itil from a business perspective whats its value and what to focus on
TRANSCRIPT
ITIL from a business perspective
What’s its value and what to focus on
Executive summaryThere is at least 25% savings and improvement potential in any IT organization ITIL is acknowledged as the global standard for the process design and running of IT delivery
organizations. Although moving towards the domain of application development, its core value is in IT infrastructure (data center) services
Key asset 1 Service catalog: design of services that are recognized by and have value to the “customer”. It breaks down in components that need to be managed, maintained and innovated by IT to deliver sustainable value
Key asset 2 Continual Service Improvement (Lean SixSigma): a structured approach for incremental improvement of both delivered value and cost effectiveness of the IT organization
As a prerequisite to the above the following needs to be in place: Incident Management Request fulfillment Change Management Problem management Configuration Management, and A common Service Management tool (you can’t improve what you don’t measure)
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Agenda
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Conclusions and recommendations
Improvement
Services
Introduction
Quint Wellington Redwood
Independent Management Consulting & Education Group Founded in 1992 > 200 consultants globally Servicing global & local clients operating in more than 49 countries and across all
continents
Focusing on organizational IT-management challenges across 5 consulting practices and 1 education practice
Extensive knowledge and insight into the IT and Sourcing marketplace gained through continual market research and well-established relationships with partners (i.e. APMG, ISACA, IAOP) and service providers.
Proven IP, methodologies and tools. Recognized ‘Thought Leader’ in the industry.
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Global Coverage
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Sao Paulo
Dubai
Miami
Amsterdam
MadridMilan
Athens
Mumbai
Bangalore
Tokyo
Kuala Lumpur
Riyadh
New York
Paris
Hong Kong
Brussels
San Diego
Rome
Delhi
Client Examples – Cross Industries
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Quint Consulting Services
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Business Information Mgt
•Market Orientation•Strategy•Design• Improvement•Audit
Architecture & Innovation
•Strategy•Assessment•Second opinion•Application
rationalization•Transformation Mgt
Sourcing & Benchmarking
•Strategy•Deal making•Contracting•Mediation•Benchmarking•Sourcing &
Transition Mgt
Sourcing & IT Governance
•Strategy•Assessment•Design• Improvement•Co-sourcing
IT Performance & Quality Mgt
•Strategy•Assessment•Design• Improvement• IT Auditing•Lean
Government & Healthcare Finance
Trade, Transport & Industry
Retail & Services Utilities Telco
Our way of working: “Dare to challenge”
IT Service Management defined
IT Service Management definition:“A set of specialized organizational capabilities for providing value to Customers in the form of Services” ( Service Design, p. 11)
Another definition:“IT Service Management is the effective and efficient, process driven management of quality IT Services”
A professional practice supported by knowledge, experience, and skills, focusing on a Service-oriented approach
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The ITILv3 Service Lifecycle encompasses all processes for successful service delivery…
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©OGC
… which is successful for various reasons
ITIL embraces a practical approach to service by adapting a common framework of practices that unite all areas of IT service provision towards a single aim – that of delivering value to the business.
Vendor-neutral ITIL service management practices are applicable in any IT organization because they are not based on any particular technology platform or industry type. ITIL is owned by UK government and is not tied to any commercial proprietary practice or solution
Non-prescriptive ITIL offers robust, mature and time-tested practices that have applicability to all types of service organizations. It continues to be useful and relevant in public and private sectors, internal and external service providers, small, medium and large enterprises, and within any technical environment.
Best practice ITIL represents the learning experiences and though leadership of the world’s best-in-class service providers
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slide 12
ITIL v3 contains various processes and Functions
Continual Service Improvement
Service Strategy
Service Design
Service Transition
Service Operation
Financial Mgmt.
Strategy Generation
Demand Mgmt.
Service Portfolio Mgmt.
Service Level Mgmt.
Availability Mgmt.
Capacity Mgmt.
IT Service Cont. Mgmt.
Info Security Mgmt.
Service Catalog Mgmt.
Supplier Mgmt.
Change Mgmt.
Release and Deployment Mgmt.
Transition Planning and Support
Service Validation and Testing
Evaluation
Knowledge Mgmt.
Service Desk(Function)
Incident Management
Problem Management
Access Management
Event Management
Request Fulfillment
Technical Mgmt(Function)
Applications Mgmt(Function)
IT Operations Mgmt (Function)
7-Step Improvement Process, Deming Cycle, CSI Model
Service Reporting Service Measurement
From ITIL V2
New in ITIL v3
Functions
Service Asset and Config. Mgmt.
Agenda
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Conclusions and recommendations
Improvement
Services
Introduction
slide 14
An IT Service enables business services and consists of IT Assets and Resources
Business Service A
Business Process 1
Business Process 2
Business Process 3
IT Service X IT Service Y
IT Assets & Resources
Definition of a Service:“ Services are a means of delivering value to Customers by facilitating the outcomes Customers want to achieve without the ownership of specific costs and risks".
Slide 15
Service Value can be defined by Utility and Warranty
Service Value = Utility + Warranty
Performance supported?
Constraints removed?
Available enough?
Capacity enough?
Continuous enough?
Secure enough?
Utility
Warranty
Fit for purpose?
Fit for use?
Value
Slide 16
Service Catalog Management
BusinessProcess1
BusinessProcess2
BusinessProcess3
Business Service Catalogue
Service A Service B Service C Service D Service E
Technical Service Catalogue
SupportServices Hardware Software Applications Data
The Service Catalogue
Slide 17
Service Level Management
Customer
IT Organization
Internal Providers (Departments)
External Providers (Suppliers)
Service Level Agreement
Operational Level AgreementUnderpinning
Contract
Service Level Requirements
SLR SLA
UC OLA
Slide 18
Prerequisites for implementing Service Catalog
Operational processes Incident management Service Request Management Change Management Problem Management Configuration Management
Tooling Common Service Management tooling Systems management tooling (preferably)
IPW Red – Production time in the business
Light Green – Changes and projects
Yellow – Proactive IT
Dark Green –Financial Performance
Dark Blue – IT Continuity
ICT Domain
CommercialPolicy HRM Strategy Architecture Finance
Relationship Management
Service Level Management
Service PlanningService Development
Financial Mgnt.
Security Mgnt.
Service Build &
Test
ServiceDesign
CapacityMgnt.
AvailabilityMgnt.
ContinuityMgnt.
ChangeMgnt.
Incident Mgnt.
Problem Mgnt.
Configuration Mgnt.
Service Operations
Release Mgnt.
OperationsMgnt.
Service desk
BITA
InformationMgnt.
ICTValue
Demand Mgnt.
BusinessSupport
ApplicationMgnt.
FunctionalMgnt.
OperationsSupport
StrategicSourcing
Supplier Portfolio Mgnt.
SupplyMgnt.
ContractMgnt.
PurchaseMgnt.
SITA
Strategicsupplier
processes
Strategicbusiness
processes
Businessplanning
Businessoperations
Supplier DomainBusiness Domain
Supplier operations
Supplier planning
Agenda
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Conclusions and recommendations
Improvement
Services
Introduction
IT Management Agenda Topics
“How can my IT Organization improve its Performance towards the Business?”
“How do I get the most out of my current IT organization?”
“How do I get my IT Organization to be customer focused?”
“Does my IT organization havethe right size/cost level?”
“My customers do not recognize the added value of my IT
Organization”
“My customers think the Time-to-Market of new services
is too long”
“What is the added value of compliancy?”
The “traditional” ITIL implementationProcess-based Implementation
Key Unit of planning: Process Maturity Key Success Indicator: Maturity improvement Best suits organizations that:
Are geographically widespread Do not have a (basic) common tool Have diverse backgrounds (unconsolidated M&A’s) Have been given enough time to sort out the problems
Potential pitfalls: Non optimized performance Parochial: not customer focused Focus on individual processes with a lack of integral overview No link between processes and functions Too many KPIs No clear goals Processes compliant but customers still not satisfied
The “performance based” ITIL implementationValue driven Implementation
Key Unit of planning: Value Drivers Key Success Indicator: Measured improvement Best suits organizations that require rapid results in:
Reducing lost production hours due to IT Improving Time to Market Improving relationship between Business and IT Better anticipate future developments
Have a (basic) common tool (required) Have basic processes already implemented (required)
Principles of serving our IT customers
IT Services and Value Drivers
Manage Execution
Effectiveness of Changes
Time to Market of Changes
Lost Production Hours
Number of Proactive Changes
Quality of Plans
TrendValue Driver
Management Imperative: Communication with the (IT) Customer
Lost Production Hours
No IT Outages New Use of IT
“Maintain current functionality”
Quick Time to Market
Of Changes
Basic IT Services
How does this relate to ITIL and in particular to Incident Management?
What is an Incident? Any event not part of the standard operation of a service which (may)
cause an interruption to, or a reduction in, the quality of that service
Goals of Incident Management process: Restore normal service operation as quickly as possible Minimize the adverse impact on the business operations Ensuring that the best possible levels of service quality and availability are
maintained according to SLAs
Incident Management Process
Monitoring
Ownership
Incident DetectionAnd Recording
ServiceRequest?
Service Request
Procedure
Incident Closure
Yes
Classification andInitial Support
No
Resolution And
Recovery
Tracking
InvestigationAnd
Diagnosis
Co
mm
un
icat
ion
Lost Production HoursIT Downtime can be an expensive business
A. No. of incidents and
resolution times
B.
Time that incidents are open
C.
Time that IT customers
cannot work
D.
Excess cost and lost revenue
Priority Total numberAverage time to
repair (days)
Number of users
affected
Gross lost production
days
Cost per day
DependancyNet Lost
production daysNet costs
Costs per day to business per incident
Total cost to the business
Critical 1042 0.7 20 14,227 € 240 50 % 7,113 € 1,707,213 5000 € 3,556,695
High 2796 5.4 10 149,634 € 240 40 % 59,853 € 14,364,817 1000 € 14,963,351
Medium 12196 10.3 4 500,948 € 240 30 % 150,284 € 36,068,234 500 € 62,618,462
Low 376 9.8 1 3,699 € 240 20 % 740 € 177,556 100 € 369,908
16410 668,507 217,991 € 52,317,820 € 81,508,415
Earning and burning capacity
Performance Based Implementation
Management dashboards
Weekly KPI Dashboard
Weekly Team Dashboard
Daily Team Dashboard
M4 Management Level • Lost Production Hours• Standardization Rate• Workload KPIs• …
M5 Management Level• Lost Production Hours• Average Case Turnaround• SLA Cases by Team• Workload• …
M6 Management Level • Lost Production Hours• Actual Workload• Resolved Cases• SLA per Customer• …
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Lean IT Principles
Consistency triangle
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Implementation focussed on performance ImprovementBi-weekly Action Cycle
PBSM ROI Study (based on client data)
Agenda
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Conclusions and recommendations
Improvement
Services
Introduction
Conclusions and recommendations
1. Establish a baseline for process maturity and performance2. Fortify operational processes and Service Management Tooling where needed3. Implement Service Catalog and Service Level Management4. Develop a leadership team to drive CSI through the organization5. Initiate CSI programs
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