the it service delivery summit

IT500 Master ClassIT4ITTony Price Craig Alexander HPE Software Services

Your speakers

2

Tony Price

Director WW IT4IT strategic consulting

HPE SW Services

Craig Alexander

EMEA Lead IT4IT strategic consulting

HPE SW Services

Context and the need for transformation?

3

Consumer demands are rapidly changing; on-demandOne common ask - better, faster, cheaper and safer

4

Gen Z2000-presentChildren

The first generation never to have experienced the pre-internet world

Millennials/Gen Y1980-2000Early teens to early 30s

Demanding, internet savvy, instant gratification. The iPad generation

Gen X1965-79Early 30s to mid-40s

The ‘focused, keep your heads down generation”

Baby BoomersPre 1965Late-40s+

Regarded in the West as the “have it all” postwar generation

Business models are changing, and IT services must shift

5

You get what you are givenYou get what you want, plus what you

didn’t know you needed…and of course, must always be better, faster, cheaper and safer

Day to day IT operations are evolvingSupport multi-model service delivery

Digital IT

Plan Source

OfferManage

New

Style

Traditional IT

Plan

Build

Run

Industrialized IT

Plan Build

DeliverRun

New

Tech

Reality: working smarter across the continuum and in all modes

IT can no longer manage all services the same way

Core IT Fluid IT

Greater agility

Businessoutcome-centric

New workloads, apps,and experiences

Shorter cycle times

IT outcome-centric

Conventional workloads & apps

Longer cycle times

Lower cost

Typical look at the business of IT still has silosAnalyze and understand how to support the business by initiative

Velocity / requirements

Process

ToolCore IT

CloudProcess

Tool

DevOpsProcess

Tool

SecurityProcess

Tool

Multiple Suppliers / SIAM

Process

Tool

MobilityProcess

Tool

Conte

xt /

use c

ase

How can IT respond?

9

Transforming IT impacts every aspect of your organizationChange the lens in which you view your business

IT Value Chain Lens

IT4IT

11

The Open Group IT4IT™ standard to Run the Business of IT

Technical Standard2011 2012 2013 2014 2015

IT4IT

2.0 Std.

10/2015

RA 2.0

(level 3)

7/2015

RA 1.2

(level 3)

3/2014

RA 0.5

(level 1)

8/2012

Value Chain

9/2011

RA 1.3

(level 3)

10/2014

RA 1.0

(level 2)

1/2013

• ~5000 downloads

• ~800 organizations

• ~74 countries

• Pocket Guide “Hot Seller”

• ~600 downloads

Original Consortium

IT4IT™ is a trademark of The Open Group

• Shell

• Hewlett-Packard (IT & SW)

• Achmea

• MunichRe

• Accenture

• Pricewaterhouse Coopers

• University of South Florida

• AT&T

IT Operating ModelDescribes the structure of IT management

IT Reference ArchitecturePrescribes the functional & information architecture

Consumer-centric service model

itSMF UK

IT delivers value through a series of activities

Which means there is an IT Value Chain supported by Value Streams

Efficiency

&

AgilityFinance & Assets

Intelligence & Reporting

Resource & Project

Governance, Risk & Compliance

Sourcing & VendorIT V

alu

e C

hain

Plan Build Deliver Run

Reference Architecture

Value Streams – MartinLean / 6-sigma concepts

Multi-Process Oriented

Customer focused results

Value Chains – PorterCompetitive Analysis

Strategic Concepts

Value Creation

Activity cost to profit margin analysis

as in a stream of activities delivering value

IT Value Chain

Strategy to Portfolio

Drive IT portfolio to

business innovation

Requirement to

Deploy

Build what the business

wants, when it wants it

Request to Fulfill

Catalog, fulfill & manage

service usage

Detect to Correct

Anticipate & resolve

production issues

The IT Value Chain has 4 IT Value Streams

Efficiency

&

AgilityFinance & Assets

Intelligence & Reporting

Resource & Project

Governance, Risk & Compliance

Sourcing & VendorIT V

alu

e C

hain

Plan Build Deliver Run

Reference Architecture

itSMF UK

General approach to the IT4IT™ Reference Architecture

User is the north star, therefore start with IT use cases

Functional Model

• High level definition of all functional areas for IT

• Based on customer use case analysis

Lifecycle

Model

• Based on ITIL and service lifecycle and high level grouping of: Continuous Assessment, Continuous Integration, and Continuous Delivery – and later into Value Streams

Information Model

• Identification of key controlling IT artifacts

• Definition of artifact lifecycles according to lifecycle model

Foundation Integration

• Defines key control points for integration, based on artifact

• Link Information model with lifecycle model Foundational Integration Layer (key control points)

Common Data/Information Model

Common Lifecycle Model

Functional Model

IT4IT™ reference Architecture V2.0

16

Service

Portfolio

Component

Portfolio

Demand

Component

Proposal

Component

Policy

Component

Defect

Component

Requirement

Component

Project

Component

Test

Component

Build

Component

Source Control

Component

Change

Control

Comp.

Problem

Component

Incident

Component

Event

Component

Diagnostics &

Remediation

Component

Usage

Component

Chargeback /

Showback

Comp.

Strategy to

PortfolioRequirement to Deploy Request to Fulfill Detect to Correct

Offer Mgmt.

Component

Offer Consumption Component

Service

Archite-

cture

PolicyRequire-

ment

Scope

Agree-

ment

IT

Initiative

Portfolio

Backlog

Item

Source

Conceptual Service

Blueprint

Concep-

tual

Service

Logical

Service

Blueprint

Test

Case

Defect

Offer

Service

Release

Build

Service

Catalog

Entry

Desired

Service

Model

Usage

Record

Fulfill-

ment

Request

Sub-

scription

Charge-

back

Contract

Request

Problem/

Known

Error

Incident

Event

Service

Monitor

Run

Book

RFC

Service

Monitoring

Comp.

Catalog

Composition

Component

Shopping

Cart

Enterprise

Architecture

Component

Service

Design

Component

Fulfillment

Execution

Comp.

Request

Rationalization

Component

Configuration

Management

Component

Release

Composition

Component

Service Level

Component

Service

Contract

Actual

Service

CIs

Service

Release

Blueprint

Build

Package

Build Package

Component

The Information Model

– The information model comprises of service lifecycle data objects and their relationships

– Each value stream produces and/ or consumes data that together represents all of the information required to control the activities that advance a service through its lifecycle

– These are referred to as “Service Lifecycle Data Objects”

17

Data object type Description Symbol

Key Data Objects

Key data objects describe aspects of “how” services are created, delivered & consumed; they are essential to managing the service lifecycle. Managing the

end to end service lifecycle & associated measurement, reporting, & traceability would be virtually impossible without them. The IT4IT Reference Architecture

defines 32 key data objects and most are depicted as black circles

Service models are stand alone subclass of key data objects that describe “what” IT delivers to its consumers. They represent the attributes of a service at three

levels of abstraction: Conceptual, Logical and Realised. These data objects referred to as the Service Model Back Bone data objects (or service backbone

data objects in short) & depicted using purple coloured circle in the IT4IT Reference Architecture diagrams

Key Data Objects

Auxiliary data objects provide context for the “why, when, where etc ” attributes and, while they are important to the IT Function, they do not play a vital role in

managing the service lifecycle. The IT4IT Reference Architecture currently describes eight auxiliary data objects and they are depicted using a grey

coloured circle

The Service Model

– Without a clear understanding of both the business and the technology attributes of a service, there is no way to be certain that the desired outcome can be consistently attained and that most optimal sourcing strategy will be applied.

– The Service Model construct in the architecture captures, connects and maintains these service lifecycle attributes as the service progresses through its lifecycle

– The structure that binds the different abstraction levels of the Service Model together is called the “Service Model Backbone”

– The Service Backbone can also be broken down into Service Components

18

Service

Portfolio

Component

Change

Control

Comp.

Strategy to Requirement to Deploy Request to Fulfill Detect to Correct

Conceptual Service Blueprint

Concep-

tual

Service

Logical

Service

Blueprint

Service

Release

Desired

Service

Model

Fulfill-

ment Request

RFC

Service

Design

Component

Fulfillment

Execution

Comp.

Configuration

Management

Component

Release

Composition

Component

Actual

Service

CIs

Service

Release

Blueprint

The Functional Model

– Based on real IT scenarios and use cases, the IT4IT Reference Architecture identifies and defines one of the essential building blocks – functional components- which create or consume data objects and can be aligned with the appropriate value streams.

– The functional Model is the set off functional components and their relationships

19

Functional Component type

Primary functional component

Description Symbol

A primary functional component is depicted using a blue coloured rectangle and is core to a specific value stream. This means that the functional component plays a key role in the

activities of a particular value stream/ Without this functional component, the integrity of the

data objects and thus the Service Model could not be maintained consistently & efficiently. Most IT4IT documentation will use language

such as “functional component is owned by or is core to a particular value stream” to

represent a primary functional component

The Integration Model

– Integration between components in the traditional IT management ecosystem is based on capability and processes.

– The interfaces needed to accommodate the requirements associated with this approach are largely point to point between products to enable automation of interdependent workflows.

– Over time, this results in a complex web of connections that is virtually impossible to manage, making changes to any of the components a daunting task

– The IT4IT reference architecture defines an integration model composed from the following three types of integrations for simplifying the creation of an IT Management ecosystem using functional components

– Systems of record integrations

– Systems of engagement integrations

– Systems of insight integrations

20

So what have we just seen and how does it relate to IT ?

21

So what have we just seen and how does it relate to IT ?

22

Control of all the suppliers

SIAM

Building from Common

Components

Service Integrator

Our business is Racing

Cloud

The race industry is competitive

Security

Buying in pre build vehicles

Brokerage

Typical look at the business of IT still has silosAnalyze and understand how to support the business by initiative


Process

ToolCore IT

CloudProcess

Tool

DevOpsProcess

Tool

SecurityProcess

Tool


Process

Tool

MobilityProcess

Tool

Conte

xt /

use c

ase

Looking at IT4IT through the Value Chain lens One IT4IT or many ?

Process

Tool

Core IT

Cloud

Process

Tool

DevOps

Process

Tool

SIAM

Process

Tool

Security

Process

Tool

Mobility

Process

Tool

Service

Portfolio

Component

Portfolio

Demand

Component

Proposal

Component

Policy

Component

Defect

Component

Requirement

Component

Project

Component

Test

Component

Build

Component

Source Control

Component

Change

Control

Comp.

Problem

Component

Incident

Component

Event

Component

Diagnostics &

Remediation

Component

Usage

Component

Chargeback /

Showback

Comp.

Strategy to


Offer Mgmt.

Component


Service

Archite-

cture

PolicyRequire-

ment

Scope

Agree-

ment

IT

Initiative

Portfolio

Backlog

Item

Source

Conceptual Service

Blueprint

Concep-

tual

Service

Logical

Service

Blueprint

Test

Case

Defect

Offer

Service

Release

Build

Service

Catalog

Entry

Desired

Service

Model

Usage

Record

Fulfill-

ment

Request

Sub-

scription

Charge-

back

Contract

Request

Problem/

Known

Error

Incident

Event

Service

Monitor

Run

Book

RFC

Service

Monitoring

Comp.

Catalog

Composition

Component

Shopping

Cart

Enterprise

Architecture

Component

Service

Design

Component

Fulfillment

Execution

Comp.

Request

Rationalization

Component

Configuration

Management

Component

Release

Composition

Component

Service Level

Component

Service

Contract

Actual

Service

CIs

Service

Release

Blueprint

Build

Package

Build Package

Component

One Lens, One Architecture, Many PerspectiveApplying IT4IT

Process

Tool

Core IT

Cloud

Process

Tool

DevOps

Process

Tool

SIAM

Process

Tool

Security

Process

Tool

Mobility

Process

Tool

Service

Portfolio

Component

Portfolio

Demand

Component

Proposal

Component

Policy

Component

Defect

Component

Requirement

Component

Project

Component

Test

Component

Build

Component

Source Control

Component

Change

Control

Comp.

Problem

Component

Incident

Component

Event

Component

Diagnostics &

Remediation

Component

Usage

Component

Chargeback /

Showback

Comp.

Strategy to


Offer Mgmt.

Component


Service

Archite-

cture

PolicyRequire-

ment

Scope

Agree-

ment

IT

Initiative

Portfolio

Backlog

Item

Source

Conceptual Service

Blueprint

Concep-

tual

Service

Logical

Service

Blueprint

Test

Case

Defect

Offer

Service

Release

Build

Service

Catalog

Entry

Desired

Service

Model

Usage

Record

Fulfill-

ment

Request

Sub-

scription

Charge-

back

Contract

Request

Problem/

Known

Error

Incident

Event

Service

Monitor

Run

Book

RFC

Service

Monitoring

Comp.

Catalog

Composition

Component

Shopping

Cart

Enterprise

Architecture

Component

Service

Design

Component

Fulfillment

Execution

Comp.

Request

Rationalization

Component

Configuration

Management

Component

Release

Composition

Component

Service Level

Component

Service

Contract

Actual

Service

CIs

Service

Release

Blueprint

Build

Package

Build Package

Component

Service

Portfolio

Component

Portfolio

Demand

Component

Proposal

Component

Policy

Component

Defect

Component

Requirement

Component

Project

Component

Test

Component

Build

Component

Source Control

Component

Change

Control

Comp.

Problem

Component

Incident

Component

Event

Component

Diagnostics &

Remediation

Component

Usage

Component

Chargeback /

Showback

Comp.

Strategy to


Offer Mgmt.

Component


Service

Archite-

cture

PolicyRequire-

ment

Scope

Agree-

ment

IT

Initiative

Portfolio

Backlog

Item

Source

Conceptual Service

Blueprint

Concep-

tual

Service

Logical

Service

Blueprint

Test

Case

Defect

Offer

Service

Release

Build

Service

Catalog

Entry

Desired

Service

Model

Usage

Record

Fulfill-

ment

Request

Sub-

scription

Charge-

back

Contract

Request

Problem/

Known

Error

Incident

Event

Service

Monitor

Run

Book

RFC

Service

Monitoring

Comp.

Catalog

Composition

Component

Shopping

Cart

Enterprise

Architecture

Component

Service

Design

Component

Fulfillment

Execution

Comp.

Request

Rationalization

Component

Configuration

Management

Component

Release

Composition

Component

Service Level

Component

Service

Contract

Actual

Service

CIs

Service

Release

Blueprint

Build

Package

Build Package

Component

Service

Portfolio

Component

Portfolio

Demand

Component

Proposal

Component

Policy

Component

Defect

Component

Requirement

Component

Project

Component

Test

Component

Build

Component

Source Control

Component

Change

Control

Comp.

Problem

Component

Incident

Component

Event

Component

Diagnostics &

Remediation

Component

Usage

Component

Chargeback /

Showback

Comp.

Strategy to


Offer Mgmt.

Component


Service

Archite-

cture

PolicyRequire-

ment

Scope

Agree-

ment

IT

Initiative

Portfolio

Backlog

Item

Source

Conceptual Service

Blueprint

Concep-

tual

Service

Logical

Service

Blueprint

Test

Case

Defect

Offer

Service

Release

Build

Service

Catalog

Entry

Desired

Service

Model

Usage

Record

Fulfill-

ment

Request

Sub-

scription

Charge-

back

Contract

Request

Problem/

Known

Error

Incident

Event

Service

Monitor

Run

Book

RFC

Service

Monitoring

Comp.

Catalog

Composition

Component

Shopping

Cart

Enterprise

Architecture

Component

Service

Design

Component

Fulfillment

Execution

Comp.

Request

Rationalization

Component

Configuration

Management

Component

Release

Composition

Component

Service Level

Component

Service

Contract

Actual

Service

CIs

Service

Release

Blueprint

Build

Package

Build Package

Component

Service

Portfolio

Component

Portfolio

Demand

Component

Proposal

Component

Policy

Component

Defect

Component

Requirement

Component

Project

Component

Test

Component

Build

Component

Source Control

Component

Change

Control

Comp.

Problem

Component

Incident

Component

Event

Component

Diagnostics &

Remediation

Component

Usage

Component

Chargeback /

Showback

Comp.

Strategy to


Offer Mgmt.

Component


Service

Archite-

cture

PolicyRequire-

ment

Scope

Agree-

ment

IT

Initiative

Portfolio

Backlog

Item

Source

Conceptual Service

Blueprint

Concep-

tual

Service

Logical

Service

Blueprint

Test

Case

Defect

Offer

Service

Release

Build

Service

Catalog

Entry

Desired

Service

Model

Usage

Record

Fulfill-

ment

Request

Sub-

scription

Charge-

back

Contract

Request

Problem/

Known

Error

Incident

Event

Service

Monitor

Run

Book

RFC

Service

Monitoring

Comp.

Catalog

Composition

Component

Shopping

Cart

Enterprise

Architecture

Component

Service

Design

Component

Fulfillment

Execution

Comp.

Request

Rationalization

Component

Configuration

Management

Component

Release

Composition

Component

Service Level

Component

Service

Contract

Actual

Service

CIs

Service

Release

Blueprint

Build

Package

Build Package

Component

Addressing the silosApply the Reference Architecture consistently to all areas


Process

ToolCore IT

CloudProcess

Tool

DevOpsProcess

Tool


Process

Tool

SecurityProcess

Tool

MobilityProcess

Tool

Conte

xt / use c

ase

Service

Portfolio

Component

Portfolio

Demand

Component

Proposal

Component

Policy

Component

Defect

Component

Requirement

Component

Project

Component

Test

Component

Build

Component

Source Control

Component

Change

Control

Comp.

Problem

Component

Incident

Component

Event

Component

Diagnostics &

Remediation

Component

Usage

Component

Chargeback /

Showback

Comp.

Strategy to


Offer Mgmt.

Component


Service

Archite-

cture

PolicyRequire-

ment

Scope

Agree-

ment

IT

Initiative

Portfolio

Backlog

Item

Source

Conceptual Service

Blueprint

Concep-

tual

Service

Logical

Service

Blueprint

Test

Case

Defect

Offer

Service

Release

Build

Service

Catalog

Entry

Desired

Service

Model

Usage

Record

Fulfill-

ment

Request

Sub-

scription

Charge-

back

Contract

Request

Problem/

Known

Error

Incident

Event

Service

Monitor

Run

Book

RFC

Service

Monitoring

Comp.

Catalog

Composition

Component

Shopping

Cart

Enterprise

Architecture

Component

Service

Design

Component

Fulfillment

Execution

Comp.

Request

Rationalization

Component

Configuration

Management

Component

Release

Composition

Component

Service Level

Component

Service

Contract

Actual

Service

CIs

Service

Release

Blueprint

Build

Package

Build Package

Component

HPE IT value chain lens changes how you execute

27

Source Offer ManagePlan

Strategy

to Portfolio

Requirement

to DeployRequest

to Fulfill

Detect

to Correct

I want to decide between build, buy or broker to deliver services

I want to aggregate services from suppliers into my catalog

I want to provide a service marketplace and track usage

I want to manage suppliers to deliver rapid & effective resolution

Service integrator

I want to maximize efficiency across my service portfolio

I want to prepare patches for updates to my running services

I want automatic request fulfilment and offer pay-on-use pricing

I want to predict events and automatically remediate incidents

Service supplier

I want to build a new service or enhance an existing one

I want to incrementally build and release new features

I want to publish my enhanced services in a service marketplace

I want to quickly identify and fix problems and defects

Service broker

Real life examples

28

Taking away pain…just happens to be IT4IT – Global Finance

True Business

Pain identified

Use Cases associated with pain

Potential value

identified

Agile approach

Regular value

delivered

IT reputation improved

Business Pain

removed

IT4IT was almost incidental The focus was on removing pain

Regular delivery of value keeps stakeholders engaged

Business

Operation

Disruption

IT4IT as the end goal (Global FMCG example)

Fantastic Architecture

Superb road maps

Happy Architects

IT not delivering the value

Unhappy business

IT4IT viewed as the end goal rather than supporting the end goalIT4IT evangelist

Without adoption value will not be realisedNo mention of Value

Focusing on Value Stream optimisation – Global Hi Tech Electronics

Tools deep dive

Identified broken value

streams

Increment Improve

Optimise Value

Streams

18 Month Road Map

Reduced waste

IT4IT value stream optimisation keyOver Optimisation leads to systemic waste

Identifying the missing basics

Optimized

Tools

Factor of 11,000 reduction of security events Arcsight ESM with D2C

Talk this language – Business and IT Execs listen !

50% faster release of applicationsContinuous Release & Deployment with R2D

30% business continuity improvement Closed Loop Incident Management with D2C

$1,000,000+ saving on business efficiencySelf Service Automated Request Fulfilment with R2F

Detect root cause:

36h*5FTE ½h*1FTE Operations Analytics with D2C

45% Support Cost reduction Retirement of legacy applications aligned to new strategic delivery with S2P

Increase speed of fulfilment by 20% resulting in 5% increase in CSATAutomation of fulfilment Process with R2F

itSMF UK

Recommendations

33

Recommendations (continued)

Value Stream optimisation Remember over optimisation leads

to systemic waste

Formal IT4IT education is valuableWe do not need to train the world in

IT4IT

At last we have a reference architecture for running the business

of IT

But keep it in context …. Its not the law…. Its not religion

Start to have conversations with your vendors about IT4IT

Remember the standard was only released in October 2015

Start thinking value and avoid pure IT Technical “speak”

The business will always listen when you talk value

Think Big Start Small

Useful links

35

The Open Group IT4IT™ forumhttp://www.opengroup.org/IT4IT

The Open Group IT4IT™ Collaboration

Sitehttp://www.it4it.com

IT4IT™ The New Reference

Architecture for Managing the

Business of IT – Webinar (recorded) https://www2.opengroup.org/ogsys/catalog/D139

The IT4IT™ pocket Guidehttp://www.vanharen.net/9789401800303/The_IT4IT%

E2%84%A2_Reference_Architecture,_Version_2.0_%

E2%80%93__A_Pocket_Guide_(english_version)?es_

p=855690

The Open Group

IT4IT Consulting Serviceshttp://www8.hp.com/uk/en/software-solutions/it4it-

value-chain/services.html

IT4IT eBookhttp://h20195.www2.hp.com/V2/GetDocument.aspx?d

ocname=4AA5-8970ENW

Live Network (for Hewlett Packard

Enterprise Software License holders) –

full product mapping to IT4IThttps://hpln.hpe.com/

Hewlett Packard Enterprise

http://www.opengroup.org/IT4IT

http://www.it4it.com/

https://www2.opengroup.org/ogsys/catalog/D139

http://www.vanharen.net/9789401800303/The_IT4IT%E2%84%A2_Reference_Architecture,_Version_2.0_%E2%80%93__A_Pocket_Guide_(english_version)?es_p=855690

http://www8.hp.com/uk/en/software-solutions/it4it-value-chain/services.html

http://h20195.www2.hp.com/V2/GetDocument.aspx?docname=4AA5-8970ENW

https://hpln.hpe.com/

Thank you and Questions

36

The CSI SAT NAV

If you don’t know which road you are on ………………any road will do!

Facilitators

John Griffiths Ian MacDonald

• 40+ years IT experience

• Working in Financial Services

• Now Independent Consultant

• ITIL Author (Availability Management)

• Multi ITSM awards winner

• UK & International Speaker

• Independent Consultant

• ITIL Trainer

• First winner of the itSMF Trainer of the year

• Delivered ITIL courses in over 30 countries

Session Outline

What you should get out of this

session:-

Understand the importance of CSI Where you should apply CSI Understand what makes effective CSI Understand the People Perspective How to Baseline - ‘Where are we now?’ How to define ‘Where do we want to go?’ Examples ‘How do we get there?’ Methods and approaches for the journey

Approach:-

Workshop Participation encouraged Opportunity to discuss and debate as a group

Before we Start

QUICK SHOW OF HANDS Why are you here?

I am interested in CSI, so here to learn?

I am keen to start CSI and looking for guidance?

I have problems with CSI and would like some ideas to address these?

Where are we

now?

Where do we want

to be?

How do we get

there?

Before you start any

Journey● You need to know where

you are going

● Why you are going there

● Where you start

● The distance (Gap) that

you need to cover

● The route you need to

follow

The CSI SATNAV

How does the proposed CSI align with the business Vision,

Mission and goals?

Define your ‘Baseline’ measures to capture the

‘Before’ position

Measurable ‘Targets’

The CSI plans for the required improvements

required to meet your targets

Measures and metrics to compare the ‘Before’ with the ‘After’.

The CSI Improvement Model (Workshop Scope)

What is the vision?

Where are we now?

Where do we want

to be?

How do we get

there?

Did we get there?

How do we keep the

momentum going?

WHY IS CSI IMPORTANT ?

Good…..who says so?

Why is CSI Important…....A Commercial Perspective

In the competitive marketplace and commercial

world in which we operate, the IT organisation

can no longer get away with simply believing that

it is ‘good at what it does’.

Thinking you are ‘good’ is now no longer ‘good

enough’!

Your Business Customers need to believe that

they are getting ‘Value for Money’ from their

spend on IT

If your Business Customers don’t feel they are getting ‘Value for Money’ then you are a COST

Why is CSI Important……It provides the demonstrable ‘Value Add’

DEFINITION

Value Add refers to “extra” feature(s) of an item

of interest (e.g. IT Services) that go beyond the

standard expectations and provide something

"more".

• Cost is tangible

• Value is a feeling or perception which needs to be positively influenced

• CSI provides demonstrable ‘Value Add’ and can positively influence the business perception of Value for Money.

GETTING STARTED WITH THE 4 P’S OF SERVICE MANAGEMENT

Getting Started – How do you get CSI up and running?

People Process Partners Products

The 4 Ps of Service Management

People

ProcessesProducts/

Technology

Partners/

Suppliers

People

• What is your CSI manager going to look like?

• What does your CSI team look like?

What do you feel are the key attributes a CSI Manager should have?

People - suggestions

RACI matrixSkills register

(skills required, skills in place)

SFIA

Training and recruitment

plans

SLA & OLA -targets

Employee survey results

Demand patterns and

forecasts

Rewards scheme

Getting started - Process

Process owners are responsible for improving their own processes - however

Problems in many processes are due to weaknesses in other processes

CSI should be used to monitor and highlight the relationships between failing processes and the ‘offending’ processes

Process

Create a list of all existing process and service owners

Assess current maturity and check processes that do not currently have owners

Present/workshop with process owners how the 7 step improvement process will work with their process

Create a prioritised sequence of processes that you will address – possibly put them in staged take-on of CSI

Getting started - Partners

Identify your suppliers

Review what and how they supply to you

Invite, or challenge them, to be part of your CSI plans

Get them to suggest theirown CSI initiatives

Partners

Ask how will they help you deliver improvements?

Check contracts to see if there are any in-built contractual improvement requirements

Talk to suppliers to assess their interest or commitment to improvements. This may involve costs

Look at renewal dates and add improvement initiatives if they do not currently exist

Make sure partners are properly managed by the respective process owners

Getting started - Products

CSI Register

• Improvement prioritisation

Communications strategy and plan

CSI Strategy – fix what’s broken versus improve what is not

Budget for CSI

Products

Most products in use in the organisation will be ‘managed’ by process owners or line managers

CSI should focus on products that produce information and reports (key to the 7 step process)

Create a register of reporting tools

Confirm they are fit for purpose

Where they are inadequate look to upgrade or replace by supporting the case with the process owner

WHAT MAKES EFFECTIVE CSI....WHAT DOES GOOD LOOK LIKE?

Understanding what makes effective CSI ?

ITIL

The

Organisation

● ITIL Readiness?

● Big Implementation

● Pre-requisites (Roles,

Processes, Capabilities)

● Governance

● ‘The last book’!

● Needs Permission (aka Governance)

● Needs Business case

● Needs Project Funding

● Needs Prioritisation

BARRIERS

BLOCKERS

Understanding what makes effective CSI?

Planned Service Improvement Enhanced Service Improvement

IT Investment is required to ensure services are

delivered to meet current/changing business

requirements

Many organisations label ‘Technology Refresh’ as

Continual Service Improvement

Planned Service Improvement :-

Needs Governance

Needs Business case

Needs Project Funding

Needs Prioritisation

The origins of ‘CSI’ are from manufacturing.

Looking how quality and efficiency could be improved by

making small incremental improvements to the ‘production

line’.

CSI applied to the IT ‘production line’ (our ways of

working) gives the required focus on improving ‘BAU’ and

making it part of the ‘Day Job’.

Continual Service Improvement:-

Provides ownership within the team - ‘Our production

line’

Exploits skills, insight and knowledge of the team

Provides a purpose for CSI

Delivers ongoing incremental improvements

http://www.technology-refresh.co.uk/

Understanding what makes effective CSI?

What does ‘Good Look like’?

Key Principles

• Focus on Value • Start where you are• Keep it Simple• Cost effective• SMART

Characteristics

• Aligns with the Company Vision, Mission etc

• Adds value to the customer• Measured benefits• Establishes a new baseline

Applied

• Services• Processes• Activities• Capabilities

UNDERSTANDING THE PEOPLE AND CULTURE PERSPECTIVES

What is culture in Organisations?

• Culture is what is created from the messages that are received about how people are expected to behave in organisations

• Culture is the ability to ‘walk the talk’

• The inability to ‘walk the talk’ is what creates the counter culture

• When you do something new or different it is the culture that will influence how it is done

Four types of people

Players

Supporters Corpses

Subversives

Types of people that create the culture

Players

Players

• Who ITIL would call the ‘Champions’

• Who psychologists would call ‘Co-ordinators’ or ‘Shapers’

• Who we probably call the boss!

• How well the players perform depends on the mix of the other three types


Supporters

Supporters

• Supporters are potential future players if properly motivated

• Characterised by;• Team player ethics

• Intervene to prevent frictions

• Help difficult people to guide their skills to positive ends

• Diplomatic with a sense of humour

• Good listening skills and people orientated


Subversives

Subversives• Appear in several different guises, for example;

– Agitators – resistant to planned changes, mainly through fear of the unknown

– Specialists – experts in their field but disregard other team or individual objectives

– Detailers – Cross the i’s and dot the t’s. Slow progress mainly due to a reluctance to delegate

– Evaluators – Mr Spock! Skilled in decision making, analytical, intellectual and unemotional


Corpses

Corpses

• Been there, done that, can’t tell me anything new

– This could be a combined corpse/subversive role

• Retirement awaits

• Not all corpses are beyond the kiss of life!• Some are only ‘temporary residents’ of this category

CSI – Where should the culture come from?

The business GovernanceSenior IT

Leadership

CSI teamService level management

Problem management

Risk management

Process/ Service owners

Business relationship

management

WHERE ARE WE NOW – BASELINES

Benchmarking

Certification

Self Assessment

Self Assessment Is performed using a structured questionnaire.

Once completed the responses are assessed against a

recognised industry maturity model or standard to provide a score

or rating.

Certification verifies the organisations compliance to a recognised

standard and includes a formal audit by an independent and

accredited body.

Benchmarking is the process of measuring the quality, time and

cost of organisational activities and comparing these results

against best practices and/or peer group organisations.

Where are we now – Establishing Baselines

ITIL Process: Change Management

Process Goal:- “To ensure that standardised methods and procedures are used for efficient and prompt handling of all changes in order to minimise

the impact of Change related incidents upon service quality, and consequently to improve the day-to-day operations of the organisation”

Process Management Assessment

Process Maturity – ‘Self Assessment’

Customer Perspective

ITIL Gap Analysis

OGC ‘target score’ to achieve ‘capable process’

Self-Assessment scores for process

4 from 9 Indicators meet or exceed OGC maturity targets

G Process Owner assigned

Core Process Documented

End-End Process Documented

Process Measured

Process Optimised

G

A

A

R

A Process Management fully established

1. The Change process can be bypassed. This is a significant key controls issue.

2. The scope of current Change Management policies is limited. ITIL provides guidance

on additional and more stringent policies to improve the success rate of change and

reduce downtime.

3. The CFS change categories are not aligned to ITIL. ‘Common terminology’ becomes

more important as the process encompasses 3rd parties and the interfaces to Release

Management are further developed.

4. ITIL assigns a priority to changes raised. Priority is not used within CFS.

5. Implemented changes are not confirmed by the change raiser as completed. Changes

are automatically closed 48hrs after their scheduled implementation.

6. The documented process does not denote ‘Change Authorisation’ and make the

necessary differentiation between approval (interested parties) and authorisation (CAB,

Change Manager). Policy change is required.

7. There is no policy defined (In Incident Mgmt or Change Mgmt) for the delegation of

change authorisation in emergency situations and the criteria and supporting

procedures to mobilise an emergency CAB (CAB/EC).

8. ITIL recommends the use of a Change Model(s) to allow the pre-authorisation of

standard changes (Low risk, well understood, proven). This encourages use of the

Change Management system but without the overhead and rigour applied to normal

changes. Change Models are not used by CFS (This could help with issue 1).

9. The measurement for Change success is based upon compliance with the process

rather than quality of change and its implementation.

10. There are gaps in the range of Metrics and KPI’s produced or reported. eg reporting to

differentiate between Late and Emergency change is not detailed in the OPRM.

3.4

0 20 40 60 80 100

Pre Requisites

Management Intent

Process Capability

Internal Integration

Products

Quality Control

Management Information

External Integration

Customer Interface

Example - Self Assessment (ITIL Process Model)

Self Assessment – Pro’s and Cons

Pro’s

• Cost effective• Flexible approach• Repeatable• Completed by Practitioners not Consultants

Con’s

• Reflects Internal view…… (Are you that good?)• Need to chase individuals to complete• Interpretation of questions• Scoring bias to ensure results are favourable

Key

Performance

Results

Key

Performance

Results

Service Desk Certification Final Score Star Rating

3.59

Example- Certification (Service Desk Institute)

Certification – Pro’s and Con’s

Pro’s

• An independent assessment • Attainment against a recognised industry standard.• Demonstrates organisational capability • Commitment to service excellence. • Commercially beneficial (new business) this may be an

important marketing opportunity to exploit to help gain and secure new business

• Staff satisfaction is improved.• Drives a common and consistent way of working.

Con’s

• Staff morale takes a hit (Pre assessments show you are not as good as you thought)

• Requires budget• Annual independent audit to check compliance• Re-certification every 3 years• Need for Improved governance and management

controls

Example:- Benchmarking (Internal IT Services)

Measure Peer Group

AvgITOPS +

Service Desk

Number of FTE personnel

Costs per FTE

Number of contacts per FTE

Cost per contact

Avg contacts per user

First time fix rate

Average Agent Talk Time per call

Mainframe


Costs per FTE

Costs per MIP

Number of MIPS per FTE

Mainframe Availability (Bank Platform)

UNIX


Costs per FTE

Number of OS instances per FTE

Cost per OS Instance

Storage


Costs per FTE

Number of installed TB per FTE

Cost per installed TB

Measure Peer Group

AvgITOPS +

Application Support (Excludes Steria)


Costs per FTE

Number of Applications per FTE

Costs per supported application

Wintel (Excludes SCC)


Costs per FTE

Number of OS instances per FTE

Cost per OS Instance

Desktop (Excludes SCC)


Costs per FTE

Number of devices per FTE

Cost per device

Indicates where IT organisation compares

favourably against the selected Peer Group

Benchmarking – Pro’s and Cons

Pro’s

An independent assessment on efficiency and effectiveness Peer Group comparisons Highlights key strengths Highlights areas where you are not cost effective/efficient Helps establish targets and new performance measures Opportunity for cost transparency with your customers Can reaffirm you are doing the right things

Con’s

Requires budget. Data collection challenges Requires project management (to be timely and within budget) Findings challenged “Apples & Pears” debates Internal measures differ to benchmark Longer term outlook for improvements to be evidenced

Baselining: Some Other Sources

• SLA trends• Uptime• Downtime• Frequency • Responses• Process measures• Process KPIs• Customer Surveys• Staff Surveys

Assessment – Some Additional Guidance

WHERE DO WE WANT TO BE?

Where do we want to be?

Shortcomings

Gaps

Differences

Self Assessments

Certification

Benchmarking

Other Sources

Set Targets

Where do we want to be? - Outputs from Assessment Score

‘IT SCORE’ Self Assessment Results

Proactive Level 3‘ ’‘GAPS’

Where do we want to be? - Objective/Target Setting

What targets should be set ?


What targets should be set?Group Session

• CSI initiative instigated to focus on Batch Quality

• Where are we now? – Baseline Batch success/failure rate measure established

• Where do we want to be? - Need a KPI target

BaselineSuccess Rate 99.68%Failure Rate = 0.32%

What approaches can be taken to establish a new KPI target for Batch Quality?

Actual Approach

Used ‘network’ to see what others were doing

Engaged batch product vendors

Engaged benchmarking companies

Established a best practice target

One Approach

Analysis of batch failures Top 10 failures Quick wins Assess Improvement

opportunity Set SMART KPI Measure and Review

Batch Success Rate KPI = 99.80%


HOW DO WE GET THERE?

‘IT SCORE’ Self Assessment Results

Target for 2013

Proactive Level 3

Areas for Improvement

Deploy and adopt industry best practices at every opportunity

Implement process management

Establish IT service ownership

Improve systems monitoring and tooling integration

Improve Asset & Configuration Management

Establish Business and Service capacity management

Drive greater virtualisation of the infrastructure estate

Centralise functions where appropriate

Push greater Service Desk ‘Self Service’ capability out to

business areas

Focus reward and recognition on staff who build robustness

into processes and infrastructure

Develop succession planning for key roles

Develop measures that demonstrate business value

Input to Operational Planning

‘GAPS’

How do we get there? - Example:- Outputs from Assessment

Score

New Target

How Do We Get There? - Some Other Techniques

ITIL ‘Tools’

• Expanded Incident Lifecycle

• Service Failure Analysis

• Technical Observation

TOP 10

• Outages

• Transaction failures

• Batch failures

• Longest running

• Repeat Incidents

Marginal Gains

• Break things down into smaller

parts

• improve each by ‘1%’

• You will get a significant increase

when you put them all together.

http://technotes.alconox.com/wp-content/uploads/2013/03/1_percent.jpg

Detect Diagnose Repair Recover Restore

Start End

The ITIL ‘Expanded Incident Lifecycle’

• Using the ITIL ‘Expanded Incident Lifecycle’ to provide a simple timeline

structure

• The time of each stage of the failure and system restart was mapped to provide an overall view of where time was ‘lost’

• Incremental ‘marginal gains’ approach taken

• Small reductions in aggregate made a big difference

• Loss of service from failure to restart reduced from 90 mins to <20 mins

SUMMARY

Where are we

now?

Where do we want

to be?

How do we get

there?

Before you start any

Journey● You need to know where

you are going

● Why you are going there

● Where you start

● The distance (Gap) that

you need to cover

● The route you need to

follow

The CSI SATNAV

How does the proposed CSI align with the business Vision,

Mission and goals?

Define your ‘Baseline’ measures to capture the

‘Before’ position

Measurable ‘Targets’

The CSI plans for the required improvements

required to meet your targets

Measures and metrics to compare the ‘Before’ with the ‘After’.

The CSI Improvement Model (Workshop Scope)

What is the vision?

Where are we now?

Where do we want

to be?

How do we get

there?

Did we get there?

How do we keep the

momentum going?

ANY FINAL QUESTIONS?

The CSI SAT NAV

Thanks for joining us on the journey today

Clear thinking for a complex world…

Continuous service improvement in SIAM

Stuart Rance & @StuartRanceAndrew Vermes@VermesAndrew

Bakery for enthusiasts

Workshop programme

Overview: Service Integration and Management

MSIMulti- sourcing

Services

Integration

(term used in USA)

WhatBringing a better IT user experience by

ensuring all service processes work together seamlessly

WhyDifferent departments, silos, outsource

providers find it hard to work together effectively

HowA stronger governance model and well

mapped process flows

Outsourcing is fun!

SIAM layers

Client organisation

SIAM

Supplier Supplier Supplier Supplier

CSI for the end to end

service

Transparency required

— Think about the value network:

— Who’s the customer and who is the supplier?

Exercise:

— Try to identify a complete value network from your own environment

— What is the ultimate service delivered?

— What does that depend on (identify key inputs)

SIAM adding value

CSI in action

— CSI is more about attitudes, behaviour and culture

— Not about org, structure, process

— About having the right services, not just efficiency

— Local optimisation ….. Global suboptimisation

CSI

ITIL CSI approach

9 Guiding Principles

107

— Lack of accountability- vendors shift blame

— SLAs and OLAs don’t join up

— Retained IT ends up doing much of the work

— What else?

Your issues with multisourcing

Exploring Governance

— Understand own sphere of influence

— RACI matrix exercise

Developing cultural harmony

— Look at performance system

— Identify disconnects and plan

System Overview

Link rewards to

individual project

performance

Identify and

develop

competencies

Provide the

right environment

tools and software

Set clear performance expectations Measure performance

Provide

feedback

& coaching

Look at your (and their) Performance system

Building collaborative culture

Organisation Strategy Processes Measures Standards

List the main players in your

SIAM ecosystem, starting with

your own

What are the most important

results for this organisation?

What are the key processes for

this organisation?

Which measures or KPIs does this

organisation pay most attention to?

Are there specific standards or

benchmarks they use internally?

1

My company IT

Service Mgt

No downtime for

critical application

users

New customer

(consumer)

onboarding: incident

management, problem

management

Number of major

incidents, % of problem

cases with root cause

No major incident longer

than 2 hours

2

Data centre

Uptime for critical

infrastructure, low

cost per user

Provisioning &

retirement

Speed of request

fulfilment, Uptime

New virtual machines in < 1

hour, 99.8% availability

3

Networks Low cost Incident Management Network uptime

99.8% uptime (measured as

an average of all monitored

components)

4

Performance SIAM worksheet

Identifying disconnects

Using Shared methods

— Discussion: How many variations on the themes of Incident, Problem and Change?

— Exercise in problem analysis

Shared methods improve communication

Four key questions:

What’s happening?

What will we do about it?

What risks are there?

How do we find the cause?

The goal is always-effective action

DECISIONANALYSISTo select the right fix or workaround

POTENTIALPROBLEMANALYSISTo managerisksSITUATION

APPRAISALTo Sort OutPriorityActions

PROBLEMANALYSISTo Find True Cause

WHAT BugMarket w eb client BugMarket native client login

What object?

What deviation? Login takes around 5 minutes instead Login fails

of a few seconds < 4 minutes

> 6 minutes

WHEREBugMarket Web client connecting to

the w eb server in Spain

BugMarket Web client connecting to

the w eb servers in India & Canada

Where

geographically?

Where on the BugMarket w eb client on user

computer

BugMarket native client on user

computerobject?

WHEN January 21st, NMD Before this date. NMD

When first?

When since? 2-4 times per day more frequently (NMD)

06/02/08 @ 13:31:15 - 13:34 Every login

06/02/08 @ 14:48:33 - 14:51:28

When in the After clicking the "Login" button Trying to load the login page

life cycle?

EXTENTHow many objects? All users on all machines Only some users, all users on some

machines

Does using a consistent format help?

Opportunities

— CSI register template

— Doing right things as well as doing things right

— Hubbard on measurement

— How many things can you list that you could measure to establish that an IT change succeeded?

— (measurement leading to improvement opportunities)

— Listing assumptions about the organisation

References

— Douglas Hubbard, How to Measure Anything

— ITIL practitioner guidance

— The Lean toolbox, John Bicheno

— New Rational Manager, Kepner & Tregoe (free ecopyfrom [email protected])

— Scheinkopf, Lisa J. Thinking for a change : Putting the TOC thinking processes to use

— The Phoenix project, Gene Kim & Kevin Behr

DevOps and Agile in an ITSM World

Dave van Herpen

Claire Agutter

Agenda

Why: Why are you here? Business and IT drivers The value of change

What Perceptions of DevOps and ITIL The 3 ways

How: Kanban, Scrum and Ops Selling DevOps: identifying opportunities &

risks in your business

About Me

15+ years in IT service management

Roles include help desk, change management, project management, service management implementation, consultancy and training

Lead tutor and director of ITSM Zone since 2007

Interested in anything that helps IT work better

About Me

• Established in 1974

• Sogeti Netherlands• Lead Consultant Enterprise Agility & DevOps• Coach, Trainer, Change Agent, Practitioner

• Expertise:• Agile ITSM & DevOps• Sourcing & SIAM

• Certified: ITIL, ASL, BiSL, Prince2, ISO20000, Lean, Agile, Scrum, Kanban, SAFe

Why are you Here?

What issues are you looking to address?

Today’s backlog

What is Agile?

124

ScrumXP DSDM FDD

TDD

Kanban SAFe

Customer involvement

Incremental value

Fast learning

DevOps??

“…rather than being a market per se, DevOps is a philosophy, a cultural shift that merges operations with development and

demands a linked toolchain of technologies to facilitate collaborative change” Gartner

“…a cultural and professional movement that stresses communication, collaboration and integration between software

developers and IT operations professionals”DevOps Institute

“…an organizational mindset for continuously improving valuefrom the digital value chain by enabling cross-functionalcollaboration on process, technology and behavior level”

Dave van Herpen

Business and IT Drivers

What’s driving the adoption of DevOpsand Agile ways of working?

The value of DevOps

END SILO THINKING& BUDGETING

REDUCE REWORK& DELAY

RELIABLE, FREQUENT & TRANSPARENT

DEPLOYMENTS

CLEAR OWNERSHIP &MATCHING WOW TO

VOLATILE MARKETCustomer Satisfaction

Optimal value & risk

Short TTM

Efficient operations

Business driven

Feedback loops

Fast flow

Multidiscipl.teams

Generic business driver How DevOps helps Value

128

1) Business value drivenAgile

Developmentfixes this

Lean Startupfixes this

DevOps Litefixes this

DevOps creates end-to-end Agility and Value creation.

2) Feedback loops

129

3) Fast flow

130

4) Multidisciplinary teams

131

Related themes/methods

DevOps

Agile

Lean

TOC

Cloud

CD

ITIL

Perceptions: ITIL

Is it:

Bureaucratic?

Negative?

Yesterday’s news?

Process driven?

Perceptions: ITIL

Or….

How IT is ‘done’

Contractually required

Millions of certified professionals

Common language

DevOps and ITIL together

Strategy

Design

Transition

Operation

Improvement

Sluggish Organisations

Processes evolve over time

Errors lead to an increased desire for control

Metrics become meaningless

Process vision is lost

Perceptions: DevOps

Is it:

JFDI?

Tech driven?

Dangerous?

Wild west?

Perceptions: DevOps

Or…..

Exciting

Attractive

The future

The First Way: Flow

Understand the flow of work

Always seek to increase flow

Never knowingly pass a defect downstream

The Second Way: Feedback

Understand and respond to the needs of all customers – both internal and external

Shorten and amplify all feedback loops

Emphasize right to left feedback

The Third Way: Continual Experimentation and Learning

Allocate time for the improvement of daily work

Create rituals that reward the team for taking risks

Introduce faults into the system to increase resilience

Keep CALMS and DevOps

Culture Automation

Metrics Sharing

Lean

Time for a Break...

Next up:

Techniques for DevOps and Agile

Kanban for ITSM

►“Visual card”

► Toyota (TPS)

► Limit inventory & WIP

►Excess inventory = waste

► Time spent on excessive activities = waste

Kanban for ITSM

Foundation:

►Start with your existing process

►Respect current roles and responsibilities

►Strive for continuous improvement

►Everyone is a leader

Process principles:

►Visualize the workflow

► Limit WIP

►Pull work from left to right

►Monitor, adapt, improve

Scrum for ITSM 3 roles

Product Owner

Scrum Master

Team Member

4 ceremonies

Sprint planning

Daily scrum

Sprint demo

Retrospective

4 deliverables

○ Product Backlog

○ Sprint Backlog

○ Burndown Chart

○ Potentially Shippable Product

Select your challenge

1. Design a Kanban board foran IT service team

2. How could you apply Scrum to ITSM (e.g. service planning, evaluation, CSI)

3. Which information/ practiceswould you bring from yoursupport/ops towards dev?


Process = consistent way of doing repeatable tasks

Ideal for automation


Process = free time to focus on the complex stuff

Process = streamlined decisions

Agile ITSM

Traditional ITSM rollout methods don’t always work well

Apply Agile principles to ITSM design

Allow faster feedback

Get better at process integration

Agile ITSM: Change

Go back to first principles

Leverage automation

Examine the desired rate of change

Adapt change authorization, documentation etc.

Agile principles & ITSM

ITIL® Practitioner’s 9 Guiding Principles

Agile ITSM Manifesto

Selling DevOps

In groups of 4, identify potential risks (impediments) & opportunities when adopting DevOps in your organisation

Recommended reading:

– The Phoenix Project

– The Goal

– Principles of Product Development Flow

– Lean Startup

Contact details

The End

Contact Details [email protected]

Twitter: @ClaireAgutter

Linkedin: Claire Agutter

Facebook: nope

[email protected]

Twitter: @daveherpen

Linkedin: davevanherpen

Facebook: dave.vanherpen

mailto:[email protected]

mailto:[email protected]