SERVICE LIFECYCLE

Service Strategy: Activities Defining the Market Development of strategic assets Development of offer Preparation of implementation Service Strategy Process: Financial Management Demand Management Service Portfolio Service Design: Activities Developing of requirements Data and Info management Application management Service Design Process: Service Catalogue Management Service Level Management Capacity Management Availability Management Service Continuity Management Info Security Management Supplier Management

Service Transition: Activities Transition Planning & Support Service Validation and Testing Evaluation Stakeholder Management Service Transition Process: Change Management Service Asset and Config Mgmt Release and Deployment Mgmt Service Knowledge Management

Service Operation: Activities IT Operation Monitoring and Control Service Operation Process: Event Management Incident Management Problem Management Request Fulfillment Access Management

INPUT AND OUTPUT OF SERVICE LIFECYCLE STAGES

Agenda

1 2

Service Strategy Service Design

3
4 5

Service Transition
Service Operation Continual Service Improvement

SERVICE STRATEGY - OVERVIEW

The spoke of the IT Service Management wheel It provides the direction and vision for establishing IT Service Useful for influencing organizational attitude and culture towards the creation of value of customers. The goal of service strategy is Superior performance versus competing alternatives Key Concepts Utility & Warranty Asset Value Creation Four Ps Activities
Define the Market Develop the offerings Develop strategic assets Prepare for execution

Processes Service Portfolio Management (SPM) Demand Management Financial Management

SERVICE STRATEGY

Four Questions of Service Strategy

o What are we going to provide?
o Can we afford it? o Can we provide enough of it? o How do we gain competitive advantage?

Four Ps of Service Strategy

o Perspective (Distinctive vision and direction) o Position (the basis on which the provider will compete) o Plan(how the provider will achieve their vision)

o Pattern (The fundamental way of doing things; distinct pattern of doing things (decision and action overtime)

SERVICE STRATEGY HAS FOUR ACTIVITIES

Understand Customer Understanding the opportunities Classifying and visualizing services The consumers market Result oriented definition of services Service portfolio, Pipeline, and Catalogue services SM as a close loop control sys SM as a strategic asset Increasing the service potential Increasing performance potential The consumers market Result oriented definition of services Service portfolio, Pipeline, and Catalogue services

Define the Market Develop the Offerings Develop Strategic Assets Prepare for Execution

DEFINING THE MARKET: SERVICE PROVIDER BUSINESS MODEL AND CUSTOMER ASSETS

Value creation concept

Value creation context

SERVICE MANAGEMENT AS A STRATEGIC ASSET

Type 1: exists within an organization solely to deliver service to one specific business unit Type 2: Services multiple business unit within the same organization Type 3: Operates as an external service provider serving multiple external customers Capabilities: The providers ability Resources: the direct inputs for the production of services Critical Success Factors (CSFs) Service Oriented accounting

FINANCIAL MANAGEMENT PROCESS BASIC CONCEPTS

Financial Management is an integral part of service management. It anticipates the essential management information that is required for the guarantee of efficient and cost effective service delivery. Service Valuation ( *Costing) (Utility and Warranty must be translated to monetary figure to calculate the Service Value
Cost of providing the service Value to the customers receiving the service

Service Investment analysis ( *Budgeting)

Understand the total lifecycle value and costs of proposed new services or projects

Accounting
Keeping track of what has been spent, assigned to appropriate categories

Business Case
A decision support and planning tool that predicts outcomes of a proposed action Used to justify investments

FINANCIAL MANAGEMENT COTD

Variable Cost Dynamics (VCD):
it focus on analysis of the many variables that impact service cost, The VCD analysis can be used as a tool to analysis the anticipated

Cost Types:
Capital / Production Cost:
Capital cost has to do with the purchase of assets that generally last several years. Only the write down amount is counted as cost Production Cost (Operation Cost) are costs that occur regularly (e.g. Maintenance contract for Hardware, license cost, insurance premium)

Direct/ Indirect Cost:

Direct Cost is the cost associated directly and exclusively for an IT Service, For instance activities and materials that are directly and exclusively associated with a service (e.g Broadband connection cost for the service) Indirect Cost are costs that cannot be directly identified with an IT Service, (e.g. support service cost, administrative cost, infrastructure cost).

Fixed/ Variable Cost

Fixed Cost are the cost that do not vary due to production levels (production changes). These costs are fixed (e.g. investment in hardware, software, or buildings. Variable Cost are costs that vary due to production level (e.g. hiring of external staff).

SERVICE PORTFOLIO KEY CONCEPT The service portfolio represents the opportunities and readiness of a service provider to serve the customers and the market. The service portfolio can be divided into three subset of services: The Service Pipeline (New services planned). The stages of Service
Pipeline are

The Service Catalogue (Business, and Technical); these services

are in Service Operation phase

The Retired Services (obsolete Services)

SERVICE PORTFOLIO MANAGEMENT PROCESS It is a dynamic method to govern investment in service management across the enterprise in terms of financial value

Prioritises and manages investments and resource allocation

Proposed services are properly assessed
Business Case

Existing Services Assessed. Outcomes:

Replace Rationalise Renew Retire

Product Manager

Relationship Manager

SERVICE PORTFOLIO MANAGEMENT

Business Service - A service that directly supports a business process. IT Service

- A service that the business does not think of in business context or semantics.
(IT becomes inbuilt pillar for business.) Service Portfolio Management includes Define: Inventory services, ensure business cases, and validate portfolio data.. Analyze: Maximize portfolio value, align and prioritize and balance supply and demand
Approve: Finalize proposed portfolio, authorize services and resources Charter: communicate decisions, allocate resources and charter services

Business Service Management - This is an ongoing practice of governing, monitoring and reporting on IT and business service it impacts. - The cornerstone of BSM is ability to link service assets to their higher level of business services. Such a correlation model identifies asset to service linkages, allowing infrastructure events to be tied to corresponding business outcomes. Roles : Product Manager - Owner of Service catalog Business Relationship Manager

DEMAND MANAGEMENT BASIC CONCEPTS

Core Service (Popular Service) An IT Service that delivers outcomes desired by one or more customers. This is the service for which the customer is willing to pay. This represents the basis for value proposition.

Supporting Service (Service to plus the case) A service that enables or enhances a core service. For example, A directory service or a backup service

Pattern of Business Activity (PBA):

It is the Workload profile of one or more business activities; Varies over time Represents changing business demands User profile Pattern of user demand for IT Services Each user profile includes one or more PBAs Service Package Detailed description of a service

Includes a service level package (SLP) and one or more core services and supporting

Agenda

1 2

Service Strategy Service Design

3
4 5

Service Transition
Service Operation Continual Service Improvement

SERVICE DESIGN
Responsible for the design of new or changed services going into a live environment Ensure that designs are consistent, compatible, capable

Metric definition, selection and evaluation of measurement capabilities

Key Concepts
Four Ps Service Design Package

Aspects of Service Design

Processes
Service Catalog Management (SCM) Service Level Management( SLA, OLA, SIP, Service Quality Plan) Availability Management Information Security Management Supplier Management

SCOPE OF SERVICE DESIGN THE FOUR PS

People

Products

Processes

Partners

Many designs, plans, projects fail due to lack of preparation and management. Implementation of ITIL Service Management as a practice is about preparing and planning the effective and efficient use of 4 Ps.

SERVICE DESIGN PACKAGE (SDP)

Documents defining in details all aspects of a service and its requirement; through all stages of its lifecycle. A SDP is produced for is produced for each new IT Service, major change, or IT Service requirement The SDP is passed from Service Design to Service Transition for implementation.

ASPECTS OF SERVICE DESIGN In order for the organization to strive to attain the highest possible quality with a continual improvement focus, a structured and resultoriented approach is necessary in each of the five separate aspect of design.
Service Solution (Including functional requirements, resources and capabilities) Service Portfolio (support systems and tools) Architecture (Technological, and management) Processes Measurement systems and metrics

DESIGN OF SERVICE PORTFOLIO

Service Portfolio
Service Knowledge Management System
Service Portfolio
Service Lifecycle Service Status Requirements Defined Analyzed Approved Chartered Designed Developed Build Test Release Operational Retired

Service Strategy

Service Pipeline Customer/Users Only allowed access To services in this range

Service Design

Service Transition Service Operation

Service Catalogue Retired Services

SERVICE CATALOGUE
Part of the Service Portfolio.

Services available for deployment or use.

Information to be shared with customers (external or Internal IT).

Business Service Catalog

Services of interest to customers

Technical Service Catalog

Underpinning services of interest to IT.

SERVICE CATALOGUE MANAGEMENT PROCESS

Basic Concepts The Service Catalog (subset of portfolio containing only active and approved service)
Part of the Service Portfolio
Details of all operational services and those being prepared for transition Business Service Catalog Details of all the IT services delivered to customers (Visible to the customers) Technical Service Catalog Details of all supporting services Not usually visible to customers

Roles:
Service Catalog Manager Produce and maintain the Service Catalog Ensure all operational services and those being prepared for operational running are recorded Ensure all information in the Service Catalog is accurate and up to date and is consistent with the information in the Service Portfolio

SERVICE LEVEL MANAGEMENT PROCESS BASIC CONCEPTS

Customer/Users

Service Level Agreements

Service A

Service B

Service C

IT Infrastructure

Operations Level Agreements Internal Organization

Underpinning Contracts External Organization

SERVICE LEVEL MANAGEMENT

Objectives
Negotiate, agree and document service levels Measure, report and improve service levels Communicate with business and customers

Scope
Ensure quality of service matches expectations Existing services Requirements for new or changed services. Expectation and perception of the business, customers and users.

Roles
Service Level Manager
Process Owner Understand Customers Create, Maintain, Review and Reporting SLAs and OLAs Ensure that Changes are assessed for impact on service levels

SERVICE LEVEL MANAGEMENT

Activities
Designs SLA frameworks Identify Service Level Requirements (SLRs) - Agree and document Service Level Agreements (SLAs) - Negotiable and document Operational Level Agreements (OLAs) and Underpinning Contracts (UCs) Monitor service performance against SLA & Product Service reports Measure and improve Customer Satisfaction & develop contacts and relationships Review and revise underpinning agreements and service scope Conduct service reviews and instigate improvements & manage complaints and compliments

Review and revise SLAs, OLAs and UCs

Key metrics
Number and % of targets being met Number and severity of service breaches

AVAILABILITY MANAGEMENT
Availability is the ability of IT service or component to perform its required function at a stated instance over stated period of time Objectives
Ensure agreed level of availability is provided
Continually optimize and improve availability of - IT Infrastructure - Services - Supporting organization Provide cost effective availability improvements that can deliver business and customer benefits

incident and maintain an availability plan Produce Detected Recorded Diagnosed

Repaired

Recovered

Restored

incident

Time to Detect

Time to Record

Time to Diagnose

Time to Repair

Time to Recover

Time to Restore UP TIME Mean Time Between Failure (MTBF)

DOWN TIME Mean Time to Restore Service (MTRS)

Mean Time Between System Incident (MTBSI)

AVAILABILITY MANAGEMENT - BASIC CONCEPTS (1 OF 3)

MTBF (Mean Time between failure): average time between the recovery from one incident and the occurrence of next event (Up Time) MTRS (Mean Time to Restore Services): Average time taken to restore CI or IT Component after a failure(Down Time) MTBSI (Mean Time Between System Incidents): Average time between the occurrence of two consecutive incidents (MTRS+ MTBF) Availability Management process includes Proactive activities
- Design and planning activities - Planning, design and improvement of availability

Reactive activities
- Operational activities - Monitoring, measuring, analysis and management of all events, incidents and problems involving unavailability

Availability
The ability of a service, component or configuration item to perform its agreed function when required Often measured and reported as a percentage

AVAILABILITY MANAGEMENT - BASIC CONCEPTS (2 OF 3)

Reliability
Measure of how long a service, component or CI can perform its agreed function without interruption. It is the freedom from operational failure

Maintainability
Measure of how quickly and effectively a service, component or CI can be restored to normal working after a failure. It is the ability of an IT Component (CI) to be retained in or restored to an operational state (This is internal based on skills, resource,..etc)

Resilience
Its the ability to withstand failure

Serviceability
Ability of a third party supplier to meet the terms of their contract (External)

Vital Business Function (VBF)

A Function of a Business Process which is critical to the success of the Business.

AVAILABILITY MANAGEMENT - BASIC CONCEPTS (3 OF 3)

High Availability
Minimizing or hiding the effects of a component failure

Fault Tolerance
Ability of an IT Service, component or CI to operate correctly after component failure

Continuous Operation
Approach or design to eliminate planned downtime of a service
(Note, an individual CI may be down even though the IT Service remains available.)

Continuous Availability
Approach or design to achieve 100% availability
An IT service that has no planned or unplanned down time

AVAILABILITY MANAGEMENT ACTIVITIES

INFORMATION SECURITY MANAGEMENT

Objectives
To align IT Security with Business Security; Information security is effectively managed in all services management activities To protect the systems and communications that deliver the information & of those relying on information. Specifically related to harm resulting from failures of: - Confidentiality (Protecting information against unauthorized access or use) - Integrity (Accuracy, completeness, and timeliness of information) at source and during transit - Availability (Information should be accessible for authorized user at the agreed time) The ability to do business with other organizations safely * Basic Concepts Information Security Policy Information Security Management System (ISMS) Risk analysis and risk management

Security Incidents (any event interfering in achieving the security requirement)

Security controls

Roles
Security Manager (Process Owner)
Develop and maintain Information Security Policy

RISK MANAGEMENT AND ANALYSIS.

Risk Analysis

Risk Management

Define A Framework

Embed And Review Identify The Risk

Gain Assurances About Effectiveness

Identify Probable Risk Owners

Implement Responses

Evaluate The Risk

Set Acceptable Levels Of Risk

Define A Framework

INFORMATION SECURITY ACTIVITIES

CAPACITY MANAGEMENT
Capacity Management manages the process of determining the right capacity, at the right location, at the right moment, for the right customer, against the right cost

Objectives
To produce and maintain a Capacity Plan To provide advice and guidance on capacity and performance related issues To ensure services meet or exceed performance targets To assist in diagnosing and resolving capacity related problems and incidents To assess the impact of changes on the Capacity Plan Proactive capacity and performance measures

Roles
Capacity Manager (Process Owner) Proactive Planning Service Level Manager Provides capacity requirements through discussions with the Business users Technical and Application Management Day-to-day capacity management activities

CAPACITY MANAGEMENT BASIC CONCEPTS

Balancing costs against resources needed

Balancing supply against demand

Should be involved at all stages of the lifecycle Forward looking, regularly updated Capacity Plan Three levels of concern: - Business Capacity Management - Service Capacity Management - Component Capacity Management Capacity Management Information System holds information needed by all sub-processes (above).

CAPACITY MANAGEMENT ACTIVITIES

IT SERVICE CONTINUITY KEY CONCEPTS

ITSCM should be based on Business Continuity - Appropriate protection and recovery measures - Written recovery plans Lifecycle approach - Initiation, Requirements & Strategy, Implementation, Operations - Regular Business Impact Analysis (BIA), Risk Assessment and Risk Management to ensure plans remain valid - Regular testing of plans Negotiate with suppliers as necessary Assess changes for impact on ITSCM - Common Recovery Option include - Manual Workarounds - Reciprocal Arrangements - Gradual Recovery (Cold Standby) - Intermediate Recovery (Warm Standby) - Fast Recovery (Hot Standby) - Immediate Recovery

ITSCM KEY CONCEPT

Disaster: Not part of daily operational system; require separate systems BCM (Business Continuity Management): Strategies and actions to take place to continue business process in the case of disaster.

BIA (Business Impact Analysis): It quantifies the impact due to the loss of IT Services would have on the business.
Risk Assessment: Evaluate assets for their threats and vulnerabilities pertaining to continuity Scope: all critical business process (requiring service continuity) and the IT services that underpin them. Countermeasures: measures to prevent or recover from a disaster
Manual Work around: Non IT based solution to overcome IT Service continuity problem

Gradual Recovery: Cold stand by (Recovery > 72 hours)

Intermediate Recovery: Warm Standby (Recovery between 24 hours to 72 hours) Immediate Recovery: Hot Standby (Recovery within 24 hours) Reciprocal Agreement: its the agreement with another similar size organization to share disaster recovery obligation

IT SERVICE CONTINUITY ACTIVITIES

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