ICSEA Tutorial. From Software Engineering to IT Service Management. Agenda

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Marko Jäntti ICSEA Tutorial From Software Engineering to IT Service Management Agenda Module 1: Introduction Module 2: Incident management Module 3: Problem Management Module 4: Change Management Conclusion ICSEA Tutorial 3.11.2013 2 1

Module 1: Introduction Welcome to the world of IT services 3 Goals of the tutorial This tutorial shall provide an insight into IT service management describe the service lifecycle present the overview of the most popular IT service management processes and concepts. explain the relationship between software development and IT service management through the application management function. provide lessons learnt from ITSM process improvement case studies with IT service provider organizations ICSEA Tutorial 3.11.2013 4 2

About us UEF is one of the largest universities in Finland. 15,000 students and 2,800 members of staff Three campuses are located in Joensuu, Kuopio and Savonlinna. Three areas of expertise: Forests and the Environment, Health and Well-being, and New Technologies and Materials. School of Computing Software engineering (IT Service Management) Health care information systems Computational intelligence ICSEA Tutorial 3.11.2013 5 About us Keys to IT Service Management and Effective Transition of Services (KISMET) is a research project funded by TEKES ERDF and industrial partners. The goal of the KISMET is to 1. Examine the transition of IT services and service management processes 2. Enhance the knowledge sharing on IT service management procedures, methods and concepts both in IT service provider organizations and IT customer organizations 3. Provide organizations a discussion forum to share experiences in IT service management ICSEA Tutorial 3.11.2013 6 3

ITSM Research partners ICSEA Tutorial 3.11.2013 7 Software Engineering vs. IT Service Management Software engineering: the systematic design and development of software products and the management of the software process Mills H.D: The management of software engineering, Part I: Principles of software engineering, IBM Systems Journal IT Service Management: The implementationand management of Quality IT Services that meet the needs of the Business. IT Service Management is performed by IT Service Providers through an appropriate mix of People, Process and Information Technology. ITIL V3 Glossary, 2007 Project-oriented business Product-oriented business Service-oriented business ICSEA Tutorial 3.11.2013 8 4

Information Technology Triangle Project milestones Unified Modelling Language Project Failure / Success IT/ Software Projects Project Management PRINCE2 PMBOK IT Project management Effort Estimation Work Breakdown Structures (WBS) Software Architecture Software Product Lines Product Releases IT/ Software Products Configuration Baseline Software Change Order Software Development Components Documentation IT Service Management Inception Elaboration Construction Transition IT/ Software Services Service Catalogue Service Levels Rational Unified Process Service Desk IT Infrastructure Library (ITIL) Service Incidents Tutorial 3.11.2013 9 Why to shift focus from SE to ITSM? IT service management is a world-wide trend: Transition from software products to IT services (competition) Outsourcing of service operations to lower-cost countries Global adoption of ITSM practices 74% of federal, 37 % of state and 17 % of local government IT organizations in Australia are very knowledgeable about ITSM * Nearly 60% of 100 U.S. CIOs polled (n= 370) confirmed that they are working with ITIL There is a strong demand for ITSM professionals *Forrester Consulting 2012: Next-Generation IT Service Management in the Australian Government Sector 3.11.2013 10 5

The context of IT Service Management Service Contracts Service Level Agreements Underpinning Contracts IT Service Suppliers IT Service Catalogue Workstation services IT Customer Customer s Business IT Service Provider User support services (Service desk) Server services Application services 3.11.2013 11 Example of a service provider network IT Department Energy customers Energy company Customers and Billing product Main IT Service Provider Savon Voima IT Department Server services Application services Third Party IT Service Provider ICSEA Tutorial 3.11.2013 12 6

IT Service Management Big Picture Service Desk cases Incidents Software Failures Hardware Failures Service Requests Service Requests Incident Management Customers & Users Solutions Service Desk Service Request Teams IT Services Server services Desktop services Network services Service desk services Application services Release Packages Release Management Back-office Repeating incidents, Software &Hardware failures Workarounds & Permanent Solutions Problem Management - Problem Control - Error Contol - Proactive PM Configuration Management CMDB Application Development Third Party providers Problems Change Management Tutorial 3.11.2013 13 IT Infrastructure Library (ITIL) IT Infrastructure Library v2 IT Infrastructure Library v3 Service Strategy Service Design Service Transition Service Operation Continual Service Improvement 3.11.2013 14 7

How Software Development is visible in IT Service Management? Functional requirements Non-functional requirements Data requirements Application Review Use case model Service Management Application Development SLA Levels Testing Application Management Lifecycle Tutorial 3.11.2013 15 UML Sequence Diagram ICSEA Tutorial 3.11.2013 16 8

Tutorial exercise Discuss the following questions in small groups: 1. Why IT companies are interested in providing IT services instead of creating software products? 2. What elements would you like to add to the IT triangle? 3. How does the application development cycle differ from a service lifecycle? ICSEA Tutorial 3.11.2013 17 Task 1: Why IT companies are interested in providing IT services? Increasing need to outsource service operations Product-based business model faces a lot of competition Customers aim at focusing on core business processes instead of managing IT ICSEA Tutorial 3.11.2013 18 9

Task 2: Information Technology Triangle Project milestones Unified Modelling Language Project Failure / Success IT/ Software Projects Project Management PRINCE2 PMBOK IT Project management Effort Estimation Work Breakdown Structures (WBS) Software Architecture Software Product Lines Product Releases IT/ Software Products Configuration Baseline Software Change Order Software Development Components Documentation IT Service Management Inception Elaboration Construction Transition IT/ Software Services Service Catalogue Service Levels Rational Unified Process Service Desk IT Infrastructure Library (ITIL) Service Incidents Tutorial 3.11.2013 19 How does the application development cycle differ from a service lifecycle? Service Lifecycle Availability Management Capacity Management Service Level Management Application Management Lifecycle Service Strategy Service Design Service Transition Service Operation Continual Service Improvement Change Management Configuration Mgmt Release Management Incident Management Problem Management Service Request Management ICSEA Tutorial 3.11.2013 20 10

Module 2: Incident management Fire fighting Incident management The primary goal of Incident Management process is to restore normal service operation as quickly as possible and minimize the adverse impact on business operations, ensure that the best possible levels of service quality and availability are maintained. Incident Management IT service management tools ICSEA Tutorial 3.11.2013 22 11

Incident management concepts Basic concepts Incident = an unplanned interruption to an IT service or reduction in the quality of an IT service Escalation = assigning the case to other teams or management Major Incident = an incident with a major impact Service Request = request from a User for information or advice, or for a Standard Change or for Access to an IT Service (f.ex. reset a password, or to provide standard IT Services for a new User) Incidents Hardware failures Software failures Service Requests 23 Examples Request type Incident Service request Example Hardware failures Connection failures (network, internet) Security breaches Email failures Application failures User rights changes Hardware orders Installation requests Requests for version updates 3.11.2013 24 12

Service Desk and Service Channels Customers Telephone SMS Web Events Automatic alerts Bug tracking software Email Single Point of Contact (SPOC) Service desk types -Global -Centralized -Local Software Engineering IT Service Management Service Desk Function Incident Management Process Application Developers Application Developers ICSEA Tutorial 3.11.2013 25 Incident management activities Source: ITIL v2 Service Support, OGC ICSEA Tutorial 3.11.2013 26 13

Incident management roles Incident Manager Drive the efficiency and effectiveness of the Incident Management process produce management information manage the work of Incident support staff (first-and second-line) monitor the effectiveness of Incident Management 1 st level specialist Recording incidents Incident solving based on workarounds available 2 nd level specialist Detailed investigation of incidents Identification of workarounds ICSEA Tutorial 3.11.2013 27 Measuring incident management performance Metrics in ITIL v3 Total numbers of Incidents (as a control measure) Breakdown of incidents at each stage Number and percentage of major incidents Mean elapsed time to achieve incident resolution or circumvention, broken down by impact code Percentage of incidents handled within agreed response time Average cost per incident Key Metrics for IT Service and Support (Gartner, 2008) Average speed to answer First-contact resolution Number of contacts per month per employee Channel delivery mix Abandonment rate Number of incidents caused by improper changes Which services and configuration items drive the most incidents ICSEA Tutorial 3.11.2013 28 14

Case: Finnish Tax Administration Case type: Government agency Number of employees: 5700 Improvement target: Incident management Problem management Core business: We will ensure the tax revenue by providing proactive guidance and good service as well as by conducting credible tax control. Our customers can contribute to their tax issues with as little cost and inconvenience as possible. 3.11.2013 29 Challenges in incident management Classification of support requests is difficult for customers Customer support is too reactive Identification of repeating incidents from the service desk system. Lack of Configuration Management Database (CMDB). 3.11.2013 30 15

Incident record Customer Service Area Tree Service Contact channel Incident (failure or error), Request (feedback), Request (improvement idea), Request (order), Request (other service request), Request (advise), Request (information/notification) Reason for contact Reported by Status Group Call back time Failure start time Closure code Failure end time Summary Description How can I get answered calls visible in software phone? The list is empty although I have answered many phone calls. 3.11.2013 31 Improving service areas Service Area Tree Three different elements identified in classification Service area: Application services Configuration item: Application Tax applications - Tax card in web Support request type: Incident A service area tree was created together with the case organization 3.11.2013 32 16

Tutorial exercise Discuss the following questions in small groups: 1. What kind of service desk experiences have you had? Identify a good service desk service and a bad service desk service. 2. What type of challenges do IT service providers have regarding the service desk & incident management? ICSEA Tutorial 3.11.2013 33 Module 3: Problem Management What is a root cause? 34 17

Main objectives Problem Management is the process responsible for managing the lifecycle of all problems. The primary objectives of Problem Management are to prevent problems and resulting incidents from happening, eliminate recurring incidents and minimize the impact of incidents that cannot be prevented. In software engineering, this process is often called defect prevention ICSEA Tutorial 3.11.2013 35 Key concepts Problem is the unknown underlying cause of one or more incidents A known error is an incident or problem for which a root cause is known and for which a temporary work-around or a permanent alternative has been identified ICSEA Tutorial 3.11.2013 36 18

Differences between software engineering and IT service management (Defects vs. problems) In Software Engineering, a software defect is any flaw or imperfection in a software work product or software process developers could directly contact the customers and vice versa In IT service management, incidents (hardware / software failures) should be first reported to the service desk. If the 1 st level and 2 nd level incident management cannot solve the case, a separate problem record should be opened. Customers s cannot directly contact the development team and interrupt their work ICSEA Tutorial 3.11.2013 37 Problem Management Activities ICSEA Tutorial 3.11.2013 38 19

Problem control and error control 1. Problem control 2. Error control Error in registrated CI Known errors from Testing and Development Change Advisory Board 3. Proactive problem management 3.11.2013 39 Benefits Benefits from problem management Better IT service quality. Permanent solutions Increased learning within the organization Better first-time fix rate in Service Desk 3.11.2013 40 20

Challenges in problem management More challenges Linking incidents to problems is difficult Lack of good metrics We have no experience in implementing a knowledge base Number of problems Number of RFCs created by PM Problem resolution time Number of workarounds 3.11.2013 41 How to make it simple It is not a problem when we havea solution. 3.11.2013 42 21

Problem Management Roles Problem Manager Improves the problem management process Reviews the efficiency and effectiveness Produces performance reports for management Allocates resources Problem Management Team Member Identifies and investigates problems Creates RFCs (Requests for Change) to solve problems Monitors the progress of Known Error resolutions 3.11.2013 43 Problem Ticket 3.11.2013 44 22

Knowledge Base article ICSEA Tutorial 3.11.2013 45 Lessons learnt from improving IT Service Problem Management Identified challenges in problem management Employees do not understand the difference between an incident and a problem There is no problem record in the IT service desk tool The organization does not have a documented problem management process Lack of a person who improves problem management No time for finding root causes. The support is always fire-fighting with increasing number of incidents 3.11.2013 46 23

Lessons learnt from improving IT Service Problem Management Discuss PM concepts with service desk, product development teams, testers, customers and other relevant stakeholders Pilot the introduction of Problem management with one team Market problem management ideology and benefits continuosly Collect improvement ideas regarding problem management to the IT service management tool 3.11.2013 47 Lessons learnt from improving IT Service Problem Management The key challenges are related to understanding concepts (Incident, Problem, Service Request, Change) and differences between them Incident and problem management as too strong processes may cause difficulties for change management Focus should be set on proactive support instead of reactive one Interfaces between problem management and incident management & change management must be crystal clear 3.11.2013 48 24

Lessons learnt from improving Problem Management Identification of problem sources is essential Incident management (incidents that reoccur, incidents that are complex) Third party service providers Testing, projects and product development (Development Known Errors) Release management Other technical specialist groups (server, network, application services) 3.11.2013 49 Tutorial exercise Discuss the following questions in small groups: 1. How would you transform the reactive support to proactive one? 2. What is the main difference between incidents and problems? 3. How would you measure the performance of problem management? ICSEA Tutorial 3.11.2013 50 25

Module 4: Change Management Management of Change or Change of Management? 51 Goals The goal of the Change management process is to ensure that standardised methods and procedures are used for efficient and prompt handling of all Changes (ITIL v2, OGC 2002) Why changes are needed? Implement problem solutions Respond to customers and users changing needs ICSEA Tutorial 3.11.2013 52 26

Key concepts In IT service management Request for Change Change categories Normal change Standard change Emergency change Major change In Software Engineering Software Change Order Categories Error correction Enhancement New feature Change Advisory Board Configuration Control Board ICSEA Tutorial 3.11.2013 53 7 Rs for change management Raised Relationship Reason Responsible Resources Return Risks 54 27

Change Management Activities ICSEA Tutorial 3.11.2013 55 Change management roles Change Manager agree with Service Management on a goal of the Change management process measure efficiency and effectiveness of change management improve change management methods and tools Change Advisory Board Assist change manager in evaluating changes Provide recommendations for implementing change Emergency Change Advisory Board ICSEA Tutorial 3.11.2013 56 28

Istekki Oy Established in 2009, operation started 1.1.2010 Owners: Northern Savo Healthcare District and City of Kuopio Provides ICMT (Information, Communication & Medical Technology) services ISO/IEC 20 000 certificate Turnover 2012 29.4 M Number of employees: 220 Figure: Infusion pumps under maintenance 2013 57 Lessons learnt from improving change management No reports implemented for change management Solution: Implement the following change management reports Number of change requests (by service area) Number of major changes Change throughput time Evaluation of changes is not visible Solution: Add new datafields to the change record in the ITSM tool Reason for change as a separate field Post-implementation review of change Change management is not measured systematically Solution: Define 3 key metrics what you can measure ICSEA Tutorial 3.11.2013 58 29

Tutorial exercise Discuss the following questions in small groups: 1. Why change management is so difficult? 2. What is the main difference between a change request and a service request? 3. How would you measure the performance of change management? ICSEA Tutorial 3.11.2013 59 Conclusion What did we learn? 60 30

Tutorial conclusion Software engineering and IT service management concepts Need for concept mapping (e.g., Software Change Order = Request for Change; Known defect = Known Error) Application Management creates a link between software development and IT service management Application developers participate in designing new or changed services ITSM improvement starts typically from incident management Problem management is a key to proactive support Change management is a complicated process due to various types of changes ICSEA Tutorial 3.11.2013 61 Attachment 1: Keys to IT Service Management Excellence Technique 1.Create a process improvement infrastructure 2. Perform a process assessment 3. Plan process improvement actions 4.Improve/ Implement the process 5. Deploy and introduce the process 7. Continuous process improvement Case Study Method Action Research Method Documentation ( process descriptions, service catalogue Archives (incident, problem, RFC and service request records) Interviews/discussions (discussions in work meetings,coffee table discussions, process manager interviews) Participative observation (field visits, process improvement meetings and workshops Physical artefacts (Service desk tools, intranet) 6. Evaluate process improvement ICSEA Tutorial 3.11.2013 62 31

Attachment 2 a: How to measure IT service management Esityksen nimi / Tekijä 3.11.2013 63 Attachment 2 b: How to measure IT service management 64 32

Thank you!!! Questions, comments? Marko Jäntti, PhD. (marko.jantti@uef.fi) School of Computing, Kuopio campus Software Engineering Research Unit, KISMET project www.uef.fi 33