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Service Management – ITIL Service Design Univ.-Prof. Dr.-Ing. Wolfgang Maass Chair in Economics – Information and Service Systems (ISS) Saarland University, Saarbrücken, Germany WS 2011/2012 Thursdays, 8:00 – 10:00 a.m. Room HS 024, B4 1

Univ.-Prof. Dr.-Ing. Wolfgang Maass

25.01.12 Slide 2

General Agenda

1.  Introduction 2.  Service Strategy 3.  New Service Development (NSD) 4.  Service Quality 5.  Supporting Facility 6.  Forecasting Demand for Services 7.  Managing Demand 8.  Managing Capacity 9.  Managing Queues 10. Capacity Planning and Queuing Models 11.  Services and Information Systems 12.  ITIL Service Design 13.  IT Service Infrastructures 14.  Summary and Outlook


25.01.12 Slide 3

ITIL Service Lifecycle (ITIL V3)

Last lecture

Today

(OGC, 2011)

Service Design •  Design of new or changed services

f o r i n t r o d u c t i o n i n t o l i v e environment

•  Guidance fo r des ign ing and developing services

•  Converting strategic objectives into service portfolios and service assets; or improve existing services

•  Development of design capabilities for service management


25.01.12 Slide 4

Service Composition


25.01.12 Slide 5

ITIL Service Design

Key processes in ITIL Service Design

①  Design coordination

(Providing and maintaining single point of coordination and control of all design activities)

②  Service catalogue management

③  Service level management

④  Availability management

⑤  Capacity management ⑥  IT service continuity

management ⑦  Information security

management ⑧  Supplier management

Input

Output

Design of

service solution

Key service design processes

(OGC, 2011)


25.01.12 Slide 6

Service Design – 2. Service Catalogue Management

•  Purpose •  Providing and maintaining a single source of consistent information on all operational services

(service catalogue) and those being prepared to be run operationally •  Gaining common understanding of IT services of service provider between diverse stakeholders •  Contribution to definition of services and service packages and specification of interfaces and

dependencies between service catalogue and service portfolio

Definition of services and service packages •  Types of services in service

catalogue a)  Customer-facing services –

support customers business (seen by customer)

b)   Supporting services – support customer-facing services (not seen by customer); also called infrastructure or technical services

•  SLA = Service Level Agreement between service provider and customer (assures level of service quality (warranty))

Service package of customer ii

(OG

C, 2011)


25.01.12 Slide 7

Service Design – 2. Service Catalogue Management

•  Structuring service catalogue •  Depends on audiences to be addressed –

views for diverse audiences •  Minimum: 2 different views – (1) business/

customer, and (2) technical / supporting service catalogue view

•  Further opportunity: 3 views, e.g., (1) wholesale, (2) retail, and (3) supporting service catalogue view

Service catalogue example

Customers (understand

portfolio of service provider)

Users (which services are available; how to place service requests)

Staff members (how supporting services and service provider assets support business activity)

Used by…

(OGC, 2011)


25.01.12 Slide 8

Service Design – 3. Service Level Management

•  Purpose •  Agreeing on and documenting service level targets and

responsibilities within SLAs and Service Level Requirements (SLR) for every service and related activity

•  Service level targets have to be appropriate and reflect requirements of business

Service Level Management (SLM) ①  Designing SLA Frameworks ②  Determining, documenting and

agreeing requirements for new services / Producing SLRs

③  Negotiating, documenting and agreeing SLAs for operational services

④  Monitoring service performance against SLA

⑤  Producing service reports ⑥  Conducting service reviews

instigating improvements within overall service improvement plan

⑦  Collating, measuring and improving customer satisfaction

⑧  Review and revise SLAs and OLAs, underpinning agreements and service scope

⑨  Develop contracts and relationships

⑩  Handling complaints and compliments

①  Designing SLA Frameworks •  Operational Level Agreement (OLA) =

agreement between IT service provider and part of same organization that supports delivery of services, e.g., facility department (OLA targets underpin those of SLA)

•  Underpinning contracts = contracts with external partners/suppliers

•  Types of SLAs: a)  Service-based SLAs covering 1 service b)  Customer-based SLAs covering all services of

individual customer group •  Multi-level SLAs: (1) corporate level with generic SLM issues; (2) customer

level with customer-/business-unit-specific SLM issues; (3) service level with service-specific SLM issues with regard to customer (OGC, 2011)


25.01.12 Slide 9

Service Design – 3. Service Level Management

②  Determining, documenting and agreeing requirements for new services / Producing SLRs

•  Starts during service strategy phase •  Service level requirement (SLR) =

customer requirement for an aspect of IT service

•  SLRs used to negotiate service level targets

•  SLRs relate primarily to warranty of service, e.g.,

a)  How available does the service need to be? b)  How secure? c)  How quickly must it be restored if it should

fail?

③  Negotiating, documenting and agreeing SLAs for operational services

•  Targets in SLAs originate from specified SLRs

•  Only measurable targets, e.g., 99,5% availability of service

④  Monitoring service performance against SLA

⑤  Producing service reports

•  e.g., service level agreement monitoring (SLAM) charts

(OGC, 2011)


25.01.12 Slide 10

Service Design – 4. Availability Management

Purpose •  Ensuring that level of availability

delivered in all IT services meets the agreed availability needs and service level targets in cost-effective and timely manner

•  Availability = ability of service to perform its agreed function when required

•  Reliability = how long service can perform agreed function without interruption -- mean time between service incidents (MTBSI) and mean time between failures (MTBF)

•  Maintainability = how quickly and effectively a service can be restored to normal working after failure (mean time to restore service (MTRS))

•  Serviceability = ability of third-party supplier to meet terms of its contract (OGC, 2011)


25.01.12 Slide 11

Brainteaser

•  A 24 x 7 service has been running for a period of 5020 hours with two breaks, one of six hours and one of 14 hours.

•  Calculate the availability, reliability (mean time between service incidents and mean time between failures) and maintainability of the service.

•  Papers will be collected.

10 Minutes


25.01.12 Slide 12

Service Design – 4. Availability Management

Reactive activities, e.g., Investigating all service and component unavailability and instigating remedial action

•  e.g., via expanded incident lifecycle •  Minimizing impact of incidents •  Mapping of total IT service downtime for any

given incident against major stages of incident progress (lifecycle)

Proactive activities, e.g., Planning and designing new or changed services

•  e.g., component failure impact analysis (CFIA) •  Predict/evaluate impact on IT services arising from

component failures •  M=alternative component available but needs manual

intervention to be recovered •  A=alternative component available •  X=failure of component causes inoperative service •  blank= failure of component does not impact service

(OG

C, 2011)


25.01.12 Slide 13

ITIL Service Design

Key processes in ITIL Service Design

①  Design coordination ②  Service catalogue management ③  Service level management ④  Availability management

⑤  Capacity management (ensures that capacity of IT services / IT infrastructure meets agreed capacity- and performance-related requirements in cost-effective and timely manner)

⑥  IT service continuity management (ensures that IT provider can always provide minimum of agreed service levels)

⑦  Information security management (ensures confidentiality, integrity, availability of organization assets, information, data etc.)

⑧  Supplier management

(OGC, 2011)


25.01.12 Slide 14

Service Design – 8. Supplier Management

Purpose •  Obtain value for money from suppliers to provide seamless quality of IT service to business •  Ensuring that all contracts and agreements with suppliers support needs of business

Categorization of suppliers •  Strategic suppliers = significant “partnering”

relationships; managed at senior management level •  e.g., worldwide network organization

•  Tactical suppliers = significant commercial activity and business interaction; managed at middle management

•  e.g., hardware maintenance organization

•  Operational suppliers = operational products and services; managed at junior management

•  e.g., internet hosting service provider

•  Commodity suppliers = low-value products/services •  e.g., supplier of printer paper

(OGC, 2011)


25.01.12 Slide 15

Real Life Examples

Procter & Gamble •  Started using ITIL in 1999 •  6% to 8% cut on operating costs •  Help desk calls reduced by 10%

Caterpillar •  Started using ITIL in 2000 •  Rate of achieving target response time for incident

management on web-related services jumped from 60% to 90%

Capital One •  Started using ITIL in 2001 •  30% reduction in system crashes and software-

distribution errors •  92% reduction in “business-critical” incidents

(Kaiser, 2007)


25.01.12 Slide 16

Critique

•  Assumption: Many IT enterprises are looking for a magic bullet to end their IT chaos -  But: Success with ITIL is largely dependent on determining how best, and when, to apply the processes

in the IT organization

•  Assumption: Often claimed "ITIL compliance" gives false impression that ITIL is an IT standard -  But: ITIL is a set of best practices; ISO 20000 is an international standard “based” on ITIL

•  Assumption: Interactive and integrative nature of ITIL processes implies the entire framework has to be implemented in an „all or nothing“ manner -  But: Many organizations benefit from implementing only one or two ITIL processes such as change

management or incident management

•  Assumption: ITIL consists of a series of books that describe best practices in IT service areas an can be implemented out of the book -  But: ITIL provides WHAT to do, not HOW to do it; it is not an instructional manual for IT leaders to

improve IT services and operations

(Khan, 2008)


25.01.12 Slide 17

A Handful of IT Service Management Frameworks

Control OBjectives for Information and related Technology (COBIT) •  Governance and control framework for IT

management by ISACA and IT Governance Institute; current version: COBIT 4.1 (2007)

•  Defines 34 generic processes to manage IT •  Publications: „Core Content“, „IT Assurance Guide“,

“Implementation Guide“ and „Control Practices“ •  Relation to ITIL:

•  COBIT is positioned at higher level •  Aligned and harmonized with other, more detailed, IT

standards and good practices such as ITIL


25.01.12 Slide 18

A Handful of IT Service Management Frameworks

enhanced Telecom Operations Map (eTOM) •  Published by TeleManagement Forum •  Defines most widely used and accepted standard for

business processes in telecommunications industry

•  Relation to ITIL: •  eTOM seen as addition to ITIL •  Contrary to ITIL, eTOM offers data model for each

detailed process because telecommunication companies often need to interchange data -- focus on delivery of transparent services throughout several companies

Vendor frameworks based on ITIL •  e.g., MS Operations Framework (MOF) as basis of

MS System Center Service Manager [1] •  e.g., HP ITSM services based on ITIL [2]


25.01.12 Slide 19

Outlook

1.  Introduction 2.  Service Strategy 3.  New Service Development (NSD) 4.  Service Quality 5.  Supporting Facility 6.  Forecasting Demand for Services 7.  Managing Demand 8.  Managing Capacity 9.  Managing Queues 10. Capacity Planning and Queuing Models 11.  Services and Information Systems 12.  ITIL Service Design 13.  IT Service Infrastructures 14.  Summary and Outlook


25.01.12 Slide 20

Literature

•  Kaiser, T. "ITIL: What is it? Why you should use it? How to use it?", PPT, 2007. •  Khan, I. A. "Myths and Realities about ITIL", PPT, 2008. •  Office of Government Commerce (OGC), ITIL Service Design, The Stationery Office (TSO), London, 2011. •  Spaulding, G. "What’s New in ITIL v3", PPT, 2007.

Web: •  [1] http://www.microsoft.com/germany/technet/datenbank/articles/495298.mspx •  [2] http://www8.hp.com/de/de/services/services-detail.html?compURI=tcm:144-809129&pageTitle=ITSM-

Services?404m=rt404mb,newcclltow1en#


Univ.-Prof. Dr.-Ing. Wolfgang Maass Chair in Information and Service Systems Saarland University, Germany

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