The document serves as a comprehensive guide for implementing IT Service Management (ITSM) using the Information Technology Infrastructure Library (ITIL) framework. It outlines essential processes across five lifecycle phases, emphasizes the importance of change management, and highlights software asset management strategies. Key activities involve organizational engagement, planning, and utilizing technology to enhance software lifecycle management and minimize financial risks.

1. Implementing IT Service
Management: A Guide for
Success
By: Dave Cornelius, MBA, PMP, PMI-ACP, Six Sigma BB,
CSM, ITIL v3

2. Learning Objectives
 At the conclusion you will be able to
….
◦ Identify an implementation framework to
support your IT Service Management
(ITSM) project
◦ Plan your next ITSM process
improvement project
◦ Select ways to socialize the ITSM value
proposition to stakeholders
 The learning outcome will be
assessed in your next successful
project

3. What is Information Technology
Infrastructure Library (ITIL)?
 The de-facto standard and framework comprised
of lifecycle phases and IT Service Management
processes to meet the needs of the business
stakeholders
 The ABC’s of IT Operations management
 How to Plan, Design, Implement, Operationalize,
and support IT Operations Continual Improvement
Hurricane

4. The ITIL Phases & IT Service
Management (ITSM) Processes
 5 Lifecycle Phases
 26 IT Service Management processes
Lifecycle
Phases
IT Service Management processes
Service Strategy (1) Service Strategy Management, (2) Service Portfolio
Management, (3) Demand Management, (4) Financial
Management, (5) Business Relationship Management
Service Design (6) Design Coordination (7) Service Level Management, (8)
Service Catalog Management, (9) Availability Management,
(10) Information Security Management, (11) Supplier
Management, (12) Capacity Management, (13) IT Service
Continuity Management
Service Transition (14) Change Management, (15) Service Asset and
Configuration Management, (16) Release and Deployment
Management, (17) Knowledge Management, (18) Transition
Planning and Support, (19) Service Validation and Testing,
(20) Change Evaluation
Service Operation (21) Incident Management, (22) Problem Management, (23)
Event Management, (24) Request Fulfillment, (25) Access
Management

5. Implementing ITSM is a Change
Management Initiative
 Change management is the delivery of a stated goal on
time, within budget, and a sustainable benefit to the
organization (Merrell, 2012)
 Organizational change is a transformation from the current
state to a desired state for improved effectiveness (Jones,
2010)
Image Source: B-EN-G.

6. ITSM Change Management
Focus
 Success depends on equal attention to:
◦ People, Corporate culture, Process, &
Technology
 Success depends on the right balance of
business and technology
 Supported by a cross-functional team
 Warning!: Partner with your
Organizational Development (OD) team,
if change management is not your
strength
Source: Porter, J. (2011). Managing Change.

7. Key Activities to Support ITSM
Change Management
 Create a vision and communicate it
early and often
 Commit to the proposed change
 Create a plan
 Know & understand your business
culture
 Listen to the Nay-Say-ers & build
synergy
 Be aware of the resistance
 Improve your plan as needed

8. Business Scenario
 2009: Microsoft license annual True-
up resulted in $500,000 overage
 2010: Microsoft license annual True-
up resulted in $1,500,000 overage
 2011: Microsoft license annual True-
up resulted in $2,000,000 overage
 CFO and CIO are having a melt down
 There is a demand to Fix-it!

9. Software Asset Management
 “Software Asset Management (SAM) is all
infrastructure and processes necessary for
the effective management, control and
protection of the software assets with the
organization, throughout all stages of their
lifecycle.” – ITIL v3 Guide to Software Asset
Management
 Important to the CIO and CFO
 Not one of the ITSM 26 processes and not
in the list of top 10 ITSM processes
 SAM maps to ITSM through the Service
Assets and Configuration Management
process

10. Software Asset Management Cont’d
 Focused on cost-avoidance or risk
mitigation
 Resides on Desktops, Servers, Mainframes,
and Mobile devices
 Will become a challenge when Bring-You-
Own-Device (BYOD) takes off in the
industry
 Even more frightening is the CLOUD
 Includes Business and IT resources to be
successful
◦ Finance, Strategic sourcing, Accounts payable
◦ Desktop, Server, Network, & Release teams
◦ 3rd party vendor

11. ITSM Delivery Model & Framework
Activities Deliverables
 Review current process flow
 Conduct interviews and workshops
 Perform gap analysis of current state vs.
desired state vs. ITIL best practices
 Evaluate the organization Maturity Level
 Gap analysis
 Life cycle processes and
technologies
 Organization and
governance
 Define the future state strategy,
roadmap and implementation plan
 Future state strategy and
roadmap
 Total cost to ownership
 Executive Summary
 Design solution
 Evaluate impacts on other processes
like business continuity, incident and
problem management, etc.
 Life cycle processes,
technologies, and
organization
 Deliver the solution  Life cycle processes,
technologies, and
organization
 Analysis tool
Phases
CONTINUAL IMPROVEMENT

12. Evaluate
Participants: Project Manager, Process Consultant, Executives, &
Management

13. Conduct Interview: Strategic
Questions
 Who are the key stakeholders impacted
by this change?
 What are the specific strategic goals that
you want to accomplish by implementing
the process?
 Please describe the roadmap and any
planning that is currently underway.
 What do you consider key opportunities
and challenges?
 How do you plan to address challenges
and constraints?

14. Conduct Interview: Other SAM
Areas
 SAM Practices
 SAM Technologies
 Procurement/Contract management
practices
 SAM Financial management
 Corporate systems (ERP)
technologies
 ITSM Services and technologies

15. Software Asset Management
Processes: ITIL Best Practices
a. Inventory Management
b. Contract Management
c. Entitlement Management
d. Status Accounting
e. Database Management
f. Financial Management
II – Core Software Asset Processes
a. Requirements definition
b. Design
c. Evaluation
d. Procurement
e. Build
f. Deployment
g. Operation
h. Optimization
i. Retirement
III – Lifecycle Processes
a. Strategy and Roadmap
b. Management and Ownership of
Policies, Processes & Procedures
c. Risk Management
d. Communications & Awareness
e. Metrics & Continuous Improvement
f. Technology Coordination &
Architecture
g. Service continuity and availability
I – Overall Management Processes
Identify and maintain information about software
assets throughout the lifecycle and manage assets.
Control all activities affecting the progress of
software through the lifecycle
Establish and maintain governance and management
infrastructure for Software Asset Management
processes implementation
a. Verification and audit
b. Licensing compliance
c. Security compliance
d. Other Compliance
IV – Verification and Compliance
Processes
Detect, escalate, and manage all exceptions to
Software Asset management policies, processes,
procedures, and license rights.
Source: ITIL V3 Guide to Software Asset Management

16. Software Asset Management Maturity
Optimization Model
Software Asset Management Maturity Optimization Model
Basic – Ad Hoc
• Little control
over what IT
assets are used
and where.
• Lacks policies,
procedures,
resources, and
tools.
Standardized –
Tracking Assets
• Processes exist
as well as
tool/data
repository.
• Information
may not be
complete and
accurate and
typically not
used for
decision
making.
Rationalized –
Active Management
• Vision, policies,
procedures, and
tools are used to
manage IT
software asset life
cycle.
• Reliable
information used
to manage the
assets to business
targets.
Dynamic –
Optimized
• Near real time
alignment with
business needs.
• Software Asset
Management is
a strategic asset
to overall
business
objectives.
Source: Microsoft and KPMG 2008

17. Make Your Maturity Optimization
Model Purposeful
 Map your maturity optimization model
to a business metric.
 For example, the Dynamic (Optimized)
state delivers $2 million annual
savings.
 Socialize your value-driven
optimization model to the organization
 Work with marketing to share the good
news

18. Gap Analysis
Gap ID GAP Impact Remediation Level
of Effort
(Months)
1 Lack of executive
sponsorship
People cannot identify
with a single strategy
Select a strong leader
who speaks for the
organization
1.5
2 Undefined governance
and accountability
Too many people
working on the same
problem. Too many
Chiefs and Cowboys!
Increase process rigor
and governance
2
3 Undefined KPIs’ to track
performance
Unable to measure
success or failure
Establish a
measurement baseline
and enable continuous
improvement
measurements over
time by defining and
agreeing to concise
KPIs’.
3

19. Strategize
Participants: Project Manager, Process Consultant, Executives, &
Management

20. Software Asset Management
Strategy
 Objective
 Increase control over software life cycle management.
 Scope
 Develop an integrated solution to include people, process, and tools
 Governance
 Select a leader and define the vision and roadmap.
 People
 Leverage internal people core knowledge and complement with
consulting expertise.
 Processes
 Design and implement key processes, which includes overall
management, core software asset lifecycle, and validation and
compliance processes.
 Technology Tools
 Leverage existing systems. Architect and integrate an seamless
solution.
 Process Maturity Optimization Model Options
 Identify what level is optimal (Basic, Standardized, Rationalized, or
Dynamic Optimization model).

21. Software Asset Management People
and Governance Structure
Executive
Sponsor
Finance
Accounts
Payable
Procurement
Procurement
Analyst
Legal
Legal
Analyst
IT
Operations
Governance,
Compliance,
Risks
IT Asset
Manager
Process
Owner
Process
Manager
Asset
Analyst
Systems
Manager
PMO
Project
Manager
Business
Community
Product
Owners

22. Software Asset Management
Roadmap
(Milestones)
Oct NovJan Feb Mar Apr SepAugJulJunMay
Phase 5 – Tactical Activities Vendor Software Reconciliation
Go
Live
Phase 1 -
Planning
Phase 2 – Design
Phase 3 – Build
Phase 4 – Deliver
 Leader selected
 Program vision, planning & governance
 Assemble team
 Management Processes complete
 Policies designed
 Technology tools architecture integration designed
 Policies and procedures complete
 Technology tools integrated
 Processes approved and agreed upon
 Transition plan complete
 Communication & training
prepared
 Operational organization in place
 Solution pilot
 All vendors reconciled
 Inventory up to date
 Contracts are settled

23. Executive Summary
 What are the identified gaps?
 What are the benefits of the new
process?
 What is the risk mitigation strategy?
 How much will the new process cost?
 When will it pay for itself?

24. Orchestrate
Participants: Project Manager, Process Consultant, Management, & Team

25. Software Asset Management Roadmap
(Planning, Design, Build, & Deliver)
Oct NovJan Feb Mar Apr SepAugJulyJunMay
Phase 5 – Tactical Activities Vendor Software Reconciliation
Go
Live
Phase 1 -
Planning
Phase 2 – Design
Phase 3 – Build
Phase 4 – Deliver
2.1: Overall Management
Processes
2.2: Core Processes
2.5: Technology Configuration &
Integrations
2.3: Life Cycle
Processes
2.4: Verification &
Compliance
3.1: Overall Management
Processes
3.2: Core Processes
3.3: Life Cycle
Processes
3.4: Verification &
Compliance
3.5: Technology Configuration &
Integrations
4.1: Overall Management
Processes
4.2: Core Processes
4.3: Life Cycle
Processes
4.4: Verification &
Compliance
4.5: Technology Configuration &
Integrations

26. Workshops
 Occurs in every phase
 Interactive learning experience
 Role play
 Opportunity for cross-functional
learning
 Representatives from all functional
area actively engaged

27. SAM Workshop Procurement
Process Role Play
1. Initiate
internal order
(requisition)
2. Process
internal order
3. Initiate
external order
4. Place
external order
5. Process
incoming
media
6. Install
software
7. Process
invoices
8. Process
proof of
license
Business leader Procurement Procurement Procurement
Desktop
Accounts Payable SAM Coordinator
Desktop &
Procurement
Source: ITIL V3 Guide to Software Asset Management

28. Software Asset Management Process
& Technology Framework Best
Practices
Asset Request
(Service Catalog)
Asset Management
Repository
Discovery Tool(s)
Procurement
Finance
Human Resources
Service Asset &
Configuration
Management
Vendor Portal
Change Management
Release & Deployment
Management
Patch & Deployment
Tool(s)
End
Start
New Requests
Existing Requests
People
PO’s
Payments
PO’s
Changes
Deployments
IT Service Management IT Asset Management ERPLegend:

29. Marketing and Education
 Marketing
◦ IT people are terrible at marketing
services or products
◦ Engage the internal marketing team
◦ Build and execute a marketing campaign
 Education
◦ Establish learning sessions by working
with your internal training team
◦ Use the local intranet to communicate and
train the masses

30. Deliver
Participants: Project Manager, Process Consultant, Executive,
Management, & Team

31. Software Asset Management
Processes: Industry Best Practices
a. Inventory Management
b. Contract Management
c. Entitlement Management
d. Status Accounting
e. Database Management
f. Financial Management
II – Core Software Asset Processes
a. Requirements definition
b. Design
c. Evaluation
d. Procurement
e. Build
f. Deployment
g. Operation
h. Optimization
i. Retirement
III – Lifecycle Processes
a. Strategy and Roadmap
b. Management and Ownership of
Policies, Processes & Procedures
c. Risk Management
d. Communications & Awareness
e. Metrics & Continuous Improvement
f. Technology Coordination &
Architecture
g. Service continuity and availability
I – Overall Management Processes
Identify and maintain information about software
assets throughout the lifecycle and manage assets.
Control all activities affecting the progress of
software through the lifecycle
Establish and maintain governance and management
infrastructure for Software Asset Management
processes implementation
a. Verification and audit
b. Licensing compliance
c. Security compliance
d. Other Compliance
IV – Verification and Compliance
Processes
Detect, escalate, and manage all exceptions to
Software Asset management policies, processes,
procedures, and license rights.
Source: ITIL V3 Guide to Software Asset Management

32. Critical Success Factors
 Identify activities that will protect the
organization from risk
 Identify ways to increase capabilities
 Identify ways for Cost management
Critical Success Factors Performance Level
Manage financial risks to the organization High
Track Software Assets when making changes High
Leverage technology tools to report on SAM
activities
High

33. Key Performance Indicators
(KPI)
Name Description Calculation
Key cost indicator (KCI) Spending management Cost savings against
budget — unbudgeted
expenditure
Key risk indicator (KRI) Estimated exposure Maximum potential
financial liability
Key value indicator
(KVI)
Data quality Coverage and accuracy
as a percentage of total
historical software
spending
Source: Gartner 2012
 KPI information evolve over time
 Measure what’s relevant to the organization
 Use SMART (specific, measurable,
attainable, relevant and timely) Objectives

34. Technology and Analysis
Tools
 HP Asset Manager
 Service Now
 Altiris Metering tools
 BladeLogic (Server discovery tool)
 CMDB (HP DBMA)
 PeopleSoft Financials

35. Summary
 Be aware that your effort is a change
management initiative and not a
technology project
 Engage the organization on all levels
 Use a simple process to guide your
delivery strategy
 Know your core competency.
Collaborate with internal and external
partners
 Market and educate about your process
improvement project to the organization

36. Q & A
 If you have any questions, please ask
your neighbor.

37. About Dave Cornelius
 Sr. Manager at Cognizant Technology
Solutions; IT Service Management
Consulting Group
 Involved in business transformation
through IT and Business Process
Improvement methods for the past 29
years
 Doctorate of Management:
Information Systems Technology -
2013 Candidate
 Project Management Institute -
Orange County Executive Board
member
 Toastmasters Area Governor
 Husband and Father
 Believes “Systems Thinking” is the
key to solving problems
 Aspiring Servant Leader

38. Appendix A – Survey
Questions
 Can you identify
the key
stakeholders
impacted by this
change?
 What are the specific strategic
goals that you want to
accomplish by implementing the
process?
 What do you consider
key opportunities and
challenges?
 Please describe the
roadmap and any
planning that is
currently underway.
 How do you plan to
address challenges
and constraints?
Survey Question 1 Survey Question 2
Survey Question 3
Survey Question 4 Survey Question 5

39. Appendix B – Workshop
Cards
 I am in the Service
Request system
and placed an
order for 50
Microsoft Office
licenses
 I am in the Service
Request system
and processed an
internal order for
50 Microsoft
Office licenses
 I am in the
External Vendor
Portal system and
received an order
for 50 Microsoft
Office licenses
 I am in the
External Vendor
Portal system and
placed an internal
order for 50
Microsoft Office
licenses
 I am in the Software
Asset Management
system and updated the
receipt of an order for
50 Microsoft Office
licenses
 I am in the SAM
system and installed
50 Microsoft Office
licenses
 I am in the
Accounts Payable
system and
processed an
invoice for 50
Microsoft Office
licenses
Business leader Procurement-1
Desktop-1Accounts Payable
Procurement-2
Procurement-3 Procurement-4
 Proof of
license
updated in
SAM System
Desktop-2