design and implementation of new itil service desk for ... · design and implementation of new itil...

Design and implementation of new ITIL Service Desk for insurance

companies

Anel Tanovic*, Asmir Butkovic **, Fahrudin Orucevic***, Nikos Mastorakis****

* American University in Bosnia and Herzegovina

Mije Kerosevica Guje 3, Tuzla 75000, Bosnia and Herzegovina

** College of Computer Science and Business Communications eMPIRICA

Bulevar mira bb, Brcko District 76100 Bosnia and Herzegovina

*** Faculty of Electrical Engineering

Zmaja od Bosne bb, Sarajevo 71000, Bosnia and Herzegovina

**** Technical University of Sofia

St.Kliment Ohridski Boulevard, Sofia 1756, Bulgaria

[email protected], [email protected], [email protected], [email protected]

Abstract: - Insurance companies are today faced with the challenge of solving of increasing number of user's

incidents, problems and requests. These companies are introducing and producing new IT services which are

delivered to users every month. All today's insurance companies have some Customer Relationship

Management (CRM) tools which are responsible for solving all these tasks. But the problem is variety of all

these tools which are producing positive results in some departments and not so positive results in some other

departments. The only solution for all insurance companies is to introduce Service Desk solutions which are

based on IT Service Management (ITSM) 'best practises'. This paper describes Service Desk solution for

insurance companies that was developed on Sarajevo School of Science and Technology (SSST) University in

Sarajevo. The aim of the paper is to analyze results after the implementation of Service Desk solution in one

insurance company in Bosnia and Herzegovina and to compare these results with results that are achieved

before the implementation of Service Desk solution. The new developed Service Desk solution contains 6

ITSM processes: Supplier Management, Change Management, Event Management, Incident Management,

Request Fulfillment and Problem Management.

Key-Words: - ITSM, Service Desk, Supplier Management, Change Management, Event Management, Incident

Management, Request Fulfillment, Problem Management.

1 Introduction Information Technology Infrastructure Library

(ITIL) is the most popular framework for the

management of IT services. It consists of five

phases and 26 processes. Service Desk solution

which is presented in this paper contains these 6

processes: Supplier Management [1], Change

Management [2], Event Management [3], Incident

Management [3], Request Fulfillment [3] and

Problem Management [3]. All these processes are

integrated in single software solution which is

customized for insurance companies.

Supplier Management is responsible for the

definition of new supplier and contract

requirements, identification of business needs,

evaluation of new suppliers and contracts,

categorization of suppliers and contracts,

establishment of new suppliers and contracts and for

the management of new suppliers, contracts and

performances [1]. Change Management process is

responsible for planning and controlling changes,

scheduling changes and releases, making change

decisions and authorization of the change, ensuring

that remediation plans are in place, understanding

the impact of the change and continual improvement

[2]. Event Management process is responsible for

the detection, notification, categorization,

prioritetization of events, response selection and for

forwarding of events to incidents, service requests

and problems [3]. Incident Management process is

responsible for the detection, notification,

categorization, prioritetization of incidents, initial

diagnosis and incident escalation, investigation,

resolution and recovery [6]. Request Fulfillment is

process responsible for the detection, notification,

cathegorization, prioritetization of user requests,

requests view and request model execution [3].

Problem Management is process responsible for the

detection, notification, categorization,

prioritetization of problems, problems investigation

and diagnosis, raising a known error record,

problem resolution and major problem review [3].

Recent Researches in Electrical Engineering

ISBN: 978-960-474-392-6 215

Service Desk solution is implemented by using

web server Apache, PHP programming language

and MySQL database. It contains 12 sections which

include: registration of new contracts and suppliers,

monitoring of all contracts and suppliers, detecting

and loging of new changes, monitoring of all

exisisting changes, loging of new events, monitoring

of all existing events, loging of new incidents,

monitoring of all existing incidents, loging of new

user requests, monitoring of all existing user

requests, loging of new problems and monitoring of

all existing problems [4], [5].

The scientific contribution of this paper is a new

developed model of Service Desk that can be

implemented in any business environment. The new

developed model of Service Desk integrates 6 main

ITSM processes in one solution that can be

converted for the usage in any other business

environment [7]. The professional contribution of

this paper is new Service Desk solution that can be

immediatelly implemented in any insurance

company.

Previous researches in this field [8], [9] have

showed the implementation of ITIL processes in

business environment of Telecom operator. In these

researches are also taken some other ITSM

frameworks and standards like: PRINCE2, CobiT,

eTOM, ISO/IEC 20000 and ISO/IEC 27001.

Section 2. describes organization model for the

insurance company, data model and business

processes. Section 3. of the paper describes the

implementation of all business processes which are

the part of new builded Service Desk solution.

Section 4. of the paper describes measurements for

all processes after the implementation of new

Service Desk solution and the comparison with

measurements for all processes before the

implementation of new Service Desk solution.

Section 5. is the conclusion of the paper in which

are described advantages of new Service Desk

solution and its usage in insurance companies.

2 Organization model for the

Insurance company Insurance company in Bosnia and Herzegovina

in which is implemented new Service Desk contains

these seven organization units:

IT & Technical Support - The development

team improves upon the existing system the

company uses and also develops some

inhouse solutions. The technical support

team runs, maintains the system and offers

support to all its users.

Development & Marketing - Is focused on

watching out for future prospects, ideas and

solutions and innovations. The marketing

team focuses on managing the marketing of

the company through different media.

Car Insurance Sales - This department is

responsible for bringing in new clients,

collaborating with external agents and

introducing new business partners in

regards to mandatory car insurance.

Voluntary Insurance Sales - This

department is focused on the same as the car

insurance sales department but is

responsible for all other types of insurance

like home insurance from fire, theft, life

insurance, travel insurance and other.

Economics and Finance - This department

manages the finances across the entire

company, managing budget, payouts of

claims and more.

General & Legal - This department takes

care of all legal aspects of the company,

from verifying marketing campaigns to be

within regulations, to handling suing, to

bringing in experts for the verification and

legal proving of cases before court.

Claims - Processing of all filed claims and

cooperating with other departments based

on the requirements of each case to

successfully resolve and pay out the claim.

The Entity Relationship Diagram from figure 1.

shows the core database and relationships between

the tables which will support the main business

processes of the company. This includes policies,

claims and descriptional data about entities. It

reflects the business processes on a modular level

where bridge entities show how the data relates to

each other and how the process flows. The one of

main entities in this ERD is Agent. It is very

important entity because it connects almost all other

entities and does big part of the job. It is connected

to two other entities - Address and Customer, the

bridge entity is Customer agent between Customer

and Agent. Customer Entity is another very

important entity. It is important because it may be

the largest one, and issues all the customers. It is

connected to Address entity, Policy holder and

Customer agent. Policy is also important entity. It is

connected to all policy related entities - Policy

holder, Auto policy, Property policy and Policy

payment. Another more important entity is Car

entity. It is connected to Auto policy via bridge

entity Covers car, once again because of many to

many relationship.


ISBN: 978-960-474-392-6 216

Figure 2. shows use case diagram which shows

how an insurance company operates in an abstracted

form. On the left hand side we can notice the

customer which can have two scenarios. First, the

customer can come and request (or buy) an

insurance policy where the agent verifies and enters

the data into the database and after payment issues

the insurance policy (car, life, property or any other

type). The second scenario is where the user files for

a claim. The claim is then processed, approved or

disapproved and finally paid out and notifies the

customer.

3 Implementation of business

processes for the Service Desk solution Realized Service Desk contains 23 modules

which are divided in six categories which include

six different realized processes: Event Management,

Incident Management, Request Fulfillment, Problem

Management, Change Management and Supplier

Management. All these modules are responsible for

monitoring of existing events and for submiting new

events which are divided in five different categories:

incidents, requests, problems, changes and suppliers

[8]. There are four different type of users which

include: end user-agent, admin, super admin and

manager. When we log in with regular Agent profile

there is the main page which is shown on figure 3. On this page we can see which options admin

can use. Beneath those options there is counter that

counts how many unresolved events, Incidents and

problem there are. From the main page, as you can

see we can go where we intend to (figure 4.). First,

we will go to events page in order to explain Event

Management [9].

There you can clearly see all the events currently

in the base. Besides ID and title, they all have start

date, deadline, number of action and description.

Also there is status which, logically, represents

status of the event, and priority for issuing. Besides

the table, there are also actions row with which

authorized personnel can edit the event (figure 5.).

By using this form, each user can submit different

kind of events which include: incidents, requests

and problems and specify who is responsible for

solving all of them. From agents these messages are

forwarded to administrators which are responsible

for solving all of them.

Incident Management, Request Fulfillment and

Problem Management have almost the same forms.

Change Management uses a similar form as the

other management systems, but it relies on different

user permissions where the manager can issue

requests for new changes where the administrator

can view them and after solving and implementing

the new changes can be marked as resolved. Managers are only roles who are responsible for

creating new changes. Changes are than solved by

super administrators and administrators. Changes

can be seen even from agents but they are not

responsible for solving them. Admin user can see Change Management, and

this is what they see. There, they can see changes,

with all data connected to it. Once more, they can

edit and delete the field - change. Only this time

there is no plus sign for adding changes. Figure 6.

shows monitoring of changes for the Change

Management process and figure 7. shows submiting

new changes for this process.

There, in spreadsheet Admin can see all the data

related to supplier. Also, admin can manage it but

cannot add (there is no standard plus sign for

addition). One more important thing here is that

Admin can only see data related to him (Agent field

carries his name). Besides that, this is more or less

standard table in our system, containing all the same

colours, sorting features and actions [10]. Super

admin can access the Supplier Management too but

he can not submit a new supplier without the

permission of manager.

Supplier Management is basically same as

Change Management, except that it contains

different data. SuperAdmin there can see all the

dates, actions description as same as statuses of

suppliers. Figure 9. shows the process of submitting

new suppliers. This form is also responsible for

adding new contracts with suppliers and for

monitoring all these different contracts. The module

for monitoring all contracts is very important

because of the evaluation of all contracts and

making decisions about future choosing of contracts

[10]. The module for submitting new suppliers

clearly mark what is the deadline for entire finishing

of some project and which super admin is

responsible for the maintenance of the same.

4 Measurement of implemented

processes Tables I. to VI. show measurements for six

different processes before the implementation of

Service Desk solution. Table I. shows results of the

implementation for Supplier Management process,

table II. for Change Management process, table III.

for Event Management process, table IV. for

Incident Management process, table V. for Request

Fulfillment process and finally table VI. for Problem

Management process. The time duration for the

measurement of all these key performance

indicators was 3 months.


ISBN: 978-960-474-392-6 217

Table VII. shows results of the implementation

of key performance indicators (KPIs) for all six

processes before the implementation of ITIL Service

Desk solution. Supplier Management has achieved

59.20% of successful implementation of all KPIs,

Change Management has achieved 66.20% of

successful implementation of all KPIs, Event

Management has achieved 75.40% of successful

implementation of all KPIs, Incident Management

has achieved 73.20% of successful implementation

of all KPIs, Request Fulfillment has achieved

79.80% of successful implementation of all KPIs

and Problem Management has achieved 75.80% of

successful implementation of all KPIs [9].

Tables VIII. to XIII. show measurements for six

different processes after the implementation of

Service Desk solution. Table VIII. shows results of

the implementation for Supplier Management

process, table IX. for Change Management process,

table X. for Event Management process, table XI.

for Incident Management process, table XII. for

Request Fulfillment process and finally table XIII.

for Problem Management process. All these

measurements are constantly taken in time period of

six months after the implementation of Service Desk

solution.

Table XIV. shows results of the implementation

of key performance indicators (KPIs) for all six

processes after the implementation of ITIL Service

Desk solution. Supplier Management has achieved

73.40% of successful implementation of all KPIs,

Change Management has achieved 82.80% of

successful implementation of all KPIs, Event

Management has achieved 86.00% of successful

implementation of all KPIs, Incident Management

has achieved 87.80% of successful implementation

of all KPIs, Request Fulfillment has achieved

86.80% of successful implementation of all KPIs

and Problem Management has achieved 88.80% of

successful implementation of all KPIs [9].

5 Conclusion This paper has showed the process of introducing

Service Desk solution based on ITIL principles in

business environment of one insurance company.

During the process of implementation of Service

Desk solution, the study connected to the

comparative analysis about differences in successful

implementation of business processes before and

after the implementation of Service Desk was also

finished. Six business processes are taken into the

consideration: management of suppliers and

contracts (Supplier Management), management of

changes from management or from production

(Change Management), management of all different

events (Event Management), managements of

incidents (Incident Management), management of

user requests (Request Fulfillment) and

management of problems (Problem Management).

Measurements have showed that each of these

six processes have achieved a better result of the

implementation after the implementation of ITIL

processes by using Service Desk solution. All six

ITIL processes followed their key activities that

were implemented by Service Desk which is used

now in all layers of this insurance company. This

study has clearly showed that it is worth to investate

in the realization of ITSM processes because of the

increasing of all important parameters of metric

which are important for users, stakeholders,

managers and suppliers.

Results show that Supplier Management process

has achieved a better result of the implementation

for 14.20% after the implementation of Service

Desk. This improvement has been underlined at

these key performance indicators: the number of

suppliers meeting the targets within the contract and

the number of suppliers with nominated supplier

managers. Results show that Change Management

process has achieved a better result of the

implementation for 16.60% after the implementation

of Service Desk. This improvement has been

underlined at these key performance indicators: the

percentage of reduction in the number of incidents

attributed to changes and the percentage of

reduction in the number of changes with incomplete

impact assessments. Results show that Event

Management process has achieved a better result of

the implementation for 10.60% after the

implementation of Service Desk. This improvement

has been underlined at these key performance

indicators: the number of incidents that occurred

and which are triggered without a corresponding

event and the percentage of events compared with

the number of incidents.

Results show that Incident Management process

has achieved a better result of the implementation

for 14.60% after the implementation of Service

Desk. This improvement has been underlined at

these key performance indicators: the percentage of

incidents solved remotely without the need for a

visit and the average number of service desk calls

during one day. Results show that Request

Fulfillment process has achieved a better result of

the implementation for 7.00% after the

implementation of Service Desk. This improvement

has been underlined at these key performance

indicators: the percentage of service requests closed

by the service desk without reference to other levels

of support and the percentage of service requests


ISBN: 978-960-474-392-6 218

solved remotely without the need for a visit. Results

show that Problem Management process has

achieved a better result of the implementation for

13.00% after the implementation of Service Desk.

This improvement has been underlined at these key

performance indicators: the percentage of problems

solved remotely without the need for a visit and the

average number of service desk calls during one

day. Figure 10. shows improvements for all six

processes after the implementation of Service Desk

solution.

References: [1] S.Taylor, V. Lloyd, and C. Rudd, “ITIL 2011 -

Service Design”, Cabinet Office, July 2011.

[2] S.Taylor, S. Lacy, and I. Macfarlane, “ITIL 2011 -

Service Transition”, Cabinet Office, July 2011.

[3] S.Taylor, D. Cannon, and D. Wheeldon, “ITIL 2011

- Service Operation”, Cabinet Office, July 2011.

[4] A. Keller and T. Midboe, “Implementing a Service

Desk: A practioner’s perspective”, IEEE Network

Operations and Management Symposium (NOMS

2010), pp. 685-696, April 2010.

[5] M. Jantti, “Exploring Self-Service Support Methods

in IT Service Management”, 10th International

Conference on Service Systems and Service

Management (ICSSSM’13), pp. 179-184, July 2013.

[6] M. Jantti, “Defining Requirements for an Incident

Management System: A Case Study”, 4th

International Conference on Systems (ICONS’09),

pp. 184-189, March 2009.

[7] Z. Jang, “Research and design of digital Campus

Operation & Maintenance Center (O&M) center

based on ITIL”, International Conference on

Computer Application and System Modeling

(ICCASM 2010), volume 5, pp. 598-601, October

2010.

[8] A. Tanovic and F. Orucevic, “Proposal of the

improvement of actual ITIL version based on

comparative IT Service Management methodologies

and standards – Previous research and research

methodology”, Recent Advances in Automatic

Control, Information and Communications, pp. 240-

249, August 2013.

[9] A. Tanovic and F. Orucevic, “Proposal of the

improvement of actual ITIL version based on

comparative IT Service Management methodologies

and standards – The improved model of ITIL 2011

framework”, Recent Advances in Automatic Control,

Information and Communications, pp. 280-286,

August 2013.

[10] M. Jansen, “What does IT Service Management look

like in the cloud ? – An ITIL based approach”,

Recent Advances in Computers, Communications,

Applied Social Science and Mathematics, pp. 87-92,

September 2011.


ISBN: 978-960-474-392-6 219

Figure 1. Entity Relationship Diagram for Service Desk of insurance company

Figure 2. Use case diagram for Service Desk of insurance company


ISBN: 978-960-474-392-6 220

Figure 3. Main page

Figure 4. Event Management – Monitoring of events


ISBN: 978-960-474-392-6 221

Figure 5. Event Management – Submitting new events

Figure 6. Change Management – Monitoring of changes


ISBN: 978-960-474-392-6 222

Figure 7. Change Management – Submitting new changes

Figure 8. Supplier Management – Monitoring of suppliers


ISBN: 978-960-474-392-6 223

Figure 9. Supplier Management – Submitting new suppliers

Figure 10. Improvement of ITSM processes after the implementation of Service Desk solution

TABLE I. MEASUREMENTS FOR SUPPLIER MANAGEMENT PROCESS

Key performance

indicator for Supplier

Management process

The measured value of

key performance

indicator

The value of critical

success factor

The percentage of

the successful

implemented key

performance

indicators

The number of suppliers

meeting the targets within

the contract

6

10

60%

The number of service

and contractual reviews

held with suppliers

10

16

63%


breaches caused by

6

4

50%


ISBN: 978-960-474-392-6 224

suppliers


with nominated supplier

managers

4

8

50%

The number of contracts

with nominated contract

managers

11

15

73%

TABLE II. MEASUREMENTS FOR CHANGE MANAGEMENT PROCESS

Key performance

indicator for Change

Management process


key performance

indicator


success factor

The percentage of

the successful

implemented key

performance

indicators

The percentage of

changes that meet the

customer's agreed

requirements

70%

95%

74%

The percentage of

reduction in the number

of incidents attributed to

changes

18%

30%

60%

The percentage of


of unauthorized changes

identified

17%

25%

68%

The percentage of


of changes with

incomplete change

specifications

16%

25%

64%

The percentage of


of changes with

incomplete impact

assessments

11%

17%

65%

TABLE III. MEASUREMENTS FOR EVENT MANAGEMENT PROCESS

Key performance

indicator for Event

Management process


key performance

indicator


success factor

The percentage of

the successful

implemented key

performance

indicators

The number of incidents

that occurred and which

are triggered without a

corresponding event

19

26

73%

The percentage of events

compared with the

number of incidents

54%

75%

72%


caused by existing

problems or known errors

66%

85%

78%


that resulted in incidents

or changes

69%

90%

77%


indicating performance

68%

88%

77%


ISBN: 978-960-474-392-6 225

issues

TABLE IV. MEASUREMENTS FOR INCIDENT MANAGEMENT PROCESS

Key performance

indicator for Incident

Management process


key performance

indicator


success factor

The percentage of

the successful

implemented key

performance

indicators

The percentage of

incidents closed by the

service desk without

reference to other levels

of support

67%

82%

82%

The percentage of

incidents solved remotely

without the need for a

visit

40%

55%

73%

The maximum allowed

time for solving every

type of incident

32 hours

24 hours

67%

The average number of

service desk calls during

one day

156

120

70%

The percentage of

incidents handled within

agreed response time

74%

100%

74%

TABLE V. MEASUREMENTS FOR REQUEST FULFILLMENT PROCESS

Key performance

indicator for Request

Fulfillment process


key performance

indicator


success factor

The percentage of

the successful

implemented key

performance

indicators

The percentage of service

requests which are

completed in agreed

target times

71%

85%

84%


requests closed by the



of support

68%

92%

74%


requests solved remotely


visit

45%

60%

75%

The percentage of the

total number of calls on

Service Desk connected

to service requests

35%

30%

83%

The percentage of

problems handled within


83%

100%

83%


ISBN: 978-960-474-392-6 226

TABLE VI. MEASUREMENTS FOR PROBLEM MANAGEMENT PROCESS

Key performance

indicator for Problem

Management process


key performance

indicator


success factor

The percentage of

the successful

implemented key

performance

indicators

The percentage of

problems closed by the



of support

73%

85%

86%

The percentage of

problems solved remotely


visit

39%

55%

71%

The maximum allowed


type of problem

8 days

10 days

80%



one day

14

10

60%

The percentage of



82%

100%

82%

TABLE VII. THE RESULTS OF THE IMPLEMENTATION OF ITIL PROCESSES BEFORE THE IMPLEMENTATION OF ITIL SERVICE DESK

ITIL process name The result of implementation

for each ITIL process

Supplier Management 59.20%

Change Management 66.20%

Event Management 75.40%

Incident Management 73.20%

Request Fulfillment 79.80%

Problem Management 75.80%

TABLE VIII. MEASUREMENTS FOR SUPPLIER MANAGEMENT PROCESS

Key performance

indicator for Supplier

Management process


key performance

indicator


success factor

The percentage of

the successful

implemented key

performance

indicators


meeting the targets within

the contract

8

10

80%


and contractual reviews

held with suppliers

12

16

75%


breaches caused by

suppliers

6

4

50%


with nominated supplier

managers

6

8

75%

The number of contracts

with nominated contract

managers

13

15

87%


ISBN: 978-960-474-392-6 227

TABLE IX. MEASUREMENTS FOR CHANGE MANAGEMENT PROCESS

Key performance

indicator for Change

Management process


key performance

indicator


success factor

The percentage of

the successful

implemented key

performance

indicators

The percentage of

changes that meet the

customer's agreed

requirements

79%

95%

83%

The percentage of


of incidents attributed to

changes

25%

30%

83%

The percentage of


of unauthorized changes

identified

21%

25%

84%

The percentage of


of changes with

incomplete change

specifications

19%

25%

76%

The percentage of


of changes with

incomplete impact

assessments

15%

17%

88%

TABLE X. MEASUREMENTS FOR EVENT MANAGEMENT PROCESS

Key performance

indicator for Event

Management process


key performance

indicator


success factor

The percentage of

the successful

implemented key

performance

indicators

The number of incidents

that occurred and which

are triggered without a

corresponding event

22

26

85%


compared with the

number of incidents

65%

75%

87%


caused by existing

problems or known errors

74%

85%

87%


that resulted in incidents

or changes

77%

90%

86%


indicating performance

issues

75%

88%

85%


ISBN: 978-960-474-392-6 228

TABLE XI. MEASUREMENTS FOR INCIDENT MANAGEMENT PROCESS

Key performance

indicator for Incident

Management process


key performance

indicator


success factor

The percentage of

the successful

implemented key

performance

indicators

The percentage of

incidents closed by the



of support

74%

82%

90%

The percentage of

incidents solved remotely


visit

51%

55%

93%

The maximum allowed


type of incident

28 hours

24 hours

83%



one day

138

120

85%

The percentage of

incidents handled within


88%

100%

88%

TABLE XII. MEASUREMENTS FOR REQUEST FULFILLMENT PROCESS

Key performance

indicator for Request

Fulfillment process


key performance

indicator


success factor

The percentage of

the successful

implemented key

performance

indicators


requests which are

completed in agreed

target times

79%

85%

93%


requests closed by the



of support

77%

92%

84%


requests solved remotely


visit

56%

60%

93%

The percentage of the

total number of calls on

Service Desk connected

to service requests

39%

30%

70%

The percentage of



94%

100%

94%


ISBN: 978-960-474-392-6 229

TABLE XIII. MEASUREMENTS FOR PROBLEM MANAGEMENT PROCESS

Key performance

indicator for Problem

Management process


key performance

indicator


success factor

The percentage of

the successful

implemented key

performance

indicators

The percentage of

problems closed by the



of support

82%

85%

96%

The percentage of

problems solved remotely


visit

48%

55%

87%

The maximum allowed


type of problem

9 days

10 days

90%



one day

12

10

80%

The percentage of



91%

100%

91%

TABLE XIV. THE RESULTS OF THE IMPLEMENTATION OF ITIL PROCESSES AFTER THE IMPLEMENTATION OF ITIL SERVICE DESK

ITIL process name The result of implementation

for each ITIL process

Supplier Management 73.40%

Change Management 82.80%

Event Management 86.00%

Incident Management 87.80%

Request Fulfillment 86.80%

Problem Management 88.80%


ISBN: 978-960-474-392-6 230

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