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
3.1: Overall Management Processes
3.2: Core Processes
3.3: Life Cycle Processes3.4: Verification & Compliance
3.5: Technology Configuration & Integrations
4.1: Overall Management Processes
4.2: Core Processes
4.3: Life Cycle Processes
4.4: Verification & Compliance
4.5: Technology Configuration & Integrations
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
Source: ITIL V3 Guide to Software Asset Management
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.
Source: ITIL V3 Guide to Software Asset Management
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
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