Service Delivery Quick Reference


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Service Delivery Quick Reference

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Service Delivery Quick Reference

  1. 1. Service Level Management Financial Management for IT services Capacity Management IT Service Continuity Management Availability Management GOALS GOALS GOALS GOALS GOALS To maintain and gradually improve IT service quality To provide cost-effective stewardship of the IT assets To ensure that cost-justifiable IT capacity always The goal for ITSCM is to support the overall Satisfy Business objectives trough a constant cycle of agreeing monitoring and and resources used in providing IT Services exist and that it is matched to the current and future Business Continuity Management process by Achieve sustained level of availability reporting upon IT service achievement and identified business needs ensuring that the required IT technical and services Ensure cost effectiveness instigation of actions to eradicate poor service or facilities can be recovered within required, and Optimize the capability of services and components agreed, business timescales Having the appropriate IT capacity and making best use of it OBJECTIVES OBJECTIVES OBJECTIVES OBJECTIVES OBJECTIVES High quality, cost effective, value-adding IT services To manage the financial aspects of IT assets and that underpin the organization’s business needs resources cost-effectively Play a key role in ascertaining the business To account fully for the total spend on the provision requirements of IT Services and to attribute the cost to the services delivered SLA is written agreement between the customer and the IT service provider, defining key targets and To advise management on IT investment matters by responsibilities on both sides providing detailed business cases PROCESS – sub-processes PROCESS PROCESS PROCESS PROCESS Established Function Stage 1- Initiation ACTIVITIES Budgeting Business Capacity Management Initial Planning activities and Implementation Initiate BCM determining the Availability requirements from the business for Setting the budget Service Capacity Management Stage2 – Requirements and Strategy a new or enhanced IT Service and formulating the Availability Implement SLAs IT Accounting Resource Capacity Management and recovery design criteria for the IT Infrastructure Compile a service catalogue Business impact analysis Building a Cost Model in conjunction with ITSCM determining the vital business Establish SLA structure Risk assessment ACTIVITIES Charging functions and impact arising from IT component failure Establish overview of Service Level Requirements Monitoring Business Continuity Strategy Setting the Price defining the targets for Availability, reliability and (SLRs) Stage3 - implementation Analysis Pricing methods maintainability for the IT Infrastructure components Plan UCs and OLAs Organizational and implementation planning Tuning Differential Charging establishing measures and reporting of Availability, Reliability Draft and agree SLAs Implement stand-by arrangements Implementation Billing and Maintainability that reflects the business, User and IT Storage of Capacity Management data – the CDB Manage The Ongoing Process Develop Recovery Plans support organisation perspectives Monitor and report SLA achievements Implement Risk reduction Measures Demand Management monitoring and trend analysis of the Availability, Reliability Review SLA achievements Develop Procedures Modeling and Maintainability of IT components Identify Service improvements (SIP) Initial testing Application sizing reviewing IT Service and component Availability and Stage4 – Operational Management Periodic Reviews Producing of the capacity Plan identifying unacceptable levels Review and update SLAs, UCs and OLAs Education and awareness investigating the underlying reasons for unacceptable Review SLM process for efficiency and effectiveness Review and audit Availability Testing producing and maintaining an Availability Plan which prioritises Change Management and plans IT Availability improvements. Training Assurance DEFS DEFS INPUTS Recovery Types INPUTS Cost Model: by service, location, customer (for Service Catalog: defines services with default levels Technology Do nothing - Few, if any, organisations can function Business availability requirements charging) and options. Gives a profile of IT service provider to effectively without IT Services. Even if there is a SLA, SLR and Service Catalogue Business impact assessment Cost Types: HW, SW, People, Accommodation, org. and overview of services provided to users. requirement for stand-alone PC processing, there is Business plans and strategy Availability, Maintainability and Reliability requirements External services, Transfer costs still a need for recovery to be supported. SLR-Service Level Requirements: list of clients reqs. IS/IT plans and strategy Impact assessment for Vital Business Functions Cost Elements: Sub elements of Cost Types, like HW = Manual Work-arounds - manual Work-arounds can OLA-Operational Level Agreements: Between 2 Operational schedules Incident and problem data NW, Server, Office be an effective interim measure until the IT Service is intern IT departments Deployment and development plans and programs Configuration and monitoring targets Cost Category resumed wherever they are practical and possible. UC-Underpinning Contract: With an external Forward schedule of change Service Level Targets Capital or Operational Reciprocal arrangements - Entering into an supplier. Incidents and problems Direct/Indirect agreement with another organisation using similar SLA Service reviews Absorbed/Unabsorbed Indirect technology. Benefits can exist, in maintaining some SIP-Service Improvement Program: SLM with PM SLA breaches Fixed/Variable reciprocal arrangements, for example, in the off-site and AM starts a formal project focusing on user Budget storage of backups and other critical information. satisfaction Gradual Recovery (cold standby) - up to 72 hours, Service Catalog Contents CHARGING OUTPUTS OUTPUTS without a re-establishment of full IT facilities. Version number, date created, date amended; TOC; Notional (Invoiced, not payed), Communication of Info Capacity plan Availability and recovery design criteria Accommodation fully equipped with power and local Foreword from CIO; IT Service provider profile; Service (customer informed of charges to be aware), Pricing CDB Agreed targets of availability, rel., maintainability network cabling Infrastructure, telecom connections. times and accessibility of IT Service Provider; Overview Flexibility (Rates charged annually) Baselines and profiles Reports on achieved A.R.M Fixed or portable facility. of services and products; Customer focused Thresholds and alarms Availability monitoring When opting for a gradual recovery, consideration service/product description; Specs; Deliverables; Service Pricing Method/Policy Capacity reports (regular, at hock and Exception) Availability improvements plans must be given to highly customised items of Cost Plus – cost + profit rate times; Maintenance times; Support times; Delivery SLA and SLR recommendations hardware or equipment that will be difficult, if not Going Rate – comparable to other dept services times; Quality targets (availability, usability, reliability, Costing and Charging recommendations impossible, to replace. priority); Requirements; Request & Change procedure; Market Price – match external supplier price Proactive changes and service improvements Intermediate Recovery (warm standby) 24 to 72 hour Contigency policy; Pricing & Charging; Index & Negotiated Contract Price Revised operational schedule period. It is usually far away (logistics) and shared Definitions Effectiveness reviews with 20 to 30 other companies. Use 6-12 weeks. Can Audit reports be portable, in a trailer. Immediate Recovery (hot standby) provides for immediate restoration. Application systems and communications already available and data mirrored from the operational servers. In the event of a system failure, the Customers can immediately switch to the backup facility with little or no loss of service. System can be used as backup and reporting resource.
  2. 2. Service Level Management Financial Management for IT services Capacity Management IT Service Continuity Management Availability Management BENEFITS BENEFITS BENEFITS BENEFITS BENEFITS Customer and IT service provider have a clearer Increased Confidence in budgets Minimize risk of failing to meet SLAs and SLRs The annual spend on ITSM can be controlled A single point of accountability for availability is established view of requirements and responsibilities within the organization Accurate information supplied for investment and More confident forecasting Cost justifiable risk reduction measures can be Commitment on both sides TCO purposes implemented IT Services are designed to meet the IT Availability Value to the applications lifecycle requirements of the business Specific targets to aim for Increased professionalism and efficiency The ability to recover in a controlled manner Increased efficiency the levels of IT Availability provided are cost justified Week areas will be identified Warning over or under usage of service All staff aware of their role relating to ITSCM Cost savings and cost avoidance the levels of Availability required are agreed, measured and Supports supplier management (internal and Sound business method of balancing IT service Potential lower insurance premiums Timely enhancements and upgrades monitored to fully support Service Level Management external) provision with business requirements Meetings regulatory requirements shortfalls in the provision of the required levels of Availability Demonstrable performance indicators The cost of doing or not doing a Change Better business relationships are recognised and appropriate corrective actions identified and Gradual improvements in service quality Positive marketing of contingency capabilities implemented Better forward planning / both customers and IT Organizational credibility a business and User perspective of IT Service Availability is Will show where customer/user actions are causing Competitive advantage taken to ensure optimal usage and performance of the IT difficulty and identify where working practice need Infrastructure is achieved to deliver maximum benefit to be improved the frequency and duration of IT Service failures is reduced IT service will be defined to meet Service Level over time Requirements IT support organisation mindset moves from error correction to SLAs can be used as a basis for charging service enhancement; from reactive to proactive attitude Improved communication between IT and customers the IT support organisation is seen to 'add value' to the Better value for money business. PROBLEMS PROBLEMS PROBLEMS Contingency Plan PROBLEMS ensuring targets are achievable (use existing Lack of understanding leading to inefficient, overlay Unrealistic expectations IT infrastructure, comprising the replacement system, Defining availability levels that are meaningful to the business achievements if known) expensive or over-complex systems plus contracts/agreements necessary for recovery Vendor influence Managing internal and external providers is made difficult by lack of agreed availability targets verifying targets prior to agreement (prior Monitoring tools inaccurate or too expensive IT Infrastructure Management and operating Lack of accurate information monitoring, pilot SLAs) agreements/procedures during a disaster - business data Delay in obtaining, or inaccurate, information Assessing achievable and cost-effective levels of IT service Monitoring of actual achievement (only agree what - technical data Personnel - details of those needed at contingency availability Difficulty in recruiting staff with accountancy and IT can be monitored) site plus accommodation required skills Distributed environments New services are implemented without full consideration of availability requirements Inadequate resources and time (process must be Security instructions, emergency contacts and items Unable to respond to changes quickly enough Level of monitoring to be implemented properly staffed and resourced for home site Loss of business and reputation due to unstable IT services Lack of management understanding and support Lack of understanding (educations) Contingency site: location, people, facilities, security Lack of accountability and transport arrangements Differences in perceptions within the customer community (need to agree relevant targets at all Return to normal - dependencies affecting the return levels) Not enough seniority (give Service Level Manager the appropriate authority) SLA may not be supported by adequate underpinning agreements/contracts (review OLAs and contracts) KEY PERFORMANCE INDICATORS KEY PERFORMANCE INDICATORS KEY PERFORMANCE INDICATORS KEY PERFORMANCE INDICATORS DEFINITIONS Availability – Ability of an IT Service or CI to perform its what number or percentage of Services are covered Overall cost of delivery per customer Resource forecasts Percentage of Vital Business Functions covered by IT required function at a stated instant or over a stated period of time by SLAs - timely production of forecasts Service Continuity Plans Percentage of IT costs not accounted for Reliability – freedom from operational failure. Rel. of an IT - accurate forecasts if trends in resource util. are Underpinning contracts and OLAs in place for all Percentage of Vital Business Functions covered by Dollar value of budget variances/adjustments service is determined by rel. of each component delivering the - incorporation of business plans into cap. plan SLAs and for what percentage? annual IT Continuity tests Percentage of IT financial objectives met service. Technology are SLAs being monitored and are regular reports Number of annual IT Service Continuity Plan testing IT Service Headcount Maintainability – ability of a CI to be kept in, or to be restored to - ability to monitor perf and troughput being produced? failures an operational state. - impl. Of new tech. in line with business are review meetings being held on time and correctly Number of 3rd party recovery support contracts not Serviceability – describes contractual arrangements made with 3rd requirements (time cost functionality) minuted? agreed party IT service providers to assure Avail., Rel. and - use of old technology does not result in breached is there documentary evidence that issues raised at Number of audits performed on IT Service Maintainability. of IT services and their CIs. SLa due to problems reviews are being followed up and resolved (e.g. via Continuity Plan Resilience – capacity of an IT service to allow continued operation Cost effectiveness an SIP) Number of business issues logged against IT Service of IT despite the failure of one or more sub-systems. - a reduction in panic buying what number or percentage of Service targets are Continuity. Vital Business Function – business critical element of business - not significant over-capacity being met and what is the number and severity of process. - accurate forecasts of planned expenditure service breaches? Security – deals with confidentiality, integrity and availability of Plan and implement the appropriate IT capacity to are service breaches being followed up effectively? data. match business needs are service level achievements improving AMDB – record & store info reqd. for support of key activities: - reduction in lost reduction in the incidents due to are Customer perception statistics improving? reporting, analysis and availability forecasting... poor performance are IT costs decreasing for services with stable Service Window – period in which maintenance can be completed - reduction in lost business due to inadequate (acceptable but not improving) service level on a service capacity achievements? - new services are implemented which match SLR are SLAs, OLAs and underpinning contracts current -recommendation made by capacity mgt. are acted and what percentage are in need of review and upon update? CRITICAL SUCCESS FACTORS CRITICAL SUCCESS FACTORS CRITICAL SUCCESS FACTORS CRITICAL SUCCESS FACTORS CRITICAL SUCCESS FACTORS Meeting Customer Needs And Priorities Effective stewardship over IT finances Accurate business forecasts Ensuring IT Service Recovery Within Agreed Timescales Adherence To Service Levels knowledge of IT strategy and plans, and that the Establishing Process plans are accurate Providing Services Cost Effectively Planning an understanding of current and future technologies Controlling Service Delivery Implementation an ability to demonstrate cost effectiveness Maintaining Recognized Industry Acceptance For IT Operational Quality interaction with other effective Service Management Managing change processes Maintaining An IT Service Culture Managing variances an ability to plan and implement the appropriate IT Capacity to match business need
  3. 3. Service Level Management Financial Management for IT services Capacity Management IT Service Continuity Management Availability Management RESPONSIBILITIES SLMgr RESPONSIBILITIES RESPONSIBILITIES RESPONSIBILITIES ITSC Manager RESPONSIBILITIES (A. Manager) creates and maintains a catalogue of existing Budgeting: ensures that appropriate levels of monitoring of Develop and manage the ITSCM Plan to ensure that, to be accountable for the deployment of the AM process and Services resources and system performance are set, and that at all times, the recovery objectives of the business associated methods and techniques manage the IT organisation budget the information recorded in a CBD is kept up-to-date can be achieved. formulates, agrees and maintains an appropriate SLM to be responsible for ensuring the AM process is regularly prepare budget forecasts and assist Customers in and used by all parts of the Capacity Management structure (SLA, OLA, Contracts, accommodating reviewed and audited, and that all of these are subject to cont. Ensure that all IT Service areas are prepared and able preparing IT elements of their budgets process service improvement plan within SLM) to respond to an Invocation of the Continuity plans. improvement and remain fit for purpose report regularly to IT managers and Customers on produces Capacity Plans in line with the negotiates, agrees and maintains the Service Level Maintain a comprehensive IT testing schedule. to be responsible for determining the Av. requirements from the conformance to budgets organisation's business planning cycle, identifying Agreements with the Customer business for new or enhanced IT Services Undertake quality reviews of all procedures and Accounting: Capacity requirements early enough to take account ensure that these are incorporated into the testing negotiates, agrees and maintains the Operational to be responsible for the creation of A and recovery design select suitable tools and processes for gathering Cost of procurement lead times Level Agreements with the IT provider schedule. criteria to be applied to new or enhanced Infrastructure design data documents the need for any increase or reduction in negotiates and agrees with both the Customer and IT Communicate and maintain awareness of ITSCM to be responsible for ensuring the levels of IT A. required are develop suitable cost models hardware based on SLRs and cost constraints Provider any Service Level Requirements for any objectives within the business areas supported and IT cost justified agree suitable IT Accounting policies, e.g. produces regular management reports which include proposed new/developing services Service areas. defining the targets of A. required for the IT Infrastructure and Depreciation current usage of resources, trends and forecasts analyses and reviews service performance against the Undertake regular reviews, at least annually, of the its components that underpin a new or enhanced IT Service as assist in developing cost-benefit cases for IT sizes all proposed new systems to determine the SLAs and OLAs Continuity plans with the business areas to ensure the basis for an SLA investments computer and network resources required, to that they accurately reflect the Business processing produces regular reports on service performance and establishment of measures and reporting that reflect business, advise senior management on the cost-effectiveness determine hardware utilisation, performance service Environment. achievement User and IT support org. requirements of IT solutions levels and cost implications Negotiate and manage contracts with providers of organizes and maintains the regular Service Level responsible for the monitoring of actual IT A. achieved vs Charging: recommends resolutions to performance-related third party recovery services. review process targets and to ensure shortfalls are addressed identify methods of charging within the organisations Incidents and Problems Manage the IT Service delivery during times of crisis initiates any actions required to maintain or improve to be responsible for the production and maintenance of an A. charging policy recommends to IT management when to employ including: service levels Plan which prioritises and plans IT A. improvements provide justifications and comparisons for charges o Co-ordination with the crisis control team Demand Management, to dampen Customer conducts annual (as appropriate) reviews of the entire to promote AM awareness and understanding within the IT prepare regular bills for Customers o Invocation of the appropriate recovery demands on systems Service Level process and negotiates, agrees and support organisation prepare a price list of Services, if required facilities carries out ad-hoc performance and Capacity studies controls any amendments necessary to maintain an awareness of technology advancements and IT o Resource management, direction and on request from IT management best practice, e.g. ITIL. acts as co-ordination point for any temporary arbitration is represented on the CAB, assessing and authorising Changes to service levels required o Recovery site management. Changes ensures that regular and ad hoc audits are carried out on the Capacity Management process SMART: Specific- Measurable- Achievable- Realistic - INTERFACES INTERFACES INTERFACES INTERFACES Time based CfgM: IM- scripts for diagnostics SD, IM, PM ChM - manages assets and cost information - performance counters - Provides historical data - Input from AM is details of the planed maintenance regime SLA STRUCTURES Customer Based – With a customer group - Customer liaison - input to AM is schedule of planned maintenance activities SLM : PM- scripts for diagnostics Service Based – For customers of a service (e-mail) - cost provision impacts service..; - performance counters ChM SLM Multi-Level SLAs - Supplied with cost of meeting current and new - Ensures the on-going accuracy of continuity plans - provide information what is availability of the system for SLA ChM- assist in CAB assessing business impact Corporate Level – cover generic SLM issues requirements - SLR provide availability requirements - raise RFC if needed - CM, AM: FM Customer Level RM- helps with distribution strategy (network CfgM - Supplied with cost of meeting cap. and avail. - input to FM is cost of nonavailability bandwidth,..) - Identifies the core infrastructure Service Level - some data shared – e.g. Machine data sharing - output from FM cost associated with proposed upgrades to the - after distribution capacity audits Meeting Customer Needs and Priorities: Customer infrastructure CfgM- gets information about CIs SLM satisfaction score/rating ; Average time to implement ITSCM - stores capacity information in CMDB - understands the obligations of IT service provision SLA requests ; Number of SLAs in renegotiation ; - output from ITSCM is business impact assessment SLM - Perf. And capacity targets FM Number of SLAs requiring changes (targets not - Input from AM is the availability and design criteria tom - assist SLM drafting OLAs - attainable, etc.) ; Number of SLA issues logged maintain “business as usual” by preventing or minimizing FM - cost summary as part of capacity plan CM Adherence To Service Levels: Number of SLA targets impact of failure by use CFIA - resource utilization basis for charging - ensure business requirements are fully supported missed ; Number of SLA targets threatened CM trough the appropriate IT hardware resources ITSCM - capacity needed for recovery options used Providing Services Cost Effectively: Current cost per - input from AM is completed CFIA - maintain ITSCM capacity requirements in line with AM customer for delivery of services ; Percentage - input from CM is capacity plan production - delivers risk reduction measures to maintain improvement in delivery cost per customer business-as-usual AM - Share common goal slow performance is Controlling Service Delivery: Number of OLA issues effectively the same as unavailability logged ; Number of Underpinning Contract issues logged Cost types: AM methods and techniques Maintaining Recognized Industry Acceptance For IT Hardware, Software, Employment, Accommodation, Redundancy and resilience Quality: Number of ITs articles/white papers published ; External services and Transfer Component Failure Impact analysis (CFIA) Percentage IT Operations staff in industry (i.e; itSMF) Cost Elements: Fault tree Analysis (FTA) Breakdown of cost types (HW/ server/ NT/ HR server…) programs ; Percentage progress towards industry CCTA Risk Analysis & Management Method (CRAMM) certification (i.e; ISO9000) ; Dollars spent on external Service Outage Analysis (SOA) communications activities Technical Observation Post (TOP) Maintaining an IT Service Culture: Percentage of IT Incident Lifecycle Management Operations staff ITIL-aware ; Number of IT Operations Continuous Improvements staff ITIL certified ; Number of IT Operations staff with advanced ITIL certification ; Number Of Agreed SLAs Not Supported By OLAs/UCs SLA Content ELEMENTS of fin. management General details Budgeting Service hours Accounting Roles and responsibilities Charging Availability, Reliability, Maintainability & Fin Management Cycle Serviceability Planning annual: Service Performance Budgeting (agree overall expenditure) Customer Support IT Accounting (Establish standard unit cost for each Example incident targets IT resource) Printing Charging (Establish Pricing policy, Publish price list) Operational monthly: IT Service Continuity Budgeting (take actions to manage budget Security expectations or charged costs) Change management Procedures IT Accounting (Monitor Expenditure by cost-centre) Charging Charging (Compile and issue bills) Quality / Customer perception Administration (Reporting, service reviews,..)