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ITIL Demand Management: why August is a bad time for a presentation

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ITIL Demand Management: why August is a bad time for a presentation

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Demand management, the ITIL Service Strategy counterpoint to capacity management, explains a big part of why we’re all busy in August. This presentation will highlight the costs of ineffective demand management, connect ITIL demand management to the Lean manufacturing’s concept of “mura,” and then show techniques for how to understand and communicate demand to IT staff, how to plan for demand, and how to influence demand in a higher education environment.

Demand management, the ITIL Service Strategy counterpoint to capacity management, explains a big part of why we’re all busy in August. This presentation will highlight the costs of ineffective demand management, connect ITIL demand management to the Lean manufacturing’s concept of “mura,” and then show techniques for how to understand and communicate demand to IT staff, how to plan for demand, and how to influence demand in a higher education environment.

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ITIL Demand Management: why August is a bad time for a presentation

  1. 1. J O H N B O R W I C K , M A N A G E R A N D F O U N D E R H I G H E R E D U C A T I O N I T M A N A G E M E N T , L L C H T T P : / / W W W . H E I T M A N A G E M E N T . C O M / A U G U S T ITIL Demand Management: Why August is a bad time for a presentation
  2. 2. John Borwick, PMP®  Wake Forest University, 2003-2012  Director of Service Mgt  PMO Director  Manager and Founder, HEIT Management Career goal: Make people’s lives easier by improving how higher education IT is managed. johnb@heitmgt.com
  3. 3. Higher Education IT Management, LLC “Helping Higher Education IT effectively deliver value to campus while minimizing waste.”  One-on-one coaching  Custom engagements  Blog http://www.heitmanagement.com
  4. 4. Agenda  Concepts in Demand Management  The Costs of Ineffective Demand Management  Understanding and Communicating Demand  Planning for Demand  Influencing Demand  So why is August such a bad time for a presentation?
  5. 5. W H A T I S I T I L ’ S D E M A N D M A N A G E M E N T ? W H A T ’ S L E A N A N D W H A T ’ S “ W A S T E ” ? Concepts in Demand Management
  6. 6. Demand Management Capacity Management  Service Strategy process  Does this service make sense?  Service Design process  How are we going to do it? ITIL’s Demand Management vs. Capacity Management
  7. 7. Capacity is a stair-step function, not a linear function $ Capacity 1 PB 2 PB 3 PB
  8. 8. Capacity is a stair-step function, not a linear function $ Capacity 1 PB 2 PB 3 PB
  9. 9. Types of Demand Management  “Absolute” demand vs. “Temporal” demand (Patterns of Business Activity)  Understanding demand vs. influencing demand
  10. 10. “Absolute” Demand  What do users VALUE?
  11. 11. Capturing Value $ Cost of the service
  12. 12. Sample IT costs  Server room equipment  Servers and storage  Software licenses  Cloud services  … and us (the IT staff).
  13. 13. Capturing Value $ Cost of the service
  14. 14. Capturing Value Value of the service $
  15. 15. Capturing Value Value of the service “Captured Value” $ Cost of the service
  16. 16. Yay! Virtuous cycle! 1. IT designs new service 2. Value exceeds cost 3. Happy campus 4. Increased IT funding
  17. 17. —or, a vicious cycle. 1. IT designs new service 2. Cost exceeds value 3. Unhappy campus 4. Reduced IT funding
  18. 18. Virtuous Cycle Vicious Cycle (Perceived Value > Cost)  Google Apps ? (Perceived Value < Cost)  Anti-Virus ? Value vs. Cost
  19. 19. Perceived value changes over time  What people value today  What they may be influenced to value
  20. 20. Patterns of Business Activity  Students arrive in late August/early September  Admissions is busy November-March  The budget season is February-April  Students don’t use the LMS 3 AM-7 AM  Timesheets are submitted 3PM-5:30 PM Fridays
  21. 21. Lean’s Three Types of Waste
  22. 22. Lean’s Three Types of Waste  Muda, or in-process waste: the traditional target of “process improvement,” e.g. having 5 steps in your process when only 2 are needed
  23. 23. Lean’s Three Types of Waste  Muda, or in-process waste: the traditional target of “process improvement,” e.g. having 5 steps in your process when only 2 are needed  Muri, or overburden: waste due to trying to do too much at once
  24. 24. Lean’s Three Types of Waste  Muda, or in-process waste: the traditional target of “process improvement,” e.g. having 5 steps in your process when only 2 are needed  Muri, or overburden: waste due to trying to do too much at once  Mura, or unevenness: waste due to fluctuations in demand
  25. 25. Building for peak demand Capacity Spring Summer Fall Winter Demand
  26. 26. Building for peak demand Capacity Spring Summer Fall Winter Demand Capacity
  27. 27. “Stair step” effects can make small increases in demand be magnified  Extra 10 students admitted  One course section added  Five more GB of disk space needed for the section  One additional disk drive needed  One additional rack of drives needed  One additional pair of fiber connectors needed  One more network switch needed  …
  28. 28. W H Y Y O U S H O U L D C A R E A B O U T D E M A N D M A N A G E M E N T The Costs of Ineffective Demand Management
  29. 29. 1. No demand for a service http://www.flickr.com/photos/92435716@N00/54069752/
  30. 30. 2. Too much demand for a service (Unexpected demand) http://www.flickr.com/photos/81203773@N00/2658548130/
  31. 31. 3. Can’t handle peak demand http://www.flickr.com/photos/13742951@N00/1332071197/
  32. 32. Understanding and Communicating Demand
  33. 33. Talk with customers  Who talks with your IT customers?  Patterns of Business Activity are much easier to uncover than perceived value  Undirected conversations  You know the possibilities; they know the value  e.g. listserv digests
  34. 34. ..and talk to your customers’ customers.  The final customers, e.g. IT supports Financial Aid Financial Aid supports the students  Most people overestimate demand  Focus groups  Similar services  Usability studies “Go to the Gemba” = Go to the real place
  35. 35. Iterative releases/roll-outs (think “Test markets”)  One administrative department  One academic department  One course  One residence hall  One class of students (e.g. seniors)
  36. 36. Clarify demand expectations with service levels  “This service is designed to accommodate 200 simultaneous users. If more users attempt to access the service, they will be put in a waiting queue and given a time estimate before they can access the service.”
  37. 37. Share a campus events calendar with IT staff  Ideally, pull from existing sources  Identify the “peak days”
  38. 38. Build a chart of busy months by department  List campus departments  Review with them their busy months  Share this chart with IT  Identify the “peak months”
  39. 39. Planning for Demand
  40. 40. Selected portions of a project  Approval: Deciding whether to pursue a project  Scope Definition: Understanding high-level scope  Project Planning: High-level decisions about how the service should work  Project Execution: Implementing the project Approval Scope Definition Project Planning Project Execution
  41. 41. Selected portions of a project Approval Scope Definition Project Planning Project Execution Service Strategy Service Design Service Transition
  42. 42. Should we even offer this service?  Will there be demand?  Are we capable of satisfying the demand? Approval Scope Definition Project Planning Project Execution
  43. 43. Include demand management in the project scope  Project responsible for identifying potential demand  Project won’t close until capacity satisfies demand Approval Scope Definition Project Planning Project Execution
  44. 44. What types of demand will there be?  WordPress “Multisite” functionality vs. WordPress instances  Demand for training  Demand reduced for another service Approval Scope Definition Project Planning Project Execution
  45. 45. In design, identify bottlenecks  Design assumes one database server  Design assumes one application server  Design assumes one IT staff member approves requests Approval Scope Definition Project Planning Project Execution
  46. 46. Test demand  Iterative releases  Capacity vs. demand Approval Scope Definition Project Planning Project Execution
  47. 47. A B S O L U T E D E M A N D Influencing Demand
  48. 48. Marketing “How many problems of life can be solved actually by tinkering with perception, rather than that tedious, hardworking and messy business of actually trying to change reality?” —Rory Sutherland, “Life lessons from an ad man” TED Talk
  49. 49. Marketing e.g.  Getting people’s attention  Knowing your target market  Creating desire  Framing your offer
  50. 50. Shifting demand: Empower users  Users build reports vs. IT builds reports  A tool resets passwords vs. IT staff reset passwords
  51. 51. Service Levels  Speed of the service  Hours of operation  Capacity
  52. 52. Chargeback  Charge back only when it can influence demand.
  53. 53. P A T T E R N S O F B U S I N E S S A C T I V I T Y Influencing Demand
  54. 54. Differential Charging  Overtime rates  Express shipping
  55. 55. “High demand” service levels  Service will take longer to provide during peak months or peak hours
  56. 56. Release windows Code will be released into production on…  Tues August 13 (“Release 1”)  Tues August 27 (“Release 2”)  Tues September 10 (“Release 3”) …and Release 2 is almost full.
  57. 57. Business process improvement  Identify the reasons for the peaks and valleys  Work with upstream customers to change their business processes E.g. canvassing campus departments for capital requests several weeks before the deadline.
  58. 58. W H Y A R E T H E R E S O M A N Y P E A K S I N D E M A N D I N A U G U S T ? So why is August such a bad time for a presentation?
  59. 59. Agriculture http://www.flickr.com/photos/34613366@N00/2398513475/
  60. 60. Semesters  Students learn face-to-face with a professor  Creates many Patterns of Business Activity getting ready for the fall Think: ITIL’s Release Management
  61. 61. Opportunity to re-invent campus http://www.flickr.com/photos/12836528@N00/4878619349/
  62. 62. http://www.heitmanagement.com/august

Editor's Notes

  • BRM
  • The quad at the University of Illinois at Urbana-Champaign, looking south towards Foellinger Auditorium. Eximus Wide & Slim with Kodak Porta 400 VC.

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