ITIL Awareness

Setting the Context

Regular and Common issues faced by the IT Service industry are

ƒ What services should we offer and to whom?

ƒ How do we differentiate ourselves from competing alternatives?
ƒ How do we truly create value for our customers?
ƒ How do we capture value for our customers?
ƒ How do we make a case for strategic investments?
ƒ How can financial management provide visibility and control over value creation?
ƒ How should we define service quality?
ƒ How do we choose between different paths for improving service quality?
ƒ How do we efficiently allocate resources across a portfolio of services?
ƒ How do we resolve conflicting demands for shared resources?
IT Service Management and ITIL Philosophy
• What is Service Management?
• Service Management is a set of specialized organizational capabilities for
providing value to customers in the form of services.
• Service Management can also be defined as a set of Functions and Processes for
managing services over their lifecycle.

ƒ Capture ‘Best Practices’ from the industry

ƒ Adopt to Adapt

ITIL Philosophy ƒ No ‘Standard’ mandate

ƒ Scalability – organization size and need
ƒ Platform independent
ƒ Continuously evolving
Where does a Best Practice fit in?

What are the requirements to be met

for benchmarking? Standard ISO 20000

What is the best way

to do it? Best Practice ITIL

How should we do it in ITIL,

a particular context? Applied Framework
MOF

How should we do it in HCL OMS

our organization? Organizational Policies and Procedures
ITIL Objectives
• Reduce Costs
• Tune Capacity
• Improve Availability
• Optimize resource Utilization
• Increase Throughput
• Improve Scalability
ITIL Benefits
itSMF survey - 70% achieving “tangible & measurable” benefits
Meta - 85% resolution on target
- cost per call down 30%
- 50% reduction in new product cycle
Proctor & Gamble - 6-8% cut in operating costs
- $125 million p.a. savings (10% of IT Budget)
- 10% reduction in ITSD calls
IDC survey - 79% reduction in downtime & other factors
- total savings per user $800 p.a.
- ROI up 1300%
Barclays - Downtime reduced from 60 to 15 mins
Utilities - 50% reduction in Incident resolution time

Provider - 30% reduction in Change implementation time

- 50% resource reduction for same throughput
European - Customer Satisfaction Index increased from (IS Organization) 6.8 to 7.6
- Reduced handling time
- 3.5m Euros savings p.a (7% of IS operating costs)
Shell Oil - $5 million savings (6000 man days) due to faster
Software upgrades in less than 72 hours.
Background of ITIL

ITIL
¾ Collection of Best Practices for IT Service Management
¾ First published by UK government in late 1980’s

ITIL ¾ Maps to other industry frameworks & standards such

as COBIT and ISO 20000
¾ Updated to V2 in 2000 / 2001
¾ Updated to V3 in 2007

BS 15000
ISO 20000 (BS15000)
¾ BS 15000 is a 2 part British standard derived from ITIL
ISO 20000
¾ ISO 20000 is the international version of BS15000
¾ ISO 20000 is the specification for IT service
management against which an organization’s actual
practices can be certified
ITIL History

• ITIL V1 - Published between 1989 & 1995 by OGC (Office of

Government Commerce)
– 31 associated books covering all aspects of IT service provision.
– Significant contributions from hp, IBM and others.
• ITIL V2 – Published between 2000 & 2004
– 8, more closely connected and consistent books consolidated by an
overall framework.
• ITIL V3 – Published in 2007
– Enhanced and consolidated, consisting of 5 core books covering the
service lifecycle, together with the Official Introduction.
ITIL V2 – IT Service Management

Service Desk
Service Support
Incident Management

Service Level Management Problem Management

Capacity Management Configuration Management

Availability Management Change Management

Service Continuity Management Release Management

Financial Management Service Delivery

ITIL V3 Framework

• The ITIL V3 framework contains the following books

• Official Introduction
• Service Strategy
o Service Strategy to meet the Customers needs

• Service Design
o Analysis of Business requirements and a Service design that is aligned to the Strategy

• Service Transition
o Migration of the Service into the live environment

• Service Operation
o Live day-to-day operation of the Service

• Continual Service Improvement

o Continual improvement of the Service
Leveraging on Industry best practices, Models and Standards

BPR,
ISO27001 Six Sigma
Business Process

Project Management
Information Security Application/Product

CMMI Dev,
Application Development
ISO 9001

Application Maintenance

ITIL
Infra
PMP ISO20000
Prince2 IT Service Management

• IEEE Standards cover most of the above aspects

• There are multiple other ISO standards, CMM Models and Regulatory requirements impacting IT Mgmt
ITIL V3 - The Service Life Cycle

‰ Why ITIL V3 is a lifecycle

representation?
‰ B’Coz ITIL V3 focuses on
Business IT alignment &
integration

Five stages of IT service lifecycle are

‰ Service Strategy
‰ Service Design
‰ Service Transition
‰ Service Operation
‰ Continual Service Improvement
ITIL V3 – Process Architecture
Managing with the lifecycle
Requirements The Business Customer

Service
SLPs from 
Strategy Resource and  Requirements
Policies constraints
Strategies

Service
Design SDP’s
Standards
Architectures
Solution Design

Service
Transition SKMS Updates
Tested Solutions
Transition Plans

Service Operational 
Operations Services
Operational Plans

Continual 
Service  Improvement 
Improvement actions & plans
Service and Service Management
• 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.

• ‘Service Management’ is a set of specialized organizational

capabilities for providing value to customers in the form of services.
Service Strategy Processes
Service Portfolio
Strategy Generation Financial Management Demand Management
Management

• 4 P’s of Strategy
• Perspective, Position, Plan, Pattern
• Competition and Market Space – Internal or External
• Service Value – Utility & Warranty
• Service Provider Types - I, II & III
• Service Management as a Strategic Asset – resources & capabilities
• Critical Success Factors
• Service Oriented Accounting
• Service Provisioning Models – Managed, Shared & Utility
• Organization Design and Development
• Service Level Package (SLP)
Service Strategy- Principles

Service Value
ƒ Defined in terms of the customer perceives business outcomes
ƒ Described in terms of the combination of two components ‘Utility’ and ‘Warranty’

Utility: Warranty: Value Creation

‘What the Customer gets’
Utility is measured on the basis of
number of key ‘outcomes supported’
and ‘constraints removed’
+
‘How is it delivered’
Warranty is measured in terms of
the level of Availability, Capacity,
Continuity and Security
= The basis of differentiation
in Market Space
Service Portfolio Management- Overview
Demand Management- Overview

Capacity
Management Plan
Overview of Budgeting and Accounting
Service Strategy- Service Model
• Service Model is a representation of the components that constitute a service.
• It is used to support design and analysis.
• Service Models describes structure and dynamics of service.

(Structure)

Service
Service Configuration
Configurationofof
Model
Model Service
ServiceAssets
Assets

Activities,
Activities,events
events Service
Service
and interactions
and interactions Operation
Operation

(Dynamics)
Service Design Processes
Service Catalogue Service Level Capacity Availability
Management Management Management Management

• 4 P’s of Design
• People, Products, Processes, Partners
• Business requirements collection, analysis and engineering
• Design & development of service solutions, technology, processes,
information and measurements
• Production and maintenance of policies and design documents
• Liaison with all other design and planning activities and roles
• Risk Management of all services and design processes
• Alignment with corporate IT strategies and policies
• Service Design Package (SDP)
IT Service Continuity Information Security Supplier
Management Management Management
Service Design
Service Catalog Management

ƒ Service Catalogue Management: To ensure that a Service Catalogue

is produced and maintained, containing accurate information on all
operational services and those being prepared to be run operationally.

ƒ To create and manage Service Catalogue

ƒ A single source of information of all services

ƒ To ensure that information provided in service catalogue is accurate and

reflects the current details
Service Level Management– Fulcrum
Quality IT Services
Customer

Budget, Requirements
SLM
Performance
Disaster

Availability Mgmt Incident Mgmt

Availability
Cost,
Capacity Mgmt Problem Mgmt
Performance
Continuity Mgmt Recovery
Change Mgmt
Finance Mgmt
Release Mgmt RFCs - Improvement

Change Mgmt
Service Level Management– Concepts
Multi-level SLAs
Corporate Level
All issues that apply to all customers or all services

Customer Level
All issues that apply to this customer for
all the services used

Service Level
Service specific issues
(one per service)
Service Level Management– Concepts
SLA Support Structure
Customers

Service A Service B Service C

IT Applications / Products / IT Infrastructure

Service Level Agreement

Operational Level Agreements Underpinning Contracts

Internal Organizations External Organizations

Service-based SLA Structure: Where an SLA covers one service for all customers
Customer-based SLA Structure: Different SLAs with different customers
Capacity Management Focus
Business requirement focus
Current Services delivery focus
Understand Business Understand IT
needs services, resource
Plan and implement usage and variations
capacity buildup Ensure SLAs are met

Inputs: Inputs:
SLAs SLAs
Business plans Service and systems
Capacity Plan throughput and
Modeling Business Capacity Mgmt Service Capacity Mgmt performance
Application sizing Monitoring,
measurement,
analysis, tuning and
demand mgmt

Resource Capacity Mgmt

Technology component focus
Understand Utilization of IT components
Optimize usage of IT Components

Inputs:
Current technology and utilization,
Alternatives, Resilience
Capacity Management Activities
Capacity
Data Storage

Business Business
Capacity Management Utilization
Performance
Management
Service
Service Monitor Utilization
Capacity Management
Analysis Demand
Management Modeling
Tuning Technical
Resource
Trend Analysis Application Utilization
Capacity Management
Implement
Sizing

Capacity CDB
Ongoing activities
Plan
Adhoc / Need basis
Availability Management Process
IT Service Management - Availability
Availability Management – Incident Lifecycle
IT Service Continuity Management - Lifecycle

Lifecycle Key Activities

Business Continuity
• Policy Setting
Management (BCM)
Initiation
• Scope
• Initiate a Project

Business • Business Impact Analysis

Requirements
Continuity and strategy
• Risk Assessment
Strategy • IT Service Continuity Strategy

• Develop IT Service Continuity Plans

Business • Develop IT plans, recovery plans
Implementation
Continuity and procedures
Plans
• Organization Planning
• Testing Strategy

• Education, awareness and training

Invocation On going • Review and audit
Operation
• Testing
• Change Management
Risk Management for Information Security
Supplier Management – Inputs & Outputs
Inputs

Business information Outputs

Supplier and contracts strategy

Supplier Management
Supplier and Contracts Database
Supplier plans and strategies
(SCD)
Supplier contracts, agreements
Supplier and contract
and targets
performance information
and reports
Supplier and contract
performance information
Supplier and contract review
meeting minutes
IT information
Supplier Service Improvement
Performance issues
Plans
Financial information
Supplier survey reports
Service information

CMS
Service Transition Processes
Transition Planning & Release & Deployment Service Validation
Evaluation
Support Management & Testing

• Understanding all services, their utility & warranties

• Establishing a formal policy and common framework for implementation of
all required changes
• Supporting knowledge transfer, decision support and re-use of processes,
systems and other elements
• Anticipating and managing ‘course corrections’
• Ensuring involvement of Service transition and Service transition
requirements throughout the service lifecycle

Service Asset &

Change Management Knowledge Management
Configuration Management
Service Transition - Scope
Transition Planning & Support Process workflow
Scope of Change Management

Change management ensures that all changes are recorded, managed, tested and
implemented in a controlled manner
Change Management process flow

Closed
Figure : Process Flow for Normal Change
SACM – Process Workflow
Planning, management, resources, time
management support working relationship,
resources, facilities, CMS and tools Training Provides a logical view of assets and resources
and guidance
Policy,
standards,
strategy,
service Configuration
portfolio, Management Control
management
contract & Planning plan and contract
portfolio,
contract
requirement CIs identification,
Requirements naming, labeling,
Design,
Configuration data &
Maintenance, documentation
release, Identification
Baseline and
Deployment, release id
Operations plan

Configuration Updated RFC,

RFC/Change to Updated CI
Control
CI

Status
Status Record/Report
Change and
Configuration
Accounting & Configuration
Reporting information &
Records and Performance
Documentation
Baseline Report

Verification
Physical CIs,
Test results
& Audit
Audit/recovery Action items
tools confidence in
Audit Checklist service and
Feedback infrastructure
Release & Deployment Management – Inputs, Activities, Outputs
Release & Deployment Management – Activities
Development Controlled Test Live
Environment Environment Environment

Release Management

Design and
Build and Fit-for- Communication
Release Release Develop, or order Release Roll-out Distribution
Configure Purpose Preparation
Policy Planning and purchase the Acceptance planning + installation
the Release testing Training
software

Configuration Management Database (CMDB)

and
Definitive Media Library (DML)
Config, Change and Release Management
Service V Model – Levels of Testing
Using V-Model, Service Validation and Testing builds early in the Service Lifecycle. It provides a
framework to organize the levels of configuration items to be managed through the lifecycle and
the associated validation and testing activities both within and across stages

Define
Define Service Review Criteria / Plan Validate
Level 1 Validate Service
Service
Customer/Business
Customer/Business Package
Package offerings
offerings
requirement Contracts, Service Packages, SPI
requirement && contracts
contracts
1a
1b
Service Acceptance criteria/plan
Level 2 Define
Define Service
Service
Service
Service Requirements
Requirements - SLR, Acceptance
Acceptance Test
Test
- Draft SLA
2a Service Operational criteria / plan
2b

Level 3 Design
Design Service
Service
Service SDP including - Service Model
Service Solution
Solution Operational
Operational Test
Test
- Capacity & Resource plans
3a 3b
Service Release Test
criteria & plan
Level 4 Design
Design Service
Service Release
Release
Service
Service Release
Release - Release Design
package
package Test
Test
- Release plan
4a
4b

Level 5 Develop
Develop Component
Component
Service
Service solution
solution &
& Assembly
Assembly Test
Test
5a 5b
Service
Levels of component
Configuration & Build & Test
Testing
Deliveries from
internal & external
BL
Baseline
suppliers
Point Internal & external
supplier

45
Figure - Service V Model
Knowledge Management – Service knowledge Management System
(SKMS)
Service Operation Processes & Functions

• Common activities in addition to processes

• Monitoring and Control
• Console management / Operations bridge
• Management of the Infrastructure
• Operational aspects of processes from other lifecycle stages
• Key Functions
• Service Desk Function
• Technical Management Function
• Application Management Function
• IT Operations Management Function
Service Operation
Service Management Functions

ƒ Technical Management: Provides technical expertise & management of the IT Infrastructure

ƒ Application Management: Provides technical expertise and manages development of requirements, analysis, Design,
Testing and improvement of applications
ƒ IT Operations Management
ƒ Operations Control : Console Mgmt, Job scheduling, Backup & Restore and Print Mgmt
ƒ Facilities Mgmt : Data centres, recovery centres, contracts
ƒ Operations Bridge : physical centre for monitoring and managing IT services and infrastructure
ƒ NOC: physical centre for monitoring and managing Networks
Service Desk
ƒ Service Desk: To restore ‘normal service’ to the users as quickly as
possible.
ƒ To act as the single point of contact (SPOC) between users and IT
organization. The service desk also acts as a first line support to the user.
ƒ To log and categorize Incidents, Service Requests and some standard
categories of change.
ƒ To perform the first line investigation and diagnosis.
ƒ To communication with users and IT staff.
ƒ To ensure closure of incidents.
ƒ To contribute to an continuous increase in Overall Customer Satisfaction.
ƒ To update the Configuration Management (if so agreed) Database with
incident, requests, standard changes information
Service Desk – L1 and L2 Example
Service Desk – Types
LOCAL SERVICE DESK : To meet local business needs – CENTRALIZED SERVICE DESK: For organizations having multiple
Desk is co-located within or physically close to the user locations - reduces operational costs and improves usage of available
community it serves resources

Customer Site 1 Customer Site 2 Customer Site 3

Service Desk
Service Desk
Service Desk
Service Desk
Second Line Support
Second Line Support

Technical Application IT Operations 3rd Party Request Technical Application IT Operations 3rd Party Request
Technical Application IT Operations 3rd Party Request Technical Application IT Operations 3rd Party Request
Management Management Management Support Flfillment Management Management Management Support Fulfillment
Management Management Management Support Flfillment Management Management Management Support Fulfillment

VIRTUAL SERVICE DESK: For organizations having multi-

–
country locations - can be situated and accessed from FOLLOW THE SUN
anywhere in the world due to advances in network
For organizations having multiple locations – Handling the call during the standard
performance and telecommunications
working hours of a country and gets transferred to another country to provide a 24 hour
follow-the-sun service.
San Francisco
Service Desk
This can give 24 hour coverage generates relatively low cost, as no desk has to work
Beijing Service
more than a single shift. However, the same safeguards of common processes, tools,
Paris
Desk shared database of information and culture must be addressed for this approach to
Service
Desk
proceed - and well-controlled escalation and handover processes are needed.
Virtual
Service Desk – SPECIALIZED SERVICE DESK GROUPS
The 'specialist groups‘ created within the overall Service Desk structure of an
organization, so that incidents relating to a particular IT service can be routed directly to
London Sydney the specialist group. This allows faster resolution of these incidents, through greater
Service Desk Service Desk
Service
Knowledge
familiarity and specialist training.
Managemen
t System
Events and Requests
ƒ Event Management: Exceptions, Warning or Information
Detect events, make sense of them and determine appropriate control action is
provided by Event Management.
ƒ Event management is the basis for operational monitoring and control.
ƒ To be focused on generating and detecting meaningful notifications about the
status of the IT Infrastructure and service.
ƒ To work with occurrences that are specifically generated to be monitored.
ƒ To monitor occurrences, and look for conditions that do not generate events.

ƒ Request Fulfillment:
ƒ To provide a channel for users to request and receive standard services for which
approval and qualification process exists.
ƒ To provide right information to users and customers about the availability of
existing services and the procedure for obtaining them.
ƒ To source and deliver the components of requested standard services (e.g.
licenses and software media).
ƒ To assist with general information, complaints or comments.

ƒ Access Management: Access Management provides the right for users to be able to use
a service or group of services.
ƒ To enable users to use a service or group of services while protecting against unauthorized
access.
ƒ To execute the policies and actions defined in Security and Availability Management.
Incident Management
ƒ Incident Management:
ƒ To restore the normalcy of service as quickly as possible (definitely with in the
SLAs) with minimal effect on business operations.
ƒ To deal with resolution of incidents consistently.
ƒ To provide information for improvement of processes and systems, so that the
overall occurrence or recurrence of incidents are reduced.
ƒ To ensure that the best possible levels of service quality and availability are
maintained.
Incident Management
Incident Management
Problem Management
ƒ Problem Management: Problem Management is the process responsible for
managing the lifecycle of all problems. The primary objectives are of Problem
Management are to prevents problems and resulting incidents from happening, to
eliminate recurring incidents and to minimize the impact of incidents that cannot be
prevented.
Problem Management
Problem Management
Typical interaction flow
Continual Service Improvement
What is the Business Vision,
Vision? Mission, Goals & Obj

Where are we Baseline

Now? Assessments

How do we keep Where do we Measurable

the momentum going Want to be? Targets

How do we Service and

get there? Process improvement

Did we Measurement
Get there? And metrics

ƒ Review and analyze Service Level Achievement results.

ƒ Review, analyze and make recommendations on improvement opportunities in each
lifecycle phase – Service Strategy, Service Design, Service Transition and Service
Operation.
ƒ Improve cost effectiveness of delivering IT Services without sacrificing customer
satisfaction.
ƒ Ensure applicable Quality management methods are used to support continual
improvement activities.
Continual Service Improvement

7 – Step Continuous Improvement Process

ISO 20000 Processes
Comparison between ITIL and CMMI
ITIL V3
Focus on Service Management addressing
IT Operations and Services
Addresses IT operations issues such as
Security, Change, Configuration
Management, Capacity Planning and
Service Desk functions
Is a framework for the operations and
infrastructure side of IT
Talks “Service” language
No formal assessment or audit, and no
maturity levels
Personal competency certifications
Practitioner forum driven
CMMI Dev 1.2
Focus on Software Development,
integration, deployment and maintenance
Model is geared specifically for software
development organizations and focus on
continuous improvement
Is the de facto quality standard for software
development processes
Talks “Project” language
Formal assessment as per SCAMPI
methodology monitored by SEI
No personal competency certifications
University driven
OMS Compliance to ISO 20000 and ITIL

Relationships: ISO 20000, ITIL and In-house Processes

Achieve
ISO20000-1
this
Specification

ISO20000-2
Management
Overview
Code of Practice

ITIL Process
(IT Infrastructure Library) Definition

In House
Deployed
Processes (OMS) Solution
OMS : IT Service Management Framework
Case : AMD
• Improved Client Satisfaction
– Robust CSAT measurement and Continuous improvements based on Survey feedbacks
– Survey respondents increased from 4% to 20%
– CSAT increased from 88% to 96% and continuously improving

• Standardization of Service levels

– Service based SLAs rather than component based SLAs
– Consistency in Service delivery

• Service Quality Enhancement

– Improved SLAs and Staff productivity – Resolution time from 4.2 days to 1.2 days
– Monitoring Tickets rejections, Ticket hops
– Reduction in Incidents due to RCA (Root Cause Analysis)

• Integrated Event Management

– Pro-active Management – a key for Remote Infrastructure Management
– Reduction in Incidents in specific areas due to Root Cause Analysis (35 to 10 per month in one
track (Metaframe))

• Right Skill-ing
– Clear definition of L1, L2 and L3 roles
– Optimal role assignments and utilization of the staff resulting in cost savings
 Case : AMD
Average Resolution Time
Avg Time to Resolve (D)

5 Improved SLAs
4 Reduced average Resolve time
for Service Requests from 4.2
3
days to 1.2 days
2

3
1
5
1

1
1
Month

Reduced
Incidents
No. of incidents in
Metaframe
environment reduced
from 35 to 10
incidents/month
Case : Banking client