it service management overview

Pink Elephant – Leading The Way In IT Management Best Practices

“ I T I L “What is the

ITIL REVOLUTION ?

IT Service Management Overview

Brenda IniguezDirector, Western US Pink Elephant

Industry Strategic ConsultantHDI-Global MAB Chairman Emeritus

2ITIL IT Service Management & Governance Overview© Pink Elephant, 2005. All Rights Reserved. ITIL® is a registered trademark of the OGC – the Office of Government Commerce.

Today’s Objective

To provide a very basic understanding of: ITIL Service Support components ITIL Service Delivery components ITIL and IT Governance ITIL and Business Trends


What Is ITIL?

ITIL is a seven book series (was 40!) that guides business users through the planning, delivery and management of quality IT services

Documented ‘common sense’ The only de facto industry best practice guidance

on IT service management – ‘no competitor’. Pronunciation ‘ITIL’.

Information Technology

Infrastructure Library


Planning To Implement Service Management

Service Management

ServiceSupport

ServiceDelivery

The

Business

The Business

Perspective

Application Management

ICTInfrastructureManagement

The

Technology

Security Management

The ITIL Books


What Is ITIL All About?

A set of best practices, not a process model or a standard.

Documented: process flows, roles, KPIs, consistent terminology – why start from scratch?

Not a how-to manual; implementation of ITIL processes varies according to your ‘pain points’

Non-proprietary, vendor-neutral, Public domain – ‘free’

Business drivers? Aligning IT services with business requirements Continually improve service Reduce cost – efficiencies

Has become a philosophy – education, toolsets, standards.


Practitioner LevelOrganizational Focus:

Incident Management

Configuration Management

Problem Management

Release Management

Change Management

Service Level Management

Financial Management

Capacity Management

IT Service Continuity Management

Availability Management

Executive Level

Focus On:

The Alignment Of IT With The

Business

Vision, Mission &

Objectives For IT

IT Policy & Strategy

Executive Level

Focus On:

The Alignment Of IT With The

Business

Vision, Mission &

Objectives For IT

IT Policy & Strategy

Foundation Level

For All IT Professionals

Manager Level

Focus On The Need To

Effectively Manage Larger

Scale Transitions & Improvements

Manager Level

Focus On The Need To

Effectively Manage Larger

Scale Transitions & Improvements

Role Focus:

Establishing & Managing IT Services According To ITIL Best Practices

Managing The Changing IT Infrastructure According To ITIL Best Practices

Establishing A Service Desk According To ITIL Best Practices

Measuring, Reporting & Improving The IT Infrastructure According To ITIL Best Practices

How To Implement ITIL: Integrating People, & Tools With Processes

IT Service Management Certification


Parties Involved

Office Of Government Commerce (OGC) (www.itil.co.uk) Formerly Central Computer and Telecommunications Agency Kicked off ITIL

Information Systems Examinations Board (ISEB), Examination Institute for Information Science (EXIN) & Loyalist College

Examining bodies that administer the ITIL certification process

Information Technology Service Management Forum (itSMF) International Trade Association; Networking forum for ITIL Membership based; Owned and operated by the membership

Pink Elephant Largest Worldwide Accredited Supplier of ITIL Education


ITIL: Strategic Benefits

Provides a documented framework for IT best practices: The only public, non-proprietary set of recognized best practices

Provides a holistic, connected and integrated approach to IT Identifies best practices for reducing IT costs Improves communication and information flows between IT departments Improves interfaces between IT and its customers and suppliers Improves user productivity Provides process models for IT business alignment Promotes a common language of terminology Because it is non-proprietary it is not associated with only one

entity: it is public domain The best practices in ITIL can be customized. The process models

have been designed to use whole, or in part – it’s up to you There are tens of thousands of IT professionals worldwide who

know, and use, ITIL Numerous opportunities for sharing and learning


Processes v.s. Departments

IT

Service

Desk2nd Dept. 3rd Dept.

Department View

Step 1 Step 2 Step 3 Step 4 Step 5

Process View


If You Can’t Measure It,You Can’t Manage It

Activities & Sub-Processes

Process

Input & Input Specifications

Output & Output Specifications

Resources Roles

Process Owner

Process Goal

Quality Parameters & Key Performance Indicators

Process Control

Process Enablers

ISO900X

ISO recognizes that ITIL supports quality management certification

High-Level Process Model


Definition: IT Service

What is an IT service?

An IT service is a described set of facilities, IT and non-IT, sustained by the IT service provider, that:

Fulfills one or more needs of the customer Supports the customer’s business objectives Is perceived by the customer as a coherent whole


The Essential IT Service Management Processes

Service Level ManagementAvailability ManagementCapacity ManagementIT Service Continuity

Management Financial Mgmnt for IT

Services

Service Desk (function)Configuration ManagementIncident Management Problem ManagementChange ManagementRelease Management

Service Support

Service Delivery


Management Tools

DifficultiesQueries, Enquiries

CommunicationUpdates

Workarounds

Service Desk

Incidents

Incidents

CMDB

Change ScheduleCAB MinutesChange StatisticsChange ReviewsAudit Reports

Releases

CIsRelationships

ProblemsKnown Errors

ChangesCMDB ReportsCMDB StatisticsPolicy/StandardsAudit Reports

Release ScheduleRelease StatisticsRelease ReviewsSecure LibraryTesting standardsAudit Reports

Problem StatisticsTrend AnalysisProblem ReportsProblem ReviewsDiagnostic AidsAudit Reports

ProblemService ReportsIncident statisticsAudit Reports

Releases

Release

The Business, Customers & Users

ChangesIncident

Change

Incidents

Configuration

CIsRelationships

Service Requests

RFCs/Change Documentation

Release Documentation

ITIL Service Support Model



To identify, record and report on all IT components that are under the control and scope of Configuration Management

Definitions: Infrastructure Configuration Management Database (CMDB) Configuration Item (CI) Baseline Scope CI Level Attributes Relationships


Configuration Management Activities

Identification &RegistrationVerification & Audit

StatusAccounting

ConfigurationManagement

Control

Planning

Scope, CI level, Attributes,Relationships


NETWORKNETWORKMAINFRAMEMAINFRAME FILESERVERSFILESERVERS

SWITCHSWITCH

PCPC PCPC PCPC PCPC PCPC

MODEMMODEM

MODEMMODEM

PCPC CI LEVELCI LEVEL

SCOPESCOPE

ATTRIBUTESATTRIBUTESOwner, Status,

Location, OS VersionSerial Number

RELATIONSHIPSRELATIONSHIPSIs Connected To

Is Part OfIs Member Of

Example Hardware CIs

Keyboard CPU Mouse


Service Desk

To provide a strategic central point of contact for customers and an operational single point of contact for managing incidents to resolution

In addition, the Service Desk handles Service Requests

Activities: Improve service to, and on behalf of the business Provide advice and guidance to customers Provide rapid restoration of normal service operations Meet expectations set out in the Service Level Agreements

(SLA) Management information


Incident Management

To restore normal service operation as quickly as possible and minimize the adverse impact on business operations

Incident Any event which is not part of the standard

operation of a service and which causes, or may cause, an interruption to, or a reduction in, the quality of that service


Activities

Ow

ne r

s hi p

, M

on

ito

rin

g,

Tra

c kin

g &

C

om

mu

ni c

ati o

n

Ow

ne r

s hi p

, M

on

ito

rin

g,

Tra

c kin

g &

C

om

mu

ni c

ati o

n

Incident Detection & Recording

Incident Detection & Recording

Resolution & RecoveryResolution & Recovery

Investigation & DiagnosisInvestigation & Diagnosis

Classification & Initial Support

Classification & Initial Support

Incident ClosureIncident Closure

Service Request

Procedure

Service Request

Procedure

Yes

No

Service RequestService Request


Problem Management

To minimize the adverse impact of incidents and problems on the business that are caused by errors in the IT Infrastructure and to prevent recurrence of incidents related to these errors

Problem Management seeks to get to the root cause and initiate action to remove the error

Problem A condition identified from multiple incidents exhibiting

common symptoms, or from a single significant Incident, indicative of a single error, for which the cause is unknown

Known Error A condition identified by successful diagnosis of the root

cause of a problem, when it is confirmed which CI is at fault


ChangeManagement

Incident Management

Problem Management

From Incident(s) To A Problem To A Known Error To A Change

ProblemProblem Known ErrorKnown Error

Change

CI at Fault

XX

XX X

X

XX} X

X

X

X} XX

XX}

Workaround

}Incident Matching

ProblemEvolves

Into Error Record

Root CauseDetermined

TemporarySolution RFC


Change Management

To ensure that standardized methods and procedures are used for efficient and prompt handling of all changes to minimize the impact of change-related incidents and improve day-to-day operations

Change An action that results in a new status for one or more IT

infrastructure configuration items Standard change (Pre-Approved) Urgent change Request For Change (RFC) Forward Schedule Of Changes (FSC) Change Advisory Board (CAB) Change Advisory Board Emergency Committee (CAB/EC )


Change Approval

RFC

Change Manager

Change Advisory Board

Management Board

CAB Meeting

Authorization

MINOR RFC

SIGNIFICANT RFC MAJOR RFC

(Change Manager Reports Actions To CAB)


Release Management

Release Management takes a holistic view of a change to an

IT service and should ensure that all aspects of a Release,

both technical and non-technical, are considered together

Bridges the gap between Application Development and

Operations.

Avoids the ‘over the wall syndrome’.

Definitions

Definitive Software Library (DSL)

Definitive Hardware Store (DHS)


Activities

ReleasePolicy

ReleasePlanning

Design &Develop, Or Order& Purchase The

Software

Build &Configure

The Release

Fit-For-PurposeTesting

ReleaseAcceptance

Roll-OutPlanning

CommunicationPreparation& Training

Distribution&

Installation

RELEASE MANAGEMENT

DevelopmentEnvironment

Controlled TestEnvironment

LiveEnvironment

Configuration Management Database (CMDB)&

Definitive Software Library (DSL)


The Service Delivery Process Model

SLA’s, OLA’s, SLR’sService requestsService CatalogueSIPException reportsAudit reports

Management Tools

The Business, Customers & Users

Capacity PlanCDBTargets/ThresholdsCapacity ReportsScheduleAudit Reports

Capacity

AlertsExceptions

Changes

IT ServiceContinuity

IT Continuity PlansBIA & Risk AnalysisDefine RequirementsControl CentersDR ContactsReportsAudit Reports

IT Financial Management

Availability PlanAMDBDesign CriteriaTargets/ThresholdsReportsAudit Reports

QueriesEnquiries

CommunicationUpdatesReports

RequirementsTargets

Achievements

Financial PlansTypes & ModelsCosts & ChargesReports Budgets & ForecastsAudit Reports

Service LevelManagement

Availability



To maintain and improve IT service quality through a constant cycle of agreeing, monitoring and reporting to meet the customers’ business objectives

Definitions: Service Level Agreement (SLA) Operational Level Agreement (OLA) Underpinning Contract (UC) Service Catalog Service Improvement Program (SIP) Service Level Requirements (SLR)


Activities

Establish FunctionEstablish Function

Periodic ReviewsPeriodic Reviews

Implement SLAsImplement SLAs

Draft

Draft

Negotia

tee

Revie

w UCs

& OLAs

OLAs

Agree

Agree

Revie

w SLAs

Revie

w SLM

Pro

cess

Plannin

g

Imple

men

tatio

n

Manage The Ongoing ProcessManage The Ongoing Process

Monito

r

Monito

r

Report

Report

Revie

w

Revie

w

Catal

ogue Ser

vice

s

Plan

Do

CheckAct


The Service Catalog

Service Catalog

Options

Parameters

Levels

Default

SLA

OLA UC

Request For Service

GoldGold

SilverSilver

BronzeBronze

Defines the default services with the default levels of service and the options

SLA



To optimize the capability of the IT infrastructure, services and supporting organization to deliver a cost effective and sustained level of availability, enabling the business to meet their objectives

Definitions: Availability Reliability Maintainability (Internal) Serviceability (External) Resilience Security (Confidentiality, Integrity, Availability) – legislation.. Vital Business Function (VBF) - CFIA


Capacity Management

To ensure that all the current and future capacity and performance aspects of the business requirements are provided cost effectively ‘business alignment’

Definitions: Capacity Database (CDB) Demand Management Resource Management Modeling Application Sizing


Definitions

Business Capacity Management Responsible for ensuring that the future business

requirements for IT services are considered, planned and implemented in a timely fashion

Service Capacity Management The management of the performance of the live,

operational IT services used by the customers

Resource Capacity Management The management of the individual components of the IT

infrastructure


Formerly disaster recovery. Need BCM

To ensure that the required IT technical and services facilities can be recovered within required, and agreed timescales

IT Service Continuity Planning is a systematic approach to the creation of a plan and/or procedures (which are regularly updated and tested) to prevent, cope with and recover from the loss of critical services for extended periods



More Definitions

Crisis An unplanned situation in which it is expected that

the period during which one or more IT services will be unavailable will exceed threshold values agreed to with the customer

Risk Management: Asset – Threat – Vulnerability Manual Work-Around Reciprocal Arrangements Gradual Recovery a.k.a Cold Standby Intermediate Recovery a.k.a Warm Standby Immediate Recovery a.k.a Hot Standby


Initiate BCMStage 1

Initiation

Stage 2Requirements

&Strategy

Stage 3Implementation

Stage 4Operation Management

Organization & ImplementationPlanning

Implement Stand-ByArrangements

Develop Recovery Plans

Implement Risk ReductionMeasures

Develop Procedures

Initial Testing

Education & Awareness

Review& Audit

Testing ChangeManagement

Training

Assurance

Business Impact Analysis

Risk Assessment

Business Continuity Strategy

Activities


Financial Management For IT ServicesProvide stewardship of IT assets & resources used in providing IT services

Budgeting enables an organization to: Predict the money required to run IT services for a given period Ensure actual expenditures can be compared with predicted expenditures Reduce the risk of overspending Ensure revenues are available to cover predicted expenditures

IT Accounting enables an organization to: Account for the money spent in providing IT services Calculate total cost of ownership of providing IT services Perform cost-benefit or return-on-investment analyses Identify the cost of changes

Charging enables an organization to: Recover costs of the IT services from the customers of the service Operate the IT organization as a business unit if required Influence user and customer behavior


Business & IT Processes

Customer care1 800 FOR HELPComplaints

Fault impactFault sourceFault elimination

Cabin faultsPilot reportsPre-flight checks

New planesNew routesNew services

Plane upgradesAirport upgradesLivery change

PlanesPartsSpares

ScheduleLocationMaintenance

PricingAirport feesProfit/loss

Emergency exitsSeat beltsChutes

TermsClassesRewards

FuelWeightSpeed

Service Desk

Problem

Incident

Change Release Configuration

Availability Financial Contingency SLM

Capacity


ITIL & IT Governance

An Introduction to the Key Role of IT Governance; An overview of COBIT and its relationship to ITIL

& U.S. Legislation (Sarbanes-Oxley)


Enterprise & IT Governance

RegulatoryReporting / Privacy

CorporateObjectives

Internal Risk ControlFramework (COSO)

IT Governance Framework(CobIT)

DriversDrivers

Enterprise Enterprise WideWide

IT Risk IT Risk Mgmt.Mgmt.

Standards Controls

ITIL / ASL / ISO17799 / PMI / ISO

Ownership & Accountability

Monitoring & Reporting

DisciplinesDisciplines


CobIT

IT OPERATIONS

Audit Models

Quality Systems & Mgmt. Frameworks

Service M

gm

t.

Ap

p. D

ev. (SD

LC

)

Pro

ject Mg

mt.

IT P

lann

ing

IT S

ecurity

Qu

ality System

IT Governance Model

COSO

ISO17799

PMI

ISO

SixSigma

TSOIS

Strategy

ASL

CMM

Sarbanes- Oxley

US Securities & Exchange Commission

ITIL

BS 15000

AS 8018


The Legislation Minefield

Privacy & Security: Personal Information Protection

Electronic Document Act (PIPEDA)

US Patriot Act \ Homeland Security (Critical Infrastructure)

Personal Health Information Protection Act (PHIPA)

Health Insurance Portability and Accountability Act (HIPAA)

SEC Rules 17a-3 & 17a-4 re: securities transaction retention

Gramm-Leach Bliley Act (GLBA) privacy of financial information

Children’s Online Privacy Protection Act

European Privacy Directive (Safe Harbor Framework)

Clinger-Cohen Act (US Gov.) Federal Information Security

Mgmt. Act (FISMA)

Finance: Sarbanes-Oxley (US) Basel 2 (World Bank) Turnbull Report (UK) Canadian Bill 198 (MI 52-109 &

52-111)

Other International IT Models: Australian Corporate

Governance for ICT DR 04198 Intragob Mexican Quality Effort


Sarbanes-Oxley

The Sarbanes-Oxley Act provides the foundation for new corporate governance rules, regulations and standards issued by the Securities and Exchange Commission (SEC)

Despite all the publicity surrounding the Sarbanes-Oxley Act of 2002, relatively little attention has focused specifically on the role of information technology in the financial reporting processes

Chief Executive Officers of publicly traded companies will be held accountable for the quality of the controls established which enable accurate financial reporting (This includes IT processes, systems and roles)


Section 302: Corporate Responsibility for Financial Reports The first phase of Sarbanes-Oxley took effect the fall of 2003. Section 302, requires CFOs and CEOs to personally certify and attest to the accuracy of their companies' financial results.

Section 404: Management Assessment of Internal Controls, the most urgent IT challenge for SOX compliance is found within Section 404, which requires auditors to certify the underlying IT controls and processes companies need to ensure accurate financial results. Section 404 requires auditors -- either internal and external -- to certify internal controls and the processes by which executives arrived at the numbers.

Section 409: Real-Time Issuer Disclosures The most difficult aspect of Sarbanes-Oxley compliance, is still planned for the future. It calls for real-time reporting of material events that could affect a company's financial performance. The time-sensitive aspect of this regulation will likely put significant pressure on existing IT infrastructures and data management activities.

Sarbanes Oxley Act


CobIT

CobIT: is an open standard control framework for IT

Governance with a focus on IT Standards and Audit

Based on over 40 International standards and is supported by a network of 150 IT Governance Chapters operating in over 100 countries

Describes standards, controls and maturity guidelines for four domains and 34 control objectives


CobIT: 34 Control Objectives; 4Domains

Planning & OrganizationMonitoring

Delivery & Support

Acquisition & Implementation

PO1 Define a strategic IT Plan

PO2 define the information architecture

PO3 Determine the technological direction

PO4 define the IT organization / relationships

PO5 Mange the IT investment

PO6 Comm. management aims / direction

PO7 Manage human resources

PO8 Ensure compliance with external requirements

PO9 Assess Risks

PO10 Manage Projects

PO11 Manage Quality

AI1 Identify automated solutions

AI2 Acquire and maintain application software

AI3 Acquire and maintain technology infrastructure

AI4 Develop and maintain procedures

AI5 Install and accredit systems

AI6 Manages Changes

DS 1 Define and Manage service levels

DS 2 Manage third party services

DS3 Manage performance capacity

DS4 Ensure continuous service

DS5 Ensure systems security

DS6 Identify and allocate costs

DS7 Educate and train users

DS8 Assist and advise customers

DS9 Manage the configuration

DS10 Manage problems and incidents

DS11 Manage data

DS12 Manage facilities

DS 13 Manage operations

M1 Monitor the processes

M2 Asses internal control adequacy

M3 Obtain independent assurances

M4 provide for independent audit


ITIL Framework

The BusinessCustomers End Users

Services

Application Management

Design and Planning Deployment Operations

Technical Support

Service Management



Capacity Management

Financial Management Release Management


Change Management

Problem Management

Incident Management

Service Desk

ICT Infrastructure Management



Deliver & SupportDeliver & SupportMonitorMonitor

Planning & Organization

Acquire & Implement

Planning & Organization

Acquire & ImplementPlan & OrganizePlan & OrganizeAcquire & Maintain

Application Software

Acquire & Maintain

Application Software

Assess Risks

Assess Risks

Manage Performance

& Capacity

Manage Performance

& Capacity

Ensure Continuous

Service

Ensure Continuous

Service

Ensure System Security

Ensure System Security

Identify & Allocate

Costs

Identify & Allocate

Costs

Manage Third-Party

Services

Manage Third-Party

Services

Define & Manage Service Levels

Define & Manage Service Levels

Install & Accredit Systems

Install & Accredit Systems

Manage ChangeManage

Change

Assist & Advise

IT Customers

Assist & Advise

IT Customers

Manage ConfigurationManage

Configuration

Manage Problems & Incidents

Manage Problems & Incidents

Acquire & Maintain

Technology Infrastructure

Acquire & Maintain

Technology Infrastructure

Manage DataManage

Data

Manage FacilitiesManage

Facilities

Manage OperationsManage

Operations

Define Strategic IT Plan

Define Strategic IT Plan

Define IT Organization

& Relationships

Define IT Organization

& Relationships

Manage IT InvestmentManage IT

Investment

Determine Technological

Direction

Determine Technological

Direction

Communicate Aims & Direction

Communicate Aims & Direction

Manage Human

Resource

Manage Human

Resource

Ensure Compliance With External

Standards

Ensure Compliance With External

Standards

Manage ProjectsManage

Projects

Manage QualityManage

Quality

Identify Automated Solutions

Identify Automated Solutions

Develop & Maintain

IT Procedures

Develop & Maintain

IT Procedures

Educate &

Train Users

Educate &

Train Users

Monitor The

Process

Monitor The

Process

Assess Internal Control

Adequacy

Assess Internal Control

Adequacy

Obtain Independent

Assurance

Obtain Independent

Assurance

Provide Independent

Audit

Provide Independent

Audit

Define Information

Architecture

Define Information

Architecture


Business Trends for IT Services Forresters Research 2005

IT Spending 2005:

Biggest priority for CIOs in 2005 will be applications, with 49% of decision-makers identifying deployment or upgrade of major packaged applications as a priority.

Global spending on software will rise steadily over the next four years, even as businesses look increasingly to the delivery of traditional software functionality via online services.

Security has been one of the top three IT priorities among businesses for the past 3 years; eMarketer expects this trend to continue in 2005.

Content Management: Is this the next “killer app”? Purchase plans for content mgmt increased 15 % from last year, because companies are adopting enterprise-wide strategies for managing Web content, documents, records, and digital assets.

Consulting: 69% of the companies that identified application upgrades as a priority will purchase consulting help for those projects; 44% for system integration consulting services.


Business Trends for IT Services Forresters Research 2005

Things to watch:

Regulatory compliance: 65% consider support for governance, such as the Sarbanes-Oxly Act, a priority, while 38% categorized it as a ”critical priority”

Outsourcing: application outsourcing will grow 9% and outsourcing for applications maintenance will increase 27% for 2005.

Organic IT: self-managing, self-healing data centers, transition to services-oriented architecture, components that can be invoked in a Web services model, and RFID

RFID: Wal Mart’s deadline was Jan 2005 for it’s top suppliers to start sending RFID-tagged goods units to its warehouse in Dallas. IDC estimates US retailers and their suppliers spent roughly $90 million in 2003 on RFID and AMR Research estimates consumer goods companies, many of which supply retail giant Walk-Art, spent $250million on RFID tags in 2004; Reports put Wal-Mart’s RFID spending alone at $3 billion over the next several years.


Links

Useful ITIL Resources: Pink Elephant, recognized worldwide as the ITIL experts

www.pinkelephant.com

Useful IT Governance Resources: Institute of Systems Audit & Control Association www.isaca.org

www.itgi.org (IT Governance paper COBIT & SOX)

Sarbanes Deadlines: www.sec.gov/news/press/2004-21.htm (Please refer to Release No. 33-8392 for more detailed information)


GET “ITIL-IZED” !

… be part of the ITIL REVOLUTION

Brenda IniguezDirector, Western US Pink ElephantHDI-Global MAB Chairman Emeritus

[email protected]

www.pinkelephant.com


Pink Elephant

More than 20 years experience Recognized worldwide as The ITIL Experts Initiated ITIL revolution in North America First to offer ITIL education in U.S. & Canada Trained more than 150,000 IT professionals Contributed to numerous ITIL books Received EXIN award for promoting ITIL worldwide Introduced the industry’s first IT Executive

Management Certification program ITIL based service lines: Education, Consulting,

Conferences


Director, Western US, Pink Elephant Over 20 years in IT as a practitioner, IT Management

Financial Services background; deadline & transaction driven; daily volumes of magnitude

HDI-MAB Chairman Emeritus HDI Member Advisory Board Member Served on HDI Strategic Advisory Board Served on industry Conference Boards: HDI, HDP, GCSC Founding Member of HDP, Help Desk Professionals Frequent Industry Conference Speaker: HDI, HDP, GCSC, ITSM,

local HDI chapters Officer of SFHDI Local Chapter Named one of Top 25 Support Professionals in US

Brenda Iniguez – Experience

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