Contents An Introductory Overview of ITIL Service Lifecycle: concept and overview...3 I. Service strategy...6 The 4 P's of ITIL Service
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1 ITIL 2011 Notes
2 Contents An Introductory Overview of ITIL Service Lifecycle: concept and overview...3 I. Service strategy...6 II. The 4 P's of ITIL Service Strategy...6 Key processes and activities...7 Service Design...8 Five aspects of Service Design...8 The four Ps of service design...8 Design processes...8
3 An Introductory Overview of ITIL 2011 ITIL provides a framework of best-practice guidance for IT service management. ITIL offers a systematic approach to the delivery of quality of IT services. All organizations that use IT depend on IT to be successful. If IT processes and IT services are implemented, managed and supported in the appropriate way, the business will be more successful, suffer less disruption and loss of productive hours, reduce costs, increase revenue, improve public relations and achieve its business objectives. Service Lifecycle: concept and overview Good practice (literally: correct method) is an approach or method that has proven itself in practice. Service is a means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks. In other words, when we do something for another party that gives them something they want or value, we're providing a service. From the customer s perspective value consists of two core components: utility and warranty. Utility is what the customer receives, and warranty is how it is provided. A service value is defined by fit to purpose (utility) and fit to use (warranty). Fit to purpose, or utility, means that service needs to fulfill customer needs. Fit for use, or warranty, means that service is available when a user needs it. Service warranty for a service provides the customer a level of reassurance and guarantee to meet agreed requirements. Service utility defines the functionality of an IT service from the customer s perspective (i.e. what the service does). Value creation is a combination of the effects of utility and warranty. Both are necessary for the creation of value for the customer: Utility - fitness for purpose. Functionality offered by a product or service to meet a particular need. Utility is often summarized as what it does. Warranty - fitness for use. A promise or guarantee that a product or service will meet its agreed requirements. The availability, capacity, continuity and information security necessary to meet the customers requirements. The ITIL v3 definition of quality is "the ability of a product, service, or process to provide the intended value." A system is a group of interacting, interrelating, or interdependent components that form a unified whole, operating together for a common purpose.
4 A function is a team or group of people and the tools they use to carry out one or more Processes or Activities. For example the Service Desk. A procedure is a specific way to carry out an activity or a part of a process. Processes possess the following characteristics: They are measurable - because they are performance-oriented. They have specific results. They provide results to customers or stakeholders. They respond to a specific event - a process is indeed continual and iterative, but is always originating from a certain event. It can be difficult to determine whether something is a function or a process. According to ITIL, whether it is a function or process depends completely on the organizational design. A good example of a function is a service desk, a good example of a process is change management. The ITIL v3 definition of quality is "the ability of a product, service, or process to provide the intended value." Service management is a set of specialized organizational capabilities for providing value to customers in the form of services. A system is a group of interacting, interrelating, or interdependent components that form a unified whole, operating together for a common purpose. ITIL approaches service management from the lifecycle aspect of a service. The Service Lifecycle is the overall framework used to identify, define, manage, and retire IT services. The Service Lifecycle consists of five phases. Each volume of the new ITIL books describes one of these phases: 1. Service Strategy - the phase of designing, developing and implementing service management as a strategic resource 2. Service Design - the design phase of developing appropriate IT services, including architecture, processes, policy and documents; the design goal is to meet the current and future business requirements 3. Service Transition - the phase of developing and improving capabilities for the transition of new and modified services to production 4. Service Operation - the phase of achieving effectiveness and efficiency in providing and supporting services in order to ensure value for the customer and the service provider 5. Continual Service Improvement - the phase of creating and maintaining the value for the customer by design improvement, and service introduction and operation
5 Figure 1. The Service Lifecycle. Figure 2 illustrates how the service lifecycle is initiated from a change in requirements in the business. These requirements are identified and agreed within the service strategy stage within a change proposal and service charter. This passes to the service design stage, where a service solution is produced together with a service design package (SDP) containing everything necessary to take this service through the remaining stages of the lifecycle. The SDP passes to the service transition stage, where the service is evaluated, tested and validated, the service knowledge management system (SKMS) is updated, and the service is transitioned into the live environment, where it enters the service operation stage. Wherever possible, continual service improvement identifies opportunities for the improvement of weaknesses or failures anywhere within any of the lifecycle stages, across all processes. Figure 2. Integration across the service lifecycle. To undertake the processes and activities involved in each lifecycle stage, ITIL recognizes that an organization needs to clearly define the roles and responsibilities required. These roles are assigned to individuals within an organization structure of teams, groups or functions. - Process owner; the process owner is responsible for the process results. Here are a few responsibilities of the role: ensuring that the process is performed in accordance with the agreed and documented process, documenting and publicizing the process, defining and reviewing the measurement of the process using metrics such as key performance indicators (KPIs), etc. - Process manager; a process owner is accountable for the process, but may not get involved in the day-to-day management of the process. This is a separate role often allocated to a different person: the process manager. The process manager is responsible for the realization and structure of the process, and reports to the process owner. A process manager is responsible for operational management of a process. The process manager s responsibilities include planning and coordination of all activities required to carry out, monitor and report on the process. There may
6 be several process managers for one process and the process manager role is often assigned to the same person carrying out the process owner role. - Process practitioner is responsible for carrying out one or more process activities. The process practitioner role may be combined with the process manager role, if appropriate. The process practitioners are responsible for defined activities, and these activities are reported to the process manager. - Service owner is responsible to the customer for the initiation, transition, and ongoing maintenance and support of a particular service; and accountable to the IT director or service management director for the delivery of a specific IT service. Service ownership is critical to service management and a single person may fulfil the service owner role for more than one service. When setting up a service or a process, it is imperative that all roles are clearly defined and that it is clear who does what. For this purpose, a responsibility model like RACI can be used. RACI provides an authority matrix to define the roles and responsibilities in relation to processes and activities. RACI is an acronym for the four main roles: - Responsible The person or people responsible for correct execution for getting the job done. - Accountable The person who has ownership of quality and the end result. Only one person can be accountable for each task. - Consulted The people who are consulted and whose opinions are sought. They have involvement through input of knowledge and information. - Informed The people who are kept up to date on progress. They receive information about process execution and quality. I. Service strategy The objective of service strategy is to offer better services than the competition. Service Strategy determines which types of services should be offered to which customers or markets. Strategic thinking aims to define a plan that, using a clear set of principles, will provide a solution to a business problem in a particular situation. It is focused on the value to the customer and identifies strategic assets that will be used for competitive advantage. Service Strategy sets out guidance to all IT service providers and their customers, to help them operate with a precise understanding of: - What services should be offered - To whom the services should be offered - How the internal and external marketplaces for their services should be developed - The existing and potential competition in these marketplaces, and the objectives that will differentiate the value of what the service provider does or how it is provided - How the customer(s) and stakeholders will perceive and measure value, and how this value will be created - How service sourcing decisions can be made with respect to use of different types of service providers - How visibility and control over value creation will be achieved through financial management - How robust business cases will be created to secure strategic investment in service assets and service management capabilities - How the allocation of available resources will be tuned to optimal effect across the portfolio of services - How service performance will be measured.
7 The 4 P's of ITIL Service Strategy Service Strategy defines the following to meet business outcomes: - Perspective: Having a vision of what the company wants to deliver, and is attained through conversations with your stakeholders. - Position: is how you will differentiate from your competitors; that is, what is your unique value proposition? As sound position guides you in both what to do and what not to do based on your ability to differentiate yourself from the competition. - Plans: creating a detailed plan on how you're going to make it all happen. It focuses on financial budgets, your portfolio of services, new service development, investments in service assets and improvement plans. - Patterns: knowing which patterns and actions are good for the company. The 4 Ps in Action. A well-known computer company s perspective is building to customer specifications quickly and inexpensively. Its position is variety-based, initially delivering only laptops and desktops, with a wide variety of potential configurations. Key to the company s plan (initially) is to take orders only via the Web and phone. And the pattern is a high level of customer service and competitive pricing. Key processes and activities As per ITIL 2011, the following main processes are part of the ITIL stage Service Strategy: 1. Strategy Management for IT Services Process Objective: To assess the service provider's offerings, capabilities, competitors as well as current and potential market spaces in order to develop a strategy to serve customers. Once the strategy has been defined, Strategy Management for IT Services is also responsible for ensuring the implementation of the strategy. Activities: - Perform strategic assessment - Generate strategy - Execute strategy - Measure and evaluate 2. Service Portfolio Management Process Objective: To manage the service portfolio. Service Portfolio Management ensures that the service provider has the right mix of services to meet required business outcomes at an appropriate level of investment. Service portfolio: The complete set of services that is managed by a service provider. The service portfolio is used to manage the entire lifecycle of all services, and includes three categories: service pipeline (proposed or in development), service catalogue (live or available for deployment), and retired services. Service portfolio management involves proactive management of the investment across the service lifecycle. It is an ongoing process, which includes the following steps: - Define: Make an inventory of services, ensure business cases exist, and validate portfolio data - Analyze: Maximize portfolio value, align and prioritize, and balance supply and demand - Approve: Finalize proposed portfolio, and authorize services and resources - Charter: Communicate decisions, allocate resources and charter services. 3. Financial Management for IT Services Process Objective: To manage the service provider's budgeting, accounting and charging requirements. 4. Demand Management
8 Process Objective: To understand, anticipate and influence customer demand for services. Demand Management works with Capacity Management to ensure that the service provider has sufficient capacity to meet the required demand. 5. Business Relationship Management Process Objective: To maintain a positive relationship with customers. Business Relationship Management identifies the needs of existing and potential customers and ensures that appropriate services are developed to meet those needs. Activities: - Handle requests - Handle complaints - Identify opportunities - Manage business relationships throughout the service lifecycle II. Service Design The Design Stage takes a set of new or changed business requirements and develops a solution to meet them. The developed solution is passed to Service Transition to be built, tested and deployed into the live environment. Key activities within this stage of the lifecycle include the planning and coordination of design activities, ensuring consistent designs of services, service management information systems, architectures, technology, processes, information and metrics, production of service design packages (SDPs), management of interfaces, and improvement of service design activities and processes. Service design starts with a set of business requirements, and ends with the development of a service solution designed to meet documented business requirements and outcomes, and its SDP for handover into service transition. Five aspects of Service Design ITIL formally recognizes five separate aspects that describe the Service Design Process (five main "things" to be designed in the Service Design phase - STAMP): - Service Solutions - Service management systems and Tools, especially the service portfolio, including the service catalogue - Technology Architecture and management systems - Measurement methods and metrics - The Processes required The four Ps of service design During service design, the 4 Ps need to be considered: Service Design must have in mind the effective and efficient use of the four Ps: - People human resources involved (people that work in the IT services, customers, and users). - Processes what and how (processes, roles and activities involved in the provision of IT services). - Products services, technology and tools. The technology and management systems used in the delivery of IT services. - Partners vendors, manufacturers and suppliers used to assist and support IT service provision. Service Design Package (SDP) - Document(s) defining all aspects of an IT Service and their Requirements through each stage of its Lifecycle. A Service Design Package is produced for each new IT Service, major Change or IT Service Retirement.
9 Design processes Design Coordination - acts as the central point of communication and control for all processes in the Design stage. It is in charge of all design activities, and it ensures consistent design of services aligned with Strategy and their proper preparation for Transition. Service Catalogue Management aims to ensure that a Service Catalogue is produced and maintained. It is a management of information about all live services. Service Level Management (SLM) this is a key Design process. It ensures that all services are delivered according to agreement with the business. It is aligned with other processes emerged from the Service Delivery group, especially Availability and Capacity. The main mission of SLM is to improve communication and understanding of Service Provider and Business. - Service Level Requirements (SLR) Detailed recording of the customers needs. It is an origin of the SLA content. - Service Level Agreement (SLA) - An SLA is best described as a collection of promises. An agreement between an IT service provider and a customer. - Operational Level Agreement (OLA) - an agreement between an IT service provider and another part of the same organization, governing the delivery of a infrastructure service. Availability Management one of the oldest ITIL service delivery processes. Ensures that the availability of delivered services is in alignment with the agreed levels, in a cost-effective, timely manner. - Business Impact Analysis (BIA) - is the activity in Business Continuity Management that identifies Vital Business Functions and their dependencies. BIA defines the recovery requirements for IT Services. Capacity Management ensures that IT infrastructure and services meet the agreed requirements in a cost-effective and timely manner. Capacity management spans through all ITIL lifecycles. IT Service Continuity Management (ITSCM) aims to manage risks that could seriously impact IT services. ITSCM ensures that the IT service provider can always provide minimum agreed Service Levels, by reducing the risk from disaster events to an acceptable level and planning for the recovery of IT services. Information Security Management (ISM) ensures that information security policy is aligned with business security. ISM maintains and enforces the security policy. Supplier Management ensures the fulfilment of contractual duties by the suppliers based upon contracts supporting the business requirements of the IT Service Consumers. Activities included are: negotiation, agreements, supplier performance management, seamless integration of underpinning contracts and delivered services.
10 Figure 3. Expanded Incident Lifecycle. Figure 4. Lifecycle of IT Service Continuity Management. Service Transition Service Transition Goals: Assure proposed changes in the Service Design package are realized. Plan for and Implement the Deployment of Releases for New or Changed Services. Test Releases so as to minimize the possibility of undesirable impact to the Production environment. Retire or Archive Services.
11 KEY ROLE: To move Services from Design to Operations, without impacting the ongoing Services Configuration Items (CIs) typically include IT Services, hardware, software, buildings, people, and formal documentation such as Process documentation and SLAs. Configuration Management System (CMS): Information about all Configuration Items: CI may be entire service, or any component Stored in 1 or more databases (CMDBs) CMS stores attributes: Any information about the CI that might be needed CMS stores relationships: Between CIs With incident, problem, change records, etc. CMS has multiple layers: Data sources and tools, information integration, knowledge processing (scorecards, dashboards etc.), presentation Transition Processes Transition planning and support The purpose of transition planning and support is to provide overall planning for service transitions and to coordinate the resources they require. The purpose of the Transition, Planning and Support activities are: Planning appropriate capacity and resources Provide support for the Service Transition teams and people Integrity of changes with all other Service Transition processes Coordination of activities across projects, suppliers and service teams Change management The purpose of the change management process is to control the lifecycle of all changes, enabling beneficial changes to be made with minimum disruption to IT services. Change management ensures that changes are recorded and evaluated, and that authorized changes are prioritized, planned, tested, implemented, documented and reviewed in a controlled manner. Knowledge Management Knowledge Management is a process inside the service transition stage of the service lifecycle, with its purpose being to: share information, ideas and experience make knowledge of the organization available to those who need it, when they need it, in order to support decision making eliminate the need to rediscover the knowledge The main benefit is that, as time elapses, the organization grows from a knowledge point of view. To prevent knowledge from getting lost, as well as being able to manage services throughout the whole lifecycle, the Service Knowledge Management System (SKMS) is used. SKMS is a set of tools and databases used to manage (i.e. collect, store, update, analyze, present and archive) organizations data, information and knowledge. D-I-K-W Model The Data-to-Information-to-Knowledge-to-Wisdom structure: Knowledge management is typically displayed within the Data-to-Information-to-Knowledge-to-Wisdom (DIKW) structure. Meaning, ITIL uses a simple, yet logical structure to present Knowledge Management: Data-to-Information-to-Knowledge-to-Wisdom (DIKW).
12 Data is a set of discrete facts. Most organizations capture significant amounts of data in highly structured databases such as service management and service asset and configuration management tools/systems and databases. An example of data is the incident log entry with date and time, or an example of data is the time and date when an incident occurred. Information comes from providing context to data. Information is typically stored in semistructured content such as documents, and multimedia. An example of information is the average time to close priority 1 incidents. Knowledge is composed of the tacit experiences, ideas, insights, values and judgments of individuals. An example of knowledge is the average time to close priority 1 incidents has decreased since ITSM tool implementation. Wisdom makes use of knowledge to create value through correct and well-informed decisions. Wisdom takes into consideration data, information and knowledge; e.g. customer satisfaction rose by 10% due to the ITSM tool implementation, back-office personnel training, self-service portal and new service introduced. Continual Service Improvement A combination of one main process and two approaches. Seven-Step Improvement Process: - Deming Cycle (for slow, steady improvement)
13 - Continual Service Improvement (CSI) Model Deming Model Mgmt. philosophy for establishing quality, productivity, and competitive position: 1. Plan formulate goal/theory; define how to measure success and plan. 2. Do execute plan. 3. Check monitor outcomes vs. expected results and look for lessons learned. 4. Act integrate lessons learned, adjust theory/method, and determine what more we must learn. CSI Approach Embrace vision by understanding business objective. 1. Baseline assessments. Assess current situation (as is); baseline analysis of current position. Measurable targets. 2. Service & Improvement targets. Understand/agree on priorities based on vision. Detail CSI plan by implementing ITSM processes 3. Measurement & Metrics Verify metrics are in place to see if milestones reached/processes compliant. Ensure momentum is created to ensure it keeps on trucking.
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