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IT4IT Awareness

The innovation engine in a digitized world —operating model for the ‘new style of IT’

Agenda - IT4IT Emerging Standard for IT Service Management

2

• Introduction to IT4IT

– Why IT4IT was Developed

– Who Develop IT4IT

– What IT4IT Addresses and

Solves

– Where IT4IT is most needed

– How IT4IT will impact the

industry

• Business and IT Value Chains

• IT4IT Reference Architecture

• IT4IT Value Chain

• The four IT Value Streams

• The IT4IT vision is a vendor-neutral Reference Architecture for managing the business of IT.

• The mission of The Open Group IT4IT Forum is to develop, evolve and drive the adoption of the

IT4IT Reference Architecture.

• IT4IT standards and publications professionalize IT to work across silos and prepare for emerging

enterprise IT industry trends in a better, faster, lower cost way and with les risk.

• The IT4IT Reference Architecture provides prescriptive guidance to design, procure and implement

the functionality needed to run IT. The end-to-end, ‘how-to’ emphasis of the IT Value Chain and

IT4IT Reference Architecture also enables the state of services that IT delivers to be systematically

tracked across the service lifecycle.

3

The Open Group IT4IT open standard

• The Open Group is a leading open standard body, with a specialty in architecture for IT, best known for

TOGAF and UNIX. Platinum members are industry giants like IBM, HP, Oracle, Cap Gemini, Phillips, etc.

• The Open Group follows a well-established, open and consensus-driven process where members at all

levels contribute during “open comment” periods. New standards are designed, iterated and approved by

real-world working IT professionals

• Founding members of the IT4IT Forum include Shell, AT&T, Accenture, HP, and many others

• Members participate in The Open Group through highly influential Forums and Work Groups that address a

comprehensive range of technical, business, legal and regulatory issues.

• Each Open Group Forum and Work Group focuses on a specific area, and provides an objective and legal

environment where members collaborate on developing standards, certifications and best practices in

their areas of interest and expertise.

4

The Open Group IT4IT Forum

http://opengroup.org/getinvolved/becomeamember/forums

Driven by customer use cases from a diverse membership:Shell, AT&T, HP, PwC, Accenture, Achmea, Munich RE, Microsoft, IBM, CapGemini,Tata Consultancy Services, Atos, BP Oil, ExxonMobil, Huawei Technologies,Oracle, Origin Energy, Philips, Raytheon, Logicalis, Architecting-the-Enterprise, UMBRio, and more

www.opengroup.org/it4it

A new operating model to manage the business of IT

Why was the IT4IT forum created?

• History of every new initiative reinventing IT foundations

• Issues are universal to IT – independent of industry, dev style, tools

What are its goals?

• End-to-end business service lifecycle for existing/future paradigms

• Become an IT industry standard architecture framework

How will it deliver value?

• Broad integration to deliver higher value than silos

• Architectural foundation for process models like ITIL and COBIT

5

Knowledge needed for strategies, services, processes, requests, incidents

The Open Group IT4IT emerging open standard

http://www.opengroup.org/it4it

Market influences drivingthe need for IT4IT

Building a durable IT operating model that survives

“the next big market trend ”

Are you ready for the new style of IT?

Craftsmanship Industrialization Digitalization

Focus Technology IT Processes Business models

Capabilities Resource mgmt Svc Management Digital business

Engagement Isolated; disengaged

internally & externally

Colleagues as customers;

disengaged w/ external

customers

Colleagues as

partners; engagement

w/ external customers

Outcomes Opportunistic automation;

frequent issues

Services and solutions;

efficiency & effectiveness

Digital business

innovation; new types

of value

IT is here today

Source: Gartner Taming the Digital Dragon: the 2014 CIO Agenda

7

Second MAJOR transformation: To digital business innovation focus

Gartner: A New Era for Enterprise IT

Service

centric

Changing how things get doneIT is a strategic control point for digital business innovation

IT as a cost

center

IT as a Service

IT as a

digital business

innovation center

8

Focus: help business use IT

Focus: promote business innovation through IT

Focus: control costs

Digital business transformation is happening now. How?

and it is driving IT transformation

9

When I want the time, I don’t use a watch …

When I read the news, I don’t get a newspaper …

When I need a boarding pass, I don’t print a hardcopy …

When I want to know the artist of a song, I don’t look at the record label …

When I need something, I use an app.

Digital business transformation is happening now

of businesses expect to be digital in 24 months

50%of information is in the form of what’s called machine data

90%

reduction in cost for business operations driven by smart machines by 2018

30%Mobile Apps

10 M

and it is driving IT transformation

10

Software IS the Product

Software IS the Innovation Engine

Software IS the Differentiation Engine

What does Digitization mean for IT?

11

Software DefinedAnything

© Copyright 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

The App store is movingTo the Enterprise

Software used to move from Enterprise to User …Now, software is moving from User to Enterprise

“We are a software company with planes”

Right

serviceRight

time

Right

cost

Value

IT must re-orient to a value-centric cultureValue must be articulated in business terms – think service not project

12

It is a race to develop thebest software solution

A historical industry perspective

JOURNEY (1-5 Years)

Traditional IT

• Process automation, Run the business

• Drive efficiencies (cost optimization)

• Systems of Record

New Style of IT

• TTV for Business Innovation (outcomes)

• Life cycle mgmt defined in apps, services, knowledge

• Systems of Engagement & Insight

Process Centric

Service Centric

Insight Centric

Most

are

hereBusiness insight

into services requires a data-

driven service life cycle model

13

A service lifecycle model that is focused on providing the right data at the right time to the right people

Journey towards the New Style of IT…

Existing burning platforms

Improve efficiency on secure core AND Support rapid business innovation

“More than 70% won’t make it”

Shadow IT and technology deficit

82% of employees use one or

more non-approved SaaS applications to do

their jobs

85% of Lines of Business have adopted non IT approved business

applications

35% of the technology

spending will be outside of the control of IT by

2015

Do more with less

38% of the Line of Business decision-makers turn to “shadow IT” because IT

is “too slow or cumbersome” © Copyright 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

The New Style of IT is a variable speed innovation engine

Mode 1Mode 2

Continuous innovation

Experimentation

Consumer sourcing driven

Fast

Industrial strength design

Provider Project driven

Efficient

Reliable execution

Bimodal IT

Fluid approach dealing with the pace of

digital business

Maintaining the rock-solid foundation for

business executionGartner calls it

Bimodal IT

“Core” IT“Fluid” IT

15

Core ITFluid IT

Greater agility

Businessoutcome-centric

New workloads, apps,and experiences

Shorter cycle times

IT outcome-centric

Conventional workloads & apps

Longer cycle times

Cost optimization

Fluid approach capable of dealing with

the pace of digital business

Maintaining the rock-solid foundation for

business execution

Bimodal IT• Gartner’s bi-modal concept describes

“what” IT does but it doesn’t describe “how”

• IT4IT is a framework that describes HOW

the IT function works

• IT4IT provides the structure to improve &

automate Core IT at scale to enable Fluid

IT

• Created by IT professionals for IT

professionals, accelerating success w/ the

New Style of IT

16

The New Style of IT is a variable speed innovation engine

However, balancing the modes requires a new operating model

18

Drive more automation in Core IT to create structure & transfer funds that support Fluid IT

Mature Core ServicesRenovate the CoreReduce Technical Debt

Embrace InnovationSupport AgilityPlan Technical Debt

Enabling and bridging the modes requires a new

Operating Model

Core ITFluid IT

Using the Core IT Operating Model for Fluid IT will NOT work

IT as a business innovator

19

Core ITFluid IT

Management of change initiativeCultural change requires strong leadership and

changes to metrics and incentives. The operating

model should reinforce the new culture

Technology accelerates culture shiftsUsing technology to expose information and promote

transparency between teams builds trust and

collaboration

1

2

3

More than labeling IT as a providerRequires behavior changes to adopt the cultural

characteristics of a provider/broker while at the same

time retaining traditional principles to control systems

that power the business core

IT is a service integrator and

service provider

Controlling end-to-end IT system

and service delivery at the

optimal cost

IT is a service developer and

service provider

Enabling continuous creation

and consumption of IT and

business services

The foundation for capitalizing on Bimodal IT

ENABLING TECHNOLOGY

STRUCTURE

Integrator

Provider

Developer

CULTURE • Collaborative, inclusive innovation

• Orient around business value

• Fast and flexible

• Consumer centric

• Risk tolerant1

• Value chain operating model

• Consumption oriented

• Process and method agnostic

• Durable and future-proof2

• Data-driven

• Service centric

• Modular, composite design

3

20

Requires transformation across three perspectives simultaneously

IT4IT - The operating model for the new style of IT

1

2

3

Culture

Structure

Technology

Collaborative, inclusive innovation

Value chain, consumption model

Service centric, federated, data insight

21

Requires three perspectives to come together

Efficiency

&

AgilityFinance & assets

Intelligence & reporting

Resource & project

Governance, risk and compliance

Sourcing & vendor

IT V

alu

e C

hain

Plan Build Deliver Run

Reference Architecture

Service-centric

IT reference architecture

for the IT Value Chain

Service

Portfolio

Component

Portfolio

Demand

Component

Proposal

Component

Policy

Component

Defect

Component

Requirement

Component

Project

Component

Test

Component

Build

Component

Service

Development

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

Architecture

Policy Requirement

Scope Agreement

IT

Project

Portfolio

Backlog

Item

Source

Conceptual

Service

Blueprint

Conceptual

Service

Logical Service

Blueprint

Test

Case

Defect

Offer

Service

Release

Service Release Blueprint

Build

Service

Catalog

Entry

Desired

Service

Model

Usage

Record

Fulfillment Request

SubscriptionChargeback

Contract

Request

Problem/Known Error

Knowledge

ItemIncident

Event

Service

Monitor

Run

Book

RFC

Actual

Service

CIs

Service

Monitoring

Comp.

Catalog

Composition

Component

Shopping

Cart

Knowledge &

Collaboration

Component

Enterprise

Architecture

Component

Service

Design

Component

Fulfillment

Execution

Comp.

Request

Rationalization

Component

Configuration

Management

Component

Release

Composition

Component

The New Style of IT leveraging the IT Value Chain

22

IT4IT Reference Architecture

Foundational concept of IT4IT: Use the value chain

http://www.opengroup.org/getinvolved/forums/IT4IT-forum

http://www.opengroup.org/getinvolved/forums/IT4IT-forum

IT4IT reference architecture defines integration framework

Efficiency

&

AgilityFinance & assets

Intelligence & reporting

Resource & project

Governance, risk and compliance

Sourcing & vendor

IT V

alu

e C

hain




23

“Information gets turned into decisions, so the data has to be good.

Good data turns into lousy data when processes take over and colors it

and that makes the decision-making difficult.”

Minor Activities

Major Activities

What’s the point of the Reference Architecture?

• Predictability

• Traceability

• Repeatability

• Process neutral, ITIL, COBIT, …

• Vendor neutral

• Future safe

• Real customer experiences

• Standardized

• Prescriptive

Value

Flexible

Guidance

Knowledge for automation

Evolution

Best practices

24

The end result is value

Why a value chain and reference architecture approach is best

Predictability, traceability, and repeatability

• Standardized integrations based on IT4IT Forum

• Agnostic to industry vertical or process modelsOpen

ITIL, COBIT, eTOM …

• Defined technology components

• Data centric service life cycle artifact integrationCanonical

Conceptual Logical Physical

• Best practice blueprint for IT architecture

• Supports value chain-based IT operating modelGuidance


25

Conceptual -> Logical -> Physical

Example: purchase made on-line

New Viewpoint – How to run and Deliver IT, continuously

The Vision: Create Integrated IT management capabilities across the entire service lifecycle



IT Value Streams

Strategy to PortfolioRequirement to Deploy

Request to FulfillDetect to Correct

Traditional IT Value Chain

NEW

27

Getting there requires change to some IT fundamentals

TRADITIONAL IT – Technology centric NEW STYLE IT – Service centric

Role = Designer/Provider

Deliverables = COMPLEX SYSTEMS

Project Lifecycle/Portfolio centered

Delivery oriented organization

80:20 – Projects:Svcs

Role = Provider/Broker

Deliverables = SERVICES & GOODS

Service Model/Portfolio centered

Consumption/Delivery balanced

20:80 – Projects:Svcs


28

• Conceptual Service Model: provides the business context for the service (utility) and

the high-level architectural activities (warranty).

• Logical Service Model: provides detailed requirements for the service and its

components; it describes all the service design details.

• Physical Service Model: provides the production requirements, including technology,

platform, location, configuration settings and supplier requirements

29

Service Models in the IT Value Chain

Logical

Service Model

• IT project

• Requirement

• Release

Service model artifacts tie together end-to-end relationships

The service model – assuring IT service transparency

Business Enterprise Architect

PMO UsersDevelopers Testers IT Engineer IT Operations

Conceptual

Service

Model

• Demand

• Policy

• Portfolio

Physical

Service

Model

• Event

• Incident

• Change

Request

to Fulfill

Detect

to Correct

Strategy

to Portfolio

Requirement

to Deploy

30

Determine the appropriate services

Develop service solution

Build the actual release units

Support those usingthe services

Delivering predictability, traceability, and repeatability


IT4IT™ reference architecture level 1

Strategy toPortfolio

Requirement to Deploy Request to Fulfill Detect to Correct

Enterprise Architecture Component

ServicePortfolio

Component

PortfolioDemand

Component

Proposal Component

PolicyComponent

ReleaseCompositionComponent

ProjectComponent

Source ControlComponent

ServiceDesign

Component

Requirement Component

TestComponent

DefectComponent

BuildComponent

Build PackageComponent


UsageComponent

Chargeback/Showback

Component

RequestRationalization

Component

FulfillmentExecutionComponent

OfferManagementComponent

CatalogCompositionComponent

ProblemComponent

IncidentComponent

ServiceMonitoring

Component

ChangeControl

Component

Diagnostics &Remediation

Component

ConfigurationManagement

Component

EventComponent

Service LevelComponent

ITInitiative

Source

Require-ment

Offer

ServiceCatalog

Entry

Test Case

Defect

Build EventServiceContract

BuildPackage

ServiceArchitec-

ture

Policy

ScopeAgree-ment

PortfolioBacklog

Item

UsageRecord

Fulfill-ment

Request

Subscrip-tion

Charge-back

Contract

Request

Problem/KnownError

Incident

ServiceMonitor

Run Book

RFC

ShoppingCart

ServiceRelease

Blueprint

LogicalService

Blueprint

ActualService

CIs

Con-ceptualService

Blueprint

Con-ceptualService

DesiredServiceModel

ServiceRelease

V2.0 snapshot is based upon material developed by the IT4IT™ Forum of The Open Group™

Key functional component

Service model artifact

Key data artifact

Auxiliary data artifact

Entity relationship

IT4IT™ is a trademark of The Open Group

Servicemodel

Entity relationship

Artifact

Functional component

31


IT4IT™ Strategy to Portfolio value stream level 2

V2.0 Snapshot is based upon material developed by the IT4IT™ Forum of The Open Group


32

Requirement Component

Requirement to Deploy

1:n

n:1

Portfolio

Backlog

Item

Portfolio Backlog

Item (rationalized/

Prioritized)

Competency

(availability) Assets

(availability)

Policy

Portfolio

Backlog Item

Policy

Requirement

1:n

Conceptual

Service

Blueprint

Portfolio

Backlog

Item

Conceptual

Service

Conceptual

Service

Blueprint

n:m

Project Component

IT Initiative

Scope Agreement

1:n Scope Agreement

Service Design Component

Logical Service

Blueprint1:n

Portfolio Demand

Component

Service Portfolio

Component

n:m

Business Process

Portfolio Backlog Item

:n 1Policy

Component

Proposal

Component

S2P V.2.0 May 14

th2015



IT Asset

Management

Business

Strategy

Labor

ManagementProblem Component

Problem, Known ErrorDetect to Correct

Service

Architecture

Enterprise Architecture

Component

n:m

1:1

Portfolio Backlog

Service Model

Data Artifact – Key

Record fabric Integration

Entity relationship

Functional Component - Key

Functional Component - Auxiliary

Data Artifact – Auxiliary

Engagement dataflow

Current practice

This diagram was developed/published by the IT4IT™ Forum of The Open Group ™

Supportive Function

Investment Portfolio Comp.

ITFM Supportive Function

IT Budget

n:m

n:1

Cost Modeling Component

ITFM Supportive Function

IT Cost Modeln:1


IT4IT™ Requirement to Deploy value stream level 2

Portfolio Demand Component

Strategy to Portfolio

Portfolio Backlog Item

Proposal Component

Service Portfolio Component

Policy Component

Source Control

Component

Problem Component

Detect to Correct

IT Initiative

Requirement

1:n

1:n

Source

1:n

Defect

1:n

RFC (Normal)

1:n

Service

Design

Package

Policy

Defect

Defect

1:n

n:m

RFC

n:m

Requirement Comp.

Test Case

Test Component

Incident Component

Detect to Correct


Conceptual Service

Blueprint

Project Component Change Control

Component

1:n 1:n 1:n

1:1

Scope Agreement

1:n 1:1Logical Service

Blueprint

Service

Release

Release

Package

Scope Agreement


Defect Component

Problem, Known Error

1:1

n:1

1:n

Defect

1:1

Incident

IT Project

Requirement

Defect

1:1

Service Design Comp.

R2D V.2.0 May 14

th 2015

Catalog Composition

Component

Service Catalog Entry

Request to Fulfill

Fulfillment Request

Release Package

Release

Composition Comp.


Service Catalog Entry (Unbound)

1:n

RFC

1:n

Service Release

Blueprint

Service Contract (Template)

Service Model



Entity relationship




Engagement dataflow

Current practice

This diagram was developed/published by the IT4IT™ Forum of The Open Group™

n:m

Fulfillment Execution Comp.

Desired Service

Model

Request to Fulfill

Fulfillment

Request

1:n

Build Component

Build

Build Package

Component

Build Package

n:1n:m

n:m

Service Level Component

Detect to Correct

Service Contract

1:n

n:m

1:n



33


IT4IT™ Request to Fulfill value stream level 2

Project Component

R2F V.2.0May 14

th 2015

Actual Service CIsDetect to Correct

Configuration

Management

Component

Release

Composition

Component

1:n

Service Release

Blueprint

Desired

Service

Model

Request Rationalization

Component

Usage Record

Chargeback Contract

Bill/Invoice

Service Catalog

Entry (Unbound)

Usage

Usage

Subscription

1:n

Request

Offer

Catalog

n:m

Offer

User Profile

n:m

1:1

Shopping Cart

Chargeback

Contract

n:m

Fulfillment

Request

1:n

1:n

Subscription

Service

Monitor

Offer Mgmt.

Component

Request

Knowledge

Item

Incident

Status1:n

Service Catalog Entry

n:m

Fulfillment Execution

Component

RFC

1:1

Detect to Correct

Catalog

Composition

Component

Usage

Component

Chargeback /

Showback

Component

RFCRequest

Change Control

Component

Composite/Compound

Request

IT Supplier

(External to IT)

1:n

Engagement

Experience Portal

1:n

1:1

IT Financial

Management

Service

Monitoring

Component

Fulfillment

Engine & Deploy/

Provision Systems

Detect to Correct

Knowledge &

Collaboration

Supportive Function Detect to Correct

Incident

Component



n:m

1:n

Request

1:n

n:1

Service Catalog

Entry (Bound)

Actual

Service

CIs1:nRelease

Package

IT Asset

Management

Supportive Function

Fulfillment

Request


Supportive Function

Service Level

Comp.

Detect to Correct

Service

Contract

(Template)

Service

Level

Status

Service Contract

1:1Service Contract (Instance)

Self Service

SupportKnowledge Collaboration

Conversation

Service Catalog

Shopping Cart

Service Model



Entity relationship

Functional Component -Key

Functional Component -Auxiliary


Engagement data flow

Current practice

This work is based upon material developed and published by the

IT 4IT Consortium



34


IT4IT™ Detect to Correct value stream level 2

Self Service Support

Defect Component


Defect

Portfolio Demand Component


Portfolio Backlog

Item

IncidentEvent

Actual Service CIs

RFCService Monitor

1:n

1:n n:m

n:m

Problem, Known Error

n:m

n:m

n:m

Event Incident

RFC

RFC

Problem RFC

Incident

Request to Fulfill

Fulfillment Execution Comp.

PortfolioBacklog

Item

n:m

Usage

1:n

Runbook

Run book

Run book

n:m

Service DiscoveryActual Service CIs

Defect

Knowledge & Collaboration

Component

Knowledge Item

n:m

1:n

1:n

Supportive Function

ServiceMonitor

Knowledge ItemRun book

Interaction

n:m

Desired Service Model

1:1

1:1

Usage Component

Request to Fulfill

Defect

1:11:1


Request to Fulfill

Status

Service Monitoring

Component

Incident

Component

Change Control

Component

Problem

Component

Diagnostics &

Remediation Comp.

Configuration

Management

Component

Event

Component

RFC

D2C V.2.0 May 14

th 2015

1:n

Request to Fulfill

Actual

Service

CIsFulfillment

Request

Service Contract

Service Level

Component

KPI

n:m

Release Composition Component

Requirementto Deploy

Service Release Blueprint

n:m

Offer Mgmt.Component

Service Contract (Template)Service

Contract(Template)

Service Level Status

Business / ITMeasurement Business Measurement

(Incident)

Request to Fulfill

1:1

Request Rationalization

Component

Request to Fulfill

Subscription

Service Contract

(Instance)

1:1

Service Model



Entity relationship




Engagement dataflow

Current practice

This diagram was developed/published by the IT4IT™ Forum of The Open Group™

n:m

Conversation

n:1



35

“BUILDING A NEW FULLY INTEGRATED APPROACH FOR MANAGING IT, GOING BEYOND THE TRADITIONAL PROCESS MODELS AND DISJOINTED SOLUTION LANDSCAPES, BASED ON A COMMON INDUSTRY DATA MODEL, WILL GIVE AN IMPORTANT BOOST TO OUR EFFORT OF BECOMING A WORLD CLASS IT PROVIDER. WE EXPECT THAT WORKFLOWS WILL BECOME SIMPLER AND THAT DATA CAN BE BETTER SHARED BETWEEN MANAGEMENT ACTIVITIES, THEREBY CREATING UNPRECEDENTED LEVELS OF INFORMATION TO HELP US MAKE MORE INFORMED DECISIONS FOR THE FUTURE OF IT IN OUR COMPANY.”

Hans van Kesteren, VP & CIO Global Functions, Royal

Dutch Shell

36


For more information

• Official ITIL website

www.itil-officialsite.com

• IT Service Management Forum

http://www.itsmf.com/

• HP Education Services

http://education.hp.com

• HP ITSM software products

http://www.hp.com/go/itsm

• IT4IT Forum

http://www.opengroup.org/IT4IT

37 HF411S B.00 – © 2012 Hewlett-Packard Development Company, L.P.

http://www.itil-officialsite.com/

http://www.itsmf.com/

http://education.hp.com/

http://www.hp.com/go/itsm

http://www.opengroup.org/IT4IT

© Copyright 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.© Copyright 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

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