Are You Getting the Maximum from your IT Investment?

Transcription

1 White Paper September 2002 Prepared by Hewlett Packard Cmpany Cntents Overview...3 Is Yur IT Slid?...4 Are Yu Ready?...4 Are Yu investing wisely?...5 Cnsider Yur IT fr a Mment...6 IT Service Fundatin...7 Hw IT Service Wrks...7 Building n the ITIL Framewrk...8 Service Supprt...8 Service Delivery...9 Radmap - CIO Actins...10 The HP IT Service Reference Mdel...11 Benefits f the Mdel...12 Mdel Cntent...13 Five Prcess Grups...13 The HP ITSM Reference Mdel Prcesses...15 Sme Help frm Hewlett- Packard...16 Service Assessments...16 Operatinal Prcess Reengineering...16 Business Prcesses and IT(IL) Prcesses Aligned...17 Business...17 IT Department...17 Sftware Engineering and ITIL alignment...17 IT Prcess and Imprvement...18 Outsurcing...18 Summary...19 Are Yu Getting the Maximum frm yur IT Investment? Abstract: The three elements f service management: peple, prcess, and technlgy are the assets that hld the key t building a strng IT infrastructure that allws fr change, new business pprtunity, and unplanned dwntime. Optimizatin f the cst f wnership fr IT lies in the ability t prvide the highest level f service while gaining the maximum ut f peple, resurces, and technlgy. In this white paper, we explre hw t incrprate service management int the IT infrastructure by applying best practices t re-align resurces and reduce escalating dwntime cst.

2 Are Yu Getting the Maximum ut f yur IT Investment? 2 Cpyright 2001 Hewlett-Packard Cmputer Crpratin. All rights reserved. Printed in the U.S.A. Are Yu Getting the Maximum ut f yur IT Investment? A White Paper prepared by Hewlett-Packard Managed Services. (December 2001) Cpyright 2002 Hewlett-Packard Cmpany. All rights reserved.

3 Are Yu Getting the Maximum ut f yur IT Investment? 3 Overview "If yu've gt best practices in place fr a well-managed envirnment, yu can reduce yur ttal cst f wnership by as much as 25% t 30%" - Michael Gartenberg f Gartner Grup, Inc. Radically different frm their precursrs, tday's business systems are extremely cmplex, dynamic, high-integrity infrastructures that supprt thusands f users, guarantee minimal respnse times, and are required t prvide 7 x 24 uptime. Requirements fr cmplex systems tday refer t terms such as: mainframe class rbustness, perfrmance, scalability and security. Anything less has the ptential t negatively impact yur cmpany s revenues, damage brand equity, and erde cnsumer and trading partner cnfidence. Cmpanies that run highly cmplex IT infrastructures are faced with the challenge f flattening IT spending while at the same time maximizing IT assets. CIOs are nw being measured n the quality f service as well as the impact n business fr delivery. With an increasing number f applicatins nw deemed business critical in nature, running n UNIX and Wintel platfrms, custmers demand high levels f availability, perfrmance and security as basic attributes f their peratin. With elevating unplanned dwntime csts, IT infrastructures cannt affrd high levels f quality f service withut integratin f peple, prcess and technlgy. The Meta Grup Inc. reprt prjects that annual U.S. crprate IT spending will fall fr the first time ever by between 2 percent and 5 percent in Spending amng nn-u.s. cmpanies is expected t remain flat at 2001 levels. IT managers are fcusing their budgets n cre areas such as infrastructure develpment, data centers and peratins as they push fr reducing csts. 1 Clearly, cmpanies are lking t make the mst frm their current IT assets and nt planning n majr technlgy investments ver the next 15 mnths. Accrding t Gartner Grup, fr the average Nrth American and Eurpean enterprise, 50 percent f the IS budget is devted t prductin and peratins. Eighty percent f unplanned dwntime is typically the result f peratr errr and applicatin failure. The three elements f service management: peple, prcess, and technlgy are the assets that hld the key t building a strng IT infrastructure that allws fr change, new business pprtunity, and unplanned dwntime. Success in managing the cst f wnership fr IT lies in the ability t prvide the highest level f service while gaining the maximum ut f peple, resurces, and technlgy. This is achieved thrugh an IT Service apprach, which emphasizes a structured set f prcesses, plicies, and prducts, that can be applied acrss all business expectatins t prvide cnsistent and measurable IT service levels. 1 EWeek, Octber 25, 2001 Cpyright 2002 Hewlett-Packard Cmpany. All rights reserved.

4 Are Yu Getting the Maximum ut f yur IT Investment? 4 Is Yur IT Slid? There is n questin that all f us in business are facing changing and rapidly develping challenges, which are being driven by the current events in the wrld cmmunity: Reality f the ecnmic slwdwn: unparalleled grwth in the 90 s t slwing ecnmy brdering n recessin. Security and disaster recvery have taken n new meanings and a real sense f urgency. Cmpetitive challenges and the flexibility and reduced timeframe in which t respnd: csts, custmer satisfactin, new prducts. Increased demands n IT fr new services, lwer csts, new/imprved prcesses, integratin f new technlgies have all risen as the business respnds t the market. Are Yu Ready? Our ability as IT Managers t respnd t external and internal challenges is significantly impacted by the IT fundatin framewrk that we use in ur peratin. D we have a fundatin/framewrk that enables us t : Drive dwn the cst f services t ur internal and external custmers. Ensure cnsistency in executin. Ensure that capacity and disaster recvery issues are identified and prevented n a cntinual basis: be prepared. Measure and drive the highest quality f service and supprt. Be flexible t meet the changing cmpetitive landscape with ur business clleagues. Integrate new technlgies in a prductive and timely manner. Capture, use, and integrate infrmatin fr imprved business peratins. Cpyright 2002 Hewlett-Packard Cmpany. All rights reserved.

5 Are Yu Getting the Maximum ut f yur IT Investment? 5 Are Yu investing wisely? Ttal Cst f Ownership Gartner Grup pineered a methd f calculating the csts f a prduct r service with the title f Ttal Cst f Ownership. This TCO mdel refers t assessing the lifecycle csts f an item rather than just the visible capital expenditure. The mst widely knwn example is fr Persnal Cmputers. In an era where the price f a PC n a desk had fallen t $2,000.00, Gartner demnstrated that the 5-year cst f a PC, when taking int accunt purchasing verheads, upgrades, maintenance, a prprtin f supprt staff and Service Desk csts, dispsal, was clser t $35,000. Gartner argued that the cst per PC per year was $7,000. It remains a vivid demnstratin f the difference between purchase price and wnership cst which many custmers f IT rganizatins still find surprising, particularly when IT budgets are discussed. Best Practice in ITSM is a majr delivery fr addressing and reducing verall TCO acrss an enterprise. Cst f Unplanned Dwntime The cst f unplanned dwntime is attributed primarily t services and supprt-related issues accrding t a recent Gartner reprt. Ttal ptential savings fr using best practices is 48% fr IT csts including end user peratins, which accrding t recent survey saked up mst cst because f deficient IT prcesses. Cpyright 2002 Hewlett-Packard Cmpany. All rights reserved.

6 Are Yu Getting the Maximum ut f yur IT Investment? 6 Cnsider Yur IT fr a Mment Take the IT Services Survey 1. Des yur Service Desk system and prcesses facilitate the analysis f incident and call data t identify trends? 2. Des yur incident management system restre nrmal service peratin as quickly as pssible with minimal impact n business peratins? 3. Des yur prblem management system enable bth reactive and practive prcesses? Reactive: slving prblems t ne r mre incidents. Practive: Identifying prblems and knwn errrs befre incidents ccur. 4. Des yur cnfiguratin management system allw fr mre than asset management? 5. Des yur change management prcess ensure that standardized methds and prcedures are used fr efficient and prmpt handling f all changes? 6. Des yur release management prcess and prcedures ensure the integrity f the peratinal envirnment? 7. D yu have frmalized service level agreements, measurements, and reprting with yur internal and external business partners? 8. Are yu able t identify t internal custmers the true csts f IT supprt? 9. D yu have a capacity plan that matches the evlving needs f the business? 10. D yu have an integrated business and IT service cntinuity management plan? Cpyright 2002 Hewlett-Packard Cmpany. All rights reserved.

7 Are Yu Getting the Maximum ut f yur IT Investment? 7 IT Service Fundatin What is IT Service? Infrmatin Technlgy Service is a prcess riented, custmer fcused methdlgy that assists rganizatins in making imprvements t their IT services delivery and supprt, and als integrates IT services with the business. IT Service prvides the way t adpt best practices in an integrated strategy fr essential IT prcesses such as: = Service Level = Change = Cst = Helpdesk r Prblem Best-f-Breed IT Service is built upn an integratin f peple, prcesses and technlgy. Service represents up t 77% f an IT budget. It is the peple, prcess, and technlgy that enables an IT Department t perate in an efficient and effective manner in meeting the business needs f it's clients. While IT decisin makers put an investment in new technlgies with a gal t increase prductivity, service, and revenue, it represents nly 15% the tip f the iceberg. The cst f managing the wrld f IT services including peple, prcesses, and the underlying service culture is exceedingly high if yu miss the pprtunity t effectively respnd t new challenges in the marketplace. Hw IT Service Wrks While IT has histrically fcused n the use f technlgy t meet its service requirements, there is a need t integrate technlgy with efficient prcesses. The sign f a strng IT rganizatin is an infrastructure that gains the mst frm its IT investment with a fcus n prcess. IT Service is the practical applicatin f the Infrmatin Technlgy Infrastructure Library (ITIL), which was develped by the UK gvernment functin, Central Cmputer & Telecmmunicatins Agency, and nw used wrldwide as the de fact standard Cpyright 2002 Hewlett-Packard Cmpany. All rights reserved.

8 Are Yu Getting the Maximum ut f yur IT Investment? 8 fr IT Service. ITIL is the mst widely accepted apprach t IT service management in the wrld, prviding a cmprehensive and cnsistent set f best practices fr IT service management, prmting a quality apprach t achieving business effectiveness and efficiency in the use f infrmatin systems. ITIL was riginally prduced in the late 1980s and cnsisted f ten cre bks cvering the tw main areas f Service Supprt and Service Delivery. ITIL is nw being adpted wrld wide and likely t be the basis fr cuntry r internatinal standards Building n the ITIL Framewrk ITIL itself is a set f best practices fr prcess management, fcused n the quality supprt and delivery f IT services, with emphasis n Service Supprt and Service Delivery. Service Supprt Service Supprt is cncerned with ensuring that the custmer has access t the apprpriate services t supprt the business functins. The cre prcesses are: Help Desk r Incident : The single pint f cntact between service prviders and users n a day-t-day basis, galed fr fast restratin f service and keeping custmers infrmed. Prblem : Identifies and manages the underlying causes f service incidents t prevent future ccurrences and minimize custmer dwntime. Change : Ensures that frmal prcedures are fllwed fr the fast, efficient and authrized handling f changes t the IT infrastructure. Assists in helping yu manage change instead f change managing yu. Cnfiguratin : The gal f the cnfiguratin management prcess is t identify, track and reprt n all cmpnents that make up the IT Infrastructure. Release : Ensures that all technical and nn-technical aspects f changes t the infrastructure are managed in a c-crdinated apprach. Cpyright 2002 Hewlett-Packard Cmpany. All rights reserved.

9 Are Yu Getting the Maximum ut f yur IT Investment? 9 Service Delivery Service Delivery lks at the service the business requires f the prvider in rder t adequately meet the needs f the business users. The cre prcesses are: Service Level : Maintain and imprve IT service quality thrugh a cnstant cycle f agreeing, mnitring, reprting and reviewing IT service achievements. Capacity : T ensure that capacity and perfrmance aspects f business requirements f IT are prvided timely and cst effectively. Availability : T predict, plan fr, and manage the availability f IT services t meet the service level agreements with yur custmer. Business Cntinuity : In the event f a disaster, ensures that yur IT systems are recvered in a cntrlled way with minimum disruptin t the business. Cst : Helps prvide cst effective management f yur IT assets and the resurces used in prviding IT services. Cpyright 2002 Hewlett-Packard Cmpany. All rights reserved.

10 Are Yu Getting the Maximum ut f yur IT Investment? 10 Radmap - CIO Actins Steps tward managing IT csts There are several steps t take in managing yur IT infrastructure fllwing the radmap t service management. The first step n the radmap is perfrming an assessment t determine the current state f yur IT infrastructure t determine what is lacking and where ptential resurces are residing. Where CIOs have a requirement fr a mre frmal, independent assessment f their IT Services prcesses, Hewlett- Packard prvides the services, expertise, and experience t fulfill this criteria. This frmal assessment is a Statement f Wrk (SOW), service-tailred t the business requirements yu need t assess. The assessment reviews the targeted areas within yur rganizatin; prvides a detailed reprt describing where yur prcesses are based n ITIL best practice. Assessment Where are we ging? Shrt-term cnsulting Design and Prcess Imprvement IT prcess review Engineering r Reengineering Outsurcing Out-tasking r full utsurcing Alng with the steps t take n the CIO radmap, the actins that ccur fr each milestne include: Assessment 1. Assessment what are yu ding with IT Service tday? IT prcess review and visin IT prcess engineering Selective ut-tasking & Outsurcing 2. Thrugh shrt term cnsulting, assess yur business risk frm IT. Design pririty prcesses, develp migratin plan and risk management strategies. Review yur Service Level Agreements (SLAs), yur suppliers and their SLAs. 3. Implement migratin plan tward IT Service best practices and measure success with suppliers that cnfrm t the standards that yur business requires. 4. Highlight areas that are enhanced thrugh ut-tasking business critical functins r utsurcing f service management t achieve best practices. Cpyright 2002 Hewlett-Packard Cmpany. All rights reserved.

11 Are Yu Getting the Maximum ut f yur IT Investment? 11 The HP IT Service Reference Mdel HP, in its engagements with IT rganizatins arund the wrld is acutely aware f the difficulty in identifying: The needed IT prcesses Service management rganizatinal requirements Prcess-enabling technlgies Prblems assciated with cmmunicating critical needs and pssible slutins acrss the enterprise T this end, HP fcused cnsiderable time and energy t assist custmers in this effrt by assembling a team f IT Service experts, whse gal was t develp a mdel that culd be used as an enterprise reference fr crprate IT rganizatins. This mdel, which functins as a high-level fully-integrated IT prcess relatinship map, has prved t be invaluable t cmpanies as they seek an understanding f bth their prblems and their pssible slutins. Additinally, as a reference tl, the mdel is extremely useful in initiating a meaningful dialgue between all parties interested in IT prcess requirements and slutins by prviding a cherent representatin f IT prcesses and a cmmn language. The HP IT Service Reference Mdel incrprates and enhances the IT Infrastructure Library (ITIL) best practices fr Service. The ITSM Reference Mdel develpment team adpted the ITIL practices that culd be applied t the enterprise and integrated them int the mdel, while adding the experience f HP cnsultants arund the wrld, gained thrugh their wn effrts at develping and implementing service management slutins, bth within HP and fr HP custmers. The result is a mdel that cmbines the best that ITIL has t ffer with the best that industry experience has t ffer. HP designed the mdel t reflect the need t run IT as a business rather than merely running IT within a business. Thus the ITSM Reference mdel has several prcesses nt fund in ITIL. Hwever, many ITIL terms and definitins are used thrughut the mdel, while thers have been mdified t reflect HP experience and perspective. This was a cnscius effrt t enable better rganizatinal cmmunicatin by adpting a cmmn glssary f terms, definitins, and cncepts that are already in use glbally. Cpyright 2002 Hewlett-Packard Cmpany. All rights reserved.

12 Are Yu Getting the Maximum ut f yur IT Investment? 12 Benefits f the Mdel As a high-level IT prcess relatinship map that depicts a cmmn service lifecycle, the mdel can be used t: Define and assess the current IT envirnment Utilizing the mdel, IT staff can quickly identify the prcesses currently in place and begin an immediate discussin regarding their status, value, and relatinships with ther key IT prcesses. Identify prcess "gaps" and the desired future state f the IT rganizatin The mdel is a quick reference tl that demnstrates the desired future end-pint t be achieved by IT, and prvides a framewrk fr planning the accmplishments needed t get there. Priritize wrk effrts Althugh the mdel represents the prcesses IT must have in place t deliver quality services, in reality every rganizatin differs in its immediate needs. IT rganizatins must therefre cnsider a variety f prcess implementatin pririties fr their specific situatins. The ITSM Reference Mdel expedites this effrt due t its emphasis n interprcess relatinships and linkages, thereby helping IT judge the impact and value f ne implementatin apprach versus anther. Identify critical prcess linkages Recgnizing required prcess linkages further assists prcess design and implementatin effrts by serving as a guide t understanding which prcesses need t be linked and what types f infrmatin need t be shared. Begin rganizatinal realignment discussins While the mdel is in fact a prcess map and nt an rganizatinal mdel, it can still be used quite effectively t discuss and plan fr rganizatinal change within IT. Given the service lifecycle rientatin f the mdel, it can be a useful starting pint and reference fr restructuring IT alng bth prcess and service lines. Identify areas t apply prcess-enabling technlgies Drilling dwn int the mdel and analyzing prcess hand-ffs and integratin pints prvides IT with an ability t target ptential areas t which timesaving prcess-enabling technlgies can be applied. Identify insurcing and utsurcing pprtunities Utilizing the mdel t better grasp critical IT prcess interrelatinships can help IT decide which services make business sense t insurce, and which shuld be cnsidered pprtunities fr selective utsurcing. Additinally, such knwledge can prvide IT with an understanding f hw their insurced IT prcesses must interface t thse that are utsurced t anther service prvider. The HP IT Service Reference Mdel (see Figure 1 belw) can prvide immediate value and be used in many different ways. Cpyright 2002 Hewlett-Packard Cmpany. All rights reserved.

13 Are Yu Getting the Maximum ut f yur IT Investment? 13 Mdel Cntent Five Prcess Grups Over the years there have been many different lists and descriptins f IT prcesses and just as many different pinins abut their imprtance. Given the gal f IT Service t prvide quality services t custmers, the prcesses in the ITSM Reference Mdel have been rganized int five different prcess grups, each fcused n a different key aspect f the service lifecycle (see Figure 1 belw). These grups are discussed briefly belw and a descriptin f all the prcesses they cntain fllws. The HP IT Service Reference Mdel Business - IT Alignment Interface with custmers Understand business and custmer requirements Frmulate an IT strategy that ptimizes IT added-value Operatins Bridge Manage custmer satisfactin Run services Mnitr and maintain the service infrastructure Reslve incidents and disseminate infrmatin Practive prblem preventin Service Delivery Assurance Dcument and track service infrastructure infrmatin Dcument infrastructure attributes and relatinships Evaluate and cntrl changes Translate IT strategy int planned IT services Create detailed service design specificatins Define and manage service levels within cst cnstraints (and service budget) via SLAs Prvide security fr infrastructure and data Develp and test services Deply services accrding t service design Service Design & Figure 1: The ITSM Reference Mdel Prcess Grups Service Develpment & Deplyment Service Delivery Assurance This prcess grup ccupies the center f the ITSM Reference Mdel fr several reasns, and the illusin that the ther fur prcess grups appear t revlve arund this central hub is intentinal (refer t the arrws in Figure 1). First, the prcesses in this grup are what prvide the necessary stability t the IT envirnment required by all f the ther prcesses in the mdel. Withut the prcesses in Service Delivery Assurance, nne f the ther IT prcesses in the mdel will ever perate efficiently. Hw can they, when fire fighting will be the primary activity ccupying everyne s time? And this is exactly the result yu get when these prcesses are missing. Secndly, the Service Delivery Assurance prcesses reach ut and tuch every ther prcess in the mdel at sme pint in time, and usually mre than nce. Fr these reasns, it makes sense t place this very imprtant prcess grup in the center f the mdel. Cpyright 2002 Hewlett-Packard Cmpany. All rights reserved.

14 Are Yu Getting the Maximum ut f yur IT Investment? 14 Business - IT Alignment The prcesses cntained in this grup are fcused n running IT "as a business. The activities perfrmed by these prcesses determine service market ptential; seek and achieve a cmmn understanding between IT and its custmers regarding business needs and IT capabilities; and in the end, frmulate an IT strategy that will ptimize IT added-value. These prcesses are therefre quite strategic in nature. Service Design and The prcesses in this grup enable IT t translate the IT strategy (i.e. the visin develped as a result f Business-IT Alignment prcess perfrmance) int planned services (i.e. reality ) via detailed design specificatins. Activities invlving the definitin f service levels; the creatin, negtiatin, and signing f service level agreements; and infrastructure and data security, are als perfrmed. Service availability, service capacity, and IT service csting infrmatin are all incrprated int service cntracts via the interactin f the prcesses within this grup with ther prcesses in the mdel. Service Develpment and Deplyment The prcesses within this grup enable IT t update existing services and develp new services and their related infrastructure cmpnents (e.g., prcedures, tls, hardware staging, sftware installatin, applicatin develpment, training plans, etc.). Once a service and its cmpnents have been successfully tested, they are then deplyed and integrated int the prductin envirnment t experience anther battery f tests prir t final prject signff and prductin release. Operatins Bridge Similar t the nautical cncept f a "bridge" n a ship, the prcesses in this grup wrk tgether t prvide the required cmmand, cntrl, and supprt f the IT envirnment. These prcesses als manage custmer satisfactin. Fcused n service delivery, they enable the n-ging running, mnitring, and maintenance f the IT enterprise envirnment. Cpyright 2002 Hewlett-Packard Cmpany. All rights reserved.

15 Are Yu Getting the Maximum ut f yur IT Investment? 15 The HP ITSM Reference Mdel Prcesses 2 Figure 2 belw shws the prcesses cntained within the ITSM Reference Mdel. Experience dictates that the lifecycle f a service is much mre dynamic and cmplex than can be described by any tw dimensinal picture; that is, the prcesses being executed at different pints during this lifecycle may be iterative in nature, invlve numerus interactins with ther IT prcesses, require varius feedback lps t ensure quality, etc. Even recgnizing this, frm the time a service is n mre than a gleam in a custmer s eye t the pint at which the service is being delivered, the structure f the ITSM Reference Mdel can still prvide high-level guidance n the general flw f activities perfrmed during the service lifecycle. The HP IT Service Reference Mdel Business - IT Alignment Operatins Bridge Business Assessment Custmer Incident Service Delivery Assurance Operatins IT Strategy Develpment Service Delivery Assurance Prblem Service Planning Security Service Level Cnfiguratin Change Release t Prductin Availability Capacity Cst Build & Test Service Design & Service Develpment & Deplyment Figure 2: The Reference Mdel Prcesses 2 Nte that Hewlett-Packard Cnsulting has develped detailed prcess design guides fr each f the prcesses in the mdel. These guides are an example f sme f the structured intellectual capital available fr use during HP cnsulting engagements. Please cntact yur Hewlett-Packard sales representative fr further infrmatin. Cpyright 2002 Hewlett-Packard Cmpany. All rights reserved.

16 Are Yu Getting the Maximum ut f yur IT Investment? 16 Sme Help frm Hewlett-Packard Hewlett-Packard can prvide the fllwing fr each milestne in the radmap: ITIL Assessments TCO Assessments Cst f Dwntime Assessments Operatinal Prcess Reengineering Business Critical Services based n ITIL CMS services based n ITIL A gap analysis is als undertaken with recmmendatins prvided t address any areas that require attentin. Hewlett-Packard can als assist in areas where rganizatins already knw what ITIL practice they need t implement and integrate int their existing service prtfli. As Operatins, Prcess, Services and Quality imprvement prgrams are the key cmpnents fr the verall IT Service prtfli, yu benefit frm the implementatin f the frmal IT Service assessment services. Service Assessments The ITSM assessment prvides yu with the fllwing benefits: Independent unbiased measurement f yur current IT Service deplyment. Prvides a measurement based n the ITIL framewrk aligning yur current prcesses t a de-fact industry standard. Gives yu a baseline, highlighting where yu currently stand regarding yur ITSM prcesses against an industry best practice. Identify areas fr quick wins and areas that f high expsure that must be addressed. List f recmmendatins that will assist in addressing high areas f risk that may be identified during the assessment. A quality apprach with an verall fcus that cncentrates n the relatinships between yur IT rganizatin and yur custmers. Identifies training requirements needed fr yur IT delivery and supprt staff regarding ITSM. Operatinal Prcess Reengineering Ranging frm Prcess Imprvements thrugh Business Prcess Reengineering T streamline the cmmunicatin prcess, it is vital that business prcesses and IT prcesses are synchrnized. Benefits result thrugh this synchrnizatin that include better expectatin setting, imprved cmmunicatin with the business, and increased trust and cnfidence by the business in the IT infrastructure as a strategic business tl. Operatinal prcesses can be defined as cllectins f identifiable and repeatable activities perfrmed directly in supprt f a service. One service can typically have several supprting Cpyright 2002 Hewlett-Packard Cmpany. All rights reserved.

17 Are Yu Getting the Maximum ut f yur IT Investment? 17 prcesses. Likewise, ne prcess can supprt multiple services, but the relatinship between services and prcesses shuld always be explicit. Frmalizing IT peratins prcesses is, fr many rganizatins, a relatively new challenge. Organizatins that have been invlved in implementing quality standards such as ISO-9000 are mre familiar with the benefits and can capitalize n this experience and peple. Fr mst IT envirnments the Infrmatin Technlgy Infrastructure Library (ITIL) is a standard that has been implemented mst arund the wrld t achieve prcess synchrnizatin. ITIL has a fcus n delivering IT services as agreed upn thrugh (Business) Service Level Agreements in an efficient and effective manner. Each prcess supprts this gal and wherever applicable the prcess describes the necessary invlvement f the business. Business Prcesses and IT(IL) Prcesses Aligned Hewlett-Packard distinguishes between three different levels f prcesses when viewing alignment: Strategic Levels Tactical Levels Operatinal Levels Rles invlved in these levels frm bth sides f the Business/IT equatin include: Business IT Department Business Managers at Strategic Levels Business Owners in charge f tactical executin Department Managers, Prject managers, and End Users IT at Strategic Levels Service Delivery and Service Level in measured fr tactical executin Change, Incident, Service Desk, and ther Operatins functinal management Sftware Engineering and ITIL alignment Anther area f prcess alignment the ITIL Prcess mdel can assist is in the area f integrating effective and cntinuus sftware develpment in IT peratins. The Sftware Engineering Institute (SEI) develped a quality mdel fr sftware develpment referred t as the Capability Maturity Mdel (CMM). Sftware develpment and IT Operatins are clsely related and must wrk hand-in-hand t ensure successful business executin. At all levels f the CMM, the ITIL prcess mdel has a rle t play. Fr example, ITIL prcesses and their CMM equivalent include (CMM in parenthesis): Sftware Lifecycle Supprt (Requirements ) Managing Supplier Relatinship (Sftware Subcntract ) Release (Sftware Cnfiguratin ) Change (Organizatin Prcess Definitin) Cpyright 2002 Hewlett-Packard Cmpany. All rights reserved.

18 Are Yu Getting the Maximum ut f yur IT Investment? 18 Testing Sftware fr Operatinal Use (Peer Reviews) Quality fr IT Services (Sftware Quality ) Prblem / Change (Defect Preventin) Outsurcing Using the ITIL prcess mdel in a sftware engineering envirnment can allw new and useful technlgies t be recgnized at an early stage then incrprated int develpment prcesses. This will lead t increased quality f sftware and stability in peratinal deplyment f new sftware. IT Prcess and Imprvement Implementatin f ITIL prcesses help t increase the perfrmance f an IT rganizatin. Prcesses are implemented t prvide management infrmatin which directly cntributes t the mst effective and efficient executin f the business f the rganizatin verall. Line business managers, prcess managers, and prduct managers are respnsible t define perfrmance indicatrs, prcess characteristics, and cntrl variables. By frmalizing IT prcesses with the help f the ITIL prcess framewrk, the cmmunicatin and understanding between business and IT imprves. A cmmn language fr business service supprt will be used and measured. The lack f a cmmn language is ne reasn fr failure f the IT envirnment t deliver successfully t the business. When business r business prcesses changes, subsequently, the IT prcess als changes. Hewlett-Packard Managed Services fcuses n helping custmers identify and engage nly the capabilities, capacity, and cverage necessary t reduce the time, risk, and cst f managing technlgy in their enterprise. Hewlett-Packard manages yur IT, using the industry best practices as specified by ITIL. Hewlett-Packard ffers selective r bundled utsurcing in the fllwing areas: Virtual CTO/Integrated IT Operatins Thrugh the establishment f a dedicated Glbal Prgram Office, Hewlett-Packard becmes a trusted advisr in supprt f the client s verall IT Services. The Hewlett-Packard GPO will ensure the implementatin f service management best practices t versee all aspects f the relatinship, including risk management, and ensuring that the IT infrastructure is kept in alignment with business gals. Business Critical Infrastructure Hewlett-Packard manages the client s business critical, hetergeneus enterprise IT infrastructure, with a fcus n ensuring stable nging peratins with high levels f service, availability, perfrmance, and security. Electrnic Wrkplace Lifecycle services fr the desktp, mbile and wireless devices; including Asset, Netwrk, and Deskside Maintenance and Supprt. Custmer Care Implementatin and peratin f custmized, glbal, multilingual help desks that act as a single pint f cntact t track, escalate, and reslve service issues. e-wrkplace -- Lifecycle management and user supprt fr desktps, mbile and wireless access devices, printers, LANS/WANS, and sftware. Service Prvider Slutins Infrastructure management services t help the service prviders (ASPs, MSPs) deliver differentiating services t their wn custmers. Cpyright 2002 Hewlett-Packard Cmpany. All rights reserved.

19 Are Yu Getting the Maximum ut f yur IT Investment? 19 Hewlett-Packard Managed Services ffers the fllwing benefits t ur custmers: Let Hewlett-Packard run yur selected IT, while yu cncentrate n the cre business Imprve yur financial perfrmance Reduces verall client business risk as Hewlett-Packard manages yur selected IT prviding all the advantages f prven management, tls, and ITSM best practice delivery methdlgies and prcesses Achieve ttal cntrl ver yur IT envirnment Rund-the-clck access t end-t-end critical skills Imprves quality f IT services and supprt Imprves the relatinship between yur user cmmunity and IT. Summary In the past, enterprise IT Service has been an afterthught t the business delivery and infrastructure deplyment prjects. Mre and mre, this paradigm has shifted t IT Service implementatin driven by the needs f business managers. IT Service is a wrk in prgress part strategy, part culture, part prcess, part prduct deplyment. The steps yu take and the rder in which yu take them are driven by the ever-changing pririties f yur business and yur marketplace. The integratin challenge encmpasses yur business prcesses, peratinal prcesses, and yur entire IT infrastructure. Organizatins may need t design a cmprehensive slutin that affects yur ttal envirnment, r fcus n integrating a single applicatin r business service r new technlgy. Chse Hewlett-Packard IT Service when and where yu need them. Hewlett-Packard's flexible, detailed lifecycle apprach helps yu transfrm an unstructured, imprecise business need int a structured agile effective IT Service slutin. Organizatins can fllw thrugh the cmplete cycle f services, r enter at apprpriate pints, depending n where yu are in the integratin prcess. When it makes sense, yu can always g back and revisit yur strategy r design -- t accmmdate change, r t cnfirm that yu are still aiming in the right directin. Fr mre infrmatin abut hw Hewlett-Packard IT Service can help yu, cntact yur Hewlett-Packard Sales Representative. Cpyright 2002 Hewlett-Packard Cmpany. All rights reserved.