itil awareness anf final

5/26/2018 Itil Awareness Anf Final

1/32

Deloitte Consulting LLP

Commonwealth of Massachusetts

Statewide Strategic IT Consolidation (ITC) Initiative

ITIL v3 Overview

February 23, 2010


2/32

- 1 -

Agenda

Introduction to Service Management and ITIL

Why do we care? What is it? (i.e. ITIL is a framework for service management)

Key Components of ITIL

Service desk

Incident management Request fulfillment Change management Asset/configuration management Problem management

Next Steps with ITIL (in the context of IT Consolidation) ITIL Roadmap Key Next Steps

ITIL v3


3/32

- 2 -

Concept of Value

Value is not derived from the elementsof a product or a service

Value is derived from theprocesseswith which a product or a service is put together and

offered to the customer


4/32

- 3 -

Fidelity Confidential3

What has Henry Ford got to do with ITIL?


5/32

- 4 -

The primary driver Architectural complexity reduces IT efficiency and effectiveness

* An actual application architecture for a consumer electronics company


6/32

- 5 -

The Need For IT Service Management (ITSM)

IT (Information Technology) is now a essential part of delivering the key business processes

and results. IT is increasingly being expected to deliver the same or better quality of service to the

business that the business delivers to their customers.

Increasing visibility of IT

Increasing demands from the business to deliver effective IT solutions

Increasing complexity of IT infrastructure processes

Increasing need for service standards and repeatable processes

Increasing pressure to realize a return on IT investments


7/32- 6 -

What is ITIL?

ITIL (the IT Infrastructure Library) is a set of books and documents that are used to aid the

implementation of IT Service Management. It provides a comprehensive framework of

processes and best practice advice for IT Service Management.

ITIL is What does that mean?

A set of industry Best Practices

(e.g., need for discipline around changes; need tolink capacity planning and budgeting)

Identify and reuse what has worked best in thepast and currently at other organizations

A framework, not a methodologyProvides a body of concepts and resources todraw from, not specific required steps

Adoptable and adaptableSelect applicable parts of the framework andadapt them to fit local needs

Not a standardISO/IEC 20000 is a standard alignedwith ITIL

Scalable to the organizationssize and need

Can be adapted to fit an organizations specificsize and situation

Platform independentFlexible to all development and service efforts;not tied to any particular tool


8/32- 7 -

Why the ITIL framework?Taking Thought Leadership

1. [the] staggering improvements in customer satisfaction and operatingefficiencyare so great that Forrester has concluded that it is just amatter of time until ITIL becomes the de facto standard for all ITshops. ITIL is absolutely the best framework available for IT operation

2. at least 60% of relevant public-sector and 30% of relevant private-sector sourcing dealswill demand ITIL (ISO 20000) certification intheir RFPs

1 CIO Magazine, ITIL Power, September 20052 Gartner Research, ISO/IEC 20000 has an Important Role in Sourcing Management, January 2006

ITIL has become the de facto standard for IT Operations


9/32- 8 -

What is our focus? -- ITIL Version 3: Service Lifecycle Model

We will focus on a subset of the ITIL v3 processes. The 6 processes identified below arealso the core focus areas of the Commonwealth-wide Service Excellence initiative:

7 Step Improvement Process

Service Reporting

Service Measurement

Service Desk

Incident Managemen t

Event Management

Request Fulf i lment

Problem Managemen t

Access Management

Technical Management

IT Operations Management

Application Management

Strategy Generation

Financial Management

Service Portfolio Management

Demand Management

Service Catalogue Management

Service Level Management

Capacity Management

Availability Management

IT Service Continuity Management

Information Security Management

Supplier Management

Transition Planning & Support

Change Managemen t

Service Asset & Configurat ion Management

Release & Deployment Management

Service Validation & Testing

Evaluation

Knowledge Management

Continual Service Improvement

Processes:

Service Operation Processes:

Service Transition Processes:

Service Design Processes:

Service Strategies Processes:


10/32- 9 -

What are the benefits of ITIL?

Provides a common vocabulary and allows IT personnel in different groups

to communicate more efficiently

Provides a set of principles and processes that can be adapted

to suit any IT environment

Clearly identifies roles and responsibilities for IT infrastructure and

operations, and establishes accountability

Supports the ability of IT to measure and improve internal performance and

service provisioning, to increase the value provided to the business

Defines IT in terms of services (focusing on the value to the business),

rather than systems (focusing on IT components)

Improves the relationship of IT with the business by matching theexpectations of the business with the service levels provided

Improves the ability of IT to adjust as needs

and legislative mandates change


11/32- 10 -

What about quantifiable benefits?

Organization Key Benefits

ReutersReduced quantity of capacity related severity 1 incidents from 3-4 per month to 0 per month byintegrating ITIL Capacity Management with ITIL Incident, Problem, Change and ReleaseManagement 1

DHLReduced Service Desk costs by 20% while doubling the quantity of requests handled from82,000 to 116,000 by implementing a ITIL follow-the-sun Service Desk model and ServiceSupport processes 2

Liberty MutualObserved over a 12 month period a 45% reduction in the quantity of severity 1 incidents and60% reduction in mean-time-to-repair yielding 12,000 hours of recouped staff time due toimplementation of ITIL Change, Incident and Problem Management processes 3

Visa USA Reduced time to resolve incidents by 75% by adopting ITIL Incident Management guidelines 4

Proctor and

Gamble

Publicly attributes $125M in annual savings or 10% of the IT budget to ITIL by enabling an

effective follow-the-sun support strategy 5

CaterpillarImproved resolution time of Web incidents from 30% of target to 90% of targetDoubledvolume of business over 5 years while only increasing IT budget 1% 6

Adoption of ITIL has yielded tremendous operational benefits for a number of largeenterprises:

1 Presentation by Reuters IT department, January 2007

2. INS, Customer Case Study, HP DHL wins prestigious itSMF award, 2003

3 Information Week Optimize, Building Blocks of Process Innovation, 2005

4 SMART Enterprise, Why ITIL Rules, January 2007

5 COMPUTERWORLD Management, Procter & Gamble touts IT services model, saves $500 million, 2002

6 InfoWorld, To survive the 21stcentury, IT must manage itself based on the services it delivers, October 2006


12/32- 11 -

Case study from a leading Financial Services firm

ITIL played a key role in reducing the business impact of incidents:

Quantity of Incidents Business Impact Minutes

Incident 2005 2006 Reduction inIncidents

2005 2006 Reduction inImpact Minutes

SEV 1 26 15 11 2,262 1,397 865

SEV 2 357 241 116 96,747 54,948 41,799

Quantity of Change Induced Incidents Business Impact Minutes

2005 2006 Reduction inIncidents

2005 2006 Reduction inImpact Minutes

SEV 1 8 2 6 696 254 442

SEV 2 90 58 32 24,390 13,224 11,166

Total Sev1/2 Incidents x Business Impact Minutes

Change Induced Sev1/2 Incidents x Business Impact Minutes

Change induced SEV 1&2 incidents declined due to the implementation of

the ITIL change administration process

2006 saw a significant reduction in the number of SEV 1&2 incidents


13/32- 12 -

ITIL focus across the Commonwealth

Secretariat Current Initiatives

ANF (ITD

Commonhelp)

Expanding Maturity of Incident, Change & Request Fulfillment andadopting Asset & Configuration and piloting Problem Management

ANF Helpdesk

Consolidation

Expanding Incident Management, (limited Knowledge Management)across the full Secretariat, DOR (Calls) and Initial Pilot (both Self-service and Calls) underway with BSB (Bureau of State Buildings)with further agency deployment to 14 agencies next year and in anintegrated fashion expanding to Change Management and ServiceLevel Management (SLAs)

EOHHS

Expanding Maturity of Incident, Change & Request Fulfillment andadopting Asset, Configuration and Contract Management across

EOHHS agencies

EOLWDExpanding implementation of Incident from DIA to entire EOLWD,Expanding Asset and Change Management

EOHED

Expanding DOI implementation of Incident and ChangeManagement to DOB (Div. of Banks) and DPL (Div. ProfessionalLicensure); Planning also underway for Asset Management

There are a number of in-flight initiatives at the Commonwealth focusing on operationalimprovement via ITIL:


14/32- 13 -

Service Desk: Overview

The point of contact between the customer/user and the IT service,responsible for service requests as well as incident control.

What is a

Service Desk?

What is the

PURPOSE of the

Service Desk?

Provides a single point of contact for customers Facilitates the restoration of normal operational service with minimal

business impact on the customer within agreed service levels andbusiness priorities

Manages each user contact/interaction with the IT Service providerthroughout its lifecycle

What are theOBJECTIVES of

the Service

Desk?

To promote customer satisfaction To restore normal service as quickly as possible when there is a fault To attain service level targets for user contact responsiveness and quality To articulate and route requests to the service provider accurately and

appropriately To ensure accurate and timely communication of status To act as a strategic function to identify and lower the cost of ownership

for supporting the computing and support infrastructure To reduce costs by the efficient use of resource and technology

The Service Desk (or Helpdesk) is a Function, not a Process. Its role is crucial and centralto the whole concept of Service Management.


15/32- 14 -

Service Desk: Structure


16/32- 15 -

Service Desk: Benefits

The value of an effective Service Desk should not be underrateda good Service Desk can often

compensate for deficiencies elsewhere in the IT organization; but a poor Service Desk (or the lack

of a Service Desk) can give a poor impression of an otherwise very effective IT organization!

Specific Benefits include:

Improved customer understanding and satisfaction with IT Services

With what the Services are, and how to obtain them

With status on Incidents and Requests Lower costs to the business through faster resolution of incidents and fulfillment of requests

Improved ability to attain service level targets through the management of the flow of work

Reduced costs by the efficient use of resources and technologysimpler work can be done

by Service Desk Analysts rather than by the senior technical staff


17/32- 16 -

Incident Management: Overview

An incident is an unplanned interruption of a Service, or a reduction inthe agreed-to quality of an IT Service.

What is anIncident?

What is the

PURPOSE of

Incident

Management?

The Incident Management process strives to restore normal serviceoperation as quickly as possible and minimize the impact on businessoperations.

What are the

OBJECTIVES of

Incident

Management?

Restore services as quickly as possible following a deviation from agreedupon service levels

Log, track, capture and process all incidents in the IT environmentaccording to existing SLAs and defined interfaces with other processes

and based on defined fault-specifications


18/32- 17 -

Incident Management: Process Diagram

INCIDENT MANAGEMENT

Incident:An unplanned interruption to an IT service or reduction in the quality of an IT service.

Incident Management: The process for dealing with all incidents; this can include failures, questions or queries reported by the users, by technical staff, or by event monitoring tools.

Customer

Tier1

Tier2

Tier3

Incident From

Event Mgmt

Incident From

Web Interface

Incident FromUser Phone

Call

Email FromTechnical

Staff

Incident

IdentificationIncident Logging

IncidentCategorization

ServiceRequest?

Incident

RequestFulfillment

Incident

PrioritizationMajor Incident?

MajorIncident

Procedure

Initial DiagnosisFunctionalEscalation

Needed?

Investigation and

Diagnosis

Resolution and

RecoveryIncident Closure

Functional

Escalation

Level 2

Investigation andDiagnosis

Resolution andRecoveryInitial Diagnosis

End

Functional

EscalationLevel 3

Investigation and

Diagnosis

Resolution and

RecoveryInitial Diagnosis

No

Yes

No

Yes Yes

No

Resolved?

Resolved?

Resolved?

Functional

Escalation

Needed?

Hierarchic

EscalationNeeded?

Management

Escalation

Yes

Yes

No

No

No

No

Yes

Yes

Yes

No

Knowledge Mgmt./

Known Error DB


19/32- 18 -

Incident Management: Benefits

Incident Management is highly visible to the business when it is needed. How well incidents are

resolved has a major impact on Customer Satisfaction with IT support.

Benefits from the process include:

The ability to detect and resolve Incidents quickly, resulting in shorter downtime to the

business, and hence less impact

The ability to align IT activity to real-time business priorities: Urgency and Impact = Priority The ability to identify potential improvements to services: the data collected helps to identify

where to focus to prevent future incidents

The Service Desk can, during its handling of Incidents, identify additional service or training

requirements


20/32- 19 -

Request Fulfillment: Overview

A Request is any type of demand that is placed upon the IT Departmentby the users. Many of these are actually small changes: low risk,frequently occurring, or low cost, whose fulfillment can be standardized.

E.G., a request to change a password

What is a

Request?

What is the

PURPOSE of

RequestFulfillment?

The Request Fulfillment process seeks to manage the Lifecycle of all

Service Requests to provide the prompt, complete, and cost effectiveprovision of the Request.

What are the

OBJECTIVES of

RequestFulfillment?

To provide a channel for users to request and receive standard servicesfor which a pre-defined approval and qualification process exists

To provide information to users and customers about the availability of

services and the procedure for obtaining them To source and deliver the components of requested standard services To assist with general information, complaints or comments


21/32- 20 -

Request Fulfillment: Process Diagram


22/32- 21 -

Request Fulfillment: Benefits

The primary benefit of Request Fulfillment is to provide quick and effective access to standard

services which business staff can use to improve their productivity or the quality of business

services and products.

Specific benefits include:

Reducing the bureaucracy involved in requesting and receiving access to existing or new

services, thus also reducing the cost of providing these services.

Through centralizing fulfillment, Request Fulfillment also increases the level of control over

these services. This facilitates aggregating demand for suppliers and can result in reduced

costs through centralized negotiation.

Repeatable workflows for fulfilling requests can result in faster performance, fewer errors,

and a lower cost to provision.


23/32- 22 -

Change Management: Overview

What is a

Change?

What is the

PURPOSE of

Change

Management?

What are the

OBJECTIVES of

Change

Management?

ITIL defines a Change as the addition, modification or removal of

anything that could have an effect on IT services, usually stated as achange to a configurable item or CI.

Respond to changing customer and IT requirements, providing astructured avenue for implementing Change while minimizing risk,reducing incidents, and avoiding disruption and re-work

Record changes and then evaluate, authorize, test, implement,document, and review results in a controlled manner

Manage and minimize the risk of disruption to the business from theimplementation of Changes


24/32- 23 -

Change Management: Process Diagram


25/32- 24 -

Change Management: Benefits

Reliability and business continuity are essential for the success and survival of anyorganization. Service and infrastructure changes can have a negative impact on the business

through service disruption.

Change Management controls the risk and reality of disruption, through requiring all changesto be thoroughly analyzed, planned, tested, authorized, communicated, and implemented withappropriate back-out steps planned.

Key benefits are:

Implementing changes that meet the customers agreed service requirements while

optimizing costs

Reducing failed changes and therefore service disruption, defects and re-work

Delivering change promptly to meet business timescales

Aiding productivity of staff through minimizing disruptions due to high levels of

unplanned or emergency change and hence maximizing service availability


26/32- 25 -

Service Asset and Configuration Management: Overview

The hardware and software that IT uses to provide service to endusers, in support of business functions and applications

What is an

Asset?

What is the

PURPOSE of

Asset and

Configuration

Management?

Identify, control, record, report, audit and verify service assets andconfiguration items, including versions, baselines, constituentcomponents, their attributes, and relationships

Ensure the integrity of the assets and configurations required tocontrol the services and IT infrastructure by establishing andmaintaining an accurate and complete Configuration ManagementSystem

What are theOBJECTIVES of

Asset and

Configuration

Management?

Support efficient and effective Service Management processes byproviding accurate configuration information to enable people tomake decisions at the right time, with accurate information: to planand authorize change and releases, resolve incidents and problemsfaster, etc.

Provide management with the information required to optimize ITresources

The set of items (CIs) and their relationships that comprises IT

services and is the object of most IT tasksWhat is a

Configuration?


27/32- 26 -

Service Asset and Configuration Management: Process Diagram


28/32- 27 -

Service Asset and Configuration Management: Benefits

Having complete and accurate information about IT assets and services enables effectivemanagement of those resources

Benefits include:

Faster and less costly resolution of Incidents and Problems, through having

configuration information available to support analysis and planning

Less costly forecasting and planning of Changes and Releases

Full enterprise-wide lifecycle management of IT assets, from specification of need,through procurement and installation, through disposal

Support for Supplier management, with regard to leases and warrantees, as well as

software licenses

Appropriate protection of organizational information upon asset disposal

Better adherence to standards, legal and regulatory obligations (less non-

conformances)


29/32- 28 -

Problem Management: Overview

What is a

Problem?

What is the

PURPOSE of

Problem

Management?

What are the

OBJECTIVES of

Problem

Management?

The unknown cause of one or more incidents

Reduce the number and impact of Incidents Identify the Root Cause of Incidents or faults in the IT environment Prevent incidents from re-occurring Record information that will improve the way in which IT deals with

problems

Find the root causes of errors Develop solutions to resolve known errors Plan and request changes to implement the solutions Prevent future incidents and problems


30/32

- 29 -

Problem Management: Process Diagram


31/32

- 30 -

Problem Management is directed toward the stabilization and improvement of service availability

and quality

Benefits include:

Reduction in the number of Incidents due to more effective and efficient incident handling

Increase in user productivity and service quality

Improved reputation of IT Organization due to decrease in the repetition of incidents.

Increase in productivity of Support staff

Ability to proactively identify beneficial system enhancements, amendments and business

opportunities

Improved resolution rates at the Service Desk

Problem Management: Benefits


32/32

Roadmap for ITD Process Improvement

Incident

Management

Change

Management

Problem

Management

1.5

1 3 4

Phase 3 Dec 2010Legend: Phase 2

2.5 3.0

Institute central

management of dispatched

incidents

Institute regular review

meetings of performance

with improvement actions

assigned as needed

Revise

Process

and

republish

Train staff

on revised

process

3 +

Process 2

Phase 1

OLAs support SLAs and

are managed

Continuous

Improvement

Procedures based on

KPIs

3 +1.8 2.5 3.0

Revise process to

focus on Change

Results

Initiate Post-

Implementation

Reviews

Documented Change

Planning &

Testing

Procedures

for each

technical

team

Audit compliance

with Procedures

Expand use of

Configuration Mgt

data now available

0.8 1.5 2.53.0

Initial trend analysis

of Incidents

Formal Recognition

of Problems

Major Incident RCAs

done under Problem

Management

Create ProcessDocument

Train Staff on Process

KPI in place and

performance is

reviewed

Known Error database

created and used

Known Error Database

utilized for Incident Mgt

Process roles established,

including lead on each

technical team

Downward trend in number

of Incidents

ITD has created a roadmap to mature Service Management processes in the next year:

LowMaturity

HighMaturity

itil awareness anf final

Documents