© 2009 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

Service Strategy

2

Continual ServiceImprovement

ITIL v3 – Core Publications• ITIL Service Management

Practices – Core Guidance

−Service Strategy

−Service Design

−Service Transition

−Service Operation

−Continual Service Improvement

ServiceServiceStrategy

ServiceOperation

ServiceDesign

ServiceDesign

ServiceTransition

ITIL

3

Service Strategy• Key concepts

−Utility and Warranty

−Value Creation

−Service Provider

−Delivery Model Options

−Service Model

• Processes−Service Portfolio Management (SPM)

−Demand Management

−Financial Management

4

Utility Warranty• Utility and Warranty define

services and work together to create value for the customer

• Utility − What does the service do?

− Functional requirements

− Features, inputs, outputs…

− “fit for purpose”

• Warranty− How well does the service do

it?

− Non-functional requirements

− Capacity, performance, availability…

− “fit for use”

5

Service Provider• An organization supplying services to one or more

internal customers or external customers

• Type 1−Internal−Embedded in the business unit it serves

• Type 2−Shared−Provide services to multiple business units

• Type 3−External−Provide services to many customers

6

Type I – Internal Service Provider

7

Type II – Internal Service Provider

8

Type III – External Service Provider

9

Service Model• Graphical representation of

the components that make up a service

• Documents workflow and dependencies

• Used to support design, analysis and communication

© 2009 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

Strategy Generation

11

Strategy Generation - Activities• Define the Market

− Evaluate the services you could potentially offer, and who you may be able to offer them to

• Develop the Offerings− Continue to formulate the services you think it will be worthwhile

pursuing

− Utility and Warranty are considered at this stage

• Develop Strategic Assets− Look for opportunities to exploit your services and capabilities (to

allow more services to more customers)

− Develop Service Management so that it becomes a strategic asset

• Prepare for Execution− Take all the necessary steps to ensure that we are ready to go

ahead and it is worthwhile doing so

© 2009 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

Service Portfolio Management

13

Service Portfolio Management - Objectives• Decide what services to offer

• Understand −Why should a customers buy these services?

−Why should they buy these services from us?

• Provide direction to Service Design−So they can manage and fully exploit the services into the

future

14

Service Portfolio Management – Basic Concepts• Business Service

−A service that directly supports a business process

• IT Service−A service that the business does not think of in business

context or semantics

• Business Service Management−Considering service management in terms of business

processes and business value

15

Business Service vs IT Service

16

Business Service Management

17

Service Portfolio Management - Activities

18

Service Portfolio Management - Roles• Product Manager

−Own and manage a set of related services

−Evaluate market opportunities and customer needs

−Create business cases

−Plan new service development programs

• Business Relationship Manager−Identify and document customer needs

© 2009 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

Demand Management

20

Demand Management – Objectives and business value• Understand customer requirements for services and

how these vary over the business cycle

• Ensure the provision of appropriate levels of service−By varying provision or influencing customer demand

• Ensure that the Warranty and Utility we offer matches the customer needs

21

Demand Management – Basic Concepts• Core Service

−An IT Service that delivers outcomes desired by one or more customers

• Supporting Service−A service that enables or enhances a core service. For

example

• A directory service or a backup service

22

Demand Management – Basic Concepts• Pattern of Business Activity (PBA)

−Workload profile of one or more business activities

−Varies over time

−Represents changing business demands

• User Profile−Pattern of user demand for IT Services

−Each user profile includes one or more PBAs

23

Demand Management – Basic Concepts• Service Package

−Detailed description of a service

−Includes a service level package and one or more core services and supporting services

• Service Level Package−Defined level of utility and warranty for a particular service

package

−Designed to meet the needs of a PBA. For example

• Gold, Silver or Bronze service

24

Demand Management - Roles• Business Relationship Manager

−Document PBAs and user profiles

−Identify correct service level packages for their customers

−Identify unmet customer need

−Negotiate with Product Manager for creation of new services

© 2009 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

Financial Management

26

Financial Management – Objectives and business value• Financial visibility and accountability• Financial compliance and control• Enhanced decision making• Operational control• Value capture and creation• Understand the value of IT Services

27

Financial Management – Basic Concepts• Services valuation

−Cost of providing the service

−Value to the customers receiving the service

• Service investment analysis−Understand the total lifecycle value and costs of proposed

new services or projects

• Accounting−Keeping track of what has been spent, assigned to

appropriate categories

28

Financial Management – Basic Concepts• Business Case

− A decision support and planning tool that predicts outcomes of a proposed action

− Used to justify investments

• Business Impact Analysis− Understanding the financial cost of service outages

29

Financial Management – Roles • All managers have some financial responsibility

• Senior IT Management own budgets and are ultimately responsible for decisions

• Many organizations appoint a financial controller to oversee day-to-day finances

• Accounting department provides governance framework and support