jan presentation 3

8/9/2019 Jan Presentation 3

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Theory of ITSM CSIP


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Key concepts ITSM The directive for ensuring delivery IT Services isin-line with organizations mission

Increase efficiency and effectiveness by 30%

(Gartner) Changing the behavior of IT resources activities

Historical behaviors, Habits, etc

Senior management must be part ofimprovements

Middle management will be most affected

Implementation done through quick wins (4 to 8


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Why invest in ITIL and ITSM?To answer the following questions (partial list, examples): How much money was spent on managing failures?

What are all the components required to deliver a specific

IT service?

Do you an agreement for all IT services being delivered?

Can you justify 100% of the IT expenditures?

How many failures were caused because of changes?

What is the projected service availability (availability

requirements) of your top 3 IT Services?

Have all the IT services been defined?


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Why would the military adopt a

process approach?Good, robust and standardized processes across militaryservices, combat commands, Defense Information SystemsAgency and the intelligence community:

Can be audited and improved

Impose organizational discipline

Clarify organizational boundaries and roles

No process stands alone

Cut across silos promote communication and co-

operation Capture organizational knowledge

Link individuals with the work roles they fill

Avoid duplication of effort


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ITIL contributes to the Global

Information Technology Model Integrated central processes Common processes

Standard procedures

Clear roles and responsibilities Improved IT availability, reliability and security ofmission critical IT services

Justify cost of service quality

Provide services that meets business, customers andusers demands

Provide demonstrable performance indicators

Policy-driven

Incident handling


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ITSM through a scenarioThe best way to show why to get involved in ITSMand using ITIL is through an improvement example


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Q1. What is the vision ?

(objectives) Reduce downtime of IT

Services

(for users)

Increase efficiency inmanaging failures

Increase service levels forclients


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Q2. Where are you now ?

(Assessment) Organization with 500 incidents per

day

Average incident time (MTTR)7mins 30secs

Average time spent on detection anddiagnosis is 4mins

12 staff at the Service Desk, 7

involved in detection and diagnosis

Salary of SD staff $75K/year

Cost of unavailability $7.50/minuteof down time for users (???)


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Q3. Where do you want to be

(Targets) Reduce detection/diagnosis time

by 1 minute

Save $300,000/year Increase SLA Target

Reduce SD Staff by 15%

Associated KPIs: MTTR

% SLA Breached

% Failed RFC

Etc


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Q4. Process Improvement Using ITIL Framework best practices and

ITSM discipline

Availability Management (AM) Process confirmMean Time To Restore (MTTR) anddetection/diagnosis time

AM making recommendation on how to reducefailure time

Change Management (ChgM) to manage RequestFor Change (RFC) to implement newimprovements

Configuration Management Database (CMDB) torecord new Configuration Items (CIs) being

implemented


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Q4. Process Improvement AM Recommendations Training of SD staff ($20K) Implement Knowledge DB ($35K) Implement new module of Monitoring tool ($40K) Change Incident Management process

Incident changed process to use KDB and newmonitoring tool Hire consultants to help change the processes andanalysis of recommendation. Cost of $250K


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Q5. Measuring Success of

Improvement Annual savings of$555,000 from recommendations

Current situation (Calculations) 7 staff X 8 hours X 60 minutes X 70% ondetection/diagnosis = 2352 minutes of possible work 500 incidents/day X 4 minutes unavailability = 2000minutes of unavailability time

If detection/diagnosis is reduced from 4 mins to 3 mins 500 incidents/day X 3 minutes unavailability = 1500

minutes of unavailability time Reduction of unavailable time of 500 minutes (From2000 mins to 1500 mins)


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Improvement Calculation Resource Savings 1500 minutes of unavailable time 5 staff X 8 hours X 60 minutes X 70% = 1680 minutes ofpossible workWas 7 staff X $75K = $525K

Reduced to 5 staff X $75 = $375K SAVINGS OF $150K/year or 28.5%

Calculation Availability Savings Savings of 500 minutes of unavailability (was 2000

reduced to 1500) $7.5/minutes X 500 minutes (saved) / day = $3,750/day 200 days of work X $3,750/day = $750K SAVINGS OF $750K/year


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Improvement $150K + $750 = $900K / Year Cost of improving: $95K (Availability recommendations) + $250K (Consultantassistance in process changes) = $345K cost

$900K - $345K = Net Savings of $555,000


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Increase revenue of the organization

Lower cost of operations Legal compliancy (Political)

Better control/knowledge of ServiceDelivery

Increase morale of the organization

all improvement projects should be linked to business objectives ...

ITSMImprovements

BusinessObjectives

The 5 main business objectives


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Creating a business vision At the end of the day it is not the process diagram

that will make a difference, but the business

results Take the time to define yourKPIs and Business

Objectives from the start

You will be forced to look at the bottom line for


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Conclusion This is just an example but the premise is sound ITIL and ITSM is about making real life changes It is proven that it works Make sure you set your objectives and set some

KPIs to measure the success


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Questions


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Important KPIs Incident,

Problem & CM Number of Business impact 1 incidents Number of Business impact 1 solved within agreedservice level times Service Desk user daily satisfaction survey Incidents vs KE ratio

# of KE solutions implemented last period % of assets (CIs) in the CMDB (under change control) % increase of CIs audited % of CI under Control by Type


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Important KPIs Change &

Release % of failed changes % of failed changes (by service line) % of emergency RFCs raised # of rejected changes because of bad categorization # of Emergency Releases

% of Releases with Approved RFCs


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Important KPIs Service

Delivery

% of security incidents byS

erviceL

ine Number of security incidents solved within agreedservice level times % ofICA updated in capacity plan % of successful ITSCM plan invocation

% of clients withSL

As in place % ofSLAs breached % of items sold that are in service catalogue (by $ value) Total Cost of operations % Variance between budget and expenses

% Variance between budgeted and billed revenues % Variance in planned and completed report dates Business Growth (Also by each MajorService Line) Average score in client survey

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