ITIL Study Guide

V3.1.0.
cover
Front cover
ITIL (IT Infrastructure Library)

Foundation
(Course Code SM25)
Student Notebook
ERC 1.0
IBM Certified Course Material
Student Notebook
Trademarks
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September 2004 Edition

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Copyright International Business Machines Corporation 2004. All rights reserved.
This document may not be reproduced in whole or in part without the prior written permission of IBM.
Note to U.S. Government Users Documentation related to restricted rights Use, duplication or disclosure is subject to restrictions
set forth in GSA ADP Schedule Contract with IBM Corp.
V3.1.0.1
Student Notebook
TOC
Contents
Course Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi
Agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii
Course Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv
ITIL Foundation Course: IT Infrastructure Library Overview . . . . . . . . . . . . . . . . . . .xvi
ITIL Foundation Course: Objectives and Contents of the Course . . . . . . . . . . . . . . xvii
ITIL Foundation Course: ITIL Defines a Three-Tiered Structure of Certification Training
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xviii
ITIL Foundation Course: Process Chart Reference . . . . . . . . . . . . . . . . . . . . . . . . .xix
Unit 1. What ITIL Is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-1
Unit 01: What ITIL is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-2
What ITIL is: ITIL: de facto standard for service management built on industry best
practice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-3
What ITIL is: Main characteristics of ITIL are: IT services are business-oriented, and
provision of quality customer service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-5
What ITIL is: Originally created by the UK's Central Computer and Telecommunications
Agency (CCTA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-6
What ITIL is: The BSI roadmap to make ITIL a standard for service management 1-7
What ITIL is: ITIL is a library of books that aim to describe best practices for IT
infrastructure management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-9
What ITIL is: The ITIL books describe best practices in IT management, with a special
focus on service management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-10
Most people think of ITIL as service support, but the increasing popularity of ITIL should
be leveraged against a broader spectrum of services . . . . . . . . . . . . . . . . . . . . . . 1-12
What ITIL is: Service management focuses on the tactical and operational processes
of service support and service delivery and their relationships, including security
management (separate ITIL book) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-13
What ITIL is: ITIL processes in service support represent many of the reactive
processes within IT operations (operational) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-14
What ITIL is: Service Delivery focuses on what service the business requires in order
to provide adequate support to the business users (tactical) . . . . . . . . . . . . . . . . 1-15
What ITIL is: Service support process (operational processes) relationships and their
interaction with the CMDB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-16
What ITIL is: Service delivery process (tactical processes) relationships . . . . . . . 1-17
What ITIL is: Other ITIL books . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-18
What ITIL is: Customers across the globe are asking more and more about ITIL 1-19
What ITIL is: ITIL implementation: Adopt and Adapt . . . . . . . . . . . . . . . . . . . . . . . 1-20
Unit 2. Process Implementation Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1
Unit 02: Process Implementation Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-2
Process Implementation: What is a process? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-3
Copyright IBM Corp. 2004
Contents
Course materials may not be reproduced in whole or in part
without the prior written permission of IBM.
iii
Student Notebook
Process Implementation: A process flows across the organizational hierarchies within

a company and sometimes flows across company boundaries . . . . . . . . . . . . . . . .2-4
Process Implementation: Why do we need processes? . . . . . . . . . . . . . . . . . . . . . .2-5
Process Implementation: What are the benefits? (1) . . . . . . . . . . . . . . . . . . . . . . . .2-6
Process Implementation: Mission-critical changes or reorganizations within an IT
corporation require new processes or needs to improve existing processes . . . . . .2-9
Process Implementation: Continuous processes improvement is also a trigger . .2-10
Process Implementation: Why implement service management? . . . . . . . . . . . . .2-11
Process Implementation: Service and Process . . . . . . . . . . . . . . . . . . . . . . . . . . .2-12
Process Implementation: Service, Process, Procedure, and work instructions . . .2-13
Process Implementation: Project Management . . . . . . . . . . . . . . . . . . . . . . . . . . .2-14
Process Implementation: Factors who will influence the success of an ITSM project
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-15
Process Implementation: People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-16
Process Implementation: Each task within a process is executed by a role . . . . . .2-17
Process Implementation: ITSM Project (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-18
Process Implementation: ITSM Project (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-19
Process Implementation: From the above model, 5 phases of a ITSM project are
definable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-20
Process Implementation: Ongoing quality improvement . . . . . . . . . . . . . . . . . . . .2-21
Process Implementation: Communication Plan . . . . . . . . . . . . . . . . . . . . . . . . . . .2-22
Process Implementation: Global Consideration . . . . . . . . . . . . . . . . . . . . . . . . . . .2-24
Process Implementation: Process Description . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-25
Process Implementation: High-Level Design of a Process . . . . . . . . . . . . . . . . . . .2-26
Process Implementation: A Process Implementation considers both an initial process
design and an improvement of the existing environment . . . . . . . . . . . . . . . . . . . .2-27
Process Implementation: A review is important for quality assurance . . . . . . . . . .2-28
Process Implementation: A review is important for quality assurance . . . . . . . . . .2-29
Process Implementation: Critical success factors . . . . . . . . . . . . . . . . . . . . . . . . .2-31
Process Implementation: Possible problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-32
Process Implementation: Project costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-33
Unit 3. Service Desk (SPOC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1
Unit 03: Service Desk (SPOC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-2
Service Desk: Integration into the IPW Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-3
Service Desk: The Service Desk is the Single Point of Contact [SPOC] between the
users and the IT Services Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-4
Service Desk: Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-5
Service Desk: The Service Desk is traditionally seen as a group of specialists who have
the required knowledge to process any kind of request or incident . . . . . . . . . . . . .3-6
Service Desk: The Importance of the Service Desk . . . . . . . . . . . . . . . . . . . . . . . . .3-7
Service Desk: Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-8
Service Desk: Service Desk Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-9
Service Desk: Service Desk Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-10
Service Desk: Processes within the Service Desk . . . . . . . . . . . . . . . . . . . . . . . . .3-11
Service Desk: Inputs and Outputs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-12
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Service Desk: There are 3 Service Desk Types (1): the Local Service Desk . . . . 3-13
Service Desk: There are 3 Service Desk Types (2): Central Service Desk . . . . . 3-14
Service Desk: There are 3 Service Desk Types (3): Virtual Service Desk . . . . . . 3-15
Service Desk: User empowerment (self-help) enhances customer satisfaction while
lowering support cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-16
Service Desk: A crucial success factor is standardized working methods . . . . . . 3-17
Service Desk: Setting up a Service Desk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-18
Service Desk: Benefits and Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-19
Service Desk: Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-20
Service Desk: Best Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-21
Service Desk: Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-22
Unit 4. Incident Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-1
Unit 04: Incident Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-2
Incident Management: Integration into the IPW Model . . . . . . . . . . . . . . . . . . . . . . 4-3
Incident Management: Mission statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-4
Incident Management: Definition: Incident, Problem and Known Error . . . . . . . . 4-5
Incident Management: Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-6
Incident Management: Activity incident handling . . . . . . . . . . . . . . . . . . . . . . . . . . 4-7
Incident Management: The status of an incident reflects its current position in its
lifecycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-8
Relationship with other IT services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-10
Incident Management: Use of standard registration, documentation, and methods is
basis of success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-11
Incident Management: Classification: Find service affected, match against SLA, and
assign priority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-12
Incident Management: Priority order for handling incidents is primarily defined by
impact and urgency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-13
Incident Management: Each priority is related to a certain recovery time . . . . . 4-14
Incident Management: This results in an appropriate escalation . . . . . . . . . . . 4-15
Incident Management: Escalation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-17
Incident Management: Escalation Trigger and Measures . . . . . . . . . . . . . . . . . 4-18
Incident Management: Escalation Escalation Levels . . . . . . . . . . . . . . . . . . . . . 4-19
Incident Management: Escalation Example of an Escalation Matrix . . . . . . . . . 4-20
Incident Management: Input and Output . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-21
Incident Management: Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-22
Incident Management: Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-23
Incident Management: Best Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-24
Incident Management: Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-25
Unit 5. Problem Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-1
Unit 05: Problem Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-2
Problem Management: Integration into the IPW Model . . . . . . . . . . . . . . . . . . . . . . 5-3
Problem Management: Mission statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-4
Problem Management: Some definitions: Problem, Known Error, and RFC . . . . . . 5-5
Problem Management: Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-6
Problem Management: Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-8
Problem Management: Activity: Problem Control . . . . . . . . . . . . . . . . . . . . . . . . . . 5-9
Contents
Student Notebook
Problem Management: Activity: Error Control . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-10

Problem Management: Activity: Proactive Problem Management . . . . . . . . . . . . .5-11
Problem Management: Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-12
Problem Management: Reactive - Proactive . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-13
The Complete Picture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-14
Problem Management: Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-15
Problem Management: Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-16
Problem Management: Best Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-17
Problem Management: Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-18
Unit 6. Change Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-1
Unit 06: Change Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-2
Change Management: Integration into the IPW Model . . . . . . . . . . . . . . . . . . . . . . .6-3
Change Management: Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-4
Change Management: Some definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-5
Change Management: Why Change Management is so important . . . . . . . . . . . . .6-7
Change Management: Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-8
Change Management: The Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-9
The Process Steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-10
Change Management: Content of a Request for Change (RFC) . . . . . . . . . . . . . .6-11
Change Management: Categorization: Minor Significant Major . . . . . . . . . . . .6-13
Change Management: Prioritization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-14
Change Management: Composition of the Change Advisory Board (CAB) should reflect
user, customer, and service provider view . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-15
Change Management: Optimization can be reached through correlation of RFCs on
related CIs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-16
Change Management: Interfaces to other SM processes (1) . . . . . . . . . . . . . . . . .6-17
Change Management: Interfaces to other SM processes (2) . . . . . . . . . . . . . . . . .6-18
Change Management: Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-19
Change Management: Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-20
Change Management: Best Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-21
Change Management: Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-22
Unit 7. Configuration Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-1
Unit 07: Configuration Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-2
Configuration Management: Integration into the IPW Model . . . . . . . . . . . . . . . . . .7-3
Configuration Management: Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-4
Configuration Management: Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-5
Configuration Management: Definition: Configuration Item . . . . . . . . . . . . . . . . . . .7-6
Configuration Management: Definition: Configuration Item Scope and Level of Detail
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-7
Configuration Management: Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-9
Configuration Management: Configuration Management Database (CMDB) Structure
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-11
Configuration Management: CMDB Status of CI . . . . . . . . . . . . . . . . . . . . . . . . .7-12
Configuration Management: Interfaces with all other processes . . . . . . . . . . . . . .7-13
Configuration Management: Relationship with Release and Change Management
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-15
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Configuration Management: CIs and their relations to other processes . . . . . . . .

Configuration Management: Variant and Baseline . . . . . . . . . . . . . . . . . . . . . . . .
Configuration Management: Licence Management . . . . . . . . . . . . . . . . . . . . . . . .
Configuration Management: Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Configuration Management: Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Configuration Management: Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Configuration Management: Best Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Configuration Management: Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7-16
7-17
7-18
7-19
7-20
7-21
7-23
7-24
Unit 8. Release Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-1

Unit 08: Release Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-2
Release Management: Integration into the IPW Model . . . . . . . . . . . . . . . . . . . . . . 8-3
Release Management: Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-4
Release Management: Goal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-5
Release Management: Why Release Management . . . . . . . . . . . . . . . . . . . . . . . . 8-6
Release Management: Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-7
Release Management: Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-8
Release Management: Major Activities of Release Management . . . . . . . . . . . . . . 8-9
Interactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-11
Release Management: DSL and DHS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-12
Release Management: Software Release . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-13
Release Management: Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-16
Release Management: Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-17
Release Management: Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-18
Release Management: Best Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-19
Release Management: Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-20
Unit 9. Service Level Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-1
Unit 09: Service Level Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-2
Service Level Management: Integration into the IPW Model . . . . . . . . . . . . . . . . . 9-3
Service Level Management: Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-4
Service Level Management: Why Service Level Management . . . . . . . . . . . . . . . . 9-5
Service Level Management: SLM Balance service capabilities and service
requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-6
Service Level Management: Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-7
Service Level Management: Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-8
Service Level Management: Service Level Management Activities . . . . . . . . . . . . 9-9
Service Level Management: Manage relationship with customers and suppliers
(internal and external) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-10
Service Level Management: Different points of view: Communication . . . . . . . . . 9-11
Service Level Management: Content of a Service Level Agreement (SLA) . . . . . 9-12
Service Level Management: Service Level Agreement (SLA) Basic Structure . 9-13
Service Level Management: Service Level Agreement (SLA) Legal Contents . 9-14
Service Level Management: Elements of a Service Spec Sheet . . . . . . . . . . . . . 9-15
Service Level Management: Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-16
Service Level Management: Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-17
Service Level Management: Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-18
Service Level Management: Best Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-19
Contents
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Service Level Management: Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-20

Unit 10. Availability Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10-1
Module 10: Availability Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10-2
Availability Management: Integration into the IPW Model . . . . . . . . . . . . . . . . . . .10-3
Availability Management: Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10-4
Availability Management: Definitions (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10-5
Availability Management: Definitions (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10-6
Availability Management: Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10-7
Availability Management: Inputs and Outputs . . . . . . . . . . . . . . . . . . . . . . . . . . . .10-8
Availability Management: Uptime, Downtime, and Availability . . . . . . . . . . . . . . . .10-9
Availability Management: Availability Measurements (1) . . . . . . . . . . . . . . . . . . .10-11
Availability Management: Availability Measurement (2) . . . . . . . . . . . . . . . . . . . .10-12
Availability Management: Availability Measurement Example (3) . . . . . . . . . . . .10-13
Availability Management: Risk Management is also an aspect of availability . . .10-14
Availability Management: Availability Reporting . . . . . . . . . . . . . . . . . . . . . . . . . .10-16
Availability Management: Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10-18
Availability Management: Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10-19
Availability Management: Best Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10-20
Availability Management: Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10-21
Unit 11. Capacity Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-1
Unit 11: Capacity Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11-2
Capacity Management: Integration into the IPW Model . . . . . . . . . . . . . . . . . . . . .11-3
Capacity Management: Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11-4
Capacity Management: Why Capacity Management? . . . . . . . . . . . . . . . . . . . . . .11-5
Capacity Management: Capacity Management has three sub-processes . . . . . . .11-6
Capacity Management: Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11-8
Capacity Management: Input & Output . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11-10
Capacity Management: Iterative Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11-11
Capacity Management: Capacity Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11-12
Capacity Management: Capacity Database . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11-14
Capacity Management: Benefits and Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11-16
Capacity Management: Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11-17
Capacity Management: Best Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11-20
Capacity Management: Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11-21
Unit 12. Financial Management for IT Services . . . . . . . . . . . . . . . . . . . . . . . . 12-1
Unit 12: Financial Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-2
Financial Management: Integration into the IPW Model . . . . . . . . . . . . . . . . . . . . .12-3
Financial Management: Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-4
Financial Management: Why Financial Management for IT Services (1) . . . . . . . .12-5
Financial Management: Why Financial Management for IT Services (2) . . . . . . . .12-6
Financial Management: Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-7
Financial Management: Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-8
Financial Management: Process Budgeting and Accounting Activities (mandatory)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-10
Financial Management: Process Charging (optional) . . . . . . . . . . . . . . . . . . . .12-11
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Financial Management: Cost Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Financial Management: Cost Classification . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Management: Costs types Example: Printing a report . . . . . . . . . . .
Financial Management: Example of IT Accounting . . . . . . . . . . . . . . . . . . . . . . .
Financial Management: Links to other processes . . . . . . . . . . . . . . . . . . . . . . . .
Financial Management: Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Management: Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Management: Best Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Management: Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12-12
12-14
12-17
12-18
12-19
12-21
12-22
12-24
12-25
Unit 13. IT Service Continuity Management (ITSCM) . . . . . . . . . . . . . . . . . . . . 13-1

Unit 13: IT Service Continuity Management (ITSCM) . . . . . . . . . . . . . . . . . . . . . . 13-2
ITSCM Management: Integration into the IPW Model . . . . . . . . . . . . . . . . . . . . . . 13-3
ITSCM: Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-4
ITSCM: Why ITSCM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-5
ITSCM: Definitions: Business Continuity Management (BCS) and ITSCM . . . . . . 13-6
ITSCM: Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-7
ITSCM: Continuity Management Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-8
ITSCM: Risk of events that can cause disaster . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-9
ITSCM: Some events that have caused problems . . . . . . . . . . . . . . . . . . . . . . . 13-10
ITSCM: Risk Analysis as part of BCM Requirements definition . . . . . . . . . . . . . 13-11
ITSCM: The continuity strategy involves the selection of recovery options . . . . 13-12
ITSCM: Continuity Plan Invocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-14
ITSCM: Test and Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-15
ITSCM: Benefits and Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-16
ITSCM: Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-18
ITSCM: Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-19
Unit 14. Security Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-1
Unit 14: Security Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-2
ITSCM Management: Integration into the IPW Model . . . . . . . . . . . . . . . . . . . . . . 14-3
Security Management: Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-4
Security Management: Definitions: CIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-5
Security Management: Why Security Management? . . . . . . . . . . . . . . . . . . . . . . 14-6
Security Management: Information Security Incident . . . . . . . . . . . . . . . . . . . . . . 14-7
Security Management: Security Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-8
Security Management: Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-9
Security Management: Process- Input from Customer . . . . . . . . . . . . . . . . . . . . 14-10
Security Management: Process Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-11
Security Management: Process SLA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-12
Security Management: Process Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-13
Security Management: Process Implement . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-14
Security Management: Process Evaluate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-15
Security Management: Process Maintain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-16
Security Management: Process Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-17
Security Management: Level of measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-18
Security Management: Benefits and Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-19
Security Management: Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-20
Contents
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pref
Course Description
ITIL (IT Infrastructure Library) Foundation
Duration: 2 days
Purpose
Learn the basics of Information Technology (IT) Infrastructure Library
(ITIL) and discover the importance of a systematic approach to
management. The ITIL contains a comprehensive description of the
processes involved in managing IT infrastructures. Build your
awareness of the best practice approach to IT service support and
service delivery. Gain an understanding of the importance of an IT
infrastructure and IT service for an organization, a process-like
approach to business organization, the ITIL management framework,
basic terms, and concepts of the work processes used to manage an
IT infrastructure. Take the ITIL Foundations Certification Exam upon
course completion.
Audience
This course is intended for people working in the field of IT service
management.
Prerequisites
None
Objectives
Upon completion of the course, the student will be able to:
Understand the importance of an IT infrastructure
Describe the best practices for IT service
Develop a process-like approach to business organization
Describe the ITIL management framework
Understand the basic terms and concepts of the work processes
used to manage an IT infrastructure
Course Description
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Student Notebook
Contents
Topics include:
ITIL best practice: history, purpose, and acceptance
Introduction to the ITIL booklets of best practices
ITIL scope, infrastructure, and process terms
Characteristics of the ITIL sets and process groups
Strategic, tactical, and operational perspectives
Service support set: configuration management, service desk
incident management, problem management, change
management, and release management
Service delivery set: service level management, availability
management, capacity management, IT service continuity
management, and financial management for IT services
Links with the security management process
Example examination
Curriculum relationship
The Foundation Certificate in IT Service Management is a prerequisite
for the Practitioner's and Manager's Certificate in IT Service
Management.
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Agenda
Day 1
ITIL Introduction
Service Desk
Incident Management
Problem Management
Change Management
Configuration Management
Release Management
Exercise
Day 2
Recap Discussion
SLM
Availability Management
Capacity Management
Financial Management
Continuity Management
Security Management
Examination
Agenda
xiii
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Course Introduction
Course Introduction
xv
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IBM Global Services
ITIL Foundation Course
IT Infrastructure Library Overview
ITIL Planning to Implement Service Management
The
Business
Perspective
Service Support
ICT
Infrastructure
Management
Service Delivery
Security
Management
Technology
Business
Service Management
Application Management
ITIL Foundation Course | Student material v1.0
Figure 0-1. ITIL Foundation Course: IT Infrastructure Library Overview
2004 IBM Corporation
SM251.0
Notes:
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pref
IBM Global Services
Objectives and Contents of the Course

Objectives
Understand the ITIL Framework (what, who, where, why, and how)
Understand the benefits of adopting ITIL
Use the same language for Service Management
Pass for the Foundation Certification Exam
Contents
Overview of the 2 ITIL core modules:
5 Processes of Service Support und 1 Function
5 Processes of Service Delivery
Security Management for IT Services
Activities of each ITIL process

Benefits/difficulties/costs of implementing ITIL process
Links with other ITIL processes
ITIL process roles and responsibilities
Order of implementation within ITIL process
Success factors within an ITIL implementation
No details of procedures within process, which are organization-dependent!
Figure 0-2. ITIL Foundation Course: Objectives and Contents of the Course
SM251.0
Notes:
Course Introduction
xvii
Student Notebook
IBM Global Services
ITIL Defines a Three-Tiered Structure of Certification Training
Practitioners (9 certificates)
Availability Mgmt (5 days)
Incident Mgmt (5 days)
Problem Mgmt (5 days)
Configuration Mgmt (5 days)
Service Level Mgmt (5 days)
Change Mgmt (5 days)
Foundations
Essential (2 days)
1 hour Multiple Choice
Prerequisites
assessed by
Examination
Board
1 hour Multiple Choice
Service Manager
Service Support (5 days)
3 hours Essay Examination
Service Delivery (5 days)

3 hours Essay Examination
Figure 0-3. ITIL Foundation Course: ITIL Defines a Three-Tiered Structure of Certification Training
SM251.0
Notes:
ITIL defines three levels of certification. The Foundations Certificate is the first level and
covers Service Management essentials. Foundations classes typically last 2 days, and
culminate with a 1-hour multiple choice exam.
Next, 9 Practitioner Certificates are available. These each concentrate on a specific
process area within Service Management, such as Change Management. Each of the
Practitioner classes lasts 5 days and ends with a 1-hour multiple choice exam.
ITIL's highest level of certification is the Service Manager, or Masters certificate. Service
Manager classes involve two weeks of intense study, and Service Managers must pass two
3-hour essay-based exams: one for Service Support, and one for Service Delivery.
Furthermore, the exam board must assess and validate that each person sitting for the
Service Manager exam has met all of the defined prerequisites.
So, when someone holds ITIL certification, you know what you're getting because the
levels of certification and testing are independently defined and verified.
xviii ITIL Foundation

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IBM Global Services

Process Chart Reference
Source: IPW Model is a trade mark of Quint Wellington Redwood and KPN Telecoms
7
Figure 0-4. ITIL Foundation Course: Process Chart Reference
SM251.0
Notes:
The chart which aims to show the flow of ITIL processes, and the most referenced by itSMF
(IT Service Management Forum), is the IPW Process Model, a trade mark of Quint
Wellington and KPN. The IPW Model is neither a complete nor a perfect plot of ITIL
processes. It will, however, be used during the training, just to show some interfaces
between processes, and the position of a process within the operational or tactical activities
of the business.
Course Introduction
xix
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Unit 1. What ITIL Is

What This Unit Is About
This unit is an introduction to ITIL. We will start with a short history,
then discover ITIL, and explain why it is increasingly popular to help
managing IT.
What You Should Be Able to Do

After completing this unit, you should be able to think about how a
formalized framework can help a company manage its asset.
References
BS 15000-1:2002
IT Service Management (Part 1: Specification for

Service Management)
BS 15000-2:2003
IT Service Management (Part 2: Code of Practice

for IT Service Management)
PD 0005:2003
IT Service Management A Managers Guide
PD 0015:2002
Service Management Self-Assessment

Workbook

1-1
Student Notebook
IBM Global Services
Unit 01
What ITIL is
Contents of this module:
What ITIL is
ITIL history
Contents of ITIL books
Popularity and benefits of ITIL
Figure 1-1. Unit 01: What ITIL is
SM251.0
Notes:
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IBM Global Services
What ITIL is
ITIL: de facto standard for service management

built on industry best practice
What is ITIL?
ITIL stands for Information Technology Infrastructure Library
A set of books that describe best practices for IT infrastructure management
An internationally-recognized set of best practices in the public domain
Provides guidance, but not a step-by-step methodology
A holistic approach to IT infrastructure management
ITIL by its widespread use became a de facto standard
The aims in developing the IT Infrastructure Library are

To facilitate the quality management of IT services, and in doing so increase the efficiency
with which the corporate objectives and business requirements are met
To improve efficiency, increase effectiveness, and reduce risks
To provide codes of practice in support of total quality
Benefits of implementing ITIL
Enhanced customer satisfaction, as it is clear what service providers know and deliver
Formalize the use of procedures so that they are more reliable to follow
Improved quality of service more reliable business support
Better motivated staff through better management of expectations and responsibilities
Figure 1-2. What ITIL is: ITIL: de facto standard for service management built on industry best practice
SM251.0
Notes:
Service support is currently the most popular topic worldwide in terms of customer
popularity; the ITIL book on Service Support is most often referenced.
ITIL is a library of books on what you need to do to manage IT as business; but it does
not explain in detail how to do it.
The ITIL framework places a strong emphasis on process; and is of most interest to
customers who see process as important.
Application management is NOT application development. Instead, it looks at the entire
lifecycle of managing applications from a service point of view. For example, for SAP,
when you are gathering requirements, you need to think about all of the service
management elements to make the lifecycle effective. How will the application be
configured? Will it be available at the required service levels? How will new releases be
deployed? How will it be supported? And so on.

1-3
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All books are released except for The Business Perspective which will cover the
business value chain (customer/IT/business), business alignment (how an organization
is set up, how it is governed, and managing the relationship between IT and business);
it is mostly an overview of ITIL's value to the business, and emphasizes that IT should
have a business perspective.
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IBM Global Services
What ITIL is
Main characteristics of ITIL are: IT services are business-oriented, and

provision of quality customer service
Other Characteristics of ITIL
Service and customer focused
Helicopter view of processes and activities
Provides a common language. This makes education very important to provide this
common language to all people in the process.
Independent of organizational structures, architectures or technologies
IT management is all about the efficient and effective use of the four Ps: people,
processes, products (tools and technology), and partners (suppliers, vendors, and
outsourcing organizations).
People
Processes
Products
Partners
4
Figure 1-3. What ITIL is: Main characteristics of ITIL are: IT services are business-oriented, and provision of quality customer service
SM251.0
Notes:

1-5
Student Notebook
IBM Global Services
What ITIL is
Originally created by the UKs Central Computer and

Telecommunications Agency (CCTA)
Origin and History of ITIL
Originated from UK government in late 1980s (CCTA Central Computer and Telecommunications
Agency
First publications appeared in 1989

Further developed by incorporating public and private sector best practice (IBM, HP, Microsoft, and
so on)
Consolidated in 1999 into ITIL Version 2. Two books to improve consistency and focus on service
management were published Service Support and Service Delivery
These two core books were supplemented by new books that cover implementation planning,
security management, infrastructure management, application management, and the business
perspective
2001: the CCTA is incorporated within the Office of Government Commerce (OGC). ITIL is a
registered mark of OGC.
ITIL has subsequently been used as the basis for the development of a British Standard for Service
Management.
Figure 1-4. What ITIL is: Originally created by the UK's Central Computer and Telecommunications Agency (CCTA)
SM251.0
Notes:
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IBM Global Services
What ITIL is
The BSI roadmap to make ITIL a standard for service management

British Standards Institution (BSI)
1998
2000
- Code of Practice [PD0005]

- Self-assessment Workbook [PD0015]
- Specification [BS15000:2000]
2001
2002
- Early adopters Feedback

- Rewrite as Part 1 & 2
- Rewrite PD0015/PD0005
2003
2006
- Formal certification scheme
What to
achieve
Standard
BS15000
Specification
- ISO Standard
Management
overview
PD0005
ITIL
Process
definitions
In-house processes &

procedures
Deployed
solution
OGC
questionnaire
Guidance
Code of Practice
PD0015
Figure 1-5. What ITIL is: The BSI roadmap to make ITIL a standard for service management
SM251.0
Notes:
ITIL consists of modules containing advice and guidance on best practice relating to the
provision of IT services. ITIL has subsequently been used as the basis for the development
of a British Standard for Service Management. The standard and ITIL are aligned, and the
standard has itself been recently revised and is now defined in the following set of
documents:
BS 15000-1:2002, IT Service Management (Part 1: Specification for Service
Management)
BS 15000-2:2003, IT Service Management (Part 2: Code of Practice for IT Service
Management)
PD 0005:2003, IT Service Management A Manager's Guide
PD 0015:2002, IT Service Management Self Assessment Workbook
These documents provide a standard against which organizations can be assessed and
certified with regard to the quality of their IT Service Management processes.

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A BS 15000 Certification scheme was introduced in July 2003. The scheme was designed
by the itSMF and is operated under their control. A number of auditing organizations are
accredited within the scheme to assess and certify organizations as compliant to the BS
15000 standard and its content. The BS 15000 standard is now progressing towards an
international (ISO) standard on Service Management.
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What ITIL is
ITIL is a library of books that aim to describe best practices for IT

infrastructure management
Content of ITIL
Currently ITIL consists in a set of
books, which document and place
existing methods and activities in a
structured context."
ITIL as a Guidance
"ITIL does not cast in stone every action
you should do on a day to day basis
because that is something that will differ
from organization to organization.
Instead it focuses on best practice that
can be utilized in different ways
according to need."
Figure 1-6. What ITIL is: ITIL is a library of books that aim to describe best practices for IT infrastructure management
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Notes:
ITIL is a framework, not a methodology. It describes what needs to be done, but the advice
it offers may be implemented in a variety of ways. ITIL provides guidance, not a
step-by-step how-to for managing IT services, but it does include a rich body of
documentation.

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What ITIL is
The ITIL books describe best practices in IT management, with a

special focus on service management
ITIL Planning to Implement Service Management
Technology
Business
Service Management
The
Business
Perspective
Service Support
ICT
Infrastructure
Management
Service Delivery
Security
Management
Application Management
Figure 1-7. What ITIL is: The ITIL books describe best practices in IT management, with a special focus on service management
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Notes:
The most widely used processes within the ITIL framework are those in Service
Management.
IT Service Management is concerned with delivering and supporting IT services that are
appropriate to the business requirements of the organization. ITIL provides a
comprehensive, consistent, and coherent set of best practices for IT Service Management
processes, promoting a quality approach to achieving business effectiveness and
efficiency in the use of information systems. ITIL processes are intended to be
implemented so that they underpin, but do not dictate, the business processes of an
organization.
Being a framework, ITIL describes the contours of organizing Service Management. The
models show the goals, general activities, inputs, and outputs of the various processes,
which can be incorporated within IT organizations. ITIL does not cast in stone every action
you should do on a day-to-day basis, because that is something which will differ from
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organization to organization. Instead, it focuses on best practice that can be utilized in

different ways according to need.
Thanks to this framework of proven best practices, the IT Infrastructure Library can be used
within organizations with existing methods and activities in Service Management. Using
ITIL does not imply a completely new way of thinking and acting. It provides a framework in
which to place existing methods and activities in a structured context. By emphasizing the
relationships between the processes, any lack of communication or cooperation between
various IT functions can be eliminated or minimized.

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Most people think of ITIL as service support, but the increasing popularity of
ITIL should be leveraged against a broader spectrum of services
Service Desk
Incident Management
Problem Management
Change Management
Release Management
Service Level Management

Capacity Management
Financial Management for IT Services
IT Services Continuity Management
Planning to implement service management
The
business
perspective
ICT
Infrastructure
management
Service support
Service delivery
Software Asset Management
The technology
Service management
The business
Not Published
(4/2004)
Draft being
reviewed
(IBMers on
review team)
Security
management
Design and Plan

Deployment
Operations
Technical Support
IT Infrastructure Security
Management
Security setup from the IT
manager's point of view
Application management
What is the vision?

Where are we now?
Where do we want to be?
How do we check our milestones?
How do we keep momentum?
Organization & Roles

Process Overview
Tools & Technology
Partners and SAM
Manage the Business Value

Align Service Delivery with Business Strategy
Drivers and Organizational Capability
Application Lifecycle Management
Organization Roles and Functions
Control Methods and Techniques
Figure 1-8. Most people think of ITIL as service support, but the increasing popularity of ITIL should be leveraged against a broader
spectrum of services
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What ITIL is
Service management focuses on the tactical and operational processes
of service support and service delivery and their relationships,

including security management (separate ITIL book)
Capacity
Management
Availability
Management
Service Delivery Provide quality, costeffective IT Services
IT Service
Continuity
Service Level
Management
Financial
Management
Release
Management
Configuration
Management
Change
Management
Service Support - Provide

stability and flexibility for IT
service provision
Incident
Management
Problem
Management
10
Security
Management
Figure 1-9. What ITIL is: Service management focuses on the tactical and operational processes of service support and service delivery
and their relationships, including security management (separate ITIL book)
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What ITIL is
ITIL processes in service support represent many of the reactive

processes within IT operations (operational)
Service Desk
Central point of contact between users and the IT service organization.
Incident Management
Restore normal service operations as quickly as possible.
Problem Management
Prevent and minimize the adverse effect on the business of errors in the IT
Infrastructure.
Provide a logical model of the IT infrastructure by identifying, controlling, maintaining,
and verifying the versions of all configuration items.
Change Management
Ensure standardized methods and procedures are used for efficient, prompt, and
authorized handling of all changes in the IT infrastructure.
Release Management
Ensure that all technical and non-technical aspects of a release are dealt with in a
coordinated approach.
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Figure 1-10. What ITIL is: ITIL processes in service support represent many of the reactive processes within IT operations (operational)
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What ITIL is
Service Delivery focuses on what service the business requires in

order to provide adequate support to the business users (tactical)
Maintain and improve IT service quality through a constant cycle of agreeing, monitoring,
reporting, and reviewing IT service achievements.
Provide cost-effective stewardship of IT assets and resources used in providing IT services.
Capacity Management
Ensure that capacity and performance aspects of the business requirements are provided in a
timely and cost-effective manner.
Optimize the capability of the IT infrastructure and supporting organization to deliver a costeffective and sustained level of availability to satisfy business objectives.
IT Service Continuity Management
Ensure that the required IT technical and service facilities can be recovered within the time
scales required by Business Continuity Management.
Security Management
Manage a defined level of security on information and IT services.
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Figure 1-11. What ITIL is: Service Delivery focuses on what service the business requires in order to provide adequate support to the
business users (tactical)
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What ITIL is
Service support process (operational processes) relationships and their
interaction with the CMDB
The business, customers, and users
Incidents
Queries
Enquiries
Management
tools
Incidents
Incident
management
Incidents
Service
desk
Problem
management
Service reports
Incident statistics
Audit reports
Communications
Updates
Workarounds
Customer
Survey
reports
Changes
Release
Problem statistics
Trend analysis
Problem reports
Problem review
Diagnostic aids
Audit reports
Incidents
Change
management
Change schedule
CAB minutes
Change statistics
Change reviews
Audit reports
Problems
Known errors
Release
management
Release schedule
Release statistics
Release reviews
Secure library
Testing standards
Audit reports
Changes
Configuration
management
Releases
CMDB reports
CMDB statistics
Policy standards
Audit reports
CIs
Relationships
Configuration management database

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Figure 1-12. What ITIL is: Service support process (operational processes) relationships and their interaction with the CMDB SM251.0
Notes:
Explain the links between processes. Configuration Management is shown as the basic
process.

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What ITIL is
Service delivery process (tactical processes) relationships
The business, customers, and users
Availability
management
Capacity plan
CDB
Targets/thresholds
Capacity reports
Schedules
Audit reports
System
Management
tools
Communications
Updates
Reports
Service level
management
Capacity
management
Availability plan
AMDB
Design criteria
Targets/thresholds
Reports
Audit reports
14
Queries
Enquiries
Financial
management for
IT services
Financial plan
Types and models
Costs and charges
Reports
Budgets and forecasts
Audit reports
Requirements
Targets
Achievements
IT service
continuity
management
Alerts and
Exceptions
Changes
SLAs, SLRs, OLAs, UCs

Service reports
Service catalog
SIP
Exception reports
Audit reports
IT continuity plans
BIA and risk analysis
Requirement definition
Control centers
DB contracts
Reports
Audit reports
Figure 1-13. What ITIL is: Service delivery process (tactical processes) relationships
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What ITIL is
Other ITIL books

Planning to Implement Service Management - explains the steps necessary to identify
how an organization might expect to benefit from ITIL, and how to set about reaping those
benefits.
ICT Infrastructure Management - covering Network Service Management, Operations

Management, Management of Local Processors, Computer Installation, and Acceptance,
and for the first time, Systems Management.
Applications Management - embracing the Software Development Lifecycle, expanding

the issues touched on in Software Lifecycle Support and Testing of IT Services.
Applications Management also provides more detail on Business Change, with emphasis
being placed on clear requirement definition and implementation of solutions.
The Business Perspective - concerning the understanding and provision of IT service

provision. Issues covered include Business Continuity Management, Partnerships and
Outsourcing, Surviving Change, and Transformation of business practices through radical
change.
15
Figure 1-14. What ITIL is: Other ITIL books
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These books are not in focus for the foundation.

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What ITIL is
Customers across the globe are asking more and more about ITIL
Benefits of ITIL
More professional staff

Enhanced customer satisfaction as service providers know and
deliver what is expected of them
Better service quality and responsiveness

Properly aligned roles and responsibilities
ITIL incorporates a QM strategy
Long-term cost reduction for IT services
Improved alignment of IT with the business and improved service
delivery
ITIL brings a cross-organizational focus on business results and

customer satisfaction
16
Figure 1-15. What ITIL is: Customers across the globe are asking more and more about ITIL
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Notes:
ITIL is focused on improving service quality to the customer. Customers who adopt the ITIL
framework can expect to see improved alignment of IT with the business, a long-term
reduction in the cost of IT services, and better service quality and responsiveness.
Customers should see a reduction in system outages as proactive planning and quality
measures are implemented, and they should be able to implement IT infrastructure more
quickly to support new business requirements. Customer satisfaction should increase
because service providers will know and deliver what is expected of them, based on what
the business requires. And support services should become more competitive.
Service providers will also benefit from the adoption of ITIL. Service providers should see
improvements in service delivery because they will have a single definable, repeatable,
scalable, and consistent set of IT processes. Roles and responsibilities will be properly
aligned and understood. Communications between IT departments should improve
because the linkages between processes will be documented and understood. Service
providers should see better resource utilization and resources will be allocated based on
business demands and staff will be more professional and motivated because skill
requirements and capabilities, along with job expectations, are better understood.

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What ITIL is
ITIL implementation: Adopt and Adapt
ITIL describes what needs to be done but not how it should be done.
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 be implemented
ITIL does not claim to be a comprehensive description of everything within IT, but IT
management best practices observed and accepted in the industry.
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.
17
Figure 1-16. What ITIL is: ITIL implementation: Adopt and Adapt
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Unit 2. Process Implementation Strategy

This unit is an introduction to IT service management as a coordinated
set of processes. We will start with defining the need for processes,
then look at what processes are, how they evolve, and how ITIL and
Service Management bring value to companies to develop their
business.

After completing this unit, you should be able to think about how
processes can help a company manage its assets better, with the
ultimate objective of creating visible value for users and business
customers.

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Unit 02
Process Implementation Strategy

Content:
Understand processes and their benefits

Introduce new processes or improve existing processes
IT service management project
Success factors, problem areas, costs
Figure 2-1. Unit 02: Process Implementation Strategy
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Process Implementation
What is a process?
ITIL focus on Processes
A process is a sequence of interrelated activities that collectively take an input, add
value to it, and produce an output which achieves a specific objective
CONTROL
Policy
Budgets
...
Input
Process
Output
Changed
environment
a report
a resolved incident
..
Requests
Incidents
Alerts
Requirements
...
ENABLE
People
Tools
Knowledge
Resources
3
Figure 2-2. Process Implementation: What is a process?
SM251.0
Notes:
Process control can similarly be defined as:
the process of planning and regulating, with the objective of performing the process in
an effective and efficient way.
Processes, once defined, should be under control; once under control, they can be
repeated and become manageable. Degrees of control over processes can be defined, and
then metrics can be built in to manage the control process.
The output produced by a process has to conform to operational norms that are derived
from business objectives. If products conform to the set norm, the process can be
considered effective (because it can be repeated, measured, and managed). If the
activities are carried out with minimum effort, the process can also be considered efficient.
Process result metrics should be incorporated in regular management reports.

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A process flows across the organizational hierarchies within a company

and sometimes flows across company boundaries
Figure 2-3. Process Implementation: A process flows across the organizational hierarchies within a company and sometimes flows
across company boundaries
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Why do we need processes?

Process serves as a foundation for the definition of the remaining elements of the
management system-organization and technology
Processes capture and document:
-Ownership, responsibilities, measurements
-Consistent, structured working practices
-Policy decisions, scope, and objectives
-Clear interfaces and two-way communication paths with other processes, people,
and tools
Processes ensure a stable, controlled, repeatable service that can be objectively
measured against contract deliverables and service levels
Processes enable:
-Efficient and effective service to meet both client and provider needs
-Cost and quality improvement
Service-focused
Service-focused processes
processes enable
enable IT
IT technology
technology and
and organization
organization to
to be
be
managed
in
ways
which
facilitate
alignment
with
clients'
business
objectives.
managed in ways which facilitate alignment with clients' business objectives.
5
Figure 2-4. Process Implementation: Why do we need processes?
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What are the benefits? (1)

Gartner has reported that:
-Around 70% of systems management technology implementations fail due
to neglect of process and organization considerations
-Approximately 80% of unplanned downtime is caused by process and
people issues, with the remainder caused by technology failures and
disasters
-Up to 70% of ROI derives from process improvements rather than tools
The implementation and continual improvement of effective processes utilizing
best practices enable delivery of a service in which these errors are reduced
Processes
Processes are
are critical
critical to
to maintain
maintain effective
effective business
business operations.
operations.
Figure 2-5. Process Implementation: What are the benefits? (1)
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A cross-organizational focus on commitment versus profitability
Customer
Commitments
Profitability
EFFICIENCIES
7
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A cross-organizational focus on business results and customer satisfaction
Delivery Costs
Customer Satisfaction
Measurable
Auditable
Service Level
Compliant
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Mission-critical changes or reorganizations within an IT corporation

require new processes or needs to improve existing processes
Which problems do IT organizations face today?
Service costs not allocatable
Difficulties to justify investments

Service improvements not measurable
A few people with too many responsibilities
Reluctance to change organizational culture
Lack of relationship management
Which challenges do IT organizations face today?
Should quality of IT services be improved?

Is a merger with another organization planned?
Are any mission-critical business changes planned?
Server consolidation
Additional clients to manage
Is any OS migration planned?
Figure 2-8. Process Implementation: Mission-critical changes or reorganizations within an IT corporation require new processes or
needs to improve existing processes
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Continuous processes improvement is also a trigger

Does the IT organization have the capability to provide the required service with
the required quality?
Are IT processes aligned with business processes?

How are main processes integrated with each other?
Are processes clearly defined, documented, and available for all concerned?
Are process inputs measurable and repeatable?
How efficiently is the existing IT organization providing services?
Method and tools used for process modeling and audit?

How are IT processes tool supported?
How difficult will it be to introduce or to change a process?
10
Figure 2-9. Process Implementation: Continuous processes improvement is also a trigger
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Why implement service management?

The specific goals of IT are to develop and maintain IT services that:
Develop and maintain good and responsive relationships with the business
Meet the existing IT requirements of the business

Are easily developed and enhanced to meet future business needs, within
appropriate timescales and costs
Make effective and efficient use of all IT resources

Contribute to the improvement of the overall quality of IT service within the
imposed cost constraints
One
One of
of the
the main
main objectives
objectives of
of ITIL
ITIL is
is to
to assist
assist IT
IT service
service provider
provider
organizations
organizations to
to improve
improve IT
IT efficiency
efficiency and
and effectiveness
effectiveness while
while
improving
improving the
the overall
overall quality
quality of
of service
service to
to the
the business
business within
within
imposed
cost
constraints.
imposed cost constraints.
11
Figure 2-10. Process Implementation: Why implement service management?
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Service and Process
Preparing
tables
Greeting and
seating
Process 1
Process 2
Process 3
Process 4
Process 5
Manage
Facilities
Handle
Customer
Interaction
Understand
Customer
Requirements
Realize
Solution
Deploy
Solution
Implement
required
processes,
tools, and
organization
Providing
applications
and reporting
Building the
infrastructure
12
Preparing
order
Delivering
order,
monitoring
customer
Offer
selection,
taking order
Contacting
potential
customer
Determine
the required
quality of
service
Figure 2-11. Process Implementation: Service and Process
A delightful
dining
experience
Service
Availability of
applications
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Service, Process, Procedure, and work instructions

A Service can be defined as:
A specific output that provides customer value. It is a measurable product which
is the basis for doing business with customer, and is delivered through a series
of processes, or activities, or both.
A Process can be defined as:
a connected series of actions, activities, changes, and so on, performed by
agents with the intent of satisfying a purpose or achieving a goal.
A Procedure is a description of logically related activities, and who carries them
out. A procedure may include stages from different processes. A procedure
defines who does what, and varies depending on the organization.
A set of work instructions defines how one or more activities in a procedure
should be carried out.
13
Figure 2-12. Process Implementation: Service, Process, Procedure, and work instructions
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Project Management
When implementing new processes in an organisation, there are benefits to
running the activity as a project.
One of the benefits of adopting a project approach to this activity is that it is
possible to undertake the necessary investigations and have designated
decision points where a decision can be made to continue with the project,
change direction, or stop.
A
A project
project can
can be
be defined
defined as:
as:
A
A temporary
temporary organization
organization that
that is
is needed
needed to
to achieve
achieve aa predefined
predefined
result
result at
at aa predefined
predefined time
time using
using predefined
predefined resources.
resources.
14
Figure 2-13. Process Implementation: Project Management
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Factors who will influence the success of an ITSM project
1.
1. Process
Process
2.
2. Infrastructure
Infrastructure
3.
3. Staff
Staff
5.
5. Strategy
Strategy
6.
6. Culture
Culture &
&
Organization
Organization
4.
4. Customers
Customers
15
Figure 2-14. Process Implementation: Factors who will influence the success of an ITSM project
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People
implement the staff training plan and make this an ongoing activity, focusing
on both social and technical skills
assign roles within the ITIL model to people, and make this part of their
function description
delegate tasks and authorizations as low as possible in the organisation.

Authority matrix: The ARCI model
A
accountability
control the results of a process
R responsibility
is responsible for the process and process activities
C consulted
provide expertise, know-how to enable process
I informed
is informed about the process and the process quality
16
Figure 2-15. Process Implementation: People
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Each task within a process is executed by a role

Typical roles within IT Service Management (ITSM)
Process owner
Process manager
Process team member (internal and external)
17
Figure 2-16. Process Implementation: Each task within a process is executed by a role
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ITSM Project (1)
Before starting a project, an organization should have a vision about

what the results are intended to be.
By defining the means necessary to achieve the project result, it is
possible to isolate these assets (people, budget, and so on) from the
day-to-day activities. This increases the success rate of the project.
18
Figure 2-17. Process Implementation: ITSM Project (1)
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ITSM Project (2)

The following process model should be used by the organization as the
framework for the process improvement/introduction project.
19
Where do we
want to be?
Visions and
business
objectives
Where are we
now?
Assessments
How do we get
where we want
to be?
Process change
How do we
know we have
arrived?
Metrics
Figure 2-18. Process Implementation: ITSM Project (2)
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From the above model, 5 phases of a ITSM project are definable

Assessment the current situation
-Process model
-Procedures
-Authority matrix
-Roles and
responsibilities
Specification
-Management information
-Quality assurance methods
-Support tools
-Management reports
-Procedures
-Tool
Organization
Definition of processes
Communication Strategy
Production of the project plan
Implementation/Improvement
Project Review
20
Figure 2-19. Process Implementation: From the above model, 5 phases of a ITSM project are definable
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Maturity Level
Ongoing quality improvement

The Deming Cycle
Clockwise direction
Quality
improvement
OPTIMIZED 5
Continuous
step by step
Do
Plan
Check
Act
MANAGED 4
DEFINED
REPEATABLE
INITIAL
Quality Assurance
P
D
C
A
= Plan
= Do
= Check
= Act
Consolidation of the level reached

(e.g ISO 9001, BSI)
Time Scale
21
Figure 2-20. Process Implementation: Ongoing quality improvement
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Notes:
For quality improvement, Deming proposed the Deming Cycle (or Circle). The four key
stages are plan, do, check, and act, after which a phase of consolidation prevents the
circle from rolling down the hill as illustrated in the figure. The consolidation phase
enables the organization to take stock of what has been taking place and to ensure that
improvements are embedded. Often, a series of improvements have been made to
processes that require documentation (both to allow processes to be repeatable and to
facilitate recognition of the achievement of some form of quality standard).

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Communication Plan
Managing change can only succeed with the correct use of communication.
In order to ensure that all parties are aware of what is going on and can play a relevant part
in the project, it is advisable to clarify how the project will communicate with all interested
parties.
Managing communications effectively involves the following nine steps:
22
Describe the communications process in the change process from the start
Analyze the communication structure and culture
Identify the important target groups
Assess the communication goals for each target group
Formulate a communication strategy for each target group
Choose the right communication media for each target group
Write a communication plan
Communicate
Measure and redirect if necessary.
Figure 2-21. Process Implementation: Communication Plan
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Notes:
Managing change can only succeed with the correct use of communication. A Service
Management project will involve a lot of people but, typically, the outcome will affect the
working lives of many more. Implementing or improving Service Management within an
organization requires a change of mindset by IT management and IT employees as well as
IT customers and users. Communication around this transformation is essential to its
success.
In order to ensure that all parties are aware of what is going on and can play a relevant part
in the project, it is advisable to clarify how the project will communicate with all interested
parties. A well-planned and executed communication plan will have a direct positive
contribution to the success of the project.
A good communication plan should be built on a proper concept of what communication
is. Communication is more than a one-way information stream. It requires continuous
attention to the signals (positive and negative) of the various parties involved. Managing
communications effectively involves the following nine steps:

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Describing the communications process in the change process from the start
Analyzing the communication structure and culture
Identifying the important target groups
Assessing the communication goals for each target group
Formulating a communication strategy for each target group
Choosing the right communication media for each target group
Writing a communication plan
Communicating
Measuring and redirecting if necessary.
A communication plan describes how target groups, contents, and media are connected
in a timeframe. Much like a project plan, a communication plan shows how actions,
people, means, and budgets are to be allocated for the communication process.

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Global Consideration
Process
implementation
ev
ie
w
O
gn
Si
Detailed
process description
ff
ff
O
gn
High-level
process model
Si
As
s
Pr
es
oj
e
ct
pl
a
Process
Product
Define tool
requirements
Tool selection
People
Awareness
23
ITIL training
Installation &
configuration
Process
workshops
Figure 2-22. Process Implementation: Global Consideration
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Process Description
To document processes, the following should be described:
A description of related activities with a defined goal

Which input for the process
Interfaces to other processes
Definition of process parameters (who, where, what, when)
The benefits of process description:
24
Process integrity
Consistent view
Comparable procedures
Easy check and review
Figure 2-23. Process Implementation: Process Description
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High-Level Design of a Process

Organization strategy
Organization targets
Evaluation
(Control points, parameters, attributes)
Outputs
Inputs
Activities
Process goals and

implementation strategies
25
Figure 2-24. Process Implementation: High-Level Design of a Process
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A Process Implementation considers both an initial process design

and an improvement of the existing environment
Inputs / Premises
High-level process flow

Procedures
Roles and responsibilities
Tool (installed and configured)
Personal (skills and know-how)
Management commitment
Enabler team in relation to the
authority matrix
Awareness und acceptance by
customer/user
Develop a training plan
Develop a timetable
Setup of workshops and training
events
Presentations
Handouts and documents
Marketing material
Plan of workshops and deployment
Specify time and goals of coaching

phase
Plan of the Initial Process Review and

Adjustment phase
Define target groups

Define training content after
workshops
26
Figure 2-25. Process Implementation: A Process Implementation considers both an initial process design and an improvement of the
existing environment
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A review is important for quality assurance

Post-Project Review
Achievement of the project's objectives

Performance against plan (estimated time and costs versus actuals)
Effect on the original plan and business case over the time of the project
Statistics on issues raised and changes made
Total impact of changes approved
Statistics on the quality of the work carried out (in relation to stated
expectations)
Lessons learned
Auditing for compliance using defined quality parameters and metrics
27
Figure 2-26. Process Implementation: A review is important for quality assurance
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Define
ITIL Best Practices

Service Management
Improve
Control
Evaluate
28
Figure 2-27. Process Implementation: A review is important for quality assurance
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Notes:
As the project draws to a close, it is important to analyze how the project was managed
and to identify lessons that were learned along the way. This information can then be used
to benefit the project team as well as the organization as a whole. An End Project Report
typically covers:
Achievement of the project's objectives
Performance against plan (estimated time and costs versus actuals)
Effect on the original plan and business case over the time of the project
Statistics on issues raised and changes made
Total impact of changes approved
Statistics on the quality of the work carried out (in relation to stated expectations)
Lessons learned
A post-project review plan

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Post-project review
The business case will have been built from the premise that the outcome of the project
will deliver benefits to the business over a period of time. Thus, delivery of benefits needs
to be assessed at a point after the project products have been put into use. The
post-project review is used to assess whether the expected benefits have been realized,
as well as to investigate whether problems have arisen from use of the products.
Each of the benefits mentioned in the business case should be assessed to see how well, if
at all, it has been achieved. Other issues to consider are whether there were additional
benefits, or unexpected problems. Both of these can be used to improve future business
cases.
If necessary, follow-up actions may be identified to improve the situation that then exists.
Auditing for compliance using quality parameters
Process quality parameters can be seen as the operational thermometer of the IT
organization. Using them, you can determine whether the IT organization is effective and
efficient. Quality parameters need to be quantified for your own circumstances. However,
this task will be easier once you have determined the required service levels and internal
service requirements. There are two types of quality parameters: process-specific and
generic.
Generic quality parameters for IT Service Management:
Generic quality parameters that need to be considered include:
Customer satisfaction
Staff satisfaction
Efficiency
Effectiveness
Appropriate information should be collected to rate the organizations performance relative
to these parameters. The nature of the information required will vary depending on how you
decide to judge each aspect, but what information is required should be clearly thought
through from the start of the project so that measurement is possible during the
post-project review.
Process-specific parameters
Process-specific metrics for each process are discussed in each of the process-specific
chapters of this book.

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Critical success factors

Successful Service Management processes should:
Be of sound design, adapted to the culture of the organization in question,

but rigorous in their expectation of discipline in the manner of their following
Provide a good understanding of the customer requirements, concerns, and

business activities, and deliver business-driven rather than technologydriven services
Enhance customer satisfaction

Improve value for money, resource utilization, and service quality
Deliver an infrastructure for the controlled operation of ongoing services by
formalized and disciplined processes
Equip staff with goals and an understanding of customers' needs
29
Figure 2-28. Process Implementation: Critical success factors
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Possible problems
Problems with Service Management processes that may be encountered include:
Excessively bureaucratic processes, with a high percentage of the total

support headcount dedicated to administering Service Management
Inconsistent staff performance for the same process (often accompanied by

noticeable lack of commitment to the process from the responsible staff)
Lack of understanding on what each process should deliver

No real benefits, service-cost reductions, or quality improvements arising
from the implementation of Service Management processes
Unrealistic expectations, so that service targets are rarely hit

No discernible improvement
30
Figure 2-29. Process Implementation: Possible problems
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Project costs
The costs associated with the implementation and running of the processes are
roughly categorized as follows:
Project management costs
Project delivery costs (consultancy fees, project team for implementation,

process owner)
Equipment and software

Training costs (including awareness, training in specific tools, and training in
business awareness)
Documentation costs
Ongoing staff and accommodation costs (for running the processes,
including subsequent training needs).
31
Figure 2-30. Process Implementation: Project costs
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When building the business case for a project, it is essential to be clear about what the
project costs are, and what the ongoing running costs of the Service Management
processes will be. Project costs are one-off costs, while the running costs form a
commitment for the organization that may involve long-term contracts with suppliers.
The costs of implementing IT Infrastructure Library processes clearly vary according to the
scale of operations. The costs associated with the implementation and running of the
processes are roughly categorized as follows:
Project management costs
Project delivery costs (consultancy fees, project team for implementation, process
owner)
Equipment and software
Training costs (including awareness, training in specific tools, and training in business
awareness)
Documentation costs

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Ongoing staff and accommodation costs (for running the processes, including
subsequent training needs)
The costs of failing to provide effective processes can be considerable.

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Unit 3. Service Desk (SPOC)

This unit is an introduction to the Service Desk, the single point of
contact between the users and the IT Services organization.

After completing this unit, you should be able to think about the
responsibilities and obligations of the service desk, and understand
the benefits of the ITIL framework.

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Unit 03
Service Desk (SPOC)

Content:
Service Desk objective and overview

Responsibilities and obligations
Important aspects
User interaction
Service Desk technologies
Operational standards
Implementation considerations
Costs, benefits, risks

Best practices
Summary
Figure 3-1. Unit 03: Service Desk (SPOC)
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Service Desk
Integration into the IPW Model
Source: IPW Model is a trade mark of Quint Wellington and KPN Telecoms
3
Figure 3-2. Service Desk: Integration into the IPW Model
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Service Desk
The Service Desk is the Single Point of Contact [SPOC] between the
users and the IT Services Organization
ITIL defines customers and users
Customers
People (generally senior managers) who commission, pay for, and own
the IT services, sometimes referred to as "the business"
Users
People who use the services on a day-to-day basis
Incident
Problem
Change
....
Service Desk
Users
IT Service Organization
Customers
Figure 3-3. Service Desk: The Service Desk is the Single Point of Contact [SPOC] between the users and the IT Services Organization
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Service Desk
Mission Statement
The Service Desk is the focal point for all service
requests from the business users to the IT organization
To record and manage the life cycle of incidents, with an
emphasis in rapid restoration of service with minimal
business impact, a Service Desk or Service Desk
organization is recommended. Help Desk, Service Line, and
First-Level Support are used as synonyms for Service Desk.
For the users, the Service Desk is there to:
provide a central communication interface
Requests
Requests
Incidents
Incidents
recover interrupted service as soon as possible
Service Desk as
Single Point of Contact
Figure 3-4. Service Desk: Mission Statement
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Service Desk
The Service Desk is traditionally seen as a group of specialists who have the
required knowledge to process any kind of request or incident
The Function Service Desk can reach a high efficiency using the following
measures:
Definition of the service mentality in the Service Desk documentation. The
task of the Service Desk does not only consist of resolving an incident, but
mainly in the immediate recovery of the users service.
Definition of clear processes to support the activities of Service Desk

members (Incident Management process).
Definition of close relationships between Service Desk and other important

ITSM processes, such as Problem Management.
The importance of the Service Desk is seen particularly in its special role as
interface between IT and the user; thus the Service Desk represents the IT
organization from the users point of view.
Figure 3-5. Service Desk: The Service Desk is traditionally seen as a group of specialists who have the required knowledge to process
any kind of request or incident
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Service Desk
The Importance of the Service Desk

The Service Desk
.... directly performs customer-oriented service.
.... interacts with the users.

.... is a decisive factor of the acceptance of IT.
.... strives to provide a faster and more direct incident recovery.
.... coordinates second- and third-level support.
.... recognizes the current needs of the user.
.... performs organized support, instead of disorganized support performed in a rush.
.... is able to organize support with high availability economically.
.... centrally evaluates incident reports.
.... proves the effectiveness of changes and improvements performed.
.... recognizes problems early.
.... reduces customer requests on a long-term basis.
.... supplies information about IT productivity.
Figure 3-6. Service Desk: The Importance of the Service Desk
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Service Desk
Communication
Communication is one of the success factors for IT services management.
Communication is key for quality of service.
The Service Desk informs about:
current status of services
usability
planned changes
Service quality supports customer relations.
Because of the importance of
communication with users, IT services
demands a position which fulfils this task
with.....
.... dedication
.... and especially competency..
The Service Desk is a function of

Service Management and not a
process within Service Management.
This function is held by an internal

organization unit.
SPOC Single Point of Contact.

All requests, information, wishes,
claims, complaints, requirements, and
so on, are transferred via the Service
Desk to the relevant departments, and
information is passed from there via
the Service Desk to the customer.
Figure 3-7. Service Desk: Communication
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Service Desk
Service Desk Responsibility

The Service Desk is responsible for:
Servicing the user contact point

Controlling incident recovery
Supporting the running of the business
SPOC
Incident Mgmt
1st Level Support
Providing management information
Reporting
Figure 3-8. Service Desk: Service Desk Responsibility
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Service Desk
Service Desk Activities
Call handling
Recording and tracking service requests, including incidents, until closure
and verification with the user
Requesting incident classification and initial support, including forwarding to

second level, within Service Level Agreements (SLA)
Keeping customer informed on request status and priority

Initiating escalation procedures in relation to the SLA
Coordinating incident handling until resolution with 2nd- and 3rd-line support
Helping to identify problems by recording all incidents
Providing management information and recommendations for service
improvement
Communicating planned changes to users
10
Figure 3-9. Service Desk: Service Desk Activities
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Service Desk
Processes within the Service Desk

user
user
request
request
user
user
creation of ticket
admin
admin
request
request
entry
incident
incident
registration,
analysis
advise, information
entitlement
check
if required, delivery of information material
initiation of measures
informed
informed
user
user
user
user with
with
change
change
change
direct solution
transfer
2nd level
callback
documentation
customer
information
tracking and escalation
complaint
complaint
11
complaint
entry
handling
recover satisfaction
initiation of follow-up actions
satisfied
satisfied
user
user
satisfied
satisfied
user
user
Figure 3-10. Service Desk: Processes within the Service Desk
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Service Desk
Inputs and Outputs
Telephone
requests
Request via
e-mail/voice/
video
Fax
requests
Requests via
Internet/
browser
Hardware/
application
events
Management
information and monitoring
Escalations
Service Desk
External
service
support
12
Product
support
Sales &
Marketing
Contract
support
Figure 3-11. Service Desk: Inputs and Outputs
Internal
service
support
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Service Desk
There are 3 Service Desk Types (1):

the Local Service Desk
There is no universal type of Service Desk. Choosing which one to adopt
depends on a number of factors:
Establishment of identical
processes and procedures in
all locations
User 1
User 2
User 3
Transfer of local skills to

other Service Desks
Assurance of compatibility of
Local
Service Desk
hardware, software, and

network
First-Level-Support
Usage of identical escalation

processes and identical
codes for impact, severities,
priorities, and status in all
locations
13
Desktop
Support
Network
Support
Application
Support
System &
Operation
Support
Vendor
Support
Figure 3-12. Service Desk: There are 3 Service Desk Types (1): the Local Service Desk
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These three slides describe the key factors of each service desk type.

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Service Desk

Central Service Desk
Customer
location 1
Customer
location 2
Central
Service Desk
Customer
location 3
First-level support
Reduced
operational
costs
Consolidated
management
overview
Improved usage
of available
resources
Second-level support
Desktop
support
14
Network
support
Application
support
System &
operation
support
Figure 3-13. Service Desk: There are 3 Service Desk Types (2): Central Service Desk
Other
manufacturer
support
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Service Desk

Virtual Service Desk
Follow the sun
Common, agreed-on
language should be
used for data entry
Depends on the
technology in use
(not every tool is
able to build a VSD)
Virtual
Service Desk
Sydney
Service Desk
Service
Management
database
Amsterdam
Service-Desk
Seattle Service Desk
location 1
location n
local user
other manufacturer/
supplier
service desks
remote user
15
Figure 3-14. Service Desk: There are 3 Service Desk Types (3): Virtual Service Desk
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Service Desk
User empowerment (self-help) enhances customer satisfaction while

lowering support cost
User value:
Empowers them with ability to resolve problems at their own pace
Benefit from the ability to get assistance in context
Spend less time on call resolution
Avoids costly and inconvenient re-imaging solutions
Consistent 7x24 support experience
Support Center Value:
Self-support tools and self-healing tools eliminate calls to the call center
Arms the agent with information about the user prior to initiating contact
Remote control and chat improve agent productivity
Increases customer satisfaction
Reduces dependency on desk-side support
Allows support professionals to focus on the incidents that do require
assistance
16
Figure 3-15. Service Desk: User empowerment (self-help) enhances customer satisfaction while lowering support cost
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Service Desk
A crucial success factor is standardized working methods

In order to ensure efficiency, person-independent quality, integrity of data, and
traceability, a highly standardized working method is necessary.
Therefore, actions are mainly performed:
supported by tools
with electronic forms

on standard solution and configuration databases
For help, one can refer to a support manual, which contains all procedures and
necessary information.
17
Figure 3-16. Service Desk: A crucial success factor is standardized working methods
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Service Desk
Setting up a Service Desk

For the conceptual design of a Service
Desk, you will have to consider the
following points:
Number of expected calls

Structure of the Service Desk: central
or local
Tools (hardware, software, and

telephone systems)
The way business operates, and

working procedures of the users
Service Desk processes

Workload distribution between first-,
second-, and third-level support
Know-how of Service Desk team
18
For setting up a Service Desk, the

following points have to be considered:
Business goals that users aim for

Support by management
Involvement of users to find a
common understanding
Involvement of members of staff

Explain to those involved the benefits
and their responsibilities
In project management quick wins,

several phases with defined
milestones
Marketing of new services
Figure 3-17. Service Desk: Setting up a Service Desk
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Service Desk
Benefits and Costs

Benefits:
Complete incident control

Effective support of the specialist department
Higher user productivity
Improved relationship between IT and users
Significant management information
Costs:
Costs vary depending on type and volume of Service Desk tasks

Include purchase price for hardware, software, employees, and
premises; and current costs for employees, premises and
telephony
19
Figure 3-18. Service Desk: Benefits and Costs
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Service Desk
Risks
Without Service Desk:
Users dont know whom to contact in

case of an incident
Incidents are not registered and get

forgotten
Incident escalation cannot be

addressed properly
IT specialists are interrupted by user

calls
Higher effort for resolving problems

No conclusive management
With Service Desk:
The Service Desk could become a

bottleneck when there are more
incidents or users than expected
User still contact the specialists if they

had been doing this in the past
Tensions between Service Desk and

other IT service fields are likely,
especially if the Service Desk does
not escalate in compliance with
regulations or even report directly to IT
management
information
20
Figure 3-19. Service Desk: Risks
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Service Desk
Best Practices
Standardized documentation of caller data
Automatic ID allocation of the request; sending of return receipt and feedback form
Selective administration of user data in the Configuration Management Data Base
Usage of CTI and ACD technologies (voice calls, routing, and so on)
Utilization of system monitoring for early detection of service impairment
Staff from second-level support are temporarily deployed in Service Desk
Large Service Desks are structured in teams with special know-how and are
supported by skill routing
Working with super users
CTI = Computer Telephony Integration

ACD: Automatic Call Distribution
21
Figure 3-20. Service Desk: Best Practices
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Service Desk
Summary
Service Desk is a function, not a process within Service Management
Service Desk is the focal point for all service requests from business users directed
to the IT organization (including third-party providers), and manages them within
Service Level Agreements
Service Desk responsibilities include:
Single Point of Contact (SPOC)

Incident Management
First-level support
Reporting
Service Desk is the window on the level of service offered by the IT organization to
the business
Keeps users up-to-date with the status of their service request

Provides management information on relevant topics regarding the service
Three Service Desk types: Local, Central, and Virtual Service Desk
22
Figure 3-21. Service Desk: Summary
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Unit 4. Incident Management

This unit is an introduction to Incident Management, and its
relationship with the Service Desk.

responsibilities and obligations of this service, and understand the
benefits of the ITIL framework.

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Unit 04
Incident Management
Content:
Incident Management objective and overview

Some definitions
Important aspects:
Incident lifecycle
Incident recording
Incident priority
Escalation
Benefits and risks

Best practices
Summary
Figure 4-1. Unit 04: Incident Management
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Incident Management
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Figure 4-2. Incident Management: Integration into the IPW Model
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Incident Management
Mission statement
The primary goal of incident management is to restore normal service
operation, within Service Level Agreement limits, as quickly as possible,
after an incident has occurred to that service, and minimize the adverse
impact on business operations.
Practice shows that handling both of failures in the infrastructure and of service requests
is similar, and both are therefore included in the definition and scope of the process for
Incident Management.
The Service Desk is responsible for monitoring the resolution process of all registered
incidents; indeed the Service Desk is the owner of all incidents. The process is mostly
reactive. To react efficiently and effectively therefore demands a formal method of
working that can be supported by software tools.
Goals of Incident Management:
Restore the service as quickly as possible.
Minimum disruption to users work
Management of an incident during its entire lifecycle
Support of operational activities
Figure 4-3. Incident Management: Mission statement
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Incident Management
Definition: Incident, Problem and Known Error

Incident
An event, not part of the standard operation of a service, which causes, or may
cause, an interruption or reduction in the quality of that service
Problem (Unknown Error)
The unknown cause of one or more incidents
(which are not resolved in any case when finalizing the incident)
Normally a problem record is raised only if investigation is warranted.
Known Error
A problem which is successfully diagnosed and for which a workaround has been
identified
Figure 4-4. Incident Management: Definition: Incident, Problem and Known Error
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Incident Management
Tasks
Support of
operational
processes
User Interface
Incident
Incident
Management
Management
Management
Information
Incident Control
Problem Management
Figure 4-5. Incident Management: Tasks
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Help desk and incident control: Even if the incident is transferred to second- or third-level
support, the service desk is responsible for the management of the incident, giving
feedback to the user, and so on.
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Incident Management
Progress control
Responsibility
Reporting
Quality assurance
Incident ownership, monitoring, tracking,

and communication
Activity incident handling

Identification and
registration of incidents
First classification
and support
Yes
Service
Request?
Service Request
Procedure
No
Analysis and diagnosis
Troubleshooting
and recovery
Incident closure
Figure 4-6. Incident Management: Activity incident handling
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Incident management activities:
Incident handling
To restore normal working conditions as quickly as possible
Incident monitoring
Registration of incidents

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Incident Management
The status of an incident reflects its current position in its lifecycle

Incident detection
and recording
new
accepted
Classification
and initial support
planned
Yes
Service
Request?
Service Request
Procedure
No
assigned
in process
Investigation and
diagnosis
on hold
Resolution
and recovery
Incident closure
solved
closed
Figure 4-7. Incident Management: The status of an incident reflects its current position in its lifecycle
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Notes:
The status of an Incident reflects the current position in its lifecycle, sometimes known as
its workflow position. Everyone should be aware of each status and its meaning. Some
examples of status categories might include:
New
Accepted
Scheduled
Assigned/dispatched to specialist
Work in progress (WIP)
On hold
Resolved
Closed
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Throughout an Incident lifecycle, it is important that the incident record be maintained. This
allows any member of the service team to provide a customer with an up-to-date progress
report. Examples of update activities include:
Update history details
Modify status (such as new to work-in-progress or on hold)
Modify business impact or priority
Enter time spent and costs
Monitor escalation status
An originally reported customer description may change as the incident progresses. It is,
however, important to retain the description of the original symptoms, both for analysis and
so that you can refer to the complaint in the same terms used in the initial report. For
example, the customer may have reported a printer not working, which is found to be have
been caused by a network failure. When responding to the customer, it is better initially to
explain that the printer incident has been resolved rather than to talk about resolution of
network problems.

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Service Desk
Data center
Data center
operation
operation
Net operation
Net operation
Organization
Organization
Other sources
Other sources
Report of an incident
Ownership, tracking,
Ownership,
evaluation, tracking,
information
evaluation, information
Incident detection and recording

CMDB
CMDB
Classification and initial support

Service
Request?
Process for Service Request
Investigation and diagnosis

Resolution and recovery
Problem
Problem
errors
errors
DB
DB
Incident closure
Incident closure
Change
Management
9
Figure 4-8. Relationship with other IT services
Problem
Management
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Incident Management
Use of standard registration, documentation,

and methods is basis of success
Data about an incident
Identification &
and support
Service
Request?
Yes
Service Request
Procedure
No
Troubleshooting and recovery
Reporter of the incident

Name, user ID
Phone number
Department
Department number
Affected person
Incident ID
Date, time
Status
Effect, severity,
priority
Service Level
Affected system
Inventory number, CI ID
Class/ type/ model
Symptom description
Category
Free text description
Problem editor
Transfer to
Performed actions
Solution
Date, time
Category
History
Incident Closure
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Figure 4-9. Incident Management: Use of standard registration, documentation, and methods is basis of success
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Incident Management
Classification: Find service affected,

match against SLA, and assign priority
Identification &
Classification:
and support
Service
Request?
Yes
Impact
Service Request
Procedure
Reflects business criticality of the incident

Reflects extent to which an incident leads to
degradation of SLA, such as number of users that
suffer
Urgency
Reflects required speed of solving an incident
Workload
Reflects expected effort to solve the incident
Priority
Reflects order in which to solve the incidents
No
Troubleshooting and recovery
Incident Closure
Priority = Impact x Urgency

11
Figure 4-10. Incident Management: Classification: Find service affected, match against SLA, and assign priority
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Notes:
One of the important aspects of managing an incident is to define its priority: how
important it is, and its impact on the business. The responsibility for its definition lies with
Service Level Management within the parameters set in the Service Level Agreement
(SLA). The priority with which incidents need to be resolved, and therefore the amount of
effort to be put into the resolution of, and recovery from, incidents, will depend upon:
Impact on the business
Urgency to the business
Size, scope, and complexity of the incident
Resource availability, for coping in the meantime, and for correcting the fault.
Impact is a measure of the business criticality of an incident or problem, often equal to the
extent to which an incident leads to degradation of agreed service levels. Impact is often
measured by the number of people or systems affected. Criteria for assigning impact
should be set up in consultation with the business managers and formalized in SLAs.

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Incident Management
Priority order for handling incidents is primarily defined by impact

and urgency
Urgency
A simple priority matrix example
Priority 2
Priority 1
Limited
damage, should
be recovered
immediately
Significant
damage, must be
recovered
immediately
Priority 4
Priority 3
Limited damage,
does not need
to be recovered
immediately
Significant damage,
does not need
to be recovered
immediately
Impact
12
Figure 4-11. Incident Management: Priority order for handling incidents is primarily defined by impact and urgency
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Incident Management
Each priority is related to a certain recovery time
Priority 1: Significant damage, must be

recovered immediately
1 hour
Priority 2: Limited damage, should be

recovered immediately
2 hours
Priority 3: Significant damage, does not

need to be recovered immediately
4 hours
Priority 4: Limited damage, does not need

to be recovered immediately
8 hours
13
Figure 4-12. Incident Management: Each priority is related to a certain recovery time
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Incident Management
This results in an appropriate escalation
Functional versus hierarchical escalation
Managing
Board
Information / Support
(Escalation)
Hierarchical
Escalation
Incident Mgt.
Functional
Escalation
Transfer or integration of further knowledge carriers

14
Figure 4-13. Incident Management: This results in an appropriate escalation
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Notes:
Escalation is the mechanism that assists timely resolution of an incident. It can take place
during every activity in the resolution process.
There are two levels of escalation possible:
Hierarchical (vertical escalation): for example, asking management for more human
resources, equipment, or both (exception)
Functional (horizontal escalation): for example, ask a specialist (second-line support)
Transferring an incident from first-line to second-line support groups or further is called
functional escalation, and primarily takes place because of a lack of knowledge or
expertise. Preferably, functional escalation also takes place when agreed time intervals
elapse. The automatic functional escalation based on time intervals should be planned
carefully and should not exceed the (SLA) agreed resolution times.
Hierarchical escalation can take place at any moment during the resolution process when it
is likely that the resolution of an incident will not be in time or satisfactory. In case of a lack
of knowledge or expertise, hierarchical escalation is generally performed manually (by the

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Service Desk or other support staff). Automatic hierarchical escalation can be considered
after a certain critical time interval, when it is likely that a timely resolution will fail.
Preferably, this takes place long enough before the (SLA) agreed resolution time is
exceeded so that corrective actions by authorized line management can be carried out, for
example hiring third-party specialists.

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Incident Management
Escalation
Objective of an escalation or escalation procedure is the avoidance or minimizing
of material or immaterial damage. The definition of an escalation comprises:
escalation trigger
escalation measures
escalation levels
The combination of the three keys results in an
escalation matrix with escalation paths
The escalation procedures should be clearly agreed between all involved parties.
Escalation can usefully improve service provision only if it is accepted by all
parties.
Escalation should not be misused as a proof of guilt.
15
Figure 4-14. Incident Management: Escalation
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Incident Management
Escalation Trigger and Measures

Escalation trigger
The escalation trigger indicates at which opportunity, state, or incident the procedure of
processing a problem will be intensified, increased, or changed in order to recover the
service.
after exceeding the reaction time

one hour before the expiration of the recovery time
when exceeding the recovery time
after the third transfer
VIP
Escalation measures
Once an escalation has been released, incident processing is intensified, increased, or
changed in order to recover the service. This results in raising of three general possible
measures:
Organisational measurements, such as calling in third level or the vendor;
Information, such as to the higher hierarchical level;
Increased assignment of resources: budget, staff, material
16
Figure 4-15. Incident Management: Escalation Trigger and Measures
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Escalation Escalation Levels

Escalation Levels
Escalation levels ensure that for repeated occurrences of an escalation trigger,
the according measures are intensified, increased, or changed.
Reasons for increasing the escalation level can be the following:
threatening exceeding or already expired reaction time;
threatening exceeding or already expired recovery time;

very high priority of the disrupted service
17
Figure 4-16. Incident Management: Escalation Escalation Levels
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Incident Management
Escalation Example of an Escalation Matrix

Escalation steps
Priority
Measures
1
2
3
4
5
18
very urgent
and very
important
to inform
urgent and
important
to inform
urgent and
not important
to inform
not urgent
and important
to inform
not urgent
and not
important
to inform
measures
measures
measures
measures
measures
Figure 4-17. Incident Management: Escalation Example of an Escalation Matrix
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Incident Management
Input and Output

Output
Input
Incident reports from Service Desk
Management
and Monitoring
Information about users, system

configuration, service levels
Information about solutions, tested

workarounds
Information about changes

performed
19
Requests for change to Change

Information about incidents or
problems to Problem Management
Solved and closed incidents

Information to the user
Reports to management
Figure 4-18. Incident Management: Input and Output
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Incident Management
Benefits
Reduced business impact of incidents by timely resolution

Proactive identification of possible enhancements
Management information related to business-focused SLA
Improved monitoring
Improved management information related to aspects of service
Better staff utilization: no more interruption-based handling of incidents
Elimination of lost incidents and service requests
Better CMDB information
Better user/customer satisfaction
20
Figure 4-19. Incident Management: Benefits
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Risks
Potential problem areas:
No management/staff commitment, hence no resources

Lack of clarity of business needs
Badly-defined service goals
Working practices not reviewed or changed
No service levels defined with customer
Lack of knowledge on resolving incidents
The quality of the Configuration Database
No integration with other processes
Resistance to using process
21
Figure 4-20. Incident Management: Risks
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IBM Global Services
Incident Management
Best Practices
Integration with Service Level Management

Qualified processing of requests instead of simple transfer
More important than just a cost reduction is the increase of the companys
efficiency
Separation of incident and problem management
22
Figure 4-21. Incident Management: Best Practices
SM251.0
Notes:
The integration with Service Level management means that the service desk is aware of
the availability and constraints within the provision of services.
Some service desks may have just a "dispatching" role concerning incoming calls, and
other individuals may then have to handle the incoming incidents from a technical point of
view. It would be preferable, however, to have broad-skilled service desk operators who do
handle the incidents themselves, rather than just registering calls and routing them.
Interpersonal skills are essential for service desk personnel, as every contact with the
customer is an opportunity to improve the customers perception of the IT function.
Consider how many of your technical staff are currently skilled and trained to manage the
customer interface for your department or organization.
Support departments often mistake quick fixes for good service. In some cases, this is, of
course, true. The customer wants a fix or response, but knows that this is not always
practical. It is important to engender in customers and users the confidence that, once an
incident has been reported, it will be professionally managed. If that confidence is not
present, they may revert to calling their favorite support specialist and bypass the service
desk. In some cases, they might stop calling on IT altogether.

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Incident Management
Summary
The goal of incident management is to restore normal service operation, within Service
Level Agreement limits, as quickly as possible, after an incident has occurred to that
service, and to minimize the adverse impact on business operations.
Incident Management process

Incident closure
Prioritization primarily determined by impact on business and urgency with which a

resolution or workaround is needed; correct prioritization enables optimum staffing and
use of other resources to customer satisfaction.
Escalation (functional and hierarchical)
23
Figure 4-22. Incident Management: Summary
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Unit 5. Problem Management

This unit is an introduction to Problem Management, and its
relationship within IT Services.

mission of this service, and understand its benefits within the ITIL
framework.

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Unit 05
Problem Management
Content:
Problem Management objective and overview

Some definitions
Important aspects
Incidents, problems, and changes
Proactive/reactive problem management
Benefits, costs, risks

Best practices
Summary
Figure 5-1. Unit 05: Problem Management
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Notes:
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Problem Management
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Figure 5-2. Problem Management: Integration into the IPW Model
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Problem Management
Mission statement
The goal of Problem Management is to minimize the adverse impact of
Incidents and problems on the business that are caused by errors within
the IT Infrastructure, and to prevent recurrence of incidents related to these
errors.
In order to achieve this goal, Problem Management seeks:
To find the root cause of problems and to initiate corrective action
Permanently reduce number and severity of incidents and problems by

identifying improvements in the infrastructure
2 aspects:
Reactive: identify and solve problems in response to one or more incidents

Proactive: analyze trends of incidents, and identify and solve problems
before they occur
Figure 5-3. Problem Management: Mission statement
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Problem Management
Some definitions: Problem, Known Error, and RFC
Problem
The unknown cause of one (significant) incident or multiple incidents exhibiting
common symptoms (which are not resolved in any case when finalizing the
incident)
Normally a problem record is raised only if investigation is warranted.
Known Error
A problem that is successfully diagnosed and for which a workaround has been
identified
Request for Change (RFC)
Request for Change to any component of an IT infrastructure or to any aspect of
an IT service
Figure 5-4. Problem Management: Some definitions: Problem, Known Error, and RFC
SM251.0
Notes:
A problem is a condition often identified as a result of multiple incidents that exhibit
common symptoms. Problems can also be identified from a single significant incident,
indicative of a single error, for which the cause is unknown, but for which the impact is
significant.
A known error is a condition identified by successful diagnosis of the root cause of a
problem, and the subsequent development of a workaround.
Structural analysis of the IT infrastructure, reports generated from support software, and
user-group meetings can also result in the identification of problems and known errors.
This is proactive Problem Management.
Problem control focuses on transforming problems into known errors. Error control focuses
on resolving known errors structurally through the Change Management process.

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Problem Management
Tasks
Incident
Management
Problem
Control
Incident Control
Problem
Problem
Management
Management
Management
Information
Error Control
RFCs
Change
Management
Figure 5-5. Problem Management: Tasks
SM251.0
Notes:
The Problem Management process is intended to reduce both the number and severity of
incidents and problems on the business. Therefore, part of Problem Management's
responsibility is to ensure that previous information is documented in such a way that it is
readily available to first-line and other second-line staff. This is not simply a matter of
producing documentation. What is required includes:
The information to be indexed so that it is easily referenced by simple and detectable
triggers from new incidents
Regular inspection to ensure the continued relevance of documentation in the light of
changing:
- Technology
- Available external solutions
- Business practices and requirements
- In-house skills
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- Frequency and impact of recurring incidents

- Interpretation of internal best practice
That the process should be subject to a detailed review
Staff using the information to be trained to understand the depth and power of the
information available, how to access and interpret it, and their role in providing feedback
on its relevance and ease of use
A suitable repository for the information, typically based on an integrated Service
Management tool which can capture it at logging or first-analysis stage of the incident
handling process.

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Problem Management
Scope
Problem control, error control, and proactive Problem Management are all
within the scope of the Problem Management process
Problem Control:
Handle problems in an effective way. Identify root cause (CI at fault), and provide
the Service Desk with information and workaround. Similar to incident control, but
more carefully managed to avoid reoccurrence.
Error Control:
Progresses from known errors until elimination by implementation of a change.
Proactive Problem Management:
Analysis of trends from incident records provides view on potential problems
before they occur
Figure 5-6. Problem Management: Scope
SM251.0
Notes:
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Problem Management
Activity: Problem Control

Problem Control is concerned with:
Progress Control
Identification and
Registration
Problem identification and recording: if

incidents cannot be matched against known
errors and problems, or are recurring. Also
when major Incident occurs.
Problem classification: determine effort
Classification
Responsibility
required to detect and recover failing CI.

Impact on service levels assessed. CMDB
helps! Determine: category, impact, urgency,
priority.
Problem investigation and diagnosis:

leading to a known error (which includes a
workaround for the associated incident). Find
underlying cause. Procedural errors do not
become known errors. These problems are
closed with appropriate categorization code.
Assign Resources
Reporting
Investigation and
Diagnosis
Quality Control
Definition
Known Error
Figure 5-7. Problem Management: Activity: Problem Control
SM251.0
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Problem Management
Activity: Error Control

Error control covers the processes involved in successful correction of known errors.
The objective is to change IT components to remove known errors affecting the IT
infrastructure, and thus to prevent any recurrence of incidents.
Error identification and recording:
faulty CI is detected, and known error

status is assigned.
Error assessment: initial
assessment of means required to
solve the problem and raising of an
RFC.
Recording error resolution: solution
for each known error should be in the
PM system, made available for
incident matching
Error closure: After successful
implementation of the change, the
error is closed together with all
associated Incident records.
Monitoring problem and error
resolution progress: Change
management is responsible for
implementing RFCs, but error control
is responsible for monitoring progress
in resolving known errors.
Progress Control
Responsibility
Reporting
Error Identification &

Recording
Error Assessment
Record Error Solution
RFC
Change successful
Quality Control
Close Error and

Associated Problems
Figure 5-8. Problem Management: Activity: Error Control
SM251.0
Notes:
Error identification and recording: faulty CI is detected, and known error status is
assigned.
Error assessment: initial assessment of means required to solve the problem and raising
of an RFC. The actual work done is under control of Change Management. Also the
decision can be that some errors are not solved because, for example, it is too expensive.
Recording error resolution: solution for each known error should be in the PM system,
made available for incident matching.
Error Closure: After successful implementation of the change, the error is closed, together
with all associated incident records. Potentially, interim status given.
Monitoring problem and error resolution progress: Change Management is
responsible for implementing RFCs, but error control is responsible for monitoring progress
in resolving known errors and the continuing impact of the problem. Hence close
interaction between both (PM might raise CAB). Monitoring against SLA should happen.

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Problem Management
Activity: Proactive Problem Management

Proactive problem management activities are concerned with identifying and
resolving problems and known errors before Incidents occur, thus minimizing
the adverse impact on the service and business-related costs.
Trend analysis: identify fragile components and their

reason. Requires availability of sufficient historical data.
Targeting support action: towards problem areas

requiring most support time, or causing most impact to
the business (volume of incidents, number of users
impacted, cost to the business).
Providing information to organization: Providing insight

in effort and resources spent by organization in
diagnosing and resolving problems and known errors to
management. Also information on workarounds,
permanent fixes, and status information should be given
to Service Desk.
10
Figure 5-9. Problem Management: Activity: Proactive Problem Management
SM251.0
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Problem Management
Reporting
Reporting on problem management serves an internal purpose as well as an
external purpose
Items that can be reported to IT management:
Time spent on research and diagnosis
Brief description of actions taken
Planning unresolved problems with regard to use of people, use of tools, and costs
Problems categorized into: status, service, impact, category, user group
Turnaround time of closed problems
Elapsed time and expected resolution period for unresolved problems
Temporary corrective actions
Items that are important for Service Level Management
Number of problems categorized into: user group, category, impact, service
Turnaround time of closed problems
Expected solution period for unresolved problems
Items that are important for Service Desk
Status of problems
Information on bypasses
11
Figure 5-10. Problem Management: Reporting
SM251.0
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Problem Management
Reactive - Proactive
Reactive
Proactive
Avoid problems in other

systems and applications
Monitoring of change management

Initiate changes in order to avoid:
- the occurrence of incidents
- the reoccurrence of incidents
Identify trends
Problem identification and problem diagnosis
2nd / 3rd level support for incidents
12
Figure 5-11. Problem Management: Reactive - Proactive
SM251.0
Notes:
Problem Management should focus on proactive function.
When Problem Management is introduced in an organization, its main focus is reactive. But
this process should ideally mature from reactive to proactive, otherwise improvement is
necessary.

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IBM Global Services
The Complete Picture

Incident Mgmt
Problem Control
Error Control
Registration
Registration
Identification
Identification
identification
identification
Recording
Recording
Recording
Recording
Recording
Recording
Classification
Classification
Assessment
Assessment
Change Mgmt
Change
Change
Management
Management
Problem?
Support
Support
Diagnosis
Diagnosis
Diagnosis
Diagnosis
Error?
Assign
RFC?
Tracking
Tracking
Service
Request?
Tracking
Tracking
Tracking
Tracking
Classification
Classification
Problem Resolution
Problem Resolution
Solution
Solution
Error / problem
Error / closure
problem
Incident
Incident closure
Diagnosis
Diagnosis
Change
Change
Evaluation
(PIR)
Evaluation (PIR)
Resolution
Resolution
Process for Service Requests
Incident closure
Incident closure
13
Figure 5-12. The Complete Picture
SM251.0
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Problem Management
Benefits
The benefits of taking a formal approach to problem management include
the following:
Improved IT service quality: removal of structural errors improves quality of

service
Incident volume reduction: Structural errors generating Incidents are

removed
Permanent solutions: Problems resolved stay resolved

Improved knowledge on organization: Problem Management learns from
past experience, using historical data to identify trends
Higher first call resolution rate at Service Desk: Problem management

creates incident workaround data for rapid incident closure
14
Figure 5-13. Problem Management: Benefits
SM251.0
Notes:
Improved IT service quality. Problem Management helps generate a cycle of rapidly
increasing IT service quality. High-quality reliable service is good for the business users
of IT, and good for the productivity and morale of the IT service providers.
Incident volume reduction. Problem Management is instrumental in reducing the
number of incidents that interrupt the conduct of business.
Permanent solutions. There will be a gradual reduction in the number and impact of
problems and known errors as those that are resolved stay resolved.
Improved organizational learning. The Problem Management process is based on the
concept of learning from past experience. The process provides the historical data to
identify trends, and the means of preventing failures and of reducing the impact of
failures, resulting in improved user productivity.
Better first-time fix rate at the Service Desk. Problem Management enables a better
first-time fix rate of incidents at the Service Desk, achieved via the capture, retention,
and availability of incident resolution and workaround data within a knowledge
database available to the Service Desk at call logging.

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Problem Management
Risks
Simultaneous assignment of support agents to incident and problem

management
Less common tools of the individual departments

Insufficient communication between system development and problem
management in regard to known errors
Lack of discipline in the support team

Note: While Incident Management focuses on quick resolution of incidents,
Problem Management analyzes the root cause of incidents.
15
Figure 5-14. Problem Management: Risks
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Problem Management
Best Practices
Make a clear separation between incidents and

problems (clear fields of responsibility with their
own measurement criteria and KPIs)
Focus on minimizing or avoidance of incidents

In addition to the production environment, the
Incident Management
(fighting fires)
development environment should also be involved

in the process.
Problem Management
(find root cause)
16
Figure 5-15. Problem Management: Best Practices
SM251.0
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Problem Management
Summary
The goal of problem management is to minimize the impact of incidents and problems
on the business that are caused by errors within the IT infrastructure and to prevent
recurrence of incidents related to these errors.
Stabilize IT services, through:

minimizing the impact of incidents (quick fix)
tracing (and removing) errors in the IT infrastructure to obtain the highest possible
stability of IT services, both reactively and proactively
Better use of resources
Problem management activities

Problem control
Error control
Proactive problem management
Problem: the root cause is known

Known error: root cause is known, a workaround is provided, but the definitive fix is not
provided
Proactive - Reactive
17
Figure 5-16. Problem Management: Summary
SM251.0
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Unit 6. Change Management

This unit is an introduction to Change Management, and its

framework.

6-1
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Unit 06
Change Management
Content:
Change Management objective and overview

Some definitions
Important aspects:
RFC content
Categorization and prioritization of changes
Change Advisory Board (CAB)
Interface to other processes
Benefits and risks

Best practices
Summary
Figure 6-1. Unit 06: Change Management
SM251.0
Notes:
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Change Management
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Figure 6-2. Change Management: Integration into the IPW Model
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Notes:

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Change Management
Mission Statement
Change Management ensures that standardized methods and procedures are
used for efficient and prompt handling of all changes, to minimize the impact of
change-related incidents on service quality, and to improve the day-to-day
operations of the organization.
Goal of Change Management:
Efficient
Efficientand
andcost-saving
cost-saving
implementation
implementationof
of
authorized
authorizedchanges
changes
with
with minimum
minimumrisk
risk
for
forexisting
existingand
andnew
newIT
ITinfrastructure
infrastructure
Figure 6-3. Change Management: Mission Statement
SM251.0
Notes:
Changes arise as a result of problems, but many changes can come from proactively
seeking business benefits such as reducing costs or improving services. The goal of the
Change Management process is to ensure that standardized methods and procedures are
used for efficient and prompt handling of all changes, in order to minimize the impact of
change-related incidents upon service quality, and consequently to improve the
day-to-day operations of the organization.
To make an appropriate response to a change request entails a considered approach to
assessment of risk and business continuity, change impact, resource requirements, and
change approval. This considered approach is essential to maintain a proper balance
between the need for change against the impact of the change.
It is particularly important that Change Management processes have high visibility and
open channels of communication in order to promote smooth transitions when changes
take place.
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Change Management
Some definitions
Change:
Process of moving from one defined state to another

Request for Change (RFC)
Request for Change to any component of an IT infrastructure or to any aspect of

an IT service
Change Advisory Board (CAB):
Body which approves changes and assists Change Management in assessment

and prioritization of changes
CAB/EC:
CAB Emergency Committee. Convened for urgent changes, or when emergency

decisions have to be made.
Post Implementation Review (PIR):
Assessment of implemented changes after a predefined period of time.

5
Figure 6-4. Change Management: Some definitions
SM251.0
Notes:
A problem is a condition often identified as a result of multiple incidents that exhibit
common symptoms. Problems can also be identified from a single significant incident,
indicative of a single error, for which the cause is unknown, but for which the impact is
significant.
A known error is a condition identified by successful diagnosis of the root cause of a
problem, and the subsequent development of a workaround.
Structural analysis of the IT infrastructure, reports generated from support software, and
user-group meetings can also result in the identification of problems and known errors.
This is proactive Problem Management.
Problem control focuses on transforming problems into known errors. Error control focuses
on resolving known errors structurally through the Change Management process.
When major problems arise, there may not be time to convene the full Change Advisory
Board (CAB), and it is therefore necessary to identify a smaller organization with authority
to make emergency decisions. Such a body is known as the CAB Emergency Committee

6-5
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(CAB/EC). Change procedures should specify how the composition of the CAB and
CAB/EC will be determined in each instance, based on the criteria listed above and any
other criteria that may be appropriate to the business. This is intended to ensure that the
composition of the CAB will be flexible, in order to represent business interests properly
when major changes are proposed. It will also ensure that the composition of the CAB/EC
will provide the ability, both from a business perspective and from a technical standpoint, to
make appropriate decisions in any conceivable eventuality.
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Change Management
Why Change Management is so important
IT becomes an increasingly critical factor for business. Business demands

continuous change as new technologies are adopted. Users demand
increasing services in order to be able to fulfil their tasks. All these factors
require an IT environment in which management and control of changes are
very precisely managed.
Experience shows that a high percentage of problems with regard to IT

service quality can be traced back to a change of a system. Such problems
cause enormous costs and are becoming less acceptable.
This module describes the best practices for change management; they
impact the implementation of many other ITSM best practices. Finally, each
development - either relating to capacity management or a service desk corresponds with changes which again stand for a risk. That is why a very
strict procedure for effective change management makes sense.
Figure 6-5. Change Management: Why Change Management is so important
SM251.0
Notes:

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Change Management
Tasks
Management of RFCs
(change requests)
Authorize and
plan changes
Change
Change
Management
Management
Review of all
implemented
changes
Monitoring of change
realization, testing,
and implementation
Figure 6-6. Change Management: Tasks
SM251.0
Notes:
Most activities of change management involve control and decide (approval or rejection).
Changes must be carefully managed throughout their entire lifecycle from initiation and
recording, through filtering, assessment, categorization, authorization, scheduling, building,
testing, implementation, and eventually their review and closure. One of the key
deliverables of the process is the Forward Schedule of Change (FSC), a central
programme of change agreed by all areas, based on business impact and urgency.
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Change Management
The Process
RFC
Implementation
Management
RFC Preparation
Classification
Prioritization
Approval
Planning
Realization
Rejection
CAB
Test
Authorization
Rejection
Implementation
Evaluation/PIR
Backout
Figure 6-7. Change Management: The Process
SM251.0
Notes:
Implementation and management activities within change management.

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IBM Global Services
Acceptance and
Documentation
PIR
Proof of Success
Release
ReleaseManager
Manager
Implementation
Control and
Authorization
Decline
/ Reject
Test
Test
Service
ServicePlanning
Planning
Building
Control and Approval

Realization of
Simple Changes
Changes
Review
End
Rejected
Scheduling
and Planning
Processing/
Classification
-Registration-
RFC
RFC
Figure 6-8. The Process Steps
SM251.0
Notes:

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Change Management
Content of a Request for Change (RFC)

Sponsor and
Change
Requester
Change
Advisory Board
(CAB)
Software
Hardware
CIs
CIs
SLA
and so on
Documentation
and so on
Environment
Purpose
RFC
RFC
What? Why?
When?
10
Category
Priority
Resource
Cost
Estimation
Impact on
Business
Services
Figure 6-9. Change Management: Content of a Request for Change (RFC)
SM251.0
Notes:
Requests for Change (RFCs) are triggered for a wide variety of reasons, from a wide
variety of sources. The reasons include:
Required resolution of an incident or problem report
User or customer dissatisfaction expressed via customer liaison or Service Level
Management
The proposed introduction or removal of a new CI
Qproposed upgrade to some component of the infrastructure
Changed business requirements or direction
New or changed legislation
Location change
Product or service changes from vendors or contractors.

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RFCs can be concerned with any part of the infrastructure or with any service or activity.
Here are some examples:
Hardware
Software
Documentation
Telecommunications facilities
Engineering cover
Training courses
IT infrastructure management procedures
Tactical plans
Environmental infrastructure
RFCs can, of course, be in paper form, or as is increasingly the case be held
electronically, perhaps on the company intranet.
The following items should be included in an RFC form, whether paper or electronic:
RFC number (plus cross-reference to problem report number, where necessary)
Description and identity of item(s) to be changed (including CI identification(s) if
Configuration Management system is in use)
Reason for change
Effect of not implementing the change
Version of item to be changed
Name, location, and telephone number of person proposing the change
Date that the change was proposed
Change priority
Impact and resource assessment (which may be on separate forms where convenient)
CAB recommendations where appropriate (which may be held separately, with impact
and resource assessments, where convenient)
Authorization signature (could be electronic)
Authorization date and time
Scheduled implementation (release identification, date and time, or both)
Location of release or implementation plan

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Change Management
Categorization: Minor Significant Major

Category of changes is based on impact to environment (risk to the business).
Category 1 (Minor Changes):
Minor impact only, and few build or additional runtime resources required. The
Change Manager should have delegated authority to authorize and schedule such
changes.
Category 2 (Significant Changes):
Significant impact, significant build or runtime resources required, or both.
The Change Advisory Board should be convened in order to authorize and schedule
such changes.
Category 3 (Major Changes):
Major impact, very large amount of build or runtime resources required, or both; or
impact likely upon other parts of the organization.
The RFC should be referred to the organization's top Management Board or other
appropriate body for discussion and a policy decision.
11
Figure 6-10. Change Management: Categorization: Minor Significant Major
SM251.0
Notes:
The issue of risk to the business of any change should also be considered prior to the
approval of any change. Change Management should examine each RFC and decide how
to proceed based on the (predefined) category into which the RFC falls. The categorization
process examines the impact of the approved change on the organization in terms of the
resources needed to effect the change. Note that the structure and complexity of these
categories will very much depend on the needs of the business, including the range of
priority ratings identified

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Change Management
Prioritization
Every RFC should be allocated a priority that is based on the impact of the
problem and the urgency of the remedy.
Immediate:
Causing loss of service or severe usability problems to a larger number of users, a
mission-critical system, or some equally serious problem. Immediate action required.
High:
Severely affecting some users, or impacting a large number of users.
To be given highest priority for change building, testing, and implementation resources.
Medium:
No severe impact, but rectification cannot be deferred until the next scheduled release or
upgrade. To be allocated medium priority for resources.
Low:
A change is justified and necessary, but can wait until the next scheduled release or
upgrade. Resources to be allocated accordingly.
12
Figure 6-11. Change Management: Prioritization
SM251.0
Notes:
Every RFC should be allocated a priority that is based on the impact of the problem and
the urgency for the remedy. This priority rating is used to decide which changes should be
discussed and assessed first, either by Change Management or by the CAB if necessary.
Change Management should be responsible for assigning this priority. The priority of RFCs
ideally should be decided in collaboration with the initiator and, if necessary, with the CAB;
but it should not be left to the initiator alone, as a higher priority than is really justified may
result. Risk assessment is of crucial importance at this stage. The CAB will need
information on business consequences in order to assess effectively the risk of
implementing or denying the change.

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Change Management
Composition of the Change Advisory Board (CAB) should reflect user,
customer, and service provider view
Manager
Finance Dept
Change
Manager
(Executive)
Service Level
Manager
CAB/EC
CAB/EC
Application
Manager
CAB
CAB
Release Manager
Problem
Manager
Experts,
Technical
Consultants
Services Staff
CAB/EC = Emergency Committee

13
Figure 6-12. Change Management: Composition of the Change Advisory Board (CAB) should reflect user, customer, and service
provider view
SM251.0
Notes:
The Change Advisory Board (CAB) is a decision authority, which is made up for the most
part of people from other functions within the organization. Note also that it is Configuration
Management who are responsible for ensuring that information regarding the possible
implications of a proposed change is made available, and that these possible impacts are
detected and presented appropriately. There will also be a need to have managers from
different areas of the organization within the CAB. The Change Manager is the executive
authority within the CAB. CAB is an ITIL term.
There will be occasions when a proposed infrastructure change will potentially have a
wider impact upon other parts of the organization (such as application development
projects or business operations), or vice versa. To mitigate possible negative impacts from
either direction, it is imperative that the infrastructure and other Change Management
systems be appropriately interfaced.

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IBM Global Services
Change Management
Optimization can be reached through correlation of RFCs on related CIs
Original request for
Original request for
change
change
Software CI to be
changed
Correlating
operating CI
Correlating
education CI
Correlating
hardware CI
Summarized request for change

Summarized request for change
Realistic impact of changes and reduction of bureaucratic expenditure
14
Figure 6-13. Change Management: Optimization can be reached through correlation of RFCs on related CIs
SM251.0
Notes:
Configuration Management enables visualization of related CIs. Thus it is possible to
globally estimate the impact of an RFC in the whole IT environment. It would be useful to
consider the impact of an RFC on related CIs; this will give the support team a better view
of the realistic impact on the business, and will reduce bureaucratic expenditure.

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Change Management
Interfaces to other SM processes (1)

Initiate change
Identify affected CIs
Capacity
CapacityManagement
Management
Configuration
ConfigurationManagement
Management
Determine effects of
planned changes
Service
ServiceDesk
Desk
Reports
Problem
ProblemManagement
Management
Security
SecurityManagement
Management
RFC
Account
AccountManagement
Management
(for
(forcustomers)
customers)
Capacity
CapacityManagement
Management
Change
Management
Process
Service
ServiceBuild
Buildand
andTest
Test
Availability
Availabilityand
andITITServices
Services
Continuity
ContinuityManagement
Management
Transfer
Service
ServiceLevel
LevelManagement
Management
......
Financial
FinancialMgmt
MgmtITITServices
Services
Change Report
Status
Distribution
ManagementData
DataBase
Base
Configuration
Security
SecurityManagement
Management
Update CMDB
Release
ReleaseManagement
Management
Configuration
Management
Inform customers
Service
ServiceDesk
Desk
15
Generate new services

Service
ServiceDesign
Design
Figure 6-14. Change Management: Interfaces to other SM processes (1)
SM251.0
Notes:

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IBM Global Services
Change Management
Interfaces to other SM processes (2)
Configuration
Management
Change
Change
Management
Management
Determine
impact
Approve
change
Capacity
Capacity
Management
Management
Configuration
Configuration
Management
Management
Determine
impact on
business and
IT performance
Determine
affected areas
16
Release
Release
Management
Management
Check distribution
of new software
or, if required, the
hardware change
Configuration
Configuration
Management
Management
Documentation
update CMDB
Figure 6-15. Change Management: Interfaces to other SM processes (2)
SM251.0
Notes:

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Change Management
Benefits
Better alignment of IT services to business requirements
Increased visibility and better communication of changes
Improved risk assessment
Reduced adverse impact of changes on service quality and SLA
Fewer backed out failed changes
Better problem and availability management due to management information on
accumulated changes
Better productivity of users (fewer disruptions, better service quality)

Better productivity of IT staff, as duties are better planned, and fewer wrong changes
Ability to absorb larger volume of changes
Better perception of IT by the business
Reduction in number of changes with adverse impact because of poor CM
Reduction in number of incidents because of changes
Low number of urgent changes
17
Figure 6-16. Change Management: Benefits
SM251.0
Notes:

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IBM Global Services
Change Management
Risks
Tracking of the change lifecycle easily leads to overload for a paper-based system
Employees try to bypass change management
Untested backup procedures failing blackout procedures
Integration of external suppliers
Cultural conflicts lacking acceptance of the change management process
Frequent refusal due to lack of strategic expedience
Possible stagnancy due to continuous analyses
18
Figure 6-17. Change Management: Risks
SM251.0
Notes:

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Change Management
Best Practices
Concurrent integration with configuration and release management

Include the development environment in the change management process
separately from the production environment
Assign process responsibility, if possible, independently from the organisations

hierarchy
Conceive separate procedure for urgent changes and standard changes instead of
using the normal change management process
19
Figure 6-18. Change Management: Best Practices
SM251.0
Notes:

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Change Management
Summary
The goal of the change management process is to ensure that standardized
methods and procedures are used for efficient and prompt handling of all changes,
in order to minimize the impact of change-related incidents upon service quality,
and consequently to improve the day-to-day operations of the organization.
Implement only authorized changes; minimize risk and costs.

Request for Change (RFC) applies to all components of the IT infrastructure
Tasks
Requests for change management, authorize and plan changes, monitor
realization, test and implementation, support the ongoing needs of business
CAB and Emergency Committee
Severity/Priority: urgent, high, medium, low

Effect - Category: none to significant effect
Back-out procedure
Process is always closed with change review
20
Figure 6-19. Change Management: Summary
SM251.0
Notes:

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Unit 7. Configuration Management

This unit is an introduction to Configuration Management, and its
relationship with IT Services.

framework.

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IBM Global Services
Unit 07
Content:
Configuration Management objective and overview

Some definitions
Important aspects:
Configuration Management Database (CMDB)
Interfaces to other SM processes
Variant and baseline
License management
Best practices
Summary
Figure 7-1. Unit 07: Configuration Management
SM251.0
Notes:
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3
Figure 7-2. Configuration Management: Integration into the IPW Model
SM251.0
Notes:

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IBM Global Services
Mission Statement
Configuration Management provides a logical model for the infrastructure
or a service by identifying, controlling, maintaining, and verifying the
versions of Configuration Items (CIs) in existence.
Configuration Management covers the identification, recording, and reporting of IT
components, including their versions, constituent components, and relationships. Items
that should be under the control of Configuration Management include hardware,
software, and associated documentation.
The goal of Configuration Management is to provide IT infrastructure control through the
identification, registration, monitoring, and management of:
All the Configuration Items of the IT infrastructure in scope
All configurations, versions, and their documentation

All changes, errors, service level agreements, and history of the components in
general
Relationships between the different components

Exceptions between configuration records and the real infrastructure
Figure 7-3. Configuration Management: Mission Statement
SM251.0
Notes:
Configuration Management is concerned with selecting and identifying the configuration
structures for all the infrastructure's CIs, including their owner, their interrelationships, and
configuration documentation. It includes allocating identifiers and version numbers for CIs,
labelling each item, and entering it on the Configuration Management Database
(CMDB). CI and CMDB are both ITIL terms.
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Tasks
Configuration Management is responsible for:
Specification of versions, configuration

status accounting of all current and
historical data concerned with each CI
throughout its lifecycle
Documentation of the relationship

between all CIs
Tracing records about any CI

Ensuring that only authorised changes
IT
IT
Infrastructure
Infrastructure
Planning
Identification
& naming
on a Configuration Item have been

implemented
Status proof
Reviews and audits that verify the

physical existence of CIs and check
that only authorised and identifiable
CIs are accepted and correctly
recorded in the Configuration
Management system.
5
Control
CMDB
Verification
and audit
Figure 7-4. Configuration Management: Tasks
SM251.0
Notes:
CM is responsible for records and data associated with a CI, including incidents, known
errors, and problems, and corporate data about employees, suppliers, locations, business
units, and procedures.

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Definition: Configuration Item

All components that are part of the IT infrastructure are called Configuration Items
(CIs).
Configuration Items:
Are required to provide services

Should be clearly identifiable
Are submitted for changes
Have to be administered
Configuration Items have:
A category
Relationships
An attribute
A status
CI
CI
CI
CI
Figure 7-5. Configuration Management: Definition: Configuration Item
CI
SM251.0
Notes:
CIs may be hardware, software, or documentation. Examples include services, servers,
environments, equipment, network components, desktops, mobile units, applications,
licences, telecommunication services, and facilities. Configuration identification includes
allocating identifiers for CIs, including individual versions of the CI and their configuration
documents. Other records and data associated with a CI include incidents, known errors,
and problems, and corporate data about employees, suppliers, locations, business units,
and procedures.
Examples of CIs:
Personal computers
Network components
Service Level Agreements
Manuals
Applications
What do you think is part of your IT infrastructure?
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Definition: Configuration Item Scope and Level of Detail

Service
L Service
L
e
e
v
v
e
e
l
l
o
o
f
f
d
d
e
e
t
t
a
a
i
i
l
l
Hardware
Hardware
Software
Software
DocumenDocumen- Environment
Environment
tation
tation
Network
printer
PC
Software
bundle
Local
printer
USV
DBMS
HD
Keyboard
CPU
W.P.
e-mail
SLA
scope
scope
7
Figure 7-6. Configuration Management: Definition: Configuration Item Scope and Level of Detail
SM251.0
Notes:
All configuration items that are under control of the IT organization are registered in the
Configuration Management Database (CMDB). CIs have relationships to each other. Every
extra detail will bring more work to keep it up to date.
The scope of the Configuration Management database is defined by the area of
responsibility of the IT organization.
The level of detail is defined by the need for information of the IT management processes,
the control of the information, and the costs and benefits of a CMDB.
The attributes of CIs also depend on the need for information, the control of the
information, and the costs and benefits.
The distinction between Configuration Management and Asset Management is the
recognition of relationships between CIs.

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Examples of these relationships:

Hierarchically subjected to (parent-child relation)
Is part of (a processor is part of a PC)
Interfaced with (a system is connected to a printer)
Uses (a program uses a subroutine)
Is a copy of (program is a copy of ....)
Is related to (attribute) (serial number, location, status)
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Tasks
Configuration
identification
Configuration
Control
Configuration
Configuration
Management
Management
Verification and
Audit
Status
Accounting
Figure 7-7. Configuration Management: Tasks
SM251.0
Notes:
Configuration identification is the selection, identification, and labelling of the configuration
structures and CIs, including their respective owner and the relationships between them.
CIs may be hardware, software, or documentation. Examples include services, servers,
environments, equipment, network components, desktops, mobile units, applications,
licences, telecommunication services, and facilities. Configuration identification includes
allocating identifiers for CIs, including individual versions of the CI and their configuration
documents.
Configuration control is concerned with ensuring that only authorized and identifiable CIs
are recorded from receipt to disposal. It ensures that no CI is added, modified, replaced, or
removed without appropriate controlling documentation, such as an approved change
request.
Configuration status accounting is the reporting of all current and historical data concerned
with each CI throughout its lifecycle. It enables tracking of changes to CIs and their
records, for example tracking the status as a CI changes from one state to another, such as
development, test, live, or withdrawn.

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The first audit must be conducted after the implementation of configuration management.
Furthermore, at regular intervals, verification must take place, in other words the registered
data within the CMDB will be verified with the actual data.

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Configuration Management Database (CMDB) Structure Overview

IT Infrastructure
IT Infrastructure
Hardware
Hardware
Software
Software
Network
Network
Documentation
Documentation
CI Categories
Suite 1
Suite 1
Suite 2
Suite 2
Superordinated CI
(Parent)
Program 1- 1
Program 1- 1
Program 1- 2
Program 1- 2
Program 1- 3
Program 1- 3
Subordinated CI
(Children)
Module 1- 2- 1
Module 1- 2- 1
9
Module 1- 2- 2
Module 1- 2- 2
Figure 7-8. Configuration Management: Configuration Management Database (CMDB) Structure Overview
SM251.0
Notes:
Many organizations are already using some elements of Configuration Management,
often using spreadsheets, local databases, or paper-based systems. In today's large and
complex IT infrastructures, Configuration Management requires the use of support tools,
which includes a Configuration Management Database (CMDB). Physical and electronic
libraries are needed along with the CMDB to hold definitive copies of software and
documentation. The CMDB is likely to be based upon database technology that provides
flexible and powerful interrogation facilities.
The CMDB should hold the relationships between all system components, including
incidents, problems, known errors, changes, and releases. The CMDB also contains
information about incidents, known errors, and problems, and corporate data about
employees, suppliers, locations, and business units.

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ce
wi
th
dr
aw
an
in
m
ai
nt
en
od
pr
(in
Li
ve
in
In
te
s
st
oc
lo
ve
de
in
re
d
or
de
pl
an
ne
pm
en
uc
tio
n
CMDB Status of CI
Lifecycle of a CI
CMDB scope
10
Figure 7-9. Configuration Management: CMDB Status of CI
SM251.0
Notes:
Status is a mandatory attribute of a CI. Also, status accounting is an activity within
Configuration Management. It covers the reporting of all current and historical data
concerned with each CI throughout its lifecycle. This enables changes to CIs and their
records to be traceable, for example tracking the status of a CI as it changes from one state
to another, for instance under development, being tested, live, or withdrawn.

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Interfaces with all other processes

Problem finding and solution process
Start
11
Strategic processes
Incident
Finance
Problem
Architectures
Known error
RFC
Approved change
Configuration
Management
Data Base
(CMDB)
Changed, tested,
implemented
Other modules
Service Level
Management
IT Continuity
Management
Closure
Figure 7-10. Configuration Management: Interfaces with all other processes
SM251.0
Notes:
Configuration Management provides information to other processes of Services
Management.
The Configuration Management process interfaces with all other processes:
Service Desk / Incident Management

Problem Management
Change Management
Release Management
Capacity Management
IT Service Continuity Management
Security Management
Providing accurate information on CIs and their documentation. This information supports
all other Service Management processes, such as Release Management, Change

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Management, Incident Management, Problem Management, Capacity Management, and

Contingency Planning. For example, if a new product is available that requires a minimum
configuration, Configuration Management can provide information for upgrade planning
and replacements.
Controlling valuable CIs. For example, if a computer were stolen then it would have to be
replaced. Configuration Management helps IT management to know what its assets are
supposed to be, who is responsible for their safekeeping, and whether the actual inventory
matches the official one.
Facilitating adherence to legal obligations. Configuration Management maintains an
inventory of all items of software within an IT infrastructure. CIs that come to light, via
configuration audits or calls to the Service Desk, that are not on this list are not authorized,
and may well have not been paid for. Illegal copies can easily be identified, for erasure or
destruction.
Helping with financial and expenditure planning. Configuration Management provides a
complete list of CIs. It is easy to produce from this list expected maintenance costs and
licence fees; maintenance contracts; licence renewal dates; CI life expiry dates; and CI
replacement costs (provided that this information is stored). By providing this information,
Configuration Management contributes to IT directorates' financial planning.
Making software changes visible. Such changes can be used to trigger investigations by IT
management into possible changes that may be needed for data protection, licence
management, and regulatory compliance.
Contributing to contingency planning. The CMDB and secure libraries facilitate the
restoration of IT service in the event of a disaster, by identifying the required CIs and their
location (provided, of course, that they are themselves properly backed up).
Supporting and improving Release Management. Configuration Management information
supports the rollout across distributed locations by providing information on the versions of
CIs and changes incorporated into a release.
Improving security by controlling the versions of CIs in use. This makes it more difficult for
these CIs to be changed accidentally, maliciously, or for erroneous versions to be added.
Enabling the organization to reduce the use of unauthorized software. Unauthorized
software, and non-standard and variant builds, all increase complexity and support costs,
and so any reduction in their occurrence should bring benefits to the organization.
Allowing the organization to perform impact analysis and schedule changes safely,
efficiently, and effectively. This reduces the risk of changes affecting the live environment.
Providing Problem Management with data on trends. Such data will relate to trends in
problems affecting particular CI types, such as from particular suppliers or development
groups, for use in improving the IT services. This information on problem trends supports
the proactive prevention of problems.

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Relationship with Release and Change Management
Register RFC and

assign ID
Release
Release
Management
Management
Configuration
Configuration
Management
Management
Documentation and
configuration audit
Reporting of
affected CIs, areas,
and people
Approve change
Update
documentation
Implementation
(includes pre-release
testing for software)
Distribution of
software and
hardware
documentation
Update
documentation
Post-implementation
review
Store changed CIs
according to quality
required
Close RFC
Definitive Software Library
Impact analysis
Configuration Management Database
Change
Change
Management
Management
Closure
Example: release of new software

12
Figure 7-11. Configuration Management: Relationship with Release and Change Management
SM251.0
Notes:
Configuration Management has a strong relationship with Change and Release
Management. Therefore, these processes are often planned alongside Configuration
Management.

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CIs and their relations to other processes
Incident Record
Incident Record
Change Record
Change Record
CI
CI
Problem Record
Problem Record
Known Error Record

Known Error Record
Service / SLA
Service / SLA
13
Figure 7-12. Configuration Management: CIs and their relations to other processes
SM251.0
Notes:

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Variant and Baseline
Variant
Configuration items with same base functionality, but with minor differences (for
example, a printer with additional RAM is a variant of a printer).
Baseline (basis of comparison)
A configuration baseline is the configuration of a product or system established at a
specific point in time, which captures both the structure and details of a configuration. It
serves as a reference for further activities. An application or software baseline provides
the ability to change or to rebuild a specific version at a later date.
A configuration baseline is also a snapshot, or a position, that is recorded. Although the
position may be updated later, the configuration baseline remains fixed as the original
state and is thus available to be compared with the current position. A configuration
baseline is used to assemble all relevant components in readiness for a change or
release, and to provide the basis for a configuration audit and regression, for example
after a change.
The Configuration Management system should be able to save, protect, and report on a
configuration baseline, its contents, and documentation.
14
Figure 7-13. Configuration Management: Variant and Baseline
SM251.0
Notes:
General guidance is: if a CI can be regarded as slightly different from another related CI,
and problems affecting one are likely to affect the other, or changes made to the one will
probably have to be made to the other, then use of a variant should be considered;
otherwise, a different CI should be used.

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Licence Management
Responsibility for controlling and auditing software licences should be
unambiguous and involves purchasing and Asset or Configuration Management.
Company directors, senior managers, and others, are liable to face

imprisonment and fines if illegal software is found to be in use within their
enterprise.
Purchase of unnecessary licences wastes resources.

Configuration Management enables an enterprise to monitor and control
software licences, from purchase to disposal.
15
Figure 7-14. Configuration Management: Licence Management
SM251.0
Notes:
Licence Management is part of Configuration Management.
Company directors, senior managers, and others are liable to face imprisonment and fines
if illegal software is found to be in use within their enterprise. Configuration Management
enables an enterprise to monitor and control software licences, from purchase to disposal.
Software licence structures, and corporate and multi-licensing schemes, need to be
understood and communicated to service-provider staff and Customers.
Responsibility for controlling and auditing software licences should be unambiguous and
should involve purchasing and Asset or Configuration Management. This may be difficult
when Users find it so easy to purchase and download software from the Internet, but this
can be resolved by links to disciplinary procedures detailed within the organizations
Security Policy.

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Benefits
Improved Asset Management

Helps to minimize risks of changes
Provides accurate information on CIs and their documentation
Improves security by controlling the versions of CIs in use
Facilitates adherence to legal obligations
Helps in financial and expenditure planning
Supports Release Management and Service Level Management
16
Figure 7-15. Configuration Management: Benefits
SM251.0
Notes:

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IBM Global Services
Costs
Costs are outweighed by benefits, because Configuration Management allows
handling of a large volume of changes, thus keeping quality. Configuration
Management control reduces risks of viruses, wrong software, fraud, theft, and so
on.
Staff costs for developing and running procedures
Hardware and software configuration identification

Hardware and software for the CMDB & DSL
Customization of Configuration Management tool
Integration with other Service Management tools
Training and education
17
Figure 7-16. Configuration Management: Costs
SM251.0
Notes:

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Risks
CIs with too much or too little detail

Interfaces to other systems in which CI information is stored
Keep the information in the CMDB accurate
Roles and responsibilities
Lack of configuration control
Overambitious schedules and unrealistic expectations
No commitment from management
18
Figure 7-17. Configuration Management: Risks
SM251.0
Notes:
CIs are defined at the wrong level with too much detail (so that staff become involved in
unnecessary work) or too little detail (so that there is inadequate control).
Implementation is attempted without adequate analysis and design. The end result is,
consequently, not what is required.
Tactical schedules are over-ambitious. Configuration Management may be perceived as a
bottleneck if adequate time is not built into schedules to allow staff to carry out their duties.
When changes and releases are being scheduled, past experience of the time taken to
complete Configuration Management activities should be taken into account. IT
management needs to be proactive in providing automated facilities for activities on the
critical path and to make it clear that time should be allowed for Configuration
Management.
Commitment is lacking. Without a firm commitment to the processes from managers, it is
difficult to introduce the controls that some staff would prefer to avoid. Examples of poor
Change Management and Configuration Management can often convince managers of
the need for better control.

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The process is perceived to be too bureaucratic or rigorous. Consequently, individuals and

groups use this as an excuse for not following the process.
The process is routinely circumvented. Some people will try to circumvent Configuration
Management in the interests of speed or with malicious intent. Attempts should be made to
overcome this problem by making such people aware of the benefits of Configuration
Management.
Processes are inefficient and error-prone. This is often the case where manual processes
are in use. In almost all cases it is advisable to choose an automated solution from the
outset.
Expectations of what the tool can do are unrealistic. Staff and managers may expect a
Configuration Management tool to deliver a total solution and end up blaming the tool for
processes or people that appear insufficient for the task.
The chosen tool may lack flexibility. Problems can occur when the Configuration
Management tool does not allow for new requirements or does not support all CI
categories.
Configuration Management has been implemented in isolation. If Configuration
Management is implemented without Change Management or Release Management, it is
much less effective and the intended benefits may not be realized.
Expectations of what the Configuration Management process can do are unrealistic. Asset
and Configuration Management cannot and should not be expected to make up for poor
project management or poor acceptance testing. Poorly controlled installations and test
environments will affect the quality of releases and result in additional incidents,
problems, and changes, which will in turn require additional resources.
Proper configuration control is not in place. For example, Configuration Management may
be difficult where Users have the ability to purchase, download, and install software from
the Internet.

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Best Practices
Early establishment of configuration management

Show the extraordinary significance of the database thus created
Enforce the compliance of change management processes
Meticulous selection and design of support tools
Inventory should be tool supported and automated
"You can only control what you know or what is documented."
19
Figure 7-18. Configuration Management: Best Practices
SM251.0
Notes:

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Summary
Configuration Management provides a logical model of the infrastructure or a

service by identifying, controlling, maintaining, and verifying the versions of
Configuration Items (CIs) in existence.
Activities: planning, identification and registration, status accounting, control,

verification and audit, reporting, role for the evaluation of change effects.
Configuration Items: categories, attribute, relationships, status, unique

reference number
Configuration Management Database (CMDB)

Scope and level of detail of CMDB (value of information)
Variant and Baselines
Licence Management
Configuration Management process supports all other service management
processes
20
Figure 7-19. Configuration Management: Summary
SM251.0
Notes:

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Unit 8. Release Management

This unit is an introduction to Release Management, and its

framework.

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Unit 08
Release Management
Content:
Release Management objective and overview

Some definitions
Important aspects:
Definitive software library/definitive hardware store
Software release

Best practices
Summary
Figure 8-1. Unit 08: Release Management
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Notes:
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Release Management
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Figure 8-2. Release Management: Integration into the IPW Model
SM251.0
Notes:

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Release Management
Mission Statement
Release Management takes a holistic view of a change to an IT service, and
should ensure that all aspects of a release, both technical and non-technical, are
considered together.
Release Management should be used for:
Large or critical hardware rollouts, especially when there is a dependency on a

related software change in the business systems, in other words not every single
PC that needs to be installed
Major software rollouts, especially initial instances of new applications along with
accompanying software distribution and support procedures for subsequent use if
required
Bundling or batching related sets of changes into manageable-sized units

Release Management undertakes the planning, design, building, configuration,
and testing of hardware and software to create a set of release components for a
live environment. Activities also cover the planning, preparation, and scheduling
of a release to many customers and locations.
Figure 8-3. Release Management: Mission Statement
SM251.0
Notes:
Software Control & Distribution (SC&D) is more than just application software. Software
items are operating systems software, middleware configurations, and application
software. In addition to startup scripts and configuration scripts, firmware is also included
under software items.
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Release Management
Goal
Plan and oversee successful rollout of software and hardware releases
Design and implement efficient procedures for distribution and installation of
changes to IT systems
Ensure changes in hardware and software are traceable, authorized, tested, and
correct
Communicate and manage expectations to the customer during planning and

rollout of releases
Agree content and rollout plan for the release, through Change Management
Implement software and hardware releases in operational environment using
controls from Configuration Management and Change Management
Ensure that all master copies of all software are secured in the DSL and that the
CMDB is updated
Figure 8-4. Release Management: Goal
SM251.0
Notes:

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Release Management
Why Release Management

Software is increasingly considered as an important capital value with even a
strategic importance. The control of software is therefore mandatory. Some of the
most important aspects are:
Preventive measures (for example, to avoid pirate copies)
Consistency (for example, compatibility of client programmes with server

programmes)
Licences (for example, software should not be used by more than the
agreed number of users simultaneously)
Release management is responsible for the storage of authorized software (selfdeveloped, purchased or licensed applications, or utility software), the release of
software in a production environment, the distribution of software to remote
locations, as well as the implementation of software to make it operational.
Figure 8-5. Release Management: Why Release Management
SM251.0
Notes:
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Release Management
Tasks
Definition of release
guidelines
Control of the
Definitive Software
Library (DSL) and
DHS
Release
Release
Management
Management
Distribution of
software, hardware,
and linked CIs
Performing software
and hardware audits
(using CMDB)
Monitoring of the
release creation
Management of
the releases
Figure 8-6. Release Management: Tasks
SM251.0
Notes:
The Release Management process takes a holistic view of changes to IT services,
considering all aspects of a release, both technical and non-technical. Release
Management is responsible for all legal and contractual obligations for all hardware and
software in use within the organization. In order to achieve this and to protect the IT assets,
Release Management establishes secure environments, both for hardware in the Definitive
Hardware Store (DHS), and for software in the Definitive Software Library (DSL).

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Release Management
Definitions
Release: a collection of authorized changes to an IT service. Often divided into:
Major software releases and hardware upgrades

Minor software releases and hardware upgrades
Emergency software and hardware fixes
Release Unit: portion of IT infrastructure that is normally released together.
Full Release: all components of the Release Unit are built, tested, and implemented
together. Reduced likelihood of untested errors; longer time to implement.
Delta Release: includes only those CIs in the Release Unit that have actually changed
since the last release.
Package Release: grouping of Full and Delta Release to reduce the frequency of
releases. Reduces probability of outdated or incompatible software in use.
Definitive Software Library (DSL): Secure compound containing all definitive
authorized versions of all SW CIs (master copies). Also for master copies of
documentation.
Definitive Hardware Store: secure area containing definitive hardware spares.
CMDB: contains definitions of planned releases, and CIs impacted by planned and past
releases.
Figure 8-7. Release Management: Definitions
SM251.0
Notes:
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Release Management
Major Activities of Release Management
Communication,
Communication,
Preparation,
Preparation,
Training
Training
Roll-Out Planning
Planning
Roll-Out
Release Acceptance
Acceptance
Release
Fit-for-Purpose
Fit-for-Purpose
Testing
Testing
Distribution &
&
Distribution
Installation
Installation
Live
Live
Environment
Environment
Controlled
Controlled Test
Test Environment
Environment
Build &
& Configure
Configure
Build
Design,
Design,
Development,
Development,
Procurement
Procurement
Release Planning
Planning
Release
Release Policy
Policy
Release
Development
Development Environment
Environment
CMDB
CMDB with
with Definitive
Definitive Software
Software Library
Library (DSL)
(DSL)
Figure 8-8. Release Management: Major Activities of Release Management
SM251.0
Notes:
The main components to be controlled are:
Application programs developed in-house
Externally developed software (including standard off-the-shelf software as well as
customer-written software)
Utility software
Supplier-provided systems software
Hardware, and hardware specifications
Assembly instructions and documentation, including user manuals.
All deliverables need to be managed effectively, from development or purchasing, through
customization and configuration, through testing and implementation, to operation in the
live environment.
This figure outlines the major activities in Release Management and their position in the
lifecycle of a change. Configuration Management records should be updated during build

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and release to ensure that there are trusted releases that can be reverted to in case of
problems. A release should be under Change Management, and the content and timing of
a release should be authorized in advance via the Change Management process.

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User
User
Service
Service
Provider
Provider
Individual software installation

Installation
Installation and
and configuration
configuration
of
ofindividual
individual programmes
programmes
Individual
Individual
programs
programs
Individual
Individual
programs
programs
Installation
Installation of
of updates
updates
Software roll-out
Software
Software
transmission
transmission
Software
Software
installation
installation
Installation
Installation
monitoring
monitoring
Configuration
Configuration
Function
Functiontesting
testing
Software
Software
management
management
System reload
Reinstallation
Reinstallation of
ofthe
the base
base system
system
Base
Basesystem
system
System
System
support
support
User-specific
User-specific configuration
configuration
Update of the CMDB

Configuration
Configuration
Hardware
Hardware inventory
inventory
Documentation
Documentation of
ofthe
the
software
software configuration
configuration
Transmission
Transmission of
oferror
error
protocols
protocols
CMDB
CMDB
Application support
Remote
Remoteoperation
operationof
of the
the
application
application
Applications
Applications
Guidance
Guidance to
to users
users
Application
Application
support
support
Configuration
Configuration check
check
System support
Update
Update // configuration
configuration of
of PC
PC and
and ISDN
ISDN
technology
technology
System
System
technology
technology
Updates
Updates and
and
patches
patches
Installation
Installation
of
ofupdates
updates
Directed
Directed
information
information flow
flow
10
System
System
support
support
Time
Figure 8-9. Interactions
SM251.0
Notes:
Some subprocesses of release management.

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Release Management
DSL and DHS

DSL = Definitive Software Library
contains the master copies of all
controlled software in an organization
DHS = Definitive Hardware Store
secure storage of definitive hardware
spares
Logical
Storage
Quality Control
(Viruses / Licence /
Test /
Completeness)
Release issue
These are spare components and

assemblies that are maintained at
the same level as the comparative
systems within the live environment.
Details of these components and

their respective builds and contents
are comprehensively recorded in the
CMDB.
11
DSL
Software and
linked
Configuration
Items
Physical
Distribution
Physical
Storage
Figure 8-10. Release Management: DSL and DHS
SM251.0
Notes:
The Definitive Software Library (DSL) is the term used to describe a secure compound in
which the definitive authorized versions of all software CIs are stored and protected. This
one storage area may, in reality, consist of one or more software libraries or file-storage
areas that should be separate from development, test, or live file-store areas. It contains
the master copies of all controlled software in an organization. The DSL should include
definitive copies of purchased software (along with licence documents or information), as
well as software developed on-site. Master copies of controlled documentation for a system
will also be stored in the DSL in electronic form.
DHS - An area should be set aside for the secure storage of definitive hardware spares.
These are spare components and assemblies that are maintained at the same level as the
comparative systems within the live environment. Details of these components and their
respective builds and contents should be comprehensively recorded in the CMDB. These
can then be used in a controlled manner when needed for additional systems or in the
recovery from major incidents. Once their (temporary) use has ended, they should be
returned to the DHS or replacements obtained.

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Release Management
Software Release
Release Unit
Determines the content of the
software package
Network
Computer
Release Types
Mainframes
Full Release (All software CIs from

Software
Management
System
Internet
Software
Software
Distribution
Distribution
Planning
CDs
the release are built, tested, and

implemented together.)
Delta Release (includes only those

CIs within the Release unit that
have actually changed or are new
since the last full or delta release.)
Package Release (individual

Laptops
Client/Server
PCs
12
releases (full units, delta releases,

or both) are grouped together to
form Package Releases.)
Emergency Fix
Figure 8-11. Release Management: Software Release
SM251.0
Notes:
Please note the following for the slide:
Full Release
The major advantage of full releases is that all components of the release unit are built,
tested, distributed, and implemented together. There is no danger that obsolete versions of
CIs that are incorrectly assumed to be unchanged will be used within the release. There is
less temptation to short-circuit testing of supposedly unchanged CIs and of the interfaces
from changed CIs to unchanged ones.
Any problems are therefore more likely to be detected and rectified before entry into the
live environment. The disadvantage is that the amount of time, effort, and computing
resources needed to build, test, distribute, and implement the release will increase.
Although in some circumstances the testing of a delta release (see below) may need to be
as extensive as that for an equivalent full release, the amount of building effort required to
test a delta release is normally less than for a full release.

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Regression testing as part of the process of implementing a full release allows a large
number of components to be retested to ensure that there is no degradation in system
function or behavior.
An example of a full release could consist of the complete release of a new version of
client desktop software, or client desktop hardware, or both.
Delta Release
A delta, or partial, release is one that includes only those CIs within the release unit that
have actually changed or are new since the last full or delta release. For example, if the
release unit is the program, a delta release contains only those modules that have
changed, or are new, since the last full release of the program or the last delta release of
the modules.
There may be occasions when release of a full unit cannot be justified. In such cases, a
delta release may be more appropriate. A decision should be made on whether delta
releases are allowed, and under what circumstances. There is no single correct choice. It
is recommended that delta releases be allowed, with the decision being taken on a case by
case basis.
In each case, the Change Advisory Board (CAB) should make a recommendation, based
upon all the relevant facts, on whether the release unit stipulated in the release policy is
appropriate, or whether a delta release is preferable. In making its recommendation, the
CAB should take into account:
The size of a delta release in comparison with a full release, and hence the resources
and effort required
The urgency of the need for the facilities to be provided by the release to the users
The number of CIs (below the release unit level) that have changed since the last full
release; a very large number may enforce a full release
The possible risk to the business if compatibility errors are found in the release (for
example, would it be preferable to wait for a full release than to risk interface problems
arising with a delta release?)
The resources available for building, testing, distributing, and implementing the delta
release (for example, if implementation is to be via non-technical staff, is it easier to
implement a complete new release than a delta release?)
The completeness of impact analysis information to make an informed and objective
decision.
Package Release
To provide longer periods of stability for the live environment by reducing the frequency of
releases, it is recommended that, where appropriate and where the resulting larger amount
of change can be confidently handled without problems, individual releases (full units,
delta releases, or both) are grouped together to form package releases. For example,
changes to one system or suite will often require changes to be made to others. If all these

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changes have to be made at the same time, they should be included in the same package
release.
A package can, for example, contain an initial version of a new TP service, several new
versions of batch programs, a number of new and initial versions of individual modules,
together with the release of a complete new desktop system (both hardware and software).
Both full and delta releases may be included.
The use of package releases can reduce the likelihood of old or incompatible software
being wrongly kept in use. It can encourage organizations to ensure that all changes that
should be made concurrently, in different suites and systems, are actually made
concurrently. It can also encourage organizations to test the interworking of these suites
and systems fully.
Care should be taken, however, not to exceed, in any particular package release, the
amount of change that can be handled comfortably. When making a decision on what to
include in the package, care should be taken to ensure that the full impact of all individual
parts on each other part is understood and has been properly assessed.

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Release Management
Benefits
Greater success rate in hardware and software release, hence improved QOS delivered to
the business
Consistency in the release processes of hardware and software environments

Less disruption of service to business by synchronizing releases having impact on different
components
Assurance that hardware and software in use is of known quality, because releases are built
properly (quality control, testing, under Change Management)
More stable environment, as changes are bundled into releases, hence fewer
implementations required
Better expectation level because of release schedule

Audit trail of changes
Control and safeguarding of hardware and software assets
Higher rate of changes can be absorbed without affecting IT QOS by using a release
comprising multiple changes
Lower probability of illegal copies in environment

Easier detection of wrong versions and unauthorized copies
Reduced time to release and fewer delays
13
Figure 8-12. Release Management: Benefits
SM251.0
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Release Management
Costs
Resources
Software: supported software tools, database
Security for DSL
Hardware and equipment, especially data storage
Spare components (DHS)
Network resources (remote control)
Staff:
Salary, training
Tests
Tailoring of the process

14
Figure 8-13. Release Management: Costs
SM251.0
Notes:
This slide discusses the costs of building the DSL and the DHS. For secure release
distribution, a secure network is needed. The staff who support the process and the
tailoring of the process will generate expense.

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Release Management
Risks
Establishment of version and release guidelines with external suppliers

Bypass defined procedures
Creation of the definitive software library
DSL integration using automatic software distribution
Ensure that version numbering guidelines comply with releases
Staff resistance to procedures because of lack of knowledge of benefits.
Education is required.
15
Figure 8-14. Release Management: Risks
SM251.0
Notes:

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Release Management
Best Practices
Physical storage of all operational software in the definitive software library

(DSL)
Distribution of each software item from the DSL. Use of the DSL as source
for distribution.
Integration of Release Management (operational), Change Management

(control), and Configuration Management (control and administration)
Control of each software item using release, version, and package

guidelines
Release Management process also for additionally purchased software (not

only for self-developed software)
16
Figure 8-15. Release Management: Best Practices
SM251.0
Notes:

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Release Management
Summary
Release Management undertakes the planning, design, building, configuration,
and testing of hardware and software to create a set of release components for a
live environment. The focus is to protect the live environment and services
through the implementation of formal procedures and release checks.
A Release is a collection of authorized changes to an IT service.

Responsibilities: control of the DSL, definition, building and management of
software releases, distribution of software CIs, software audits
Release types: Full, Package, Delta Release, and Emergency Fix

DSL and DHS
Process relationship
Release Management (Operational)
Change Management (Control).
Configuration Management (Control and Administration).
17
Figure 8-16. Release Management: Summary
SM251.0
Notes:

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Unit 9. Service Level Management

This unit is an introduction to Service Level Management, and its

framework.

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Unit 09

Content:
Service Level Management objective and overview

Some definitions
Important aspects:
Service Level Agreement (SLA)
Service spec sheet
Benefits, risks, costs

Best practices
Summary
Figure 9-1. Unit 09: Service Level Management
SM251.0
Notes:
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Figure 9-2. Service Level Management: Integration into the IPW Model
SM251.0
Notes:

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Mission Statement
The goal for Service Level Management is to maintain and improve IT service quality, through a
constant cycle of agreeing, monitoring, and reporting upon IT service achievements and instigation
of actions to eradicate poor service, in line with business or cost justification. Through these
methods, a better relationship between IT Services and its customers can be developed.
Service Level Management (SLM) is essential in any organization so that the level of IT service needed to
support the business can be determined, and monitoring can be initiated to identify whether the required
service levels are being achieved - and if not, why not.
Service Level Agreements (SLA), which are managed through the SLM Process, provide specific targets
against which the performance of the IT organization can be judged.
The following belong to the scope of Service Level Management::
Service relationship customer - supplier

Improved specification and knowledge of service demands
Higher flexibility and reaction readiness of the service provider
Balanced relation between customer demands and service costs
Measurable service level
Objective conflict solution
Quality improvement (continuous review)
Figure 9-3. Service Level Management: Mission Statement
SM251.0
Notes:
Service Level Management is the name given to the processes of planning, coordinating,
drafting, agreeing, monitoring, and reporting on SLAs, and the ongoing review of service
achievements to ensure that the required and cost-justifiable service quality is maintained
and gradually improved. SLAs provide the basis for managing the relationship between the
provider and the customer.
What is an SLA?
A written agreement between an IT service provider and the IT customer(s), defining the
key service targets and responsibilities of both parties. The emphasis must be on
agreement, and SLAs should not be used as a way of holding one side or the other to
ransom. A true partnership should be developed between the IT provider and the customer,
so that a mutually beneficial agreement is reached, otherwise the SLA could quickly fall
into disrepute and a culture of blame prevent any true service quality improvements from
taking place.
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Why Service Level Management

Service Level Management (SLM) is responsible for the qualitative and
quantitative management of the services provided by the IT organization to its
customers. An essential element in the service management level process is
the service level agreement (SLA), a "contract" between the IT organization
and its customers, that specifies the services to be delivered. Qualitative as
well as quantitative details such as performance and availability of those
services are specified within the SLA.
A Service Level Agreement (SLA) is important for the judgement and
execution of most activities in the IT organization. SLAs provide the basis for
managing the relationship between the provider and the customer.
Due to organizational and cultural effects, the SLM process is one of the most
important but also the most complex. It formalizes the relationship between the
customer organization and the IT organization. The SLA can also serve as a
catalyst to demonstrate the necessity of further important ITSM processes and
their contributions to the fulfilment of the SLA.
Figure 9-4. Service Level Management: Why Service Level Management
SM251.0
Notes:

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IBM Global Services
SLM Balance service capabilities and service requirements
Demand for IT
services
Offer
IT services
Requirement
Capabilities
Customer Primary Issues:

Cost, Convenience
Satisfaction
Service Provider Primary Issues:

Efficiency
Effectiveness
Knowledge
Knowledge of
of business
business requirement
requirement
Knowledge
Knowledge of
of the
the service
service catalog
catalog
Figure 9-5. Service Level Management: SLM Balance service capabilities and service requirements
SM251.0
Notes:
9-6
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Definitions
Service Level Agreement (SLA): agreement between IT service provider and the IT
customer(s), detailing key service targets and responsibilities of both parties.
Operational Level Agreement (OLA): agreement between IT service provider and
other internal service providers on which the service depends.
Underpinning Contract (UC): contract with external IT service providers (for hardware
or software).
Service Catalog (SC): list of all IT services provided which can come into scope for
SLAs. Also lists users of the service and their maintainers.
Service Level Requirement (SLR): list of all customer requirements for the service.
Service Improvement Program (SIP): Management can instigate a SIP to identify and
implement whatever actions are necessary to overcome any difficulties and restore
service quality.
Figure 9-6. Service Level Management: Definitions
SM251.0
Notes:

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IBM Global Services
Tasks
Demand of
service level
Service
catalog
Customer
relationship
care
Service Level
Service Level
Management
Management
Service level
agreement
Operational
level agreements
and contracts (UC)
Service specification
sheet (service
specification)
Monitoring,
review, and
evaluation
Service
improvement
program
Figure 9-7. Service Level Management: Tasks
SM251.0
Notes:
The tasks which belong to SLM activities include those shown on the slide.
9-8
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Service Level Management Activities
Identify existing
service levels
and new
requirements
Review and
adjust service
provision, SLA
Define offerings
with OLAs and
Underpinning
Contracts
Report to the
customer and
IT organization
Agree on SLAs
and maintain
Service Catalog
Monitor and
evaluate
service levels
versus SLAs
Figure 9-8. Service Level Management: Service Level Management Activities
SM251.0
Notes:
The main activities within the SLM process are shown on the slide.

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IBM Global Services
Manage relationship with customers and suppliers

(internal and external)
Business Context
SLA
IT customer
SLA
Service Level
Management
IT Provider
Internal IT Provider
IT Organizations
OLA
Network
HW
Operating
...
UC
Service
Portfolio
Service Level Agreement

(SLA)
A written agreement between an
IT Service Provider and the IT
Customer(s).
An SLA should have a commercial
and a legal part.
10
External Provider
Operational Level Agreement

(OLA)
A contract or agreement with an
internal supplier covering delivery
of services.
An OLA has no legal part.
Underpinning Contract (UC)

A contract with an external
supplier covering delivery of
services
A UC should have a commercial
and a legal part.
A UC is a SLA with the external
supplier or providers point of view
Figure 9-9. Service Level Management: Manage relationship with customers and suppliers (internal and external)
SM251.0
Notes:
To define the service which a IT organization should provide, an SLA is a mandatory
contract. To ensure delivery of service, the IT organization needs an underpinning contract
with its suppliers.

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Different points of view: Communication

Negotiation of
service level
agreements
The communication between all individuals concerned is a

key factor for effective and efficient SLAs!
Legal:
Contract law, handling,
disputes, penalties
Staff point of view:

Operational specification,
education, administration
SLA
Customers point of view:
Reaction time, service time,
...
Commercial:
Accounting, charging
Technical:
Tools, methods,
metrics collection procedures
11
Figure 9-10. Service Level Management: Different points of view: Communication
SM251.0
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IBM Global Services
Content of a Service Level Agreement (SLA)

Name, date,
parties,
signatures
Management
reporting, review
methods
Version numbers,
dates, contents,
signatures
Service Level
Service Level
Agreement
Agreement
SLA release
management and
service change
procedures
General information:
contact persons,
escalation, penalties,
definitions
Quality
objectives, care
and support
Service
specification
sheet
12
Concerned parties,
roles and
responsibilities
Figure 9-11. Service Level Management: Content of a Service Level Agreement (SLA)
SM251.0
Notes:
Not a fixed rule: some of the content items are mandatory, and others are not.

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Service Level Agreement (SLA) Basic Structure

Validity
Name of the client or customer
Business field, products
Recourse claims for

non-compliance of SLAs
-> liability regulation
Type of service or product

Definition and scope of business
Customer requirements
Process steps description for the product handling
Prerequisites that have to be fulfilled by the customer or client
Agreed quality standards
Availability
Deadlines for same-day handling
Quality degrees
Emergency regulation (reference to emergency concepts)
Incidents
Claims and escalation procedures
Action plans
Reports
Periodic checks
Q circle
... + signatures of the

contract partners
Costs accounting and charging

Bonus/Malus Regulation
13
Figure 9-12. Service Level Management: Service Level Agreement (SLA) Basic Structure
SM251.0
Notes:

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IBM Global Services
Service Level Agreement (SLA) Legal Contents

Preamble
Costs and performance clearing
Change Management
Performance control, measuring method
Scope
Reporting
General conditions
Failure of provision
Cooperation duties of the customer
Penalties
Consulting
Warranty, liability, damages
Education
Duration of contract
Performance description
Extraordinary termination
Backup and data protection
Conversion
Limitations, restrictions, exclusions
Claim to working results
Priorities
Venue
Escalations
Writing
Other obligations
Final provision
Secrecy
14
Figure 9-13. Service Level Management: Service Level Agreement (SLA) Legal Contents
SM251.0
Notes:

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Elements of a Service Spec Sheet

Name, date,
parties
Procedures for
changes, delivery,
recovery action
Service
Service
specification
specification
sheet
sheet
Security, backup
and recovery,
contingency,
security
15
Service time
and location, terms
of delivery and
financial terms
Service description,
date, duration,
signatures
Supplied
products and
accessories
Service levels,
availability,
performance
Figure 9-14. Service Level Management: Elements of a Service Spec Sheet
SM251.0
Notes:
The specification sheet specifies in detail what the customer wants (external), and what
consequences this has for the service provider (internal), such as required resources and
skills.

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Benefits
Improvement in IT service quality and reduction of service outages can lead to
significant financial savings
Satisfied customers and better customer relationship

Clearer view between both parties on roles and responsibilities
Specific targets that have to be achieved and that can be measured and reported
Focusing of IT effort on what the business thinks is key
IT and customers have consistent expectations on the level of service required
Identification of weak areas that can be remedied subsequently
SLM underpins supplier management and vice-versa
IT services are designed to meet Service Level Requirements
SLAs can be the basis for charging, and are the demonstration of what customers
receive for their money.
16
Figure 9-15. Service Level Management: Benefits
SM251.0
Notes:

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Risks
Monitoring actual achievements and having the same perception as the customer.
This impacts the following:
Committing only to achievable targets
Verifying targets prior to agreement
SLAs based on desires rather than achievable targets
Inadequate resources and time SLA management done in the margin of

Too low seniority for SLA manager
SLAs not supported by adequate UCs and OLAs
Unclear definition of responsibilities of each party, making some things fall between
the cracks
IT-based rather than business-aligned

Business not knowing its requirements
Not focused SLAs
SLAs being considered as overhead rather than chargeable service
17
Figure 9-16. Service Level Management: Risks
SM251.0
Notes:

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IBM Global Services
Costs
The costs for SLM should be viewed as investment and added value.
Staff: salaries, training, consultancy initial and ongoing

Support tools and hardware
Marketing costs
18
Figure 9-17. Service Level Management: Costs
SM251.0
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Best Practices
Show the winning of business oriented to SLA

Clearly differentiate Service Level Management (Process) from Service
Level Agreements (Contract)
Charging on SLA basis and not globally

Clear definition in a clear language of SLA for all parties
SLA Definition only as an activity of the Service Level Management process
Each SLA should be supported by its own OLAs and UCs
19
Figure 9-18. Service Level Management: Best Practices
SM251.0
Notes:

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Summary
The goal of SLM: to maintain and gradually improve business-aligned IT
service quality, though a constant cycle of agreeing, monitoring, reporting, and
reviewing IT service achievements, and through instigating actions to eradicate
unacceptable levels of service
Important reasons for implementing Service Level Management: alignment of
expectations, which is a major prerequisite for running the service organization as
a business; improvement of service quality (customer-oriented) through
measurable service levels
Responsibilities: care of customer relations; planning and maintenance of the

service catalog; drafting of SLRs; negotiation, preparation, and monitoring of
higher service overall contracts, SLAs, OLAs and UCs, as well as plans for
improving service and quality
SLA: Service Level Agreement (duration, service description, transfer rate,

availability, reaction times, signature)
The quality of IT services supports the companys success!
20
Figure 9-19. Service Level Management: Summary
SM251.0
Notes:

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Unit 10. Availability Management

This unit is an introduction to Availability Management, and its

framework.

10-1
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Module 10
Content:
Availability Management objective and overview

Some definitions
Important aspects:
Uptime, downtime, and availability
Availability measurement
Availability reporting
Benefits and risks

Best practices
Summary
Figure 10-1. Module 10: Availability Management
SM251.0
Notes:

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Implementing your Service Desk infrastructure
IPW Model is a trade mark of Quint Wellington and KPN Telecoms

3
Figure 10-2. Availability Management: Integration into the IPW Model
SM251.0
Notes:

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Mission Statement
Availability management ensures that IT delivers the right levels of
availability required by the business to satisfy its business objectives and to
deliver the quality of service demanded by its customers.
Availability Management should ensure that the required level of availability is provided.
The measurement and monitoring of IT availability is a key activity to ensure that
availability levels are being met consistently.
Availability Management should look continuously to optimize the availability of the IT
Infrastructure, services, and supporting organisation, in order to provide cost-effective
availability improvements that can deliver proven business enhancements to customers.
Goal of Availability Management:
Forecast, planning, and management of services availability, to ensure that:
All services are based on appropriate and latest CIs
For CIs not supported internally, appropriate agreements exist with third-party
suppliers
Changes are suggested in order to avoid future service downtime
Ensures that SLA-agreed availability is met
4
Figure 10-3. Availability Management: Mission Statement
SM251.0
Notes:

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Definitions (1)
Availability: measured by Mean Time Between Failures (MTBF).
Ability of an IT service or component to perform its required function at a

stated instant, or over a stated period of time
Underpinned by reliability, maintainability, serviceability, and resilience of the

IT infrastructure
Reliability: measured by Mean Time Between System Incidents (MTBSI)
Ability to work without operational failure
Depends on the probability of failure of each component, the resilience built

into the IT infrastructure, and the preventive maintenance applied to prevent a
failure from occurring
Maintainability: measured by the Mean Time To Repair (MTTR)
Ability to be retained or restored to an operational state

Depends on anticipation, detection, diagnosis, resolution, recovery from
failures, and restoration of data and IT service
5
Figure 10-4. Availability Management: Definitions (1)
SM251.0
Notes:
Availability is the ability of an IT service or component to perform at a stated instant, or
over a stated period of time.
Reliability is the level of freedom from operational failure of the IT service or
component.
Maintainability is the ability to retain in, or restore a service or component to, an
operational state.
Security focuses on the Confidentiality, Integrity, and Availability (CIA) of data.
Serviceability on its own cannot be measured as a specific metric. It is a measure of
the three Availability, Reliability, and Maintainability capabilities of the IT service and
components that must be done.

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Definitions (2)
Serviceability: cannot be measured as a specific metric

Ability to maintain the availability, reliability, and maintainability provided by
the contractual agreements with the IT service providers
Resilience: or Fault Tolerance
Ability of an IT service to remain operational in spite of malfunction by one or
more subcomponents
Figure 10-5. Availability Management: Definitions (2)
SM251.0
Notes:

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Tasks
Availability
planning
Monitoring,
Review, and
Assessment
Availability
plan
Availability
Availability
Management
Management
Availability
Improvement
Identification
Availability
Requirements
Figure 10-6. Availability Management: Tasks
SM251.0
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Inputs and Outputs
Outputs:
Availability and recovery design
criteria for new or enhanced IT
services
Inputs:
Availability, reliability, and maintainability
requirements of the business for new or
enhanced IT services.
Availability techniques that will be
Business Impact Assessment (BIA)
deployed to provide additional

infrastructure resilience
for each vital business function

underpinned by the IT infrastructure.
Information on IT service and

component failures coming from
incidents and problems.
Availability
Management
Configuration and monitoring data

SLA achievements
Availability reporting to reflect the

business, IT support, and user
perspectives
Monitoring requirement for IT

components that allow the detection
of deviations in availability
Availability Plan for the proactive

improvement of IT infrastructure
availability
Figure 10-7. Availability Management: Inputs and Outputs
SM251.0
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Uptime, Downtime, and Availability

MTTR
Recognition
Incident
Repair
Diagnosis
Recovery
Recovery
Incident
MTBF
MTBSI
Time
MTTR - Mean Time to Repair DOWNTIME Maintainability

MTBF - Mean Time Between Failure UPTIME Availability (Serviceability)
MTBSI - Mean Time Between System Incident Average Reliability Reliability
9
Figure 10-8. Availability Management: Uptime, Downtime, and Availability
SM251.0
Notes:
A guiding principle of Availability Management is to recognize that it is still possible to gain
customer satisfaction even when things go wrong. One approach to help achieve this
requires Availability Management to ensure that the duration of any incident is minimized to
enable normal business operations to resume as quickly as possible.
Availability Management should work closely with Incident Management and Problem
Management in the analysis of unavailability incidents.
A good technique to help with the technical analysis of incidents affecting the availability of
components and IT services is to take an incident lifecycle view.
Every incident passes through several major stages. The time elapsed in these stages may
vary considerably. For Availability Management purposes, the standard incident lifecycle,
as described within Incident Management, has been expanded to provide additional help
and guidance, particularly in the area of designing for recovery.

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MTBF (Mean Time Between Failures) is the average elapsed time from the time an IT
service or supporting component is fully restored until the next occurrence of a failure to the
same service or component
MTBSI (Mean Time Between System Incidents) is the average elapsed time between the
occurrence of one failure and the next failure
MTTR (Mean Time To Repair) is the average elapsed time from the occurrence of an
incident to resolution of the incident.

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Availability Measurements (1)

When is a service not available?
A service is not available to a customer if the locally required functions cannot
be used, although the agreed conditions for the provision of the service are
fulfilled."
A simple calculation of availability in %:
Agreed service time - Downtime

Agreed service time
100
X
But what does 98% availability mean?
10
Figure 10-9. Availability Management: Availability Measurements (1)
SM251.0
Notes:
This slide shows some of the simple mathematics required to enable component and total
Infrastructure Availability to be calculated. This information is needed to help formulate
availability targets for IT components and IT services. Additionally, these output
calculations can be input to any availability modeling tools that are available.
The examples provided in this section are fairly straightforward, with the calculations
presented being sufficient to provide adequate estimates of availability. Where more
detailed estimates of availability are required, it may be necessary to research more
complex mathematical calculations. The statistical analysis of incident data and the
forecasting of availability are a rich study field in many industries outside IT, such as
electronics and aviation.

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IBM Global Services
Availability Measurement (2)

Serial
Parallel
Availability = 90%
Disk A
Disk A
Availability = 90%
Disk B
Availability = 90%
Availability only then, if both are in operation

=>
AxB=
0.9 * 0.9 = 0.81 or 81%
Disk B
Availability = 90%
Availability = 1 not available

1 both are not available =
1 (A not available) x (B not available) =
1 0.1 * 0.1 = 0.99 or 99%
11
Figure 10-10. Availability Management: Availability Measurement (2)
SM251.0
Notes:
The availability percentage for each IT component within the total IT infrastructure may be
different, and as such it is necessary to provide a calculation that reflects the total
infrastructure availability.
The levels of resilience provided positively influence the availability percentage for the total
infrastructure.
This slide shows the serial and parallel configuration calculation of availability.

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Availability Measurement Example (3)

Example of availability in a parallel or a serial architecture
12
Figure 10-11. Availability Management: Availability Measurement Example (3)
SM251.0
Notes:

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Risk Management is also an aspect of availability
Assets
Threats
Risk analysis
Risks
Risks
Weaknesses
Risk management
Countermeasures
13
Planning for
possible downtimes
Management
of downtimes
Figure 10-12. Availability Management: Risk Management is also an aspect of availability
SM251.0
Notes:
The identification of risks and the provision of justified countermeasures to reduce or
eliminate the threats posed by such risks can play an important role in achieving the
required levels of availability for a new or enhanced IT service.
Risk Analysis should be undertaken during the design phase for the IT infrastructure and
service to identify:
Risks that may incur non-availability for the IT components within the IT infrastructure
and service design
Risks that may incur confidentiality, integrity exposures, or both within the IT
infrastructure and service design
Risk Analysis involves the identification and assessment of the level (measure) of the
risks calculated from the assessed values of assets and the assessed levels of threats to,
and vulnerabilities of, those assets.

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Risk Management involves the identification, selection, and adoption of countermeasures

justified by the identified risks to assets in terms of their potential impact upon services if
failure occurs, and the reduction of those risks to an acceptable level.
This approach, when applied via a formal method, ensures that coverage is complete
together with sufficient confidence that:
All possible risks and countermeasures have been identified
All vulnerabilities have been identified and their levels accurately assessed
All threats have been identified and their levels accurately assessed
All results are consistent across the broad spectrum of the IT infrastructure reviewed
All expenditure on selected countermeasures can be justified.

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Availability Reporting
Classical reporting measures
% available
% unavailable
Duration of unavailability in hours
Frequency of failure
Impact of failure
Problems with classical measures:
Fails to reflect IT availability as experienced by the business and users
Conceal hot spots. Generally good availability for the IT organization
Does not support continuous improvement
Future measured variables (CCTA acceptance):
Impact by user minutes lost (user productivity)
Impact by business transaction

14
Figure 10-13. Availability Management: Availability Reporting
SM251.0
Notes:
The IT support organization has for many years measured and reported on its perspective
of availability. Traditionally, these measures have concentrated on component availability,
and have been somewhat divorced from the business and user views.
Typically, these traditional measures are based on a combination of an availability
percentage (%), time lost, and the frequency of failure. Some examples of these traditional
measures are as follows:
% Available - The truly traditional measure which represents qvailability as a percentage
and, as such, is much more useful as a component availability measure than as a service
availability measure. It is typically used to track and report achievement against a service
level target. It tends to emphasize the big number, such that if the service level target was
98.5% and the achievement was 98.3%, then it does not seem that bad. This can
encourage a complacent behavior within the IT support organization.
% Unavailable - The inverse of the above. This representation, however, has the benefit of
focusing on non-availability. Based on the above example, if the target for non-availability
was 1.5% and the achievement was 1.7%, then this is a much larger relative difference.

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This method of reporting is more likely to create awareness of the shortfall in delivering the
level of availability required.
Duration - Achieved by converting the percentage unavailable into hours and minutes.
This provides a more human measure that people can relate to. If the weekly downtime
target is 2 hours but one week the actual was 4 hours, this would represent a trend leading
to an additional 4 days of non-availability to the business over a full year. This type of
measure and reporting is more likely to encourage focus on service improvement.
Frequency of failure - Used to record the number of interruptions to the IT service. It helps
provide a good indication of reliability from a user perspective. It is best used in
combination with Duration to take a balanced view of the level of service interruptions and
the duration of time lost to the business.
Impact of failure - This is the true measure of service unavailability. It depends upon
mature incident recording, where the inability of users to perform their business tasks is
the most important piece of information captured. All other measures suffer from a potential
to mask the real effects of service failure.
The business may have, for many years, accepted as a fait accompli that the IT availability
that they experience is represented in this way. However, this is no longer being viewed as
acceptable, and the business is keen to better represent availability in measure(s) that
demonstrate the positive and negative consequences of IT availability on their business
and users.
The traditional IT approach to measurement and reporting provides an indicator of IT
availability and component reliability which is important for the internal IT support
organization. However, to the business and users, these measures fail to reflect availability
from their perspective and are rarely understood. This often fuels mistrust between the
business and IT where, despite periods of instability, the % target has been met even
though significant business disruption has occurred and customer complaints have been
received.
Furthermore, this method of measurement and reporting can often hide the benefits
delivered to the business from IT improvements. The traditional IT availability measures
can simply mask real IT added value to the business operation.
While the traditional IT availability measurement and reporting methods can be considered
appropriate for internal IT reporting, the disadvantages of this approach are that they:
Fail to reflect IT availability as experienced by the business and the users
Can conceal service hot spots, whereby regular reporting shows the SLA as being
met, but the business, the users, or both, are becoming increasingly dissatisfied with
the IT service
Do not easily support continuous improvement opportunities to drive improvements that
can benefit the business and the users
Can mask IT added value, where tangible benefits to the business and users have
been delivered, but the method of measurement and reporting does not make this
visible.

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Benefits
IT services with an availability requirement are designed, implemented, and

managed to consistently meet that target
Improvement of capability of the IT infrastructure to attain the required levels of

availability to support the critical business processes
Improvement of customer satisfaction and recognition that availability is the

prime IT deliverable
Reduction in frequency and duration of incidents that impact IT availability

Single point for availability is established within the IT organization (process
owner)
Levels of IT availability provided are cost-justified and support SLAs fully

Shortcomings in provision of availability are recognized and coped with in a
formal way
Mindset moves from error correction to service enhancement: from reactive to

proactive attitude
15
Figure 10-14. Availability Management: Benefits
SM251.0
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Risks
Costs of availability management are seen as overhead and are too high
It is difficult to quantify the availability demands of the user and to determine
their costs
Lack of available resources with the required skills

Gathering of availability data requires many tools to underpin and support the
process
Vendor dependency
Broad knowledge of IT infrastructure
16
Figure 10-15. Availability Management: Risks
SM251.0
Notes:

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Best Practices
Separation of design and measurement

Usage in connection with capacity, financial management for IT services,
and IT service continuity management
Determination of metrics using this process
17
Figure 10-16. Availability Management: Best Practices
SM251.0
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Summary
The goal of the Availability Management process is to optimize the capability of
the IT infrastructure, services, and supporting organization to deliver a costeffective and sustained level of availability that enables the business to satisfy
its business objectives.
Aspects: Availability, Maintainability, Reliability, Serviceability

Risk Management
Measures of Availability:
18
MTBSI (Mean Time Between System Incidents)

MTTR (Mean Time To Repair )
MTBF (Mean Time Between Failures)
Calculation of Availability
Figure 10-17. Availability Management: Summary
SM251.0
Notes:

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Unit 11. Capacity Management

This unit is an introduction to Capacity Management, and its

framework.

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Unit 11
Capacity Management
Content:
Capacity Management objectives and overview

Important aspects
Capacity planning
Capacity Database (CDB)
Best practices
Summary
Figure 11-1. Unit 11: Capacity Management
SM251.0
Notes:

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Capacity Management
3
Figure 11-2. Capacity Management: Integration into the IPW Model
SM251.0
Notes:

11-3
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Capacity Management
Mission Statement
Capacity Management is responsible for ensuring that the capacity of the IT infrastructure matches
the evolving demands of the business in the most cost-effective and timely manner.
Capacity Management needs to understand the business requirements (the required provision of IT
services), the organization's operation (the current provision of IT services), and the IT infrastructure (the
means of provision of IT services), and to ensure that all the current and future capacity and performance
aspects of the business requirements are provided cost-effectively.
However, Capacity Management is also about understanding the potential for service provision. New
technology needs to be understood and, if appropriate, used to deliver the services required by the
business. Capacity Management needs to recognize that the rate of technological change will probably
increase and that new technology should be harnessed to ensure that the IT services continue to satisfy
changing business expectations. One of the result of the activities of Capacity Management is a
documented capacity plan.
The goal of Capacity Management:
Ensure
Ensure
required,
required,acceptable,
acceptable,
costeffective
cost
cost-effectivecapacity
capacity
of
IT
resources,
in
of IT resources, inorder
orderthat
thatthe
theservice
servicelevels
levelswhich
whichare
are
agreed
with
the
company
are
fulfilled
in
a
timely
manner.
agreed with the company are fulfilled in a timely manner.
4
Figure 11-3. Capacity Management: Mission Statement
SM251.0
Notes:

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Capacity Management
Why Capacity Management?

There are a number of reasons why an organization should implement Capacity
Management.
Capacity Management provides the required information about:
Which components need to be upgraded (such as main memory, faster hard
disk, larger bandwidth)
When to perform upgrades not too early, otherwise expensive overcapacities
cannot be used; and not too late, in order to avoid bottlenecks, bad
performance, and consequently, customer dissatisfaction
How much the upgrade will be planning elements and predictions will
influence budget planning
Capacity management is based on:
Business requirements
Existing structures of the company
Existing IT infrastructure
The customer does not require capacity; the customer requires services
The expenditure for IT capacities needs to be continuously justifiable
It provides information on current and planned resource utilization of individual
components, allowing decisions on which components to upgrade, when to do so,
and how much it will cost.
5
Figure 11-4. Capacity Management: Why Capacity Management?
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Notes:

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IBM Global Services
Capacity Management
Capacity Management has three sub-processes
Demand Management
Business
Capacity
Management
Service
Capacity
Management
Resource
Capacity
Management
Capacity Plan
Iterative activities
(Performance Mgmt)
Capacity
Database
Figure 11-5. Capacity Management: Capacity Management has three sub-processes
SM251.0
Notes:
Capacity Management consists of a number of sub-processes, within which there are
various activities. The sub-processes of Capacity Management are:
Business Capacity Management: This sub-process is responsible for ensuring that the
future business requirements for IT services are considered, planned, and implemented in
a timely fashion. This can be achieved by using the existing data on the current resource
utilization by the various services to trend, forecast, or model the future requirements.
These future requirements come from business plans outlining new services,
improvements and growth in existing services, development plans, and so on.
Service Capacity Management: The focus of this sub-process is the management of the
performance of the live, operational IT services used by the customers. It is responsible for
ensuring that the performance of all services, as detailed in the targets in the SLAs and
SLRs, is monitored and measured, and that the collected data is recorded, analyzed, and
reported. As necessary, action is taken to ensure that the performance of the services
meets the business requirements. This is performed by staff with knowledge of all the

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areas of technology used in the delivery of end-to-end service, and often involves seeking
advice from the specialists involved in Resource Capacity Management.
Resource Capacity Management: The focus in this sub-process is the management of
the individual components of the IT infrastructure. It is responsible for ensuring that all
components within the IT infrastructure that have finite resource are monitored and
measured, and that the collected data is recorded, analyzed, and reported. As necessary,
action must be taken to manage the available resource to ensure that the IT services that it
supports meet the business requirements. In carrying out this work, the Capacity
Management process is assisted by individuals with specialist knowledge in the particular
areas of technology.

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IBM Global Services
Capacity Management
Tasks
Iterative
Activities
Business
Capacity
Management
Analyze
Tuning
Service
Capacity
Management
Resource
Capacity
Management
Implementation
Capacity
Capacity
Management
Management
Monitoring
Demand
Management
Capacity
Database
(CDB)
Application
Sizing
Figure 11-6. Capacity Management: Tasks
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Notes:
Ongoing: iterative activities, Demand Management, storage of data in the Capacity
Database (CDB)
Ad hoc: Modeling and application sizing
Regularly: Production of capacity plan
Iterative activities:
Monitoring in order to ensure optimum use of hardware and software such that agreed
service levels can be achieved. Metrics are:
CPU, memory, file store utilization
Transactions: per second, response time
Batch duration profiles

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Distinguish between availability data and performance data. Thresholds should be set
based on analysis of previously recorded data. They should be set below targets in SLAs to
allow for corrective action before an SLA is breached.
Analysis of the collected data to identify trends from which normal utilization and service
levels can be established. Report on exception conditions compared with baseline. Predict
future resource usage. Analysis should happen on short-term, medium-term, and
long-term.
Tuning of configurations to improve performance through:
Balancing workloads or disk traffic
Change locking strategy (database, page, table, record, row)
Efficient use of memory
Implementation of tuning activities in the live environment should happen through
Change Management to limit impact on the customers of the service.
Capacity Database
It is a cornerstone of a successful Capacity Management system. It is the basis of
performance and capacity reports to be delivered to management and technical personnel.
All sub-processes use it.
For more details, see notes on page 11-14.
Demand Management
Influence demand for, and use of, resources
Carried out as short-term solution to a capacity problem (like the breakdown of a
redundant component that was also in use, hence halving capacity)
Carried out as longer-term solution if difficult to justify expensive upgrade
Exercised through:
- Physical constraints or limiting usage
- Financial constraints or charging
Can be carried out by any of the three sub-processes.

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Capacity Management
Input & Output

SUB-PROCESS
INPUT
Technologies
SLAs, SLRs, and
service portfolio
Business plans and
strategies
Maintenance windows
Employment and
development plans and
programmes
Planning of future
changes
Incidents and
problems
Service reviews
SLA violation
Financial plans
Budgets
Business Capacity Management

Trend, forecast, model, prototype,
size, and documentation
of future business requirements
Service Capacity Management
Monitor, analyze, tune, and report
on service performance; establish
baselines and profiles of use of
services
Manage demand for service
Resource Capacity Management
Monitor, analyze, and report on
utilization of components,
Establish baselines and profiles on
use of components
OUTPUT
Capacity plans
CDB
Minimum requirements
and profiles
Threshold values and
signals
Capacity reports
(regular, ad hoc, and in
special cases)
SLA and SLR
recommendations
Costs and
recommendations for
further calculations
Proactive changes and
service improvements
Revised maintenance
windows
Effectiveness review
Audit reports
Figure 11-7. Capacity Management: Input & Output
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Capacity Management
Iterative Activities
A number of the activities of Capacity
Management need to be carried out
iteratively, and form a natural cycle:
Tuning
Set up and maintain the Capacity Database

Reporting
Analyzes and reports
Production of the capacity plan
Demand Management and Monitoring
Ensure that the future business
requirements for IT services are
considered
Report on performance against targets
contained in SLA
Monitoring of resources
Forecast future capacity requirements
Document costs associated with options
Assess new technology and its relevance
Implementation
Analysis
Monitoring
Resource
Utilization
Thresholds
SLM Exception
Resource Utilization
Reports
Exception Reports
SLM Thresholds
Capacity
Management
Database
(CDB)
Figure 11-8. Capacity Management: Iterative Activities
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Notes:
Monitors should be established on all the components and for each of the services. The
data should be analyzed, using, wherever possible, expert systems to compare usage
levels against thresholds. The results of the analysis should be included in reports, and
recommendations made as appropriate. Some form of control mechanism may then be put
in place to act on the recommendations. This may take the form of balancing services,
changing concurrency levels, and adding or removing resource. The cycle then begins
again, monitoring any changes made to ensure that they have had a beneficial effect, and
collecting the data for the next day, week, or month.

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Capacity Management
Capacity Plan
The Capacity Plan should be published annually in line with the budgetary cycle. Ideally, it
should be updated quarterly, and consists of the following parts:
Introduction
Scope of planning
Methods
Assumptions and prerequisites
Management summary
Business evaluations and scenarios
Service summary
Resource summary
Options for service improvement
Cost model
Recommendations
Business benefit to expect
Potential impact (of not) carrying out recommendations; risks involved
Required resources
Costs: unique and ongoing
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Figure 11-9. Capacity Management: Capacity Plan
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Notes:
Capacity Plan
Contains:
Introduction
Explains background to this issue of the capacity plan:
Current levels of capacity of the organization
Problems and pain points identified due to over- or under-capacity.
Changes since last issue of capacity plan
Scope of plan is given (ideally all IT resources).
Methods used (how and when information obtained from sub-processes):
Business forecasts from business plans
Workload forecasts from users
Service level forecasts from modeling

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Management summary
Highlight main issues, options, recommendations and costs.
Business scenarios
Put the plan in the context of the current and future business environment. Mention all
known business forecasts so that readers can determine what is inside and outside the
scope of the plan.
Service summary
For each current and recent service provision, provide a service profile, including
throughput rates and resulting resource utilization. Trends should be presented.
Service forecasts should be detailed because of new and demised services.
Resource summary
Current and recent resource usage should be documented, reporting on trends.
Resource forecasts coming from service forecasts.
Options for service improvement
Outlines possible options for improving effectiveness and efficiency of service delivery;
upgrading network, consolidating applications, rewriting custom built applications, and so
on.
Cost model
Costs associated with options should be documented.
Current and forecasted cost of providing IT services (data generally coming from IT
financial management).
Recommendations
Summary of recommendations made in previous plan and status.
Any new recommendations should be made.
Recommendations should be quantified in terms of:
Business benefit to expect
Potential impact in (not) carrying out recommendations
Risks involved
Resources required
Setup cost and ongoing cost

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IBM Global Services
Capacity Management
Capacity Database
Capacity Database (CDB)
Data in the CDB is stored and used by all the sub-processes of Capacity
Management because it is a repository that holds a number of different types of
data: business, service, technical, financial, and utilization data.
The CDB is unlikely to be a single database, and probably exists in several

physical locations.
The information in the CDB is used to form the basis of performance and Capacity
Management reports that are to be delivered to management and technical
personnel.
The data is also utilized to generate future capacity forecasts, and to allow
Capacity Management to plan for future capacity requirements.
11
Figure 11-10. Capacity Management: Capacity Database
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Notes:
Capacity Database
It is a cornerstone of a successful Capacity Management system. It is the basis of
performance and capacity reports to be delivered to management and technical personnel.
All sub-processes use it.
It contains business data:
Number of accounts
Number of branches
Number of calls into call centers
Number of PCs
Anticipated workloads
It contains service data:
Transaction response times

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Times for batch jobs to be processed

SLM thresholds
It contains technical data:
Limitations of resources (80% CPU, 30% Ethernet)
It contains financial data:
Financial plans
IT budgets
External suppliers
CMDB
It contains utilization data of resources:
Data of current utilization of components
Lower granularity data on older utilization data of components
Can exist in several physical locations.
Outputs are:
Service- and component-based reports
Exception reporting on capacity and performance for component or service. Special
interest in reporting on items that affect SLAs.
Capacity forecasts to predict future growth.

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Capacity Management
Benefits and Costs

Benefits
Reduced risk of performance problems and
Costs
Setting up Capacity Management:
failure
Cost savings
Both achievable through:
Planned buying
Deferring expenditure until really
needed (but in a controlled way)
Matching capacity to business need
Ensures that systems have sufficient capacity
to run the applications required by the
business for the foreseeable future
Provides information on current and planned
Procurement of required hardware and

software, such as monitoring tools
Project management
Staff costs
Accommodation
Daily management of Capacity
Management:
Annual maintenance and upgrades
Ongoing staff costs
Recurring accommodation costs (leasing,
rental, energy)
resource utilization of individual components

allowing decisions on which components to
upgrade, when to do so, and how much it will
cost.
Planned
Planned buying
buying is
is cheaper
cheaper than
than panic
panic buying.
buying.
12
Figure 11-11. Capacity Management: Benefits and Costs
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Capacity Management
Risks
Customer expectations exceed technical capability

Unrealistic product information from vendor
Wrong estimation of future workload by the customer
Precise predictions become more difficult with shorter business planning
cycles
Considering all service areas (software, PC, server, LAN, WAN, TK, and so
on) within the scope of capacity management
13
Figure 11-12. Capacity Management: Risks
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Notes:
Possible problems:
Over-expectation
Customer expectations often exceed technical capability. Therefore it is essential that
customer expectations for new applications be managed from the outset. Capacity
Management needs to discuss with customers the technical feasibility and, more
importantly, the cost implications, of meeting over-ambitious requirements. The opportunity
to achieve this is provided as part of the application sizing activity, where requirements and
expectations should be discussed and agreed between all parties.
The improvements that can be made through regular tuning may not be significant.
However, if a service or application has been badly designed or implemented, a large
performance gain may be possible.
Also Demand Management is often constrained by the requirement for constant online
access to corporate information. It is not always easy or possible to reschedule the use of

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services to quieter off-peak periods. For example, it would be difficult for an Internet site
selling flowers to influence the demand for flowers on or around St Valentine's Day!
Vendor influence
Where budget and sales target deadlines coincide, it is not uncommon to be offered what
seems to be the deal of a lifetime, such as purchase sufficient capacity for today and
tomorrow at yesterdays prices. On face value, cost efficiencies can be realized; however,
before purchasing, remember:
The pace of change is rapid: today's special offer is often tomorrow's end-of-line
product
Technological advancement: tomorrow's technology will perform faster and have more
built-in capacity than today's technology
The overall reducing cost of technology: today's performance and capacity will always
be cheaper tomorrow and considerably cheaper in six months time.
Manufacturers quoted performance figures are often not achievable within a production
environment. Care should be taken when negotiating with vendors for additional
performance. Where possible, performance figures should be verified before purchase
through reference site visits and by simulation testing where appropriate.
Lack of information
Time-to-market pressures are placing ever-increasing demands, and as a result business
planning cycles are shorter. This is not an excuse, but a statement of fact about the
environment within which Capacity Management must function. Traditionally, it has always
been difficult to obtain accurate business forecasts, in order to predict increases and
decreases in demand for IT capacity.
However, even the best business planning function cannot always accurately predict
demand. There have been numerous recent examples of unprecedented and unpredicted
consumer demand for either the latest product or the latest information. Internet sites that
are suddenly popular are good examples of consumer demand far outstripping supply and
causing failed or drastically delayed delivery of information or products. The Internet is a
prime example where consumers literally at the click of a button are lost forever as they
go elsewhere to receive a service, never again to return to a temporarily unavailable or
slow site.
It is not possible to provide consistently high-quality service levels, cost-effectively, without
timely, accurate business planning information being made available. However, Capacity
Management can work effectively, even with crude business estimates. Also, it helps if the
Capacity Management process understands the business and can talk to the customer in
their language. The business is much more likely to know how many chocolate bars it is
going to sell than the amount of CPU seconds it uses in the process. The Capacity
Management process always improves over time.

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Capacity Management in a distributed environment

Capacity Management is often considered only as a requirement within the host
environment; the network and client environments are not always included as part of the
Capacity Management process.
Anecdote
A group of network managers were asked, When is the first time you get involved in
capacity planning for new applications to be utilized across the network? Unfortunately,
the most common answer was, Usually during the first week of live running, when users
complain about poor performance. Another common answer was During customer
acceptance testing, when the application is being tested by users just before transition to
live running.
However, when also asked, If you had been involved from the outset, when the new
application was just a customer requirement, could you have provided accurate figures on
spare network capacity within the target environment?, only a handful were confident in
their ability to do so.
Result
There are a number of results and lessons to be learned from the above:
The network is not within the scope of Capacity Management, but it should be.
Huge potential exists for new applications to perform poorly or fail totally.
Customer perception is that IT fails to deliver (again).
Potential financial costs are incurred by the business due to application failure.
Unpredicted and unbudgeted IT costs are incurred to resolve the performance
problems, which usually require to be addressed urgently and thus cost even more.
Level of monitoring to be implemented
Tools available today provide extremely comprehensive monitoring capabilities. It is
possible to monitor most aspects of most components in the IT infrastructure. However,
careful consideration should be given to the level of monitoring to be undertaken, and the
decision should be based upon:
Business impact of component failure: can monitoring be justified on the basis of
potential impact of failure?
Utilization volatility: is utilization subject to a steady growth or decline over time, or do
highly volatile changes in utilization occur?
Ability to monitor components: can monitoring and reporting be automated?
Cost of component monitoring and reporting: are costs greater than the potential use
that can be made of the data collected?

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IBM Global Services
Capacity Management
Best Practices
The Capacity Management process should be reviewed for effectiveness and
efficiency at regular intervals to ensure that:
It is producing the required output at the required times for the appropriate
audience
Its activities are cost-effective
Critical Success Factors

Success in Capacity Management is dependent on a number of factors:
14
Accurate business forecasts

Knowledge of IT strategy and plans, and that the plans are accurate
An understanding of current and future technologies
An ability to demonstrate cost-effectiveness
Interaction with other effective Service Management processes
An ability to plan and implement the appropriate IT capacity to match business
needs
Figure 11-13. Capacity Management: Best Practices
SM251.0
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IBM Global Services
Capacity Management
Summary
The goal of Capacity Management is to ensure that all the current and
future capacity and performance aspects of the business requirements
are provided in a timely and cost-effective manner.
Responsibilities: Business Capacity Management, Service Capacity

Management, Resource Capacity Management
Demand Management
Capacity Plan and Capacity Database (CDB)
Good
Good Capacity
Capacity Management
Management ensures
ensures NO
NO SURPRISES!
SURPRISES!
15
Figure 11-14. Capacity Management: Summary
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Notes:

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Unit 12. Financial Management for IT Services

This unit is an introduction to Capacity Management, and its

framework.

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IBM Global Services
Unit 12
Content:
Financial Management objectives and overview

Important aspects
Costs types
IT accounting
Interfaces to other service management processes
Benefits and risks

Best practices
Summary
Figure 12-1. Unit 12: Financial Management
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Figure 12-2. Financial Management: Integration into the IPW Model
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IBM Global Services
Mission Statement
Financial Management ensures that the IT organization is able to account fully on
the money spent on IT services, to attribute these costs to IT services delivered to
customers, and to assist management decisions on IT investment by providing
detailed business cases for changes to IT services.
The goal of IT Financial Management is also:
For internally (in-house) oriented IT service providers
Monitoring of the usage of IT components and resources for supplying IT
services with regard to cost efficiency
For externally oriented IT service providers
Recording of costs incurred, and details of how these relate to services
performed for the customer
Support management decisions about IT investment by means of detailed
business cases.
4
Figure 12-3. Financial Management: Mission Statement
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Why Financial Management for IT Services (1)

Because you can provide the best service and nevertheless can go
bankrupt
Because there are minimal legal requirements for financial reporting
Because service providers should be business-oriented
Because of increasing economic pressure
Figure 12-4. Financial Management: Why Financial Management for IT Services (1)
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IBM Global Services
Why Financial Management for IT Services (2)

IT Financial Management...
Supports the development of a solid investment strategy

Enables definitions of performance objectives
Enables the measurement of services performed
Makes it easier to prioritize resource deployment, and with it, optimized resource planning
Ensures solid, financially justified administration of the assets used in the organization
Supports management in their daily decision-making in order to plan risk reduction
Creates organizational prerequisites for performing cost-objective accounting
Cost-objective accounting enables...
Flexible determination of services which are to be defined. It is the basis for the business design of IT
services.
Determination of real IT service costs, enabling transparent, well-measured, content-related pricing

Reporting for planning and controlling
Reporting for financial accounting
Figure 12-5. Financial Management: Why Financial Management for IT Services (2)
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Tasks
ITITFinancial
Financial
Management
Management
Budgeting
IT Accounting
Ensures that
business provides
sufficient funds to
run the IT services
it requires
Provides management
information on the
cost of providing IT
services supporting
business needs
Charging
Provides sound
business method of
balancing shape
and quantity of IT
services with needs
and resources of the
customers
Figure 12-6. Financial Management: Tasks
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IBM Global Services
Process
Business IT
Business IT
requirements
requirements
IT operational
IT operational
plan (including
plan (including
budgets)
budgets)
Financial targets
Cost analysis
Cost analysis
(accounting)
(accounting)
Costing
models
external
Charging
Charging
internal
Charging
Charging
Charging
policies
Feedback of proposed charges to

businesses
Figure 12-7. Financial Management: Process
SM251.0
Notes:
This slide looks at methods for an IT organization to predict and calculate the costs of
service, and discusses ways of estimating the proportion of costs that can be attributed to
each customer where an IT service is shared. This simple diagram is used as a basis for
the whole item.
In summary:
Budgeting enables an organization to:
Predict the money required to run IT services for a given period
Ensure that actual spend can be compared with predicted spend at any point
Reduce the risk of overspending
Ensure that revenues are available to cover predicted spend (where charging is in
place)
IT accounting enables an organization to:
Account for the money spent in providing IT services

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Calculate the cost of providing IT services to both internal and external customers
Perform cost-benefit or Return-on-Investment analyses
Identify the cost of changes
Charging enables an organization to:
Recover the costs of the IT services from the customers of the service
Operate the IT organization as a business unit if required
Influence user and customer behavior

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Process Budgeting and Accounting Activities (mandatory)

To understand whether an IT organization is doing the best that it can and to demonstrate
this to its customers, it has to both understand the true cost of providing a service and
manage those costs professionally. To do this, it is usual to implement IT accounting and
budgeting processes, and often to implement charging processes as well.
Budgeting is the process of predicting and controlling the spending of money within the
organization, and consists of a periodic negotiation cycle to set budgets (usually annual) and the
day-to-day monitoring of the current budgets. Budgeting enables an organization to:
Predict the money required to run IT services for a given period
Ensure that actual spending can be compared with predicted spending at any point
Reduce the risk of overspending
Ensure that revenues are available to cover predicted spending (where charging is in place)
Accounting is the set of activities that enable the IT organization to account fully for the way its
money is spent. IT accounting enables an organization to:
Account for the money spent in providing IT services
Calculate the cost of providing IT services to both internal and external customers
Perform cost-benefit or return-on-Investment analyses
Identify the cost of changes
Figure 12-8. Financial Management: Process Budgeting and Accounting Activities (mandatory)
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Notes:
The aim of budgeting is that the actual costs match the budget (predicted costs). This
budget is usually set by negotiations with the customers who are providing the funds
(although this sometimes happens at an unrefined level, where the business leaders agree
proportions of their revenue to be used to fund IT, based upon what IT have told them their
costs are). Good budgeting is essential to ensure that the money does not run out before
the period ends. Where shortfalls are likely to occur, the organization needs early warning
and accurate information to enable good decisions to best manage the situation.
Current leading practice is to use IT accounting to aid investment and renewal decisions,
and to identify inefficiencies or poor value, but to charge a fixed amount for an agreed
capacity (determined by the level of service agreed in the Service Level Agreements or
SLAs). In this case, IT Finance Management works with Service Level Management (they
may even be the same person) to ensure that the overall costs of running the agreed
services should not exceed the predicted costs. Charging is then often a matter of billing for
agreed periods at an agreed rate, for example 1/12 of each customer's IT budget each
calendar month. Additional charges are made for work above the agreed service levels
(such as office moves, major roll-out, unplanned hardware upgrade).

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Process Charging (optional)

Charging has motivational aspects, considering the effects upon both the
provider and the customer of the service. The objective is to optimize the
behavior of both parties in achieving the organization's aims.
Charging enables an organization to:
Recover the costs of the IT services from the customers of the service
Operate the IT organization as a business unit if required
Achieve transparency for customers
Influence user and customer behavior
Achieve profit
Use market strength (invisible hand)
Deliver effective services in agreed quality and quantity
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Figure 12-9. Financial Management: Process Charging (optional)
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IBM Global Services
Cost Types
For producing a cost model, the suggested cost types are:
Hardware costs (CPU, disk storage, LANs, peripherals.)

Software costs (OS, applications, database, systems management.)
People costs (payroll costs, company cars, relocation costs, expenses, overtime,
consultancy)
Accommodation costs (offices, storage, secure areas, utilities)

External service costs (security, outsourced services,)
Transfer costs (goods and services that are sold from one part of an organization
to another)
All
All costs
costs for
for services
services can
can be
be grouped
grouped into
into the
the cost
cost types
types listed.
listed.
Other
types
are
possible;
this
is
not
a
fixed
rule.
Other types are possible; this is not a fixed rule.
Important:
Important: all
all major
major cost
cost elements
elements in
in the
the current
current or
or proposed
proposed IT
IT
budget
are
identified
and
then
attributed
to
the
customers
who
budget are identified and then attributed to the customers who
cause
cause them.
them.
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Figure 12-10. Financial Management: Cost Types
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Notes:
External service and transfer costs need further explanation. It is now common to buy in
services from external parties (external services) that are a mixture of cost types, for
example an outsourced service for providing an organizations application development, or
the provision of a data center. It may be difficult to break down this cost (into each of the
first four categories), as it is likely to contain elements that are indivisible or that the
supplier will not wish to detail. It is easier and more usual to categorize this as an external
service cost.
Transfer costs are those that represent goods and services that are sold from one part of
an organization to another (often within a multinational or other large organization that has
a sophisticated internal accounting system). Transfer costs may be for:
Hardware (an IT organization buying PCs on behalf of a business customer)
Software (the corporate finance department producing control mechanisms for IT to
manage their costs)
People (the HR overhead levied by the corporate HR department)
Accommodation (a charge made by the Facilities Management department)

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Transfer costs should be visible in the cost model, because people may forget that internal
goods and services represent a cost to the organization and are part of the cost of
providing service. Hence, a false figure may be reached when assessing costs if a service
is dependent upon activity from another part of the organization but this cost is excluded
from calculations. Some organizations will insist on these transfer costs being accounted
for in each part of the organization, while others might only use them when modeling costs,
and no money will actually pass across the organization. In this publication, it is assumed
that it is not necessary to separately identify transfer costs in the cost model examples.

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Cost Classification
Capital Costs
Operational Costs
are the purchase or major enhancement of fixed

assets, for example computer equipment,
building, and plant, often also referred to as
one-off costs.
are those resulting from the day-to-day running

of the IT Services organization, such as staff
costs, hardware maintenance and electricity,
and relate to repeating payments whose effects
can be measured within a short timeframe,
usually less than the 12-month financial year.
Direct Costs
those clearly attributable to a single customer,
such as manufacturing systems used only by
the Manufacturing division.
Indirect Costs (sometimes called

overheads) are those incurred on behalf of all,
or a number of, customers, such as the network
or technical support department, which have to
be apportioned to all, or a number of, customers
in a fair manner.
Fixed Costs
Variable Costs
Costs that do not vary even when resource

usage varies. Examples of this would be a
maintenance contract for a server or a corporate
software licence (within agreed user limits).
are those that vary with some factor, such as

usage or time.
12
Figure 12-11. Financial Management: Cost Classification
SM251.0
Notes:
The cost-by-customer cost model requires that all major cost elements in the current or
proposed IT budget be identified and then attributed to the customers who cause them.
To do this, the costs first have to be identified as either direct or indirect:
Direct costs are those clearly attributable to a single customer, such as manufacturing
systems used only by the Manufacturing division.
Indirect costs (sometimes called overheads) are those incurred on behalf of all, or a
number of, customers, such as the network or the technical support department, which has
to be apportioned to all, or a number of, customers in a fair manner.
Any indirect costs (sometimes called unabsorbed overheads) which cannot be apportioned
to a set of customers have then to be recovered from all customers in as fair a way as
possible, usually by uplifting the costs calculated so far by a set amount. This ensures that
the sum of all of the costs attributed to each customer still equals the total costs incurred by
the IT organization; this is referred to as the balance check. This balance check can be
applied to costs divided in other ways, such as by service or location; the sum of the parts
should always equal the whole.

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If the cost model is being produced for the first time, the categories and cost elements for it
need to be developed first, to a level of detail that meets the needs of IT accounting and of
any charging to be performed. Hence an understanding of charging policies is necessary
when the cost model is drawn up.
If costs are mainly direct, perhaps because each customer has independent hardware and
software, the method of recording and of apportioning costs can be very simple. For
example, if Finance are the only customers of the general ledgers and the system on which
they run, all costs directly associated with the general ledgers, including purchase,
maintenance, and support, can be attributed to the Finance department's code in the
ledgers (often called a cost center or a charge code).
However, if resources are shared, for instance a mainframe is running applications for
more than one customer, the hardware costs may have to be classified as indirect and
apportioned to each customer, say by CPU seconds, disk storage, print volumes, and so
on, from workload predictions. To do this requires a model that allows these costs to be
spread across a number of customers.
For finance purposes, costs are classified into either capital or operational when the
financial ledgers are reported (the books). This is because capital expenditure is
assumed to increase the total value of the company, while operational expenditure does
not, although in practice the value of capital expenditure decreases over time
(depreciates).
This distinction affects IT accounting, because the cost model needs a method of
calculating the annual cost of using a capital item (such as a mainframe) to deliver an IT
service. The annual costs must make allowance for the decreasing value of capital items
(assets), and make for timely renewal of capital items, such as buildings, servers, and
applications. Usually, this is taken as the annual depreciation, from a method set by the
Finance department (within the boundaries of the country's laws).
Capital costs are typically those applying to the physical (substantial) assets of the
organization. Traditionally this was the accommodation and machinery necessary to
produce the organizations product. Capital costs are the purchase or major enhancement
of fixed assets; for example, computer equipment, building, and plant are often also
referred to as one-off costs. It is important to remember that it is not usually the actual
cost of items purchased during the year that is included in the calculation of the cost of the
services, but the annualized depreciation for the year.
Operational costs are those resulting from the day-to-day running of the IT services
organization, such as staff costs, hardware maintenance, and electricity, and relate to
repeating payments whose effects can be measured within a short timeframe, usually less
than the 12-month financial year.
Fixed or Variable
Costs that do not vary even when resource usage varies are referred to as fixed costs.
Examples of this would be a maintenance contract for a server, or a corporate software
license (within agreed user limits).

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Variable costs are those that vary with some factor, such as usage or time. They are likely
to be used for cost elements which cannot be easily predicted, and for which it is to the
benefit of both supplier and customer to determine the costs exactly, perhaps for variable
charges to be applied. Examples of charges that might vary, because the underlying cost
varies, are out-of-hours cover, major equipment relocation, and the production of additional
quarterly reports.
A cost element such as file store may be considered to be variable. If a customer requires
an additional 10 GB, it may be possible to calculate that the cost of this is 1000, and
hence that the cost per GB is 100. The danger of this approach is that there are often
sharp changes in costs because they cannot be continuously scaled: the next disk drive
may require another cabinet, or an additional process run on the server may cause
queuing problems resulting in all jobs taking longer to run.
It is sometimes necessary to view a cost as having a fixed element and a variable element,
for example, using file store at all requires disk controllers and bandwidth, causing a fixed
cost. The variable cost of additional disk drives can then be calculated and added to the
fixed portion. This level of detail is not usually needed in calculating the cost of a service,
but can be useful when evaluating competing technologies or services.

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Costs types Example: Printing a report

Printing out a report:
Fixed direct costs

Depreciation of the printer
Fixed indirect costs

IT Management team, support team
Variable direct costs
Paper consumed for printing
Variable indirect costs
Printing another report on the same printer
Ink cartridge
13
Figure 12-12. Financial Management: Costs types Example: Printing a report
SM251.0
Notes:

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IBM Global Services
Example of IT Accounting
Hardware
Software Personnel
Hardware
Software Personnel
Facility
Facility
External services
External services
Transfer
Transfer
Cost category calculation

Cost category calculation
Cost centre accounting
Cost centers
Overhead costs
Indirect costs
(overhead costs)
Cost centers
Direct costs
(individual costs)
Overhead costs extra charge
Cost objective calculation

Revenue
- Individual costs
- Overhead costs
= accumulated
profit
14
Calculation
Calculation
Product (groups)
Figure 12-13. Financial Management: Example of IT Accounting
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Notes:

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Links to other processes
Service Level Management: Cost of meeting customer SLA requirements

impacts shape and scope of services that are agreed. IT Finance manager
cooperates with Service Level manager about the costs meeting business
demands and charging policies influencing customer behavior. The more
variations to service levels, the larger the scope of charging, but the larger
the overheads of budgeting, IT accounting, and charging.
Capacity/Availability Management: Cost information can be used to

estimate cost of desired capacity or availability.
Configuration Management: Financial management requires asset and

cost information which can be provided through the CMDB.
Change Management: Influence of changes on cost.
15
Figure 12-14. Financial Management: Links to other processes
SM251.0
Notes:
Financial Management for IT Services interacts with most IT service processes and has
particular dependencies upon and responsibilities to:
Service Level Management - The SLA specifies customer expectations and IT
Services obligations. The cost of meeting the customer's requirements may have a
major impact on the shape and scope of the services that are eventually agreed. IT
Finance Management liaises with Service Level Management about the costs of
meeting current and new business demands, the charging policies for the organization,
their effects on customers, and how the policies are likely to influence customer and
user behavior. The more that the SLA allows individual customers to request variations
to service levels, the greater is the scope for (and potential benefits of) charging for IT
services, but also the greater the overheads of budgeting, IT accounting, and charging.
Capacity Management - Cost information can be used to estimate the costs of the
desired capacity and availability of the system. In planning the capacity, it may be
necessary to discuss the costs with individual customers or the organization as a whole.

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Data that is collected so that costs can be determined may also be relevant to capacity
assessments, such as staff effort, machine usage.
Configuration Management -Financial Management requires asset and cost
information that may be managed by large organization-wide systems. Configuration
Management is responsible for managing the data relating to assets (configuration
items) and their attributes (such as cost).

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Benefits
IT accounting supports the IT Service Manager

Statements about profitability of the individual IT services
Essential decisions about IT services and the required investments
Data for justifying IT expenditures
Essential planning and budgeting
Overview of costs, created by service failures, as a basis for expenditure
justification in strategy planning
Users can track costs of the services they have used
16
Figure 12-15. Financial Management: Benefits
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Notes:

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IBM Global Services
Risks
New discipline, so limited understanding of leading practice in cost modeling and

charging mechanisms, leading to overly complex or ineffective systems
IT accounting relies on planning information provided by other functions within and

outside IT services management, and is sometimes difficult to obtain
Combination of IT skills and accountancy skills is rare

IS strategy and objectives are not clear, hence prediction of capacity requirement is
not accurate
Senior management may not realize benefits of IT accounting and charging

Resentment of administrative overhead and workload
Complex IT accounting and charging makes cost larger than value of information
provided
Monitoring tools providing resource usage are inaccurate or not cost-efficient

17
Figure 12-16. Financial Management: Risks
SM251.0
Notes:
There are a number of possible problems in implementing IT accounting and charging:
IT accounting and charging are often new disciplines in IT Services, and there is limited
understanding of leading practice in cost modelling and charging mechanisms, which
could lead to over-complex or ineffective systems.
IT accounting relies on planning information provided by other processes both within
and outside IT Services Management which may not be routinely available, delaying the
project.
Staff combining accountancy and IT experience are rare, so many activities may need
to be shared with staff from outside IT Services who may not have this as their priority.
The IS strategies and objectives of an organization may not be well formulated and
documented, and prediction of capacity requirement may not be accurate.
Senior business managers may not recognize the benefits of IT accounting and
charging, and may resent the administrative overheads and the limitations on workload.

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The IT organization may not be able to respond to changes in users' demands once
costs become an influence.
The IT accounting and charging processes are so elaborate that the cost of the system
exceeds the value of the information produced.
The monitoring tools providing resource usage information are inaccurate or irrelevant,
or cost too much to develop and maintain..

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IBM Global Services
Best Practices
Clear differentiation between accounting and charging

Connection with Availability Management, Capacity Management,
Configuration Management, and Change Management
Customer-specific charging
Financing, benchmarks, and investments are very important
18
Figure 12-17. Financial Management: Best Practices
SM251.0
Notes:

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Summary
The goal of Financial Management is to provide cost-effective stewardship

of the IT assets and resources used in providing IT services
Responsibilities: Budgeting, accounting, charging

Cost classification (capital/operational, direct/indirect, fixed/variable)
19
Figure 12-18. Financial Management: Summary
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Notes:

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Unit 13. IT Service Continuity Management

(ITSCM)
This unit is an introduction to Continuity Management, and its

framework.
Unit 13. IT Service Continuity Management (ITSCM)

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Unit 13
IT Service Continuity Management (ITSCM)

Content:
IT Service Continuity Management objectives and overview

Some definitions
Important aspects
Business impact
Risk analysis
Service recovery
Continuity plan
Continuity plan testing and review

Summary
Figure 13-1. Unit 13: IT Service Continuity Management (ITSCM)
SM251.0
Notes:

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ITSCM Management
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Figure 13-2. ITSCM Management: Integration into the IPW Model
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Notes:

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IBM Global Services
ITSCM
Mission Statement
The mission for IT Service Continuity Management (ITSCM) is to support the overall Business
Continuity Management process by managing risks to ensure that IT services (including computer
systems, networks, applications, telecommunications, technical support, and service desks) can be
recovered within required, agreed-to business timescales.
ITIL Discipline Contingency Planning (disaster planning) was renamed to IT Service Continuity Management
(ITSCM), and is now part of Business Continuity Management.. The dependencies between business
processes and technology are now so intertwined that Contingency Planning (or Business Continuity
Management, as it is now sometimes termed) incorporates both a business element (Business Continuity
Planning) and a technology element (IT Service Continuity Management Planning).
Goal of ITSCM:
The goal for ITSCM is to support the overall Business Continuity Management process by ensuring
that the required IT technical and services facilities, including:
computer systems
networks
applications
telecommunications
technical support and Service Desk
can be recovered within required, and agreed, business timescales.
Figure 13-3. ITSCM: Mission Statement
SM251.0
Notes:

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ITSCM
Why ITSCM
In today's highly competitive and service-oriented business environment,

organizations are judged on their ability to continue to operate and provide a
service at all times. ITSCM focus is to:
- Increase dependence on IT services and business protection
- Reduce cost and time effort for recovery
- Ensure survival
Continuity planning is therefore essential. ITSCM ensures that a business is

capable of recovering substantial services and their access in the event of a
disaster.
Many businesses do not survive the first year after an IT disaster!

5
Figure 13-4. ITSCM: Why ITSCM
SM251.0
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ITSCM
Definitions: Business Continuity Management (BCS) and ITSCM
Business Continuity Management (BCM) is concerned with managing

risks to ensure that an organization can continue operating to at least a
predetermined minimum level. The BCM process involves:
Reducing the risk to an acceptable level
Planning for recovery of business processes should a disruption to the
business occur
IT Service Continuity Management (ITSCM) is a part of the overall BCM
process and is dependent on information derived from it. It focuses on the
continuity of IT services to the business. Before it is implemented, the
minimum business requirements must be determined.
Figure 13-5. ITSCM: Definitions: Business Continuity Management (BCS) and ITSCM
SM251.0
Notes:

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ITSCM
Tasks
ITSCM
ITSCM
Taking
requirements
from BCM
Making, testing,
improving, and
maintaining a
continuity plan
Risk analysis
and risk
management
Figure 13-6. ITSCM: Tasks
SM251.0
Notes:

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ITSCM
Continuity Management Process

Phase 1: Initiation
Initiate BCM
Business Impact Analysis
Phase 2: Requirements and Strategy
Risk Assessment
Business Continuity Strategy
Phase 3: Implementation
Organizational
and
Implementation
Planning
Implement
Standby
Arrangements
Develop Recovery
Rules
Implement Risk
Reduction
Measures
Develop Procedures
Initial Testing
Education and Awareness

Review and Audit
Testing
Change Management
Training
Assurance
8
Phase 4: Operational Management
Figure 13-7. ITSCM: Continuity Management Process
SM251.0
Notes:
It is not possible to develop an effective ITSCM plan in isolation; it must fully support the
requirements of the business. This section considers the four stages of the Business
Continuity lifecycle, with particular emphasis on the IT aspects. A full understanding of the
Business Continuity process can be obtained through the OGC ITIL publications,
An Introduction to Business Continuity Management and A Guide to Business Continuity
Management.

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ITSCM
Risk of events that can cause disaster

Event
Event
Percent
Percent
Theft
Theft
36%
36%
Virus
Virus
20%
20%
Hacking
Hacking
16%
16%
Hardware
Hardware // Communication
Communication
11%
11%
Environment
Environment
7%
7%
Software
Software
4%
4%
Fire
Fire // Flood
Flood // Force
Force Majeure
Majeure
3%
3%
Other
Other
3%
3%
Gartner Study 2001
Figure 13-8. ITSCM: Risk of events that can cause disaster
SM251.0
Notes:

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IBM Global Services
ITSCM
Some events that have caused problems
Below
Below is
is aa brief
brief list
list of
of high-profile
high-profile events
events that
that have
have caused
caused significant
significant problems
problems to
to
organizations
organizations over
over the
the years:
years:
Technical
Technical failure:
failure: London
London Stock
Stock Exchange
Exchange (2000)
(2000)
Poison
Poison gas:
gas: Tokyo
Tokyo Underground
Underground System,
System, Japan
Japan (March
(March 1995)
1995)
Power
Power Loss:
Loss: Auckland,
Auckland, New
New Zealand
Zealand (December
(December 1997)
1997)
in
in 2003
2003 alone:
alone: US/Canada,
US/Canada, Italy,
Italy, Sweden/Denmark
Sweden/Denmark
Earthquake:
Earthquake: Kobe,
Kobe, Japan
Japan (January,
(January, 1995),
1995), Los
Los Angeles,
Angeles, USA
USA (January
(January 1994)
1994)
Bombing
Bombing ::
World
World Trade
Trade Center,
Center, New
New York,
York, USA
USA (February
(February 1993)
1993)
Oklahoma
City,
Oklahoma,
USA
(April
Oklahoma City, Oklahoma, USA (April 1995)
1995)
Docklands,
Docklands, London,
London, England
England (February
(February 1996)
1996)
Bishopsgate,
Bishopsgate, London,
London, England
England (April
(April 1993)
1993)
Manchester,
Manchester, England
England (June
(June 1996)
1996)
World
Trade
Center,
New
York,
World Trade Center, New York, USA
USA (September
(September 2001)
2001)
Flood:
Flood: Bangladesh
Bangladesh (July
(July 1996),
1996), Pakistan
Pakistan (August
(August 1996),
1996), Germany/Poland
Germany/Poland (2002)
(2002)
Web
site
denial
of
service
attacks,
such
as
Yahoo
(2000),
Microsoft
(2003),
Web site denial of service attacks, such as Yahoo (2000), Microsoft (2003), SCO
SCO (2004)
(2004)
10
Figure 13-9. ITSCM: Some events that have caused problems
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ITSCM
Risk Analysis as part of BCM Requirements definition
Assets
Threats
Risk analysis
Risks
Risks
Weaknesses
Risk management
Countermeasures
11
Damage Reduction
Disaster
Management
Figure 13-10. ITSCM: Risk Analysis as part of BCM Requirements definition
SM251.0
Notes:
The second driver in determining ITSCM requirements is the likelihood that a disaster or
other serious service disruption will actually occur. This is an assessment of the level of
threat and the extent to which an organization is vulnerable to that threat.
The top section of the figure refers to the risk analysis: if an organizations assets are
highly valued, and there is a high threat to those assets, and the vulnerability of those
assets to those threats is high, there would be a high risk. The bottom section of the figure
shows risk management, where countermeasures (proactive), damage reduction
(operation), and disaster management are applied to manage the business risks by
protecting the assets.

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ITSCM
The continuity strategy involves the selection of recovery options
Manual workaround
Can be an effective interim measure but mostly not to be used for more complex
business processes
Takeover by another organization with similar equipment (reciprocal)

Arrangement with a another organization using similar technology
Gradual recovery (cold standby)

Recovery of service about 72 hours
Provision of empty accommodation is foreseen New Installation
Intermediate recovery (warm standby)

Recovery of service about 24 hours
Disaster Recovery center for data recovery only
Immediate recovery (hot standby)
For immediate restoration of service (seconds)
Using internal, external, fixed, portable, mobile centers
12
Figure 13-11. ITSCM: The continuity strategy involves the selection of recovery options
SM251.0
Notes:
Strategy: Recovery options
To be considered for:
People and accommodation: alternative premises, location, and mobility of staff
IT systems and networks: recovery of hardware, software, networks, and data used.
Relies on effective backups and good availability management
Critical services: such as power, telecommunications, water
Critical assets: such as paper records and reference material
It should take short-term and long-term recovery into account.
Options are:
Do nothing: not a very good idea
Manual workarounds: can be an effective interim measure but mostly not to be used
for more complex business processes

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Reciprocal arrangements with another organization using similar technology is a good

solution in a batch processing environment, but doesn't work in a distributed
environment
Gradual recovery or cold-standby is good for an organization that can wait up to 72
hours for recovery of full IT services. Provision of empty accommodation is foreseen but
everything else has to be installed (computer equipment and restoration of data).
Intermediate recovery or warm-standby for recovering IT services within 24 hours.
Typically this is through an equipped disaster recovery center where only data needs to
be recovered. Disadvantages are the distance and sharing with other customers.
Immediate recovery or hot-standby is for immediate restoration of services, and is
mostly an extension of intermediate recovery, where exclusive access to systems is
provided. Also a mirroring service can be established with regular data transfers. Times
of recovery vary from a second to between 2 and 4 hours.

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ITSCM
Continuity Plan Invocation

The invocation is the ultimate test of BCM and ITSCM plans.
The following should be known in case of emergency:
- Where the plans are located
- The most important actions and points of decision
- Contact information of the crisis management team
The plan should contain the following details:

- Where are the backup media?
- Where are the essential documentations, procedures, PC images, and so on?
- How should the technical staff be mobilized, and which staff?
- Contacting and alerting external suppliers (hardware; software if required).
13
Figure 13-12. ITSCM: Continuity Plan Invocation
SM251.0
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ITSCM
Test and Review

Testing of the continuity plan:
Should be conducted every 6 to 12 months and after every case of disaster

Should be conducted under realistic conditions
Review of and changes to the continuity plan:
Changes of the ITSCM plan due to change in the IT infrastructure
Custom / Services / SLRs / Risks
Dependencies / Assets / CIs / Personal
Contracts / SLAs / Countermeasures /
ALL critical and major changes should be approved by the Change Advisory
Board (CAB)
14
Figure 13-13. ITSCM: Test and Review
SM251.0
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ITSCM
Benefits and Costs

Benefits
Costs
Potential lower insurance premiums

Business relationship with the rest of
the enterprise is fostered because IT
organization is forced to get a better
understanding of the business
Positive marketing of contingency

capabilities. Effective ITSCM allows
organization to provide high service
levels and thus win business
Organizational credibility is increased

towards customers, business partners,
and stakeholders
Cost of organization
Cost of implementation
Cost of HW to recover critical IT
services
Contracts for offsite storage, recovery

centers, recovery systems
Cost of implementation of
backup/recovery strategy taking
ITSCM into account
Cost of testing recovery plans

Cost of maintaining recovery plans
Competitive advantage over

organizations without it
15
Figure 13-14. ITSCM: Benefits and Costs
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Notes:
The advantages of ITSCM include:
Potential lower insurance premiums: The IT organization can help the organization
demonstrate to underwriters or insurers that they are proactively managing down their
business risks. Therefore, the risk to the insurance organization is lower and the
premiums due should reflect this. Alternatively, the organization may feel comfortable in
reducing cover or self-insuring in certain areas as a result of limiting potential losses.
Regulatory requirements: In some industries a recovery capability is becoming a
mandatory requirement (for example, regulators stipulate that financial organizations
have sufficient continuity and security controls to meet the business requirements).
Failure to demonstrate tested business and ITSCM facilities could result in heavy fines
or the loss of trading licenses. Within the service community, there is an obligation to
provide continuous services, such as hospitals, emergency services, and prisons.
Business relationship: The requirement to work closely with the business to develop
and maintain a continuity capability fosters a much closer working relationship between

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IT and the business areas. This can assist in creating a better understanding of the
business requirements and the capability of IT to support those requirements.
Positive marketing of contingency capabilities: Being able to demonstrate effective
ITSCM capabilities enables an organization to provide high service levels to clients and
customers and thus win business.
Organizational credibility: There is a responsibility on the directors of organizations to
protect the shareholders' interest and those of their clients. Contingency facilities
increase an organizations credibility and reputation with customers, business partners,
stakeholders, and industry peers. For example, the growth of call centers in many
organizations has meant that the need to maintain customer communications at all
times is vital to the ability to retain customer confidence and loyalty.
Competitive advantage: Service organizations are increasingly being asked by
business partners, customers, and stakeholders to demonstrate their contingency
facilities, and may not be invited to tender for business unless they can demonstrate
appropriate recovery capabilities. In many cases this is a good incentive for customers
to continue a business relationship, and becomes a part of the competitive advantage
used to win or retain customers.

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ITSCM
Risks
No senior management commitment during implementation or ongoing phase

No personal resource for creating ITSCM plans
Testing of continuity plans only realistic in the live environment
16
Figure 13-15. ITSCM: Risks
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ITSCM
Summary
The mission of ITSCM is to support the Business Continuity Management process
by ensuring that the required IT technical and services facilities can be recovered
within required and agreed timescales
The dependencies between business processes and technology are now so

intertwined that Contingency Planning (or Business Continuity Management, as it
is now sometimes termed) incorporates both a business element (Business
Continuity Management) and a technology element (IT Service Continuity
Management).
Activities: risk analysis, continuity plan, review and test
17
Figure 13-16. ITSCM: Summary
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Unit 14. Security Management

This unit is an introduction to Security Management, and how it relates
with all other IT Services.

framework.

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IBM Global Services
Unit 14
Security Management
Content:
Security Management objectives and overview

Definition: CIA, security incident
Important aspects
Security measures
Benefits and costs
Summary
Figure 14-1. Unit 14: Security Management
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ITSCM Management
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Figure 14-2. ITSCM Management: Integration into the IPW Model
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IBM Global Services
Security Management
Mission Statement
Security Management is the process of managing a defined level of
security on information and IT services, including managing the responses
to security incidents.
The goal of Security Management is to counter risks of threats to one of the most
important assets for business: the information.
Information is threatened in many ways:
Confidentiality
Integrity / Accuracy
Availability / Accessibility
C
C Confidentiality
Confidentiality
II Integrity
Integrity
A
A Availability
Availability
Figure 14-3. Security Management: Mission Statement
SM251.0
Notes:
IT Security Management is the process of managing a defined level of security for
information, IT services, and infrastructure. IT Security Management enables and ensures
that:
Security controls are implemented and maintained to address changing circumstances,
such as changed business and IT service requirements, IT architecture elements,
threats, and so on
Security incidents are managed
Audit results show the adequacy of security controls and measures taken
Reports are produced to show the status of information security.
IT Security Management needs to be part of every IT manager's job description.
Management is responsible for taking appropriate steps to reduce to acceptable levels the
chances of a security incident occurring. This is the process of risk assessment and
management.

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Security Management
Definitions: CIA
Security Management should protect the value of the information.
Confidentiality
Protecting sensitive information from unauthorized disclosure or intelligible

interception
Integrity
Safeguarding the accuracy and completeness of information and software

Availability
Ensuring that information and vital IT services are available and accessible when
required
Figure 14-4. Security Management: Definitions: CIA
SM251.0
Notes:

14-5
Student Notebook
IBM Global Services
Security Management
Why Security Management?

Information is the most important production factor of the world
Threat to information = threat to the organizations productivity
Security Management gets increasingly important, because...
Public networks (Internet) are increasingly used
Internal networks are opened to customers and business partners
Internet usability is increasingly extended (e-commerce, online banking)
Processes are controlled via networks
Figure 14-5. Security Management: Why Security Management?
SM251.0
Notes:

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Security Management
Information Security Incident

Information Security Incidents are incidents at which
the confidentiality
the integrity
or the availability
of the information is threatened.
Information security incidents
can accidentally occur,
or can be intentionally caused.
Figure 14-6. Security Management: Information Security Incident
SM251.0
Notes:

14-7
Student Notebook
IBM Global Services
Security Management
Security Measures
Security measures make it possible to reduce or eliminate
the risks associated with information. Security measures
only add value when used harmoniously.
Security organization
With clear responsibilities and tasks

Policies, codes of conduct, or both
Physical security measures
The
The security
security organization
organization has
has to
to
establish
and
maintain
a
proper
establish and maintain a proper
balance
balance between
between the
the level
level of
of security
security
and
and the
the ability
ability to
to use
use the
the service.
service.
Physical separation of the computer room

Technical security measures
Security in a computer system or network

Procedural security measures
How the staff are required to act in particular cases

Work instructions
Figure 14-7. Security Management: Security Measures
SM251.0
Notes:
Corporate executive management is accountable to stakeholders and shareholders for
security, and is responsible for defining the corporate security policy. IT Security
Management is governed by that policy. The existence of the policy registers and
reinforces the corporate decision to invest in the security of information and information
processing. It provides management with guidelines and direction regarding the relative
importance of various aspects of the organization, and of what is allowable and what is not,
in the use of ICT systems and data.

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Security Management
Process
Customer
Report
SLA
Plan
Maintain
Control
Evaluate
Implement
Figure 14-8. Security Management: Process
SM251.0
Notes:
This slide illustrates the information security process as seen by the business. It covers all
stages, from policy setting and initial risk assessment, through planning, implementation
and operation, to evaluation and audit. The level of security required are defined after the
customer or the business security requirements.
The slide provides an overview of the ITIL IT Security Management Process. The process
shows the complete route, from the collection of a customer's requirements, through
planning, implementation, evaluation and maintenance under a framework of control
with regular status reporting to the customer closing the loop.

14-9
Student Notebook
IBM Global Services
Security Management
Process- Input from Customer

Customer
Defines its
security
requirements
based on its
business
requirements
Report
SLA
Plan
Maintain
Control
Evaluate
10
Figure 14-9. Security Management: Process- Input from Customer
Implement
SM251.0
Notes:

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Security Management
Process Control
Customer
Report
Define processes,
functions, roles,
responsibilities
Organization
structure between
sub-processes
Reporting
structure/line of
command
11
SLA
Plan
Maintain
Control
Evaluate
Implement
Figure 14-10. Security Management: Process Control
SM251.0
Notes:
Processes, functions, roles, and allocation of responsibilities have to be defined within the
sub-processes.
The organization structure between these
The reporting structure or line of command
The way the security plans are established
The process through which these are implemented
The way in which the implementation is evaluated
The process through which the results of these evaluations are used for the
maintenance of security plans and the implementation thereof
The reporting structure to the customer

14-11
Student Notebook
IBM Global Services
Security Management
Process SLA
Customer
Report
Report
SLA
Plan
Maintain
Control
Evaluate
12
The section
security in SLA
is negotiated
between
customer and
service provider
Implement
Figure 14-11. Security Management: Process SLA
SM251.0
Notes:

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Security Management
Process Plan
Customer
Report
SLA
SLA
Underpinning
contracts
OLA
Policy statement
Plan
Maintain
Control
Evaluate
13
Implement
Figure 14-12. Security Management: Process Plan
SM251.0
Notes:
The Plan activity includes the way the security section of the SLA is established as well as
the underpinning contracts.
The generic security requirements in the SLA are refined in Operational Level Agreements
(OLAs). These define support requirements internally.
The Plan activities may also use policy statements for the IT service providers to which
they have to comply.

14-13
Student Notebook
IBM Global Services
Security Management
Process Implement
Customer
Report
SLA
Plan
Maintain
Control
Evaluate
14
Implement
Maintaining
awareness
- Security works only if
discipline and
motivation
Security incident
handling
responsiveness
Security incident
registration
- measurement
- classification
- and reporting
Figure 14-13. Security Management: Process Implement
SM251.0
Notes:

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Security Management
Process Evaluate
Customer
Report
SLA
Plan
Maintain
Avoid the
atmosphere of
phantom security
Internal audits
External audits
Self-assessments
Security incident
evaluation
15
Control
Evaluate
Implement
Figure 14-14. Security Management: Process Evaluate
SM251.0
Notes:
Three types of evaluation:
Internal audits
External audits
Self-assessments
Evaluation results are used to determine or refine measures taken.
Evaluation also assesses standards and policies.
Can result in RFCs
Blindly trusting security measures installed long ago will create an atmosphere of
phantom security.

14-15
Student Notebook
IBM Global Services
Security Management
Process Maintain
Customer
Report
Collect experiences,
lessons learned
Improvements will
be considered for
the next round of
- planning
- implementation
16
SLA
Plan
Maintain
Control
Evaluate
Figure 14-15. Security Management: Process Maintain
Implement
SM251.0
Notes:
It is important to keep security measures up to date, as the threats on the infrastructure,
organization, and processes are changing constantly.
Maintenance is based on:
The results of the periodic reviews
Insight into the changing risk picture
Changes in the input material (including SLAs)

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Security Management
Process Report
Customer
Report
Show conformity
with SLA
Management
without
information is
impossible
SLA
Plan
Maintain
Control
Evaluate
17
Implement
Figure 14-16. Security Management: Process Report
SM251.0
Notes:
One of the major reasons why information security has been neglected for so long is the
absence of historical records.
Generally no one has any idea of what kind of security incidents have troubled the
organization in the past.
Ignorance
Not exposing the dirty linen
Management needs to be aware of the efficiency of the resources spent on security
measures and the effectiveness of the measures.

14-17
Student Notebook
IBM Global Services
Security Management
Level of measures
Threat
How could the security incident happen?

Prevent
Reduction
Security
Incident
Detection
Repression
Damage
Correction
How can it be avoided in the future?

Recovery
Evaluation
18
Figure 14-17. Security Management: Level of measures
SM251.0
Notes:

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Security Management
Benefits and Costs

Costs
Benefits
Can only be qualified with difficulty

The costs are nevertheless clear if
security is not sufficient
19
Provision of information and training

(depends on staff mentality)
Staff, hardware, software
Figure 14-18. Security Management: Benefits and Costs
SM251.0
Notes:

14-19
Student Notebook
IBM Global Services
Security Management
Summary
Security Management is responsible for managing and improving a

defined level of security on information and IT services.
Information Security Incidents are incidents at which

the confidentiality
the integrity
or the availability
of the information is threatened.
Activities: plan, implement, evaluate, maintain
20
Figure 14-19. Security Management: Summary
SM251.0
Notes:

V3.1.0.1
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V3.1.0.

ITIL (IT Infrastructure Library)

IBM Certified Course Material

September 2004 Edition

Copyright IBM Corp. 2004

Process Implementation: A process flows across the organizational hierarchies within

Copyright IBM Corp. 2004

Problem Management: Activity: Error Control . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-10

Copyright IBM Corp. 2004

Configuration Management: CIs and their relations to other processes . . . . . . . .

Unit 8. Release Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-1

Service Level Management: Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9-20

Copyright IBM Corp. 2004

Financial Management: Cost Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Unit 13. IT Service Continuity Management (ITSCM) . . . . . . . . . . . . . . . . . . . . 13-1

Copyright IBM Corp. 2004

Copyright IBM Corp. 2004

Copyright IBM Corp. 2004

Copyright IBM Corp. 2004

Copyright IBM Corp. 2004

Copyright IBM Corp. 2004

IBM Global Services

ITIL Foundation Course

IT Infrastructure Library Overview

ITIL Planning to Implement Service Management

ITIL Foundation Course | Student material v1.0

Figure 0-1. ITIL Foundation Course: IT Infrastructure Library Overview

2004 IBM Corporation

Copyright IBM Corp. 2004

IBM Global Services

ITIL Foundation Course

Objectives and Contents of the Course

Activities of each ITIL process

ITIL Foundation Course | Student material v1.0

2004 IBM Corporation

Copyright IBM Corp. 2004

IBM Global Services

ITIL Foundation Course

ITIL Defines a Three-Tiered Structure of Certification Training

1 hour Multiple Choice

Service Delivery (5 days)

ITIL Foundation Course | Student material v1.0

2004 IBM Corporation

xviii ITIL Foundation

Copyright IBM Corp. 2004

IBM Global Services

ITIL Foundation Course

ITIL Foundation Course | Student material v1.0

2004 IBM Corporation

Figure 0-4. ITIL Foundation Course: Process Chart Reference

Copyright IBM Corp. 2004

Copyright IBM Corp. 2004

Unit 1. What ITIL Is

What You Should Be Able to Do

IT Service Management (Part 1: Specification for

IT Service Management (Part 2: Code of Practice

IT Service Management A Managers Guide

Service Management Self-Assessment

Copyright IBM Corp. 2004

Unit 1. What ITIL Is

IBM Global Services

ITIL Foundation Course | Student material v1.0

Figure 1-1. Unit 01: What ITIL is

2004 IBM Corporation