Chapter 5 FUNCTIONS AND PROCESSES FOR IT SERVICE MANAGEMENT

Core Processes of a Service Provider

• Effectiveness
  • You agree with customer what you will deliver (contract management)
  • You deliver what you agreed (operations)
  • You repair anything that goes wrong (incident)
  • You change your service if requested (change)
• Efficiency
  • You know what you use to deliver your service with (configuration management)
  • You make sure you deliver tomorrow what what you have agreed today at the optimized conditions (planning and control)

Functions of IT Service

• Capacity management
• Availability management
• Security management
• Continuity management
• Financial management
• Application management

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Capacity Management

• Realize the capacity of the agreed services at the agreed rate/demand using operations management
• Repairing capacity issues using incident
• Agreeing on capacity aspects using contract
• Proactive actions of capacity issues using planning and control
• Capacity deployment against enterprise infrastructure using configuration

Availability Management

• Realization of the availability of the agreed service at the agree rate/demand using operations management
• Repairing availability issues using incident
• Changing availability using change
• Agreeing on availability aspects using contract
• Proactive actions of availability issues using planning and control
• Availability measures deployed matched with enterprises infrastructure using configuration

Security Management

• Realization of the security of the agreed service at the agree rate/demand using operations management
• Repairing security issues using incident
• Changing security using change
• Agreeing on security aspects using contract
• Proactive actions of security issues using planning and control
• Security measures deployed matched with enterprises infrastructure using configuration

Continuity Management

• Realization of the continuity of the agreed service at the agree rate/demand using operations management
• Repairing continuity issues using incident
• Changing continuity using change
• Agreeing on continuity aspects using contract
• Proactive actions of continuity issues using planning and control
• Continuity measures deployed matched with enterprises infrastructure using configuration

Financial Management

• Realization of the financial arrangements of the agreed service at the agree rate/demand using operations management
• Repairing financial issues using incident
• Changing financial arrangements using change
• Agreeing on financial aspects using contract
• Proactive actions of financial issues using planning and control
• Financial arrangements deployed matched with enterprises infrastructure using configuration

Application Management

• Realization of the application components of the agreed service at the agree rate/demand using operations management
• Repairing application issues using incident
• Changing applications using change
• Agreeing on application functions using contract
• Proactive actions of application issues using planning and control
• Application deployed matched with enterprises infrastructure using configuration

Strategy – Tactics - Operation

• Strategy
  • Business relationship, demand, service portfolio, financial
• Tactics
  • Availability, knowledge, capacity, service catalogue, problem, security, service level, continuity, service reporting
• Operations
  • Change , transition planning and support, service validation and testing, incident, request fulfillment, event, monitoring and control, service desk

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FUNCTIONS AND PROCESSES

• -Introduction
• Activities, methods and techniques
  • The process or function in detail
• Interfaces
  • how the process is triggered, its inputs and outputs and links to other functions
• Metrics
  • KPI’s
• Implementation
  • Challenges, risks and traps

1. Financial Management

• Benefits include
  • Improved decision making
  • Service Portfolio management
  • Financial compliance and control
  • Operational control
  • Value cashing and creation

Provisional Costs (Creation)

• Hardware and software license
• Annual maintenance
• Personnel that work to support and maintain
• Paid facilities
• Tax funds
• Compliance costs

Service Valuation

• Direct costs versus indirect costs
• Labour costs – wages for a service
• Variable costs – eg. Number of users or the number of occurring events
• Tiers – identity price breaks
• Maximum and average costs
• Translation of cost account data to service value, costs linked to services

2. Service Portfolio Management

• A Service Portfolio describes the services pf a provider in terms of business value
• Managers can assess the quality requirements and accompanying costs
• Goals are to realize and create maximum value, while at the same time keeping a lid on risks and costs

Value for the Business

• Why should client buy these services
• Why buy from us
• What are the price and charge models
• What are our strong and weak points, priorities and risks
• How should our resources and capabilities be allocated
• Portfolio strategy allows us to anticipate changes

SPM Process

• Defining – an inventory of all existing and proposed services
• Analyzing – maximizing the portfolio value, tuning, prioritizing and balancing supply and demand, long term goals, what services and capabilities and resources
• Approving – authorizing services and resources
• Charter – communicating decisions, allocating resources and chartering services

3. Demand Management

• DM aligns supply with demand and aims to predict the sale of products.
• The production capacity of resources available is adjusted in accordance with demand
• It5 is not possible to produce service output and store until demand arises
• Business processes are the primary demand for services

Activities, Methods and Techniques

• Core services and supporting services
  • Basic results to customer
  • Value that customer require and willing to pay
• Developing a differential offering
  • Strategic decisions that will shape a long term vision creating lasting value with customer
• Service packages
  • A detailed description of an IT service

Service Level Package (SLP)

• A SLP is a defined level of utility and warranty for a particular service package
• SLP associated with a set of service levels, a pricing policy and a Core Service Package(CSP)
• CSP is a detailed description of a core services that may be shared by two or more SLP’s
• A Line of Service(LOS) is a core service or supporting service that has multiple SLP.

4. Business Relationship Management(BRM)

• Relationships – quality of service largely depends on relationships with the customer
• There must be good and effective relationship
• BRM develops strategic alignment between IT organization and customer
• Users can contact a service desk for operational requests and to report incidents

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Specifications of BRM

• Service provider shall identify and document stakeholders and customers of the services
• Conduct regular service review meetings
• Any changes should process through change management process
• Awareness of business needs
• A formal and agreed complaints process
• Organize customer satisfaction measurements and act on it

5. Service Catalogue Management

• Development and upkeep of SC that contains
  • Accurate details
  • Status
  • Possible interactions
  • Mutual dependencies
• Central resource of all service information
• Everybody in the organization has the service in view which are supplied to the client, how they are delivered, used, for what purpose, quality as expected by the client

Service Portfolio / Catalogue

• Service Portfolio
  • Contains information about each service and its status
  • Describes the entire process from client requirements to development and execution
• Service Catalogue
  • Subset of the Portfolio consists only of active and approved services
  • Divides services into components
  • Contains policies, guidelines and responsibilities

Service Catalogue

• Defining the service
• Producing and maintaining an accurate Service Catalogue
• Interaction, mutual dependency between:
  • Consistency and monitoring of Service Portfolio
  • The services in the Catalogue
  • All services and supporting components and configuration items

Interfaces

• Inputs
  • Business information as organization plans
  • IT plans and financial plans
  • Business impact analysis
  • Service Portfolio
• Outputs
  • Service definition
  • Updates for Service Portfolio
  • Service Catalogue

Key Performance Index(KPI’s)

• Number of services incorporated and number delivered
• Improvement percentage of complete Business Service Catalogue, compared with operational services
• Improvement percentage of complete Technical Service Catalogue compared with the IT components in support of the services
• Access of the service desk

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6. Service Level Management

• Objective is to see to it that the agreed level of IT service provision is attained
• Goals include:
  • Defining, documenting, agreeing, monitoring, reporting and executing a review of the service level
  • Delivering and improving the relationship
  • Specific and measurable targets are developed
  • Expectations of client are in agreement with the service

SLM Process

• Development of client relations
• Development and management of Operational Level Agreements
• Reviewing underlying contracts
• Prevention of errors or interference in service
• Reporting and managing all services

Interfaces

• Inputs
  • Information arising from strategic planning
  • Business Impact Analysis
  • Service Portfolio and Service Catalogue
  • Configuration Management System
• Outputs
  • Service reports
  • Service Improvement Plan

KPI’S

• Descending percentage of non-attained goals
• Client satisfaction percentage
• Reduction percentage of SLA infractions

7. Capacity Management

• Creating and maintaining an up-to-date capacity plan that reflects the current and future needs
• Internal and external consulting
• Contributing to diagnosis of performance and capacity related problems
• Investigate on the impact of change
• Taking proactive measures to improve performance

Interfaces

• Inputs
  • Capacity management including information from organization plans
  • Capacity information and performance of supplier components
• Output
  • Capacity Management Information System
  • Information on the current usage of the services
  • Analysis of work stock

Business Capacity Management

• Service level requirements must be defined by customer
• Involved in the development of new and modified services and make recommendations
• Verifying and approving SLA
• Checking and implementing

Service Capacity Management

• Identify and understand the IT services
• Keeps an eye on all services
• Measures performance
• Records and analyze data
• Managing, controlling performance

Component Capacity Management

• Managing, controlling and predicting the performance of individual IT components
• Processors, network and bandwidth
• Emphasis on IT infrastructure that supports the service

KPI’S

• Accuracy rate of business trend predictions
• Improvement of monitoring service performance
• Implementation time of new technologies

8. Availability Management

• Creating and maintaining an up-to-date availability plan
• Advising on availability issues
• Guiding the customer and IT service provider
• Making diagnosis of availability incidents
• Investigate on the impact changes have on the availability plan
• Taking proactive measures

Interfaces

• Input
  • Business information, financial, strategic plans
  • Risk analysis, business impact analysis
  • Information from Service Portfolio and Catalogue
  • Change calendars and release schemas from change management
• Output
  • The availability system and plan
  • Availability design criteria
  • reports

KPI’S

• Reduction rate of availability
• Increase rate of reliability
• General availability rate of services
• Cost reduction rate
• Improvement rate of customer satisfaction

9. IT Service Continuity Management

• Maintaining a set of continuity , recovery plan
• Performing regular business impact analysis
• Executing risk analysis and estimates
• Advising on continuity issues
• Required continuity mechanism are ready for use
• Investigating the impact of changes
• Implement proactive measures
• Negotiating agreements with suppliers

Interfaces

• Input
  • Business information, strategies, plans
  • IT information
  • Financial information
  • Change information
• Output
  • Reviewed ITSCM policy
  • Business impact analysis
  • Risk analysis
  • Continuity plan

KPI’S

• Outcome of regular audits of the ITSCM plan
• Extend of service recovery targets
• Test results of the ITSCM plans
• Regular review of the ITSCM plans

10. Supplier Management

• Goal – to manage suppliers and the services they supply aimed as consistent quality at the right price
• Objectives
  • Getting your money’s worth
  • Adjusting underlying contracts with suppliers to the demands of the business
  • Manage relations with suppliers and their performance

Supplier Activities and Phases

• Identify company requirements
• Evaluate and select new suppliers(contracts)
• Categorizing suppliers and contracts
• Introduce new suppliers and contracts
• Manage performance of suppliers and contracts
• Renew or end contract

Interfaces

• Inputs
  • Business information, strategy, plans
  • Supplier and contract strategies
  • Performance information
• Outputs
  • Supplier and contract database
  • Information about the perfromance
  • Supplier improvement plans
  • Research reports

KPI’S

• The increase in the number of suppliers that meet contract agreements
• The increase in the number of contract goals that agree with SLA

11. Change Management

• Changes must be controlled so that
  • Exposure to risks is minimized
  • Severity of the impact and service interruption is limited
  • Change is successfully implemented
• Goals include
  • Anticipating the customer’s changing business
  • Responding to Requests for Change

Activities

• Record Request for Change
• Review, evaluate the impact of change
• Authorize or reject change request
• Plan updates
• Coordinate change implementation
• Review and close change record

Interfaces

• Inputs
  • RFC’s
  • Change, transition, release and deployment plans
  • Schedule of change
  • Assets
• Outputs
  • Rejected or approves RFC’s
  • New or changed services
  • Updated schedule of change

KPI’S

• Number of implemented changes that comply with customer requirements
• Benefits of change compared to costs
• Reduction of interruption of services
• Reduction of unauthorized changes
• Change success rate after evaluation compared to number of approved RFC’s
• Reduction of number of unplanned changes

12. Incident Management

• An unplanned interruption to an IT service
• Reduction in the quality of an IT service
• Failure of a configuration item that has not affected service
• Objective of IM is to resume the regular state of affairs as quickly as possible and minimize the impact on the business process

Activities

• Identification
• Registration, classification
• Prioritization
• Diagnosis
• Investigation
• Resolution and recovery
• Closing

KPI’S

• Total number of incidents
• Number and percentage of major incidents
• Average costs per incident
• Number and percentage of incorrectly allocated incidents
• Percentage of incidents handled within the agreed timeframe