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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.
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
Obstacles Prevent Effective EngagementOverwhelming 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
Disparate Systems Reduce EfficiencyNo 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
IT Governance LandscapeWhat 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
What is the Information Technology Infrastructure Library (ITIL)?History and Definitions
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
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
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
Source: OGC – “ITIL Refresh: Vendor pre-release briefing”, May 2007What is a Service? Source: OGC – “ITIL Refresh: Vendor pre-release briefing”, May 2007 August 9, ITIL: What, Why, How? Copyright © 2007 CA
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
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
Source: Pink Elephant – “What’s New in ITIL v3”, George Spaulding 2007Core ITIL v3 Library Source: Pink Elephant – “What’s New in ITIL v3”, George Spaulding 2007 August 9, ITIL: What, Why, How? Copyright © 2007 CA
ITIL v2 Service Support mapping to v3ITIL 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
ITIL v2 Service Delivery mapping to v3ITIL 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
ITIL Service Management (v3)Source: OGC – “ITIL Refresh: Vendor pre-release briefing”, May 2007 August 9, ITIL: What, Why, How? Copyright © 2007 CA
Source: OGC – “ITIL Refresh: Vendor pre-release briefing”, May 2007Service Lifecycle Source: OGC – “ITIL Refresh: Vendor pre-release briefing”, May 2007 August 9, ITIL: What, Why, How? Copyright © 2007 CA
Source: Pink Elephant – “What’s New in ITIL v3”, George Spaulding 2007Service 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
Source: Pink Elephant – “What’s New in ITIL v3”, George Spaulding 2007Service 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
Source: Pink Elephant – “What’s New in ITIL v3”, George Spaulding 2007Service 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
Service Operation Responsive, stable servicesRobust 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
Continual Service ImprovementMeasurements 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
Source: Pink Elephant – “What’s New in ITIL v3”, George Spaulding 2007Shifting Focus Source: Pink Elephant – “What’s New in ITIL v3”, George Spaulding 2007 August 9, ITIL: What, Why, How? Copyright © 2007 CA
Why ITIL? Why should you implement processes based on the ITIL Framework?
The Case for IT Service ManagementThe 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
Benefits to the OrganizationImprove 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
Real World Benefits Procter & Gamble Caterpillar Nationwide InsuranceStarted 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
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
The How ITIL Implementation Best Practices
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
Each ITIL Initiative is UniqueSource: OGC – “ITIL Refresh: Vendor pre-release briefing”, May 2007 August 9, ITIL: What, Why, How? Copyright © 2007 CA
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
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
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
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
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
Questions? For More Information: T.C. KaiserSr. Customer Solution Architect CA, Inc. mobile August 9, ITIL: What, Why, How? Copyright © 2007 CA
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