ISO/IEC IT Service Management (ITSM) Standard & IT Infrastructure Library (ITIL) Overview and Growth Trends
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1 ISO/IEC IT Service (ITSM) Standard & IT Infrastructure Library (ITIL) Overview and Growth Trends September 2006 Hamid Nouri President, Nouri Associates Client Briefing
2 Definitions IT Service (ITSM) Managing IT as a series of business services that have been defined in advance as a result of collaboration and negotiations between the IT group and its business constituencies IT Infrastructure Library (ITIL) A library of IT operations best practices that provides a consistent definition of terms, a process model, activities and success measures that can help an organization implement IT Service Page 2
3 What is IT Infrastructure Library (ITIL)? Information Technology Infrastructure Library Developed by UK CCTA (now OGC) in 1980 s Result of years of analysis and research by many contributors Currently consists of 7 books providing guidance on the planning, delivery and management of quality IT services The de facto global standard of IT Service best practices ITIL is a process-based IT Operations framework that delivers a set of IT service management best practices that can help align IT with business requirements, improve service quality, and lower the long-term costs of IT service provision. ITIL is the world's most widely accepted approach to IT service management Page 3
4 How Does ITIL Work? Quality Framework for IT Focused on process management Process control Figure A The Deming Cycle Figure B The Generic Process Model Page 4
5 ITIL Profile Key ITIL Characteristics include: Based on best practices Common language Customer-focused Expectation management Independent of organizational structure Vendor and technology independent Fact-based decision making Optimum service against justifiable costs Process-oriented Page 5
6 The ITIL Framework Service Support Enables effective IT Services Building blocks of All IT Services Release Change Configuration SERVICE SUPPORT Problem Incident Service Level Financial Mngmnt For IT Services SERVICE DELIVERY Capacity IT Service Continuity Mgmt. Availability Service Desk Service Delivery of the IT services Security Page 6
7 An International Standard for IT Service Journey from British Standards Institute (BSi) to International Standards Organization Code of Practice [PD0005] Self-assessment Workbook [PD0015] - Specification [BS15000] Early adopters Feedback Rewrite as Part 1 & 2 (release 11/02) - Rewrite PD0005/PD Formal certification scheme ISO Standard (ISO/IEC 20000) Page 7
8 ITSM Focuses on Customer s View of Services Customer View ---Technology View Our Online ecommerce App was out for over 3 hours last week!! Network Desktop Application Midrange Server Database Mainframe Online ecommerce Service Procurement Service Claims Processing Service 91.22% Available = 99% x 99% x 99% x 97% x 98% x 99% x99.9% Page 8
9 ISO/IEC Standard 10 Core ITIL Processes Plus 4 More Security, Service Reporting, Relationship, Supplier Requirement for a System Integration Among Processes Page 9
10 ITSM Reported Benefits Enhanced/Increased Service Levels Align IT goals with those of Business Units supported Make Excellence in Service a part of the culture Improved quality and reliability of IT services offered Optimize resource utilization Enforces collaboration across silos Move from traditional supply-demand model to customer oriented processes and service value creation Page 10
11 ITSM Focuses on Cost & Quality Improvements People Process Technology Break down interdepartmental barriers Focus staff on priorities and role definition Increase efficiency in resource utilization through process and process-enabling technology Possible reduction of the number of operational resources Reduce number of emergencies and sleepless nights COSTS Improve inventory process for assets Provide financial IT services information Reduce recurring incidents Reduce time to implement changes Shorten incident resolution time Synchronization between and consolidation of people, process, and technology QUALITY Define business needs in terms of quality, quantity, and financially Define services and service levels Increase speed of service Introduce project approach Move from reactive service provision to proactive Provide management information on ROI, improvements, and/or balanced scorecard Automating problem diagnosis and resolution Better utilization of assets Consolidation of technology Introducing processenabling technology Standardization of working environments Monitoring and reporting service quality metrics Prioritizing effort and cost to service levels Standardization of working environments Cost and quality improvements in IT services drive the cost and quality improvements in people, processes, and technology. Page 11
12 ITIL Adoption Trends EXIN Number of worldwide individual ITIL certifications Approximately 80% of all ITIL certifications (the balance is ISEB) ITIL Certifications are growing at the rate of 20-25% per year worldwide Exams H Service Manager Practitioner Foundation Total ITIL Foundation ITIL Practitioner ITIL Manager 150,375 6,754 12,496 92,059 3,015 4,848 61,123 2,511 2, Total 169,625 99,922 66,011 Exams 2005 Worldwide 2005 N. America % 1H06 Worldwide 1H06 N. America % ITIL Foundation 92,059 19,184 21% 61,123 17,621 29% ITIL Practitioner 3,015 1,074 36% 2,511 1,073 43% ITIL Manager 4, % 2, % Total 99,922 20,968 21% 66,011 19,164 29% Page 12
13 ITIL Adoption Trends (cont d) EXIN Number of ITIL certifications in 2005 Approximately 80% of all ITIL certifications (the balance is ISEB) Page 13
14 What Gartner Says About ITIL and ISO Growth Gartner s survey of attendees at their US Annual Data Center Conference continues to show strong growth in adoption and deployment of ITIL. Of the 134 poll participants in the 12/04 survey, 31% were planning to deploy ITIL. This was 4 to 8 times higher than any other IT related standard or framework. Gartner also predicts fast growth for the recently announced ISO standard for IT Service in outsourcing contracts: By 2008, "ITIL compliance" will be a buying criteria in 75 percent of relevant IT sourcing decisions (0.8 probability). By year-end 2008, at least 60 percent of relevant public-sector and at least 30 percent of relevant private-sector sourcing deals in mature information and communication technology (ICT) economies will demand ISO/IEC certification in their RFPs (0.6 probability). Page 14
15 What Vendors Support ITIL All Major IT industry vendors Microsoft (MOF Microsoft Operations Framework) IBM (IBM IT Service Framework) HP (HP ITSM Framework) Dell Used internally Cisco In the process of deploying globally Systems and Network Vendors BMC Mercury IBM/Tivoli CA Host of specialist vendors Over 120 vendors exhibited at itsmf USA (global user group) conference in 2006 Page 15
16 What User Organizations Use ITIL ITIL is predominant in Europe ITIL is catching on in US in last 5 years itsmf has over 3500 members in US now There are over 37 Local Interest Groups (up from 5 in 2001) Significant number of success stories emerging Early Success Stories Proctor & Gamble Caterpillar Etc. Many Financial Services Companies in process of evaluation, adoption or institutionalization All State Insurance Bank of America Washington Mutual Many others Page 16
17 NAI Contact: Stephanie Southall Telephone: 1 (415) Facsimile: 1 (415) stephanie.southall@nouriassociates.com NAI Contact: Hamid Nouri Telephone: 1 (415) Facsimile: 1 (415) hamid.nouri@nouriassociates.com Page 17
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