1. Service Catalog Management and ITIL V3
GOAL: The goal of Service Catalog Management is to provide a single source of information about all the services available to the customer currently and in the near future. With this information, the service provider is able to consistently deploy services into production and establish effective use of the service in order to deliver value to the customer during Service Operation.
There is a Policies, Objectives & Scope document available within this toolkit.
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2. The Service Catalog
Objective: To enable the service provider and the customer to clearly understand the services available and being delivered
Service Catalog Management interfaces with and depends on the activities of:
Service Portfolio Management
Service Level Management
Service Asset and Configuration Management
Business Relationship Management
Demand Management
Knowledge Management
When a person walks into a restaurant, they expect to see a menu. From this menu, they are able to choose what their meal will be composed of. The quality of the meal is based on the service, the ingredients, and the preparation. The service catalog is similar to the menu and allows a customer to choose what their service delivery package will include. The Service Catalog goes beyond the menu concept though, by detailing what goes into each menu item—its ingredients (components), its preparation (technologies and architectures), and service quality (service level agreements).
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3. Service Portfolio Management
Service Strategy
From an ITIL perspective, the service catalog is a major component of the service portfolio; however, how the two entities are managed is distinctly different. For the service catalog, the goal is to manage the information about the operational services available to the customer and those transitioning into an operational state. The service portfolio is intended to manage the value of all services to the business, including proposed or developing services, available or deployable services, and retired services.
Service Portfolio Management
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4. Value of Service Portfolio
The Service Portfolio allows the business to make the best decisions related to investments. The Service Portfolio enables the customer to understand what will be delivered in a service, and under what conditions. The Service Portfolio is the first step in realizing the benefits of a service, optimizing the risks associated with the service, and optimizing the resources allocated to the service throughout the entire service lifecycle.
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5. Service Portfolio Service Portfolio Configuration Management System
Service Pipeline
Service Catalog
Retired Services
Customer Portfolio
Supplier and Contract Management Information System
Application Portfolio
Customer Agreement Portfolio
Project Portfolio
CMDB
The diagram presented here demonstrates the relationships between several information sources and the service portfolio and service catalog. The service catalog is the central component of the service portfolio. The service pipeline represents all the services which are currently being considered or under development by the service provider, but are not yet available to the customer. When development is complete, the service is considered deployable and is now contained within the service catalog. Since all services have a lifecycle, some services no longer have value and are removed from the catalog. However, the information about these retired services can still be useful and are still part of the service portfolio.
The configuration management system is a set of tools used to manage the configuration data of the service provider as well as information about incidents, problems, changes, known errors, and releases related to configuration, and customer information such as users, locations, suppliers, etc. The CMS will store this information and show relationships between service assets, configuration items, and other entities—effectively mapping all the existing components of the service to service description in the service catalog.
The tools of the configuration management system are:
Customer Portfolio – A database listing all potential and existing customers of the service provider. The information about the customer can be mapped to the service description to show how many customers are partaking in a specific service.
Application Portfolio – A database used to manage the lifecycle of all applications, describing the key attributes of the applications. The information about the application can be mapped to the service description to show which applications are being used by each service.
Suppliers and Contract Management Information System (SCMIS) – All or part of a service may be provided by an external supplier. The SCMIS maintains all information and agreements related to suppliers. This information can be mapped to the service description to identify what services are using suppliers and who the suppliers are.
Customer Agreement Portfolio – Each service provider to a customer will have an agreed contract or agreement associated with it. This database is used to maintain these contracts and agreements, thus making another association between the service and the customer, specifically in terms of requirements and obligations.
Project Portfolio – A database for managing chartered projects, many of which are associated with developing services, deploying services, or improving services. Their association with service descriptions ensures that projects are not duplicated and that similar projects can be consolidated if appropriate.
From Service Strategy, page 173
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6. Terminology Service Asset Utility Customer Asset Warranty Market
Every service can be described in terms of utility (fit for purpose) and warranty (fit for use). Utility describes the functionality of the service, what it does or provides to the customer.
Warranty describes the assurance that a service will meet any agreed requirements from the customer.
An asset is any resource or capability. The customer has assets which are used to achieve a business outcome, such as an enterprise application. These are called customer assets.
Service assets are the resources and capabilities used to deliver a service to the customer: the components needed to support the availability, performance, security, and continuity of the enterprise application.
Market spaces are existing and potential areas where customers reside, who may benefit from the services offered by the service provider or where the service provider can develop services of value to existing or potential customers.
Market
spaces
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7. Service Models
A service model is a list or diagram of essential items required to deliver a service. The service model will show how these items are used and how they are related to each other.
A service model will logically demonstrate how service assets interact with customer assets to create value. Service models show:
Structure of a service – physical attributes
Dynamics of a service – activities, flow of information
Service Models can be used to:
Understand what is needed to deliver a service
Identify critical components and assets to the service
Demonstrate value creation
Map personnel and assets to service delivery
Provide a blueprint of designing a service
Assess the impact of changes to existing services
Determine risks associated with using assets to deliver multiple services, or what additional investments are needed
Identify relationships between technology, personnel, and processes
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8. Business Relationship Management
Service Strategy
The primary purpose of the Business Relationship Management process is to develop and maintain the relationship between the customer and the service provider. Within this purpose, the process can be used to identify the needs of the customer, translate those needs into IT-related goals, and ensure those goals are being met through service delivery to the customer. An effective service catalog aids the business relationship manager in this endeavor.
Business Relationship Management
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9. Customers, Services, and Service Assets
Customer A
Customer B
Customer C
Service A
Service B
Service C
Service D
The diagram above shows several relationships between customers, services, and service assets.
From the perspective of the customer (Customer A), the services (Service A) provided to the customer are uniquely designed to support the customer, and the service assets (Service Asset A) are dedicated to customer. While this may be a valid solution, it is often the most expensive for the service provider and the customer.
In most market spaces, the service provider will benefit from offering two or more distinct services, enabling more customers to be attracted to them. In some cases, multiple customers may be attracted to the same service, as illustrated with Service C where both Customers B and C are served. The role of Business Relationship Manager is to ensure that the customer’s need and the services provided are aligned.
Additionally, multiple service assets may be required to support a single service (Service C requires access to Service Assets C and D). At times, a Service Asset may be shared between multiple customers (Customers B and C are both using Service Asset D in order to receive Services C and D).
While the Business Relationship Manager may need to understand these relationships to manage the relationships with the customers, the information related to these relationships are maintained within the Service Catalog. Business Relationship Management will also be the entry point for identifying and communicating customer requirements relevant to these services. Understanding the relationships between customers, services, and service assets allows the service provider to assess the impact of evolving or changing requirements on the services from either the customer or technology.
Service Asset A
Service Asset B
Service Asset C
Service Asset D
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10. Customer Satisfaction
Service Portfolio/Catalog
Service Delivery
Business Outcomes
Customer
Satisfaction
requirements
The key measurement of Business Relationship Management is customer satisfaction, which is obtained when the services delivered to the customer facilitate the achievement of the customer’s business outcomes. The quality of the service increases as the number of requirements from the customer is increasingly met.
The service catalog for all available services should be a central point for understanding the customer’s business outcomes, their requirements on the service(s), and how the services are aligned and delivered to facilitate the desired outcomes of the customer.
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11. Service Strategy Demand Management
Demand is a key factor in understanding a service and what is required by the service provider to ensure satisfaction in the service. Through service portfolio management and business relationship management, service requirements have focused on what the service does, when it should be available, its minimum performance levels, risks and potential threats to security, and criticality of the service. Now, it is time for Demand Management to determine and monitor how the service is used and by how many users.
Demand Management
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12. Identifying and Forecasting Demand
capacity
The diagram above shows the demand on three different services for a typical day relative to the allocated capacity. The first service (in red) peaks around noon and actually exceeds its allocated capacity—potentially resulting in service disruptions, performance issues, and increased incidents. The second service (in blue) peaks during mid-afternoon and will come close but never exceed its allocated capacity. The third service (in green) remains constant throughout the day and never really peaks or comes close to its allocated capacity. In this situation, the allocated capacity is considered underutilized and is expensive to maintain.
Given these three services, some decisions can be made about how to structure service delivery. For instance, capacity can be reallocated temporarily to support peak periods for each service, particularly the red service around noon. Or capacity from the green service can be permanently reallocated to the red service.
Demand Management is a process used to identify and forecast the extent by which a service is required at different periods of time and assists in developing appropriate service packages to support the customer. Used strategically, Demand Management provides input on how much capacity is required and when to facilitate the customer’s outcomes. Used operationally, Demand Management will monitor the customer’s use of the service and future changes with the customer to predict changes in demand and, subsequently, the impact on the existing service infrastructure.
12 am
6 am
12 pm
6 pm
12 am
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13. Service Level Management
Service Design
Service Level Management
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14. Activities of Service Level Management
Service Design
Continual Service Improvement
Determine Requirements
Monitor
Development
Delivery
Service Level Management (SLM) is a process that is found within two Service Lifecycle phases.
Within Service Design, Service Level Management is concerned with:
Designing and planning the SLM process and Service Level Agreement (SLA) Structure
Working with Service Catalog Management to design and produce the Service Catalog
Determining the requirements of customer groups to produce Service Level Requirements (SLRs)
Negotiating and agreeing upon the relevant Service Level targets with customers to produce Service Level Agreements
Negotiating and agreeing upon the support elements required by the internal IT groups and external suppliers to produce Operational Level Agreements (internal) and Underpinning Contracts (external)
Within Continual Service Improvement, Service Level Management is concerned with improving services and processes through constant:
Monitoring
Reporting
Evaluating
Improving
Negotiate & Agree
Design & Plan Process
Report
Improve
Evaluate
Source: The Art of Service
Copyright: The Art of Service 2008

15. Terminology (1) Operational Level Agreement Service Catalog
Service Level Agreement
Service Level Requirements
Service Level Agreements (SLAs) - Written agreement between a service provider and customers that documents agreed service levels for a service
Service Catalog - Written statement of IT services, default levels, and options
Underpinning Contract (UCs) - Contract with an external supplier that supports the IT organization in their delivery of services
Operational Level Agreement (OLAs) - Internal agreement that supports the IT organization in their delivery of services
Service Level Requirements - Detailed recording of the customer’s needs
Underpinning Contract
Copyright: The Art of Service 2008

16. Service Level Management
Terminology (2)
Supplier Management
Service Level Management
Internal
suppliers
External
SLA
OLA UC
Customers
Question:
What are the roles of OLAs and UCs?
They are agreements with the internal IT departments and external suppliers on how they support the IT organization in meeting the Service Level Agreements.
Use your own practical example here: I describe how McDonald’s has the SLA stating that they will get your food to you within two minutes of your order, or it’s free.
I discuss what needs to occur within that particular McDonald’s restaurant in order for this to happen (OLAs): fries, burgers, drinks, cashiers, etc.
I then discuss what external suppliers need to do to support this (Underpinning Contracts): food supplies, consumables, maintenance, power, electricity, EFTPOS lines for point of sale, etc.
Without any of these things, the SLA would be in danger of being breached.
Copyright: The Art of Service 2008

17. SLA Lifecycle Create Service Catalog
Discuss Service Level Requirements with customer
Map against Service Catalog
Sign Service Level Agreement
Ongoing (frequent) review of achievements
Appendices (where appropriate)
Review and renew SLA
There are more information in the Business and IT Service Mapping document within this toolkit.
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18. Configuration Management
Service Transition
Service Asset and
Configuration Management
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19. Service Configuration
IT Service
System A
System B
Service Hardware A
Application A
Network A
Service Hardware B
Application B
The diagram shows a simplified example of the relationships between configuration items of a typical service. The Configuration Management System will gather and maintain information relevant to each of the configuration items listed. By associating them with a particular service within the Service Catalog, the service provider will be able to assess the impact of service changes on the existing configuration items, as well as the impact of changes to configuration items on the service itself.
Processor
Memory
Version 1
Version 2
Database Storage
Copyright: The Art of Service 2008

20. Tracking Activities
In addition to configuration information and attributes, the Configuration Management System will also track activities related to the configuration items it manages, including:
Incidents
Problems
Changes
Known Errors
Releases
By tying together the information generated through several service management processes, a person reviewing the health and performance of a configuration item can make an informed decision about its value to the service. With relationships established between the service (as described in the service catalog) and its servicing configuration items (as detailed in the configuration management system), a comprehensive analysis of the service’s value can be obtained, as well as possible opportunities for improvement.
Copyright: The Art of Service 2008

21. Service Transition Knowledge Management
The purpose of knowledge management is to enable people to share perspectives, ideas, experience, and information; make these available for decisions; and improve the efficiency within the service environment. In the context of the service catalog management, knowledge management answers two questions:
What knowledge is considered valuable for inclusion in the service catalog and where can it be obtained?
How can the information contained within the service catalog be used to support the design, transition, operation, and improvement of services?
Knowledge Management
Copyright: The Art of Service 2008

22. Service Portfolio Incidents Problems Changes Releases
Configuration Management System
Service Pipeline
Service Catalog
Retired Services
Customer Portfolio
Supplier and Contract Management Information System
Application Portfolio
Customer Agreement Portfolio
Project Portfolio
CMDB
Releases
Changes
Known Errors
Problems
Service Requests
Incidents
We first saw the left portion of the diagram here when discussing the Service Portfolio to point out the relationships between the service catalog and other service management tools. Here, we expand those established relationships to include data acquired from other service management tools through the configuration management system. Everything presented in this new diagram represents a simplified version of the Service Knowledge Management System.
The Service Knowledge Management System (SKMS) is the domain of the Knowledge Management process; however, it is important to realize that the individual components of the SKMS are owned and operated by various service management processes. What Knowledge Management ensures is that the creation of knowledge from all these components is consistent and follows some basic rules, particularly in terms of document control and record management. In addition, Knowledge Management endeavors to evaluate and improve the quality of information within the service organization.
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23. Service Catalog Management
Service Design
Service Catalog Management
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24. Service Catalog Management
GOAL:
To ensure that a Service Catalog is produced,
Maintained, and contains accurate information on all
operational services and those ready for deployment.
You can find more information in the Objectives and Goals templates provided within this toolkit.
Copyright: The Art of Service 2008

25. Scope
The scope of the Service Management process is to provide and maintain accurate information on all services that are being transitioned or have been transitioned to the live environment.
The Service Catalog Management activities should include:
Definition of the service
Production and maintenance of an accurate Service Catalog
Interfaces, dependencies, and consistency between the Service Catalog and Service Portfolio
Interfaces and dependencies between all services, and supporting components and Configuration Items (CIs) within the Service Catalog and the CMS
Examples of Service Catalogs and a Service Catalog template are available within this toolkit:
Service Catalog
Service Catalog 1
Service Catalog 2
Price List
Copyright: The Art of Service 2008

26. The Service Catalog has two aspects:
Business Service Catalog
Technical Service
Catalog
Business Service Catalog: contains details of all the IT services delivered to the customer, together with relationships to the business units and the business process that rely on the IT services. This is the customer view of the Service Catalog.
Technical Service Catalog: contains details of all the IT services delivered to the customer, together with relationships to the supporting services, shared services, components, and Configuration Items necessary to support the provision of the service to the business. This should underpin the Business Service Catalog and not form part of the customer view.
An example of this type of Service Catalog, as described in ITIL V3, is available within this toolkit:
Example Service Catalog
Copyright: The Art of Service 2008

27. Business Service Catalog
The Service Catalog
Business Service Catalog
Business Process 1
Business Process 2
Business Process 3
Service A
Service B
Service C
Service D
Service E
This demonstrates the Business Service Catalog and Technical Service Catalogs and the different views they represent.
There are more information on Service Options available within this toolkit.
© Crown Copyright 2007 Reproduced under license from OGC
Support Services
Hardware
Software
Apps
Data
Technical Service Catalog
Copyright: The Art of Service 2008

28. Key Activities
The key activities within the Service Catalog Management process should include:
Agreeing and documenting a service definition with all relevant parties
Interfacing with Service Portfolio Management to agree on the contents of the Service Portfolio and Service Catalog
Producing and maintaining a Service Catalog and its contents in conjunction with the Service Portfolio
Interfacing with the business and IT Service Continuity Management on the dependencies of business units and their business processes with the supporting IT services contained within the Business Service Catalog
Interfacing with support teams, suppliers and Configuration Management on interfaces and dependencies between IT services and the supporting services, components, and CIs contained within the Technical Service Catalog
Interfacing with Business Relationship Management and Service Level Management to ensure that the information is aligned to the business and business process
Further information is available in Roles and Responsibilities of Service Catalog Management and Service Level Management within this toolkit.
Copyright: The Art of Service 2008

29. Inputs and Outputs
Input - Sources of information relevant to the Service Catalog Management process
Output - New services, changes to existing services, or services being retired
Sources of information should include:
Business information from the organization’s business plan, IT strategy, and financial plan, and information on their current and future requirements from the Service Portfolio
Business Impact Analysis providing information on the impact, priority, and risk associated with each service or changes to service requirements
Business requirements including details of any agreed, new, or changed business requirements from the Service Portfolio
The Service Portfolio and CMS
Feedback from all other processes
The process outputs of SCM are:
The documentation and agreements of a ‘definition of the service’
Updates to the Service Portfolio containing status of all services. The Service Catalog should contain the details and current status of every live service provided by the service provider or service being transitioned into the live environment, together with the interfaces and dependencies.
You can find more information on Service Design - The Big Picture and the Key Inputs and Outputs of Service Design, including the position and roles of the Service Catalog in supporting documents within this toolkit.
Copyright: The Art of Service 2008

30. Information Management
The key information is that contained within the Service Catalog. The main input for this information comes from the Service Portfolio and the business via either the Business Relationship Management (BRM) or Service Level Management (SLM) processes.
All information needs to be verified for accuracy and must be maintained using the Change Management process.
Copyright: The Art of Service 2008

31. Value to the Business The Service Catalog:
Provides a central source of information
Ensures that all areas of the business can view an accurate, consistent picture of all IT services, their details and status
Contains customer-facing view of IT services in use, how they are intended to be used, business processes they enable, and quality of service to be expected
There is a Business Justification document template available within this toolkit.
Copyright: The Art of Service 2008

32. CSFs
The Critical Success Factors (CSFs) for the Service Catalog Management process are:
An accurate Service Catalog
Business user’s awareness of the services being provided
IT staff awareness of the technology supporting the services
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33. KPIs
Number of services recorded and managed within the Service Catalog as a percentage of those being delivered and transitioned in the live environment
Number of variances detected between the information contained within the Service Catalog and the ‘real-world’ situation
Business users’ awareness of the services being provided, i.e. percentage increase and completeness of the Business Service Catalog against operational services
In addition, IT staff awareness of the technology supporting the services is another KPI.
Copyright: The Art of Service 2008

34. Challenges
Maintaining accurate Service Catalog as part of a Service Portfolio
Incorporating both the Business Service Catalog and Technical Service Catalog as part of the overall CMS and SKMS
In order to achieve this, the culture of the organization needs
to accept that the catalog and portfolio are essential
sources of information that everyone within the IT organization
needs to use and help maintain.
A Communication Plan template and some example Business IT Flyers and Text are available within this toolkit.
Copyright: The Art of Service 2008

35. Risks
The risks associated with the provision of an accurate Service Catalog are:
Inaccuracy of the data in the catalog and it not being under rigorous change control
Poor acceptance of the Service Catalog and its usage in all operational processes. The more active the catalog is, the more likely it is to be accurate in its content.
Inaccuracy of information received from the business, IT, and the Service Portfolio, with regard to service information
The tools and resources required to maintain the information
Poor access to accurate Change Management information and processes
Poor access to and support of appropriate and up-to-date CMS and SKMS
Circumvention of the use of the Service Portfolio and Service Catalog
The information is either too detailed to maintain accurately or at too high a level to be of any value. It should be consistent with the level of details within the CMS and the SKMS.
Copyright: The Art of Service 2008