PRACTICAL LESSONS ON USING THE ITSM LIFECYCLE TO CREATE AND DEMONSTRATE VALUE
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1 PRACTICAL LESSONS ON USING THE ITSM LIFECYCLE TO CREATE AND DEMONSTRATE VALUE How the heck do I keep my job by showing the customer that IT is Great
2 2 What we will discuss Introduction Brief introduction of VALUE Journey of Service Management lifecycle to provide Value with Practical examples
3 3 Who am I??? Texan K&H (loved Budapest, Lake Balaton & Miskolc) Been in IT on the good guy side (Operations and Service Management) ITIL v3 Expert, trainer and ex-examiner COBIT5 lecturer Lean IT advocate Mentor, coach, advisor Worked all over: Poland, Bahamas, Belgium, UK And someone suggested I am good at asking the silly questions like WHY?
4 4 Value: What is it? Albert Einstein: Not everything that counts can be counted, and not everything that can be counted counts. The goal of the ITSM Lifecycle is to create a service or product that delivers what they want, when they want it, how they want it and for a fair price Value is the measurable thing from the service you provide that lets the customer receive or create something (money, less effort, another product, etc.)
5 5 Value and Outcomes Aidan Lawes: We must remain focused on the outcomes that we are seeking, not the mechanisms that are used to achieve it Customer made or done to order for them You only need two questions: 1. When do you like us? 2. When don t you?
6 6 The Value of IT IT is the Business and the Business is IT Think of one thing that the business can do for more than a lunch hour that creates Value for the business and requires no technology? One thing???? Now think of one thing that IT can change that if it fails or causes an incident will not impact the business from making Value?
7 7 Isn t IT Service Management fun?? Year on year cost reduction Reduce the time to deliver requests Keep it up as close to 100% as possible Be agile so the business can be competitive and compliant Bring to the business ideas so they can create more money (BYOD, Cloud, BIG Data) Where possible use someone else (outsource) How many of you have heard that investment in IT underpins growth? Now how many of you have heard of any company that really grew and serviced their customers well without investing in IT since the crisis began? Think of Google, Amazon, Tesco; they have IT at the centre of their business and understand that integrated Service-oriented IT makes a difference.
8 8 Frameworks: value creators ITIL, COBIT, Lean: provide a framework to work with the business customer such that what they wanted we can create and run for them: Make informed decisions Helps drive down costs Improve management of IT Governance enablement Integration of technologies (BYOD, Cloud) Customer and stakeholder focus Marcus Messerschmidt, IT Services leader at PwC Germany: State of the art CIOs realise that their role is to deploy business processes, not to deliver infrastructure services
9 9 So let s start our journey Where are you now and where do you want to be? (Service Strategy) How do you get there? (Service Design) How do you arrive safely? (Service Transition) How do you at stay there? (Service Operations) How do you change and improve? (CSI)
10 10 Service Strategy
11 11 Service Strategy
12 12 Service Design
13 13 Capacity, SLA, Security,. OR!
14 14 Service Transition
15 Evolution of a Project Execution 15
16 16 Service Transition in Practice Business Unit ICT Service PMO ICT Operations Service Design Request Service Design Request Service Design Request Service Design Package Service Design Service Package Design Package Implementation Projects Business Objectives Risk Analysis Financial Analysis Business Case Transition Plans Operational Requirements Operational Budgets Service Development Board Agrees development priorities, timescales, resources & budgets Service Transition Board Agrees implementation timescales within operational requirements, priorities, resource plans & budgets Service Operations Service Owners, Service Managers, Business Relationship Managers, Service Improvement Service Owners, Service Managers, Operations Managers, Project Managers BAU Operations Service Implementation Service Reporting Project Implementation Resource Management Escalation
17 17 Service Operation Need to address the balance of Activity and cost Where the data for improvement is generated and should begin
18 18 KPIs: Do they lead you to Value? Effort PM where A x Size E x n i 1 ksloc kilosourcelinesofcode EM i Effort Multiplier: linear effect on effort E Constants that can be used to calibrate the formula B 0.01x 5 j 1 SF j Scale Factor: exponential effect on effort Why have a KPI if it does not link to Value for the customer???
19 19 Value focused KPIs
20 20 The CIO that ate his Hat
21 21 Continual Service Improvement (Shiego Shingo) The four goals of improvement must be to make things easier, better, faster and cheaper.
22 22 The cycle of improvement Plan Act Do Check How many times have you seen this???
23 23 Make Service Management work for you IT Service Management Operating Model MFU Strategy Generation Business Assessment Plan offerings Service Portfolio Service level package PCAB Approval Modelling, Application Sizing, Reliability, Recovery, Testing, Controls, Maintenance, Architecture, Product & Service Documentation, SLA/OLA/Contracts, Physical Environment Service design package SLM Availability Capacity Security Supplier BT Design TCAB Approval Planning & Support, Validation, Acceptance Criteria, Baseline Models, Training, Development Known Errors, Early Life Support, Product and Service documentation Change / Release Service Reporting, Service Measurement, Continual Service Improvment Enterprise, Risk & Information Security Governance IT Asset & Configuration Management Service release package DCAB Approval BT Operate Deploy Monitoring, Escalation, Major Incident, Database, Storage, Network, Facilities Management, Virtual Services, Desktop, Servers, Middleware Service Desk Network Operations Event ISRM Access Problem Bridge Change
24 24 Back to the beginning: Old faithful
25 25
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