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Peleg Holzmann, MIS, CISSP, ITIL v3 Expert
IT & Business
 Issues facing Senior Business Managers and IT Managers Today

• Integrating and aligning IT and business goals

• Implementing continual improvement

• Measuring IT organization effectiveness and efficiency

• Optimizing costs and the Total Cost of Ownership (TCO)

• Achieving and demonstrating Return on Investment (ROI)

• Demonstrating the business value of IT

• Improving project delivery success                     2
What is ITIL?
• ITIL (Information Technology Infrastructure Library) is
  a systematic approach to high quality IT service delivery

• Developed in 1980s by Office of Government
  Commerce (OGC), current: Version v3 (Refresh 2011)

• Documented best practice for IT Service Management

• Organizational size and industry independent

• Provides common language with well-defined terms

• Comprised of 5 Books - (1,888 Pages)
                                                      3
Why ITIL?
  Because ITIL is all about Service and Customers!
A service is a means of delivering value to customers by facilitating outcomes
customers want to achieve without the ownership of specific costs and risks.




                                                                         4
ITIL v3




          5
Service Strategy
Service Strategy: The achievement of strategic goals or objectives requires the use
of strategic assets. The guidance shows how to transform service management into a
strategic asset.



            5                       1              Demand Management

                                    2      Service Portfolio Management (SPM)

                                    3     Financial Management for IT Services

                                    4       Business Relationship Management

                                    5      Strategy Management for IT Services




                                                                               6
Service Strategy



Demand Management             Service Portfolio Management (SPM)


Understand                    Right Mix of Services

Anticipate                    Business Outcomes

Influence                     Levels of Investment




                                                               7
Service Strategy



Financial Management for IT Services   Business Relationship Management


Budgeting                              Develop

Accounting                             Evaluate

Charging                               Leverage




                                                                      8
Service Strategy



Strategy Management for IT Services


Offerings

Capabilities

Markets




                                      9
Service Strategy



Define the Market

  Develop the Offerings

     Develop Strategic Assets

       Prepare for Execution

                                10
Service Design
Service Design: guidance on designing IT services, along with the governing IT practices, processes
and policies, to realize the strategy and facilitate the introduction of services into the live environment
ensuring quality service delivery, customer satisfaction and cost-effective service provision.

                                    6              Service Catalog Management (SCM)


                8                   7               Service Level Management (SLM)

                                    8                       Supplier Management

                                    9                       Capacity Management

                                    10                    Availability Management

                                    11       IT Service Continuity Management (ITSCM)

                                    12              Information Security Management

                                    13                       Design Coordination

                                                                                                          11
Service Design



Service Catalog Management (SCM)   Service Level Management (SLM)


Description                        SLA

Cost                               MTBF

Who                                MTTR (RTO / RPO)




                                                               12
Service Design



Supplier Management             Capacity Management


Good & Services                 Planning / Predicting

Supply Chain                    Monitoring

Links                           Tuning




                                                        13
Service Design



Availability Management         IT Service Continuity Management (ITSCM)


Define                                Reduce Risk

Analyze & Measure                     Manage Impact

Plan                                  Agreed Levels




                                                                   14
Service Design



Information Security Management      Design Coordination


Implement                           Consistent

Information Assets                  Processes

Acceptable Levels                   Activities




                                                           15
Service Design




Holistic approach to determine the impact of the
introduction of change on existing services and
             management processes

                                                   16
Service Transition
Service Transition: guidance for the development of capabilities for transitioning new and
changed services into operations, ensuring the requirements of Service Strategy, encoded in
Service Design, are effectively realized in Service Operations while controlling the risks of
failure and disruption.
                                     14          Transition Planning & Support

                7                   15               Change Management

                                                      Service Asset &
                                    16
                                            Configuration Management (SACM)

                                    17       Release & Deployment Management

                                    18           Service Validation & Testing

                                    19                Change Evaluation

                                    20             Knowledge Management

                                                                                        17
Service Transition



Transition Planning & Support        Change Management


Deployment                          Changing States

Quality Estimates                   Control

Time & Cost                         Accept & Embrace




                                                         18
Service Transition



           Service Asset &         Release & Deployment Management
 Configuration Management (SACM)

Configuration Items (CI)           Control Movement

Relationships CI’s                 Integrity

Deliver CI’s                       Correct




                                                              19
Service Transition



Service Validation & Testing         Change Evaluation


Deployed                             Prior to Change

Support?                             Major Change

Expectations                         New or Substantial




                                                          20
Service Trnasition



Knowledge Management


Insights

Experience

Knowledge




                       21
Service Transition
Build


Testing


Deployment


User Acceptance


Early Life Support


                         22
Service Operation
Service Operation: guidance on achieving effectiveness and efficiency in the
delivery and support of services to ensure value for the customer and the service
provider. Strategic objectives are ultimately realized through Service Operations.



            5                                     21        Event Management

                                                  22      Incident Management

                                                  23        Request Fulfillment

                                                  24      Problem Management

                                                  25       Access Management




                                                                                     23
Service Operation



 Event Management                Incident Management


Filter                          Restore

Categorize                      Minimize Impact

Monitor                         Quality & Availability




                                                         24
Service Operation



Request Fulfillment               Problem Management


Minor (Standard) Changes          Cause Incidents

Information                       Prevent Incidents

Repeatable (Safe)                 Root Cause




                                                       25
Service Operation



 Access Management


 Authorized Users


 Un-Authorized Users


 Execute Security Policies




                             26
Service Operation

     A             B
   Reactive      Proactive

Responsiveness   Stability

    Cost         Quality

   Internal      External




                             27
Continual Service Improvement
Continual Service Improvement: guidance in creating and maintaining value for
customers through better design, introduction and operation of services, linking
improvement efforts and outcomes with Service Strategy, Design, Transition and
Operation.


             1


                                     26      7-Step (CSI) Improvement Process




                                                                                   28
Continual Service Improvement

Plan
1. Identify the strategy for improvement
2. Define what you will measure

Do
3. Gather the data
4. Process the data

Check
5. Analyze the data/information
6. Present & Use the information

Act
7. Implement Improvement




                                                 29
Continual Service Improvement
                                                     Business
                      What is the vision?   Vision, Mission, Goals &
                                                    Objectives


                      Where are we now?      Baseline Assessments
How do we keep the
momentum going?




                     Where do we want to
                                              Measurable Targets
                            be?


                                               Service & Process
                     How do we get there?
                                                 Improvement



                      Did we get there?     Measurements & Metrics



                                                                       30
Case Studies
       Purdue University                                        Visa                                     Avaya
               Service Desk                                   Incident                                    ITIL

• Decrease 50% second level support        •    Reduced incident resolution times by   •    Reduce IT budget by 30%
  calls                                         75%                                    •    Helped with Sarbanes-Oxley
(InfoWorld)                                (Smart Enterprise Magazine)                      Legislation
                                                                                       (Techworld)

              Capital One                           Procter & Gamble                                 Hershey Foods
                   ITIL                                         ITIL                                      ITIL
•    30% reduction in system crashes       •    Documented 6% - 8% decrease in         •    97% change success rate
     and software distribution errors           operating costs                        (Gartner)
•    92% reduction in critical incidents   •    $125 million annual IT savings
     within a 2 year period                •    $500 million in 4 years
•    Estimated 10% - 20% savings on        •    10% reduction in help desk calls
     support costs over a 5 year period    (Network World)
(Computerworld CIO.com)

       Confidential Bank                             JP Morgan Chase                           Johnson & Johnson
    Change, Incident, Problem &                Incident Management & Change                               ITIL
      Release and Deployment                            Management
•    Reduced severity of change issues     •    93% customer satisfaction w/Service    •    $30 million cost savings 2005
     by 60% over the period of 12               Desk                                   •    Help desk resolution time down to 18
     months                                •    First time call resolution of 75%           minutes from 27 minutes
•    Actual ROI was $10 million saved      •    Total call volume down 500,000 calls   (Network World)
     against $300,000 incremental          (Computerworld UK)
     expense.
(Computerworld CIO.com)


                                                                                                                              31
We must have!




                32
33

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Final introduction

  • 1. Peleg Holzmann, MIS, CISSP, ITIL v3 Expert
  • 2. IT & Business Issues facing Senior Business Managers and IT Managers Today • Integrating and aligning IT and business goals • Implementing continual improvement • Measuring IT organization effectiveness and efficiency • Optimizing costs and the Total Cost of Ownership (TCO) • Achieving and demonstrating Return on Investment (ROI) • Demonstrating the business value of IT • Improving project delivery success 2
  • 3. What is ITIL? • ITIL (Information Technology Infrastructure Library) is a systematic approach to high quality IT service delivery • Developed in 1980s by Office of Government Commerce (OGC), current: Version v3 (Refresh 2011) • Documented best practice for IT Service Management • Organizational size and industry independent • Provides common language with well-defined terms • Comprised of 5 Books - (1,888 Pages) 3
  • 4. Why ITIL? Because ITIL is all about Service and Customers! A service is a means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks. 4
  • 6. Service Strategy Service Strategy: The achievement of strategic goals or objectives requires the use of strategic assets. The guidance shows how to transform service management into a strategic asset. 5 1 Demand Management 2 Service Portfolio Management (SPM) 3 Financial Management for IT Services 4 Business Relationship Management 5 Strategy Management for IT Services 6
  • 7. Service Strategy Demand Management Service Portfolio Management (SPM) Understand Right Mix of Services Anticipate Business Outcomes Influence Levels of Investment 7
  • 8. Service Strategy Financial Management for IT Services Business Relationship Management Budgeting Develop Accounting Evaluate Charging Leverage 8
  • 9. Service Strategy Strategy Management for IT Services Offerings Capabilities Markets 9
  • 10. Service Strategy Define the Market Develop the Offerings Develop Strategic Assets Prepare for Execution 10
  • 11. Service Design Service Design: guidance on designing IT services, along with the governing IT practices, processes and policies, to realize the strategy and facilitate the introduction of services into the live environment ensuring quality service delivery, customer satisfaction and cost-effective service provision. 6 Service Catalog Management (SCM) 8 7 Service Level Management (SLM) 8 Supplier Management 9 Capacity Management 10 Availability Management 11 IT Service Continuity Management (ITSCM) 12 Information Security Management 13 Design Coordination 11
  • 12. Service Design Service Catalog Management (SCM) Service Level Management (SLM) Description SLA Cost MTBF Who MTTR (RTO / RPO) 12
  • 13. Service Design Supplier Management Capacity Management Good & Services Planning / Predicting Supply Chain Monitoring Links Tuning 13
  • 14. Service Design Availability Management IT Service Continuity Management (ITSCM) Define Reduce Risk Analyze & Measure Manage Impact Plan Agreed Levels 14
  • 15. Service Design Information Security Management Design Coordination Implement Consistent Information Assets Processes Acceptable Levels Activities 15
  • 16. Service Design Holistic approach to determine the impact of the introduction of change on existing services and management processes 16
  • 17. Service Transition Service Transition: guidance for the development of capabilities for transitioning new and changed services into operations, ensuring the requirements of Service Strategy, encoded in Service Design, are effectively realized in Service Operations while controlling the risks of failure and disruption. 14 Transition Planning & Support 7 15 Change Management Service Asset & 16 Configuration Management (SACM) 17 Release & Deployment Management 18 Service Validation & Testing 19 Change Evaluation 20 Knowledge Management 17
  • 18. Service Transition Transition Planning & Support Change Management Deployment Changing States Quality Estimates Control Time & Cost Accept & Embrace 18
  • 19. Service Transition Service Asset & Release & Deployment Management Configuration Management (SACM) Configuration Items (CI) Control Movement Relationships CI’s Integrity Deliver CI’s Correct 19
  • 20. Service Transition Service Validation & Testing Change Evaluation Deployed Prior to Change Support? Major Change Expectations New or Substantial 20
  • 23. Service Operation Service Operation: guidance on achieving effectiveness and efficiency in the delivery and support of services to ensure value for the customer and the service provider. Strategic objectives are ultimately realized through Service Operations. 5 21 Event Management 22 Incident Management 23 Request Fulfillment 24 Problem Management 25 Access Management 23
  • 24. Service Operation Event Management Incident Management Filter Restore Categorize Minimize Impact Monitor Quality & Availability 24
  • 25. Service Operation Request Fulfillment Problem Management Minor (Standard) Changes Cause Incidents Information Prevent Incidents Repeatable (Safe) Root Cause 25
  • 26. Service Operation Access Management Authorized Users Un-Authorized Users Execute Security Policies 26
  • 27. Service Operation A B Reactive Proactive Responsiveness Stability Cost Quality Internal External 27
  • 28. Continual Service Improvement Continual Service Improvement: guidance in creating and maintaining value for customers through better design, introduction and operation of services, linking improvement efforts and outcomes with Service Strategy, Design, Transition and Operation. 1 26 7-Step (CSI) Improvement Process 28
  • 29. Continual Service Improvement Plan 1. Identify the strategy for improvement 2. Define what you will measure Do 3. Gather the data 4. Process the data Check 5. Analyze the data/information 6. Present & Use the information Act 7. Implement Improvement 29
  • 30. Continual Service Improvement Business What is the vision? Vision, Mission, Goals & Objectives Where are we now? Baseline Assessments How do we keep the momentum going? Where do we want to Measurable Targets be? Service & Process How do we get there? Improvement Did we get there? Measurements & Metrics 30
  • 31. Case Studies Purdue University Visa Avaya Service Desk Incident ITIL • Decrease 50% second level support • Reduced incident resolution times by • Reduce IT budget by 30% calls 75% • Helped with Sarbanes-Oxley (InfoWorld) (Smart Enterprise Magazine) Legislation (Techworld) Capital One Procter & Gamble Hershey Foods ITIL ITIL ITIL • 30% reduction in system crashes • Documented 6% - 8% decrease in • 97% change success rate and software distribution errors operating costs (Gartner) • 92% reduction in critical incidents • $125 million annual IT savings within a 2 year period • $500 million in 4 years • Estimated 10% - 20% savings on • 10% reduction in help desk calls support costs over a 5 year period (Network World) (Computerworld CIO.com) Confidential Bank JP Morgan Chase Johnson & Johnson Change, Incident, Problem & Incident Management & Change ITIL Release and Deployment Management • Reduced severity of change issues • 93% customer satisfaction w/Service • $30 million cost savings 2005 by 60% over the period of 12 Desk • Help desk resolution time down to 18 months • First time call resolution of 75% minutes from 27 minutes • Actual ROI was $10 million saved • Total call volume down 500,000 calls (Network World) against $300,000 incremental (Computerworld UK) expense. (Computerworld CIO.com) 31
  • 33. 33