ITIL Implementation ~

2006 FTA Technology Conference & Exhibition Albuquerque New Mexico August 2006
Paul Broderick Commissioner State Revenue Office Victoria Australia
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My country - Australia
Australia - States & Population

Northern Territory 0. 2M Western Australia 1.9M

Queensland 3. 8M

South Australia 1.5M

New South Wales 6. 7m ACT 0. 3M

Total Population: 20 Million [approx]

Victoria 4.9M Tasmania 0.4M 6

State Revenue Office -Victoria

My home town - Melbourne

State Revenue Office -Victoria

My football team St Kilda

State Revenue Office -Victoria

Purpose of the presentation

Share our experiences on the implementation of ITIL in the State Revenue Office (SRO) Victoria

State Revenue Office -Victoria

Agenda
Background information on the SRO Our vision Our achievements What is ITIL? ITIL processes Why did the SRO adopt ITIL Our approach The results Accreditation reality What worked well Benefits of ITIL for the SRO Negatives Q&A

State Revenue Office -Victoria

Background information
The SRO is the major revenue collection agency for the Victorian Government We administer a range of taxes, subsidies & exemptions In 2005/06 we collected $7.9 billion in revenue The SRO has 450 staff across two locations in Victoria
Melbourne Ballarat (Regional Centre)
State Revenue Office -Victoria

Our Vision

To be recognised as one of Victorias best performing organisations

State Revenue Office -Victoria

Some achievements

ISO 9001 certified (Quality Standard) Insourced IT services after 7 years of Outsourcing -Built an IT department from scratch -Saved the government $2m per annum

State Revenue Office -Victoria

Some achievements

Award winning Balanced Scorecard Reporting System Best practice risk management system & framework Gold Technology Award for our revenue management system e-Sys

State Revenue Office -Victoria

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Some achievements

Reputation for delivering IT Projects on time and on budget Australian Business Excellence Award for Information and Knowledge Management First government organisation in the world to achieve ITIL certification

State Revenue Office -Victoria

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What is ITIL?

Information Technology Infrastructure Library (ITIL) is a set of references:

developed by the UKs Office of Government Commerce describing an integrated, process based, best practice framework for managing IT Services Forms BS15000 or AS8018

State Revenue Office -Victoria

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ITIL Processes
Service Delivery
Service Level Management Financial Management (for IT) Capacity Management Service Continuity Management Availability Management

Service Support
Incident Management Problem Management Configuration Management Change Management Release Management

State Revenue Office -Victoria

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Why did the SRO adopt ITIL?

ITIL was adopted after we ended a 7 year outsourcing relationship. The driving force for insourcing was COST CONTROL CULTURE We wanted to build the best small IT shop in government.
State Revenue Office -Victoria

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Why did the SRO adopt ITIL? (cont)

We looked for best practice in IT service delivery and found ITIL Seen as a way of attracting and retaining good IT staff. ITIL certification was a natural progression of our ISO 9001 certification. SRO sees value having its procedures and processes externally reviewed and scrutinised
State Revenue Office -Victoria

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The Standard makes some bold claims!

This Code of Practice describes the best practices for service management processes these service management processes deliver the best possible service to meet an organisations business needs within agreed resource levels
State Revenue Office -Victoria

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Our approach
May 2003
Insourced all IT services using ITIL model

January 04
8 months after bedding down insourced IT services, investigated requirements to achieve ITIL certification. Certification not available under BS15000 at that time

March 04
Set goal to achieve ITIL compliance of > 80% by 30 June 2005

April 04
engaged consultant to assist

State Revenue Office -Victoria

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Our approach
1. June 04
Consultant assessed SRO ITIL readiness at 70% which was the highest rating they had assessed over last 2 years in State and Federal Govt. Initial workshops to complete gap analysis ITIL Foundation training Process owners appointed Commenced drafting ITIL processes (filling the gaps) AS8018 released (based on BS15000) Accreditation project schedule developed Project formally started
State Revenue Office -Victoria

July - September 04

October 04

November January 05

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 12 April 05
Stage 1 audit conducted by LRQA to review documentation to establish all procedures required were available, controlled and in place. Stage 2 audit conducted by LRQA to carry out an assessment of the SRO IT management system to the Standards

16 June 05

State Revenue Office -Victoria

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The results

18 week time-line from formal project start in January 05 to 1st audit.

Stage 1 audit 8 non conformances

Additional 5 weeks to continue to capture / consolidate ITIL compliant evidence and address stage 1 nonconformances This was completed with in-house resources who were still required for operational support.
State Revenue Office -Victoria

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The Results

Certification obtained for a period of 3 years

2 minor non conformances Surveillance audits every six months for 3 years

Subsequent Surveillance audits successfully completed without any non-conformances (3 conducted in 2005/06)
State Revenue Office -Victoria

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Accreditation Reality
AS8018 (Australian Standard for ITIL) is quite prescriptive Writing processes, refining documentation, gathering evidence and undertaking internal audits not a core skill of process owners Tools utilized for Service Desk, Configuration Management and Management Reporting required significant upgrade to better support the ITIL processes
State Revenue Office -Victoria

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What Worked Well

Project management focused attention on the schedule and deadline Goal was to keep processes simple
Not trying to re-invent the wheel Re-use of existing AS9001 processes Support and coaching On-going training and development

Experienced ISO internal auditor Senior management focus and commitment IT staff committed to achieving ITIL certification they wanted to be the first in Australia
State Revenue Office -Victoria

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Benefits of ITIL for the SRO

Documented IT policies and procedures to an external standard (AS8018) Greater visibility of changes Better reporting Better maintenance of in-sourced environment leading to on-going cost savings and reduced risk

State Revenue Office -Victoria

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Improved communication and information flows between IT and customers

Contact service desk for incidents / services requests

A quality approach to IT services ITIL certification has attracted staff wanting to working in a certified organisation to increase their skills
State Revenue Office -Victoria

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Negatives

Overheads in reporting requires more in-depth reporting (needs to be balanced with the benefits of more transparent reporting by IT) Frequent audits
Cost of external audits Time commitment of internal auditors

State Revenue Office -Victoria

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Some of the organisations with ITIL certification

CSC EDS GE Capital Services HP GlobalSoft IBM UK Infosys LG NEC Northrop Grumman Samsung Satyam Siemens IT Operations State Revenue Office

State Revenue Office -Victoria

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Questions?

State Revenue Office -Victoria

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