Driving Value from IT Services using ITIL and COBIT 5 July 24, 2013 Gary Hardy ITWinners

Copyright © 2013 ITWinners Poor IT Governance can cause major problems 2

Copyright © 2013 ITWinners Risky and challenging IT decisions 3

Copyright © 2013 ITWinners Risky and challenging IT decisions 4

Copyright © 2013 ITWinners Risky and challenging IT decisions 5

Copyright © 2013 ITWinners Risky and challenging IT decisions 6

Copyright © 2013 ITWinners Risky and challenging IT decisions 7

Copyright © 2013 ITWinners Risky and challenging IT decisions 8

Copyright © 2013 ITWinners Risky and challenging IT decisions 9

Copyright © 2013 ITWinners Risky and challenging IT decisions 10

Copyright © 2013 ITWinners Risky and challenging IT decisions 11

Copyright © 2013 ITWinners Need to improve IT service delivery Critical to the success of enterprise objectives Outsourcing options – new service paradigms – Cloud etc. Procurement – being successful with service acquisition & provision Regulatory pressures What’s the acceptable level of control? Increasing risks, such as security and privacy Focus on IT costs Value delivered and ROI Cost reduction – budgets are tightening, need to spend wisely Low management trust and confidence Alignment – doing what matters most with scarce resources IT processes often poorly defined and immature Top management IT service issues 12

Copyright © 2013 ITWinners IT Service capabilities need to be: Defined according to customer’s requirement Prioritised according to overall business needs Measurable in terms meaningful to the customer Specified in terms of operational requirements Stable and reliable – appropriate quality of service Managed and controlled (so objectives are met and risks are managed) Cost effective (so scarce resources can be optimised, and service providers can be profitable) Making sure services meet business needs 13

Introducing COBIT 5 IT is complex IT Governance doesn’t have to be! 14

Copyright © 2013 ITWinners Realizing Benefits Optimizing Risks Optimizing Resources COBIT 5 : Creating Value for the Enterprise 15

Copyright © 2013 ITWinners COBIT5 provides an over-arching management framework “WHAT” to do for all IT activities Management tools to drive top down direction ITIL provides the “HOW” for service management COBIT5 helps link ITIL best practices to real business requirements The “WHAT” to the “HOW” COBIT5’s assessment tools: Tell management – is the ship on course? Help get management commitment to drive change How COBIT and ITIL add value 16

Copyright © 2013 ITWinners Investment Opportunity Business Case IT Project IT Application Capability Business Process Development IT Service Capability Business Process Business Value IT Infrastructure Capability Opportunity Benefit Realisation Costs Example 1 - Delivering value from an IT service COBIT 5 ITIL 17

Copyright © 2013 ITWinners Required Business Outcomes from IT Services Service Level Agreements Reliable Processes Based on Good Practices Are they aligned? Example 2 - Aligning IT services to the business Service Delivery Operational Level Agreements 18

Copyright © 2013 ITWinners COBIT5 Enterprise Goals & Risks COBIT5 IT-related Goals COBIT5 IT Process Good Practices ITIL IT Service Capabilities Are they aligned? Example 2 - Aligning IT services to the business 19

Copyright © 2013 ITWinners Example 3 - Developing IT Solutions and Services Step 1: Aligning objectives: EDM01 - governance structures and decision mechanisms to drive business engagement and accountability for business requirements. EDM02 - stake-holders articulate business needs via business cases with clear description of the desired benefits. EDM04 - direction for how services should be sourced in support of business needs. APO01 - policies, guiding principles, processes, and clear roles and responsibilities in place regarding definition of requirements and solutions and services. APO02 - alignment between strategic business and IT objectives. APO03 - IT services developed in a standardized way to be integrated with business processes and information architectures. APO08 - effective communication between business process owners and IT service managers to define service requirements. APO09 - business oriented SLAs approved by business stakeholders. 20

Copyright © 2013 ITWinners Example 3 - Developing IT Solutions and Services Step 1: Aligning objectives: Focus on these COBIT 5 ProcessesITIL 2011 Section EDM01 Ensure Governance Framework Setting and Maintenance SS5.1 Governance EDM02 Ensure Benefits DeliverySS Preparing a Business Case; CSI5.6 Return on Investment EDM04 Ensure Resource OptimisationSS5.1 Governance; SS5.4 IT Service Strategy and Enterprise Architecture APO01 Manage the IT Management Framework SS5.2 Establishing and Maintaining a Service Management System; SS6 Organizing for Service Strategy; SD6 Organizing for Service Design; ST6 Organizing for Service Transition; ; SO6 Organizing for Service Operation; CSI 4.1 The Seven-Step Improvement Process; CSI5.2 Assessments APO02Manage StrategySS4.1 Strategy Management for IT Services; SS5.3 IT Service Strategy and the Business APO03 Manage Enterprise ArchitectureSS5.4 IT Service Strategy and Enterprise Architecture APO08 Manage RelationshipsSS4.4 Demand Management; SS4.5 Business Relationship Management APO09 Manage Service AgreementsSS4.2 Service Portfolio Management; SS4.4 Demand Management; SD4.2 Service Catalogue Management; SD4.3 Service Level Management 21

Copyright © 2013 ITWinners Example 3 - Developing IT Solutions and Services Step 2: Designing and developing solutions and services: BAI01 - planning and monitoring as a programme, focused on business outcomes and delivery of value, monitored by a value management office; BAI02 - requirements are understood and defined as business outcomes BAI03 - solutions are identified and verified to be able to deliver the desired business outcomes, and effectively sourced. BAI04 - infrastructure capacity and availability requirements have been considered. BAI05 - organisational change aspects in the business – how people and processes need to be adapted to meet the new way of working. 22

Copyright © 2013 ITWinners Example 3 - Developing IT Solutions and Services Step 2: Designing and developing solutions and services: Focus on these COBIT 5 ProcessesITIL 2011 Section BAI01 Manage Programmes and ProjectsSS5.6.7 The Project Charter; SS5.6.7 Go/no go; SD4.1 Design Coordination BAI02 Manage Requirements Definition SD4.1 Design Coordination; SD5.1 Requirements Engineering; SD8.2 Service Level Requirements BAI03 Manage Solutions Identification and Build SS5.5 IT Service Strategy and Application Development; SS5.6 Establishing a Strategy for Implementing Service Management Processes; SD5.2 Management of Data and Information; SD5.3 Management of Applications; SD7.1 Service Design Tools; SD7.2 Service Management Tools BAI04 Manage Availability and CapacitySD4.4 Availability Management; 4.5 Capacity Management BAI05 Manage Organisational Change Enablement SS5.6.2 Defining the Vision and Mission for the Service Management Implementation; SS6.1 Organizational Development; SS6.2 Organizational Change; CSI4.1 The Seven-Step Improvement Process 23

Copyright © 2013 ITWinners Other Examples 4. Delivering value from an IT service 5. Aligning IT service level agreements to business objectives 6. Ensuring IT services are defined and delivered securely 7. Managing enterprise and IT service supplier relationships including reference to Cloud 24

Copyright © 2013 ITWinners Importance of Skills Development Current COBIT 5 Training Approach Foundation ImplementationAssessor Do I understand the fundamentals of the COBIT Framework? How do I implement COBIT effectively? How do I measure & improve COBIT? 25

Copyright © 2013 ITWinners Importance of Skills Development Current COBIT 5 Training Approach Foundation ImplementationAssessor Do I understand the fundamentals of the COBIT Framework? How do I implement COBIT effectively? How do I measure & improve COBIT? Interfacing ITIL and COBIT Practical Guidance 26

Copyright © 2013 ITWinners Importance of Skills Development Current ITIL Training Approach ITIL Foundation ITIL IntermediateITIL MALC Do I understand the fundamentals of the ITIL Framework? How do I apply ITIL effectively? Managing the Lifecycle 27

Copyright © 2013 ITWinners Importance of Skills Development Current ITIL Training Approach ITIL Foundation ITIL IntermediateITIL MALC Do I understand the fundamentals of the ITIL Framework? How do I apply ITIL effectively? Managing the Lifecycle Interfacing ITIL and COBIT Practical Guidance 28

Copyright © 2013 ITWinners Contact details: Gary Hardy Thank you 29