Implementing IT Service Management: A Guide to Success

Implementing IT Service Management: A Guide for SuccessBy: Dave Cornelius, MBA, PMP, PMI-ACP, Six Sigma BB, CSM, ITIL v3

Learning ObjectivesAt the conclusion you will be able to ….

◦Identify an implementation framework to support your IT Service Management (ITSM) project

◦Plan your next ITSM process improvement project

◦Select ways to socialize the ITSM value proposition to stakeholders

The learning outcome will be assessed in your next successful project

What is Information Technology Infrastructure Library (ITIL)?The de-facto standard and framework comprised of

lifecycle phases and IT Service Management processes to meet the needs of the business stakeholders

The ABC’s of IT Operations managementHow to Plan, Design, Implement, Operationalize, and

support IT Operations Continual Improvement

Hurricane

The ITIL Phases & IT Service Management (ITSM) Processes

5 Lifecycle Phases26 IT Service Management processes

Lifecycle Phases

IT Service Management processes

Service Strategy (1) Service Strategy Management, (2) Service Portfolio Management, (3) Demand Management, (4) Financial Management, (5) Business Relationship Management

Service Design (6) Design Coordination (7) Service Level Management, (8) Service Catalog Management, (9) Availability Management, (10) Information Security Management, (11) Supplier Management, (12) Capacity Management, (13) IT Service Continuity Management

Service Transition

(14) Change Management, (15) Service Asset and Configuration Management, (16) Release and DeploymentManagement, (17) Knowledge Management, (18) Transition Planning and Support, (19) Service Validation and Testing, (20) Change Evaluation

Service Operation

(21) Incident Management, (22) Problem Management, (23) Event Management, (24) Request Fulfillment, (25) Access Management

Continual ServiceImprovement

(26) Seven-step Improvement Process, (26a) Service Reporting, (26b) Service Measuring

Implementing ITSM is a Change Management Initiative Change management is the delivery of a stated goal on

time, within budget, and a sustainable benefit to the organization (Merrell, 2012)

Organizational change is a transformation from the current state to a desired state for improved effectiveness (Jones, 2010)

Image Source: B-EN-G.

ITSM Change Management FocusSuccess depends on equal attention

to: ◦People, Corporate culture, Process, &

TechnologySuccess depends on the right

balance of business and technologySupported by a cross-functional

teamWarning!: Partner with your

Organizational Development (OD) team, if change management is not your strengthSource: Porter, J. (2011). Managing Change.

Key Activities to Support ITSM Change ManagementCreate a vision and communicate

it early and oftenCommit to the proposed changeCreate a planKnow & understand your

business cultureListen to the Nay-Say-ers & build

synergyBe aware of the resistanceImprove your plan as needed

Business Scenario2009: Microsoft license annual

True-up resulted in $500,000 overage

2010: Microsoft license annual True-up resulted in $1,500,000 overage

2011: Microsoft license annual True-up resulted in $2,000,000 overage

CFO and CIO are having a melt down

There is a demand to Fix-it!

Software Asset Management“Software Asset Management (SAM) is all

infrastructure and processes necessary for the effective management, control and protection of the software assets with the organization, throughout all stages of their lifecycle.” – ITIL v3 Guide to Software Asset Management

Important to the CIO and CFO Not one of the ITSM 26 processes and not in

the list of top 10 ITSM processesSAM maps to ITSM through the Service

Assets and Configuration Management process

Software Asset Management Cont’dFocused on cost-avoidance or risk mitigation Resides on Desktops, Servers, Mainframes,

and Mobile devicesWill become a challenge when Bring-You-

Own-Device (BYOD) takes off in the industryEven more frightening is the CLOUDIncludes Business and IT resources to be

successful◦ Finance, Strategic sourcing, Accounts payable◦ Desktop, Server, Network, & Release teams◦ 3rd party vendor

ITSM Delivery Model & Framework

EVALUATE

STRATEGIZE

ORCHESTRATE

DELIVER

Activities Deliverables Review current process flow Conduct interviews and workshops Perform gap analysis of current

state vs. desired state vs. ITIL best practices

Evaluate the organization Maturity Level

Gap analysis Life cycle processes

and technologies Organization and

governance

Define the future state strategy, roadmap and implementation plan

Future state strategy and roadmap

Total cost to ownership Executive Summary

Design solution Evaluate impacts on other

processes like business continuity, incident and problem management, etc.

Life cycle processes, technologies, and organization

Deliver the solution Life cycle processes, technologies, and organization

Analysis tool

Phases

CONTINUAL IMPROVEMENT

EvaluateParticipants: Project Manager, Process Consultant, Executives, & Management

Conduct Interview: Strategic QuestionsWho are the key stakeholders impacted

by this change?What are the specific strategic goals that

you want to accomplish by implementing the process?

Please describe the roadmap and any planning that is currently underway.

What do you consider key opportunities and challenges?

How do you plan to address challenges and constraints?

Conduct Interview: Other SAM AreasSAM PracticesSAM TechnologiesProcurement/Contract

management practicesSAM Financial managementCorporate systems (ERP)

technologiesITSM Services and technologies

Software Asset Management Processes: ITIL Best Practices

15

a. Inventory Management b. Contract Managementc. Entitlement Management d. Status Accountinge. Database Managementf. Financial Management

II – Core Software Asset Processes

a. Requirements definitionb. Designc. Evaluationd. Procuremente. Buildf. Deploymentg. Operationh. Optimizationi. Retirement

III – Lifecycle Processes

a. Strategy and Roadmapb. Management and Ownership of

Policies, Processes & Proceduresc. Risk Managementd. Communications & Awarenesse. Metrics & Continuous Improvementf. Technology Coordination &

Architecture g. Service continuity and availability

I – Overall Management Processes

Identify and maintain information about software assets throughout the lifecycle and manage assets.

Control all activities affecting the progress of software through the lifecycle

Establish and maintain governance and management infrastructure for Software Asset Management

processes implementation

a. Verification and auditb. Licensing compliancec. Security complianced. Other Compliance

IV – Verification and Compliance Processes

Detect, escalate, and manage all exceptions to Software Asset management policies, processes,

procedures, and license rights.

Source: ITIL V3 Guide to Software Asset Management

Software Asset Management Maturity Optimization Model

Software Asset Management Maturity Optimization Model

Basic – Ad Hoc

• Little control over what IT assets are used and where.

• Lacks policies, procedures, resources, and tools.

Standardized – Tracking Assets

• Processes exist as well as tool/data repository.

• Information may not be complete and accurate and typically not used for decision making.

Rationalized – Active Management

• Vision, policies, procedures, and tools are used to manage IT software asset life cycle.

• Reliable information used to manage the assets to business targets.

Dynamic – Optimized

• Near real time alignment with business needs.

• Software Asset Management is a strategic asset to overall business objectives.

Source: Microsoft and KPMG 2008

Make Your Maturity Optimization Model PurposefulMap your maturity optimization

model to a business metric.For example, the Dynamic

(Optimized) state delivers $2 million annual savings.

Socialize your value-driven optimization model to the organization

Work with marketing to share the good news

Gap AnalysisGap ID

GAP Impact Remediation Levelof Effort (Months)

1 Lack of executive sponsorship

People cannot identify with a single strategy

Select a strong leader who speaks for the organization

1.5

2 Undefined governance and accountability

Too many people working on the same problem. Too many Chiefs and Cowboys!

Increase process rigor and governance

2

3 Undefined KPIs’ to track performance

Unable to measure success or failure

Establish a measurement baseline and enable continuous improvement measurements over time by defining and agreeing to concise KPIs’.

3

StrategizeParticipants: Project Manager, Process Consultant, Executives, & Management

Software Asset Management Strategy Objective

Increase control over software life cycle management. Scope

Develop an integrated solution to include people, process, and tools Governance

Select a leader and define the vision and roadmap. People

Leverage internal people core knowledge and complement with consulting expertise.

Processes Design and implement key processes, which includes overall

management, core software asset lifecycle, and validation and compliance processes.

Technology Tools Leverage existing systems. Architect and integrate an seamless solution.

Process Maturity Optimization Model Options Identify what level is optimal (Basic, Standardized, Rationalized, or

Dynamic Optimization model).

Software Asset Management People and Governance Structure

Executive Sponsor

Finance

Accounts Payable

Procurement

Procurement Analyst

Legal

Legal Analyst

IT Operations

Governance, Compliance,

Risks

IT Asset Manager

Process Owner

Process Manager

Asset Analyst

Systems Manager

PMO

Project Manager

Business Community

Product Owners

Software Asset Management Roadmap (Milestones)

22

Oct NovJan Feb Mar Apr SepAugJulJunMay

Phase 5 – Tactical Activities Vendor Software Reconciliation

Go Live

Phase 1 - Planning

Phase 2 – Design

Phase 3 – Build

Phase 4 – Deliver

Leader selected Program vision, planning & governance Assemble team

Management Processes complete Policies designed Technology tools architecture integration designed

Policies and procedures complete Technology tools integrated Processes approved and agreed upon

Transition plan complete Communication & training

prepared Operational organization in place Solution pilot

All vendors reconciled Inventory up to date Contracts are settled

Executive SummaryWhat are the identified gaps?What are the benefits of the new

process?What is the risk mitigation

strategy?How much will the new process

cost?When will it pay for itself?

Orchestrate

Participants: Project Manager, Process Consultant, Management, & Team

Software Asset Management Roadmap (Planning, Design, Build, & Deliver)

Oct NovJan Feb Mar Apr SepAugJulyJunMay

Phase 5 – Tactical Activities Vendor Software Reconciliation Go Live

Phase 1 - Planning Phase 2 – Design

Phase 3 – Build

Phase 4 – Deliver

2.1: Overall Management Processes

2.2: Core Processes

2.5: Technology Configuration & Integrations

2.3: Life Cycle Processes2.4: Verification & Compliance


3.2: Core Processes

3.3: Life Cycle Processes3.4: Verification & Compliance



4.2: Core Processes

4.3: Life Cycle Processes

4.4: Verification & Compliance


WorkshopsOccurs in every phaseInteractive learning experienceRole playOpportunity for cross-functional

learningRepresentatives from all

functional area actively engaged

SAM Workshop Procurement Process Role Play1. Initiate internal order

(requisition)

2. Process internal order

3. Initiate external

order

4. Place external

order

5. Process incoming

media6. Install software

7. Process invoices

8. Process proof of license

Business leader Procurement Procurement Procurement

Desktop

Accounts Payable SAM Coordinator

Desktop &Procurement


Software Asset Management Process & Technology Framework Best Practices

28

Asset Request(Service Catalog)

Asset Management RepositoryDiscovery Tool(s)

Procurement

Finance

Human Resources

Service Asset & Configuration Management

Vendor Portal

Change Management Release & Deployment Management

Patch & Deployment Tool(s)

End

StartNew Requests

Existing Requests

People

PO’s

Payments

Invoices

Software K

eys

PO’s

PO’s

Cha

nges Releases

Deployments

IT Service Management IT Asset Management ERPLegend:

Marketing and EducationMarketing

◦IT people are terrible at marketing services or products

◦Engage the internal marketing team◦Build and execute a marketing campaign

Education◦Establish learning sessions by working

with your internal training team◦Use the local intranet to communicate

and train the masses

DeliverParticipants: Project Manager, Process Consultant, Executive, Management, & Team

Software Asset Management Processes: Industry Best Practices

31

a. Inventory Management b. Contract Managementc. Entitlement Management d. Status Accountinge. Database Managementf. Financial Management

II – Core Software Asset Processes

a. Requirements definitionb. Designc. Evaluationd. Procuremente. Buildf. Deploymentg. Operationh. Optimizationi. Retirement

III – Lifecycle Processes

a. Strategy and Roadmapb. Management and Ownership of

Policies, Processes & Proceduresc. Risk Managementd. Communications & Awarenesse. Metrics & Continuous Improvementf. Technology Coordination &

Architecture g. Service continuity and availability

I – Overall Management Processes

Identify and maintain information about software assets throughout the lifecycle and manage assets.

Control all activities affecting the progress of software through the lifecycle

Establish and maintain governance and management infrastructure for Software Asset Management

processes implementation

a. Verification and auditb. Licensing compliancec. Security complianced. Other Compliance

IV – Verification and Compliance Processes

Detect, escalate, and manage all exceptions to Software Asset management policies, processes,

procedures, and license rights.


Critical Success FactorsIdentify activities that will protect the organization

from riskIdentify ways to increase capabilitiesIdentify ways for Cost management

Critical Success Factors Performance LevelManage financial risks to the organization

High

Track Software Assets when making changes

High

Leverage technology tools to report on SAM activities

High

Key Performance Indicators (KPI)

Name Description CalculationKey cost indicator (KCI)

Spending management

Cost savings against budget — unbudgetedexpenditure

Key risk indicator (KRI)

Estimated exposure Maximum potential financial liability

Key value indicator (KVI)

Data quality Coverage and accuracy as a percentage of totalhistorical software spending

Source: Gartner 2012

KPI information evolve over timeMeasure what’s relevant to the organizationUse SMART (specific, measurable,

attainable, relevant and timely) Objectives

Technology and Analysis ToolsHP Asset ManagerService NowAltiris Metering toolsBladeLogic (Server discovery

tool)CMDB (HP DBMA)PeopleSoft Financials

SummaryBe aware that your effort is a change

management initiative and not a technology project

Engage the organization on all levelsUse a simple process to guide your

delivery strategyKnow your core competency.

Collaborate with internal and external partners

Market and educate about your process improvement project to the organization

Q & AIf you have any questions, please

ask your neighbor.

About Dave Cornelius Sr. Manager at Cognizant Technology

Solutions; IT Service Management Consulting Group

Involved in business transformation through IT and Business Process Improvement methods for the past 29 years

Doctorate of Management: Information Systems Technology - 2013 Candidate

Project Management Institute - Orange County Executive Board member

Toastmasters Area Governor Husband and Father Believes “Systems Thinking” is the key

to solving problems Aspiring Servant Leader

Appendix A – Survey Questions

Can you identify the key stakeholders impacted by this change?

What are the specific strategic goals that you want to accomplish by implementing the process?

What do you consider key opportunities and challenges?

Please describe the roadmap and any planning that is currently underway.

How do you plan to address challenges and constraints?

Survey Question 1 Survey Question 2

Survey Question 3

Survey Question 4 Survey Question 5

Appendix B – Workshop Cards

I am in the Service Request system and placed an order for 50 Microsoft Office licenses

I am in the Service Request system and processed an internal order for 50 Microsoft Office licenses

I am in the External Vendor Portal system and received an order for 50 Microsoft Office licenses

I am in the External Vendor Portal system and placed an internal order for 50 Microsoft Office licenses

I am in the Software Asset Management system and updated the receipt of an order for 50 Microsoft Office licenses I am in the SAM

system and installed 50 Microsoft Office licenses

I am in the Accounts Payable system and processed an invoice for 50 Microsoft Office licenses

Business leader Procurement-1

Desktop-1Accounts Payable

Procurement-2

Procurement-3 Procurement-4

Proof of license updated in SAM System

Desktop-2

Implementing IT Service Management: A Guide to Success

Technology

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