practice approach is a common framework.. ITIL does not claim to be a comprehensive description of everything within IT, but is a foundation of comman language and processes for IT service management best practices Adopt ITIL as a common language and reference point for IT Service Management best practices and key concepts. Adapt ITIL best practices to achieve business objectives specific to each company. ITIL does not define: Every role, job or organization design Every tool, every tool requirement, every required customization Every process, procedure and task required to implement What is already well defined in CMM, COBIT, BS15000, 7799, ISO 17799 Page 4

..a common entry point based on priorities to service your business needs. Demand Mgmt. SERVICE ENTRY POINT Service Delivery Service Level Mgt Capacity Mgt Performance Availability Mgt Management Financial Mgt Service Continuity Security Incident data Request for Change Incident Mgmt Problem Mgmt Change Mgmt End User SERVICE ENTRY POINT Repaired CI Service Support Configuration Mgmt New version CI Release Mgt QWR Operations IT Infrastructure Page 5

. and an understanding of how process and technology need to have integrated workflow and automation Page 6

The ultimate question is how do you get from best practices to implemented effectively and efficiently? Crossing the chasm Islands of fragmented efforts high cost, low quality services Enterprise direction, control and eecution of valuable services Page 7

Filling the design and implement gap will require adopting and adapting ITIL best practices with a phased and structured approach What else do you need to make ITIL work? Design Develop/Test Pilot Deployment Manage/Operate Education & Certification Plan Page 8

Without a structured enterprise approach to implementation, good intentions can lead to higher epenses ITIL Manage IT Assets and Infrastructure Support IT Services and Solutions Deliver Operational Services IT Process Model Satisfy Customer Relationships Deploy Solutions Realize Solutions Provide Enterprise IT Management System Manage IT Business Value Academic Knowledge Best Practices Frameworks Architectures SEI CMM A.S.L. A.D.E. ITIL s popularity has driven a groundswell of bottom up, grassroots but fragmented efforts which can lead to Significant rework Unwanted items Costly duplication Scope creep Cancellation Lot s of education Some eisting work can be reused but this requires detailed assessment of eisting: Tools Roles Processes Documentation This approach typically goes no where until there is at least some top down support Pursue high level support or seek assistance doing so ITIL Awareness or Eecutive Briefings can be helpful Page 9

What does it take to successfully implement best practices? What does it take to make ITIL work? Implementation epertise (Assess, Plan, Design, Implement) Governance integrating the business with IT and the processes into the organization Prioritizing & Diagnostic Techniques Capability Maturity Model Design & implementation methods Project management Tool Vendor Relationships Align IT with business objectives and enable more innovation Lower the long term cost of service delivery Improve the quality of IT services Accelerator IC if possible Page 10

The good news! This is not new and there is an etensive library of ITIL based templates to facilitate rapid assessment and design available in the market 3. Change Management Process Overview Process Goals ITIL Process Guides ITIL Organization Guide ITIL Service Management Guide ITIL Process Diagrams: LOVEM, IDEF0 ITIL Metrics ITIL Maturity Model Management Surveys ROI Calculator Tool Workshop Materials Project Plans Change Management Process Mission Statement Change Management will control all changes to all Configuration Items (CIs) in the managed environment by: Ensuring standardized methods, processes, and procedures are used for all changes from the request for change to the post-implementation review Facilitating efficient and prompt handling of all changes Minimizing the impact of Change-related Incidents upon service quality thus improving the day-to-day operations of the organisation Maintain a proper balance between the need for Change against the impact of the Change. Minimize the impact of Change-related Incidents upon service quality and consequently to improve the day-to-day operations of the organization. Maintain open channels of communication in order to promote smooth transitions when Changes take place. Process Scope The process starts with the recognition of the need to put in place and define a management system to control Change, including procedures and policies; it ends with the change being installed and activated. The process includes managing changes from the creation of a request, its assessment, through to deployment monitoring and post-implementation review; The process also encompasses trend analysis and measurement reporting; The process of Change Management is principally managing the Change. The process does not include the technical design and testing of the Change The process does not include the actual implementation of the Change, but manages and coordinates the implementation of the Change may also be performed by the calling process, e.g. Release Management. Typical in scope changes include: Hardware, Communications Equipment and Software, System Software, Live Application Software, All Documentation and procedures associated with running, supporting and maintaining the production environment Changes to ongoing projects are out of scope. Change Management Carrying Out the Process Initial (1) Aware (2) Effective (3) Efficient (4) Optimizing (5) Now Goal Accept & Much confusion over Clear entry point(s), but Good enforcement of Clear entry point(s); Classify the change entry authorization process required information; authorization works process, or there are unclear, and known to be tools/database used (evidence of some Changes multiple (possibly frequently bypassed. effectively; "informal" "rejects" or requests that changing) entry points. Required information is authorization process, need to be resubmitted IT gets involved late in not known by all. possibly with some due to insufficient the cycle -- no notion of "rubber stamping". Some information). authorization to request RFCs are rejected early Change Manager changes on if data is missing or confirms all priorities and there is an obvious categories. RFCs are conflict of dates. Many always sent to the correct RFCs are classified as areas for assessment. Emergency and allowed Some Emergency RFCs through the process are due to poor planning Review Much confusion over Uneven enforcing of Evaluation regularly Clear criteria; good Changes via the evaluation criteria: criteria and required includes risk assessment. balance struck between not information; process Lead times defined for all process standardization Change agreed/communicated known to be frequently changes, but not (automation) and Advisory with the change bypassed. Little or enforced. Change types meeting varied Board (CAB) / process participants, ineffective risk are defined but do not departmental needs. Emergency and possibly changing assessment. Lead times include all changes. CAB Risk assessments always depending on the defined for major / EC sometimes limited to done. Lead times Committee assessors. There is no changes. Regular CAB those affected by the required for all changes (EC) CAB. meetings with a large change. RFCs sent out are enforced. Change group of people electronically for CAB types defined for all preview changes. Membership of CAB / EC always varies, depending on the RFCs being reviewed. Business areas may be represented on CAB Etract Only Change entry is automated and process rules enforced as a result - lead times, process path, authorization requirements etc. are always correct. Emergency RFCs are always justified and handled correctly High quality requests based on criteria that adapt to practical usage; organisation feels positive about using the change management process; feedback loop in place. All change types accepted and controlled. CAB / EC frequently consider RFCs electronically without the need for physical meetings. Relevant business areas always involved in CAB / EC decisions Page 11

IBM offers it s own brand of a phased approach, which mirrors a similar business based ERP approach IGS ESM Lifecycle and Methods based on industry best practices and analysis of over 400 large enterprise projects Phase 1: Strategy And Assessment Phase 2: Design Solution Strategy Assessment Technology Processes Data Organization Each phase of this lifecycle are influenced by the following factors: Selection Operation Manage Delivery High level design Detailed Design Development Deployment Infrastructure & Organizational Compleity Customization Requirements # of Physical Locations Phase 4: Deliver Service Phase 3: Implement Solution Page 12

Phase 1 : Access and solution Best Practice Considerations Where do we want to be? Visions and business objectives Phase 1: Strategy And Assessment Strategy Planning to Implement Where are we now? How do we get where we want to be Assessments Process Change Assessment Selection How do we know we have arrived Metrics Page 13

IBM Global Services Planning to implement ITIL best practices requires effective techniques to diagnose capabilities and prioritize implementation efforts Different Assessment Types Priority to Improve Assessment Quick, High Level Capability Review Identify and Prioritize improvement opportunities based a fast structured and facilitated self assessment approach Capability Maturity Diagnostic Assessment A more focused and detailed assessment of management capability Identifies specific improvements Identifies eisting re-usable elements I.e. implemented tools, job descriptions, Detailed Process Analysis Activity based analysis as a base for design Solution and Transition Planning Prioritize What is healthy? What needs improvement? Diagnose Based on your priorities & current process capabilities Prioritize capability improvement Incident Management Problem Management Configuration Management Change Management Release Management Overall Rating Effectiveness No action now ITIL Maturity Workshop - Service Support 1 2 3 4 5 Maturity Importance Candidates for internal iterative improvement programs Take significant action now Current Target Page 14

Solution Selection considers the best approach for the design and implementation of the solution Phase 1: Strategy And Assessment Technology Strategy Information Services People Assessment Selection Phased initiatives, clear milestones Project Management People Training materials Teachers Customized & tested enabling technologies Acquire people Develop curriculum Customize and test tools Define jobs & staffing Workflows Tool customization requirements Select and install base tools DEV PILOT DETAILED DESIGN Process Detailed Design Development Deployment Phase 3: Implement Solution Define Roles and skill requirements Define tool requirements Process definition based on best practices Governance model Guiding principles Compelling reason to act MACRO DESIGN Phase 2: High Level Design Technology Data Processes Organization High level design Page 15

Several potential approaches to implementation are considered with the best approach being selected based on the need for customization ESM Lifecycle Phase 2 Design the Solution Architecture Data Processes Organization High Level Design Detail Design Develop Deploy ESM Lifecycle Phase 3 Implement the Solution Traditional Consulting Approach Customized High Level Design Detail Design and Implementation High Level Design Fastrack approach based on an ITIL design Detail Design and Implementation Tailored IBM ITIL Accelerator Solution Personalized Outsourcing Solution Service Provider Offering How long it takes to design and implement a management solution is based on the need or desire for customization Page 16

Then, the implementation contet should be decided Design a core set of processes required to support and delivery any specific service as a foundation for successful service management ITIL Fast track approach: Design a core set of processes required to support and delivery any specific service as a foundation for successful service management When implementing ITIL, further scope limitation decisions should be made to aid a quick and effective effort: Service: implementation will focus on one or more specific services Infrastructure: implementation will focus on some subset of the infrastructure Process: implementation will focus on one or twp processes only Organization: implementation will focus on some subset of the organization Improve eisting service management based on an incremental change in infrastructure, systems management tools, organization, sourcing, services or business applications Page 17

Phase 2 : Design Solution Best Practice Considerations ITIL based templates to enable fast track design approach Process Guide Templates Organization Guide Template Service Support and Delivery Management Guide Template Project Plan High Level Implementation Plan Phase 2: Design Solution Technology Data Processes Organization High level design Page 18

ID Task Name Feb Mar Apr May Jun Jul 1 Start Stage III 2 Launch Stage III Project 3 Reconfirm Project Scope, Objectives, Assumptions, Dependencies 4/8 4/8 4 Set Up Project Environment 4/8 4/8 5 Develop Project Plan 6 Define first implementation scope 4/8 4/8 7 Meet with Tivoli project manager 4/29 4/29 8 Meet with Remedy project manager 4/29 4/30 9 Refine Tasks 4/30 5/2 10 Refine Schedule 5/2 5/3 11 Refine Resource Plan 5/3 5/6 12 Document Project Success Criteria 5/6 5/7 13 Review Project Plan 14 Review Project plan With Sponsor 5/7 5/8 15 Conduct Project Kick Off with Core team 5/8 5/10 16 Conduct Project Kick Off with PC/LAN Services 5/9 5/9 17 Conduct Project Kick Off with Aurora 5/10 5/10 18 Conduct Project Kick Off with AD building participants 4/8 4/8 19 Document Success Criteria 20 Success Criteria for Processes 4/8 4/8 21 Success Criteria for Organization 4/8 4/8 22 Success Criteria for Tivoli 4/8 4/10 23 Success Criteria for Remedy 4/8 4/10 24 25 Develop Costs IBM Global Services Phase 2: High Level Design focuses on the logical model for the management framework Eecutive Steering Committee Design Team Project Management Office Management Model & Guiding Principles Organization Guide Roles Subprocesses performed Technology Used Skill Requirements Role Location Role Levels Skills/Role Payroll System Accounting System Invoicing Stock Control System Legal System Ordering Logistics Postal Addresses CAD/CAM Intranet Internet Office Suite E-mail Process Team #1 Process Team #2 Define IT Services Visible & Invisible Process Team #3 Accounts Sales Marketing Legal Production Retail Warehouse Transport Design Elements To Be Managed Process Guide Definition mission scope inputs& outputs activities measurements Tool Guide Required Tools Functions Performed Tool Requirements Location used Gap Analysis Service Guide Definition Customers, Stakeholders etc Interfaces Service flow Implementation Plan Plan for net steps (High Level Design) If a phase 1 assessment has not been done, a fast design based assessment is required to gather the information needed at the beginning of the project to ensure a rapid successful completion Page 19

Phase 3 : Implementation Best Practice Considerations Detailed Design Considerations Workflow - Process Validate services Check standards and policies User Interfaces Measurements, Reports Technology Select & procure tools Configure software and hardware Physical data model Organization Define jobs and roles Identify staffing levels Skill gap analysis Identify recruitment Identify training needs Pilot PROCESS Policies, Detailed Workflows High-level Design Procedures, Technology, Screen Names, Field Names, Measurements, Screen def, Reports Curriculum, Training Resource Acquisition Job Descriptions, Staffing Levels High-level Design PEOPLE TOOLS High-level Design Tool Selection & Installation Tool and Data Customization Pilot Detailed Design Development Deployment Phase 3: Implement Solution Page 20

Phase 3: development & testing considerations Process Develop reports Develop User Guides Organization Testing Staff is acquired or reassigned for new jobs Course curricula are obtained and/or developed Orientation Training Materials, TTT Develop test cases Test every aspect System test cases Integration test cases Unit test cases Unit test cases Eecutive Steering Committee Project Management Team Workflow Team Organization Team Technology Team Technology Team Unit Test Pilot Team Integration Test System Test User Acceptance Test User Acceptance test cases Unit test cases Test the function of a module or program Test all modules within the solution Test the solution with other system components Verifies the solution meets user requirements Unit test cases Page 21

and the pilot, which is the first part of implementation ID 1 2 3 4 5 6 7 8 9 10 Workflow Eecute new services Validate measurements and controls Organization Train people on the new system Validate staffing levels, roles and responsibilities Technology Validate tool functionality Populate data Task Name Month 2 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Pilot Objectives Pilot Procedures Job Descriptions, Staffing Levels High-level Design PROCESS PEOPLE TOOLS High-Level Design Tool Selection & Installation Tool and Data Customization Pilot Policies, Work Flows, Measurements High-Level Design Training Resource Acquisition Process and Organization Effectiveness Workflow is logical and understood by participants Appropriate information is captured Meaningful reports are generated Identified roles and staffing levels are valid Responsibilities are understood Process is perceived to add value Multiple location concept is supported Eample Documentation and Training Effectiveness Documentation is of high-quality Training provided is sufficient to use the tools and the process Tool Functionality and Usability Tools are easy to use for all participants On-line help is sufficient Performance is within acceptable ranges Problems and changes are automatically routed to correct assignees and approvers Tools adequately support the process Tools support central coordination and distributed functionality and control Page 22

Phase 3 ends with the full deployment ID 1 Task Name Define Deployment Activities Define Required Deployment Resources Define Deployment Timeframe Month 2 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Well managed people armed with the right information eecuting well defined technology enabled processes will deliver high quality services to the businesses they support 2 3 4 5 6 7 8 PILOT Technology 9 10 ID 1 Task Name Month 2 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Information Services People 2 3 4 5 6 Process 7 8 DEPLOYMENT 9 10 Page 23

When viewed in entirety, the phased approach breaks the effort into smaller, manageable, measurable pieces Determine client s current state (6-8 wks) Prioritization Capability Maturity IT Services Strategy Infrastructure Services Readiness Engagement Strategy & Planning Service reports Incident statistics Audit reports Deliverables Detail Design High Level Design Incident management CMDB reports CMDB statistics Policy standards Audit reports Engagement Output Deliverables Detail Design High Level Design Configuration management Change schedule CAB minutes Change statistics Change reviews Audit reports Strategy Roadmap for Implementation of ITIL Deliverables Detail Design High Level Design Change management Release schedule Release statistics Release reviews Secure library Testing standards Audit reports Build & Deploy Deliverables Detail Design High Level Design Release management Accelerator Approach Accelerator Accelerator Deliverables Detail Design High Level Design Problem management Problem statistics Trend analysis Problem reports Problem review Diagnostic aids Audit reports CI s Incidents Changes Releases Relationships Configuration management database Problems Known errors Page 24

An ITIL Service Management Roadmap provides a methodology driven series of integrated initiatives that closes the implementation gap Project Planning & Preparation Phase 1 Strategy Phase 2 Design Project Planning Infrastructure Readiness Engagements Incident HLD Configuration HLD Change HLD Service Desk Release HLD Problem HLD Phase 3 Implement Eample Schedule will vary on scope, size of infrastructure, resources and the number of processes to be designed. Incident Detail Design Configuration Detail Design Change Detail Design Service Desk Release Detail Design Problem Detail Design Kickoff Month 1 Month 2 Month 3 Month 4 Month 5 M M Strategy ReportDesign report M Design report M Design report Month 6 Month 7 M Design report M Design report M M Design reportdesign report Page 25

Keys to Successful Implementations Adopt and Adapt Not "ITIL for ITIL s sake; Guru of the day vs. "business objectives Assess, Plan, Design and Implement Skills are not the same as "Managing" Skills once-in-a-career events require help from someone that has done it before. Don't mistake education for implementation Governance to integrate the business with IT and an Integrated Process model ITIL Capability Maturity Model and focus on practical net steps rather than boil the ocean approaches to achieving world class Project management skills, scope, achievable objectives, clear milestones etc Effective approach to prioritizing transition initiatives Tool vendor relationships and the value of single vendor responsibility" Anything that speed things up - Intellectual Capital and Accelerators Service Management Culture process designs and the people that eecute the activities must see the connection to the customer and the value of what they are doing so it is not just a new set of rules and bureaucracy Page 26

The ultimate aim of every ITIL implementation is an integrated solution of people, process and technology Technology Planned implementation Information Services People Realistic agreed to objectives Process Structured approach Well trained people, armed with the right information, eecuting well defined, technology-enabled processes will deliver high quality services to the businesses they support. Reliance on project management disciplines Eecutive commitment Page 27