© 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