Moving on in IT Service Management

Brian Scott - SMSG

18th September 2013 – BCS Nottingham & Derby Branch

Introduction

Information Technology is continually

moving forward - whether infrastructure,

application or delivery model. Service

Management underpins how these

components combine to deliver business

value. ITSM itself needs to move forward

in line with these.

This session will discuss the core concepts

and structures of ITSM, and the maturity

stages required to match increasingly

demanding business needs from IT

services. It aims to demonstrate that

"Whatever your role in IT - with Service

Management, everyone's involved."

Agenda

– Service

– Service Management

– Patterns of Development

- Foundation

- Service Delivery Resilience

- Business Focus

- Delivery Model Flexibility

– How do you develop and mature?

– Benefits of Service Management

– Some useful resources

2 BCS SMSG Team

Episode 1

ITIL ® is a Registered Trade Mark, and a Registered Community Trade Mark of the Office of Government Commerce, and is Registered in the U.S. Patent and Trademark Office.

3 BCS SMSG Team

SM Café – Service Interactions

Machine Provision

Provide and maintain coffee

machines

Consumables

Provision

Source and deliver coffee,

milk, sugar, etc.

Customer

Provide

consumables

Provide

machinery

Shop Floor

Provide coffee to

customers

Front of House

Take customer orders

and payments

Preparation

Prepare coffee and

deliver to customers

Fulfil

Orders

Order

coffee

Deliver

coffee

Buy Coffee /

Provide Great

Coffee

SM Café Megabucks Inc.

Service

Product ≠Service

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Understanding ‘Service’ – the Service Quality Model

Gaps that can lead to failure to meet customer expectations regarding the services delivered (Δ5):

– Δ1: Customer Expectations vs. Provider Management Perceptions

- The customer’s expectations are not understood or adequately considered

– Δ2: Provider Management Perceptions vs. Service Design

- The service architecture and infrastructure is specified incorrectly and/or incomplete

– Δ3: Service Design vs. Service Delivery

- The service delivery processes do not deliver the specified quality (service activities or processes are not aligned and/or the appropriate resources are not assigned)

– Δ4: Service Delivery vs. Customer Communications

- The services delivered do not match the announced services

Co

mm

un

icati

on

Δ2

Moment of Truth

Customer View

Service Expectations

Service Perception

Service Delivery

Service Design

Management Perceptions of Customer

Expectations

Service Provider View

Δ3

Δ1

Δ5

Δ4

Source: Delivering Quality Service, V. Zeithaml

Service

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Positioning Service Management

SYSTEM

RESOURCE

BUSINESS

SERVICE

Service Management

Customer View

Service Provider View

Operations View

Moment of Truth

6 BCS SMSG Team

Service Management: IT Services metamodel as a basis for viewing the challenges

Provides a high-level view of all the entities that need to be managed for

effective IT Services Management

Service Provision

Service Offering

Organization Process Tools &

Technology

Data &

Information

External view of the available services

appropriate to the needs of those buying

and selling the services

Internal view of available services

appropriate to those who provide and

deliver the service

Describes the tasks, activities and

processes needed to deliver IT

Service Management, and shows how

they link together in specific flows

Describes the

locations,

roles and

skills used to

deliver

service

Describes the hardware and software

tools and technologies used in the

delivery of service

Contains the

entities for

the data and

information

required to

support

IT Service

Management

An integration model for organizing IT service management – IBM Systems Journal Vol 46, Number 3, Page 405 (2007)

Service Management

There is no single right way to go about adopting SM – but there are some common patterns

There is no single right way to adopt SM nor an ideal sequence to go through

The right way for you will always depend on your starting point and the goals you are

trying to achieve

However we do see common patterns in the stages that many organisations go through:

– Wave 1 – Foundation

- In ITIL v2 speak: Service Support

– Wave 2 – Service Delivery Resilience

– Wave 3 – Business Focus

- Considering service earlier in the lifecycle

– Wave 4 – Delivery Model Flexibility

Waves 3 and 4 may be reversed or performed in parallel

Common Stages in the Adoption of Service Management

Patterns of Development

8 BCS SMSG Team

Traditional Service Management – Linking IT Systems Management to Service

The Help Desk becomes The Service Desk

Link between users and techies – a bridge and a barrier

Systems or Services? Defining Services in terms of Systems, Assets, technology and teams

Lists of applications and systems – Inventory and topology become CMDB(s)

Shelved SLA’s are dusted off and renewed mapping to OLA’s and U/Cs

Incident handling but mainly silo’d NOC, App teams and detached data centre staff handling faults and defects so…

Focus on Functions and Service Operations as the foundation

Functions helps teams understand their place and their relationship to the Service Desk – the foundation Service.

Mapping Incidents to faults, events, alerts brings Service process close to NOC “procedures”

ITSM mapped to FCAPS (Telecoms and System Management model – Fault Mgt, Config Mgt, Availability Mgt, Performance Mgt and Security Mgt) for example

Foundation

9 BCS SMSG Team

Scenario across Process, Data, Organisation, and Tools

Service

Execution

A62

Event

Management

A64

Incident

Management

A65

Problem

Management

A66

Event

Incident_ Resolved

Operational

Monitoring Data

IncidentInformation

Incident

Change

Management

A51

Deployment

Management

A53

ChangeRequest

Event Resolution

Directive

Change

Solution_Deployed

Problem Information

1. Monitoring Data and Event Resolution

2. Event to Incident, resolved there

3. Incident to Problem

4. Incident or Problem requires an RFC for

resolution

Foundation

10 BCS SMSG Team

Quality service delivery depends on integration

The lack of lifecycle integration between development and operations continues to drive costs up and operational service quality down

Development View of IT Operations View of IT

Requirements

Analysis & Design

Implementation

Project Mgmt

Change Control

Documentation

Human Factors Test

PackagingArchitecture

Act Surprised

Installation

System Admin

Help Desk

Asset Mgmt

Capacity Planning

Deployment

Managing Changes

Availability Mgmt

Backup / Restore

IT Strategy

System Operation

Compliance Risk MgmtIdentity Mgmt

ContinuityFinancial Mgmt

Problem MgmtSecurity Mgmt

Development

Testing

Throw over Wall

Resilience

11 BCS SMSG Team

Operations Development

Service Desk

Tool Development

Workbench

Requirements

Control

Operational Monitoring

SOA Application Manager

Trace problems from operations into development

Using open API linkage with development activity tracking products, operations tooling can create and track work items for the development organisation

– Helps in managing coordinated actions with development Data Centre

Server

Server

Server

Server

ServerServer

Resilience

12 BCS SMSG Team

Identifying and prioritising essential IT capabilities and services

Enablers: Organisation structure

IT Processes

Measures, rewards, and culture

Information Technology

IT Capabilities

IT Services

Customer Wants

and Needs Customer Vision Of

Ideal Value Delivery

Enabling

Infrastructure

Customer-defined service vision

Identify the value that the customers

receive from this service

Then, envision ideal performance or

delivery of that value

Fit for Purpose

Services Portfolio

Service and Performance Levels

Fit for Purpose

The dependencies that must

be present to enable the

essential capabilities

Actionable Design Points

Essential

IT Capabilities

and IT Services

Business Focus

13 BCS SMSG Team

Combining the service and process perspectives

Provides an understanding of how well IT services support those business capabilities

Assessing the services is a useful way to prioritize future investigation of the underlying process or technology

Factors indicating this perspective is lacking:

– There is a lack of focus on the IT customer or there are customer dissatisfaction issues

– There are conflicting requirements for new IT support

– Responsibilities are not clear for the delivery of IT services

Process 2 Process 1

Process 4

Process 3

Process 5

Processes

= Service

+ + + +

Set table

Welcome

and offer seat

Offer choice and

take order

Preparation

of order

Serve order and

look after customer

Dine in pleasant

atmosphere

Facility Management User Contact

Management

Service Marketing

and Sales Solution Build

IT Operational Service

Customer Satisfaction Mgmt.

Business Focus

14 BCS SMSG Team

Multiple service providers introduces both flexibility AND complexity

IT Operations

OLAs

Std. Interface

Integrator

Function

Std. Interface

ITIL / CMMI / Cobit

Enterprise Business Units

Integrated Operations

Environment Tools

Std. Interface

Enterprise

External Supplier

InternalAMD Service

Infrastr.

Services

Local

proceduresLocal

procedures

Std. Interface

Local

procedures

Service

Desk

AAGGRREE

EEMM

EE

NNTTSS

Integration

Local

procedures

Client

Services

Local

procedures

Network

Services

Std. Interface

Local

procedures

Other ?…

Std. InterfaceStd. Interface

Localprocedures

Other AMD

Other AMD

Other AMD

Services

Localprocedures

§ Standard process interfaces

§ Standard integration interfaces

§ Standard KPIsETC…

Localprocedures

Integrated Governance

Delivery Model Flexibility

15 BCS SMSG Team

A “Technology Framework” is needed to minimise technology interdependencies

ENTERPRISE SERVICE BUS

– “Universal Translator”

– Bridge Building Tool Kit – adaptors based,

avoids point:point bridges

– Integration by Standards – all tools, e.g. XML

over SOAP

Enhanced Agility

– New suppliers can be inserted quickly

– Tools can be replaced as needed

– Suppliers can change tools without affecting function

WORKFLOW

DASHBOARDS

Enterprise Services Bus

User Administration

Application & Asset

Discovery

Monitoring & Alerting

CMDB

Integrated IT

Service Catalog Service

Management Operational Reporting

Business IT - Visualization

Silo CMDB CMDB

Integrated Operations Environment

Silo

Federated

Delivery Model Flexibility

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Lifecycle of a Cloud Service – new challenges

Provider / IT Dept

Subscriber (e.g. Line of Business)

Administrator / SLM

Service Template Definition •Create Build- and Management Plans for Service

Service Offering Creation & Registration •Define Service based on Template and register it in the Catalog

Service Catalog Manager

Service Offering Subscription & Instantiation •Select Service, specify parameters and SLA’s •Automatically instantiate the Service

Subscriber (e.g. Line of Business)

Service Instance Termination Destroy Service and free up resources

Cloud Service

Ensemble Hardware Ensemble Hardware

System z Ensemble Power Ensemble System x Ensemble

Ensemble Hardware

Virtualizers (e.g. z/VM) Virtualizers (e.g. PHYP) Virtualizers (e.g. Xen)

Individual Servers Storage Ensembles

Ap

p

Ap

p

Man

ag

em

en

t L

PA

R /

VM

…

Ap

p

Ap

p

Ap

p

Ap

p

Man

ag

em

en

t L

PA

R /

VM

…

Ap

p

Ap

p

Ap

p

Ap

p

Man

ag

em

en

t L

PA

R /

VM

…

Ap

p

Ap

p

OS OS OS OS OS OS

Manual or

Autonomic

Execution of

Management

Plans

leveraging

Automation

and

Virtualization

Ensure SLA

Conformance

Delivery Model Flexibility

17

1

8

Cloud Service Developer

Cloud Service Provider

Common Cloud Management Platform

Cloud Service Consumer

Consumer

Administrator

Consumer

Business

Manager

Developer

Service Business Manager Service Operations Manager

Consumer

End user

Metering, Analytics & Reporting

Service

Development

Tools

Service Definition

Tools

Image Creation

Tools

Change & Configuration Management

Service Automation Management

Virtualization Mgmt

Provisioning

Monitoring & Event Management

IT Asset & License Management

Service Request Management

IT Service Level Management

Image Lifecycle Management

Capacity & Performance Management

Incident & Problem Management

BSS Business

Support

Services

OSS Operational

Support

Services

Service Transition Manager

Service Security Manager Security & Resiliency

Service Delivery Catalog

Service Templates

AP

I

Se

rvic

e D

eliv

ery

Po

rtal

Se

rvic

e D

eve

lop

me

nt P

orta

l

Service Provider Portal

Offering Mgmt

Order Mgmt

General accounting

Customer Mgmt

Entitlement Mgmt

Contract & agreement Mgmt Opportunity to Order

Pricing & Rating

Peering & Settlement

Subscriber Mgmt

Service Offering Catalog

Invoicing Billing

Cloud Services IT capability provided to Cloud Service Consumer

(Virtualized) Infrastructure – Server, Storage, Network, Facilities Infrastructure for hosting Cloud Services and Common Cloud Management Platform

Cloud Service Integration

Tools

Consumer

In-house IT

Delivery Model Flexibility

… and increased scope for the SM Architecture

‘Measurement’ is core to continual improvement

Level 1 – UNFOCUSED

Process is documented

and controlled

Level 2 – AWARE

Weakness are identified

TECHNOLOGY

There are few stable processes in evidence, and

performance can be predicted only by individual

rather than organizational capability - "Hero-based

success."

PRODUCT / SERVICE

The weaknesses of the process have been

identified and the basics of quality management

for the process are being worked on

Level 3 – CAPABLE

Process meet requirements

CUSTOMER SATISFACTION FOCUS

The process is producing the desired results and is

meeting customer requirements

Level 4 – MATURE

Process is competitive

BUSINESS FOCUS

The process is both effective and efficient.

The process is adaptable to business

direction changes

Level 5 – WORLD CLASS

Process has become

ingraine and adaptable

VALUE CHAIN FOCUS

The process is defect-free with no significant

operational inefficiencies and is continuously

improved

Level 1.5

Level 2.5

Level 3.5

Level 4.5

Influ

en

ce

on

th

e b

usin

ess

Lo

w

Hig

h

Level 5 Current

State

How does SM develop and mature?

19 BCS SMSG Team

Measurement should cover all the dimensions

Assessment

Focus areas

Unfocused

(1)

Aware

(2)

Capable

(3)

Mature

(4)

World Class

(5)

Process

Foundation

No mission defined.

No agreement or

understanding of

objectives

General awareness

of mission and

performance criteria

Mission and

objectives defined

and understood

by most

Mission and

objectives defined

and understood

by all

Mission promoted

by all and created

together with users,

objectives promoted

by all

Process Execution Not done or

occasionally in a

reactive mode

Some activities

done only during

major events

Some activities

planned on a

regular basis

Many activities

done, some

measurement and

reporting

All activities done

with involvement

of all key players

Process Integration No linkages

Occasional

interfaces as

necessary

Usually considered,

some definition

Generally defined

and followed

All interfaces well

defined and well

established

Organizational

Clarity No owner no role

definitions few skills

Multiple owners,

no agreed to

roles, skills limited

Assigned Process Owner

and roles,

skills cover some

technologies

Single owner,

roles documented,

and authority

understood, solid

skill sets

Owner does

continuous

improvement,

roles kept current

Tools None

General tools, low

usage, little

automation

Effective use of

some tools, some

tool integration

Effective use of

most tools with

some automation

and integration

Effective use of

a wide range of

tools and technology

basis

Measurement

& Control None

Focus on quantity,

not quality

Emphasis on

components routine

processes have

been optimized

Emphasis on end-

to-end, most

processes are

optimized

In line with business

objectives, all processes

optimized

Current State How does SM develop and mature?

20 BCS SMSG Team

ISO/IEC 20000 provides an excellent structure

How does SM develop and mature?

21 BCS SMSG Team

… and a body of knowledge such as ITIL provides ‘building materials’

Strategy Management for

IT Services

Demand Management

Financial Management for

IT Services

Service Portfolio

Management

Service Catalogue

Management

Service Level Management

Capacity Management

Availability Management

IT Service Continuity

Management

Information Security

Management

(ISO 27K, ISO 20K)

Supplier Management

Transition Planning &

Support

Change Management

Service Asset and

Configuration Management

Release and Deployment

Management

Service Validation and

Testing

Change Evaluation

Knowledge Management

Event Management

Incident Management

Request Fulfillment

(standard changes)

Problem Management

Access Management

Service Measurement

Service Reporting

The 7-Step Improvement

Process

Processes

Functions

Service Desk

Technical

Management

IT Operations

Management

Application

Management

Strategy Design Transition Operation Continual

Improvement

Design Coordination

Business Relationship

Management

How does SM develop and mature?

22 BCS SMSG Team

Source: Roberta Russell & Bernard W. Taylor, III

SM Benefits

Cost of fixing design vs. post deployment – Services and Service hooks in design and development

For example, in Software Engineering: A

Practitioner's Approach, author Robert

Pressman shows that for every dollar spent to

resolve a problem during product design, $10

would be spent on the same problem during

development and $100 or more if the problem

had to be solved after the product's release.

Simply stated, the lesson is clear: It is far less

expensive to prevent a problem occurring in the

first place than to fix it later. One of the best

ways to prevent problems from occurring, and

to protect your development investment at the

same time, is to keep your users and

customers involved through the entire

development cycle.

Quality Management and User Centred design

must apply to ITSM design and the design of

Services – it follows that Service is designed

in line with Product, Application and System!

Cost of quality

•difference between price of non-conformance and

conformance

•cost of doing things wrong

•20 to 35% of revenues

•cost of doing things right

•3 to 4% of revenues

23 BCS SMSG Team

A focus upon improved management practices is the key to improving productivity and service quality

Source: London School of Economics – McKinsey survey and analysis of 100 companies in France, Germany, UK and US

Per cent Increase

in Total Factor

Productivity

+ 8%

Intensity of IT Deployment

25th

perc

entile

and b

elo

w

75th

perc

entile

and a

bove

Ma

nag

em

en

t P

rac

tices S

co

re

-

+

+

+ 20%

0% + 2%

25th percentile

and below

75th percentile

and above

Impact of Management Practices on Productivity

… while doing both

yields highest increase

Improving management practices

increases productivity more than

investing in IT…

“IT expenditures have little impact

on productivity unless they are

accompanied by first rate

management practices.

Indeed, companies can significantly

raise their productivity solely by

improving the way they operate.”

– Stephen Dorgan and John Dowdy

“When IT Lifts Productivity”

McKinsey Quarterly, 2004

SM Benefits

24 BCS SMSG Team

Q&A Forthcoming Events http://www.bcs.org/category/12227

Resources

SMSG Past Events

Appendix

Resources

Rather than interpreting the ITIL volumes from scratch look at available process reference

models, some are freely available

Resources (cont.)

http://www.alignability.com/Request/Request_Process_Frames.htm

http://www.foxit.net/pages/resources/ITIL-v3-wall-chart.shtml

http://www.ibm.com/ibm/servicemanagement/us/en/tool.html

http://www.project-open.com/en/solutions/itsm/index.html

http://www.itilcommunity.com/index.php

http://www.itsmtv.co.uk/

http://www.stagedsam.org/

28 BCS SMSG Team

SMSG Past Events http://www.bcs.org/category/12228

BCS Service Management present: The Future of ITIL, an Evening with AXELOS

Thursday 12 September 2013

Service Management Roadshow - Introduction to ITSM at the BCS Nottingham & Derby Branch

17 Jun 2013, Nottingham

BCS Service Management - CPD for the Information Age! Fostering Service Management Competence

and Lifelong Learning

7 May 2013, London

BCS Service Management Master Class: The Service Design Package - too difficult, too vague, who

uses it?

11 April 2013, London

Mastering ITSM! Service Management in Academic & Professional Development

7 March 2013, London

Advanced ITIL, COBIT and ISO20000

28 February 2013, Guildford

BCS SMSG Master-class series presents: Reactive? Proactive? It's all Problem Management

14 January 2013, London

29 BCS SMSG Team