The IT Service Delivery Summit

IT500
Master Class
IT4IT
Tony Price
Craig Alexander
HPE Software Services

Your speakers
2
Tony Price
Director WW IT4IT strategic consulting
HPE SW Services
Craig Alexander
EMEA Lead IT4IT strategic consulting
HPE SW Services

Context and the need for transformation?
3

Consumer demands are rapidly changing; on-demand
One common ask - better, faster, cheaper and safer
4
Gen Z
2000-present
Children
The first generation never to have
experienced the pre-internet world
Millennials/Gen Y
1980-2000
Early teens to early 30s
Demanding, internet savvy, instant
gratification. The iPad generation
Gen X
1965-79
Early 30s to mid-40s
The ‘focused, keep your heads
down generation”
Baby Boomers
Pre 1965
Late-40s+
Regarded in the West as the “have
it all” postwar generation

Business models are changing, and IT services must shift
5
You get what you are given
You get what you want, plus what you
didn’t know you needed
…and of course, must always be better, faster, cheaper and safer

Day to day IT operations are evolving
Support multi-model service delivery
Digital IT
Plan Source
OfferManage
New
Style
Traditional IT
Plan
Build
Run
Industrialized IT
Plan Build
DeliverRun
New
Tech
Reality: working smarter across the continuum and in all modes

IT can no longer manage all services the same way
Core IT Fluid IT
Greater agility
Business
outcome-centric
New workloads, apps,
and experiences
Shorter cycle times
IT outcome-centric
Conventional
workloads & apps
Longer cycle times
Lower cost

Typical look at the business of IT still has silos
Analyze and understand how to support the business by initiative
Velocity / requirements
Process
Tool
Core IT
Cloud
Process
Tool
DevOps
Process
Tool
Security
Process
Tool
Multiple
Suppliers / SIAM
Process
Tool
Mobility
Process
Tool
Context/usecase

Transforming IT impacts every aspect of your organization
Change the lens in which you view your business
IT Value
Chain Lens

The Open Group IT4IT™ standard to Run the Business of IT
Technical Standard2011 2012 2013 2014 2015
IT4IT
2.0 Std.
10/2015
RA 2.0
(level 3)
7/2015
RA 1.2
(level 3)
3/2014
RA 0.5
(level 1)
8/2012
Value
Chain
9/2011
RA 1.3
(level 3)
10/2014
RA 1.0
(level 2)
1/2013
• ~5000 downloads
• ~800 organizations
• ~74 countries
• Pocket Guide “Hot Seller”
• ~600 downloads
Original Consortium
IT4IT™ is a trademark of The Open Group
• Shell
• Hewlett-Packard (IT & SW)
• Achmea
• MunichRe
• Accenture
• Pricewaterhouse Coopers
• University of South Florida
• AT&T
IT Operating Model
Describes the structure of IT management
IT Reference Architecture
Prescribes the functional & information architecture
Consumer-centric service model

itSMF UK
IT delivers value through a series of activities
Which means there is an IT Value Chain supported by Value Streams
Efficiency
&
AgilityFinance & Assets
Intelligence & Reporting
Resource & Project
Governance, Risk & Compliance
Sourcing & Vendor
ITValueChain
Plan Build Deliver Run
Reference Architecture
Value Streams – Martin
Lean / 6-sigma concepts
Multi-Process Oriented
Customer focused results
Value Chains – Porter
Competitive Analysis
Strategic Concepts
Value Creation
Activity cost to profit margin analysis

as in a stream of activities delivering value
IT Value
Chain
Strategy to Portfolio
Drive IT portfolio to
business innovation
Requirement to
Deploy
Build what the business
wants, when it wants it
Request to Fulfill
Catalog, fulfill & manage
service usage
Detect to Correct
Anticipate & resolve
production issues
The IT Value Chain has 4 IT Value Streams
Efficiency
&
AgilityFinance & Assets
Intelligence & Reporting
Resource & Project
Governance, Risk & Compliance
Sourcing & Vendor
ITValueChain
Plan Build Deliver Run
Reference Architecture

itSMF UK
General approach to the IT4IT™ Reference Architecture
User is the north star, therefore start with IT use cases
Functional
Model
• High level definition of all functional areas for IT
• Based on customer use case analysis
Lifecycle
Model
• Based on ITIL and service lifecycle and high level grouping of:
Continuous Assessment, Continuous Integration, and
Continuous Delivery – and later into Value Streams
Information
Model
• Identification of key controlling IT artifacts
• Definition of artifact lifecycles according to lifecycle model
Foundation
Integration
• Defines key control points for integration, based on artifact
• Link Information model with lifecycle model Foundational Integration Layer (key control points)
Common Data/Information Model
Common Lifecycle Model
Functional Model

IT4IT™ reference Architecture V2.0
16
Service
Portfolio
Component
Portfolio
Demand
Component
Proposal
Component
Policy
Component
Defect
Component
Requirement
Component
Project
Component
Test
Component
Build
Component
Source Control
Component
Change
Control
Comp.
Problem
Component
Incident
Component
Event
Component
Diagnostics &
Remediation
Component
Usage
Component
Chargeback /
Showback
Comp.
Strategy to
Portfolio
Requirement to Deploy Request to Fulfill Detect to Correct
Offer Mgmt.
Component
Offer Consumption Component
Service
Archite-
cture
Policy
Require-
ment
Scope
Agree-
ment
IT
Initiative
Portfolio
Backlog
Item
Source
Conceptual
Service
Blueprint
Concep-
tual
Service
Logical
Service
Blueprint
Test
Case
Defect
Offer
Service
Release
Build
Service
Catalog
Entry
Desired
Service
Model
Usage
Record
Fulfill-
ment
Request
Sub-
scription
Charge-
back
Contract
Request
Problem/
Known
Error
Incident
Event
Service
Monitor
Run
Book
RFC
Service
Monitoring
Comp.
Catalog
Composition
Component
Shopping
Cart
Enterprise
Architecture
Component
Service
Design
Component
Fulfillment
Execution
Comp.
Request
Rationalization
Component
Configuration
Management
Component
Release
Composition
Component
Service Level
Component
Service
Contract
Actual
Service
CIs
Service
Release
Blueprint
Build
Package
Build Package
Component

The Information Model
– The information model comprises of service lifecycle data objects and their relationships
– Each value stream produces and/ or consumes data that together represents all of the information
required to control the activities that advance a service through its lifecycle
– These are referred to as “Service Lifecycle Data Objects”
17
Data object type Description Symbol
Key Data
Objects
Key data objects describe aspects of “how” services are created, delivered &
consumed; they are essential to managing the service lifecycle. Managing the
end to end service lifecycle & associated measurement, reporting, & traceability
would be virtually impossible without them. The IT4IT Reference Architecture
defines 32 key data objects and most are depicted as black circles
Service models are stand alone subclass of key data objects that describe “what”
IT delivers to its consumers. They represent the attributes of a service at three
levels of abstraction: Conceptual, Logical and Realised. These data objects
referred to as the Service Model Back Bone data objects (or service backbone
data objects in short) & depicted using purple coloured circle in the IT4IT
Reference Architecture diagrams
Key Data
Objects
Auxiliary data objects provide context for the “why, when, where etc ” attributes
and, while they are important to the IT Function, they do not play a vital role in
managing the service lifecycle. The IT4IT Reference Architecture currently
describes eight auxiliary data objects and they are depicted using a grey
coloured circle

The Service Model
– Without a clear understanding of both the business and the technology attributes of a service, there is no
way to be certain that the desired outcome can be consistently attained and that most optimal sourcing
strategy will be applied.
– The Service Model construct in the architecture captures, connects and maintains these service lifecycle
attributes as the service progresses through its lifecycle
– The structure that binds the different abstraction levels of the Service Model together is called the “Service
Model Backbone”
– The Service Backbone can also be broken down into Service Components
18
Service
Portfolio
Component
Change
Control
Comp.
Strategy to
Conceptual
Service
Blueprint
Concep-
tual
Service
Logical
Service
Blueprint
Service
Release
Desired
Service
Model
Fulfill-
ment
Request
RFC
Service
Design
Component
Fulfillment
Execution
Comp.
Configuration
Management
Component
Release
Composition
Component
Actual
Service
CIs
Service
Release
Blueprint

The Functional Model
– Based on real IT scenarios and use cases, the IT4IT Reference Architecture identifies and defines one of
the essential building blocks – functional components- which create or consume data objects and can be
aligned with the appropriate value streams.
– The functional Model is the set off functional components and their relationships
19
Functional
Component type
Primary functional
component
Description Symbol
A primary functional component is depicted
using a blue coloured rectangle and is core to
a specific value stream. This means that the
functional component plays a key role in the
activities of a particular value stream/ Without
this functional component, the integrity of the
data objects and thus the Service Model could
not be maintained consistently & efficiently.
Most IT4IT documentation will use language
such as “functional component is owned by or
is core to a particular value stream” to
represent a primary functional component

The Integration Model
– Integration between components in the traditional IT management ecosystem is based on capability and
processes.
– The interfaces needed to accommodate the requirements associated with this approach are largely point
to point between products to enable automation of interdependent workflows.
– Over time, this results in a complex web of connections that is virtually impossible to manage, making
changes to any of the components a daunting task
– The IT4IT reference architecture defines an integration model composed from the following three types of
integrations for simplifying the creation of an IT Management ecosystem using functional components
– Systems of record integrations
– Systems of engagement integrations
– Systems of insight integrations
20

So what have we just seen and
how does it relate to IT ?
21

So what have we just seen and how does it relate to IT ?
22
Control of all the
suppliers
SIAM
Building from
Common
Components
Service
Integrator
Our business is
Racing
Cloud
The race
industry is
competitive
Security
Buying in pre
build vehicles
Brokerage

Looking at IT4IT through the Value Chain lens
One IT4IT or many ?
P
r
o
c
e
s
s
T
o
ol
Core IT
Cloud
P
r
o
c
e
s
s
T
o
ol
DevOps
P
r
o
c
e
s
s
T
o
ol
SIAM
P
r
o
c
e
s
s
T
o
ol
Security
P
r
o
c
e
s
s
T
o
ol
Mobility
P
r
o
c
e
s
s
T
o
ol
Service
Portfolio
Component
Portfolio
Demand
Component
Proposal
Component
Policy
Component
Defect
Component
Requirement
Component
Project
Component
Test
Component
Build
Component
Source Control
Component
Change
Control
Comp.
Problem
Component
Incident
Component
Event
Component
Diagnostics &
Remediation
Component
Usage
Component
Chargeback /
Showback
Comp.
Strategy to
Portfolio
Offer Mgmt.
Component
Service
Archite-
cture
Policy
Require-
ment
Scope
Agree-
ment
IT
Initiative
Portfolio
Backlog
Item
Source
Conceptual
Service
Blueprint
Concep-
tual
Service
Logical
Service
Blueprint
Test
Case
Defect
Offer
Service
Release
Build
Service
Catalog
Entry
Desired
Service
Model
Usage
Record
Fulfill-
ment
Request
Sub-
scription
Charge-
back
Contract
Request
Problem/
Known
Error
Incident
Event
Service
Monitor
Run
Book
RFC
Service
Monitoring
Comp.
Catalog
Composition
Component
Shopping
Cart
Enterprise
Architecture
Component
Service
Design
Component
Fulfillment
Execution
Comp.
Request
Rationalization
Component
Configuration
Management
Component
Release
Composition
Component
Service Level
Component
Service
Contract
Actual
Service
CIs
Service
Release
Blueprint
Build
Package
Build Package
Component

One Lens, One Architecture, Many Perspective
Applying IT4IT
P
r
o
c
e
s
s
T
o
ol
Core IT
Cloud
P
r
o
c
e
s
s
T
o
ol
DevOps
P
r
o
c
e
s
s
T
o
ol
SIAM
P
r
o
c
e
s
s
T
o
ol
Security
P
r
o
c
e
s
s
T
o
ol
Mobility
P
r
o
c
e
s
s
T
o
ol
Service
Portfolio
Component
Portfolio
Demand
Component
Proposal
Component
Policy
Component
Defect
Component
Requirement
Component
Project
Component
Test
Component
Build
Component
Source Control
Component
Change
Control
Comp.
Problem
Component
Incident
Component
Event
Component
Diagnostics &
Remediation
Component
Usage
Component
Chargeback /
Showback
Comp.
Strategy to
Portfolio
Offer Mgmt.
Component
Service
Archite-
cture
Policy
Require-
ment
Scope
Agree-
ment
IT
Initiative
Portfolio
Backlog
Item
Source
Conceptual
Service
Blueprint
Concep-
tual
Service
Logical
Service
Blueprint
Test
Case
Defect
Offer
Service
Release
Build
Service
Catalog
Entry
Desired
Service
Model
Usage
Record
Fulfill-
ment
Request
Sub-
scription
Charge-
back
Contract
Request
Problem/
Known
Error
Incident
Event
Service
Monitor
Run
Book
RFC
Service
Monitoring
Comp.
Catalog
Composition
Component
Shopping
Cart
Enterprise
Architecture
Component
Service
Design
Component
Fulfillment
Execution
Comp.
Request
Rationalization
Component
Configuration
Management
Component
Release
Composition
Component
Service Level
Component
Service
Contract
Actual
Service
CIs
Service
Release
Blueprint
Build
Package
Build Package
Component
Service
Portfolio
Component
Portfolio
Demand
Component
Proposal
Component
Policy
Component
Defect
Component
Requirement
Component
Project
Component
Test
Component
Build
Component
Source Control
Component
Change
Control
Comp.
Problem
Component
Incident
Component
Event
Component
Diagnostics &
Remediation
Component
Usage
Component
Chargeback /
Showback
Comp.
Strategy to
Portfolio
Offer Mgmt.
Component
Service
Archite-
cture
Policy
Require-
ment
Scope
Agree-
ment
IT
Initiative
Portfolio
Backlog
Item
Source
Conceptual
Service
Blueprint
Concep-
tual
Service
Logical
Service
Blueprint
Test
Case
Defect
Offer
Service
Release
Build
Service
Catalog
Entry
Desired
Service
Model
Usage
Record
Fulfill-
ment
Request
Sub-
scription
Charge-
back
Contract
Request
Problem/
Known
Error
Incident
Event
Service
Monitor
Run
Book
RFC
Service
Monitoring
Comp.
Catalog
Composition
Component
Shopping
Cart
Enterprise
Architecture
Component
Service
Design
Component
Fulfillment
Execution
Comp.
Request
Rationalization
Component
Configuration
Management
Component
Release
Composition
Component
Service Level
Component
Service
Contract
Actual
Service
CIs
Service
Release
Blueprint
Build
Package
Build Package
Component
Service
Portfolio
Component
Portfolio
Demand
Component
Proposal
Component
Policy
Component
Defect
Component
Requirement
Component
Project
Component
Test
Component
Build
Component
Source Control
Component
Change
Control
Comp.
Problem
Component
Incident
Component
Event
Component
Diagnostics &
Remediation
Component
Usage
Component
Chargeback /
Showback
Comp.
Strategy to
Portfolio
Offer Mgmt.
Component
Service
Archite-
cture
Policy
Require-
ment
Scope
Agree-
ment
IT
Initiative
Portfolio
Backlog
Item
Source
Conceptual
Service
Blueprint
Concep-
tual
Service
Logical
Service
Blueprint
Test
Case
Defect
Offer
Service
Release
Build
Service
Catalog
Entry
Desired
Service
Model
Usage
Record
Fulfill-
ment
Request
Sub-
scription
Charge-
back
Contract
Request
Problem/
Known
Error
Incident
Event
Service
Monitor
Run
Book
RFC
Service
Monitoring
Comp.
Catalog
Composition
Component
Shopping
Cart
Enterprise
Architecture
Component
Service
Design
Component
Fulfillment
Execution
Comp.
Request
Rationalization
Component
Configuration
Management
Component
Release
Composition
Component
Service Level
Component
Service
Contract
Actual
Service
CIs
Service
Release
Blueprint
Build
Package
Build Package
Component
Service
Portfolio
Component
Portfolio
Demand
Component
Proposal
Component
Policy
Component
Defect
Component
Requirement
Component
Project
Component
Test
Component
Build
Component
Source Control
Component
Change
Control
Comp.
Problem
Component
Incident
Component
Event
Component
Diagnostics &
Remediation
Component
Usage
Component
Chargeback /
Showback
Comp.
Strategy to
Portfolio
Offer Mgmt.
Component
Service
Archite-
cture
Policy
Require-
ment
Scope
Agree-
ment
IT
Initiative
Portfolio
Backlog
Item
Source
Conceptual
Service
Blueprint
Concep-
tual
Service
Logical
Service
Blueprint
Test
Case
Defect
Offer
Service
Release
Build
Service
Catalog
Entry
Desired
Service
Model
Usage
Record
Fulfill-
ment
Request
Sub-
scription
Charge-
back
Contract
Request
Problem/
Known
Error
Incident
Event
Service
Monitor
Run
Book
RFC
Service
Monitoring
Comp.
Catalog
Composition
Component
Shopping
Cart
Enterprise
Architecture
Component
Service
Design
Component
Fulfillment
Execution
Comp.
Request
Rationalization
Component
Configuration
Management
Component
Release
Composition
Component
Service Level
Component
Service
Contract
Actual
Service
CIs
Service
Release
Blueprint
Build
Package
Build Package
Component

Addressing the silos
Apply the Reference Architecture consistently to all areas
Velocity / requirements
Process
Tool
Core IT
Cloud
Process
Tool
DevOps
Process
Tool
Multiple
Suppliers / SIAM
Process
Tool
Security
Process
Tool
Mobility
Process
Tool
Context/usecase
Service
Portfolio
Component
Portfolio
Demand
Component
Proposal
Component
Policy
Component
Defect
Component
Requirement
Component
Project
Component
Test
Component
Build
Component
Source Control
Component
Change
Control
Comp.
Problem
Component
Incident
Component
Event
Component
Diagnostics &
Remediation
Component
Usage
Component
Chargeback /
Showback
Comp.
Strategy to
Portfolio
Offer Mgmt.
Component
Service
Archite-
cture
Policy
Require-
ment
Scope
Agree-
ment
IT
Initiative
Portfolio
Backlog
Item
Source
Conceptual
Service
Blueprint
Concep-
tual
Service
Logical
Service
Blueprint
Test
Case
Defect
Offer
Service
Release
Build
Service
Catalog
Entry
Desired
Service
Model
Usage
Record
Fulfill-
ment
Request
Sub-
scription
Charge-
back
Contract
Request
Problem/
Known
Error
Incident
Event
Service
Monitor
Run
Book
RFC
Service
Monitoring
Comp.
Catalog
Composition
Component
Shopping
Cart
Enterprise
Architecture
Component
Service
Design
Component
Fulfillment
Execution
Comp.
Request
Rationalization
Component
Configuration
Management
Component
Release
Composition
Component
Service Level
Component
Service
Contract
Actual
Service
CIs
Service
Release
Blueprint
Build
Package
Build Package
Component

HPE IT value chain lens changes how you execute
27
Source Offer ManagePlan
Strategy
to Portfolio
Requirement
to Deploy
Request
to Fulfill
Detect
to Correct
I want to decide between
build, buy or broker to
deliver services
I want to aggregate
services from suppliers
into my catalog
I want to provide a service
marketplace and track
usage
I want to manage
suppliers to deliver rapid
& effective resolution
Service
integrator
I want to maximize
efficiency across my
service portfolio
I want to prepare patches
for updates to my running
services
I want automatic request
fulfilment and offer pay-
on-use pricing
I want to predict events
and automatically
remediate incidents
Service
supplier
I want to build a new
service or enhance an
existing one
I want to incrementally
build and release new
features
I want to publish my
enhanced services in a
service marketplace
I want to quickly identify
and fix problems and
defects
Service
broker

Taking away pain…just happens to be IT4IT – Global Finance
True
Business
Pain
identified
Use Cases
associated
with pain
Potential
value
identified
Agile
approach
Regular
value
delivered
IT
reputation
improved
Business
Pain
removed

IT4IT was almost incidental
The focus was on removing pain
Regular delivery of value keeps stakeholders engaged
Business
Operation
Disruption

IT4IT as the end goal (Global FMCG example)
Fantastic
Architecture
Superb road
maps
Happy
Architects
 IT not
delivering
the value
Unhappy
business

IT4IT viewed as the end goal rather than supporting the end goal
IT4IT evangelist
Without adoption value will not be realised
No mention of Value

Focusing on Value Stream optimisation – Global Hi Tech
Electronics
Tools deep
dive
Identified
broken
value
streams
Increment
Improve
Optimise
Value
Streams
18 Month
Road
Map
Reduced
waste
IT4IT value stream optimisation key
Over Optimisation leads to systemic waste
Identifying the missing basics
Optimized
Tools

Factor of 11,000 reduction of
security events
Arcsight ESM with D2C
Talk this language – Business and IT Execs listen !
50% faster release of
applications
Continuous Release & Deployment with R2D
30% business continuity
improvement
Closed Loop Incident Management with D2C
$1,000,000+ saving on
business efficiency
Self Service Automated Request Fulfilment with R2F
Detect root cause:
36h*5FTE  ½h*1FTE
Operations Analytics with D2C
45% Support Cost reduction
Retirement of legacy applications aligned to new
strategic delivery with S2P
Increase speed of fulfilment by
20% resulting in 5% increase in
CSAT
Automation of fulfilment Process with R2F
itSMF UK

Recommendations (continued)
Value Stream optimisation
Remember over optimisation leads
to systemic waste
Formal IT4IT education is valuable
We do not need to train the world in
IT4IT
At last we have a reference
architecture for running the business
of IT
But keep it in context …. Its not the
law…. Its not religion
Start to have conversations with
your vendors about IT4IT
Remember the standard was only
released in October 2015
Start thinking value and avoid pure
IT Technical “speak”
The business will always listen
when you talk value
Think Big Start Small

Useful links
35
The Open Group IT4IT™ forum
http://www.opengroup.org/IT4IT
The Open Group IT4IT™ Collaboration
Site
http://www.it4it.com
IT4IT™ The New Reference
Architecture for Managing the
Business of IT – Webinar (recorded)
https://www2.opengroup.org/ogsys/catalog/D139
The IT4IT™ pocket Guide
http://www.vanharen.net/9789401800303/The_IT4IT%
E2%84%A2_Reference_Architecture,_Version_2.0_%
E2%80%93__A_Pocket_Guide_(english_version)?es_
p=855690
The Open Group
IT4IT Consulting Services
http://www8.hp.com/uk/en/software-solutions/it4it-
value-chain/services.html
IT4IT eBook
http://h20195.www2.hp.com/V2/GetDocument.aspx?d
ocname=4AA5-8970ENW
Live Network (for Hewlett Packard
Enterprise Software License holders) –
full product mapping to IT4IT
https://hpln.hpe.com/
Hewlett Packard Enterprise

The CSI SAT NAV
If you don’t know which road you are on ………………any road will do!

Facilitators
John Griffiths Ian MacDonald
• 40+ years IT experience
• Working in Financial Services
• Now Independent Consultant
• ITIL Author (Availability Management)
• Multi ITSM awards winner
• UK & International Speaker
• Independent Consultant
• ITIL Trainer
• First winner of the itSMF Trainer
of the year
• Delivered ITIL courses in over 30
countries

Session Outline
What you should get out of this
session:-
 Understand the importance of CSI
 Where you should apply CSI
 Understand what makes effective CSI
 Understand the People Perspective
 How to Baseline - ‘Where are we now?’
 How to define ‘Where do we want to go?’
 Examples ‘How do we get there?’
 Methods and approaches for the journey
Approach:-
 Workshop
 Participation encouraged
 Opportunity to discuss and debate as a group

Before we Start
QUICK SHOW OF HANDS
Why are you here?
 I am interested in CSI, so here to
learn?
 I am keen to start CSI and looking for
guidance?
 I have problems with CSI and would
like some ideas to address these?

Where are we
now?
Where do we want
to be?
How do we get
there?
Before you start any
Journey
● You need to know where
you are going
● Why you are going there
● Where you start
● The distance (Gap) that
you need to cover
● The route you need to
follow
The CSI SATNAV

How does the proposed CSI align with the business Vision,
Mission and goals?
Define your ‘Baseline’ measures to capture the
‘Before’ position
Measurable ‘Targets’
The CSI plans for the required improvements
required to meet your targets
Measures and metrics to compare the ‘Before’ with the ‘After’.
The CSI Improvement Model (Workshop Scope)
What is the vision?
Where are we now?
Where do we want
to be?
How do we get
there?
Did we get there?
How do we keep the
momentum going?

Good…..who says so?
Why is CSI Important…....A Commercial Perspective
In the competitive marketplace and commercial
world in which we operate, the IT organisation
can no longer get away with simply believing that
it is ‘good at what it does’.
Thinking you are ‘good’ is now no longer ‘good
enough’!
Your Business Customers need to believe that
they are getting ‘Value for Money’ from their
spend on IT
If your Business Customers don’t feel they are getting
‘Value for Money’ then you are a COST

Why is CSI Important……It provides the demonstrable ‘Value Add’
DEFINITION
Value Add refers to “extra” feature(s) of an item
of interest (e.g. IT Services) that go beyond the
standard expectations and provide something
"more".
• Cost is tangible
• Value is a feeling or perception which needs to
be positively influenced
• CSI provides demonstrable ‘Value Add’ and can
positively influence the business perception of
Value for Money.

GETTING STARTED WITH THE 4 P’S OF SERVICE
MANAGEMENT

Getting Started – How do you get CSI up and
running?
People Process Partners Products

The 4 Ps of Service Management
People
Processes
Products/
Technology
Partners/
Suppliers

People
• What is your CSI manager going to look like?
• What does your CSI team look like?
What do you feel are the
key attributes a CSI
Manager should have?

People - suggestions
RACI matrix
Skills register
(skills required,
skills in place)
SFIA
Training and
recruitment
plans
SLA & OLA -
targets
Employee
survey results
Demand
patterns and
forecasts
Rewards
scheme

Getting started - Process
Process owners are responsible for improving
their own processes - however
Problems in many processes are due to
weaknesses in other processes
CSI should be used to monitor and highlight
the relationships between failing processes
and the ‘offending’ processes

Process
Create a list of all existing process and service owners
Assess current maturity and check processes that do not
currently have owners
Present/workshop with process owners how the 7 step
improvement process will work with their process
Create a prioritised sequence of processes that you will
address – possibly put them in staged take-on of CSI

Getting started - Partners
Identify your suppliers
Review what and how
they supply to you
Invite, or challenge them,
to be part of your CSI plans
Get them to suggest their
own CSI initiatives

Partners
Ask how will they help you deliver improvements?
Check contracts to see if there are any in-built contractual improvement
requirements
Talk to suppliers to assess their interest or commitment to improvements.
This may involve costs
Look at renewal dates and add improvement initiatives if they do not
currently exist
Make sure partners are properly managed by the respective process
owners

Getting started - Products
CSI Register
•Improvement prioritisation
Communications strategy and plan
CSI Strategy – fix what’s broken versus improve what is not
Budget for CSI

Products
Most products in use in the organisation will be ‘managed’ by process
owners or line managers
CSI should focus on products that produce information and reports (key
to the 7 step process)
Create a register of reporting tools
Confirm they are fit for purpose
Where they are inadequate look to upgrade or replace by supporting the
case with the process owner

WHAT MAKES EFFECTIVE CSI....WHAT DOES
GOOD LOOK LIKE?

Understanding what makes effective CSI ?
ITIL
The
Organisation
● ITIL Readiness?
● Big Implementation
● Pre-requisites (Roles,
Processes, Capabilities)
● Governance
● ‘The last book’!
● Needs Permission (aka Governance)
● Needs Business case
● Needs Project Funding
● Needs Prioritisation
BARRIERS
BLOCKERS

Understanding what makes effective CSI?
Planned Service Improvement Enhanced Service Improvement
IT Investment is required to ensure services are
delivered to meet current/changing business
requirements
Many organisations label ‘Technology Refresh’ as
Continual Service Improvement
Planned Service Improvement :-
 Needs Governance
 Needs Business case
 Needs Project Funding
 Needs Prioritisation
The origins of ‘CSI’ are from manufacturing.
Looking how quality and efficiency could be improved by
making small incremental improvements to the ‘production
line’.
CSI applied to the IT ‘production line’ (our ways of
working) gives the required focus on improving ‘BAU’ and
making it part of the ‘Day Job’.
Continual Service Improvement:-
 Provides ownership within the team - ‘Our production
line’
 Exploits skills, insight and knowledge of the team
 Provides a purpose for CSI
 Delivers ongoing incremental improvements

Understanding what makes effective CSI?
What does ‘Good Look like’?
Key Principles
• Focus on Value
• Start where you are
• Keep it Simple
• Cost effective
• SMART
Characteristics
• Aligns with the Company
Vision, Mission etc
• Adds value to the customer
• Measured benefits
• Establishes a new baseline
Applied
• Services
• Processes
• Activities
• Capabilities

UNDERSTANDING THE PEOPLE AND CULTURE
PERSPECTIVES

What is culture in Organisations?
• Culture is what is created from the messages that
are received about how people are expected to
behave in organisations
• Culture is the ability to ‘walk the talk’
• The inability to ‘walk the talk’ is what creates the
counter culture
• When you do something new or different it is the
culture that will influence how it is done

Four types of people
Players
Supporters Corpses
Subversives

Types of people that create the culture
Players

Players
• Who ITIL would call the ‘Champions’
• Who psychologists would call ‘Co-ordinators’ or
‘Shapers’
• Who we probably call the boss!
• How well the players perform depends on the
mix of the other three types

Supporters

Supporters
• Supporters are potential future players if
properly motivated
• Characterised by;
• Team player ethics
• Intervene to prevent frictions
• Help difficult people to guide their skills to positive ends
• Diplomatic with a sense of humour
• Good listening skills and people orientated

Subversives

Subversives
• Appear in several different guises, for example;
– Agitators – resistant to planned changes, mainly through
fear of the unknown
– Specialists – experts in their field but disregard other
team or individual objectives
– Detailers – Cross the i’s and dot the t’s. Slow progress
mainly due to a reluctance to delegate
– Evaluators – Mr Spock! Skilled in decision making,
analytical, intellectual and unemotional

Corpses

Corpses
• Been there, done that, can’t tell me anything new
– This could be a combined corpse/subversive role
• Retirement awaits
• Not all corpses are beyond the kiss of life!
• Some are only ‘temporary residents’ of this category

CSI – Where should the culture come from?
The business Governance
Senior IT
Leadership
CSI team
Service level
management
Problem
management
Risk
management
Process/
Service
owners
Business
relationship
management

WHERE ARE WE NOW – BASELINES

Benchmarking
Certification
Self Assessment
Self Assessment Is performed using a structured questionnaire.
Once completed the responses are assessed against a
recognised industry maturity model or standard to provide a score
or rating.
Certification verifies the organisations compliance to a recognised
standard and includes a formal audit by an independent and
accredited body.
Benchmarking is the process of measuring the quality, time and
cost of organisational activities and comparing these results
against best practices and/or peer group organisations.
Where are we now – Establishing Baselines

ITIL Process: Change Management
Process Goal:- “To ensure that standardised methods and procedures are used for efficient and prompt handling of all changes in order to minimise
the impact of Change related incidents upon service quality, and consequently to improve the day-to-day operations of the organisation”
Process Management Assessment
Process Maturity – ‘Self Assessment’
Customer Perspective
ITIL Gap Analysis
OGC ‘target score’ to achieve ‘capable process’
Self-Assessment scores for process
4 from 9 Indicators meet or exceed OGC maturity targets
G Process Owner assigned
Core Process Documented
End-End Process Documented
Process Measured
Process Optimised
G
A
A
R
A Process Management fully established
1. The Change process can be bypassed. This is a significant key controls issue.
2. The scope of current Change Management policies is limited. ITIL provides guidance
on additional and more stringent policies to improve the success rate of change and
reduce downtime.
3. The CFS change categories are not aligned to ITIL. ‘Common terminology’ becomes
more important as the process encompasses 3rd parties and the interfaces to Release
Management are further developed.
4. ITIL assigns a priority to changes raised. Priority is not used within CFS.
5. Implemented changes are not confirmed by the change raiser as completed. Changes
are automatically closed 48hrs after their scheduled implementation.
6. The documented process does not denote ‘Change Authorisation’ and make the
necessary differentiation between approval (interested parties) and authorisation (CAB,
Change Manager). Policy change is required.
7. There is no policy defined (In Incident Mgmt or Change Mgmt) for the delegation of
change authorisation in emergency situations and the criteria and supporting
procedures to mobilise an emergency CAB (CAB/EC).
8. ITIL recommends the use of a Change Model(s) to allow the pre-authorisation of
standard changes (Low risk, well understood, proven). This encourages use of the
Change Management system but without the overhead and rigour applied to normal
changes. Change Models are not used by CFS (This could help with issue 1).
9. The measurement for Change success is based upon compliance with the process
rather than quality of change and its implementation.
10. There are gaps in the range of Metrics and KPI’s produced or reported. eg reporting to
differentiate between Late and Emergency change is not detailed in the OPRM.
3.4
0 20 40 60 80 100
Pre Requisites
Management Intent
Process Capability
Internal Integration
Products
Quality Control
Management Information
External Integration
Customer Interface
Example - Self Assessment (ITIL Process Model)

Self Assessment – Pro’s and Cons
Pro’s
• Cost effective
• Flexible approach
• Repeatable
• Completed by Practitioners not Consultants
Con’s
• Reflects Internal view…… (Are you that good?)
• Need to chase individuals to complete
• Interpretation of questions
• Scoring bias to ensure results are favourable

Key
Performance
Results
Key
Performance
Results
Service Desk Certification Final Score Star Rating
3.59
Example- Certification (Service Desk Institute)

Certification – Pro’s and Con’s
Pro’s
• An independent assessment
• Attainment against a recognised industry standard.
• Demonstrates organisational capability
• Commitment to service excellence.
• Commercially beneficial (new business) this may be an
important marketing opportunity to exploit to help gain and
secure new business
• Staff satisfaction is improved.
• Drives a common and consistent way of working.
Con’s
• Staff morale takes a hit (Pre assessments show
you are not as good as you thought)
• Requires budget
• Annual independent audit to check compliance
• Re-certification every 3 years
• Need for Improved governance and management
controls

Example:- Benchmarking (Internal IT Services)
Measure Peer Group
Avg
ITOPS +
Service Desk
Number of FTE personnel
Costs per FTE
Number of contacts per FTE
Cost per contact
Avg contacts per user
First time fix rate
Average Agent Talk Time per call
Mainframe
Costs per FTE
Costs per MIP
Number of MIPS per FTE
Mainframe Availability (Bank Platform)
UNIX
Costs per FTE
Number of OS instances per FTE
Cost per OS Instance
Storage
Costs per FTE
Number of installed TB per FTE
Cost per installed TB
Measure Peer Group
Avg
ITOPS +
Application Support (Excludes Steria)
Costs per FTE
Number of Applications per FTE
Costs per supported application
Wintel (Excludes SCC)
Costs per FTE
Number of OS instances per FTE
Cost per OS Instance
Desktop (Excludes SCC)
Costs per FTE
Number of devices per FTE
Cost per device
Indicates where IT organisation compares
favourably against the selected Peer Group

Benchmarking – Pro’s and Cons
Pro’s
 An independent assessment on efficiency and effectiveness
 Peer Group comparisons
 Highlights key strengths
 Highlights areas where you are not cost effective/efficient
 Helps establish targets and new performance measures
 Opportunity for cost transparency with your customers
 Can reaffirm you are doing the right things
Con’s
 Requires budget.
 Data collection challenges
 Requires project management (to be timely and within budget)
 Findings challenged “Apples & Pears” debates
 Internal measures differ to benchmark
 Longer term outlook for improvements to be evidenced

Baselining: Some Other Sources
• SLA trends
• Uptime
• Downtime
• Frequency
• Responses
• Process measures
• Process KPIs
• Customer Surveys
• Staff Surveys

Assessment – Some Additional Guidance

Where do we want to be?
Shortcomings
Gaps
Differences
Self
Assessments
Certification
Benchmarking
Other Sources
Set Targets

Where do we want to be? - Outputs from Assessment Score
‘IT SCORE’ Self Assessment Results
Proactive Level 3‘ ’
‘GAPS’

Where do we want to be? - Objective/Target Setting
What targets should be set ?

What targets should be set?
Group Session
• CSI initiative instigated to focus on Batch Quality
• Where are we now? – Baseline Batch success/failure rate measure established
• Where do we want to be? - Need a KPI target
Baseline
Success Rate 99.68%
Failure Rate = 0.32%
What approaches can be taken to
establish a new KPI target for Batch
Quality?

Actual Approach
 Used ‘network’ to see what
others were doing
 Engaged batch product
vendors
 Engaged benchmarking
companies
 Established a best practice
target
One Approach
 Analysis of batch failures
 Top 10 failures
 Quick wins
 Assess Improvement
opportunity
 Set SMART KPI
 Measure and Review
Batch Success Rate KPI = 99.80%

‘IT SCORE’ Self Assessment Results
Target for 2013
Proactive Level 3
Areas for Improvement
 Deploy and adopt industry best practices at every opportunity
 Implement process management
 Establish IT service ownership
 Improve systems monitoring and tooling integration
 Improve Asset & Configuration Management
 Establish Business and Service capacity management
 Drive greater virtualisation of the infrastructure estate
 Centralise functions where appropriate
 Push greater Service Desk ‘Self Service’ capability out to
business areas
 Focus reward and recognition on staff who build robustness
into processes and infrastructure
 Develop succession planning for key roles
 Develop measures that demonstrate business value
Input to Operational Planning
‘GAPS’
How do we get there? - Example:- Outputs from Assessment
Score
New Target

How Do We Get There? - Some Other Techniques
ITIL ‘Tools’
• Expanded Incident Lifecycle
• Service Failure Analysis
• Technical Observation
TOP 10
• Outages
• Transaction failures
• Batch failures
• Longest running
• Repeat Incidents
Marginal Gains
• Break things down into smaller
parts
• improve each by ‘1%’
• You will get a significant increase
when you put them all together.

Detect Diagnose Repair Recover Restore
Start End
The ITIL ‘Expanded Incident Lifecycle’
• Using the ITIL ‘Expanded Incident Lifecycle’ to provide a simple timeline
structure
• The time of each stage of the failure and system restart was mapped to
provide an overall view of where time was ‘lost’
• Incremental ‘marginal gains’ approach taken
• Small reductions in aggregate made a big difference
• Loss of service from failure to restart reduced from 90 mins to <20 mins

The CSI SAT NAV
Thanks for joining us on the journey today

Clear thinking for a complex world…
Continuous service
improvement in SIAM
Stuart Rance &
@StuartRance
Andrew Vermes
@VermesAndrew
Bakery for enthusiasts

Overview: Service Integration and Management
MSI
Multi- sourcing
Services
Integration
(term used in USA)
What
Bringing a better IT user experience by
ensuring all service processes work
together seamlessly
Why
Different departments, silos, outsource
providers find it hard to work
together effectively
How
A stronger governance model and well
mapped process flows

SIAM layers
Client organisation
SIAM
Supplier Supplier Supplier Supplier
CSI for the
end to end
service
Transparenc
y required

— Think about the value network:
— Who’s the customer and who is the supplier?
Exercise:
— Try to identify a complete value network from your own environment
— What is the ultimate service delivered?
— What does that depend on (identify key inputs)
SIAM adding value

— CSI is more about attitudes, behaviour and culture
— Not about org, structure, process
— About having the right services, not just efficiency
— Local optimisation ….. Global suboptimisation
CSI

— Lack of accountability- vendors shift blame
— SLAs and OLAs don’t join up
— Retained IT ends up doing much of the work
— What else?
Your issues with multisourcing

Exploring Governance
— Understand own sphere of influence
— RACI matrix exercise

Developing cultural harmony
— Look at performance system
— Identify disconnects and plan

System Overview
Link rewards to
individual project
performance
Identify and
develop
competencies
Provide the
right environment
tools and software
Set clear performance expectations Measure performance
Provide
feedback
& coaching
Look at your (and their) Performance system

Building collaborative culture

Organisation Strategy Processes Measures Standards
List the main players in your
SIAM ecosystem, starting with
your own
What are the most important
results for this organisation?
What are the key processes for
this organisation?
Which measures or KPIs does this
organisation pay most attention to?
Are there specific standards or
benchmarks they use internally?
1
My company IT
Service Mgt
No downtime for
critical application
users
New customer
(consumer)
onboarding: incident
management, problem
management
Number of major
incidents, % of problem
cases with root cause
No major incident longer
than 2 hours
2
Data centre
Uptime for critical
infrastructure, low
cost per user
Provisioning &
retirement
Speed of request
fulfilment, Uptime
New virtual machines in < 1
hour, 99.8% availability
3
Networks Low cost Incident Management Network uptime
99.8% uptime (measured as
an average of all monitored
components)
4
Performance SIAM worksheet
Identifying disconnects

Using Shared methods
— Discussion: How many variations on the themes of
Incident, Problem and Change?
— Exercise in problem analysis

Shared methods improve communication
Four key questions:
What’s happening?
What will we do about it?
What risks are there?
How do we find the cause?
The goal is always-
effective action
DECISION
ANALYSIS
To select the
right fix or
workaround
POTENTIAL
PROBLEM
ANALYSIS
To manage
risksSITUATION
APPRAISAL
To Sort Out
Priority
Actions
PROBLEM
ANALYSIS
To Find True
Cause

WHAT BugMarket w eb client BugMarket native client login
What object?
What deviation? Login takes around 5 minutes instead Login fails
of a few seconds < 4 minutes
> 6 minutes
WHERE
BugMarket Web client connecting to
the w eb server in Spain
BugMarket Web client connecting to
the w eb servers in India & Canada
Where
geographically?
Where on the BugMarket w eb client on user
computer
BugMarket native client on user
computerobject?
WHEN January 21st, NMD Before this date. NMD
When first?
When since? 2-4 times per day more frequently (NMD)
06/02/08 @ 13:31:15 - 13:34 Every login
06/02/08 @ 14:48:33 - 14:51:28
When in the After clicking the "Login" button Trying to load the login page
life cycle?
EXTENT
How many objects? All users on all machines Only some users, all users on some
machines
Does using a consistent format help?

Opportunities
— CSI register template
— Doing right things as well as doing things right
— Hubbard on measurement
— How many things can you list that you could measure to
establish that an IT change succeeded?
— (measurement leading to improvement opportunities)
— Listing assumptions about the organisation

References
— Douglas Hubbard, How to Measure Anything
— ITIL practitioner guidance
— The Lean toolbox, John Bicheno
— New Rational Manager, Kepner & Tregoe (free ecopy
from avermes@kepner-tregoe.com)
— Scheinkopf, Lisa J. Thinking for a change : Putting the TOC
thinking processes to use
— The Phoenix project, Gene Kim & Kevin Behr

DevOps and Agile in an ITSM World
Dave van Herpen
Claire Agutter

Agenda
 Why:
 Why are you here?
 Business and IT drivers
 The value of change
 What
 Perceptions of DevOps and ITIL
 The 3 ways
 How: Kanban, Scrum and Ops
 Selling DevOps: identifying opportunities &
risks in your business

About Me
 15+ years in IT service management
 Roles include help desk, change management, project
management, service management implementation,
consultancy and training
 Lead tutor and director of ITSM Zone since 2007
 Interested in anything that helps IT work better

About Me
• Established in 1974
• Sogeti Netherlands
• Lead Consultant Enterprise Agility & DevOps
• Coach, Trainer, Change Agent, Practitioner
• Expertise:
• Agile ITSM & DevOps
• Sourcing & SIAM
• Certified: ITIL, ASL, BiSL, Prince2, ISO20000,
Lean, Agile, Scrum, Kanban, SAFe

Why are you Here?
 What issues are you
looking to address?
 Today’s backlog

What is Agile?
1
2
4
Scrum
XP DSDM FDD
TDD
Kanban SAFe
Customer involvement
Incremental value
Fast learning

DevOps??
“…rather than being a market per se, DevOps is a philosophy, a
cultural shift that merges operations with development and
demands a linked toolchain of technologies to facilitate
collaborative change” Gartner
“…a cultural and professional movement that stresses
communication, collaboration and integration between software
developers and IT operations professionals”
DevOps Institute
“…an organizational mindset for continuously improving value
from the digital value chain by enabling cross-functional
collaboration on process, technology and behavior level”
Dave van Herpen

Business and IT Drivers
 What’s driving the
adoption of DevOps
and Agile ways of
working?

The value of DevOps
END SILO THINKING
& BUDGETING
REDUCE REWORK
& DELAY
RELIABLE, FREQUENT
& TRANSPARENT
DEPLOYMENTS
CLEAR OWNERSHIP &
MATCHING WOW TO
VOLATILE MARKET
Customer Satisfaction
Optimal value & risk
Short TTM
Efficient operations
Business
driven
Feedback
loops
Fast flow
Multidiscipl.
teams
Generic business driver How DevOps helps Value

128
1) Business value driven
Agile
Development
fixes this
Lean Startup
fixes this
DevOps Lite
fixes this
DevOps creates end-to-end Agility and Value creation.

4) Multidisciplinary teams
131

Related themes/methods
DevOps
Agile
Lean
TOC
Cloud
CD
ITIL

Perceptions: ITIL
Is it:
 Bureaucratic?
 Negative?
 Yesterday’s news?
 Process driven?

Perceptions: ITIL
Or….
 How IT is ‘done’
 Contractually required
 Millions of certified
professionals
 Common language

DevOps and ITIL together
Strategy
Design
Transition
Operation
Improvement

Sluggish Organisations
 Processes evolve over time
 Errors lead to an increased desire for control
 Metrics become meaningless
 Process vision is lost

Perceptions: DevOps
Is it:
 JFDI?
 Tech driven?
 Dangerous?
 Wild west?

Perceptions: DevOps
Or…..
 Exciting
 Attractive
 The future

The First Way: Flow
 Understand the flow of work
 Always seek to increase flow
 Never knowingly pass a defect downstream

The Second Way: Feedback
 Understand and respond to the needs of all
customers – both internal and external
 Shorten and amplify all feedback loops
 Emphasize right to left feedback

The Third Way: Continual Experimentation and
Learning
 Allocate time for the
improvement of daily
work
 Create rituals that
reward the team for
taking risks
 Introduce faults into
the system to
increase resilience

Keep CALMS and DevOps
Culture Automation
Metrics Sharing
Lean

Time for a Break...
Next up:
 Techniques for DevOps and Agile

Kanban for ITSM
►“Visual card”
►Toyota (TPS)
►Limit inventory & WIP
►Excess inventory = waste
►Time spent on excessive activities = waste

Kanban for ITSM
Foundation:
►Start with your existing process
►Respect current roles and responsibilities
►Strive for continuous improvement
►Everyone is a leader
Process principles:
►Visualize the workflow
►Limit WIP
►Pull work from left to right
►Monitor, adapt, improve

Scrum for ITSM
3 roles
Product Owner
Scrum Master
Team Member
4 ceremonies
Sprint planning
Daily scrum
Sprint demo
Retrospective
4 deliverables
○ Product Backlog
○ Sprint Backlog
○ Burndown Chart
○ Potentially Shippable Product

Select your challenge
1. Design a Kanban board for
an IT service team
2. How could you apply Scrum
to ITSM (e.g. service
planning, evaluation, CSI)
3. Which information/ practices
would you bring from your
support/ops towards dev?

Process = consistent
way of doing
repeatable tasks
Ideal for automation

Process = free time to
focus on the complex
stuff
Process = streamlined
decisions

Agile ITSM
 Traditional ITSM rollout
methods don’t always
work well
 Apply Agile principles to
ITSM design
 Allow faster feedback
 Get better at process
integration

Agile ITSM: Change
 Go back to first principles
 Leverage automation
 Examine the desired rate of
change
 Adapt change authorization,
documentation etc.

Agile principles & ITSM
ITIL® Practitioner’s 9 Guiding Principles
Agile ITSM Manifesto

Selling DevOps
 In groups of 4,
identify potential
risks (impediments)
& opportunities
when adopting
DevOps in your
organisation

 Recommended reading:
– The Phoenix Project
– The Goal
– Principles of Product
Development Flow
– Lean Startup
 Contact details
The End

Contact Details
 Claire@itsm.zone
 Twitter: @ClaireAgutter
 Linkedin: Claire Agutter
 Facebook: nope
 dave.van.herpen@sogeti.com
 Twitter: @daveherpen
 Linkedin: davevanherpen
 Facebook: dave.vanherpen

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