How Do You Measure Up?
IT Metrics
Session 6
David Mannering
2009 APPA Business and Finance
Conference
Presentation Outline
1. How LES defines IT Business Value
2. (detour) How COBIT relates to IT Business Value
3. How SLAs contribute to IT Business Value
4. Digging into an SLA
5. SLA-related Metrics
6. (If time permits) The ethereal relationship between SLAs and IT
resources
Municipal Power Utility, Lincoln Nebraska
~130,000 meters
~460 employees
32 IT Staff
~65 applications (over half internally
developed)
Defining IT Business Value
IT Business Value: How well the IT organization and the information
systems it supports contribute to the corporate mission and business
plan.
What is COBIT?




Control Objects for IT and related Technology
IT Governance Framework
Defines best practices for IT
Provides IT metrics (CMM)
COBIT 4.1 is a product of the IT Governance Institute®
What is COBIT?
 4 domains
Domains
 34 Processes
 210 Control Objectives
 187 Activities
Processes
Activities
BUSINESS OBJECTIVES AND
GOVERNANCE OBJECTIVES
C
ME1
ME2
ME3
ME4
Monitor and evaluate IT
performance.
Monitor and evaluate internal
control.
Ensure compliance with
external requirements.
Provide IT governance.
O B I
T
FRAMEWORK
PO1
PO2
INFORMATION
Integrity
Efficiency
Effectiveness
Compliance
Availability
Confidentiality
Reliability
PLAN
AND
ORGANISE
MONITOR
AND
EVALUATE
DS1
DS2
DS3
DS4
DS5
DS6
DS7
DS8
DS9
DS10
DS11
DS12
DS13
Define and manage service
levels.
Manage third-party services.
Manage performance and
capacity.
Ensure continuous service.
Ensure systems security.
Identify and allocate costs.
Educate and train users.
Manage service desk and
incidents.
Manage the configuration.
Manage problems.
Manage data.
Manage the physical
environment.
Manage operations.
IT
RESOURCES
Applications
Information
Infrastructure
People
DELIVER
AND
SUPPORT
Define a strategic IT plan.
Define the information
architecture.
PO3 Determine technological
direction.
PO4 Define the IT processes,
organisation and relationships.
PO5 Manage the IT investment.
PO6 Communicate management aims
and direction.
PO7 Manage IT human resources.
PO8 Manage quality.
PO9 Assess and manage IT risks.
PO10 Manage projects.
AI1
AI2
ACQUIRE
AND
IMPLEMENT
AI3
AI4
AI5
AI6
AI7
Identify automated solutions.
Acquire and maintain application
software.
Acquire and maintain technology
infrastructure.
Enable operation and use.
Procure IT resources.
Manage changes.
Install and accredit solutions and
changes.
Mapping COBIT Domains to IT Business Value
IT Key Performance Indicators (KPIs)
At LES Service Level Agreements are Based on Applications
Application: The intersection of a business process and a database
Lincoln Electric System
Information Technology
Sample Service Level Agreement
3/4/2009
System/Project Name
The formal name of the system and system code and/or informal name (if appropriate).
Customer Information System (CIS)
System/Project Description
The function of the system.
Manages LES customer information.
Business Process Name and Owner
The name of the business process that this system supports and the business process owner (typically the division vice president)
Customer billing & collections (Consumer Services)
BPO: George Smith
Customer responsibilities
The customer side of the agreement.
•
•
Supply a System Owner (SO) with the authority to approve system changes and downtime.
(See the Information System Owners Guide for a list of SO responsibilities.)
Supply a business area/subject matter expert to respond to IT inquiries (if not the SO)
3. Issue system change requests, trouble reports, and operate the system in accordance with the provisions below.
4. Coordinate with IT for budgeting necessary hardware, software, outside services and labor charges to operate the system.
5. Respond within one business day to IT requests for approval of unscheduled system maintenance.
Information Technology (IT) responsibilities
Specific IT responsibilities.
1. Provide a System Administrator (SA) to manage the system.
2. Provide a programmer (if applicable) to support the system.
3. Provide a procedure for requesting changes and trouble reporting.
4. Respond to emergency requests within 4 hours.
SLA-Related Metrics
SLAs and IT Support Resources
How Do You Measure Up?
IT Metrics
David Mannering
CIO
Lincoln Electric System
dmannering@les.com