The IT Infrastructure Library - ITIL The New Global Standard for IT Service Management
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1 The IT Infrastructure Library - ITIL The New Global Standard for IT Service Management ASPE Technology Presents: Don Long Director of Operations Management, Codesic Consulting
2 Agenda Introduction to IT Service Management Overview of the IT Infrastructure Library (ITIL ) ITIL Adopters & Deployment Approaches Critical Success Factors Case Study Summary Results Wrap-up
3 Brief Background Summary Seventeen years planning and production management roles - U S WEST: Five years Executive Consulting - Service Management Best Practices: Director Technology Planning and Computer Operations, Airborne Express: Senior Director, Global Service Management, DHL: Director Operations Management & ITIL Practice Leader, Codesic Consulting 2005 to current.
4 ITIL History Information Technology Infrastructure Library 1980 s - British Government industry research on best practices for managing production systems Findings documented as the first comprehensive service management best practice framework Strong early interest in Europe 1990s Emerged as the de facto global standard for systems management Growing interest and adoption in the US December 2005 Published as ISO 20000
5 Infrastructure Standards Lag Developer s active in methodology and training standards since the mid-1980 s. (i.e. PMI/SEI s-cmm) Production support standards slower to materialize: Home-grown initiatives 80s & 90s Proprietary frameworks (IBM, HP) Best Practice Share-groups i.e. Gartner ITIL s emergence as the global standard now provides: A common reference point for infrastructure professionals for the first time Public non-proprietary reference materials Globally standard, accredited training (EXIN, ISEB)
6 Some Key Definitions 1. IT Service Management (ITSM): A business driven vs. technology-centric view of IT which defines IT s role as meeting the requirements of the business 2. The Business: Includes public sector and not-for-profit as well as corporate and profit-centered organizations 3. Services: The deliverables of the IT organization as perceived by the customer (automated job functionality) 4. Customer: A business unit customer of the IT department who defines and agrees to the services and service quality to be provided by an IT Service Provider
7 The ITIL Framework T h e B u s i n e s s Service Support Planning to Implement Service Management The Business Perspective Service Management Service Delivery Applications Management Service Support ICT Infrastructure Management Security Management T h e T e c h n o l o g y Source: OCG
8 Why standards now? Critical dependence on technology to perform basic business functions Increased costs for services provided High availability with 24 x 7 support requirements Increasing customer technical sophistication Immediate and visible impact of service failures
9 What the business wants Clear understanding of their priorities and requirements Service and support commitments consistently met Communication on both long and short-term service and support issues To be treated as a business partner Value for dollars invested
10 Where does ITIL fit in? ITIL promotes a service management approach which emphasizes: Globally standard definitions and concepts Alignment of IT requirements with business priorities Direct dialog with IT stakeholders An industry standard/best practice approach Networking with other adopters Reworking organizations, systems and processes to deliver higher service quality
11 Framework Overview ITIL is a set of best practice text books covering the following seven areas: Planning to Implement Service Management Service Support Service Delivery (Areas of Widest Interest/Adoption) Security Management The Business Perspective Infrastructure Management Applications Management
12 Current Adoption Focus Service Support Service Desk (process/function) Incident Management Problem Management Configuration Management Change Management Release Management Service Delivery Service Level Management Capacity Management Availability Management Financial Mgmt. for IT Services IT Service Continuity Management
13 Process Adoption Focus Areas Service Support Service Desk Incident Management Problem Management Configuration Management Change Management Release Management =More Rapid Results and ROI
14 Process Definitions Service Desk: (Process and Function) The initial, central point of contact for the business on all IT related matters More than just a Help Desk... serves as the principal interface between IT and their customers Incident Management: Any event which is not part of the standard operation of a service and which causes an interruption or reduction in the quality of the service Goal: To restore normal service as quickly as possible and gather data on incidents and their causes
15 Service Support - cont d Problem Management: Investigates the underlying causes of incidents The proactive role in preventing incidents from occurring or recurring through root cause and trending analysis Configuration Management: Inventories all IT infrastructure and associated assets as Configuration Items (CIs) in a Configuration Management Database (CMDB) Establishes CI relationships and provides a logical model of the IT infrastructure to support the Service Management processes (Change, Problem, etc.)
16 Process Definitions - cont d Change Management: Manages changes to the Configuration Items (CIs) Responsible for implementing changes successfully with minimum risk and impact to the business Release Management: Manages the physical deployment of new or largescale changes to IT configuration items (i.e. major hardware and/or software rollouts, bundled sets of changes such as an application release) The difference between Change and Release is primarily one of scale
17 Delivery Focus Areas Service Delivery Service Level Management Capacity Management Availability Management Financial Mgmt. for IT Services IT Service Continuity Management =More Rapid Results and ROI
18 Service Delivery Processes Service Level Management: Defines and documents the priority and quality of service levels required by the organization for each IT service Improves business alignment and service quality through cycles of agreeing, monitoring, reporting and reviewing service metrics/achievements Capacity Management: Ensures that resource capacities will meet current and future business requirements without waste or performance degradation
19 Service Delivery - cont d Availability Management: Focuses on engineering to deliver acceptable levels of availability at a cost which aligns to business need and the objectives for the service Financial Management for IT Services: Financial oversight of IT assets and the funding processes used in providing IT services Coordinates budgets and compares estimates with actuals allowing deviations to be identified and remedied Provides the basis for charge-back through the budgeting and accounting functions
20 Process Overview Completion IT Service Continuity Management: Supports the organization s overall Business Continuity Management process Ensures that IT resources can be recovered within acceptable business timeframes Heightened area of interest since 9/11, Sarbanes/Oxley
21 The Growing US ITIL Community ITIL is now managed by a public interest group called the IT Service Management Forum (itsmf) Global: US: itsmf USA s 2006 membership lists: 350+ organizations (corporate sponsored staff memberships) Individual Members (covers both individual and many corporate un-sponsored memberships) Globally 12,000 Corporate and Public Sector, 25,000 Individual members
22 Better Known US Adopters Anheuser-Busch Co. Inc. AT&T Caterpillar inc. Charles Schwab Chevron Circuit City Stores DHL Dow Chemical Earthlink Eli Lilly Enterprise Rent-A-Car General Dynamics General Electric General Motors Halliburton Harley-Davidson Motor Company Hewlett-Packard IBM Intel Northwest Airlines RadioShack Corporation Sprint State Farm Insurance Target Toyota Motor Sales
23 Deployment Approaches Pain-Point Approach Small Program Approach Enterprise Program Approach
24 Deployment Approaches - 1 Pain-Point Approach: Common start-up method with lower risk and less investment required Targets an area of compelling business need, i.e. Reduce downtime, centralize user support Requires basic project management skill/experience Allows scope management Builds on momentum based on incremental project successes
25 Common Pain-point Areas Incident Management Service Outages - Need to reduce downtime and improve mean-time-to-repair Service Desk No central point of contact or help desk with limited help capability Need to improve consistency, free up key resources Service Level Agreements (SLAs) Limited direct dialogue with the business Need to document priorities, service targets and build customer relationships Need for service metrics and service level reporting
26 Rounding out the top six Change Management: Monday Morning Syndrome Failures due to high risk, poorly tested, unscheduled or poorly communicated changes Problem Management: Limited understanding of underlying causes of failures Recurring failure types Configuration Management: Weak or fragmented inventories (SW Licences, asset management data) Weak configuration/component relationship data
27 Deployment Approaches - 2 Small Program Approach: Groups two or three closely related process areas for funding and approval (i.e.) Incident and Problem Management Configuration, Change and Release Service Desk and Service Level Management Raises project visibility Requires broader, cross-group involvement More complex/longer to implement
28 Deployment Approaches - 3 Enterprise Program Approach: Groups and prioritizes all best practices for development based on expected value/return on investment Rolls-out process areas in parallel (as per small program approach) over a period of two or three years Most complex and high risk approach requiring: A clearly identified, senior management sponsor Strong cross-organizational support and funding A successful history of large-scale programs such as a corporate SDLC, an enterprise application or a Program Office.
29 Case Study Analysis Program Objectives from across Multiple Organizations Reduce costs, improve staff response times Improve systems availability Improve productivity and customer satisfaction Achieve new high availability on-line targets Reduce staff turnover Provide an integration framework for mergers and acquisitions Establish globally standard, follow-the-sun data center operations US, Europe and Asia
30 Reported ITIL Results Improved availability of key business applications from 96% to 99.9% Reduced incident response times by 15% in 12 months Reduced total reported incidents by 10% while introducing new applications Reduced service desk staffing from 45 to 35 FTEs Improved service desk first call resolution rates to 75% Reduced Severity 1 and 2 calls by 50% Improved productivity as measured by # of customers served per IT staff member
31 Results - 2 Reduced costs by $4.5M/year (7% of IT operating budget by eliminating under-utilized assets such as software licenses) Improved knowledge base of known errors from 5% to 30% Reduced incident resolution times (50% closed in 1 Hour and 80% closed in 24 hours) Improved customer satisfaction scores from 6.8 to 7.6 (scale of 10) Improved overall employee satisfaction from 73% to 86% Integrated staff and operations from three major acquisitions Established global incident management, change management and follow-the-sun standardized operations Won the 2003 HP Service Desk Award
32 DHL Program Results Integrated staff and operations from three major acquisitions Established global incident management, change management and follow-the-sun standardized operations Won the 2003 HP Service Desk Award See Gartner: Global Transportation Enterprise Adopts ITIL published December, 2005 (id number G )
33 Recap of ITIL Strengths A standard way of defining and managing IT Services across organizations: Service Management concepts and terminology Processes and relationship mapping High level process goals, objectives & flows Measurements/Key Performance Indicators Scalability across organization sizes and types Some role definitions High-level advice on implementation Industry Standard Training (3 Levels) Benchmark and maturity assessment capability
34 What does ITIL not provide? Out-of-the box process and implementation solutions An Organization model Detailed process documentation or process flows suitable for direct implementation Detailed position descriptions Department or workgroup level procedures, templates and artifacts A silver bullet process design and service improvement is still hard work!
35 Wrap-up What s next? Forrester Research: adoption among $1B+ revenue companies has increased substantially in the past year, with the number projected to reach 80% within Global 2000 companies by Gartner Predicts: By 2008, 35 percent, and by 2012, 50 percent of large IT organizations will have transformed to IT service management, up from less than 20 percent today.
36 Questions?
37 Codesic Consulting Founded in1994 in Kirkland, Washington 100+ salaried, senior consults with an average of over 13 years experience Puget Sound s best resources supporting the entire IT lifecycle Project leadership and staff supplementation Eighteen certified ITIL consultants Project Success Guarantee For more information about Codesic, or if you are interested in learning more about our products and services, see us on the WEB at or contact Don Long at the number below. Codesic Headquarters NE Points Drive Suite 410 Kirkland, WA codesic ( ) Don Long Director of Operations Management Mobile: don.long@codesic.com
38 ASPE Technology ASPE Technology is an IT training firm dedicated to providing the tools, techniques, skills, and knowledge that enable professionals to successfully harness IT and transform it from a complex challenge into a strategic resource. From training on software development and testing to unique project management issues to business analysis and requirements development, ASPE Technology has the training solutions you need, on today's critical topics. We have a full US public course schedule as well as a highly regarded customized on-site training practice. We offer solutions for: Software Testing Training Professional Skills Training QA Training Business Analyst Training Requirements Training Use Case Training Project Management Training Networking Training IP Telephony Training IT Security Training Call us toll-free at or visit Don t forget to check out our ITIL Foundations Exam Preparation Boot Camp after the presentation.
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