1. ITIL: What is it? Why you should use it? How to use it?
Tampa Bay Technology Leadership Association
August 9, 2007
T.C. Kaiser
Senior Customer Solution Architect
CA, Inc.

2. Agenda
The Big Picture
The IT Infrastructure Library – Definition, History, etc.
IT Service Management
ITIL v2 – Service Support and Service Delivery
ITIL v3 – The Service Lifecycle
The Benefits of ITSM
Real World Examples
Implementing ITIL – Recommendations, What Not to Do
Q&A
August 9, ITIL: What, Why, How? Copyright © 2007 CA

3. Obstacles Prevent Effective Engagement
Overwhelming Demand:
Unstructured capture of requests and ideas
No formal process for prioritization and trade-offs
Reactive vs. proactive
Unfortunately, there are many obstacles preventing effective engagement.
As the arrows starting from the business and ending at IT indicate, every day, IT organizations face multiple and competing demands for services and projects from multiple lines of business.
OVERWHELMING DEMAND
Managing demand for most IT organizations is extremely difficult: demand comes from many different sources, is of vastly different levels of priority, from tactical to strategic, and because there’s no structured process in place to manage this demand.
Even if all the demand is captured, there is often no process by which to make trade-off decisions with the business in terms of priority, timing and budget. Instead, these decisions are often made based on who screams the loudest or who has most influence.
IT SEEN AS A BLACK BOX (LACK OF VISIBILITY)
Further compounding the engagement problem is the lack of visibility that IT’s customers have into the status of their approved initiatives. Often, IT appears as a black box to those who rely on IT for their business technology.
Finally, when IT does deliver new services to the business, there’s often a disconnect between what was envisioned and what was received. This results in customer satisfaction issues that can tarnish IT’s reputation in the organization.
CONCLUSION
No process, poor trade-off decisions, limited visibility and poor satisfaction all define an engagement process that is not working at its best.
IT Seen as Black Box:
Business lacks visibility
Poor customer satisfaction
August 9, ITIL: What, Why, How? Copyright © 2007 CA

4. Disparate Systems Reduce Efficiency
No Single System of Record for Decision Making
Now let’s take a look within IT and the efficiency challenges being faced there. As an IT leader you are responsible for:
- Delivering completed projects
- Managing to a fixed budget
- Managing people, whether within the IT org or outsourced
Most IT organizations already have systems to manage all 3 categories: they may be using spreadsheets, Microsoft Project, custom-built apps, whiteboards, and s to manage and communicate within and outside the IT organization.
The problem is that these resources, systems, and applications are:
- Disparate systems
- not integrated
- not scalable
- lack a foundation of repeatable processes
which results in having no system of record or system of support for decision-making.
Once again, having no single system of record means no consolidated views, no control of your resources, and no way to make real-time intelligent decisions.
Without a unified (and simplified) system most IT organizations we speak to today look like this.
Relevant Metrics Hard to Obtain
Disparate Systems Costly to Maintain and Upgrade
August 9, ITIL: What, Why, How? Copyright © 2007 CA

5. IT Governance Landscape
What connects the business and IT is the process of IT Governance…
Strong engagement begins with a solid IT Governance process. A key component of IT Governance is Clarity’s Portfolio Management module.
Evaluating project and service requests in a systematic way that allows quick adaptation to changes in the business environment is not only good practice, its good governance.
These multiple inputs to the PfM come from Demand…
From the Business…
…from existing Services….
..and from within the IT organization, specifically from existing Projects…
…and from existing Applications…
Having the right facts is key and since all the Clarity modules are completely integrated, you are guaranteed that the facts you need to perform effective portfolio planning are accurate.
A strong Portfolio process also establishes the foundation for a clear investment model. A clear investment model helps you get control of the organization. For example, Clarity customers that have been able to get the buy in from both business and IT on an agreed upon investment model have been able to decrease incoming demand between 50-80%. How? Only the demand that fits into the agreed upon strategic objectives gets filtered into the portfolio.
Imagine how many hours and dollars that would save you per year!
August 9, ITIL: What, Why, How? Copyright © 2007 CA

6. What is the Information Technology Infrastructure Library (ITIL)?
History and Definitions

7. What is the IT Infrastructure Library?
“The IT Infrastructure Library® (ITIL) is the most widely accepted approach to IT service management in the world. ITIL is a cohesive best practice framework, drawn from the public and private sectors internationally. It describes the organisation of IT resources to deliver business value, and documents processes, functions and roles in IT Service Management (ITSM).”
Source: UK Office of Government Commerce
ITIL is the basis of the worldwide standard for quality IT Service Management, ISO 20000
ITIL was developed by the public and private sectors and globally adopted.
ITIL is in the public domain.
August 9, ITIL: What, Why, How? Copyright © 2007 CA

8. The History of ITIL
1980’s
British government determined that the level of IT service quality they received was not sufficient. The Central Computer and Telecommunications Agency (CCTA) was assigned to develop a framework for efficient and financially responsible use of IT resources. This was a joint effort between the government and private sector experts.
2000
The CCTA merged into the Office for Government Commerce (OGC). Microsoft used ITIL as the basis to develop the Microsoft Operations Framework (MOF).
2001
Version 2 of ITIL is released. The Service Support and Service Delivery books were redeveloped.
2007
Version 3 of ITIL is released which adopts a lifecycle approach to Service Management with a better emphasis on IT-Business integration
August 9, ITIL: What, Why, How? Copyright © 2007 CA

9. IT Service Management
IT Service Management is concerned with delivering and supporting IT services that are appropriate to the business requirements of an organization. This improves efficiency and effectiveness and reduces the risks of managing IT services.
Services are a means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks. Outcomes are possible from the performance of tasks and are limited by the presence of certain constraints
August 9, ITIL: What, Why, How? Copyright © 2007 CA

10. Source: OGC – “ITIL Refresh: Vendor pre-release briefing”, May 2007
What is a Service?
Source: OGC – “ITIL Refresh: Vendor pre-release briefing”, May 2007
August 9, ITIL: What, Why, How? Copyright © 2007 CA

11. Anatomy of a Service (technical view)
Applications
Firewall
Network
Switch
Load Balancer
Portal
Identity Manager
Web Servers
Router
SAP
PSFT
Siebel
3rd Party Applications
Databases
Mainframe
Database
Web Services
August 9, ITIL: What, Why, How? Copyright © 2007 CA

12. ITIL Service Management (v2)
Service Management is the best known and most mature aspect of ITIL. It is comprised of two volumes: Service Support and Service Delivery.
Service Management
Service Support
Service Delivery
Service Desk
Incident Management
Problem Management
Configuration Management
Change Management
Release Management
Service Level Management
Financial Management
Availability Management
Continuity Management
Capacity Management
August 9, ITIL: What, Why, How? Copyright © 2007 CA

13. Source: Pink Elephant – “What’s New in ITIL v3”, George Spaulding 2007
Core ITIL v3 Library
Source: Pink Elephant – “What’s New in ITIL v3”, George Spaulding 2007
August 9, ITIL: What, Why, How? Copyright © 2007 CA

14. ITIL v2 Service Support mapping to v3
ITIL V2 Process
Primary ITIL V3 Book
Change Management
Service Transition
Configuration Management
Incident Management
Service Operation
Problem Management
Release Management
Service Desk
Service Asset and Configuration Management including the CMDB
CMBD is part of the Configuration Management system (CMS)
Fault Management (ICT Volume)
Knowledge Management (NEW in the sense of service desk)
August 9, ITIL: What, Why, How? Copyright © 2007 CA

15. ITIL v2 Service Delivery mapping to v3
ITIL V2 Process
Primary ITIL V3 Book
Financial Management
Service Strategies
Availability Management
Service Design
Capacity Management
IT Service Continuity Management
Referenced in Service Transition, Service Operation and Continual Service Improvement
Service Level Management
Service Catalogue Management
August 9, ITIL: What, Why, How? Copyright © 2007 CA

16. ITIL Service Management (v3)
Source: OGC – “ITIL Refresh: Vendor pre-release briefing”, May 2007
August 9, ITIL: What, Why, How? Copyright © 2007 CA

17. Source: OGC – “ITIL Refresh: Vendor pre-release briefing”, May 2007
Service Lifecycle
Source: OGC – “ITIL Refresh: Vendor pre-release briefing”, May 2007
August 9, ITIL: What, Why, How? Copyright © 2007 CA

18. Source: Pink Elephant – “What’s New in ITIL v3”, George Spaulding 2007
Service Strategy
Practical Decision making
Business Eco systems
From value chains to value nets
Adaptive processes for customers, services and strategies
Linking to external practices and standards
Managing uncertainty and complexity
Increasing the economic life of services
Selecting, adapting and tuning the best IT service strategies
Provides the guidance on how to design, develop, and implement service management as a strategic asset.
Source: Pink Elephant – “What’s New in ITIL v3”, George Spaulding 2007
August 9, ITIL: What, Why, How? Copyright © 2007 CA

19. Source: Pink Elephant – “What’s New in ITIL v3”, George Spaulding 2007
Service Design
Pragmatic Service Blueprint
Policies, Architecture, Portfolios, service models
Effective technology, process and measurement design
Outsource, shared services, co-source models? How to decide & how to do it
The service package of utility, warranty, capability, metrics tree
Triggers for re-design
Guides the design and development of services and service management processes
Source: Pink Elephant – “What’s New in ITIL v3”, George Spaulding 2007
August 9, ITIL: What, Why, How? Copyright © 2007 CA

20. Source: Pink Elephant – “What’s New in ITIL v3”, George Spaulding 2007
Service Transition
Managing Change, Risk and Quality Assurance
Newly designed Change, Release & Configuration processes
Risk and quality assurance of design
Managing organization & cultural change during transition
Service knowledge management system
Integrating projects into transition
Creating & selecting transition models
Provides guidance for the development and improvement of capabilities necessary to transition new and/or changed services into operations
Source: Pink Elephant – “What’s New in ITIL v3”, George Spaulding 2007
August 9, ITIL: What, Why, How? Copyright © 2007 CA

21. Service Operation Responsive, stable services
Robust end to end operations practices
Redesigned, incident and problem processes
New functions and processes
Event, technology and request management
Influencing strategy, design, transition and improvement
SOA, virtualization, adaptive, agile service operation models
Tailors guidance on achieving effectiveness
and efficiency in the delivery and support of
services such that value is achieved for the
customer and captured by the service provider
Source: Pink Elephant – “What’s New in ITIL v3”, George Spaulding 2007
August 9, ITIL: What, Why, How? Copyright © 2007 CA

22. Continual Service Improvement
Measurements that mean something and improvements that work
The business case for ROI
Getting past just talking about it
Overall health of ITSM
Portfolio alignment in real-time with business needs
Growth and maturity of SM practice
How to measure, interpret and execute results
Sustains the creation and maintenance of
customer value through better design,
introduction, and operation of services
Source: Pink Elephant – “What’s New in ITIL v3”, George Spaulding 2007
August 9, ITIL: What, Why, How? Copyright © 2007 CA

23. Source: Pink Elephant – “What’s New in ITIL v3”, George Spaulding 2007
Shifting Focus
Source: Pink Elephant – “What’s New in ITIL v3”, George Spaulding 2007
August 9, ITIL: What, Why, How? Copyright © 2007 CA

24. Why ITIL?
Why should you implement processes based on the ITIL Framework?

25. The Case for IT Service Management
The Business is more and more dependent on IT.
Complexity of IT constantly increases.
Customers are demanding more for less.
Global competitiveness growing at a rapid rate requiring a more flexible approach to integration.
Stronger focus on controlling the costs of IT.
Low customer satisfaction levels.
August 9, ITIL: What, Why, How? Copyright © 2007 CA

26. Benefits to the Organization
Improve Resource Utilization
Be more competitive
Decrease rework
Eliminate redundant work
Improve upon project deliverables and time
Improve availability, reliability and security of mission critical IT services
Justify the cost of service quality
Provide services that meet business, customer, and user demands
Integrate central processes
Document and communicate roles and responsibilities in service provision
Learn from previous experience
Provide demonstrable performance indicators
Source: Pink Elephant – “The Benefits of ITIL® White Paper”, March 2006
August 9, ITIL: What, Why, How? Copyright © 2007 CA

27. Real World Benefits Procter & Gamble Caterpillar Nationwide Insurance
Started using ITIL in 1999 and has realized a 6% to 8% cut in operating costs. Another ITIL project has reduced help desk calls by 10%. In four years, the company reported overall savings of about $500 million.
Caterpillar
Embarked on a series of ITIL projects in After applying ITIL principles, the rate of achieving the target response time for incident management on Web-related services jumped from 60% to more than 90%.
Nationwide Insurance
Implementing key ITIL processes in 2001 led to a 40% reduction of its systems outages. The company estimates a $4.3 million ROI over the next three years.
Capital One
An ITIL program that began in 2001 resulted in a 30% reduction in systems crashes and software-distribution errors, and a 92% reduction in “business-critical” incidents by 2003.
Source: Pink Elephant – “The Benefits of ITIL® White Paper”, March 2006
August 9, ITIL: What, Why, How? Copyright © 2007 CA

28. Why Implement ITIL
Ultimately IT Service Management is about maximizing the ability of IT to provide services that are cost-effective and meet the expectations and needs of the business.
Streamline service delivery and support processes
Develop repeatable procedures to aid first level support groups
Reduce number of service incidents and outages
Implement standards to do things right the first time
Perform proactive analysis, prevention and resolution
Plan for and ensure future capacity
Define clear services and service targets
Accurately allocate and recover costs
Audit, manage and improve IT processes
Reduce Cost of Operations
Improve Service Quality
Improve User Satisfaction
Improve Compliance
August 9, ITIL: What, Why, How? Copyright © 2007 CA

29. The How
ITIL Implementation Best Practices

30. ITIL is not a step-by-step process
“ITIL Processes can be difficult to implement since ITIL in it's current form describes the "what" but not the "how" of IT service delivery. In other words, a lack of implementation tools and best practices are increasing costs and timelines related to ITIL implementation.”
August 9, ITIL: What, Why, How? Copyright © 2007 CA

31. Each ITIL Initiative is Unique
Source: OGC – “ITIL Refresh: Vendor pre-release briefing”, May 2007
August 9, ITIL: What, Why, How? Copyright © 2007 CA

32. What NOT to do Insufficient Management Buy-in or Budget.
Ignoring the need to market and communicate within & outside IT.
Training internal staff to the Foundation level with the expectation they can then implement ITIL successfully.
No External Baseline Assessment or adoption of a maturity model to Create a valid roadmap.
Thinking that technology alone can address the requirement for ITIL i.e. migrating bad process to new technology so automation is therefore not efficient enough to address IT needs.
Confusing Process with Procedures.
Not dedicating enough resources to the development effort.
Thinking process development equates to process implementation.
Weak documentation effort leads to inconsistent approach with very little chance of repeatability amongst IT Staff.
Failure to address IT Governance alignment.
August 9, ITIL: What, Why, How? Copyright © 2007 CA

33. Recommendations Create a sense of urgency!
Decide/Declare Service Management Strategy
Engage all employees
Create Communications and Awareness campaigns
Focus on areas of pain
Create a Program to transform the organization
Appoint program sponsors and key players
Assess, Design, Build and Implement process refinement
Create an ITSM adoption program with a charter
August 9, ITIL: What, Why, How? Copyright © 2007 CA

34. Recommendations
Develop a phased approach, which includes repeatable and consistent standards for all processes to follow
Breakdown work into “manageable chunks”
Appoint process owners
Begin remediation process
Utilize/Establish program management
August 9, ITIL: What, Why, How? Copyright © 2007 CA

35. Iterative Process What is the vision? Where are we now?
Where do we want
to be?
How do we get
there?
How do we check
we got there?
High Level
Objectives
Assessments
Measurable
Targets
Process
Improvements
Measurement
And Metrics
How do we keep the
momentum going?
August 9, ITIL: What, Why, How? Copyright © 2007 CA

36. Helpful Links www.itsmf.net – IT Service Management Forum.
Tampa Bay Local Interest Group (LIG) meeting – Sept. 22, 2pm.
– itSMF USA Conference, Sept , Charlotte, NC.
– UK Office of Government and Commerce.
– ITSM consulting, events, education.
– Independent education institute.
– Training solutions for IT Management and IT Governance.
August 9, ITIL: What, Why, How? Copyright © 2007 CA

37. Questions? For More Information: T.C. Kaiser
Sr. Customer Solution Architect
CA, Inc.
mobile
August 9, ITIL: What, Why, How? Copyright © 2007 CA