ITSMITIL Overview to Loyola System Engineering grad.docx

ITSM/ITIL Overview
to
Loyola System Engineering
graduate program
Mark Magruder
3/26/2015 Loyola Systems Engineering ITSM briefing 1
• Speaker Bio
• ITSM/ITIL Overview
– What is an IT Service
– The ITIL V3 Lifecycle & Process Framework
– ITIL V3, IT Governance Framework
• Example, Corporate Website Governance Framework
– Example, End User IT services
– Business Services vs IT supporting Services
• Why ITSM/ITIL – what problems does it solve
• ITSM BSM/Portfolio Management Case Studies
• A practical Approach to a Strategic ITSM
Enterprise Program
• Executive Overview & Business Case for ITSM

Agenda
• Hewlett Packard 1983-2004
– Systems Engineer – Test & Measurement
– Systems Engineer – HP consulting
– International Marking Manager, High-End Workstations
– Principal consultant – HP Consulting
• BSE/CS Cal State University Long Beach 1987
• Elliott Marks 2004-2010
– ITSM/ITIL consulting
• Fox Entertainment group 2010-2011
– Manage ITSM processes
• Beckman Coulter 2011-2012
– Global eBusiness Governance Manager
• The Walt Disney Company 2012-2014
– Manage ITSM processes/suppliers
• MBA program 2014 -
• Elliott Marks
– Consulting 2014 –
www. Linkedin.com/in/markmagruder
Speaker background

• Married
• 3 daughters, 1 son
• Hobbies
– Surfing
– Golf
– MLB Baseball
– Mountain Biking
– Snowboarding
– Tennis
– Camping/Hiking
– Travel
personal
• ITSM IT Service Management
• ITIL IT Information Library
• Google search on ITSM 4.53M hits
• Google search on ITIL 30.3M hits
• ITSM – ITIL used interchangeably
ITSM/ITIL Overview

• What is it?
– An IT Management Strategy
• Managing IT via the concept of “IT Services”
• IT as a “Service” provider
– IT Governance Framework
– Full IT lifecycle process driven model
– IT Strategy
– IT Design
– IT Transition
– IT Support
– Continual Service improvement
– IT Cost Management Model
ITSM/ITIL Overview
What is an IT Service?
An IT Service is anything of value delivered by IT to a
customer
or stakeholder that facilitates the outcomes those parties want
to achieve without the ownership of specific costs and risks.
• Luxury Hotels offer room service – they bring you tasty food,

you
don’t have to go down and get it.
• My car is due for Servicing - they fix it, I don’t know how…
• Its tax time. I need tax and accounting Services – yikes, I owe
taxes, can the tax man find me some deductions?
US economy
The ITIL V3 Life Cycle Diagram
IT Service Management An Integrated IT process
management framework
The 26 Processes of ITIL V3 2011
1. Service Strategy 3. Service Transition
Demand Management
Financial Management
Service Portfolio Management
Strategy Management
Business Relationship Management

Release Planning
Deployment Mgmt.
Knowledge Management
Change Evaluation
Configuration & Asset Management
Testing, Training, Documentation
Change Management
2. Service Design 4. Service Operation
Service Level Management
Supplier Management
Capacity Management
Availability Management
Continuity Management
Information Security Management
Service Catalog Management
Design Coordination
Event Management
Incident Management
Request Fulfillment
Problem Management
Access Management
- Service Desk
- Technical Management
- IT Operations Management
- Applications Management
5. Continual Service Improvement
Service Measurement
Service Reporting
7 Step Improvement Process

26 Processes
4 Functions
Operational Governance Framework
Organizing Policy & Standards by a Website’s Application
LifeCycle.
11
¾ Frames Website
Governance into a web
application’s natural lifecycle.
¾ Industry standard framework
that includes an extensive
library of existing policy and
process definition.
¾ Cost effective, not
reinventing processes.
¾ Being a Framework, It can
be tailored to fit a company’s
culture and operating
standards.
A LifeCycle
Approach
3/26/2015 Loyola Systems Engineering ITSM

briefing
Lifecycle Management
1. Website Strategy
2. Website Design
3. Website Transition
4. Website Operation
5. Continual Website
Improvement
1. Website Strategy
2. Website Design
Improvement
1. Website Strategy
2. Website Design
Improvement
1. Website Strategy
2. Website Design

Improvement
1. Website Strategy
2. Website Design
Improvement
1. Website Strategy
2. Website Design
Improvement
1. Website Strategy
2. Website Design
Improvement
12
Policy & Procedure Framework
Policy & Standards Organized by a Website’s Application
LifeCycle.

3/26/2015 Loyola Systems Engineering ITSM briefing
Transition Standards
¾ Managing Change
Release Planning
Packaging & Managing SW Releases
QA/Acceptance Testing
Configuration Management (HW,SW)
Documentation & Knowledge Management
Training/Communication
Support Plan & Procedures
Deployment Management
Change Processes & Procedures (Emergency,
Expedited, Normal, Standard)
Operational Standards
¾ Content Management
Content Ownership
Authoring Standards & Procedures
Content Standards (images, video, etc.)
Approval Workflow Procedures
¾ Operational Management
Managing User Requests/Demand
Entitlement and Security Management
Managing Incidents & Issues
Analytics, CSFs & Metrics, Service Levels
Support & Service Desk Procedures

¾ Application Management
Managing Enhancement Requests
Minor Enhancements Process (Changes)
Defect Tracking
Tool Administration
Project Pipeline/Prioritization
Funding
Design Standards
¾ PM & SDLC Standards
¾ Website Security Standards
¾ Taxonomy & Content Standards
¾ SOA Web Application & Web Service
Standards
¾ Other Architecture Standards
¾ Domain Naming Standards
¾ Tooling Standards
Italics=future
Standards, processes
& Procedures
Website Strategy
Guiding Principals
¾ Distributed Content Management
¾ Focus on Interacting with Customers
¾ Consolidate Brand, Messaging
¾ Microsite Consolidation

¾ Use Workflow to Better Manage Quality,
Compliance, Standards
¾ Extending UCM to other “internal”
websites
Continual Improvement
¾ Measuring for Success
¾ Quality of Service
¾ Operational Metrics
¾ Analytics Strategy
Practical Example –End user IT services
User: I need a new PC!
Service
Automation
Platform &
Workflow Request
From a Service
Catalog (Amazon.com)
Client Services
Delivery Team
• Provision PCs

• Provision SW
• Support Environment
Fulfilment
Automation platform:
Captures & Tracks request and user profile
Workflow auto-routes approval(s)
PC shipped with user specific profile configuration
- No phone calls.
- No confusion
- Email status updates
- User turns on PC, logs in and it works
Charges sent to department cost account
• Messaging Services
• Phone/Mobility Services
• Publishing and file sharing
• UID and Access services
• Tele-presence/Conferencing
• PCs/Computer Services
• Collaboration
• Reporting Services
• HR
• Expenses
• Education
Sustainment & End user IT Services
The Employee

End User IT
Services
End User Services also
underpin Business Service
users
Strategic ITSM/ITIL
Business Services
and
IT technical/supporting Services
A typical Business Service’s application & infrastructure
footprint
Core SW
F5/CSS Dist/Agg SW
Server SW
Msg/Collab AD/LDAP
Business
Application

DB Svrs Fibre
Sw
Web/App
Svrs
Bkup
server
SAN Storage
Internal Business
User/Customer PIP
Cloud
GW
DMZ
Citrix
Middleware
Tools
Monitored by the NOC and managed by WAN DCLAN teams
Datacenter Devices
Business Office
FC
Router/GW
External Customer/Guest
Backup
Media
Internet

site
carrier
Wireless
GW
Data Center
GW
Web Svrs
Supplier Managed
Business & IT
Services
Any single failure in this chain will impact the Business Service
to some degree!
http://h71028.www7.hp.com/services/cache/81725-0-0-0-
121.html
121.html
In IT there are only…
Business Services or IT “supporting” Services
3/26/2015
Loyola Systems Engineering ITSM briefing 17
Oracle
SQL

The Business
Business Service
Projects, Strategy,
Knowledge, etc.
Network
IT Services
Server Hosting IT
Services
Database,
Analytics IT
Services
Application, Web
Svr, App Svr,
Services
Storage & Data
Protection IT Services
OoCIO, 3rd Parties,
Cloud, SaaS, AWS,
Dealers,…
Monitoring tooling,
orchestration
Core
SW
F
5

/
C
S
S
Dist/
Agg
SW
Ser
ver
SW
Msg AD
Business
Application
Servers
DB Svrs Fibre
Sw
We
b/A
pp
Svr
s
Bku
p
ser
ver
SAN Storage
Business

User/Custo
mer
PIP
Clou
d
G
W
D
M
Z
Citrix
Middleware
Tools
FC
Ro
ute
r/G
W
Guest/Custo
mer
Backup
Media
Internet
site

carrier
Wir
eles
s
G
W
Data
Cente
r
G
W
We
b
Svr
s
Supplier
Managed
Business &
IT Services
$ $ $
$
$
$ $ $
$ Roll up *all* costs to
the “Business Service”

The Services
Integration Layer
from a “Business
Service” perspective.
121.html
121.html
• Every IT department in the enterprise, including
suppliers/partners, is an IT service provider !
• The Standards body, ITIL®, clearly defines 2 types of “IT
Services” (SS pp. 52, 54, 75, 427)
1. Business Service - customer facing - internal or external
2. IT Supporting Service – IT to IT facing
• “Business Service” working definition:
A Business Service automates or supports a business process,
function, or
activity. e.g. POS, Licensing, Reservations, Advertising, Public
Website,
Business Analytics
• Business Service Management:
A “service driven” IT management & operating model where a
company
manages a portfolio of Business Services investments that
automate
business processes.

Business Service Management - Definitions
ITIL ® UK OGC & Crown copyright – Industry Standards body
for process definition and governance
Simply using “Business Service” or “IT Service” easily
distinguishes the two.
The IT-to-IT ecosystem
The Business
Business
Service
Database
IT Services
Application
Services
Storage & DP
IT Services
Server Hosting
IT Services
IT Supporting
Services (IT 2 IT)

Middleware
Services
3rd Party, SaaS, AWS,
Cloud, etc.
Internal IT is a major requester of IT Services (and end user
services) in development and
support of Business Services.
Request
Fulfilment
121.html
121.html
Tooling to Support BSM Strategies
3/26/2015
Where does the “Business Service” entity live?
• Segment
• Business Unit/Group
• Line of Business

• Business Process
• Business Service
$
Infrastructure
costs
IT Support & Maintenance Costs (IT
supporting Services)
Other Fixed and
Variable Costs, or
Recurring Allocations
$ $
Roll up all costs, IT transactions, projects,
infrastructure, changes, events, incidents,
overhead, etc. to the “Business Service”!
Working definition: A
Business Service
“automates“ a business
process!
121.html
121.html
Business Services cut across multiple
technology groups/towers

App1
App
2
Ap
p3
Oracl
e
SQL
Svr
DB2
The Business
IT Technology Silos
Business facing IT Service A
Business facing IT Service B
Business facing IT Service C
Network Servers Storage Applications Databases
Simple Distinction between a “Business Service” and an “IT
Service”

“Customer
Facing”
Business
Services
Business
Operations
/ Activity
IT Facing Supporting Services
Segment
Business
Unit/Area
App Teams
Infrastructure
Teams
(Business Capability)
(IT Capability)
(Company Capability)

What is an IT Service?
An IT Service is anything of value delivered by IT to a
customer or stakeholder that facilitates the outcomes
those parties want to achieve without the ownership
of specific costs and risks.
• Hotel room service – they bring you tasty food, you don’t have
to go down and get it.
• My car is due for Servicing - they fix it, I don’t know how…
• Its tax time. I need tax and accounting Services – yikes, I owe
taxes, can the tax man
find me some deductions?
Where are my Business Services Documented?
Also: Service Catalog vs. Service Portfolio
3/26/2015
Service Catalog
(what your Customer
reads and orders services
from)
Subset of the service
portfolio published to
the business and

enterprise.
• Service Categories & Lines
• Service Descriptions (features, etc.)
• Service Prices
• Client Mgmt Contacts
• Ordering & Request Procedures
Service Portfolio
(What IT reads and uses
to manage IT with)
Identifies the complete
set of priorities and
investments in valued IT
Services
•Service Categories & Lines
•Service Descriptions
•Service Costs
•Service Prices
• Service Owner Contacts
• Ordering, Request and Fulfillment
Processes
•Investment Priorities
•Sourcing Strategies
•Delivery Strategies/Models
•Costs and Charges
•Lifecycle Status
•Value‐To‐Cost Ratios, ROI/VOI
•Value Propositions/Business Cases
•Technology /engineering strategy
•Risk Profiles
•Business Outcomes
•Customer Outcomes
•Design Constraints

•Funding Strategies
•Projects and improvement Efforts
Service
Catalog
Contracts
Portfolio
Service
Models
Project
Portfolio
Application
Portfolio
Customer
Portfolio
Service
Portfolio
Why IT Service Management?
1. Minimize outages/security breaches
a. #1 Cause of Business Service interruptions: poorly
planned/tested HW/SW
Changes!
b. Cost of outages can be significant

c. Reputation risk
2. Know what infrastructure supports your Business Services
a. The presumably smallest or simplest change can bring down a
company’s entire
network and grind business to a halt.
3. Better Understand:
a. Costs, Consumption, Customers (Business Relationship
Management)
b. Demand patterns
c. Expansion estimates
d. IT Operations Analytics/Utilization/Capacity/Asset
Management
4. Enforce IT controls (IT Risk Management, Governance,
Policy)
a. Change procedures
b. Security procedures
c. Manage approvals/communication
5. Optimize Outsourcing
a. Make informed decisions based on true costs and strategic
value
b. Value Comparisons
Cost Challenges, Pain, Missed Targets
1. Expense pressures (business & IT)
a. Where to apply limited budgets
2. Analysts estimate 20% of IT spend is ineffective.

3. Are my IT costs in line with industry norms?
4. Will I reduce costs if I outsource?
a. Did I reduce costs when I outsourced?
b. Why didn’t I reduce costs when I outsourced?
c. What should I or should I not outsource?
5. Is Business over consuming expensive IT resources?
a. Inconsistent or ineffective IT Resource Capacity Planning
b. Too much capacity was purchased.
6. True costs of Incidents / problems / application outages?
7. Project overruns
8. I’m considering buying, merging, acquiring company B, what
Business and IT services to
they deliver and more importantly, what is their business value
not just asset or IP value?
IT Financial Management Challenges &
Metrics - Cost Visibility
•What are your Business facing
and IT facing services?
•Which service is running over
budget? How do you prevent it?

•What are the key cost drivers?
•Is usage according to plan?
•How efficiently are you delivering
those services?
•Are your costs above Industry
Standards and alternatives?
•Where are you under-utilizing
resources?
•Account types,
Fixed/Variable, OPEX/ CAPEX?
Do you really use all these IT
services/infrastructure? (asset
utilization)
Do you really need this level of
service? (silver, gold,
platinum)
What is the price of IT
services?
Do you understand your bill
and charges for IT costs?
Are IT needs aligned with
business needs?
Supply Metrics Demand Metrics

Why cont. IT Cost Management
The Business IT $
Little IT Service Cost
Visibility!
Oracle
Oracl
e
SQL
Svr
DB2
App
1
App
2
App
3
Although CFOs and CIOs have some detail, they will tell you
IT costs often “look and feel” like a big black box
with a big number attached. What numbers are available are
typically tied to department codes not the
company’s operational or revenue generating Business Services.

App
1 App
2 A
pp
3
Oracl
e SQL
Svr DB2
Outsourcing does not necessarily improve IT
Service cost & value visibility!
App
1
App
2 A
p
p
3
Orac
le
SQL
Svr
DB2
The Business
Internal IT
$

$
Managed Service Provider
Business Case Study #1, Large Industrial
Products Firm
Business Driver(s):
• Get out of bad outsourcing contract
• Outsourcer holding company hostage for $1.6B for physical
and intellectual capital assets
• Needed to assess if capital is really worth $1.6B
Employ a simple BSM process:
• Identified business services and categories of assets provided
by outsourcer
• Inventoried all physical and intellectual assets provided by
outsourcer
• Mapped all assets to business services or supporting services
• Audited how assets were being used to in support of the
business services
• Assigned a “value“ to the Business & IT services provided
BSM Results:
• Discovered some services were not providing any business
value
• Found many assets were not actually used to deliver or support
any services
• Contrasted business service value with asking price of capital
assets

• Team Revalued capital and intellectual assets at $600M –
saving $1B
Acknowledgements:
Business Case Study #2 -Large Financial institution
Business Driver(s):
• Reduce Operating Costs
• Prepare For Acquisition
BSM Method(s):
• Identified business and IT services
• Mapped server and storage costs to those services
• Categorized services and their value to the business
• Eliminated services with low or no value
• Decommissioned infrastructure assets associated with those
services
BSM Results:
• BSM Project Cost: $2.5M
• Net First Year Savings: $58.7M
• Five Year ROI: $100.9M
Acknowledgements:
How can IT departments embrace IT Service
Management?

Services Thinking !
vs.
Technology Thinking
Managing IT as a Portfolio of IT Service investments
vs.
Managing a piles/racks of technology assets.
Characteristics of an IT Service (Email)
Loyola Systems Engineering ITSM briefing
Services Have:
1. Features – send/receive email, calendar, address lists, send
attachments
2. Requests – add new acct, change UID/Passwd, increase Mail
Box Size, retrieve
Hillary’s deleted messages, delete user acct, change requests,
request procedures
3. Delivery Channels – Laptop, Blackberry, iPhone,
Workstation, Cloud
4. Options – Silver, Gold (VIP), Secure, 3rd Party Contractors,
Disability
5. Mapped to Customer Profiles – Sr. Exec (SLA Platinum
package A), Mobile Exec
(SLA gold package B), Admin/Staff (SLA Silver package C)
etc.

6. CIs – IT assets configured together to provide features and
functionality.
7. Other – SLAs, Charges, Support Contact info, Service info &
Reporting, user
requirements before fulfillment, requirements after fulfillment
and requirements
while being used
3/26/2015 34
Common IT Service Misconceptions
Some typical misnomers for an IT
Service:
What it truly is:
The “IBM, HP, Oracle or Cisco”… These are infrastructure
suppliers not services
“We do desktop services”… These are really requests against
Client provisioning
services.
“We provide a NOC”… This is an operational support function-
not a service
“Desktops and Laptops” These are goods not Services.
“Moves, Adds, Changes” These are requests that involve

transactions against a
broader Service.
“Call Center Services” Customers don’t want Call Centers, they
want the
outcomes they provide or enable!
“We do Backups and System restores etc. IT is describing an
activity they do – not a service they
are providing (i.e. Data Protection Services).
“Cloud Computing” A service delivery channel, not a service in
itself
“SaaS”* Software is not a service, its an IT asset used to
deliver a service
“our SAP/AS400/Mainframe Service”… These are applications
and infrastructure assets.
Traditional IT Cost Cutting, Cost
Reduction Tactics
• Cancel Programs & Projects
• Cut Staff
• Consolidations
• Server Virtualization
• Storage Virtualization
What’s missing or overlooked?
Services Thinking!

The all too common disconnect
between IT and the Business
• Tech Support:
– What kind of computer do you have?
Business User:
– A grey one
• Business User:
– Can I still Pay Claims?
IT:
– I’ll go check and see if the server is up!
• Business User:
– How long to produce a rate quote?
IT:
– Database Response time still looks good!
Worlds largest error message …
2/21/06 Times Square
-NetworkWorld

A Practical Approach to Achieving a Business & IT
Service Management program (Financial model)
Identify &
define your
Business & IT
Services
Find All CIs &
Assign to
Business Service
Step 1
Step 2
Step 3 Step 4 Step 5
Build Cost
baselines. ID
Demand Factors
Perform Value
Assessments
Strategic Planning
Business & IT Service
Improvement
Roadmap
9IT Service Cost
Model/Ledger
9IT Demand Models

9 Service
Value
9Input for IT Strategy
9IT investment / de-
investment strategy
9 Bus/IT Service
improvement
Roadmap
9ITSM Roadmap,
HP DDMI, ITFM
Business Service CI Footprint
3/26/2015
39 BSM Strategy & Program Framework – Mark Magruder
9Business Service Portfolio
9IT Service Portfolio
9IT Service Catalog
HP DDMI, ITFM
Charter Analyze Define
http://welcome.hp.com/country/us/en/welcome.html
Step 1. Build your Portfolio of Services
Services have Requests and Features
Example: Email & Messaging

Features Requests
9Send and receive email both internally
and via the Internet
9 Provide calendar feature with
scheduling capability for appointments
and reminders
9Provide an easily accessible global
address list of email addresses and
“white page” information
9Send and receive file attachments (such
as Word documents, Excel spreadsheets,
etc) with messages being sent or
retrieved
9Archive, purge and delete Email and
calendar items per corporate legal and
business requirements
9 Establish a new email account
9Change user ID
9Change password
9Increase a mailbox size
9Retrieve messages deleted accidentally
9Add large numbers of user accounts
9Delete a user account
9Train user on how to use the email system
Design your services so that requests are processed efficiently

and features are smoothly provisioned.
Step 1. Build your Portfolio of Business and IT Services
1. Define lines of
services
2. List & define
customer & IT
facing services
3. List & define
commodity
services, bundle
4. Organize &
build Services
Portfolio
5. Leverage
trusted sources
of IT & GL data
6. Build ITSM
Service Model
i.e. Business Support Services. Start with identifying lines of
businesses/ Business Sectors in your company and translate to
IT lines of
services. Collections, Customer Care, Manufacturing, Sales &
Marketing
Identify all your customer facing (business support) service s.
Identify and

determine all your technical IT facing services (IT Service
assets). Info usually
found in project & support documents. Start with one IT
Service.
Further breakdown, if necessary, the technical IT services and
identify any
commodity services and bundle them together by Service
Category or Operation.
ie Operations, Engineering & Resource Management , Service
Design, Service
Transition, Vendors, ASPs, MSPs etc.
Determine all the technical & operational services that comprise
each business
facing service and document them in your Service Portfolio and
Service Catalog.
* Major milestone.
Determine recurring costs for each discrete or bundled IT
Service assets from
steps 3&4. Link to GL for monthly reporting.
Allocate costs of technical IT Service assets across any and all
business facing IT
Services.
Step 1. Building your Portfolio of Services
Identifying IT Business Facing Services (example)
Corporate Marketing
Enterprize
Infrastructure

Management
Sales
9Accounts Receivable
9Accounts Payable
9General ledger
9Accounting Support
9Billing & Collections
9Financial Reporting
9HR Services
9Company Intranet/Portal
9Opportunity Tracking (SFA)
9Customer Relationship
Management
9Commissions
9Product Information& Catalog
9Stores Support
9Corporate IT
9Telephony Services
9Email and Messaging
9Desktop Support
9Datawarehousing & Business
Intelligence
9BPO & Service Hosting
9Facilities & Consolidation
Service
9Market Analysis
9Analytics & BI
9Forecasting

Theatrical &
Media
Production
9Theatrical Production
9Post
9Programming
9Distribution
9Security Infrastructure Design
9Security Audit and Control Mgmt
9Intrusion, Vulnerability and Penn. Test Support
9Physical Security
9Access and Identity Mgmt (AD)
9Security Monitoring and Alerting
9Cyber Security
Support
9Extranet/Intranet
Support
9Secure Remote access
9Content Filtering
Step-1 Building your Portfolio of Services
Determining your IT Support Services (Example)
Service
Strategy and
Control Mgmt.
9IT Service Strategy
9Program Mgmt (PMO)

9Client Management
9Demand
Management
9Enterprise
Architecture Mgmt
9R&D Engineering
9Change Control
9Configuration & Asset
Management
9Lease & License
Management
9Service Audit &
Reporting
9Process Management
9Risk Mgmt & Audit
Support
9IT Financial
Management
Infrastructure
Security Mgmt.
Service
Resource
Management
9Server Management
9Database Mgmt
9Network Mgmt
9Application Mgmt
9Web App Mgmt
9Web Servers
9App Servers
9Proxy Servers

9Storage Mgmt
9Middleware Mgmt
9Printer Mgmt
9Device Mgmt
9IT Workforce
Mgmt
9Physical Facilities
Mgmt
9PC Mgmt
9R&D Engineering
Service
Operations
Management
9Service Desk
9Service Monitoring &
alerting
9Tools Support
9Supplier & Vendor
Management
9Incident Management
9Problem Management
9Request Fulfillment
9Backup & Restore
Management
9Job Scheduling Mgmt
9Startup, Reboot &
Shutdown Mgmt
9File Transfer & Control
Management
9Archive Management
9Data Entry Support
9Metrics & Reporting
Service
Transition

Management
9Release Planning &
Packaging Management
9Change Management
Service Deployment
9Service
Decommissioning
9Site Preparation
Support
9Service Validation &
QA Testing /Processes
9 Organizational
Change Support
9Knowledge Mgmt
Service Design
Management
9Service Level Management
9Project Management
9Capacity Management
9Availability Management
9Service Continuity Mgmt
9Process Design
9Operational Planning &
Consulting
9
Solution
Planning &
Development

9SDLC
9Application Management
Support
9R&D Engineering
* IT Services/Processes in dark red are ITIL V2 Processes
Items in red are itil processes
Step 1 Building your Portfolio of Services
One approach for Identifying Business facing Services
Inventory all
Applications
Pick one and
Describe it in
one sentence
Add as new
“Feature” to
existing Service

New
Service
?
Add to Service
Portfolio
YES
NO
More
Apps?
YES
Finalize Service
& develop SLAs
with Business
NO

Identify &
define your
Business & IT
Services
Find All CIs &
Assign to
Business Service
Step 1
Step 2
Build Cost
baselines. ID
Demand Factors

Perform Value
Assessments
Strategic Planning
Improvement
Roadmap
9IT Service Cost
Model/Ledger
9IT Demand Models
9 Service
Value
investment strategy
9 Bus/IT Service
improvement
Roadmap
9ITSM Roadmap,
HP DDMI, ITFM

3/26/2015
9IT Service Catalog
HP DDMI, ITFM
Step 2. Find all CIs (infrastructure assets) and relate to
Business Service
Core SW

F5/CSS Dist/Agg SW
Server SW
Msg/Collab AD/LDAP
Business
Application
DB Svrs Fibre
Sw
Web/App
Svrs
Bkup
server
SAN Storage
Internal Business
User/Customer PIP
Cloud

GW
DMZ
Citrix
Middleware
Tools
Monitored by the NOC and managed by WAN DCLAN teams
Datacenter Devices
Business Office
FC
Router/GW
External Customer/Guest
Backup
Media
Internet
site
carrier
Wireless

GW
Data Center
GW
Web Svrs
Supplier Managed
Business & IT
Services
121.html
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Identify &
define your

Business & IT
Services
Find All CIs &
Assign to
Business Service
Step 1
Step 2
Build Cost
baselines. ID
Demand Factors
Perform Value
Assessments
Strategic Planning

Improvement
Roadmap
9IT Service Cost
Model/Ledger
9IT Demand Models
9 Service
Value
investment strategy
9 Bus/IT Service
improvement
Roadmap
9ITSM Roadmap,
HP DDMI, ITFM
3/26/2015

9IT Service Catalog
HP DDMI, ITFM
Step 3. Build the Cost Baseline
Gather IT cost data from all available sources
• GL (automate to keep results current, accurate)
• IT account ledgers
• Contracts
• Salaries & Expense Reports
• Cost pool reports
• Asset Repositories
Find a cost and associate it to an IT Service Asset
in your new Service Portfolio defined in Step 1.

Step 3.1 IT Service Cost Visibility
Wintel Servers Unix Servers Data Center Ops Network Oracle
etc.
Service
Costs Total
Email X X X
Customer Care X X X
Analytics X X X X
Manufacturing X X X
Sales X X
Marketing X X X
Billing & Collections X X X X

Finance X X X X
Etc
Cost of IT Asset
IT Service
Assets
IT Services
Assign Resources & IT Assets
to Services
etc.
Service
Costs Total

Email 15% 14% 35% -
Customer Care 25% 20% 13% -
Analytics 50% 14% 5% 75% -
Manufacturing 10% 14% 4% -
Sales 25% 7% -
Marketing 25% 14% 13% -
Billing & Collections 25% 8% 5% 5% -
Finance 25% 14% 18% 20% -
Etc - - - - - -
100% 100% 100% 100% 100%
Allocate rough percentages based on usage/utilization
Percentages provide
rough indication of
consumption by each
service
Convert X’s to
Percentages %

etc.
Service
Costs Total
Email $210,000 $56,000 $700,000 $966,000
Customer Care $350,000 $120,000 $260,000 $730,000
Analytics $375,000 $28,000 $100,000 $375,000 $503,000
Manufacturing $140,000 $40,000 $80,000 $260,000
Sales $350,000 $140,000 $490,000
Marketing $350,000 $44,000.00 $260,000 $654,000
Billing & Collections $187,500 $80,000 $100,000 $25,000
$367,500
Finance $187,500 $32,000 $360,000 $100,000 $579,500

Etc - - - - - -
$1,400,000 $750,000 $400,000 $2,000,000 $500,000
$4,550,000
Convert percentages to $Dollars Costs by IT
Service
Step 3.4 Add monthly maintenance and support
costs (allocation constants for high utilization network devices,
facilities costs, etc)
Oracle
SQL
The Business
Business Service
Projects, Strategy,
Knowledge, etc.

Network
IT Services
Server Hosting IT
Services
Database,
Analytics IT
Services
Application, Web
Svr, App Svr,
Services
Storage & Data
Protection IT Services
OoCIO, 3rd Parties,
Cloud, SaaS, AWS,
Dealers,…
Monitoring tooling,
orchestration
Core

SW
F
5
/
C
S
S
Dist/
Agg
SW
Ser
ver
SW
Msg AD
Business
Application
Servers
DB Svrs Fibre
Sw

We
b/A
pp
Svr
s
Bku
p
ser
ver
SAN Storage
Business
User/Custo
mer
PIP
Clou
d
G
W

D
M
Z
Citrix
Middleware
Tools
FC
Ro
ute
r/G
W
Guest/Custo
mer
Backup
Media
Internet

site
carrier
Wir
eles
s
G
W
Data
Cente
r
G
W
We
b
Svr
s
Supplier
Managed

Business &
IT Services
$ $ $
$
$
$ $ $
$ Roll up *all* costs to
the “Business Service”
The Services
Integration Layer
from a “Business
Service” perspective.
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Step 3.5 Add any other costs, other overhead,
indirect costs …

• Segment
• Business Unit/Group
• Line of Business
• Business Process
• Business Service
$
Infrastructure
costs
IT Support & Maintenance Costs (IT
supporting Services)
Other Fixed and
Variable Costs, or
Recurring Allocations
$ $

Roll up all costs, IT transactions, projects,
infrastructure, changes, events, incidents,
overhead, etc. to the “Business Service”!
Working definition: A
Business Service
“automates“ a business
process!
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Step 3.6 Example: Building Service Demand
Base Line
3/26/2015
BSM Strategy & Program Framework –
Mark Magruder
54
1. Identify demand factors for each Service

2. Identify demand factor business volumes
3. Identify forecasts for future business volumes
4. Characterize demand factors into IT events, requests &
activities
5. Determine IT event, request and activity volumes
6. Associate IT events/requests/activities to your IT Service
assets
7. Model utilization demands against IT Service assets
New Major
Production
1000 orders,
new …
100,000 App
transactions
10 New Servers
4 TB Storage
3 Add’l FTEs
Etc.

Example: Characterizing a new major production…
3-Year Planning the ITSM way.
Step 3.7 Identify Unit Costs
Email Service
Service Total Cost: $2,347,000
Work Unit: Employee
Work Unit Volume: 5000
Cost per unit: $469.40
New Production
Service Total Cost: $3,447,000
Work Unit: Widget/Activity
Work Unit Volume: 7500
Cost per unit: $459.60
We are budgeting for a new attraction,
movie, TV show, … that will add 375

production staff increasing Utilization of
IT Services A, B, C by 25% & Capacity by
30% for the next 15 months.
3-Year Planning the BSM way.
Step 3.8 Using your Demand Baselines to make
Forecasts
Demand Driver Demand Volume
Number of employees 5000
Average Mailbox size 500mb
Current State
9 50 Servers
9 1 TB Storage
9 5000 SW licenses Demand Driver Demand Volume

Number of employees 7000
Average Mailbox size 500mb
Future State
Add 2000 more
employees
Model impact of demand on Business or IT Service
9 70 Servers
9 1.4 TB Storage
9 7000 SW licenses 3-Year Planning the ITSM way.
Identify &
define your
Business & IT
Services

Find All CIs &
Assign to
Business Service
Step 1
Step 2
Build Cost
baselines. ID
Demand Factors
Perform Value
Assessments
Strategic Planning
Improvement
Roadmap

9IT Service Cost
Model/Ledger
9IT Demand Models
9 Service
Value
investment strategy
9 Bus/IT Service
improvement
Roadmap
9ITSM Roadmap,
HP DDMI, ITFM
3/26/2015
9IT Service Catalog

HP DDMI, ITFM
Step 4 Measuring Value
“Customers do not buy Services! They buy the fulfillment of a
particular
need.”
This distinction explains the frequent disconnect between IT
organizations
and the business they serve. What the customer values is
frequently
different from what the IT organization believes it provides.
The Mind Gap – Mind the Gap:

4.1 Measuring Value
• “Essentially All models are wrong, but some
are useful”. George E. P. Box, Statistician
Business Models and Process flows fail to explain why
some businesses succeed where others fail.
The IT Value chain – a series of value-adding activities
connecting an
organizations supply side with its demand side; a linear Model,
based on the law
of averages.
The IT Value Network – a web of relationships that generate
tangible and intangible value through complex dynamic
exchanges through two
or more organizations focusing on value rather than activities
along the chain.

Step 4.2 Tactical Value Assessments/IT to Business
Analytics
3/26/2015
Mark Magruder
60
9Number of Customers
9Number of Products Sold
9Number of Sales
9Number of Employees
9Number of Service Locations
9Number of Messages
9Number of Reports
9Number of Requests
9Number of Customer Service Calls
9Etc.
Divide Business Service Cost by IT Demand Driver
to get unit cost:

Business Service CO$T
Now see IT Service
CO$T by Employee,
per thing produced,
per report, per
location, etc.
Acceptable? Can be
improved? Compare
with industry trends
& standards
Step 4.3 Map Business Services; strategic value vs business
criticality
3/26/2015

Mark Magruder
61
Map your Business Service Portfolio into a Gartner Magic
Quadrant
Non-Strategic Low Value Strategic High Value
Critical
to
Success
Not
Critical to
Success
• Customer Experience
• Automation
• Strategic sourcing
• Marketing
• Hospitality
• New products/services
• Customer Care
• Billing & Collections

• Disaster Recovery
• HR Support
• Messaging
• Corp Sustainment
• Virtualization
• Desktop Brand Strategy
• Call Management
• Factory of the Future
• Global Initiative 2015
• Collaboration
• consolidation
De-invest
Here
Optimize
Here
Invest
Here
Defer
Here

One method or
approach for
comparing and
assessing Value!
Identify &
define your
Business & IT
Services
Find All CIs &
Assign to
Business Service
Step 1
Step 2

Build Cost
baselines. ID
Demand Factors
Perform Value
Assessments
Strategic Planning
Improvement
Roadmap
9IT Service Cost
Model/Ledger
9IT Demand Models
9 Service
Value
investment strategy

9 Bus/IT Service
improvement
Roadmap
9ITSM Roadmap,
HP DDMI, ITFM
3/26/2015
9IT Service Catalog
HP DDMI, ITFM

Step 5. Strategic Planning & Develop
Service Improvement Roadmap
Where can we improve and save costs?
Categorize
•Running the business
•Growing the business
•Business Transformation
Strategy Sourcing
•Retain
•Replace
•Retire
•Enhance
• In-house
• Outsource
• Partner
1. 3-5 yr Business Strategy => IT
Strategies => IT Plans

2. Using new Cost Visibility tool &
project estimations, model the
future impact of Business
Strategies on IT Strategy/Plan
3. Identify Service Improvement
actions, Lens Analysis (next slide)
4. Rank Service Improvement
Programs
5. Share plans & business case with
Stakeholders
6. Agree on SIP & Roadmap, Assign
Resources
Step 5 Identifying improvement opportunities through
Lens Analysis.
Lens Things to Look for:

Cost Waste, Costs compared to industry trends, service
penalties, unused or infrastructure or tied to low value
Services.
Efficiency /
Utilization
Any redundant processes, labor intensive, rework,
Language or Communication challenges, over capacity
/under capacity
Frustration Availability, Responsiveness, Reliability, difficult
to use –
deterrent or not using tool/application
Time Takes too long, bottlenecks, poor staff utilization
Risk Service Maintainability, Security Risk, Brand Risk
Customer
Satisfaction
Poor satisfaction survey results, down-time &
availability problems

Regulatory Audit deficiencies, material weakness in controls
Future Service Sustainability, Capacity, Performance
Value Business/Market Demands for More Value.
Step 5. ITSM Improvement Roadmap
Improve
Customer Service
Agreement
models
Optimize
underpinning
contracts, OLAs,
SLAs
Decommission
Obsolete Services

Invest in new,
High Value Svcs
Optimize ITSM
processes, a
Service Org.,
Governance, CSI
Programs
Optimize IT
Infrastructure
Improve
Capacity,
Performance
CSI, Metrics,
KPIs , SIP
Opportunities
Scope & Plan Design Develop Deploy Operate

Operational Transformation
Service Support & Delivery
Service Desk
Organization & Workforce
Change Leadership
Training
•Assess IT Support & Delivery
Procedures
•Assess SLAs
•Assess Org Structure &
Governance, Leadership
•Training & Workforce
Assessment
•Review Regs, Contacts, Bus.
Req. Sec policy/privacy
•Update Support & Delivery
Procedures
•Update SLAs
•Revise Org Structure,
Governance, Leadership

•Develop Transition Plan
•Revise Training Plan
•Develop or update Security
& Privacy Plan
•Reconfigure IT Service
Desk and Monitoring
tools
•Implement Org. and
Governance changes
•Workforce Development
•Update Training Material
•Pilot and Deploy Update IT
Support & Delivery Procedures
•Repurpose Resources &
Workforce
•Conduct Training
•Operate & Monitor IT Support
& Delivery Procedures
•Report Progress
•Communicate Lessons
Learned
•Ongoing training

Technology Transformation
Applications
Storage
Servers
Network
Security BC/DR
Performance
•Gather Requirements
•Analyze Applications
•Analyze Date, Storage, Servers,
Network
•Analyze Security, BC/DR Plans
•Assess Performance Metrics &
Standards
•Reconcile Applications
•Map Data to applications
•Design Storage & Data
Strategy
•Design Server

Consolidation Strategy
•Network Design
•Update BC/DR, Perf.
•Build Consolidation & or
migration plans for
applications, servers
storage
•Develop security
controls
•Dry run BC/DR plan
•Pilot & Test Strategies
•Pilot Migrations
•Migrate to new data center
•Implement Security Controls
•Implement BC/DR Plans
•Monitor Application
performance
•Monitor Server and storage
Performance

•Monitor Security controls
•Measure Performance
Program Management
Business / IT Alignment
Financial Analysis
Sourcing & Vendor Mgmt
Communications
Risk Management
•Enterprise Program
Management,
•Concept Proposal, Project
Charter, Goals, Budget Strat
•Project Methodology
•Sourcing Strategies
•Risk Management
•Financial Management

• Review Program
Performance against
Business Strategy
•Business Case
Development
•Design Communication
Plans, Risk Strategy
• Develop Project
Methodologies
•Develop Project Tracking
improvements
• Develop Source
Selection metrics
• Develop risk
improvements
• Patch Project Methodology
Weaknesses
• Implement Project Tracking
improvements
• Execute on Communication
Plan
• Implement Risk plan
improvements

• Monitor weekly project
performance
• Monitor project costs,
schedule
• Monitor Vendor Performance
• Capture & Mitigate Risk
conditions
Facilities Transformation
Site Selection
Site Negotiations
Facility Design
Facility Construction
• ID Location Criteria
• Site Search Due Diligence
• Facility Conceptual planning
• LEC Service Comparisons
• Tax, HR, Relocation Planning,
other Incentives
• Facility Design

• Design Security, controls
• Network Design
• Power & Earthquake pl.
• soils, Zoning, Codes
• Complete Detailed
Design,
• Manage Permits
• Sign Construction
contractors
• Manage Construction
• Manage Govt. Entities
• Manage LEC/Net Svc provider
• Build core power & Network
grid.
• Obtain Occupancy Permits
• Facility Start-up
• Relocate
• Initiate daily and weekly
communications

Further Classification of Service Offerings
3/26/2015 IT Service Management – Mark Magruder 66
Venture
Growth
Discretionary
Enhancements
Non -
Discretionary
Core
Categories
Ri
sk
s
Va

lu
e/
T
im
in
g
D
is
cr
et
io
na
ry
Pr
oj

ec
ts
N
on
D
is
cr
et
io
na
ry
Co
st
s Run the
Business

Transform
The Business
Grow the
Business
Risk
Includes Project based spending that
creates new IT Services to broaden the
company’s reach into new untapped
markets.
Includes Project based spending that
includes new IT Services to deepen the
company’s market penetration, aligned
with existing commercial ops.
This Category affords new levels of
effectiveness & efficiency needed by the
business but not provided by current
assets or services.

Spending in this category mitigates the
impact of organic growth of
consumption of core operational assets
such as infrastructure components.
Spending in this category represents the
most basic “lights-on” operations, but
critical to the business
Business
Risk
Highest
Moderate
to High
Moderate

Business
Reward
Widely
Variable
Moderate
to High
Moderate
Excerpted from IT Portfolio Management Step-by-Step; Brian
Maizlish & Robert Handler
Business Service Management Program
BSM Strategy and Program Overview
• Defining Business & IT Services

• Business Service Mapping
• Managing IT with Service Portfolio Management
• BSM 360 degree Support Strategy
• Enterprise Monitoring Strategy
• Transforming IT Service Delivery to be Business Service
aware reducing
incidents!
• BSM Cost Model
• Augment IT Financial Management with a Business Service
Cost Model
• The BSM Client Engagement Strategy
• Report on BSM performance & IT value add services vs. last
P1 incident
and invoice/charges
• BSM Analytics, Big Data, and Reporting Strategy

Executive overview presentation
Core SW
F5/
CS
S
Dist/Agg
SW
Server
SW
Msg AD
Business
Application
Servers
DB Svrs Fibre
Sw

Web/A
pp Svrs Bkup
server
SAN Storage
Business
User/Customer PIP
Cloud
G
W
DM
Z
Citrix
Middleware
Tools
FC
Router/
GW

Guest/Customer
Backup
Media
Internet
site
carrier
Wireless
G
W
Data
Center
G
W
Web
Svrs

Supplier Managed
Business & IT
Services
• Show Case studies
• Show Scope
121.html
121.html
The BSM Business Case
• Directly ties IT costs to business activity, specific business
processes, and the business services that automate them.
• Know “why” money was spent, not just where.
• TCO by Business Service
• Business Units see actual costs!
• Revenue Recognition by Business Service, Business Process,
Business Unit

• Simpler and more precise cost analytics because spend and
consumption is now tied to business activity.
• Estimate your IT costs before the bill comes.
• Easier to compare business outcomes against expenditures.
• Know which Business Services cost the most and why.
• Easier to forecast financial impact of changed or new Business
Services due to market changes.
• Easier to place in a Gartner magic quadrant and make Business
Service Value assessments.
• Provide a framework easy for the business to understand for
identifying, managing, and communicating for IT Service
delivery.
• Provides insight into demand and consumption of expensive IT
Services and assets by Business Service.
• Provides clearer IT operational visibility and a reduction in
IT risk when making potentially high impact changes.
• Improves IT efficiency, IT planning and project execution
because Business Services and their IT assets are better
understood.
• IT metrics, KPIs and CSFs are tied to Business Services and
thus business processes and outcomes.
• Incidents, problems, changes to fix problems are all unplanned
costs and can be allocated to Business Services.
• Significantly improves reporting and communication between
IT and the business.

• Improves operational and strategic decision making because
IT activity is tied to Business Services.
• Speeds Value Creation and Simplifies Portfolio Management.
• Helps simplify IT planning and budgeting because actual IT
costs are tied IT activity and Business Services.
• Help manage IT demand from the businesses and helps with
forecasting because costs are known and more predictable.
• Support and maintenance are more efficient due to greater
visibility into business activity.
• Change Freezes are tied to specific Business Services and
their assets, not entire data centers putting unnecessary holds on
improvements!
Backup slides
• BSM Role Definitions and interaction strategy
• Business Service Owner
• IT Service Owner
• Business Service Lead, Analysts, Specialists
• Engineering and Architecture

• IT Finance
• Configuration Management
• Support Desk/Operations Support
• Service Delivery (suppliers)
• IT Finance/BSM Cost Model
• Service Portfolio and Catalog Management
• Service Demand Baselines/Forecasts
• Value Assessments (Magic Quadrants)
• Business Case
• Case Studies
• BSM Roadmap
BSM Roles (most already exist, but without a BSM perspective
or desired outcomes)
71
• BU Executive Leader
o Analyses portfolio of Business Service investments with CIO
and CFO and makes strategic investment decisions
o Analyzes costs vs. revenue, vs. value; value comparison

assessments
o Reviews project portfolio & score card with Business Service
Owners
o Works with Business Service Owners to execute on Business
Plan and strategic IT needs.
o Sr IT manager/Director accountable to the Business
Executive Leader for the health and full life-cycle of the
Business Service.
o Primary relationship manager with the Business Process
Owner or BU Executive Leader
o Works with IT Finance to determine annual and monthly TCO
of Business Service (Application, Project, support)
o Accountable for accuracy of information in Business Service
Portfolio
o Engages PMO and IT Service delivery towers for projects,
enhancements, updates, fixes, maintenance, etc. …
o Responsible for communicating Business Service’ strategy,
operational objectives, performance requirements, metrics,
reporting, etc
o Approves all Application and Infrastructure changes affecting
Business Service
o Interacts with IT Relationship Management to collaborate on
long term strategy, PMO, IT demand; issue /problem

management
• Business Service Owner Leads, Analysts, Specialists
o Works with Service Desk and is engaged in all incidents
impacting Business Service to resolve all major and minor
incidents.
o Manages relationships with IT Service delivery towers and
any external suppliers and ensures OLAs are in place with all
providers.
o Responsible for accuracy of information in Business Service
Portfolio and Service Catalog;
9 Description, Support Plan, OLAs, user SLAs, request
procedures, hours of operation, users, maintenance windows,
etc.
o Ensures all cost sources are automated as much as possible to
support accurate monthly cost reporting and metrics.
o Updates application portfolio, project portfolio, contracts
portfolio, supplier portfolio, as appropriate.
o Works with IT Service delivery towers and suppliers and
orders IT supporting Services.
o Establishes required metrics, KPIs, CSFs used by Service
Owner and BU executive leaders (creates or submits requests to
reporting team)
o Works with Service Transition to ensure releases are fully

supportable
• Business Service Configuration Management Specialist (IT
Operations Data Management)
o Ensures every CI (HW & SW assets) used by the Business
Service is related to the Top level Business Service (CI/asset
mapping).
o Works with Business Service Owner/Leads and IT Service
delivery towers to ensure any new infrastructure or software is
promptly and
properly related to the Business Service the CMDB Process
(i.e. ensures CMDB policy & process is followed)
o Provides configuration management reports on CI attributes,
status, etc.
o Works with IT Service Delivery to ensure all new or retired
infrastructure assets are properly maintained in the CMDB
BSM Roles (continued)
72

• Infrastructure Architecture & Engineering Teams
o Works with Business Service Owners/Leads to Documents
Business Service architecture in Business Service Portfolio
o Analyses technology assets used by Business Services and
designs and recommends upgrades, fixes, adjustments.
• Operations Support, Service Desk
o Fulfills level one service requests for Business Service users
o Resolves minor incidents or escalates to appropriate resolver
teams
o Manages Major Incident resolution process
o Works with Service Transition to ensure Desk is ready to
support new services/features
o Works with Problem and Change Management to reduce and
eliminate problems and recurring incidents caused by Change
o Prepares incident and availability reports
• Works with Service Owner Leads on CSI activities
o Capture knowledge and impact assessment details to aid in
service delivery or IM resolution.
o Maintains runbooks and seeks out automation opportunities
o Works with Service Transition and monitoring to ensure
events and alerts are properly configured

• IT Service Owner (Delivery & Supplier Management)
o Sr. Leader/manager accountable for defining, designing,
planning, releasing, and delivering IT Services.
o Accountable for ensuring IT Service s are fully documented
in the technical IT Service Portfolio
o Accountable for ensuring new, existing, and retired
infrastructure CI records are current.
o Interacts with Business Service Owners, Leads, Configuration
Management, and Service Desk and is responsible for mapping
infrastructure CI to Business Service CIs
o Accountable for proper IT Service content in the Technical
Service Catalog.
o Follows established information security, change, and data
management policies and processes.
o Supports incident resolution
o Executes Service Transition Plans ensuring documentation,
training, runbooks, release plans, are sufficient for Operations
Support.
• Service Management Executive

o Reports to CIO
o Manages and Executes IT Strategy
Business Service Owner role definition
73
o Sr IT Manager/Director is accountable and responsible for the
full life-cycle of the Business Service.
o Daily interacts with Business Process Owner and manages
portfolio of business service investments.
o Manages customer relationships/demand.
o Accountable for accuracy and currency of business service
portfolio content.
o Manages application, infrastructure, and technology demand .
o Works with IT Finance to monetize business service and
report on TCO of all Business Services in BU

Service Portfolio.
• Business Service Owner Leads, Analysts, Specialists,
Managers
o Accountable for ensuring Business Service is meeting
business demand and sufficient capacity exists
to support business and market elasticity. (APM, tooling,
monitoring, performance, availability)
o Works with IT Service Owners and IT Operations Support to
establish recurring support services.
o Orders IT supporting Services as needed form IT Service
Owners.
o Responsible for Service Portfolio content including sub-
sections: application portfolio, project
portfolio, contracts portfolio, supplier portfolio, customer
relationships.
o Maintains details in Service Catalog;
9 Description; SLA, request procedures, hours of operation,
users, maintenance windows, etc.
o Works with IT Service Owners and ensures all infrastructure
assets used by the Business Service is

identified and mapped to the Business Service CI ensuring
support process work effectively.
o Manages relationships with IT Service Owners and their
corresponding IT Service OLAs
o Responsible for ensuring all cost sources are identified,
automated, and appropriately roll up each
month to support regular service cost reporting and metrics.
o Manages resolution of Events, Incidents, Problems, Capacity,
Performance, Availability, etc.
o Responsible for development and production of Business
Service metrics, KPIs, CSFs used by Service
Owner and BU executive leaders
IT Service Owner (ST p. 330)
74
IT Service Owner is accountable for:
• Sr. Leader/manager accountable for defining, designing,
planning, releasing, and

delivering IT Services (full life-cycle management of technical
IT Service).
• Managing the Strategy, Design, Transition, Operation and
Continual improvement of the
IT Service offerings
• Defining and completing OLAs and the service meets agreed
customer requirements
• Accountable for ensuring new, existing, and retired
infrastructure CI records are current.
• Interacts with Business Service Owners, Leads, Configuration
Management, and Service
Desk and is responsible for mapping infrastructure CIs to
Business Service CIs
• Ensuring IT Service is compliant with existing company
processes and policies
• Accountable for maintaining content in technical IT Service
Portfolio and Service Catalog
• Accountable for measuring and reporting on IT Service
performance, quality, and
demand.
• Works with IT Finance on monetization of IT Service

offering(s)
• Continually reviewing availability and capacity ensuring
service meets demand or
customer requirements
• Follows established information security, change, and data
management policies and
processes.
• Works with Operations support and participates in incident
resolution efforts
• Executes Service Transition Plans ensuring documentation,
training, runbooks, release
plans, are sufficient for Operations Support.
BIO, Mark Magruder
Senior IT Professional
Mark is an accomplished Sr. IT professional with more than 30

years of experience in IT Consulting, IT Operations
Management, IT Strategy, and CXO advisory services. Mark has
worked for Fortune 500 companies like Hewlett-Packard, The
Walt Disney Company, News Corp, Toyota Financial Services,
and Beckman Coulter.
Mark’s ITSM/ITIL experience began with HP Consulting in
2000 using HP’s IT Service Management Reverence Model.
Shortly after leaving HP, Mark obtained his ITIL certification
and launched Elliott Marks, his independent ITSM/ITIL
consulting firm. Mark has had various ITIL engagements with
firms such as Toyota Financial Services, News Corp (Fox
Entertainment Group), Sony Pictures, The Walt Disney
Company, First American, and Beckman Coulter.
Mark is a leader in transforming and modernizing IT
management and IT operations using strategies and processes
from the industry standard ITSM/ITIL framework. Mark has
spoken at conferences and seminars in the US, Australia, and
Europe extoling the value and benefits of delivering value to
customers in the form of IT Services.
From Mark’s experience and association with industry groups
like itSMF USA, and their local interest group itSMF GLA LIG,
Mark has developed a unique and strategic consulting service
for helping companies establish an enterprise Business Service
Management (BSM) program. An enterprise BSM program
transforms enterprise IT organizations from managing

technology silos to managing a portfolio of Business and IT
Service investments. BSM is a transformative program that
helps IT organizations demonstrate “value” to their customers
by packaging and delivering complex technology solutions into
easy to understand and easy to order, “IT Services”.
Mark is currently an independent ITSM/ITIL Consultant serving
U.S. and international companies. Mark has a Bachelors of
Science Degree in Engineering and Computer Science from
California State University Long Beach. Mark is currently
obtaining is MBA from California Southern University in Irvine
California.
03/26/15 Class notes “ITSM/ITIL”
· Starting with his bio “look back to it”: Senior management
· The meaning of ITSM service management & ITIL information
library
· IT as a service provider means provide some technology and
its capabilities that cost a lot. IT government in order to manage
their IT. IT lifecycle and cost management.
· What is the different between IT and finance? It’s a way of

tracking spending!
· IT service management definition in page 7. What offer
services.. ?
· The service industry is very huge as shown in page 8 “Pie
chart”
· Page 9: the diagram shows the website strategy
· Page 10: here is the library along with strategy, design and
operation, transition and looking for improvement. These are
steps of ITIL. Which is similar to the Vee Systems Engineering
shape for validation and verification of requirements
· Page 11: manage the content within the lifecycle process,
market the product well… etc
· Page 12: LIFE CYCLE. policy framework, being organized “
Transition standard: the design u build is going to work” If you
did not measure it you don’t manage it!! In order to continual
improvement
· Page 13: Example in submit a request for a new PC, “The
Steps” client delivery team makes sure that the PC works and

software works well and support the users & environment.
· Page 14: the end-user needs
· Page 15: the different between business services and IT
tech/supporting services.
· Page 16: example: infrastructure that I depends on in order to
get the product I ordered
· Page 17: all these services has cost and u can manage it by
know the business services cost “ the infrastructure” and the
supporting services to manage the total cost
· Page 18: support the internal & external customers that the
business services provide.
· Page 19: IT ecosystem of request “ make it easy to do business
with IT”!
· Page 20: by having more end-users requesting, will grow the
business
· Page 21: logical configuration items related to business
services.

· Page 22: the customer matter is to get the order within the
business IT facing each other or not. They usually don’t work
together
· Page 23: destination business service -> IT service
· Page 24: IT services don’t own the cost or risks
· Page 25: business services documented into the service
portfolio in order to manage the business
· Page 26: Once we look into the value the IT service provides,
we ought to manage it by different steps.
· Page 27: cost challenges
· Page 28: financial management challenges
· Page 29: hoe they measure the value of what u spend?
· Page 30: Outsourcing costly! It doesn’t necessary improve the
IT service value and cost
· Page 31: Case study#1: by managing their IT service portfolio

they save 1 Billion dollars !!!
· Page 32: Case study#2: they also save vast money!!
· Page 33: Service thinking vs. technology thinking
· Page 34: what services have, for instance, email: I can do
many things. You can define your service to your customers
· Page 35: Misconception about services: he provides some
examples. There is different between goods & assets and
services! u should know that
· Page 36: cost cutting
· Page 37: simples IT requests
· Page 38: u want to manage your business services to avoid any
problems like that!
· Page 39: define, analyze, charter * 5 steps to manage the cost
· Page 40: requests & features
· Page 41: different lines in business and define, organize them

into your portfolio
· Page 42: Identifying IT business services used to manage
business or generate it
· Page 43: determining your IT support services
· Page 44: the approach for identifying business services
(CHART) till you finalize the service and easy access to the
service needed
· Page 45-47: steps and processes achieving management of
business serv.
· Page 48: build the cost
· Page 49-51: service cost visibility
· Page 52: tracking the cost
· Page 53: what kind of cost u need to add
· Page 54: with new customers, how to build service demand
base line

· Page 55: identify unit cost into new production (capacity
planning into technology not only storage)
· Page 56-57: make forecasts
· Page 58: how u wanna measure the value
· Page 59-60: model sometimes are useful, lessons learned from
previous failures and the relationship among them is important
· Page 61-62: now u can see the cost VALUE of that business
service. The critical & non-critical cost value! Finally u
optimizes what you really need. This shows what, when and
where you want to invest your money
· Page 63: strategic planning for 3-4 years
· Page 64: looking for improvement opportunities
· Page 65: improvement roadmap
· Page 66: service offering, for competitors advantage: ventures,
growth, …etc this what business leaders need to categorize what
u have and the value for each to help u how to spend your
money

· Page 67: service management program overview
· Page 69-72: BSM business case & Roles: “ GO back to the
slides”
· Page 73: business service role and the people who refer to
· Page 74: IT service owners.
· CONCLUSION: how to manage IT and its relationship with
business services!
· It’s very important to write how this topic will influence or
impact your organization and how it will help you in your
business.
From my experience, I was able to start my own simple
company, and design and produce my own line of clothing
accessories. I have exhibited my work throughout the Middle
East, including exhibitions in Riyadh, Jeddah, and Kuwait. By
growing Guzal Collections, I seek to elevate myself to the
position of CEO of my own major Saudi fashion company.
· (What can I add more to expand my business and control the

cost & risks by measure them? Also by having a high security of
my own service portfolio, help making business decision) By
managing my IT portfolio smoothly
· Specially when dealing with outsourcing suppliers/
assumptions, what are the capabilities needs and parameters?
What are the challenges I am going to face? Where should I
spend my money and what’s the value in it?
· For small business, wants to focus in business than technology
then outsource is work for them. If someone else run manages,
design the IT for you. Where should I go in my company
outsourcing or insourcing?
MEMO
<indicate, First Submission, Second Submission, or Final
Submission>
FROM: <insert student name>
TO: Professor
DATE: <insert date>
SUBJECT: Memo on <insert speaker name>, <insert title of
speaker’s presentation in quotes>

On February XX, 2015 in the SELP 694 Seminar Class, Mr.
XYZ presented a lecture entitled “Systems Engineering LMU
SE Seminar Class.” Mr. XYZ is currently the Vice President of
ABC Corp. Mr. XYZ graduated from XYZ University and
joined the US Navy to work in various intelligence positions
and travelled throughout the world.
Mr. XYZ described the typical career path for a systems
engineer including the expectations and responsibilities of the
various positions. Furthermore, Mr. XYZ shared the different
aspects of business sizes and how to develop new business in
both the commercial and government arenas.
Mr. XYZ started off the seminar with a concept called
“MATTESS,” which stands for “Money, Advancement, Travel,
Training, Experience, Satisfaction, and Security.” The concept
states that an employee is motivated to do their best work by at
least one of the aforementioned items. System engineers usually
promote themselves out of a job, which includes the transition
to engineering management, then managing engineering, then
program management, and finally business development.
Transitioning to engineering management requires good
communication and motivational skills. In addition,

transitioning to managing engineering requires the
understanding of corporate goals as well as management of
budgets, schedules, requirements, and business strategy
development. Furthermore, transitioning to program
management requires successful budget, schedule, requirements,
and new business development as well as providing key
interactions with the customer. Lastly, transitioning to business
development requires a good understanding of how business is
generated, engaging customers and competitors, helping the
customer sell the solution, find funding, and finally keeping the
program sold. Mr. XYZ described the different business sizes
including the large-sized businesses such as Lockheed Martin
and Northrop Grumman, medium-sized businesses such as
Honeywell and Rockwell Collins, and finally small-sized
businesses, which are the largest growing market segments
relied upon by the government and large-sized businesses.
Mr. XYZ’s presentation made me realize that satisfaction is
what motivates me to do my best work as a subcontracts
manager at my company. Furthermore, my position allows me to
transition into my company’s business development area and I
found Mr. XYZ’s presentation useful in helping me achieve my
promotion goal into this new area.
I found the speaker very engaging and I appreciated his

openness with his personal life which allowed the audience to
connect more with him on a personal level. I also appreciated
the information he shared about the current and future financial
situation of the nation that allowed us to remain optimistic
about our future business and security.

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