The document provides an overview of Service Design according to ITIL. It discusses how Service Design translates strategic plans into service specifications and designs to be implemented through Service Transition and Operations. Key aspects of Service Design include designing new or changed services, service management systems, technology architecture, processes, and metrics. The document also covers topics like service portfolio and catalog management, sourcing approaches, key Service Design processes, and elements of Service Level Agreements.

1. Se rvice
De sig n
Se rvice
ITIL
Service
Strategy
Service
Operation
SERVICE
DESIGN
Continual Service
Improvement
Service
Transition
ITIL V3 Core Framework
Service Design
Design of appropriate and
innovative IT infrastructure
services

2. Service Design (SD)
 SD translates strategic plans and objectives and creates the design and
specifications for execution through service transition and operations.
 SD will appeal to those whose role is to bring together the infrastructure,
applications, systems, and processes, along with partners and suppliers, to
make feasible a superior service offering.
Main Target Audience:
– Service Managers and providers.
Main Influencers:
– IT operational staff, service owners, service providers, vendors.

3. SD – Key Terms
 Architecture : The structure of a system or IT service, including the
relationship of the components to each other and to the environment they are
in.
 Availability : Ability of a Configuration Item or IT service to perform its agreed
function when required.
 Contract : A legally binding agreement between two or more parties.
 Critical Success Factor (CSF) : Something that must happen if a process,
project, plan or IT service is to succeed.
 Design: An activity or process that identifies requirements and then defines a
solution that is able to meet these requirements.
 Downtime : The time when a Configuration Item or IT service is not available
during its agreed service time.
 Key Performance Indicator (KPI) : A metric that is used to help manage a
process, it service or activity.

4. SD – Key Terms
 Maintainability : A measure of how quickly and effectively a Configuration
Item or IT service can be restored to normal working after a failure.
 Operational Level Agreement (OLA) : An agreement between an IT Service
Provider and another part of the same organization.
 Service design Package : Documents defining all aspects of an IT service
and its requirements through each state of its lifecycle.
 Underpinning Contract (UC) : A contract between an IT Service Provider
and a third party. The third party provides goods or services that support
delivery or an IT service to a customer.

5. Service Design
 The Scope of SD extends to all IT Services, including interfaces and links to
design activities within the context of the Service Lifecycle.
 Service Design addresses five key aspects:
 New or changed services
 Service Management systems and tools
 Technology architecture and management systems
 Required processes
 Measurement methods and metrics

6. Service Portfolio & Service Catalogue
 Service Portfolio
– Contains information and all future requirements for every service
– Supports all processes
– Designed by Service Design
– Owned and managed by Service Strategy
 Service Catalogue
– Is a subset of Service Portfolio
– Is a customer-facing view of the IT Services in use.
– Contains
 Details of all operational services
 Summary of all services and customer characteristics.
 Service Design Package
– Defines a set of design constraints
– Passes the package to Service Transition
 Details and requirement of the Services.

7. Sourcing Approaches / Delivery Model Options
 Insourcing
 Outsourcing
 Co-sourcing
 Partnership
 Multisourcing
 Business Process Outsourcing
 Application Service Provision
 Knowledge Process Outsourcing

8. Main Categories of Sourcing Strategies
 Insourcing:
– This approach relies on utilizing internal organizational resources in the design,
develop, transition, maintain, operate, and/or support of a new, changed or revised
services or data centre operations.
 Outsourcing:
– This approach utilizes the resources of an external organization or organizations in a
formal arrangement to provide a well-defined portion of a service’s design,
development, maintenance, operations, and/or support.
 Co-sourcing :
– Often a combination of insourcing and outsourcing, using a number of outsourcing
organizations working together to co-source key elements within lifecycle.
 Partnership or Multisourcing:
– Formal arrangements between two or more organizations to work together to design,
develop, transition, maintain, operate, and/or support IT services.

9. Main Categories of Sourcing Strategies
 Business Process Outsourcing (BPO) : The increasing trend of relocating
entire business functions using formal arrangements between organizations
where one organization provides and manages the other organization’s entire
business processes or functions in a low cost location. Common examples
are accounting, payroll and call centre operations.
 Application Service provision : 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 investment.
 Knowledge Process Outsourcing : KPO is a step ahead of BPO in one
respect : KPO organizations provides domain based processes and business
expertise rather than just processes expertise and requires advanced
analytical and specialized skills from the outsourcing organization.

10. Service Design - Processes
 Service Catalog Management
 Service Level management
 Capacity Management
 Availability Management
 Service Continuity Management
 Information Security Management
 Supplier Management

11. Service Catalog Management
 Purpose :
– Single Source of Information on All Services
 Goal :
– Produce & Maintain Accurate Information on All
services
 Objectives :
– Manage Information within the Service Catalog.

12. Service Catalog Management
 The Service Catalog represents the authoritative source of information about IT
Services and ensures that the information is made available to all areas within
the business.
 The Service Catalog has two aspects:
– The Business Service Catalog: containing details of all the IT services delivered to
the customer, together with relationships to the business units and the business
process that rely upon the IT services.
– The Technical Service Catalogue : containing details of all of the IT services
delivered to the customer, together with relationships to the supporting services,
shared services, components and CIs necessary to support the provision of the
service to the business.

13. Service Catalog Management
Provides accurate and consistent information enabling service-focussed working

14. Service Catalogue Management - Roles
 The Service Catalogue Manager is responsible for ensuring :
– Achievement of process goals
– All operational services recorded within the Service Catalog
– That all information within the Service Catalog is accurate and up to date
– The consistency of all information within the Service Catalog with the Service
portfolio.

15. Service Level Management (SLM)
 Purpose :
– Ensure All operational Service & Performance Are Measured
 Goal :
– Ensure Agreed Levels of Service are Delivered.
 Objectives :
– Define, Document, Agree, Monitor, Measure, Report & Review the level of IT
services provided.
– Provide and improve the relationship and communication with the business and
customers.
 SLM provides a consistent interface to the business for all service related
issues.
 It provides the business with agreed service targets and required
management information to ensure that those targets have been met.

16. SLM - Agreements
 Service level Requirements (SLR): Is a set of targets and responsibilities
documented and agreed witihin and SLR for each proposed new or changed
service. SLRs are based on Business Objectives and are used to negotiate
agreed Service Level Targets.
 Service Level Agreement (SLA) : Is a written agreement between an IT
service provider and the IT customer, defining the key service targets and
responsibilities of both parties.
 Operational Level Agreement (OLA): Is an agreement between an IT
service provider and another part of the same organization that assists with
the provision of services.
 Underpinning Contract (UC) : Is a contract between service provider and an
external supplier covering delivery of service that support the IT organization
in their delivery of services.

17. ClientsClientsClientsClients
SLA - Service Level AgreementSLA - Service Level Agreement
Service ITService IT
SLM - Service Level ManagementSLM - Service Level Management
Service ITService IT
SLM - Service Level ManagementSLM - Service Level Management
OLA - Operational Level AgreementOLA - Operational Level Agreement UC - Underpinning ContractsUC - Underpinning Contracts
INTERNALINTERNALINTERNALINTERNAL EXTERNALEXTERNALEXTERNALEXTERNAL
SLA & OLA

18. Elements of a SLA
General
– Introduction : Parties, Signatures, Service Description
– Reporting & Reviewing : Content, Frequency
– Incentives & Penalties
Support
– Service Hours, Support, Change Procedures, Escalation
Delivery
– Availability, Reliability, Throughput, Transaction Response Time, Batch Turn-around
Times, Contingency & Security, Charging

19. Elements of a SLA

20. Service Level Management Activities
 Design SLA Frameworks
 Determine SLRs- Negotiate SLA
 Monitor Service Performance
 Iterative Customer Satifisfaction
 Manage UCs & Service Scope
 Produce Service Reports
 Conduct Service Reviews
 Manage & Revise SLA and UCs
 Manage Contacts & Relationships
 Manage Complaints & Compliments

21. Types of SLA
 Service-based SLA
– All customers get same deal for same services
 Email
 Customer-based SLA
– Different customers get different deal (and different cost)
 Multi-level SLA
– These involve Corporate, Customer and Service levels and avoid repetition
 Corporate Level
– Generic – All Customers
 Customer Level
– Particular Business Unit
 Service Level
– Specific Service

22. SLA Monitoring
 Nothing Should be in a SLA That Can’t be Monitored
 Review Existing Monitoring Capabilities
– Done in Parallel with SLA Negotiation
– Must Match Customer’s Perceptions
 Service Desk Included in Monitoring
– Incident Response
– Resolution
 End-to-End Service Monitoring.

23. Improving Customer Satisfaction
 “Soft Issues”
– Collate
 Expectations vs. Perceptions
– Measure
 Questionnaire
 Surveys
– Improve
 Service Improvement Plan (SIP)

24. SLM Measures
 Service Level Management (SLM) is a multi-faceted process, and
measurements can reflect its progress in each area.
– Quality metrics measures the performance of services under management.
– Cost Metrics measures the cost of providing service at agreed levels and of
monitoring service levels.
– Business Interface metrics measure the number of services covered by SLAs, the
performance of the SLM cycle of negotiating & review, and the quality of the SLAs
themselves.

25. Capacity Management
 Purpose:
– Point of Focus for Capacity & Performance issues
 Goal :
– Ensure Cost Justified Capacity in All Areas of IT
 Objective :
– Meet Business Demand for IT Services.

26. Capacity Management
 Capacity Management is responsible for ensuring that processing
and storage capacity matches the evolving demands of the business
in the most cost-effective manner.
 The process encompasses:
– understanding the current demands on IT resources and producing forecasts for
future requirements influencing the demand for resources
– the monitoring of performance and throughput of IT services and the supporting
infrastructure components
– undertaking tuning activities to make the efficient use of existing resources
 Capacity Management is essentially a balancing act; balancing
– cost against capacity – i.e. the need to ensure that processing capacity that is
purchased is not only cost justifiable in terms of business need, but also in the need
to make the most efficient use of those resources
– supply against demand – i.e. making sure that the available supply of processing
power matches the demands made on it by the business, now and in the future.

27. Capacity Management
 The Capacity Management Information System (CMIS) is the
cornerstone of a successful Capacity Management process.
 Information contained within the CMIS is stored and analyzed by all
the sub-processes of Capacity Management for the provision of
technical and management reports, including the Capacity Plan.

28. Capacity Management - Measures
 Business forecast accuracy
 Technology Knowledge
 Effective cost management
 Planning & implementation measurements

29. Sizing and Modeling
 Application Sizing
– Application Sizing has a finite life-span. It is initiated at the Project Initiation stage for
a new application or when there is a major change of an existing application, and is
completed when the application is accepted into the operational environment.
 Modeling
– A prime objective of Capacity Management is to predict the behavior of computer
systems under a given volume and variety of work.
– Modeling is an activity that can be used to beneficial effect in any of the sub-
processes of Capacity Management.
 Some modeling techniques are:
– Trend analysis
– Analytical modeling
– Simulation modeling
– Baseline models

30. Availability Managements
 Availability Management should ensure the required level of
availability is provided.
– The measurement and monitoring of IT availability is a key activity to ensure
availability levels are being met consistently.
– Availability Management should continuously look for ways to optimize the
availability of the IT infrastructure and supporting organization, in order to provide
cost effective availability improvements that can deliver evidenced business and end
user benefits.
 Availability Planning
 Availability Improvement
 Vital Business Functions
 Assessing Current Capability
 Operations

31. Availability Management activities
 Ensuring service availability meets SLAs
 Determining the cause of availability failures
 Reviewing business requirements for availability of business systems
 Cataloging business requirements
 Ensuring proper contingency plans are in place and tested
 Establishing high-availability, redundant systems to support mission-
critical applications

32. Aspects of Availability
 Availability : The ability of service, component or CI to perform its
agreed function when required
 Reliability : A measure of how quickly and effectively a service,
component or CI can perform its agreed function without interruption
 Maintainability : A measure of how quickly and effectively a service,
component or CI can be restored to normal working after a failure
 Resilience (Redundancy) : The ability of a component or service to
keep running where one or more components failed.
 Serviceability : The ability of a third party supplier to meet the terms
of their contract.

33. Availability Calculation

34. Availability Calculation - Example
 A 24x7 Email Service requires a weekly 2 hour planned downtime period for application
maintenance. Following the completion of the weekly maintenance an application
software error occurs which results in 3 hours of unplanned downtime.
 The weekly Availability for the IT Service in this reporting period is therefore based on
the following
– The AST should recognize that the planned 2 hr weekly downtime is scheduled.
– The DT is the 3hrs of unplanned outage following the application maintenance
– The AST value is therefore 24hrs x 7days - 2 hours maintenance = 166 hrs/week
 The Availability Calculation is:-
 A = 166-3/166 x 100 = 98.78%

35. Availability = Host * Network * Server * Workstation
= 0.98 * 0.98 * 0.98 * 0.975 * 0.96
= 0.8809
Total Infrastructure Availability = 88.09%.
Availability = Host * Network * Server * Workstation
= 0.98 * 0.98 * 0.98 * 0.975 * 0.96
= 0.8809
Total Infrastructure Availability = 88.09%.
Total Infrastructure Availability

36. Service Continuity Management
 Purpose :
– Maintain the Necessary on Going Recovery Capability
 Goal:
– Support Overall Business Continuity Management
 Objective :
– Mitigate Risks & Create and Maintain Recovery Plans

37. Service Continuity Management
 The objective of Service Continuity Planning is to restore IT services as
quickly and as completely as possible after a disaster has taken place
 IT Service Continuity Management ensures that the required IT technical and
services facilities (including computer systems, networks, applications,
telecommunications, technical support and service desk) can be recovered
within required, and agreed, business schedules.
 The reasons an organization should implement IT Service Continuity
Management are :
– Avoid financial risks (insurance)
– Increased dependence on IT services; business protection
– Provides a competitive edge
– Legal requirements
– Customers’ demands

38. Service Continuity Management
 Business Continuity Management (BCM) is concerned with managing risks
to ensure that at all times an organization can continue operating to, at least,
a predetermined minimum level.
 The BCM process involves reducing the risk to an acceptable level and
planning for the recovery of business processes should a risk materialize and
a disruption to the business occur.
 IT Service Continuity Management (ITSCM) must be a part of the overall
BCM (Business Continuity Management) process and is dependent upon
information derived through this process.
 ITSCM is focused on the continuity of IT Services to the business.
 BCM is concerned with the management of Business Continuity that
incorporates all services upon which the business depends, one of which is
IT.

39. Service Continuity Management Measures
 Audits against agreed business requirements
 Regular review and tests
 Staff readiness
 On-going communication of objectives

40. Information Security Management
 Purpose:
– Provide Focus for Aspects of IT Security
 Goal :
– Align IT & Business Security
 Objective :
– Protect the interests of those relying on information.

41. Information Security Management
 The Information Security Management process ensures that the security
policy is implemented and supports the needs of the Business Security Policy.
 Information Security has three components (CIA)
– Confidentiality
– Integrity
– Availability

42. Information Security Management - Measures
 % Decrease in number and impact of breaches
 Decrease in number of non-confirming processes
 % increase in SLA conformance to policies.

43. Supplier Management
 Purpose :
– Obtain Value for Money Spent & Ensure Performance
 Goal:
– Manage Suppliers & Their Services
 Objectives :
– Manage Supplier Relationships & Optimize Supplier Performance.

44. Supplier Management
 Supplier Management manages suppliers and the services they provide to
ensure they support IT service targets and business expectations.
 Supplier Management process should include implementing and enforcing the
supplier policy, maintaining a Supplier and Contract Database (SCD),
categorizing and evaluating suppliers and contracts.

45. Supplier Management - Measures
 Increase in number meeting contractual targets
 Increase in number of reviews
 Reduction in supplier caused breaches
 Increase in number of suppliers with defined managers.

46. SD – Skills & Attributes
 Regardless of an individual’s role within IT Service Management, each person
should develop his/her skills and attributes to develop general business
awareness and the ability to perform his/her role in support of these
objectives
 Business Awareness
 Understanding of IT Roles
 Customer Service
 Awareness of Current IT Capability
 Knowledge & Information for Role
 Understanding of
– Practices
– Policies
– Procedures

47. SD – Roles & Responsibilities
 Process Owner
 Service Design Manager
 IT Planner
 IT Designer/Architect
 Service Catalog Manager
 Service Level Manager
 Availability Manager
 Service Continuity Manager
 Capacity Manager
 Security Manager
 Supplier Manager

48. Questions