© 2006 itSMF USA. All rights reserved.

ITIL v3 - IT Infrastructure meets IT Service

David Cannon

ITSM Practice Principal – HP

Agenda

• Defining Service and Value from v2 to v3

• Service Operation in ITIL v3

- Principles

- Processes

- Functions

© 2006 itSMF USA. All rights reserved.

Operational Challenges

Operational Challenges

• Design (and budget) focuses on functionality

- Manageability is secondary

- Lack of involvement in Design and Development of services

• The customer is always right

- Promises are made without understanding the operational impact

Managing Operations Today

• Technical Specialization is critical

• It is also a major challenge:

- Resulting silos

- Monitoring is local

- Metrics are limited

- Teams can demonstrate great performance, but little idea of how they contribute to value

Technology Evolution

• Virtualization

- Evolution of technical skills

- Emphasis shifts from technology to workload

• Consolidation

- Economies of scale

- Growing centralization

- Shift in Control

© 2006 itSMF USA. All rights reserved.

Defining IT Services From v2 to v3

What is an IT Service (v2)?

• A set of related functions

• provided by IT systems

• in support of one or more business areas

This service can be made up of hardware, software and communication facilities, but is perceived by the business customers as a self-contained, coherent entity

Service Components

As Seen by the Customer…

Process Orientated Working

Incide

nt & Proble

m Manageme

nt

Change Managem

ent

Configu

ration Management

The Problem with Processes

• Processes help to organize work better

• They are aligned to activity and output, not necessarily to value

• You have to know what you want to achieve, or else assume that the customer does

• Processes are not strategic

• Bottom line: Managing IT needs more than just a set of processes, people and tools

ITIL v3

• Creating a way to integrate IT Processes, People and Tools with the Business Strategy and Outcomes

• Seeing IT as a Strategic Business Unit

Definition of a Service (v3)

A ‘service’ is a means of delivering value

to customers by facilitating outcomes

customers want to achieve without the

ownership of specific costs and risks

The ITSM Lifecycle

The ITIL v3 Books

© 2006 itSMF USA. All rights reserved.

Focus on Value and the Supply Chain

Using Services to Achieve Business Outcomes

Source: Majid Iqbal

What is Value?

What is Value?

• Value is in the eye of the beholder

• Value is variable

• Value has to be negotiated

• Value changes over time and context

• Value can be managed

• Value is not always financial

What is Value?

• Value is in the eye of the customer

• Value is variable

• Value has to be negotiated

• Value changes over time and context

• Value can be managed

• Value is not always financial

Value in Supply Chains

R&D Engineer ManufactureMarket and

Sell

Value Added

Value Realized

Money Spent

Value in Supply Chains

Lessons Learned

1. If value is not realized, ‘value added’ is equal to ‘money spent’

2. Value Realized must be greater than money spent

3. Value added internally is not value until it is realized

What does this mean for IT?

• If IT wants to demonstrate value it has to link its services to where value is realized, not where value is added

• If IT can not do this it will always be viewed as ‘money spent’ not ‘value added’

IT Value – an Example

Enterprise IT

BU1 IT BU2 IT

Business Unit 1 Business Unit 2

Outsourcer 1 Vendor AOther Suppliers

Dept A Dept B Dept C Dept D

Commodities

Money

Spent

Money

Spent

Value

Added?

Value

Added

Supporting Business Outcomes

Productive capacity

Product Manager

Business outcomes

Relationship Manager

© 2006-2007 Crown Copyright.

© 2006 itSMF USA. All rights reserved.

Service Operation in ITIL v3

Context - Monitor Control Loop

ActivityInput Output

Norm

Monitor

CompareControl

Complex Monitor Control Loops

ActivityInput Output

Norm

Compare

Monitor

Control

ActivityInput Output

Norm

Compare

Monitor

Control

ActivityInput Output

Norm

Compare

Monitor

Control

Monitor

Compare

Norm

Control

Context - The ITSM Lifecycle

Service Transition

Service

Strategy

IT Managers, Vendor Account Execs, IT Execs

Users

Technical Experts, Vendor Support, IT Operational Staff

Business Executives, Business Unit Managers, Customers

Portfolio,

Standards,

Architectures

Service

Design

Tech Architectures,

Performance Stds

ActivityInput Output

Norm

Compare

Monitor

Control

ActivityInput Output

Norm

Compare

Monitor

Control

ActivityInput

Norm

Compare

Monitor

Control

Output

1

2

3

Continual

Service

Improve-

ment

© 2006 itSMF USA. All rights reserved.

SO Principles

Achieving Balance

• Internal and External Focus

• Stability and Responsiveness

• Quality and Cost

• Reactive and Proactive

Obtaining an Optimal Balance

Quality of Service

(Performance, Availability, Recovery)

Range of

Optimal

Balance

Service

SO Teams and other Lifecycle Stages

• Service Operation is a Lifecycle phase not a department

• People working in SO will also work in other phases

• Management of these people tends to be operational

© 2006 itSMF USA. All rights reserved.

Service Operation Processes

Service Operation Processes &

Functions

Self

Help

Service

Desk

TechnicalManagement

ApplicationManagement

IT Operations Management

Request or

Incident?

Access

Management

Common Service Operation Activities

Problem

Management

Request

Fulfillment

Incident

Management

Event

Management

User

User

Services

Incident

Management

Event Management

Incident Management

Request Fulfillment

Service Operation ProcessesSelf H

elp

Self Help

Web based front end

menu driven shopping

cart experience

Significant opportunity to:

–Improve responsiveness

–Reduce costs

–Extend hours of service

–Reduce demand on IT staff

–Improve quality

Incident Management

CMS

Request Fulfillment

Change Management

Deployment

Access Management

Event Management 1

Event

Event Notification

Generated

Significance?

Informational ExceptionWarning

Event Management 2

Informational ExceptionWarning

Informational ExceptionWarning

Event Management 2

Informational ExceptionWarning

Incident/

Problem/

Change?

Incident

Mgmt

Problem

Mgmt

Change

Mgmt

Event

LoggedAuto

ResponseAlert

Human

Intervention

Problem

Control

Problem

Control

Error

Control

Problem Management

Problem Management

Known

ErrorKnown

ErrorKnown

Error

Access Management

• Execution of Availability and Security Management

• 6 major areas:

- Requesting Access

- Verification

- Providing Rights

- Monitoring Identity Status

- Logging and Tracking Access

- Removing or Restricting Rights

© 2006 itSMF USA. All rights reserved.

Service Operation Functions

Service Operation Functions

Service Desk IT Operations

Management

Operations Control

Facilities Management

Application

Management

Technical

Management

Common SO Activities

• Mainframe Management

• Server Management

• Network Management

• Storage and Archive

• Database Administration

• Directory Services Management

• Desktop Management

• Internet / Web Management

• Etc.

The Application Management Lifecycle

Requirements

Design

Operate

Deploy

Optimize

Build

The Application Management Lifecycle

Requirements

Operate

Optimize

Build

Design

Deploy

Availability

Capacity

Continuity

Financial

Configuration

Change

Release

Request

Incident

Problem

Demand

OperationsSLM

Events

Assets

Bus. Req.

Analysis

Design

Development

Test

Deploy

Release

Operate

Development

Strategy

Architecture

Portfolio

GovernanceGovernance(eg., CObIT)

IT Services

TIME

The V3 Value Proposition

Business Needs

ServiceService

StrategyStrategyServiceService

DesignDesign

ServiceService

TransitionTransition

ServiceService

OperationsOperations

Continual Service Improvement Continual Service Improvement (Six Sigma, TQM, etc.)(Six Sigma, TQM, etc.)

Project Management Project Management (PMBOK, PRINCE2, etc.)(PMBOK, PRINCE2, etc.)

Source: Ken Wendle

© 2006 itSMF USA. All rights reserved.

Conclusion