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ITIL FOUNDATION TRAINING

Topics for the day

Role of IT, ITSM & ITIL Purpose of ITIL and how it will benefit

you? Terminologies used in ITIL 5 books in ITIL The ITIL processes and Functions.

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Introduction to IT, ITSM and ITIL

Intended Audience

IT Staff, System and Network Administrators, Managers and Executives, Anyone and everyone who is responsible for the delivery of

IT services in an organization.

Purpose of ITIL/ITSM

Organizational Benefits to ITIL Improved customer satisfaction through a more professional approach to service delivery Improved IT services through the use of proven best practice processes Improved ROI of  IT Improved delivery of third party services through the specification of ITIL Improved morale of service delivery and recipient staff Increased competence, capability and productivity of IT staff Increased staff retention Reduced cost of training Improved systems/ applications availability Reduced cost/ incident Reduced hidden costs that traditionally increases substantially the TCO Better asset utilization A clear business differentiator from competitors Closely aligned to commercial business services and products Greater visibility of IT costs Greater visibility of IT assets A benchmark to measure performance against in IT projects or services Reduced cost of recruitment and training - hiring ITIL qualified people is easier

Why Should I have ITIL\ITSM awareness or be an ITIL certified?

Becoming ITIL certified will make you a valuable resource ITIL knowledge will allow you to understand the common

language of ITIL, understood by IT professionals worldwide, and will increase your standing within the IT community.

ITIL gives you an adaptive and flexible framework for managing IT services and encourages you to use common sense rather than follow a rigid set of rules.

ITIL will create a common understanding between your IT staff, suppliers, contractors and users within the business by creating a common approach and language towards IT services.

ITIL can deliver huge cost savings for an organization by promoting the optimum use of people, process and technology. Pro-active management and continuous service improvement will help to increase quality while reducing overall costs.

What is IT?

Business is looking to IT for Service Delivery rather than just product

delivery. This should be achieved in an environment of tight budgets

hence the need arises to reduce and control the IT cost IT must be viewed as an intrical part of the business This helps increase IT’s real and perceived value to the

business

Business Challenges

What is a Service?

“Service is a means of providing value to the customer by providing the outcome that the customer needs without the ownership of specific cost and risk.”

Who are the Customers? Who are the Users?

UTILITY“Fit for purpose” +

WARRANTY“Fit for use” = VALUE

Utility and Warranty

What does ITSM do?

What is IT Service Management (ITSM)?

Service is an approach that IT organizations can utilize to

design, build, integrate, manage and evolve quality IT services.

“ Service Management is a set of specialized organizational capabilities for providing value to customers in the form of services”

It helps in alignment of four attributes People, Process, Products

and Partners

The Benefits of ITSM are :

Reduced costs Improved agility(flexibility) Increased customer satisfaction Strong business partnerships Built-in and measurable quality improvements

The History of ITIL

1980’s

British Government determined that the level of IT service quality that they received was not sufficient. The Central Computer and Telecommunication Agency (CCTA) now called as Office of Governance Commerce(OGC) was assigned to develop a framework for efficient and financially responsible use of IT resource. This was joint effort between government and private sector.

1989

GITIM(Government Information Technology Infrastructure Management) later called as ITIL Version 1 was release which consisted of 40 books

2001

ITIL Version 2 was released which consisted of 7 books.

2007

ITIL Version 3 was released which consisted of 5 books

Why is ITIL V3 referred to as a Good Practice?

Good practice is a management plan which asserts that there

is a method, technique, activity, process, reward or incentive

that is more effective at delivering a particular outcome than

any other technique, method, process, etc.

What is ITIL?

The IT Infrastructure Library is the most widely accepted approach to IT service management.

It is a library of books which talks about the good practices in IT service management.

ITIL is a Framework ITIL defines the organizational structure and skill

requirements of an IT organization and a set of standard operational management procedures to allow the organization to manage an IT operation and associated IT infrastructure.

Difference between a Framework and Standard

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FRAMEWORK STANDARD

Customizable Not customizable

Good Practice Best Practice

Individual gets certified An organization gets certified

Example of framework : ITIL, COBIT

Example of Standard : ISO 20000, ISO27001

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Common Terminologies

Resources and Capabilities

Resources and Capabilities are types of assets. Organizations use them to create value for the

customers. Resources are those that are readily available or

those assets that the company can easily acquire. They are tangible.

Capabilities are intangible assets of an organization and cannot be purchased. It is Developed and Matures over time.

Example of Resources and Capabilities

Process and Function

PROCESS

Process is a set of coordinated activities combining and implementing resources and capabilities in order to produce an outcome which, directly or indirectly, creates value for an external customers or the stakeholders.

Characteristics of a Process

- They are measurable- They deliver specific results- They Deliver outcome to customer or

stakeholder.- They Respond to a specific Event.

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FUNCTIONS

Units of organization specialized to perform certain type of work and responsible for specific outcomes.

RACI Matrix The RACI Model (RACI Matrix) is a simple tool that is useful for

highlighting roles and responsibilities during a project, program, or

indeed any organizational change. RACI is an acronym for Responsible, Accountable, Consulted, and

Informed.

Rules of RACI Matrix

Only have one Accountable person per activity.

There should be at least one Accountable and one Responsible

Different Service Provider

• Type I (Internal service provider):Exists within an organization solely to deliver service to one specific business unit.

• Type II (Shared service provider):Services multiple business units in the same organization

• Type III (External service provider):Operates as an external service provider serving multiple external customers.

About ITIL V3

ITIL V3 consists of five core books Service Strategy, Service Design, Service Transition, Service Operation and Continual Service Improvement

Service Life Cycle

Service Life Cycle

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Service Strategy

Processes in Service Strategy:

Service Portfolio Management Demand Management Financial Management

Why have a Service Strategy

Strategy, in the context of Service

Management, helps answer questions like :

Why the business customer would buy IT services?

What IT services would customers need? How to differentiate from the

competitors? How to create value for customer? How much should be charged for IT

services? What is the ROI (Return on Investment) ?

Objectives of this Phase

Objectives of this phase is to help answer key

strategic questions about services:

Which service are most distinctive? Which services are most profitable? Which activity in our chain or value network are

most different and effective? Which is the Market Space?

Concepts and Models

Business Case A Business Case is a structured and

documented justification for investment in something expected to deliver value in return.

Return on Investment (ROI)/Value on Investment (VOI)

Warranty & Utility

WARRANTY + UTILITY = VALUE CREATED

Warranty (Fitness for use)It is the assurance that enough service is available, it has enough capacity. Is secured and recoverable

Utility (Fitness for purpose) The positive effect on performance of tasks as

perceived by the customer. The removal of constraints would be perceived as

a positive effect.

Four P’s of Service Strategy

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SERVICE LEVEL PACKAGE

A Service Package provides a detailed description of package of bundled

services available to be delivered to customers. The contents of a Service

Package includes: The core services provided Any supporting services provided The Service Level Package.

Service Level Packages are effective in developing service packages with

levels of utility and warranty appropriate to the customer’s needs and in a

cost-effective way. Availability and Capacity Levels Continuity Measures Security Levels Support arrangements (e.g. hours of support).

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PROCESSES

Service Portfolio ManagementGOALLook at the market space and the customer to analyze which area

will provide the most value for business.

OBJECTIVES Consider your own capabilities and resources, as well as those

of suppliers to help determine whether to Run the Business or Grow the business.

Evaluate the Market Space and utilize the opportunity Decide on the Pricing or Charge back models

Schematic Representation on Service Portfolio Management

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Demand Management

GOAL Assist the IT service provider in understanding

and influencing customer demand for services, and the provision of capacity to meet these demands.

OBJECTIVES Identification and analysis of Patterns of Business

Activity (PBA) and user profiles that generate demand. Utilizing techniques to influence and manage demand in

such a way that excess capacity is reduced but the business and customer requirements are still satisfied.

Financial Management

GOAL

Financial Management gives insight into the costs of the IT organization and options to charge the costs - making it possible to run IT as a business

OBJECTIVES ITIL-aligned IT Financial Management policies, processes and

procedures Effective IT budget and planning practices Accurate and efficient IT charging and cost recovery for IT

services Accurate accounting of IT expenditures and revenues Reporting on the state and health of IT costs and revenues on

a regular basis Periodic audits of IT financial information to ensure accuracy

Requirement of Financial Management

Financial Management is carried out in all phases of the service lifecycle

Enables expenditure forecasts (made within Service Strategy and Service Design) to be compared with actual expenditure incurred (within Service transition and Service Operation)

IT service providers must have the ability to fund (budget) and account for all forms of expenditure throughout the service lifecycle

Financial management may also include deciding the most appropriate charge-back method

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SERVICE DESIGN

Processes in Service Design

Service catalogue Management Service Level management Supplier Management Availability Management Capacity Management IT Service Continuity Management Information Security Management

Objectives of Service Design Responsible for the design of new or changed

service going into live environment. Ensure that the Design are consistent,

compatible and capable. Metrics definition, selection and evaluation of

measurement capabilities Evaluation and Establishment of policies\

procedures for new or changed services. The output from Service Design helps to meet

changing requirements of business.

Why Service Design?

If all aspects of service, process and technology are designed properly then the service providers will have a profit.

Improved quality of service. Improved consistency of service. Easier implementation of new or

changed service. Improved IT Governance.

4 P’s of Service Design

Service Design Package

Service Design package (SDP) should be produced during

the Service design phase for:

• New service• Major change to an existing service• Removal of a service

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PROCESS

Service Catalogue ManagementGOAL The goal of Service Catalog Management is to define and

manage the active or ‘Live’ services offered to the end users of an organization.

OBJECTIVES To provide a single source of consistent information on all of the

agreed services To ensure that the Service Catalogue is available to those

approved to access it The Service Catalogue should contain accurate information

about all operational services, and services that are being transitioned into operations.

Basic Understanding on Service Catalogue

• Service Catalogue is a component of the Service Portfolio

• Service catalogue defines the dependencies and interfaces between the services and supporting components

• Two important aspect are:Business Service Catalogue – Customer ViewTechnical Service catalogue – Underpins Business Service Catalogue

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Service Level Management

GOAL To ensure that an agreed level of IT service is provided for

all current IT services and that future services are delivered to agreed and achievable targets.

OBJECTIVES• Define, document, agree, monitor, measure, report, and

review the level of services provided• Provide and improve the relationship and communication

with the business and customers• Ensure that specific, measurable and realistic targets are

developed and that the customers have a clear and unambiguous expectation of the level of service delivered

• Ensure that proactive measure to improve services are implemented where cost is justified

• Monitor and improve customer satisfaction with the quality of service delivered

Basic Concepts for Service Level Management• Service Level agreement (SLA)

An agreement between an IT service Provider and a customerIt defines the key service targets and responsibilities

• Operational Level Agreement (OLA)An agreement between an IT service Provider and an internal support group. It supports the IT service Provider’s delivery of IT Services to customer.

• Underpinning Contract (UC)An agreement between an IT service Provider and a third party supplier. It defines targets and responsibilities that are required to meet SLA target.

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Supplier Management

GOAL The goal of Supplier Management is to ensure the reliability

and cost-effectiveness of outside suppliers. The supplier management team negotiates contracts with external suppliers, and regularly reviews these contracts to ensure that they are being met.

OBJECTIVES• Negotiate and agree contracts with suppliers and manage them

through their lifecycle• In conjunction with Service Level Management, ensure that

agreements with suppliers are aligned to business needs and support agreed SLA targets

• Ensure value for money is obtained from suppliers and contracts

• Maintain a supplier policy and supporting Supplier and Contract Database (SCDB)

Availability Management

GOAL Ensure that all the IT services are available and are

functioning correctly whenever customers and users want to make use of them in the framework of the SLAs in force.

OBJECTIVES To produce and maintain the Availability Plan and assess

the impact of the changes on the plan To provide advice and guidance on all availability

achievements meet or exceed all of their agreed target To seek pro-active ways of improving availability

5 Key Factors

Fault Tolerance Availability Reliability Maintainability Serviceability

Capacity Management

GOAL Make the available IT resources that customers, users and

the IT department need to carry out their work efficiently, and to do so in a cost effective way.

OBJECTIVES Stay up-to-date with the current state of the technology and

expected future developments. Know about the company's business plans and service level

agreements in order to forecast the necessary capacity. To proactively manage capacity.

Capacity Management Sub-processes

IT Service Continuity ManagementGOALGoal of IT Service Continuity Management (ITSCM) may be

summarized as: Guaranteeing the rapid recovery of (critical) IT services after a

disaster. Establishing policies and procedures that avoid, as far as possible,

the harmful consequences of a disaster or instance of force majeure(superior force).

OBJECTIVES• To maintain IT continuity and recovery plans that support Business

Continuity Plans• To conduct regular Business Impact analysis (BIA) exercises• To conduct regular Risk Analysis and management exercise• To implement the appropriate recovery mechanisms• Assess the impact of all changes on the IT Service continuity Plans

and IT recovery plans• In conjunction with Supplier management, negotiate and agree

contracts with suppliers for the provision of recovery capabilities

Business Impact Analysis (BIA)

Business Impact Analysis (BIA) answers the following question: Evaluating the impact over time of a disruption to

an organization's ability to operate. Risk Assessment to estimate the likelihood and

impact on specific functions from known threats. How long before the business was unable to

operate? When and how should service be recovered

(based on cost / benefit analysis) ?

Risk Assessment

• Risk is defined as uncertainty of outcome• It can be positive opportunity or negative

threat to service assets• Two measurable components:

Impact (Threats)Probability (Vulnerability)

• Two distinct phases:Risk AnalysisRisk Management

• All organizations need to understand and asses the balance between cost of managing risks and the benefits of taking the risks

Information Security Management

GOALThe main Goals of Security Management may be summarized

as: Designing a security policy (in collaboration with customer and

suppliers) that is aligned with the needs of the business. Ensuring compliance with the agreed security standards. Minimizing the security risks threatening continuity of service.

OBJECTIVES• To be responsible for production, maintenance, and

enforcement of Information security Policy (ISP)• To protect the interests on those relying on information from

failures relating to lack of availability, integrity, and confidentiality

• To ensure that information exchanges between various parties can be trusted

• To ensure that the ISP is in line with the strategic goals of the organization(Corporate Governance Framework) in relation to protection and effective use of information resources

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Service Transition

Processes in Service Transition

Change Management Service Asset and Configuration

Management Release and Deployment Management Knowledge Management

Objectives of this Phase

• To plan and manage the resources to successfully establish a new or changed service into production within the predicted cost, quality, and time estimates

• To ensure there is minimal unpredicted impact on the production services, operations and support organization

• To increase satisfaction with the service transition practices

• To increase proper use of the services and underlying application and technology solutions

• To provide clear and comprehensive plans that enable the customer and business change projects to align their activities with the service transition plans

Why Service Transition?

Effective Service transition can help in:• Faster response to new requirements and

market changes.• Increased business success from change

and release.• Align the new or changed service with the

customers’ business requirements and business operations

• Ensure that customers and users can use the new or changed services in a way that maximize value to the business operations

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PROCESS

Service Asset and Configuration Management

GOAL Managing, storing and providing information about

Configuration items(CIs) throughout the lifecycle.

OBJECTIVES Identification of Configuration Items and the naming

convention to be used. Determine the information to be recorded(Which CIs,

attributes, relationships etc) Reporting on all current and historical data about the CI

Basic Terminologies

Configuration Item (CI): Both the components of IT services and the services these provide are configuration items. For example:

- Hardware devices such as PCs, printers, routers, monitors, etc. and

their components: NICs, keyboards, CD drives, etc.

- Software: operating systems, applications, network protocols, etc.

- Documentation: manuals, service level agreements, etc.

Attributes : Specific information about a CI

Configuration Management System (CMS): This database must include:

- Detailed information about each configuration item.

- Interrelations between the different configuration items, such as

"parent-child" relationships, or logical and physical interdependencies.

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Configuration Management Database (CMDB) : A collection of CMS

CHANGE MANAGEMENT

GOAL The main goal of Change Management is for all the changes that

need to be made to IT infrastructure and services to be performed and implemented correctly by ensuring standard procedures are followed.

It Talks about a controlled mechanism for IT changes

OBJECTIVESChange Management must work to ensure that changes: Are justified. Are carried out without jeopardizing IT service quality. Are properly recorded, classified and documented. Have been carefully tested in a test environment. Are recorded in the CMDB. Can be undone by running back-out plans if the system functions

incorrectly after implementation.

Change Advisory Board (CAB)A body that exists to: Prompt and efficient handling of all changes. Helps in formal review and authorization of changes. Assist change management to assess, evaluate and prioritize

changes

Emergency changes are disruptive and error-prone, so it should be kept to the

absolute minimum. For emergency change usually Emergency CAB (ECAB)

may be called to assist the Change Manager to evaluate and approve

emergency changes

Release and Deployment Management

GOAL To deploy releases into production and establish effective

use of the service in order to deliver value to the customer and be able to handover to service operations.

OBJECTIVES To ensure that Release and Deployment plans are in place,

that align with customer and business change projects Release packages can be built, installed, tested, and

deployed successfully and on schedule New or changed services are capable of meeting agreed

service levels There is minimal unpredicted impact on production

services, operations and support

Knowledge Management

GOAL To enable organizations to improve the quality of

management decision making by ensuring that reliable and secure information and data is available throughout the lifecycle.

OBJECTIVES Enabling the service provider to be more efficient, improve

quality and satisfaction and reduce cost Ensure staff have a clear and common understanding of

value that their services provide to the customers Staff have adequate information on:

Who is currently using services?Current level of consumption of the serviceDifficulties faced by customer

Service Knowledge Management System

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SERVICE OPERATIONS

PROCESSES AND FUNCTIONS

Objectives of this Phase

To enable effectiveness and efficiency in delivery and support of IT services

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PROCESS

Event Management

GOAL Enable stability by monitoring all events that occur

throughout the IT infrastructure to allow for normal service operations and detect and escalate exceptions.

OBJECTIVES

• To provide the ability to detect events, make sense of them and refer it to the correct resolver team.

• To act as the basis and entry point for the automation and execution of routine operational activities

• To provide the ability to compare actual performance against design standards and SLAs

INCIDENT MANAGEMENT

GOAL Restore normal service operations ASAP. Minimize the adverse impact on business operations.

Categorization of Incident

Priority = Impact + Urgency

Types of Escalations.

Major Incident

The highest category or impact for an incident. A major incident results in

significant disruption to Business.

An incident requiring shorter resolution timescales and greater urgency

May require a major incident team under the leadership of the Incident Manager

Problem Management

GOALPrimary Objectives included: Identify the Root cause of one or more incidence. Minimize the adverse impact of incident and problem on the

business that are caused by errors within the IT infrastructure. Eliminating recurring incidents

A problem is the cause of one or more incidents (Here the cause may not be known when the problem record is created)

Incident workarounds are documented in Incident Records Problem workarounds are documented in Known Error Records

Basic Concepts.

Types of Problem Management.

Proactive Activities.

Request Fulfillment

It is the process of dealing with Service Requests

OBJECTIVES To provide a channel for users to request and receive

standard pre-defined and approved services To provide information to users relating to the availability of

standard services To source components required to deliver standard services To assist with general information, queries and complaints

Access Management

It is a process which can be initiated by a Service Request.

Goal and Objectives: AM is the process of granting authorized

users the right to use a service while preventing access to un-authorized users

To execute the policies and actions defined in Information Security and Availability Management (Service Design)

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FUNCTIONS

SERVICE DESK

Role of The Service Desk

A single point of contact between users and the IT organization.

Responsible for the efficient handling of all incidents, Service Requests, Change Request etc

Capture and reports on meaningful management information

Basic Concepts.

Types of Service Desk

Local Service Desk

Central Service Desk

Virtual Service Desk

Follow the Sun

Local Service Desk.

Centralized Service Desk.

Virtual Service Desk.

Technical Management

It refers to the groups, department, and teams that provide technical

expertise and management of IT infrastructure

Role of Technical Management: To be custodian of technical expertise and provide the

actual resources necessary to design, build, transition and operate technology throughout the IT Service Management Lifecycle

To provide guidance to IT Operations on operational activities related to technology

Technical Management Function.

Application Management

This refers to the groups, departments, and teams that are involved in

managing and supporting operational applications.

Roles of Application Management: To be custodian of expertise and provide the actual

resources necessary to manage applications throughout the IT Service Management Lifecycle

To provide guidance to IT Operations on operational activities related to applications

IT Operations Management

Operations Control: Oversees the execution and monitoring of operational

activities and event May use Operations Bridge or Network Operations Centre

Facilities Management: The management of the physical environment including

data centre's, recovery sites and the associated power and cooling equipment

If this aspect is outsourced, Facilities Management refers to the management of contract

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Continual Service Improvement (CSI)

Objectives of this Phase

Objectives:

• Review, analyze and make recommendation on improvement opportunities in each lifecycle phase

• Review and analyze Service Level achievements• Identify and implement individual activities to

improve IT Service quality and improve the efficiency and effectiveness of enabling ITSM processes

• Improve cost effectiveness of delivering IT Service without sacrificing customer satisfaction

• Ensure applicable quality management methods that are used to support continual improvement activities

The Continual Service Improvement Model

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The Deming Cycle

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QUESTIONS ??