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Applying the Principles of the Information
   Technology Infrastructure Library
           MTP4032
       Wednesday, 9:15 p.m.
                  Tim Salaver
               Dana Software, Inc.
Infrastructure Management

   Unisys managed service
    development staff are certified
    in IT Infrastructure Library (ITIL)
    standards, the emerging
    benchmark for IT service
    management. Unisys then
    applies these best practice
    service processes to their global
    managed service methodology.
Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         2 Inc.
What does it mean?
   Used by hundreds of organizations
    throughout the world and supported by
    companies such as Unisys, Hewlett
    Packard, Proctor and Gamble, and Nortel
    Networks, ITIL is a set of documents
    created by the United Kingdom's Office of
    Government Commerce (OGC).
   ITIL is the most widely accepted approach
    to IT service management in the world, ITIL
    provides a comprehensive and consistent
    set of best practices for IT service
    management, promoting a quality
    approach to achieving business
    effectiveness and efficiency in the use of
    information systems.

Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         3 Inc.
Implementing ITIL Best Practices

   Aligning technology initiatives to corporate
    objectives is a responsibility of every
    technology department.
   ITIL is relevant to virtually anyone who
    provides IT services to Customers,
    partners, suppliers, or internal colleagues.




Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         4 Inc.
Implementing ITIL Best Practices
   IT Service Management best practices are
    systematically and cohesively based on
    service quality and developing effective
    and efficient processes.
   Improved support to the business in
    delivering better services to customers
    tailored to their needs.
   By offering services, based upon effective
    and appropriate underlying principles,
    practices are designed and developed in
    sympathy with the customer's
    requirements, the customer's business
    practices and goals can be more readily
    matched.
   IT can then become an enabler of the
    business rather than merely a support
    function.
Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         5 Inc.
Benefits of ITIL
   ITIL concepts and practices have
    been created for IT Service Delivery
    and IT Service Support.
   Increased efficiencies in customer
    service, technology resource
    management, and cross-functional
    corporate productivity.
   ITIL is guidance and
    recommendations and not software
    nor tools


Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         6 Inc.
Best Practices Framework




   (ICT) - Information and Communications Technology

Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         7 Inc.
Service Delivery

   Service Level Management
   Availability Management
   Capacity Management
   IT Financial Management
   Continuity Management




Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         8 Inc.
Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         9 Inc.
Service Support

   Service/Help Desk
   Incident Management
   Problem Management
   Change Management
   Release Management
   Configuration Management



Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         10 Inc.
Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         11 Inc.
Defining the Problem
   Gartner Group report which showed that nearly
    80% of production outages occur as a result of
    operator error (40%) and application failures (40%).
    The remaining 20% are a result of technology errors
    caused by the operating system and hardware.
   These statistics clearly show the need for having
    Application Management and IT Service
    Management work closely together to reduce the
    production outages of IT systems.




Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         12 Inc.
Positioning of Application
Management
   The
    relationships
    between
    Application
    Development,
    Service
    Management,
    and Application
    Management


Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         13 Inc.
High-Level Business
Architecture




Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         14 Inc.
Defining Business
Architecture
   Clearly list business objectives and
    supporting IT services and
    applications
   This listing provides the basis on
    which to begin the definition of
    business objectives in each
    functional area, to be followed by the
    mapping of IT services and
    applications against these business
    objectives.

Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         15 Inc.
Strategic Alignment Model




Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         16 Inc.
Business–IT alignment and
Service Management
   Need for aligning business and IT
    objectives
   Use of an architecture to capture key
    business functions
   Build model, based on the strategic
    value of IT, to determine which of
    four main perspectives should be
    utilized in the alignment of business
    and IT strategies.


Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         17 Inc.
Twelve Steps to Enterprise
Alignment
1.    Determine Vision
2.    Define Mission
3.    Develop Strategies
4.    Set Goals
5.    Plan Business Portfolio
6.    Establish Policies and Procedures
7.    Create Processes and Activities
8.    Assign Resources and Assets
9.    Build Products and Services
10.   Fulfill Customer Needs
11.   Drive Operational Excellence
12.   Communicate Results

Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         18 Inc.
Strategic Alignment
Objectives Model (SAOM)
   Conceptualizes the relationship of IT
    services and IT systems to the
    business functions.
   Business functionality is deployed
    through applications, and
    applications make up IT systems and
    services.
   The SAOM depicts business
    functions directly supported by one
    or more IT services, which are made
    up of one or more IT systems
Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         19 Inc.
Strategic Alignment
Objectives Model (SAOM)




Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         20 Inc.
Potential implementation
pitfalls
   Do not try to implement the SAOM before stable service
    delivery to the business is established. Experience shows
    that most business functions are not willing to discuss
    added value or strategic issues when the availability and
    flexibility of the current IT services are poor.
   It is of little use to implement Application Management
    best practices, overlapping other disciplines like IT
    Service Management and application development, if
    these other disciplines have not reached a sufficient level
    of maturity.
   It is not possible to implement inter-process dependencies
    and management controls if the individual processes have
    no measurements and controls.
   Before implementing an application portfolio it is important
    to have mature Configuration Management, Release
    Management and software Configuration Management
    processes.
   There are few benefits to be gained from managing the IT
    investments from a business point of view if the assets
    themselves are not managed at an IT level.

Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         21 Inc.
Potential implementation
pitfalls
   The implementation of Application Management
    should not be confused with the introduction of
    other disciplines such as Service Level
    Management and testing.
   If an organization attempts to introduce a number of
    disciplines under the banner of Application
    Management then the costs and time implications
    will be extremely high and the implementation may
    be called to a halt.
   It will not be possible to determine whether process
    execution has been enhanced through
    implementing Knowledge Management unless
    processes have reached a level of maturity at which
    efficiency and effectiveness are constantly
    measured.




Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         22 Inc.
Service Dependency Model

   In order to understand and
    manage the reliance and
    criticality of an application within
    a system, it is important to
    understand how each
    application relates to others
    within the system, and also how
    this relationship affects other
    dependent systems.
Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         23 Inc.
Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         24 Inc.
Service         Examples of build phase manageability checks
  Management
  Functions
  Configuration   Have the developers built the application to conform to the
  Management      corporate standards that are used for Configuration
                  Management?
                  Does the application use only programs and tools that are
                  considered acceptable and are included within the product
                  catalogue?
                  Does the application include support for version control and
                  management?
                  Have the developers built in the chosen CI structure to the
                  application?

  Change          Has the application been built and tested against the
  Management      corporate Change Management process?
  Release         Has the application been built and tested in ways that ensure
  Management      it can be released into the environment in a simple and
                  efficient way?
  Security        Is the build process following security best practice for this
  Management      activity?
  Incident        Is a simple creation-of-Incidents process, for when something
  Management      goes wrong, built into the application and tested?
                  Has the compatibility with the organizational Incident
                  management system been tested?




Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         25 Inc.
Service         Examples of build phase manageability checks
  Management
  Functions
  Problem         Has the program’s ability to provide information to facilitate
  Management      root cause analysis and Problem Management been tested?
                  Has the program been developed to readily communicate
                  problems encountered.
  Capacity        Has the application been built and tested to ensure that it
  Management      meets the capacity requirements?
                  Has the capacity information provided by the application been
                  tested and verified?
                  Are stress and volume characteristics built into the
                  application?

  Availability    How has the application been built to address the availability
  Management      requirements of the application, and how has this been
                  tested?
                  What testing has been done to ensure that the application
                  meets the backup and recovery capabilities of the
                  organization?
                  What happens when the application is under stress?

  Service         Has the application been built to support the business
  Continuity      recovery process following a disaster, and how has this been
  Management      tested?
  Service Level   Does the application meet the SLA requirements of the
  Management      organization, and has this been tested?
  Financial       Has the application been built to deliver financial information,
  Management      and how is this being tested?

Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         26 Inc.
Summary
   The adoption and implementation of IT
    Service Management best practices should
    be a priority of all companies, but the
    expense and resources required is more
    suited toward those organizations with
    large IT departments that service hundreds
    or thousands of requests per month
   Fortune 2000 – the cost and revenue
    opportunities can mean millions of dollars
    in savings. In some cases, a 10-15%
    savings in IT costs can make a significant
    contribution to the bottom-line, affecting
    stock price and EPS. However, the most
    important beneficiaries are the IT
    customers.

Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         27 Inc.
Contact Information

              Tim Salaver
      SVP, Chief Products Officer
           Dana Software, Inc
            381 Stockton Ave
          San Jose, CA 95126
          (408) 279-3838 Main
         (408) 535-4337 Office
    tsalaver@danasoftwareinc.com
       www.danasoftwareinc.com


Copyright © 2003 Tim Salaver, Dana Software,September 23, 200
                                         28 Inc.

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Applying the Principles of ITIL

  • 1. Applying the Principles of the Information Technology Infrastructure Library MTP4032 Wednesday, 9:15 p.m. Tim Salaver Dana Software, Inc.
  • 2. Infrastructure Management  Unisys managed service development staff are certified in IT Infrastructure Library (ITIL) standards, the emerging benchmark for IT service management. Unisys then applies these best practice service processes to their global managed service methodology. Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 2 Inc.
  • 3. What does it mean?  Used by hundreds of organizations throughout the world and supported by companies such as Unisys, Hewlett Packard, Proctor and Gamble, and Nortel Networks, ITIL is a set of documents created by the United Kingdom's Office of Government Commerce (OGC).  ITIL is the most widely accepted approach to IT service management in the world, ITIL provides a comprehensive and consistent set of best practices for IT service management, promoting a quality approach to achieving business effectiveness and efficiency in the use of information systems. Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 3 Inc.
  • 4. Implementing ITIL Best Practices  Aligning technology initiatives to corporate objectives is a responsibility of every technology department.  ITIL is relevant to virtually anyone who provides IT services to Customers, partners, suppliers, or internal colleagues. Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 4 Inc.
  • 5. Implementing ITIL Best Practices  IT Service Management best practices are systematically and cohesively based on service quality and developing effective and efficient processes.  Improved support to the business in delivering better services to customers tailored to their needs.  By offering services, based upon effective and appropriate underlying principles, practices are designed and developed in sympathy with the customer's requirements, the customer's business practices and goals can be more readily matched.  IT can then become an enabler of the business rather than merely a support function. Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 5 Inc.
  • 6. Benefits of ITIL  ITIL concepts and practices have been created for IT Service Delivery and IT Service Support.  Increased efficiencies in customer service, technology resource management, and cross-functional corporate productivity.  ITIL is guidance and recommendations and not software nor tools Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 6 Inc.
  • 7. Best Practices Framework  (ICT) - Information and Communications Technology Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 7 Inc.
  • 8. Service Delivery  Service Level Management  Availability Management  Capacity Management  IT Financial Management  Continuity Management Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 8 Inc.
  • 9. Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 9 Inc.
  • 10. Service Support  Service/Help Desk  Incident Management  Problem Management  Change Management  Release Management  Configuration Management Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 10 Inc.
  • 11. Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 11 Inc.
  • 12. Defining the Problem  Gartner Group report which showed that nearly 80% of production outages occur as a result of operator error (40%) and application failures (40%). The remaining 20% are a result of technology errors caused by the operating system and hardware.  These statistics clearly show the need for having Application Management and IT Service Management work closely together to reduce the production outages of IT systems. Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 12 Inc.
  • 13. Positioning of Application Management  The relationships between Application Development, Service Management, and Application Management Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 13 Inc.
  • 14. High-Level Business Architecture Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 14 Inc.
  • 15. Defining Business Architecture  Clearly list business objectives and supporting IT services and applications  This listing provides the basis on which to begin the definition of business objectives in each functional area, to be followed by the mapping of IT services and applications against these business objectives. Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 15 Inc.
  • 16. Strategic Alignment Model Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 16 Inc.
  • 17. Business–IT alignment and Service Management  Need for aligning business and IT objectives  Use of an architecture to capture key business functions  Build model, based on the strategic value of IT, to determine which of four main perspectives should be utilized in the alignment of business and IT strategies. Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 17 Inc.
  • 18. Twelve Steps to Enterprise Alignment 1. Determine Vision 2. Define Mission 3. Develop Strategies 4. Set Goals 5. Plan Business Portfolio 6. Establish Policies and Procedures 7. Create Processes and Activities 8. Assign Resources and Assets 9. Build Products and Services 10. Fulfill Customer Needs 11. Drive Operational Excellence 12. Communicate Results Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 18 Inc.
  • 19. Strategic Alignment Objectives Model (SAOM)  Conceptualizes the relationship of IT services and IT systems to the business functions.  Business functionality is deployed through applications, and applications make up IT systems and services.  The SAOM depicts business functions directly supported by one or more IT services, which are made up of one or more IT systems Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 19 Inc.
  • 20. Strategic Alignment Objectives Model (SAOM) Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 20 Inc.
  • 21. Potential implementation pitfalls  Do not try to implement the SAOM before stable service delivery to the business is established. Experience shows that most business functions are not willing to discuss added value or strategic issues when the availability and flexibility of the current IT services are poor.  It is of little use to implement Application Management best practices, overlapping other disciplines like IT Service Management and application development, if these other disciplines have not reached a sufficient level of maturity.  It is not possible to implement inter-process dependencies and management controls if the individual processes have no measurements and controls.  Before implementing an application portfolio it is important to have mature Configuration Management, Release Management and software Configuration Management processes.  There are few benefits to be gained from managing the IT investments from a business point of view if the assets themselves are not managed at an IT level. Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 21 Inc.
  • 22. Potential implementation pitfalls  The implementation of Application Management should not be confused with the introduction of other disciplines such as Service Level Management and testing.  If an organization attempts to introduce a number of disciplines under the banner of Application Management then the costs and time implications will be extremely high and the implementation may be called to a halt.  It will not be possible to determine whether process execution has been enhanced through implementing Knowledge Management unless processes have reached a level of maturity at which efficiency and effectiveness are constantly measured. Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 22 Inc.
  • 23. Service Dependency Model  In order to understand and manage the reliance and criticality of an application within a system, it is important to understand how each application relates to others within the system, and also how this relationship affects other dependent systems. Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 23 Inc.
  • 24. Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 24 Inc.
  • 25. Service Examples of build phase manageability checks Management Functions Configuration Have the developers built the application to conform to the Management corporate standards that are used for Configuration Management? Does the application use only programs and tools that are considered acceptable and are included within the product catalogue? Does the application include support for version control and management? Have the developers built in the chosen CI structure to the application? Change Has the application been built and tested against the Management corporate Change Management process? Release Has the application been built and tested in ways that ensure Management it can be released into the environment in a simple and efficient way? Security Is the build process following security best practice for this Management activity? Incident Is a simple creation-of-Incidents process, for when something Management goes wrong, built into the application and tested? Has the compatibility with the organizational Incident management system been tested? Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 25 Inc.
  • 26. Service Examples of build phase manageability checks Management Functions Problem Has the program’s ability to provide information to facilitate Management root cause analysis and Problem Management been tested? Has the program been developed to readily communicate problems encountered. Capacity Has the application been built and tested to ensure that it Management meets the capacity requirements? Has the capacity information provided by the application been tested and verified? Are stress and volume characteristics built into the application? Availability How has the application been built to address the availability Management requirements of the application, and how has this been tested? What testing has been done to ensure that the application meets the backup and recovery capabilities of the organization? What happens when the application is under stress? Service Has the application been built to support the business Continuity recovery process following a disaster, and how has this been Management tested? Service Level Does the application meet the SLA requirements of the Management organization, and has this been tested? Financial Has the application been built to deliver financial information, Management and how is this being tested? Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 26 Inc.
  • 27. Summary  The adoption and implementation of IT Service Management best practices should be a priority of all companies, but the expense and resources required is more suited toward those organizations with large IT departments that service hundreds or thousands of requests per month  Fortune 2000 – the cost and revenue opportunities can mean millions of dollars in savings. In some cases, a 10-15% savings in IT costs can make a significant contribution to the bottom-line, affecting stock price and EPS. However, the most important beneficiaries are the IT customers. Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 27 Inc.
  • 28. Contact Information Tim Salaver SVP, Chief Products Officer Dana Software, Inc 381 Stockton Ave San Jose, CA 95126 (408) 279-3838 Main (408) 535-4337 Office tsalaver@danasoftwareinc.com www.danasoftwareinc.com Copyright © 2003 Tim Salaver, Dana Software,September 23, 200 28 Inc.