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ITIL from a business perspective Whats its value and what to focus on.

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Presentation on theme: "ITIL from a business perspective Whats its value and what to focus on."— Presentation transcript:

1 ITIL from a business perspective Whats its value and what to focus on

2 Executive summary There is at least 25% savings and improvement potential in any IT organization ITIL is acknowledged as the global standard for the process design and running of IT delivery organizations. Although moving towards the domain of application development, its core value is in IT infrastructure (data center) services Key asset 1 Service catalog: design of services that are recognized by and have value to the customer. It breaks down in components that need to be managed, maintained and innovated by IT to deliver sustainable value Key asset 2 Continual Service Improvement (Lean SixSigma): a structured approach for incremental improvement of both delivered value and cost effectiveness of the IT organization As a prerequisite to the above the following needs to be in place: Incident Management Request fulfillment Change Management Problem management Configuration Management, and A common Service Management tool (you cant improve what you dont measure) 2

3 Agenda 3 Conclusions and recommendations Improvement Services Introduction

4 Quint Wellington Redwood Independent Management Consulting & Education Group Founded in 1992 > 200 consultants globally Servicing global & local clients operating in more than 49 countries and across all continents Focusing on organizational IT-management challenges across 5 consulting practices and 1 education practice Extensive knowledge and insight into the IT and Sourcing marketplace gained through continual market research and well-established relationships with partners (i.e. APMG, ISACA, IAOP) and service providers. Proven IP, methodologies and tools. Recognized Thought Leader in the industry. 4

5 Global Coverage 5 Sao Paulo Dubai Miami Amsterdam Madrid Milan Athens Mumbai Bangalore Tokyo Kuala Lumpur Riyadh New York Paris Hong Kong Brussels San Diego Rome Delhi

6 Client Examples – Cross Industries 6

7 Quint Consulting Services 7 Business Information Mgt Market Orientation Strategy Design Improvement Audit Architecture & Innovation Strategy Assessment Second opinion Application rationalization Transformation Mgt Sourcing & Benchmarking Strategy Deal making Contracting Mediation Benchmarking Sourcing & Transition Mgt Sourcing & IT Governance Strategy Assessment Design Improvement Co-sourcing IT Performance & Quality Mgt Strategy Assessment Design Improvement IT Auditing Lean Government & Healthcare Finance Trade, Transport & Industry Retail & Services UtilitiesTelco

8 Our way of working: Dare to challenge

9 IT Service Management defined IT Service Management definition: A set of specialized organizational capabilities for providing value to Customers in the form of Services ( Service Design, p. 11) Another definition: IT Service Management is the effective and efficient, process driven management of quality IT Services A professional practice supported by knowledge, experience, and skills, focusing on a Service-oriented approach 9

10 The ITILv3 Service Lifecycle encompasses all processes for successful service delivery… 10 ©OGC

11 … which is successful for various reasons ITIL embraces a practical approach to service by adapting a common framework of practices that unite all areas of IT service provision towards a single aim – that of delivering value to the business. Vendor-neutral ITIL service management practices are applicable in any IT organization because they are not based on any particular technology platform or industry type. ITIL is owned by UK government and is not tied to any commercial proprietary practice or solution Non-prescriptive ITIL offers robust, mature and time-tested practices that have applicability to all types of service organizations. It continues to be useful and relevant in public and private sectors, internal and external service providers, small, medium and large enterprises, and within any technical environment. Best practice ITIL represents the learning experiences and though leadership of the worlds best-in-class service providers 11

12 slide 12 ITIL v3 contains various processes and Functions Continual Service Improvement Service Strategy Service Design Service Transition Service Operation Financial Mgmt. Strategy Generation Demand Mgmt. Service Portfolio Mgmt. Service Level Mgmt. Availability Mgmt. Capacity Mgmt. IT Service Cont. Mgmt. Info Security Mgmt. Service Catalog Mgmt. Supplier Mgmt. Change Mgmt. Release and Deployment Mgmt. Release and Deployment Mgmt. Transition Planning and Support Service Validation and Testing Evaluation Knowledge Mgmt. Service Desk (Function) Incident Management Problem Management Access Management Event Management Request Fulfillment Technical Mgmt (Function) Applications Mgmt (Function) IT Operations Mgmt (Function) 7-Step Improvement Process, Deming Cycle, CSI Model Service Reporting Service Measurement From ITIL V2 New in ITIL v3 Functions Service Asset and Config. Mgmt. Service Asset and Config. Mgmt.

13 Agenda 13 Conclusions and recommendations Improvement Services Introduction

14 slide 14 An IT Service enables business services and consists of IT Assets and Resources Business Service A Business Process 1 Business Process 2 Business Process 3 IT Service XIT Service Y IT Assets & Resources Definition of a Service: Services are a means of delivering value to Customers by facilitating the outcomes Customers want to achieve without the ownership of specific costs and risks".

15 Slide 15 Service Value can be defined by Utility and Warranty Service Value = Utility + Warranty Performance supported? Constraints removed? Available enough? Capacity enough? Continuous enough? Secure enough? Utility Warranty Fit for purpose? Fit for use? Value

16 Slide 16 Service Catalog Management Business Process1 Business Process2 Business Process3 Business Service Catalogue Service AService BService C Service D Service E Technical Service Catalogue Support Services Hardware Software Applications Data The Service Catalogue

17 Slide 17 Service Level Management Customer IT Organization Internal Providers (Departments) External Providers (Suppliers) Service Level Agreement Operational Level Agreement Underpinning Contract Service Level Requirements SLR SLA UC OLA

18 Slide 18 Prerequisites for implementing Service Catalog Operational processes Incident management Service Request Management Change Management Problem Management Configuration Management Tooling Common Service Management tooling Systems management tooling (preferably)

19 IPW Red – Production time in the business Light Green – Changes and projects Yellow – Proactive IT Dark Green –Financial Performance Dark Blue – IT Continuity ICT Domain Commercial Policy HRM Strategy ArchitectureFinance Relationship Management Service Level Management Service Planning Service Development Financial Mgnt. Security Mgnt. Service Build & Test Service Design Capacity Mgnt. Availability Mgnt. Continuity Mgnt. Change Mgnt. Incident Mgnt. Problem Mgnt. Configuration Mgnt. Service Operations Release Mgnt. Operations Mgnt. Service desk BITA Information Mgnt. ICT Value Demand Mgnt. Business Support Application Mgnt. Functional Mgnt. Operations Support Strategic Sourcing Supplier Portfolio Mgnt. Supply Mgnt. Contract Mgnt. Purchase Mgnt. SITA Strategic supplier processes Strategic business processes Business planning Business operations Supplier Domain Business Domain Supplier operations Supplier planning

20 Agenda 20 Conclusions and recommendations Improvement Services Introduction

21 IT Management Agenda Topics How can my IT Organization improve its Performance towards the Business? How do I get the most out of my current IT organization? How do I get my IT Organization to be customer focused? Does my IT organization have the right size/cost level? My customers do not recognize the added value of my IT Organization My customers think the Time-to-Market of new services is too long What is the added value of compliancy?

22 The traditional ITIL implementation Process-based Implementation Key Unit of planning: Process Maturity Key Success Indicator: Maturity improvement Best suits organizations that: Are geographically widespread Do not have a (basic) common tool Have diverse backgrounds (unconsolidated M&As) Have been given enough time to sort out the problems Potential pitfalls: Non optimized performance Parochial: not customer focused Focus on individual processes with a lack of integral overview No link between processes and functions Too many KPIs No clear goals Processes compliant but customers still not satisfied

23 The performance based ITIL implementation Value driven Implementation Key Unit of planning: Value Drivers Key Success Indicator: Measured improvement Best suits organizations that require rapid results in: Reducing lost production hours due to IT Improving Time to Market Improving relationship between Business and IT Better anticipate future developments Have a (basic) common tool (required) Have basic processes already implemented (required)

24 Principles of serving our IT customers

25 IT Services and Value Drivers

26 Manage Execution Effectiveness of Changes Time to Market of Changes Lost Production Hours Number of Proactive Changes Quality of Plans TrendValue Driver Management Imperative: Communication with the (IT) Customer

27 Lost Production Hours No IT Outages New Use of IT Maintain current functionality Quick Time to Market Of Changes Basic IT Services

28 How does this relate to ITIL and in particular to Incident Management? What is an Incident? Any event not part of the standard operation of a service which (may) cause an interruption to, or a reduction in, the quality of that service Goals of Incident Management process: Restore normal service operation as quickly as possible Minimize the adverse impact on the business operations Ensuring that the best possible levels of service quality and availability are maintained according to SLAs

29 Incident Management Process Monitoring Ownership Incident Detection And Recording Service Request? Service Request Procedure Incident Closure Yes Classification and Initial Support No Resolution And Recovery Tracking Investigation And Diagnosis Communication

30 Lost Production Hours IT Downtime can be an expensive business A. No. of incidents and resolution times B. Time that incidents are open C. Time that IT customers cannot work D. Excess cost and lost revenue

31 Earning and burning capacity

32 Performance Based Implementation

33 Management dashboards Weekly KPI Dashboard Weekly Team Dashboard Daily Team Dashboard M4 Management Level Lost Production Hours Standardization Rate Workload KPIs … M5 Management Level Lost Production Hours Average Case Turnaround SLA Cases by Team Workload … M6 Management Level Lost Production Hours Actual Workload Resolved Cases SLA per Customer …

34 Lean IT Principles 34

35 Consistency triangle 35

36 Implementation focussed on performance Improvement Bi-weekly Action Cycle

37 PBSM ROI Study (based on client data)

38 Agenda 38 Conclusions and recommendations Improvement Services Introduction

39 Conclusions and recommendations 1.Establish a baseline for process maturity and performance 2.Fortify operational processes and Service Management Tooling where needed 3.Implement Service Catalog and Service Level Management 4.Develop a leadership team to drive CSI through the organization 5.Initiate CSI programs 39

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