BOOT CAMP (DAY 1) [Autosaved].ppt

ITIL V3.0 BOOT CAMP (Copyright) 1

WELCOME TO THE ITIL® v4 TRAINING COURSE
Instructor Introduction

STUDENT INTRODUCTION
We would like to hear from you. Please share with the class:
 Your name.
 Your profession.
 Your role.
 Your background in IT.
 Your familiarity with ITIL.
 What you expect to learn from this Session.

 Day 1 – Introduction, Introduction to ITIL v4,Service
management key concepts

 Day 2 - Service Transition, Service Operations, CSI, Doubt
Session, Note of Thanks
End of the Training
AGENDA

Why is ITIL V4.0 Certification Important?
The certification signifies that the holder of the certificate has a complete
understanding of Best Practice for IT Service Management that can be
applied immediately at some level.
* Worldwide Recognized Certification.
* Certification will lay the groundwork for a career road map.
ITIL 4 Foundation will:
provide readers with an understanding of the ITIL 4 service management
framework and how it has evolved to adopt modern technologies and ways of
working
explain the concepts of the service management framework to support
candidates studying for the ITIL 4 Foundation exam
act as a reference guide that practitioners can use in their work, further studies,
and professional development.

BASIC CONCEPTS

Design Thinking, DevOps, and Agile methodologies are required by sustainable business
A blended approach to ITSM
According to the World Trade Organization, services comprise the largest and most
dynamic component of both developed and developing economies.
Services are the main way that organizations create value for themselves and their
customers.
Almost all services today are IT-enabled, which means there is tremendous benefit for
organizations in creating, expanding, and improving their IT service management
capability.
ITIL 4 brings ITIL up to date by re-shaping much of the established ITSM practices in the
wider context of customer experience, value streams, and digital transformation, as well
as embracing new ways of working, such as Lean, Agile, and DevOps.
IT service management in the modern world

The architecture of the ITIL core is based on the Service Lifecycle. Each volume
of ITIL is represented in the Service Lifecycle.
The Service Lifecycle is an approach to IT Service Management that emphasizes the
importance of coordination and control across the various functions, processes, and systems
necessary to manage the full Lifecycle of IT services.
THE SERVICE LIFECYCLE
Service
Strategy

Let’s Talk BUSINESS

Description of Case Study
ABC Ltd. is an old company who now wants to jump into IT
Business.
They have existing manpower & branch locations in Delhi
(Head Office), Hyderabad, Bangalore & Pune. This entire set
up will be used for new IT Business.
So ABC Ltd. appoints ITIL v3 consultant to help them set up
IT business. Consultant recommends to follow each of ITIL
Phases & Processes within.

V3 Process Covered in Foundation Course Material
Service
Strategy
Service
Design
Service
Transition
Service
Operation
Continual
Service
Improvement
Financial Management SS
Service Portfolio Management SS
Demand Management SS
Service Level Management SD
Service Catalogue Management SD
Availability Management SD
Capacity Management SD
Information Security Management SD
Service Continuity Management SD
Supplier Management SD
Change Management ST
Service Asset and Configuration Management ST
Release and Deployment Management ST
Event Management SO
Incident Management SO
Request Fulfillment SO
Problem Management SO
Access Management SO
The 7-Step Improvement Model CSI
SERVICE LIFECYCLE PROCESSES

ITIL v4 ITIL v3
More process Oriented Lifecycle Based Approach
Focus on Products, Process &
People Focus on Partners apart from 3 Ps
Security Management a part of
Availability
Security Management is a
separate process
Emphasize on SD & SS
Equal attention to all the
processes
ITIL V3 V/S ITIL V4

• What is a service?
• Recount your best service experience
– What were the products used there?
• A service should have
– Expectations
– Interaction
– Utility
– Warranty
– Problem addressing mechanism
– Pricing
Product vs Service

Service & Service Management
• Service is:
– a means of delivering value to customer
– by facilitating outcomes customers want to achieve
– without the ownership of specific costs and risks
• Service management is:
– set of specialized organizational capabilities
– for providing value to customers
– in the form of services
• Services may be defined by specifications, but
Customer outcomes are the genesis of services

What is Customer Satisfaction
• It is difference between perceived quality and
expected quality
• For a product:
– the Satisfaction comes after usage
• For a service:
– Satisfaction happens while it is being consumed

Four P’s of Service Management
Processes
People
Products
Partners

Demands

Compliance & Governance
 Compliance is a adherence to a Standard or Set of Guidelines or
proper consistent practices
 Corporate Governance means to promote corporate Fairness,
Transparency & Accountability
 IT Governance is an integral part of enterprise/corporate
governance & it ensures that organization’s IT is in alignment
with Strategies & Objectives

Gartner Group Maturity Model
PLAN DO
ACT CHECK
PLAN DO
ACT CHECK

Traffic W/O Processes

Traffic With Process

What is an Exception ???

What are the Good Practices
Good practices: Practices that are widely used in industry by
companies getting good results
Reasons to adopt good practice:
– Dynamic environments
– Performance pressure
Benefits: They help organizations benchmark themselves
against peers in the same and global markets to close gaps in
Capabilities
Sources: Public frameworks, standards, proprietary
knowledge of individuals and organizations, community
practices, etc.

FUNCTIONS
 Functions:
 Provide structure and stability to organizations.
 Are self-contained units of organizations, with their own
capabilities and resources.
 Rely on processes for cross-functional coordination and control.
 Have their own knowledge base, built from experience.
 Can result in functional silos if there is a lack of coordination or
an inward focus.
"A function is a team or group of people and the tools they use to perform one or
more processes or activities."

PROCESS CHARACTERISTICS
The characteristics of processes are:
Measurable:
 Performance driven
 Cost, quality, duration, productivity, and so on
Specific results:
 Delivery of a specific result
 Individually identifiable and countable
Customers:
 Delivery of results to a customer or stakeholder
 Meeting customer expectations
 Could be internal or external
Respond to a specific event:  Traceable to a specific trigger

WHAT ARE ROLES?
A role is the set of responsibilities, activities, and authorities defined in a
process and assigned to a person or team.
LAN Manager – Functional
Job Title
Incident Support Level 2 Role
Problem Analyst Role
Network Manager – Functional Job Title
Change Initiator Role
Incident Support Level 2 Role

WHAT ARE ROLES? (contd.)
One person or team may have multiple roles, for example, the roles of
Configuration Manager and Change Manager may be performed by a single
person or team, who should carefully assess this requirement and workload.
Configuration
Management
Change
Management

GENERIC ROLES
There are two generic roles in Service Management: Process Owner and
Service Owner. These owner roles are not necessarily dedicated resources.
A Process Owner:
 Is accountable for the overall quality of the
process and oversees the management of and
compliance with the processes, procedures,
data models, policies, and technologies
associated with the IT business process.
 Is responsible for ensuring that a process is fit
for purpose and for ensuring that all activities
within the process are performed.
 Is also responsible for the sponsorship, design,
and Change Management of the process and
its metrics.
 Role is often assigned to the same person who
performs the Process Manager role, but the
two roles may be separate in larger
organizations.
Process Owner Role
A Service Owner:
 Is accountable for the delivery of a specific
service, regardless of where the underpinning
technology components, processes, or
professional capabilities reside.
 Is responsible to the customer for the initiation,
transition, and ongoing maintenance, support,
and improvement of a particular service.
 Interacts with the Process Owner throughout the
Service Management Lifecycle.
Service Owner Role

What is RACI Model ?

RESPONSIBILITY ACCOUNTABILITY CONSULTED INFORMED
MATRIX
Key:
R = Responsible; performs the task
A = Accountable; ultimately answerable for completion
of task (only 1 person per task)
C = Consulted; provides information or assistance
I = Informed; kept apprised of the activity LOS Mgr PM SDM Client
1.1 Internal Kick off A
1.2 Offshore Resource requirement
projection/Approval
A R I
1.3 Travel Plan A
1.4 Resource Readiness R A
1.5 Knowledge Transfer (KT) Transition C I C
1.6 Conduct Lesson learned C A C
1.7 Sign off R A R

TEST YOUR KNOWLEDGE

1. Service Strategy

THE PURPOSE OF SERVICE STRATEGY
 What services should we offer and to whom?
 How do we differentiate ourselves from competing alternatives?
 How do we truly create value for our customers?
 How do we capture value for our stakeholders?
 How can we make a case for strategic investments?
 How can Financial Management provide visibility and control over value creation?
 How should we define service quality?
 How do we choose between different paths for improving service quality?
 How do we efficiently allocate resources across a portfolio of services?
To operate and grow successfully in the long term.
The purpose of Service Strategy is:
To transform service management into a strategic asset
To see the relationships between various services, systems or processes that are
managed and the business models, strategies or objectives they support
Service Strategy provides guidance to the following questions:
To transform service management into a strategic asset
To see the relationships between various services, systems or processes that are
managed and the business models, strategies or objectives they support
To provide guidance on the following questions:
To transform Service Management into a Strategic Asset.
To see the relationships between various services, systems, or processes that are
managed and the business models, strategies, or objectives they support.

Business Value of Service Strategy
• Sets clear direction for everyone for quicker decision
• Helps service organization to prioritize investments
• Helps building strategic assets which add value to
business
• Guides entire SD, ST & SO in a coherent manner for
effective service operations

• Perspective: the distinctive vision and direction
• Position: the basis on which the provider will compete
• Plan: how the provider will achieve their vision
• Pattern: the fundamental way of doing things –
distinctive patterns indecisions and actions over time.
Four Ps of Strategy

Utility and Warranty

1. Define the market
– Services and strategy
– Understand the customer
– Understand the opportunities
– Classify and visualize
2. Develop the offerings
– Understand market space
– Outcome-based definition of services
– Service Portfolio (Pipeline, Catalogue & Retired services)
3. Develop strategic assets
– Service management as a closed-loop control system
– Service management as a strategic asset
4. Prepare for execution ….
SS – Four Main Activities

4. Prepare for execution
– Strategic assessment
– Setting objectives
– Aligning service assets with customer outcomes
– Defining critical success factors
– Critical success factors and competitive analysis
– Prioritizing investments
– Exploring business potential
– Alignment with customer needs
– Expansion and growth
– Differentiation in market spaces
SS Activity - Prepare for execution

CASE STUDY
 ABC Ltd decides to use a mixture of service providers & BUs
 They want to initially focus on Banking customers based in USA
 They will finalize on the services to offer using the processes of
Service Strategy.

Processes in Service Strategy (SS)
1. Demand Management
2. Service Portfolio Management (SPM)
3. Finance Management

SERVICE STRATEGY 1 OF 3
DEMAND MANAGEMENT
“Manage Supplier Relationship &
Performance”

OBJECTIVES
 To understand customer’s current requirements
 Trend of requirements over a period/business cycle
 Match the customer’s expectations with organization's
capabilities of providing services
 Ensure Warranty & Utility are in alignment with customer’s
needs

KEY CONCEPTS
 Core service vs. Supporting Service
 Pattern of Business Activity (PBA), User profile
 Service Package (SP) vs. Service Level Package (SLP)
 Business Relationship Management

• Core Service is the service which actually brings ‘value’ to the customer.
It’s a service which is KEY from organization's perspective as well
E.g. for a Banking customer, the core services provided will be all financial
services
• Supporting Service ‘supports’ or enhances the core services
It’s like an added feature which may not be desired but important to have
Many times it becomes necessity
E.g. supporting services in above case could be providing a helpdesk
which helps/troubleshoots any issues/queries faced by users when they
access the website
Core Service vs. Supporting Service

 Represents change in pattern of customers demands as explained by
organization
 Important to track as it helps organization identify improvements in existing
services or identify future opportunities
 Also important to study customer’s business & changing business needs
 User Profile
 Demand patterns shown by users
 Users means people or even processes/functions etc.
 Is usually associated with/is subset of PBA
Pattern of Business Activity (PBA) & User Profile

 Service Package is a bundle of core services and/or supporting
services which is offered to customer
 SP Includes Service Level Package
 SLP has a defined level of Utility & Warranty for a given SP
 E.g. Buying 100 servers is a SP deal but some of them could be under
Gold/Silver SLP
SP vs. SLP

– At a Strategic level, Demand Management can involve analysis of patterns
of Business Activity and User Profiles.
– At a Tactical level, it can involve use of Differential Charging to encourage Customers to
use IT Services at less busy times.
– It is very closely linked to capacity management
 Customer centric activities
 Constant communication with customer
 Helps to know the improvements & future scope for business
 Usually the First Point of contact for the customer especially for a first time/new
business
Business Relationship Management

SUMMARY
DEMAND MANAGEMENT

CASE STUDY
 ABC Ltd, after a careful study of potential banking customers conclude that
 Banks are the biggest consumer of SAP services
 The trend has been increasing & expected to grow at 15% every year
 There are not many organizations offering SAP services yet
 So ABC Ltd decides to set up SAP services as follows
 They will offer SAP services for a minimum period of 3 years
 SAP services will be bundled with or without Customer’s IT Infrastructure Management
 Customers buying services for >3 years will get their Bronze service (Response time of <3 hrs)
& will also get discount in Gold Services response time of < 2 hrs)
 Finally ABC appoints a Business Relationship Manager

SERVICE PORTFOLIO MANAGEMENT
“ How to bundle/package the services”

SERVICE PORTFOLIO
The Service Portfolio is the complete set of services that is managed by a
Service Provider.
The Service Portfolio:
 Manages the entire Lifecycle of all services and includes three categories:
 Service Pipeline (proposed or in development)
 Service Catalogue (live or available for deployment)
 Retired Services
 Acts as the basis of a decision framework because it allows the management to
compare and contrast various ideas so that the most viable and valuable can be
further developed as a service.
 Represents the present contractual commitments, new service developments, and
ongoing service improvement plans initiated by Continual Service Improvement and
includes third-party services.
 Helps managers prioritize investments and improve the allocation of resources.
 Should have the right mix of services in the Pipeline and Catalogue to ensure the
financial viability of the service provider.

Service Portfolio
It describes how the service are bundled & packaged
Takes care of Marketing components such as
 What is the REASON customer will buy these services?
 What is the REASON customer will buy these services from US?
 SWOT analysis for our Organization’s service capabilities
 What could be our pricing models
 How best to allocate resources & capabilities

SERVICE CATALOGUE
The Service Catalogue is a database or structured document with information
about all live IT services, including those available for deployment.
The Service Catalogue is the only part of the Service Portfolio published to the
customers, and it is used to support the sale and delivery of IT services.
Approval from Service
Transition is necessary to add
or remove services from the
Service Catalogue.

Service Portfolio Structure
Existing Services
Services in
pipeline
New Services
Stopped services
Service Catalog
Requirements Gathering,
Analysis, Approval, Charter,
Developed, Release, Operational
Retired Services

A Possible event that could cause harm or loss or affect
the ability to achieve objectives.
Managing risks requires the identification and control of
the exposure to risk, which may have an impact on the
achievement of an organization’s business objectives.
What is Risk ?

Risk
Management
Risk
Analysis
Identify the risks
Identify probable risk
owners
Evaluate the risks
Set acceptable levels
of risk
Identify suitable
responses to the
risks
Define a
framework
Embed and review
Gain assurances
about effectiveness
Implement
responses
RISK – A FRAMEWORK
 There are two distinct phases in a
risk framework: risk analysis and
risk management.
 Management of Risk (M_o_R®) is an
example of a public framework for
Risk Management.

Business Service
 Business Service
 A service which directly supports business processes
 Business Service Management
 Service Management in terms of Business Processes & Business
values
 More weightage is given to more important service
 IT Service
 A service which Business does NOT think as an important part of
business process

METRICS
 How Accurate & Up-to-Date Portfolio is
 Is the information contained is relevant from Market
perspective
 Is it in alignment with customer needs

SUMMARY
SERVICE PORTFOLIO MGMT

CASE STUDY.. Portfolio of ABC Ltd.
Existing Services
- SAP, IT Infra
IT Security,
ITIL Consultancy
New Services - under consideration
Stopped services – N/A
Service Catalog
Requirements Gathering,
Analysis, Approval, Charter,
Developed, Release, Operational
Retired Services
- Not Applicable

FINANCIAL MANAGEMENT
“Getting the Deal ($$$) right”

OBJECTIVES
 To serve as strategic tool to align IT services with Financial Decisions
 To balance the Cost & Price as appropriate
 Accounting for IT Services
 Facilitate Accurate Budgeting
 Finalize Financial Policies (e.g. Charging)
 Financial Review & Control

COST VS PRICE
 Cost = Actual Expenditure of providing IT Services
 Price = The amount at which one Sells IT Services
 Hence Price – Cost = Profit

KEY CONCEPTS
 Service Valuation (Previously known as Charging)
 Service Investment Analysis (Previously known as Budgeting)
 Accounting
 Cost Units , Costs Types
 Business Case
 Business Impact Analysis

SERVICE VALUATION (CHARGING)
 A mechanism which helps organization to recover at least the expenditure
incurred on providing IT services with additional monitorial profits as
applicable
 Types
 Cost Recovery (Actuals)
 Cost Plus Fixed Fee
 Cost Plus % of Costs
 Cost Plus Incentives
 Fixed Price

SERVICE INVESTMENT ANALYSIS
 Was termed as Budgeting in v2
 It is a Time phased allocation of Funds
 It helps Track & Control the expenditure pattern
 Also guide how to utilize the funds

ACCOUNTING
 A mechanism to track WHAT has been spent & WHERE it has been spent
 Maintain accounts of all incoming and outgoing monetary fund
 Accounting involves maintaining detailed ledgers of the daily expenditure
incurred during the implementation of an IT service.
 Helps an IT organization track costs for each customer, service, or activity

COST UNITS & COST CATAGORIES / TYPES
 Cost unit is the identified unit of consumption that can be accounted for a
particular service or service asset
 Cost Categories
 Hardware, Software, Travel, Internal, External etc.
 Cost Types
 Direct & Indirect
 Fixed & Variable
 Capital & Operational

BUSINESS CASE
 A decision support/planning system or tool /document
 It helps analyze the consequences of some decisions
 Usually it is in the form of report & may contain
 Background/History
 Facts & Figures, Validity period of the document
 Risks & Mitigation plans
 Recommendations
 E.g. of Business case is a Study Report for “Why should we buy 34 Mbps Link?”

BUSINESS IMPACT ANALYSIS
 It identifies organizations’ most critical business services & links
them to the financial values or risks
 Helps to prioritize the critical services
 Analyzes facets of service such as Impact of outages, Financial
penalties, Customer Relationship etc.

METRICS
 Accuracy in Budgeting, Forecasting & Controls
 Quick & Effective financial decision making
 Proper IT Accounting
 Ensure Timely Bill Payments & Collections
 Overall performance of Finance Dept.

SUMMARY
FINANCIAL MANAGEMENT

CASE STUDY
 ABC Ltd will form a Finance Dept
 This finance dept will have Finance Managers for each of Accounts
(Account Finance Managers)
 These AFMs will be accountable for overall billing to clients
 AFMs will generate Quarterly bill only when they get details of service
availability reports from SDMs
 Bill Payment options, Penalty charges etc will be decided & negotiate
with client by SLM & AFM

How does an organization use Resources and Capabilities in creating value?
a) They are used to create value in the form of output for production mgmt.
b) They are used to create value in the form of goods and services
c) They are used to create value to the IT organization for Service Support
d) They are used to create value to the IT organization for Service Delivery
Demand Management is primarily used to?
a) Increase customer value
b) Eliminate excess capacity needs
c) Increase the value of IT
d) Align business with IT cost
"Warranty of a service" means which of the following?
a) The service is fit for purpose
b) There will be no failures in applications and infrastructure associated with the service
c) All service-related problems are fixed free of charge for a certain period of time
d) Customers are assured of certain levels of availability, capacity, continuity and security
Test Your Knowledge

End of Module 1

2. Service Design
“ Blue print for value creation “
70
Service
Strategy
Continual Service
Improvement
Service
Design
Service
Transition
Service
Operation

•Designing services to satisfy business objectives, based on the
quality, compliance, risk and security requirements
•Delivering more effective and efficient IT and business
solutions and services aligned to business needs
•Coordinating all design activities for IT services to ensure
consistency and business focus
Goals & Objectives of SD

CASE STUDY
• ABC Ltd says
– They would like to build a completely secure, resilient & Cost effective IT Infrastructure
– All the Hardware will be from IBM, CISCO only. Necessary agreements with these brands
to be made accordingly
– ABC’s IT Infrastructure will be distributed across it’s 4 current locations
– Capacity team predicts that existing infrastructure needs to be restructured & new IT
components need to be added to providing services to client
– Agreements for network providers (preferred Spice Telecom) to be made for across
locations & to client locations
– Necessary support agreements to be arranged with all the providers

PURPOSE OF SERVICE DESIGN
Service Design can be seen as:
Gathering service needs and mapping them to requirements for integrated services
Effectively designing the IT services so that they don’t need a great deal of improvement
during their Lifecycle
Designing IT services, together with the governing IT practices, processes, and policies
to realize
to facilitate
Strategy
Introduction into the live environment
that ensures
Quality service delivery, customer satisfaction, and cost-effective service provision

MEASUREMENT DESIGN — NEED TO MEASURE
If you can’t measure it
then you can’t manage it.

Four types of metrics
■ Progress: milestones and deliverables in the capability of
the process
■ Compliance: compliance of the process to governance requirements,
regulatory requirements and compliance of people to the use of the process.
■ Effectiveness: the accuracy and correctness of the process and its ability
to deliver the ‘right result’
■ Efficiency: the productivity of the process, its speed, throughput and
resource utilization.

Measurement …….
• MTBF - Mean Time Between Failures
• MTBSI - Mean Time Between Service Incidents
• MTTR - Mean Time To Repair
• MTRS - Mean Time to Restore Service
• Planned Downtime - Agreed time when an IT Service
will not be available.
e.g. maintenance, upgrade and testing

Delivery Models

Outsourcing utilizes the resources of
an external organization(s) in a formal
arrangement.
INSOURCING, OUTSOURCING, AND CO-SOURCING
In sourcing utilizes internal
organizational resources.
Will generally involve
using a number of
external organizations to
design, develop,
transition, maintain,
operate, and/or support a
portion of services.
Co-sourcing
Is often a combination
of in sourcing and
outsourcing, using a
number of outsourcing
organizations working
together to co-source
key elements within
the Lifecycle.

PARTNERSHIP OR MULTISOURCING
This consists of formal arrangements between
multiple organizations to work together.
design,
develop,
transition,
maintain,
operate,
and/or
support IT
service(s)
Organization
A
Organization
B
The focus is on strategic partnerships that leverage critical expertise or market opportunities.
To

BUSINESS PROCESS OUTSOURCING (BPO)
Call Center
Accounting
Payroll
BPO — is the increasing trend of relocating entire business
functions using formal arrangements between organizations.
One organization provides and manages the other organization’s entire
business processes) or functions at a low-cost location.
Common examples are accounting, payroll, and call center operations.
Client

APPLICATION SERVICE PROVISION
Application Service Provision
Shared
computer-based
services
Customer Organization 1
(On-demand software/application)
 Involves formal arrangements with an Application Service Provider (ASP) organization that will
provide shared computer-based services to customer organizations over a network.
 Applications offered in this way are also sometimes referred to as on-demand
software/applications.
 Through ASPs, the complexities and costs of such shared software can be reduced and provided
to organizations that could otherwise not justify the cost.

KNOWLEDGE PROCESS OUTSOURCING (KPO)
KPO — is the latest form of outsourcing.
KPO B
KPO C
KPO A
Client
 KPO organizations provide domain-based processes and business expertise rather than
just process expertise.
 This requires advanced analytical and specialized skills from the outsourcing organization.

SERVICE DESIGN 1 OF 7
SERVICE LEVEL MANAGEMENT
“Negotiate & Agree Service Levels with client”

Objectives of SLM
• Define, document, agree, monitor, measure, report and review the
level of IT services provided
• Provide and improve the relationship and communication with the
business and customers
• Ensure that specific and measurable targets are developed for all IT
services
• Monitor and improve customer satisfaction with the quality of
service delivered
• Ensure that IT and the customers have a clear and unambiguous
expectation of the level of service to be delivered
• Proactive measures to improve the levels of service delivered are
implemented

Service Level Requirements (SLR)
Service Level Agreements (SLA)
Operational Level Agreements (OLA)
Underpinning Contracts (UC)
Service Improvement Plan (SIP)
A formal project undertaken within an organization to identify and introduce
Measurable improvements within a specified work area or , work process
KEY CONCEPTS

SERVICE LEVEL MANAGEMENT — SLA FRAMEWORKS
Service-based SLA
This is where an SLA covers one service, for all the customers of that
service.
Customer-based SLA
This is an agreement with an individual customer group, covering all the
services they use.

Service Level Agreement (SLA)
• An Agreement between an IT Service Provider and a Customer
• The SLA describes the IT Service, documents Service Level Targets, and
specifies the responsibilities of the IT Service Provider and the Customer
• A single SLA may cover multiple IT Services or multiple Customers.

Operational Level Agreement
• An Agreement between an IT Service Provider and another part of the
same Organization.
• An OLA supports the IT Service Provider's delivery of IT Services to
Customers.
• The OLA defines the goods or Services to be provided and the responsibilities
of both parties.
• For example there could be an OLA
- between the IT Service Provider and a procurement department to
obtain hardware in agreed times - between the Service Desk and a
Support Group to provide Incident Resolution in agreed times.

Supplier
• A Third Party responsible for supplying goods or Services that are required
to deliver IT services.
• Examples of suppliers include commodity hardware and software vendors,
network and telecom providers, and Outsourcing Organizations.
• We have to sign contracts with suppliers and these contracts are known as
Underpinning Contracts (UC)

Underpinning Contract
Contract : An agreement enforceable at law
Underpinning contract (with reference to an SLA)
• Contract between an IT Service Provider and a Third Party provider
• The Third Party provides goods or services that support delivery of an IT Service
to a Customer
• defines targets and responsibilities that are required to meet agreed Service
Level Targets committed in an SLA

SLM - Process
Business Unit A Business Unit B
The business
3 6
2 5
Business Business
Process 1 Process 4
SLM
G
F
D
C
B
Service A Document
SLR(s) SLA(s) SLA(s)
standards &
templates
Determine, Monitor service Conduct service
document & agree performance against review & instigate
requirements for new SLA & produce improvements within Assist with the
services SLRs & service reports an overall SIP Service Catalogue
make SLAs & maintain document
templates
Develop contacts
Collate, measure
& relationships,
& improve
record & manage Service
customer
complaints & Catalogue
satisfaction
compliments Service
Reports
Review & revise
SLAs, service
scope & underpinning Contracts
agreements
OLAs
Support teams Supplier Management Suppliers

SLA,OLA,UC
Organization Management
Customer
Org’s Internal Teams
Vendors
SLA
OLA
UC

SLM - Challenges
• Identifying suitable customer representatives with whom to
negotiate.
• A lack of accurate input, involvement and commitment from the
business and customers
• The tools and resources required to agree, document, monitor,
report and review agreements and service levels
• The process becomes a bureaucratic, administrative process rather
than an active and proactive process delivering measurable benefit to
the business

SLM - KPIs
■ Percentage reduction in ‘SLA targets missed’
■ Percentage reduction in ‘SLA targets threatened’
■ Percentage increase in customer perception and satisfaction of
SLA achievements, via service reviews and Customer Satisfaction
Survey responses
■ Percentage reduction in SLA breaches caused because of third-party
support contracts (underpinning contracts) & internal Operational
Level Agreements (OLAs).

CASE STUDY
• ABC Ltd will provide Response Time SLAs to Customer as below
for all H/W Replacements
– For all SAP services, the response time will be 60 mins
– For Servers – 4 Hr, Network Link Down – 4 Hr., Desktop – 2 Hr
• ABC has following OLAs agreed from their Internal Teams for all
H/W Replacements
– For all SAP services, the response time will be 30 mins
– For Servers – 2 Hr, Network Link Down – 2 Hr., Desktop – 1 Hr
• Internal Teams have following agreements with their Vendors
– For Servers (IBM)– 1 Hr, Network Link Down (BT, Cisco) – 1 Hr, Desktop (Dell) – 30 Mins

SERVICE CATALOGUE MANAGEMENT
“Services Ready to Use”

Service Catalogue Management - Scope, Goals & Objectives
The goal is to ensure :
-that a Service Catalogue is produced and maintained,
- it contains accurate information on all operational & planned
services
Objectives:
- manage the information contained within the Service
Catalogue
- ensure accuracy in all services of scope
• current details, status, interfaces and dependencies
Scope:
• All services that are being transitioned or have been
transitioned to the live environment

KEY CONCEPTS
• What is Service Catalog?
• Service Catalog vs. Service Portfolio
• Types of Service Catalog

SCM - Activities
• Ensuring that all operational services and all services being prepared for
operational running are recorded within the Service Catalogue
• Ensuring that all the information within the Service catalogue is
accurate and up-to-date
• Ensuring that all the information within the Service catalogue is
consistent with the information within the Service Portfolio
• Ensuring that the information within the Service catalogue is
adequately protected and backed up

• What is Service Catalog?
– A single source of information for all the service offerings
– Includes Operational & in Transition Services
– E.g. Menu Card in a Hotel
• Service Catalog vs. Service Portfolio
– Service catalog is a part of Service Portfolio
– Service Portfolio depicts the services in their Business Value Terms i.e. Why customer
would buy it from us
– Service Catalog depicts what service would you like to offer to customer (which will be
based on customer needs)
– Service Portfolio is not usually available to be viewed by Customer or public whereas
Service Catalog may be

Types of Service Catalog
• Business Service Catalog
– Used by Relationship Manager to win a business
– Consists list of all IT services which are important for Customer’s Business Process
– Visible to customer (or even to common public)
• Technical Service Catalog
– Used by Relationship Manager to know the capabilities & limits of Business
Service Catalog
– Contains all the Backup/Supporting services for services shown in BSC
– Usually Not visible to Customer

METRICS
• Accuracy of Information within Service Catalog
• Number of corrections made
• Customer Feedback
• Number of successful/lost proposals

CASE STUDY.. ABC’s Service Catalogs
Business Service Catalog
Service List:
1. SAP programming
2. SAP Development
3. SAP/ABAP Start to End
4. Full Lifecycle SAP
IT Infrastructure
1. Server Management
2. Network management
3. Backup Management
4. Design of complete IT Infra
Technical Catalog
1. Currently only SAP v3
2. Connectivity across location
3. 3 more Network POPs coming up
in US, UK & Aus in 15 days
4. Remote Management not
completely ready,
expected in 3 months

AVAILABILITY MANAGEMENT
“Ensure it is up, when it should be”

Availability Management - Goals & Scope
Goal : to ensure that
- level of service availability delivered in all services is
- matched to or exceeds
- the current and future agreed needs of the business
- in a cost-effective manner
Scope :
• designing, implementation, measurement, management
and improvement of IT service and component availability

What is Availability ?
• Ability of a Configuration Item or IT Service to
perform its agreed Function when required.
Note :
• Determined by Reliability, Resilience ,Maintainability,
Serviceability, Performance, and Security.
• Usually calculated as a percentage. This calculation is often
based on Agreed Service Time and Downtime.
• It is Good Practice to calculate Availability using
measurements of the Business output of the IT Service.

• The ability of a service, component or configuration item to
perform it’s agreed & expected function when required
• Usually expressed as Percentage
Availability= (AST-DT) X 100
-----------------
AST
AST = Agreed Service Time DT = Downtime
AVAILABILITY

• Reliability
– Implies how long the specified service is available for the required period
without any interruptions or failures
• Serviceability
– Ability of the 3rd party supplier to provide the expected service to service
provider
• Maintainability (or Recoverability)
– How easy it is to maintain or recover a service, component or configuration
item
• NOTE – Availability can be Proactive (recommended) or Reactive.

Availability Metrics
MTRS- Mean Time to Restore Service (Down Time) =
Relates to Maintainability (Also has an element of Serviceability)
Detection
Diagnosis
Repair
Recover
Restoration
Incident
Occurred
MTBF- Mean Time
Between Failures Uptime)
= Availability
MTBSI – Mean Time Between system Incidents = RELIABILITY
Time
Incident
Occurred

METRICS
• Uptime per service or group of Users
• Downtime duration
• Downtime frequency
• Number of failures beyond ‘X’ time

CASE STUDY
• ABC Ltd will provide Availability (Uptime) as per below
details
– For Servers: 95%
– Network Connectivity: 92%
– Desktops: 98%
NOTE – These Servers, N/W Links & Desktops are provided/designed by ABC which supports
their commitments of uptime. The availability would vary for these components if they
exist already

INFORMATION SECURITY MANAGEMENT
“Protect the Data & Information”

Information Security Management - Goal and scope
• Goal - To align IT security with business security and ensure
that information security is effectively managed in all
service and Service Management activities
ISM must ensure that an Information Security Policy is produced, maintained and
enforced
• Scope - The ISM process should cover use and misuse of all
IT systems and services for all IT security issues

ISM - Responsibilities
• Developing and maintaining the Information Security Policy and a
supporting set of specific policies.
• Ensuring appropriate authorization, commitment and endorsement
from senior IT and business management.
• Communicating and publicizing the Information Security Policy to all
appropriate parties.
• Ensuring that the Information Security Policy is enforced and adhered to.
• Identifying and classifying IT and information assets (Configuration
Items) and the level of control and protection required.

INFORMATION SECURITY MANAGEMENT — INFORMATION SECURITY
MANAGEMENT SYSTEM (ISMS) FRAMEWORK
The Information Security Management System (ISMS) framework shown
below presents an approach that is widely used and is based on the advice
and guidance described in many sources, including ISO/IEC 27001.
Customers – Requirements – Business Needs
PLAN
Service Level Agreements
Underpinning Contracts
Operational Level Agreements
Policy Statements
IMPLEMENT
Creation of Awareness
Classification and Registration
Personnel Security
Physical Security
Networks, Applications, and Computers
Management of Access Rights
Security Incident Procedures
MAINTAIN
Learn
Improve Plan
Implement
EVALUATE
Internal Audits
External Audits
Self Assessments
Security Incidents
CONTROL
Organize
Establish Framework
Allocate Responsibilities

METRICS
• Effectiveness of Security Measures / Controls
• Number of Security Breaches , Attacks
• Business Losses incurred due to security malpractices
• Adherence /Compliance to Security Standards
• Security Audits reports

Supplier Management
“Manage Supplier Relationship & Performance”

Supplier Management - Goal and Scope
• Goal - To manage suppliers and the services they supply,
to provide seamless quality of IT service to the business,
ensuring value for money is obtained.
• Scope - The Supplier Management process should
include the management of all suppliers and contracts
needed to support the provision of IT services to the
business

SM - Basic Concepts
• The Supplier and Contracts Database (SCD )
• Supplier and Contract Management and
performance information and reports
• Supplier categorization

SM - Responsibilities
• Providing assistance in the development and review of
SLAs, contracts, agreements or any other documents for
third-party suppliers
• Ensuring that value for money is obtained from all IT
suppliers and contracts
• Ensuring that all IT supplier processes are consistent and
interface to all corporate supplier strategies, processes and
standard terms and conditions
• Maintaining and reviewing a Supplier and Contracts Database
(SCD)

Supplier Selection
Request Supplier
Responses
Requirement of 3rd party supplier
Select Suppliers
Analyze Supplier
Capabilities
Contract with
Supplier (UC)
Supplier provides
Services
Manage Suppliers SCD
Update supplier’s
records

Supplier – Contracts Database (SCD)
Supplier Contracts
Database
Organization’s Supplier
Policy & Strategy
Contracts categorization
According to Types of services,
Owner, expiry date, value etc.
Fresh/Renewed
Contracts
Existing Contracts
Records of Past/Expired
Contracts
Contracts Modification/Termination
Supplier’s performance
Against contract terms

METRICS
• Accuracy of information in SCD
• Relevance of contracts in terms of SLM
• Performance of suppliers

CASE STUDY
SUPPLIER MANAGEMENT

CASE STUDY
• ABC Ltd has identified following suppliers
– Desktops: Dell, Servers: IBM, Network Links: Spice Telecom
• Supplier Manager of ABC is accountable to get these contracts
signed/maintained/renewed/terminated etc.
• All the documents regarding suppliers will be maintained in SCD
which will be on any Database (SQL, Oracle, Access etc)

CAPACITY MANAGEMENT
“Ensure IT is sized in optimum & cost effective manner ”

OBJECTIVES
• Provide the required IT Infrastructure in a cost effective manner while also
meeting it’s requirements
• Ensure optimum utilization of IT infrastructure
• Work on current & future needs
• Produce & regularly upgrade Capacity Plan

 Current Physical Capacity : 500 People
 Shifts Required : 24 X 7
 Shift Timing: 8:30 a.m to 5:30 p.m / 3:00 p.m to 12:00 a.m / 12:00 a.m to 8:30 a.m (Already Working)
 Project Requirement: 1000 People
 Business Capacity: Developers & Claim Associates (500 + 500)
 Developers will work : 8:30 a.m to 5:30 p.m/ Claim Associates: 3:00 p.m to 12:00 a.m
 Developer Need: Laptop with 2 GB of Ram – Constraint only 1 GB Ram Laptops are available
Q: How to manage the Capacity to accommodate 1000 people in the physical Capacity of 500 People
space ???
 Manage the IT Infrastructure to accommodate 1000 ppl
 Developers – Issue Laptops & Claim Associates – Issue Desktops to manage Business Capacity
 Introduce KVM Switch to tie Desktops & Laptops on same workstation of 500 Capacity to Manage
Service Capacity & Introduce Wifi to manage the to and Fro Movement to cover the 2.30 hours of
time
 Constraint: Developer Put heavy applications on VM Ware or Citrix and Rest Locally to manage
Component Capacity
Example of Capacity Management

The three major sub processes of Capacity Management are:
 Business Capacity Management
 Ensures that the future business requirements (customer outcomes) for IT services are considered
and understood.
 Ensures that sufficient IT capacity to support any new or changed services is planned and
implemented within an appropriate timescale.
 Service Capacity Management
 Includes the management, control, and prediction of the end-to-end performance and capacity of the
live operational IT services usage and workloads.
 Ensures that the performance of all services, as detailed in service targets within SLAs and SLRs, is
monitored and measured and that the collected data is recorded, analyzed, and reported.
 Component Capacity Management
 Includes the management, control, and prediction of the performance, utilization, and capacity of
individual IT technology components.
 Ensures that all components within the IT infrastructure that have finite resources are monitored and
measured and that the collected data is recorded, analyzed, and reported.
CAPACITY MANAGEMENT — SUBPROCESSES

• Capacity Plan
– Time (or trigger) phased plan to maintain/increase the utilization of IT
Infrastructure by maintaining or adding IT infrastructure components
• Capacity Management Information System (CMIS)
– A system which holds the data needed & maintained by all the capacity sub
processes/activities
• Performance Management
– Monitoring
– Tuning

• Modeling
– Mathematical models for determining the benefits and
costs of varying capacity
– Simulation and Analytical techniques
• Application Sizing
– For determining the hardware capacity required to
support new/modified applications

METRICS
• Performance trends after estimates
• Reduction in rushed purchases
• Reduction in expensive overcapacity
• Reduction in number of incidents due to performance plans

CASE STUDY
• Capacity team of ABC Ltd has following comments
– Current N/W links are sufficient to carry Remote Management of approx 20k
Desktops & 1k Servers holding standard SAP applications
– Looking at future Business Targets /trends to acquire more customers, 40 more
n/w links will need to be established across Europe & America in 2 years time
span.. details in Annex 1.0
– As per IT services expansion plan, 300+ IT components will need to be
removed/installed .. Details as in annex 2.a

SERVICE CONTINUITY MANAGEMENT
“Recover from disaster as per agreed &
applicable SLA”

ITSCM - Responsibilities
• Performing Business Impact Analyses for all existing and new
services
• Implementing and maintaining the ITSCM process
• Representing the IT services function within the Business
Continuity Management process
• Ensuring ITSCM plans, risks and activities are capable of
meeting the agreed targets under all circumstances
• Performing risk assessment and risk management to avert
disasters where practical

ITSCM - Goal & Scope
Goal : Support the larger business continuity plan
Scope - Services, computer systems, networks, applications,
data repositories, telecommunications, environment,
technical support and Service Desk
• Also includes resources (People)
The objectives are ensuring that
• required IT technical and service facilities can be
resumed
• within required, and agreed, business timescales
• Following a major disruption

LIFE CYCLE APPROACH TO ITSCM
• Initiate ITSCM
• Gather requirements
– Plan for implementation
• Implementation
– ORR (Operation Readiness Review)
– Mock Testing
– Go Live /Sign Off for ITSCM Structure
• Ongoing regular testing & updates
to ITSCM structure

POSSIBLE RECOVERY OPTIONS
• Do nothing
• Manual Workarounds
• Reciprocal arrangements (Less Frequently used)
• Immediate recovery – hot standby (24 hours)
– Mirrored business systems on an alternate site
• Intermediate recovery – warm standby (24-72 hrs)
– Similar to immediate but critical systems need to be recovered and run
• Gradual recovery – cold standby (72 hrs)
– Empty facility with utilities
• Fortress Approach - Risk avoidance approach in which every possible precaution is taken
to disaster proof a facility or position.
• Dormant contracts - Contracts with 3rd parties which become active only when triggered
by a disaster
• Insurance – Transferring Risk on the Third Party

• Business Continuity Strategy
– Aims at reducing risks by developing recovery plan's to restore business activities if they
are interrupted by a disaster
• Assessment of Changes for impact on ITSCM
– To study & mitigate the impact of any changes in IT Infrastructure on ITSCM
• Negotiated/Compromised SLAs
– To negotiate appropriate SLAs with customer which will be applicable only during disaster

IT Service Continuity Management - Basic Concepts
• Disaster - an event that affects a service or system such
that significant effort is required to restore the original
performance level
• Business Impact Analysis (BIA)
The purpose of a Business Impact Analysis is to quantify
the impact to the business that loss of service would
have

METRICS
• Number of shortcomings
• Cost to company due to loss if no recovery Plan
• Cost in Time, resources and money to restore IT Services

SUMMARY
SERVICE CONTINUITY
MANAGEMENT

CASE STUDY
• ABC Ltd has offered the customers ITSCM options as below:
– Complete mirroring of sites Delhi & Hyderabad (Hot Standby)
• This will need Facilities , Infrastructure, technology support as well
– Warm Standby for sites Bangalore & Hyderabad
– Cold standby for sites Bangalore & Pune

Model Questions
Q What are Underpinning Contracts used to document
 The provision of IT services or business services by a Service Provider
 The provision of goods and services by Suppliers
 Service Levels that have been agreed between the Service Provider and their Customer
 Metrics and Critical Success Factors (CSFs) in an external agreement
Ans – B
Q Reliability is a measure of
 The availability of a service or component
 The level of risk that could impact a service or process
 How long a service or component can perform its function without failing
 A measure of how quickly a service or component can be restored to normal working
Ans - C

 Which process contains the Business, Service and Component sub-processes?
 Capacity Management
 Incident Management
 Service Level Management
 Financial Management
Ans - A
 In which document would you expect to see an overview of actual service achievements against targets?
 Operational Level Agreement (OLA)
 Capacity Plan
 Service Level Agreement (SLA)
 SLA Monitoring Chart (SLAM)
Ans - D

End of Module 2

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