2/10/2016
BCIS 5520
IT Service Management
ITSM Service Strategy,
Functions & Processes
Class 4.01
Spring 2016
Dr. Becker
Announcements -- Next Week
• Homework Class 5 –(click here)
• Chapter readings:
▫ Foundations of ITSM based on ITIL v3, Jan von Bon (JVB)
 Chapter 9: Functions & Processes in Service Strategy
▫ Foundations in ITSM (ITIL v3 Foundations Course in a
Book), Orand & Villarreal (O&V)
 Chapter 3: Service Strategy Process
 Research Topics:
▫ #3A- Service Strategy Process (w/ ITIL)
▫ BONUS (50-100 pts): ITSM 3 Case Studies (Becker, et. al.); and/or
Case Study Practitioner Article
• Project Ideas
▫ UNT ITSM Organization?
1
2/10/2016
Readings Tonight
• Homework Class 4 –
• Chapter readings:
▫ Foundations of ITSM based on ITIL v3, von Bon
 Chapter 8: Introduction to Functions & Processes
▫ Foundations in ITSM (ITIL v3 Foundations Course in a Book),
Orand & Villarreal (O&V)
 Chapter 2: Service Strategy (follow-up to last week’s
readings)
▫ Research Topics:
▫ #2A- ITSM Service Strategy; ITSM CSFs and KPIs
▫ Frameworks, Models, & Theories: Link
 Extra Handout
▫ 2012 SIMPosium Conference Presentation:
“How IT Governance Facilitates Alignment & Resource Optimization” Ernst
and Young (Suzuki, Turcotte, Hamaker)
Past Project Ideas
UNT ITSM Organization
1. Policy, Process, and Documentation Templates
–for Key UNT IT forms (ITSM ITIL Library)
2. Tool Set (e.g., Remedy) Specification &
Evaluation—e.g., Change Management, etc.
3. Balance Scorecard and Metrics Project
Guidance on the use and implementation of BSC
and its value to decision makers
2
2/10/2016
Past Project Ideas (continued)
UNT ITSM Organization
4. Change Management Plan for one UNT
Organization Component
5. Organizational and Cultural Change Issues
associated with ITIL implementations.
How to manage or avoid the pitfalls?
6. Service Catalog, SLA, and Service Level
Objectives (Requirements); Service Design Phase
Guidance on the creation and relationship of these 3
items and templates.
Past Project Ideas (continued)
UNT ITSM Organization
7. ITIL Implementation Plan TEMPLATE
Provides guidance for creating an Implementation
(Transition or Operation or Whole Cycle) Plan
Becker Favorites:
8. Can ITIL Actually Improve Project Success Rates
or ROI?
9. KEDARit ITSM tool Project (SUM™)
3
2/10/2016
2014-2015 Project Topics
1.
Johnson, Chris, “ITIL and Surveillance Camera Services at UNT”
2.
Kisner, Matthew, “A Framework for Identifying and Selecting an
ITSM Tool.”
3.
Perez, Christian, “IT Service Management: Release Management
and Agile Development”
4.
Ashraf, Mehnaz, “Soft Issues and Organizational Cultural:
Imperative to Successful ITSM process implementation”
Ballard, Jessica, “Service Desk ITIL Compliance through SaaS”
Crook, Brandon, “Utilizing ITIL for Information Security
Management (ISM)”
Franco, Juan, “Return On Investment Of An ITIL V3
Implementation”
Hart, Andrew, “Availability Management Approach (With Six
Sigma Tools) to Meet or Exceed Established Service Level
Agreements (SLAs)?”
Morris, Kevin, “Master Data Management (MDM) and ITIL”
5.
6.
7.
8.
9.
ITIL ITSM Lifecycle: 5 Stages
1.
2.
3.
4.
5.
Service Strategy
Service Design
Service Transition
Service Operation
Continual Service
Improvement
4
2/10/2016
1.4 Why is ITIL So Successful?
(Copied from the ITIL Best Practices Library)
ITIL embraces a practical approach to service management – do what works. And what works is adapting a common framework
of practices that unite all areas of IT service provision towards a single aim – that of delivering value to the business. The
following list defines the key characteristics of ITIL that contribute to its global success:
Vendor-neutral ITIL service management practices are applicable in any IT organization because they are not based on any
particular technology platform or industry type. ITIL is owned by the UK government and is not tied to any commercial
proprietary practice or solution.
Non-prescriptive ITIL offers robust, mature and time-tested practices that have applicability to all types of service
organization. It continues to be useful and relevant in public and private sectors, internal and external service providers, small,
medium and large enterprises, and within any technical environment. Organizations should adopt ITIL and adapt it to meet the
needs of the IT organization and their customers.
Best practice ITIL represents the learning experiences and thought leadership of the world’s best-in-class service providers.
ITIL is successful because it describes practices that enable organizations to deliver benefits, return on investment and sustained
success. ITIL is adopted by organizations to enable them to:
1. Deliver value for customers through services
2. Integrate the strategy for services with the business strategy and customer needs
3. Measure, monitor and optimize IT services and service provider performance
4. Manage the IT investment and budget
5. Manage risk
6. Manage knowledge
7. Manage capabilities and resources to deliver services effectively and efficiently
8. Enable adoption of a standard approach to service management across the enterprise
9. Change the organizational culture to support the achievement of sustained success
10. Improve the interaction and relationship with customers
11. Coordinate the delivery of goods and services across the value network
12. Optimize and reduce costs.
Main Output of Service Strategy
• Service Level Package (SLP) includes:
▫ Strategic Business Requirements
▫ Feasibility & Guiding constraints
 IT exists to create services and value
 NOT to provide technology
 TESO – Technology, Economic/Financial, Staff,
Organization
▫ Process Requirements
▫ Serves as the input to the Service Design stage
5
2/10/2016
Value Through Service
• Value created by Soft • Value created by
Assets:
Hard Assets:
▫ Soft Assets





▫ Hard Assets
Management
Organization
Process
Knowledge
People





Financial Capital
Infrastructure
Applications
Information
People
Service Value Chain
• Service Assets provide potential for 
• Services, which provide performance
potential for 
• Customer Assets, which provide value
potential for 
• Business Outcomes! (ROI)
6
2/10/2016
Types of Services (Core & Support)
• Core Service
▫ ATM dispense cash
• Enabling Service
▫ Power, telecommunication, etc.
• Enhancing Service
▫ Printing an ATM receipt
• Combinations of all types of services are call
Service Packages or Service Level
Packages (SLP)
14
Value Chain Analysis
Value Chain Analysis (Porter) is a process of analyzing an organization’s
activities to determine where value is added to products and/or services
and what costs are incurred in doing so.
7
2/10/2016
Defining the SLP with Shared
Activities (Service Strategy)
1. Define the Market
▫
Understand the Customer
2. Develop the Offerings
▫
Define the Service deliverables
3. Develop the Strategic Assets
▫
Develop/Identify Required Resources and
Capabilities
4. Prepare for Execution
▫
▫
Project planning
Define the CFSs & Measurable outcomes
Types of ITIL Questions Raised
(recall)?
•
•
•
•
•
•
What is our market?
What does the market want?
Do we have something unique to offer?
Do we have the right portfolio?
Do we have the right service catalogue?
Are services designed properly?
8
2/10/2016
Critical Success Factors
• A.k.a, Strategic Industrial Factors (SIF)
▫
▫
▫
▫
▫
▫
▫
Defined in terms of capabilities and resources
Are key to success for market leaders
Defined at the market level
Basis for competition among rivals
Dynamic (time dimension)
Capital intensive to develop
Measurable value calculated through a
combination of other factors
Introduction to Functions &
Processes
•
•
•
•
•
•
•
•
Introduction
Management of Processes
Teams, Roles & Positions in ITSM
Tools used in ITSM
Communication in IT Service Organizations
Culture
Processes, projects, programs & portfolios
Functions & processes in the Lifecycle phases
9
2/10/2016
Processes & Functions
• Process: A structured set of activities
designed to accomplish a specific set of
objectives (IPO)
▫ Measureable; specific output; Customer; Respond
to trigger
• Function: Units of organization specialized to
perform certain types of work and responsible
for specific outcomes
▫ E.g.: Service desk, help desk, IT operations teams,
etc.
Management of Processes
• Process:
▫ A structured set of activities designed to
accomplish a defined objective
▫ Classic IPO System Model
Input

Process

Output
▫ Leads to Procedures (who & how) and work
instructions (detailed steps in a procedure)
10
2/10/2016
Organizational Strategy
Determines Information Systems
Processes & Functions
Nature of Functions & Processes
• First Master Internal Processes
▫ Value chain inside the organization (SCM)
• Then Master the External Processes
▫ Customer-oriented processes (CRM)
• Goal is to:
▫ Evolve to a Mature customer-focused
organization
11
2/10/2016
Processes and Departments
ITIL Best practices can help determine the most effective and
Efficient series of activities
Teams, Roles and Positions in ITSM
• Tasks may be performed by:
▫ Groups; Teams; Departments; Divisions, etc.
• Organizations may be arranged as
▫
▫
▫
▫
▫
Hierarchical Organizations
Flat Organizations
Network Organizations
Project Organizations
Process Organizations
12
2/10/2016
ITSM Tool Sets
• Automated Support (Top 10)
1. BMC Software Remedy ITSM
2. IBM Tivoli Service Request
3. FrontRange ITSM
4. TechExcel ServiceWise
5. Vivantio Service Desk
6. CA IT Service Mgt
7. Numara Footprints
8. EMC Infra ITIL SM
9. Epicor ITSM
10. SunView ChangeGear Products
Communication Within IT Service
Organizations
• People, process, partners, & technology (hardware
& software)
▫ Recall the 5-Component Model (data; SDLC)
▫ #1 People
• Can there be TOO much documentation, regulation
and control?
▫ Create a Clear & Concise Communication Policy
• Identify the Formal communication structures:
▫ Reporting; Meetings; Online facilities; Notice boards
13
2/10/2016
Organization Culture
• The way that people deal with each other in the
organization… such as:
▫
▫
▫
▫
▫
▫
Autocratic
Democratic
Teaming
Innovative
Dog-eat-dog
Nuturing
Process, projects, programs, and
Portfolios
• Define for each organization:
▫ Processes
 A structured set of activities to accomplish a defined
objective
▫ Projects
 A temporary organization to achieve an objective
▫ Programs
 A set projects that are inter-related
▫ Portfolios
 A collection of projects & programs brought together
for the sake of control, coordination and optimizations
14
2/10/2016
Example Application Portfolio
Functions and Processes in the
Lifecycle Phases
• Chapters 9-13 in JVB were designed as follows:
▫
▫
▫
▫
▫
Introduction
Activities, Methods and Techniques
Interfaces
Metrics
Implementation
15
2/10/2016
ITIL ITSM Lifecycle
1.
2.
3.
4.
5.
Service Strategy
Service Design
Service Transition
Service Operation
Continual Service
Improvement
ITSM Service Strategy & Functions
& Processes: Summary
• ITIL provides a structured framework
based upon best practices and
management theory
• Functions and Processes are the “muscles
and bones” for the organizational service
delivery systems
• ITIL V3 incorporates the Lifecycle
approach to ITSM in order to best manage
Functions and Processes from their
definition through their implementation
16
2/10/2016
What is IT Governance?
ISACA was formerly known as Information Systems Audit and Control Association
2012 SIMPosium Conference
Presentation:
“How IT Governance Facilitates Alignment
& Resource Optimization”
Ernst and Young (Suzuki, Turcotte, & Hamaker)
Key Points:
1. Volatility, Velocity, and Visibility (VVV)
2. Difference between Governance &
Management Processes
3. ISACA’s COBIT Framework for Governance
4. Current State, Future State, How to Get There?
5. KPI’s and ROI
17
2/10/2016
IT Service Management & IT
Governance With ITIL and COBIT
Frameworks
• ICIS Paper (2006) Handout Class #1
• Panel Discussion; SIM Academic Workshop / ICIS 2006
Milwaukee, WI
“Dynamic Reconfiguration Deployment?”
Dr. Jack D. Becker
University of North Texas
Catherine Szpindor
Retired - VP of IT, Sprint-Nextel Executive on Grounds – UVA
Peter Beasley
Principal, NetWatch Solutions, Inc.
“How IT Governance Facilitates
Alignment & Resource Optimization”
--Ernst and Young (Suzuki, Turcotte, & Hamaker)
• Class (paper link) Discussion
• Dynamic Reconfiguration Deployment?
▫ Standards, Best Practices (ITIL), Governance,
Alignment, Agility, CMDB (ITIL), Competitive
Advantage
18
2/10/2016
IT Challenges:
• Shorter cycle times
• Rapid deployment
• Mass Customization
• Same Day Services
• Anytime, Anywhere, Anyplace
• WWWW (mobility)
19
2/10/2016
POCIS (5 basic):
Planning, Organizing,
Controlling, Influencing
(/Directing), and Staffing
What about Leading?
a.k.a.,
Deliver
a.k.a.,
Functions
ISACA’S COBIT framework (v5.0)
20
2/10/2016
ISACA’s COBIT Framework (v5.0)
Governance Processes (at top of fig.)
• Evaluate, Direct, Monitor
▫ EDM01: Ensure governance framework setting
and maintenance
▫ EDM02: Ensure benefits delivery
▫ EDM03: Ensure risk optimization
▫ EDM04: Ensure resource optimization
▫ EDM05: Ensure stakeholder transparency
21
2/10/2016
22
2/10/2016
Concluding Note (More on these to come) :
ITIL Defines 3 Strategic Process Levels
• Financial Management
▫ Service Value
 Provisioning value (production costs), ROI
 Service value potential (value-adding component)
• Demand Management (DM)
▫ Managing Customer Expectations
▫ SLAs based upon:
 Patterns of Business Activity (PBA)
 Service Level Packages (SLP)
• Service Portfolio Management (SPM)
▫ Document and manage SP; Optimize Value & Control
Costs & Risks
23
2/10/2016
Summary
• Compare and contrast the Lifecycle Approach to
the Functions & Process Approach to IT
Service Management
• Provide examples of Models and
Frameworks provided in this lecture
• IT Governance, ITIL, and ROI
▫ Competitive Advantage, Dynamic Reconfiguration
of Resources
24