The document provides an overview of the Service Level Agreement (SLA) framework. It describes a layered model of operation with business-level SLAs defining high-level services and metrics in business terms at the top layer. Lower layers define more technical SLAs and service components with narrower scopes. The framework establishes linkages between business targets, processes, and IT services and solutions. It also includes checklists for defining key elements of business SLAs such as service mission, content, usability, availability, change management, metrics, and financial considerations.

1. Jussi V. Koivisto, Dr.Sc.(Econ.)
Helsinki School of Economics
SLA Model Overview
Copyright © 2002 by Jussi V. Koivisto. All Rights Reserved.

2. SLA Framework
- An Overview -
Business - Prioritisation board
(Business decides, IT
Need for IT Solutions participates/advises)
- Company Board
Prioritising of Needs (highest level decisions)
- Business Process
Business SLA Control Models and Flows
- Lead Times
IT/IS Services Organisation - Flexibilities/Exceptions
- Rewards/Scorecard
IT Solution Definition, Solution Building as Service - Overall Pricing
“Packaging”, Enterprise Architecture Integrity, Assurance
and Compliance
IT Sourcing - Functionalities
- Metrics
- Tolerances
Technical SLA Control - Exceptions/Additions
- Rewards/Scorecard
- Delivery Pricing
Internal and External IT Service Suppliers
Internal and External IT Service Suppliers
(Providing IT Service Components)
(Providing IT Service Components)
External IT External IT
Internal IT Internal IT Internal IT Internal IT
Service Service
Unit A Unit B Unit C Unit D
Provider X Provider Y
Copyright © 2002 by Jussi V. Koivisto. All Rights Reserved.

3. SLA Framework
- A Layered Mode of Operation -
Business
Business - Business Language
- Business (Impact) Metrics
SLA - Wide Scope of Service
IT Service Management
Service
Concept
Business System Service
- Technical Language
- Technical Metrics
Technical Technical Technical
- Narrow/Technical SLA SLA SLA
Scope of Service
Technical Technical Technical
(Service) (Service) (Service)
Component Component Component
External IT
Internal IT Internal IT
Service
Unit Unit
Provider
Copyright © 2002 by Jussi V. Koivisto. All Rights Reserved.

4. From Business Targets into IT SLAs
Strategic Business Mission/Role and Targets
Business Targets Measurement and Metrics
Critical Factors in Achieving the Targets
Identifying the Factors that Can/Cannot be
Influenced by IT, and
their Degree of Influence
Preconditions and Current Problems and
Overall Requirements Challenges
Business Process
Map (High-Level)
Business SLA Targets and Metrics
Copyright © 2002 by Jussi V. Koivisto. All Rights Reserved.

5. External Customer Linkage
External
Customers
Business
Business Operations &
Business
Strategy Transactions
Process
Architecture
Busin. Service Business Pro-
Mgmt. & Bus- cess Solutions
iness SLA(s) & Services
Systems/IT
Strategy
Systems/IT Technical
Architecture Service Mgmt.
and SLAs
Technical IT Technical
Services and Service
Solutions Delivery
Copyright © 2002 by Jussi V. Koivisto. All Rights Reserved.

6. Business SLA Check List
- SERVICE MISSION -
•Business Impact
Business
– Scope (width, units/processes impacted)
– Seriousness (Depth, how much)
•Quantitative impact (gained/lost business,
improved/lost process effectiveness, recovery cost
etc)
•Qualitative impact (business good-/bad-will,
increased/lost reputation, reinforcement/damage to
brand etc)
– Business Impact Metrics ???
•Strategy Disposition => link the provided business IT service
Strategy
to the business strategy disposition of the served
businesses!!!
•Transactional services (Special and Project Services) vs.
Transactional
continuous services (Basic Services)
Copyright © 2002 by Jussi V. Koivisto. All Rights Reserved.

7. Business SLA Check List
CONTENT-
- SERVICE CONTENT-
•REMEMBER TO USE THE DOCUMENTED AND DETAILED BUSINESS
REMEMBER
(PROCESS) CONCEPT AS REFERENCE !!!
– Include the business concept (and its change management)
as attachment to the Business SLA
•Process Focus of Information
Process
– Which Process(es) – Framework
– Which Process Steps – When
– Role – by Whom
– Which Information Necessary to be
•Accessed
•Created/Modified
•Business Criticalness of the Information
Business
– Integrity – access – real-time – security
•Information Processing Issues
Information
– Real-time vs. Batch Processing???
– Transaction time(s)
– Transaction volumes
Copyright © 2002 by Jussi V. Koivisto. All Rights Reserved.

8. Business SLA Check List
- USABILITY AND AVAILABILITY -
•Access
Access
– Methods: User Interfaces/Portals etc
– Times of Access Availability (resulting in
Service Times, Service Breaks)
– Authorisations: users, user types, different
rights
– Business criticalness
•Interservice Issues
Interservice
– Conflict management
– Prioritisations
– Organisational scoping
•Which (part of the) organisation owns and
manages ?
Copyright © 2002 by Jussi V. Koivisto. All Rights Reserved.

9. Business SLA Check List
- CHANGE/DEVIATIONS MANAGEMENT -
•Business Criticalness of
Business
– Incident => Problem => Change Management
• Emergency/standing duty needs
– Configuration/solution changes and their implementation
times
– Deviations from the business process (how, authorisations,
implementation)
•Change Process and Deviations Management and interactions
Change
– Different parties, their roles and responsibilities, noticing
of the parties
– Level identification (minor change vs. major project)
– Approval and prioritisation, conflict management between
different business requirements
– Deviation approvals (from commonly agreed solution)
– Response times, priority levels
– Rewards (and sanctions)
– Release management
Copyright © 2002 by Jussi V. Koivisto. All Rights Reserved.

10. Business SLA Check List
- Money and Metrics -
• Business value of the service
– Sales increase, cost reduction, business model agility increase, volume
agility increase, integration and synergy benefits
• Pricing Principle(s)
– Basic Price Setting
• Price per transaction, level option and volume (transactional/special
services)
• Price per month and volume indicator level under agreed service level
(continuous services)
– Fixed service elements pricing (only those services in which pre-defined
and pre-agreed!!!)
– Additional Service Elements Pricing
• Business Metrics
– Business Impact Metrics =>
– Business Service Metrics (Business SLAs) =>
– IT Metrics (Technical SLAs)
• Sanctions and Retributions
• Accounting issues
– Transparency
– Principles and dimensions
– Cost, cost+, profit/loss
Copyright © 2002 by Jussi V. Koivisto. All Rights Reserved.

11. THANK YOU
Copyright © 2002 by Jussi V. Koivisto. All Rights Reserved.