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    Service Management – ITIL

    Service Design

    Univ.-Prof. Dr.-Ing. Wolfgang Maass

    Chair in Economics – Information and Service Systems (ISS)

    Saarland University, Saarbrücken, Germany

    WS 2011/2012

    Thursdays, 8:00 – 10:00 a.m.Room HS 024, B4 1

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    Univ.-Prof. Dr.-Ing. Wolfgang Maass25.01.12  Slide 2 

    General Agenda

    1.  Introduction

    2.  Service Strategy

    3.  New Service Development (NSD)

    4.  Service Quality

    5.  Supporting Facility

    6.  Forecasting Demand for Services

    7.  Managing Demand

    8.  Managing Capacity

    9.  Managing Queues

    10.  Capacity Planning and Queuing Models

    11.  Services and Information Systems

    12. ITIL Service Design

    13. 

    IT Service Infrastructures

    14.  Summary and Outlook

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    Univ.-Prof. Dr.-Ing. Wolfgang Maass25.01.12  Slide 3 

    ITIL Service Lifecycle (ITIL V3)

    Last

    lecture

    Today

    (OGC, 2011)

    Service Design

    • 

    Design of new or changed servicesf o r i n t r o d u c t i o n i n t o l i v e

    environment

    • 

    Guidance  for designing and

    developing services

    • 

    Converting strategic objectives

    into service portfolios and serviceassets; or improve existing services

    • 

    Development of design capabilities

    for service management

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    Univ.-Prof. Dr.-Ing. Wolfgang Maass25.01.12  Slide 4 

    Service Composition

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    Univ.-Prof. Dr.-Ing. Wolfgang Maass25.01.12  Slide 5 

    ITIL Service Design

    Key processes in ITILService Design

    ①  Design coordination(Providing and maintaining

    single point of coordination

    and control of all design

    activities) 

    Service catalogue

    management③  Service level

    management

    ④ 

    Availability

    management

    ⑤  Capacity management⑥

     

    IT service continuity

    management⑦  Information security

    management

    ⑧ 

    Supplier management

    Input Output

    Design ofservice

    solution

    Keyservice

    design processes

    (OGC, 2011)

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    Univ.-Prof. Dr.-Ing. Wolfgang Maass25.01.12  Slide 6 

    Service Design – 2. Service CatalogueManagement

    •  Purpose

    •  Providing and maintaining a single source of consistent information on all operational services

    (service catalogue) and those being prepared to be run operationally•  Gaining common understanding of IT services of service provider between diverse stakeholders

    •  Contribution to definition of services and service packages and specification of interfaces and

    dependencies between service catalogue and service portfolio

    Definition of services and servicepackages 

    • 

    Types of services in servicecatalogue

    a) Customer-facing services –support customers business(seen by customer)

    b)  Supporting services – supportcustomer-facing services (notseen by customer); also calledinfrastructure or technical

    services•

     

    SLA = Service Level Agreementbetween service provider andcustomer (assures level ofservice quality (warranty))

    Service package of customer ii

     (   O G C  ,2  0 1 1  )  

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    Univ.-Prof. Dr.-Ing. Wolfgang Maass25.01.12  Slide 7 

    Service Design – 2. Service CatalogueManagement

    •  Structuring service catalogue

    •  Depends on audiences to be addressed –

    views for diverse audiences•  Minimum: 2 different views – (1) business/

    customer, and (2) technical / supporting service

    catalogue view

    •  Further opportunity: 3 views, e.g., (1)

    wholesale, (2) retail, and (3) supporting service

    catalogue view

    Service catalogue example

    Customers(understand

     portfolio of service

     provider)

    Users(which services are

    available; how to place

    service requests)

    Staff members(how supporting

    services and service

     provider assets

    support business

    activity)

    Used by ! 

    (OGC, 2011

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    Univ.-Prof. Dr.-Ing. Wolfgang Maass25.01.12  Slide 8 

    Service Design – 3. Service LevelManagement

    •  Purpose

    •   Agreeing on and documenting service level targets and

    responsibilities within SLAs and Service Level Requirements

    (SLR) for every service and related activity

    •  Service level targets have to be appropriate and reflectrequirements of business

    Service Level Management(SLM)①  Designing SLA Frameworks

    ② 

    Determining, documenting andagreeing requirements for newservices / Producing SLRs

    ③  Negotiating, documenting andagreeing SLAs for operationalservices

    ④  Monitoring service performanceagainst SLA

    ⑤ 

    Producing service reports⑥  Conducting service reviews

    instigating improvements withinoverall service improvementplan

    ⑦  Collating, measuring andimproving customer satisfaction

    ⑧  Review and revise SLAs and

    OLAs, underpinningagreements and service scope

    ⑨  Develop contracts andrelationships

    ⑩  Handling complaints andcompliments 

    Designing SLA Frameworks•  Operational Level Agreement (OLA) =

    agreement between IT service provider and partof same organization that supports delivery ofservices, e.g., facility department (OLA targetsunderpin those of SLA)

    •  Underpinning contracts = contracts withexternal partners/suppliers

    •  Types of SLAs:

    a)  Service-based SLAs covering 1 service

    b) 

    Customer-based SLAs covering all services ofindividual customer group

    •  Multi-level SLAs: (1) corporate level with generic SLM issues; (2) customerlevel with customer-/business-unit-specific SLM issues; (3) service level with

    service-specific SLM issues with regard to customer (OGC, 2011

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    Univ.-Prof. Dr.-Ing. Wolfgang Maass25.01.12  Slide 9 

    Service Design – 3. Service LevelManagement

    Determining, documenting andagreeing requirements for newservices / Producing SLRs

    • 

    Starts during service strategy phase•  Service level requirement (SLR) =

    customer requirement for an aspect ofIT service

    •  SLRs used to negotiate service leveltargets

    •  SLRs relate primarily to warranty ofservice, e.g.,

    a) 

    How available does the service need to be?

    b)  How secure?

    c)  How quickly must it be restored if it shouldfail?

    ③  Negotiating, documenting andagreeing SLAs for operationalservices

    • 

    Targets in SLAs originate from specifiedSLRs

    •  Only measurable targets, e.g., 99,5%availability of service

    ④  Monitoring service

    performance

    against SLA

    ⑤  Producing service

    reports

    •  e.g., service levelagreement monitoring

    (SLAM) charts

    (OGC, 2011)

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    Univ.-Prof. Dr.-Ing. Wolfgang Maass25.01.12  Slide 10 

    Service Design – 4. AvailabilityManagement

    Purpose

    • 

    Ensuring that level of availability delivered in all IT services meets the

    agreed availability needs and servicelevel targets in cost-effective and timelymanner

    •  Availability = ability of service to perform its agreed

    function when required

    •  Reliability = how long service can perform agreed function

    without interruption -- mean time between service incidents

    (MTBSI) and mean time between failures (MTBF)

    •  Maintainability = how quickly and effectively a service can

    be restored to normal working after failure (mean time to

    restore service (MTRS))

    •  Serviceability = ability of third-party supplier to meet termsof its contract (OGC, 2011

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    Univ.-Prof. Dr.-Ing. Wolfgang Maass25.01.12  Slide 11 

    Brainteaser

    •   A 24 x 7 service has been running for a period of

    5020 hours with two breaks, one of six hours andone of 14 hours.

    •  Calculate the availability, reliability (mean time

    between service incidents and mean time between

    failures) and maintainability of the service.

    •  Papers will be collected.

    10Minutes

    S i D i 4 A il bilit

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    Univ.-Prof. Dr.-Ing. Wolfgang Maass25.01.12  Slide 12 

    Service Design – 4. AvailabilityManagement

    Reactive activities, e.g.,

    Investigating all service and component

    unavailability and instigating remedial action

    • 

    e.g., via expanded incident lifecycle

    •  Minimizing impact of incidents

    •  Mapping of total IT service downtime for any

    given incident against major stages of

    incident progress (lifecycle)

    Proactive activities, e.g.,Planning and designing new or changed services

    • 

    e.g., component failure impact analysis (CFIA)•

     

    Predict/evaluate impact on IT services arising fromcomponent failures

    •  M=alternative component available but needs manualintervention to be recovered

    •   A=alternative component available

    • 

    X=failure of component causes inoperative service

    •  blank= failure of component does not impact service

     (   O G C  ,2  0 1 1  )  

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    Univ.-Prof. Dr.-Ing. Wolfgang Maass25.01.12  Slide 13 

    ITIL Service Design

    Key processes in ITIL ServiceDesign

    ①  Design coordinationService catalogue management

    ③ 

    Service level management

    ④ 

    Availability management

    ⑤  Capacity management(ensures that capacity of IT services / IT

    infrastructure meets agreed capacity- andperformance-related requirements in cost-effective and timely manner)

    ⑥ 

    IT service continuity management(ensures that IT provider can always provideminimum of agreed service levels)

    ⑦  Information security management(ensures confidentiality, integrity, availabilityof organization assets, information, data

    etc.)

    ⑧  Supplier management

    (OGC, 2011)

    S i D i 8 S li

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    Univ.-Prof. Dr.-Ing. Wolfgang Maass25.01.12  Slide 14 

    Service Design – 8. SupplierManagement

    Purpose

    •  Obtain value for money from suppliers to provide seamless quality of IT service to business

    • 

    Ensuring that all contracts and agreements with suppliers support needs of business

    Categorization of suppliers

    • 

    Strategic suppliers = significant “partnering”relationships; managed at senior management level

    •  e.g., worldwide network organization

    • 

    Tactical suppliers = significant commercial activityand business interaction; managed at middlemanagement

    •  e.g., hardware maintenance organization

    • 

    Operational suppliers = operational products andservices; managed at junior management

    • 

    e.g., internet hosting service provider

    • 

    Commodity suppliers = low-value products/services

    •  e.g., supplier of printer paper(OGC, 2011)

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    Univ.-Prof. Dr.-Ing. Wolfgang Maass25.01.12  Slide 15 

    Real Life Examples

    Procter & Gamble

    • 

    Started using ITIL in 1999•

     

    6% to 8% cut on operating costs

    •  Help desk calls reduced by 10%

    Caterpillar

    •  Started using ITIL in 2000

    •  Rate of achieving target response time for incidentmanagement on web-related services jumped from

    60% to 90%

    Capital One

    •  Started using ITIL in 2001

    •  30% reduction in system crashes and software-

    distribution errors

    •  92% reduction in “business-critical” incidents(Kaiser, 2007

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    Univ.-Prof. Dr.-Ing. Wolfgang Maass25.01.12  Slide 16 

    Critique

    • 

    Assumption: Many IT enterprises are looking for a magic bullet to end their IT chaos

    -  But: Success with ITIL is largely dependent on determining how best, and when, to apply the processesin the IT organization

    • 

    Assumption: Often claimed "ITIL compliance" gives false impression that ITIL is an IT standard

    -  But: ITIL is a set of best practices; ISO 20000 is an international standard “based” on ITIL

    • 

    Assumption: Interactive and integrative nature of ITIL processes implies the entire frameworkhas to be implemented in an „all or nothing“ manner

    -  But: Many organizations benefit from implementing only one or two ITIL processes such as change

    management or incident management

    • 

    Assumption: ITIL consists of a series of books that describe best practices in IT service areas

    an can be implemented out of the book

    -  But: ITIL provides WHAT to do, not HOW to do it; it is not an instructional manual for IT leaders toimprove IT services and operations

    (Khan, 2008

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    A Handful of IT Service Management

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    Univ.-Prof. Dr.-Ing. Wolfgang Maass25.01.12  Slide 18 

     A Handful of IT Service ManagementFrameworks

    enhanced Telecom Operations Map (eTOM)

    • 

    Published by TeleManagement Forum

    • 

    Defines most widely used and accepted standard for

    business processes in telecommunications

    industry

    • 

    Relation to ITIL:

    •  eTOM seen as addition to ITIL

    • 

    Contrary to ITIL, eTOM offers data model for eachdetailed process because telecommunication

    companies often need to interchange data -- focus on

    delivery of transparent services throughout several

    companies

    Vendor frameworks based on ITIL• 

    e.g., MS Operations Framework (MOF) as basis of

    MS System Center Service Manager [1]

    •  e.g., HP ITSM services based on ITIL [2]

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    Univ.-Prof. Dr.-Ing. Wolfgang Maass25.01.12  Slide 19 

    Outlook

    1.  Introduction

    2.  Service Strategy

    3. 

    New Service Development (NSD)

    4.  Service Quality

    5.  Supporting Facility

    6.  Forecasting Demand for Services

    7.  Managing Demand

    8. 

    Managing Capacity

    9.  Managing Queues

    10.  Capacity Planning and Queuing Models

    11.  Services and Information Systems

    12.  ITIL Service Design

    13. IT Service Infrastructures

    14.  Summary and Outlook

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    Univ.-Prof. Dr.-Ing. Wolfgang Maass25.01.12  Slide 20 

    Literature

    •  Kaiser, T. "ITIL: What is it? Why you should use it? How to use it?", PPT, 2007.

    •  Khan, I. A. "Myths and Realities about ITIL", PPT, 2008.

    • 

    Office of Government Commerce (OGC), ITIL Service Design, The Stationery Office (TSO), London, 2011.•  Spaulding, G. "What’s New in ITIL v3", PPT, 2007.

    Web:

    •  [1] http://www.microsoft.com/germany/technet/datenbank/articles/495298.mspx

    •  [2] http://www8.hp.com/de/de/services/services-detail.html?compURI=tcm:144-809129&pageTitle=ITSM-

    Services?404m=rt404mb,newcclltow1en#

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    Univ.-Prof. Dr.-Ing. Wolfgang Maass

    Univ.-Prof. Dr.-Ing. Wolfgang Maass

    Chair in Information and Service Systems

    Saarland University, Germany