the it infrastructure library - itil®

The IT Infrastructure Library - ITIL®The New Global Standard for IT Service ManagementThe IT Infrastructure Library - ITIL®The New Global Standard for IT Service Management

Don Long

Director of Operations Management,

Codesic Consulting

February 7, 2007

ASPE Technology Presents:

February 7, 2007Codesic Conusulting - 2006. Do not copy or distribute without permission.

Agenda

Introduction to IT Service Management

Overview of the IT Infrastructure Library (ITIL®)

ITIL Adopters & Deployment Approaches

Critical Success Factors

Case Study – Summary Results

Wrap-up


Seventeen years planning and production management roles - U S WEST: 1979 - 1996

Five years Executive Consulting - Service Management Best Practices: 1996 - 2000

Brief Background Summary

Director Technology Planning and Computer Operations, Airborne Express: 2000 - 2004

Senior Director, Global Service Management, DHL: 2003 – 2005

Director Operations Management & ITIL Practice Leader, Codesic Consulting – 2005 to current.


ITIL History

Information Technology Infrastructure Library

1980’s - British Government industry research on best practices for managing production systems

Findings documented as the first comprehensive service management best practice framework

Strong early interest in Europe – 1990s

Emerged as the de facto global standard for systems management

Growing interest and adoption in the US

December 2005 – Published as ISO 20000


Developer’s active in methodology and training standards since the mid-1980’s. (i.e. PMI/SEI’s-CMM)

Production support standards slower to materialize:• Home-grown initiatives – ’80s & ‘90s

• Proprietary frameworks (IBM, HP)

• Best Practice Share-groups i.e. Gartner

ITIL’s emergence as the global standard now provides:• A common reference point for infrastructure

professionals for the first time

• Public non-proprietary reference materials

• Globally standard, accredited training (EXIN, ISEB)

Infrastructure Standards Lag


Some Key Definitions

1. IT Service Management (ITSM):• A business driven vs. technology-centric view of IT which

defines IT’s role as meeting the requirements of the business

2. The Business:• Includes public sector and not-for-profit as well as

corporate and profit-centered organizations

3. Services:• The deliverables of the IT organization as perceived by

the customer (automated job functionality)

4. Customer:• A business unit customer of the IT department who

defines and agrees to the services and service quality to be provided by an IT Service Provider


The ITIL Framework

Service Support

The Business

Perspective

ICT Infrastructure Management

Planning to Implement Service Management

Applications Management

The

Business

The

Technology

Service Delivery

SecurityManagement

Service Management

Service Support

Source: OCG


Why standards now?

Critical dependence on technology to perform basic business functions

Increased costs for services provided

High availability with 24 x 7 support requirements

Increasing customer technical sophistication

Immediate and visible impact of service failures


Clear understanding of their priorities and requirements

Service and support commitments consistently met

Communication on both long and short-term service and support issues

To be treated as a business partner

Value for dollars invested

What the business wants…


Where does ITIL fit in?

ITIL promotes a service management approach which emphasizes:

• Globally standard definitions and concepts

• Alignment of IT requirements with business priorities

• Direct dialog with IT stakeholders

• An industry standard/best practice approach

• Networking with other adopters

• Reworking organizations, systems and processes to deliver higher service quality


Framework Overview

ITIL is a set of best practice text books covering the following seven areas:

• Planning to Implement Service Management

• Service Support

• Service Delivery

• Security Management

• The Business Perspective

• Infrastructure Management

• Applications Management

(Areas of Widest Interest/Adoption)


Current Adoption Focus

Service Support • Service Desk (process/function)

• Incident Management

• Problem Management

• Configuration Management

• Change Management

• Release Management

Service Delivery• Service Level Management

• Capacity Management

• Availability Management

• Financial Mgmt. for IT Services

• IT Service Continuity Management


Process Adoption Focus Areas

Service SupportService Desk

Incident Management

Problem Management

Configuration Management

Change Management

• Release Management

=More Rapid Results and ROI


Process Definitions

Service Desk: (Process and Function)

• The initial, central point of contact for the business on all IT related matters

• More than just a Help Desk. . . serves as the principal interface between IT and their customers

Incident Management: Any event which is not part of the standard operation of a service and which causes an interruption or reduction in the quality of the service

• Goal: To restore normal service as quickly as possible and gather data on incidents and their causes


Service Support - cont’d

Problem Management:• Investigates the underlying causes of incidents

• The proactive role in preventing incidents from occurring or recurring through root cause and trending analysis

Configuration Management:• Inventories all IT infrastructure and associated

assets as Configuration Items (CIs) in a Configuration Management Database (CMDB)

• Establishes CI relationships and provides a logical model of the IT infrastructure to support the Service Management processes (Change, Problem, etc.)


Process Definitions - cont’d

Change Management:

• Manages changes to the Configuration Items (CIs)

• Responsible for implementing changes successfully with minimum risk and impact to the business

Release Management:

• Manages the physical deployment of new or large-scale changes to IT configuration items (i.e. major hardware and/or software rollouts, bundled sets of changes such as an application release)

• The difference between Change and Release is primarily one of scale


Delivery Focus Areas

Service Delivery Service Level Management

• Capacity Management

• Availability Management

• Financial Mgmt. for IT Services

IT Service Continuity Management

=More Rapid Results and ROI


Service Delivery Processes

Service Level Management:

• Defines and documents the priority and quality of service levels required by the organization for each IT service

• Improves business alignment and service quality through cycles of agreeing, monitoring, reporting and reviewing service metrics/achievements

Capacity Management:

• Ensures that resource capacities will meet current and future business requirements without waste or performance degradation


Service Delivery - cont’d

Availability Management:

• Focuses on engineering to deliver acceptable levels of availability at a cost which aligns to business need and the objectives for the service

Financial Management for IT Services:

• Financial oversight of IT assets and the funding processes used in providing IT services

• Coordinates budgets and compares estimates with actuals allowing deviations to be identified and remedied

• Provides the basis for charge-back through the budgeting and accounting functions


Process Overview Completion

IT Service Continuity Management:

• Supports the organization’s overall Business Continuity Management process

• Ensures that IT resources can be recovered within acceptable business timeframes

• Heightened area of interest since 9/11, Sarbanes/Oxley


The Growing US ITIL Community

ITIL is now managed by a public interest group called the IT Service Management Forum (itSMF)

Global: www.itsmf.org

US: www.itsmfusa.org

itSMF USA’s 2006 membership lists:

• 350+ organizations (corporate sponsored staff memberships)

• 3000+ Individual Members (covers both individual and many corporate un-sponsored memberships)

Globally – 12,000 Corporate and Public Sector, 25,000 Individual members


Better Known US Adopters

• General Dynamics

• General Electric

• Anheuser-Busch Co. Inc.• AT&T • Caterpillar inc.• Charles Schwab• Chevron• Circuit City Stores

• DHL

• Dow Chemical

• Earthlink• Eli Lilly• Enterprise Rent-A-Car

• General Motors

• Halliburton

• Harley-Davidson Motor Company

• Hewlett-Packard

• IBM

• Intel

• Northwest Airlines• RadioShack Corporation• Sprint

• State Farm Insurance

• Target

• Toyota Motor Sales


Deployment Approaches

Pain-Point Approach

Small Program Approach

Enterprise Program Approach


Deployment Approaches - 1

Pain-Point Approach:

Common start-up method with lower risk and less investment required

Targets an area of compelling business need, i.e.

• Reduce downtime, centralize user support

Requires basic project management skill/experience

Allows scope management

Builds on momentum based on incremental project successes


Common Pain-point Areas

Incident Management• Service Outages - Need to reduce downtime and

improve mean-time-to-repair

Service Desk• No central point of contact or help desk with limited

help capability

• Need to improve consistency, free up key resources

Service Level Agreements (SLAs)• Limited direct dialogue with the business

• Need to document priorities, service targets and build customer relationships

• Need for service metrics and service level reporting


Rounding out the top six…

Change Management:• Monday Morning Syndrome

• Failures due to high risk, poorly tested, unscheduled or poorly communicated changes

Problem Management:• Limited understanding of underlying causes of

failures

• Recurring failure types

Configuration Management:• Weak or fragmented inventories (SW Licences, asset

management data)

• Weak configuration/component relationship data



Small Program Approach:

Groups two or three closely related process areas for funding and approval (i.e.)

• Incident and Problem Management

• Configuration, Change and Release

• Service Desk and Service Level Management

Raises project visibility

Requires broader, cross-group involvement

More complex/longer to implement



Enterprise Program Approach:

Groups and prioritizes all best practices for development based on expected value/return on investment

Rolls-out process areas in parallel (as per small program approach) over a period of two or three years

Most complex and high risk approach requiring:

• A clearly identified, senior management sponsor

• Strong cross-organizational support and funding

• A successful history of large-scale programs such as a corporate SDLC, an enterprise application or a Program Office.


Case Study Analysis

Program Objectives from across Multiple Organizations

Reduce costs, improve staff response times

Improve systems availability

Improve productivity and customer satisfaction

Achieve new high availability on-line targets

Reduce staff turnover

Provide an integration framework for mergers and acquisitions

Establish globally standard, “follow-the-sun” data center operations – US, Europe and Asia


Reported ITIL Results

Improved availability of key business applications from 96% to 99.9%

Reduced incident response times by 15% in 12 months

Reduced total reported incidents by 10% while introducing new applications

Reduced service desk staffing from 45 to 35 FTEs

Improved service desk first call resolution rates to 75%

Reduced Severity 1 and 2 calls by 50%

Improved productivity as measured by # of customers served per IT staff member


Results - 2

Reduced costs by $4.5M/year (7% of IT operating budget by eliminating under-utilized assets such as software licenses)

Improved knowledge base of known errors from 5% to 30%

Reduced incident resolution times (50% closed in 1 Hour and 80% closed in 24 hours)

Improved customer satisfaction scores from 6.8 to 7.6 (scale of 10)

Improved overall employee satisfaction from 73% to 86%

Integrated staff and operations from three major acquisitions

Established global incident management, change management and follow-the-sun standardized operations

Won the 2003 HP Service Desk Award


DHL Program Results

Integrated staff and operations from three major acquisitions

Established global incident management, change management and follow-the-sun standardized operations

Won the 2003 HP Service Desk Award

See Gartner: “Global Transportation Enterprise Adopts ITIL” published December, 2005 (id number G00127116)


Recap of ITIL Strengths

A standard way of defining and managing IT Services across organizations:• Service Management concepts and terminology

• Processes and relationship mapping

• High level process goals, objectives & flows

• Measurements/Key Performance Indicators

• Scalability across organization sizes and types

• Some role definitions

• High-level advice on implementation

• Industry Standard Training (3 Levels)

• Benchmark and maturity assessment capability


What does ITIL not provide?

Out-of-the box process and implementation solutions

An Organization model

Detailed process documentation or process flows suitable for direct implementation

Detailed position descriptions

Department or workgroup level procedures, templates and artifacts

A “silver bullet” – process design and service improvement is still hard work!


Forrester Research:

• “…adoption among $1B+ revenue companies has increased substantially in the past year, with the number projected to reach 80% within Global 2000 companies by 2010.”

Gartner Predicts:

• “By 2008, 35 percent, and by 2012, 50 percent of large IT organizations will have transformed to IT service management, up from less than 20 percent today.”

Wrap-up – What’s next?


Questions?


Codesic Consulting

Founded in1994 in Kirkland, Washington

100+ salaried, senior consults with an average of over 13 years experience

Puget Sound’s best resources supporting the entire IT lifecycle

Project leadership and staff supplementation

Eighteen certified ITIL consultants

Project Success Guarantee

For more information about Codesic, or if you are interested in learning more about our products and services, see us on the WEB at www.codesic.com or contact Don Long at the number below.

Codesic Headquarters10210 NE Points Drive

Suite 410

Kirkland, WA 98033

1-877-4codesic (1-877-426-3374)

425-576-9292

Don Long Director of Operations Management

Mobile: 425-890-3681

[email protected]


ASPE Technology

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Don’t forget to check out our ITIL Foundations Exam Preparation Boot Camp after the presentation. www.aspetech.com/courses/4700

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