1/19/2016
BCIS 5520
IT Service Management
Background & ITIL SM Lifecyle
Class 2.01
Spring 2016
Dr. Becker
Guest Speakers NEXT week
• Alan Garrison
IT Specialist IV; AITS-UIT
University of North Texas
Office: (940) 369-7594
• Wil Clark
Director, IT Service Performance
AVC & CIO ITSS Admin; UNT System
Office: (940) 565-4518
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Announcements
• Project Ideas
▫ UNT ITSM Organization
▫ Homework Assignment 2/4:
• Readings for next time:
▫ Foundations of ITSM based on ITIL v3, von Bon
 Chapter 3: Service Strategy (better to align this Chapter with
Chapter 2 in O&V)
▫ Foundations in ITSM (ITIL v3 Foundations Course in a
Book), Orand & Villarreal (O&V)
 Chapter 1: Getting Started (finish this chapter)
▫ Research Topics #1B:
▫ Role of CIO in ITSM; IT Service Quality
Overview for Lecture
• ITSM Resources & Professional Organizations
• Information Age
▫ Service … 90% of our economy?
• Frameworks & Models
▫ Anthony’s Pyramid
▫
IBM SAA Model
• Moore’s and Grove’s Law
▫
▫
Rapid Changes in technologies and organizations
A Need for Agility
• TQM –
▫
3 things: Customer-centric focus, Metrics, Continuous Improvement
▫ SDLC vs. ITSM Lifecycle (ITILv3)
▫
Functions vs. Processes; DFDs
▫ Nolan’s Stage Theory and Other Maturity Models
▫
CMMI
• Term Project Ideas?
•
SUM™
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BCIS 5520 ITSM Text Books 2015C
1. Foundations of IT Service Mgt, Brady Orand
& Julie Villarreal, June, 2011.
• Traditional Approach – Functions & Processes
• Exam questions; Chapters with sections
2. Foundations of IT Service Mgt Based on ITIL
V3, Jan Van Bon, et. al., ITSM Library, 2009
• Lifecycle Approach
• Glossary; Chapters with subsections (e.g., 2.1)
itSMF – IT Service Mgt Forum (USA)
https://itsmfusa.site-ym.com/
Forrester Research Access (Resources)
State of ITSM (2014)
ITIL® and IT Service Management
• Welcome to the ITIL and IT Service Management Zone. Here you will find information, guidance
and resources covering the whole gamut of ITIL
issues and topics.
• Click Here To Obtain The Latest 5 ITIL Volumes
Direct From The Publisher $500 US (₤299)
• What is ITIL? (YouTube Video; 4 min.) (30 sec.)
• ITIL (IT Infrastructure Library) is essentially a series of
documents (books) that are used to aid the implementation of a
lifecycle framework for IT Service Management. This customizable
framework defines how Service Management is applied within an
organization.
• It also aligned with the international standard, ISO 20000.
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IT Service Mgt? What Does it Entail?
• Bob Anderson’s Blog
• ITIL History
Director Process Development www.itservicemanagement-itil.com at
Computer Aid, Inc.
Director Process Development & Quality
Assurance at Computer Aid, Inc.
Director Process Development & Quality
Assurance at IT Service Management
Professionals Association
▫ Tracer-Revolutionary Process Mgt Tool (video; 1.5 min)
• ITSM Overview
▫ http://www.itsm.info/ITSM.htm#overview
Service Life Cycle as defined by ITIL
• Foundations of IT Service Mgt Based on
ITIL V3, Jan Van Bon, et. al., ITSM
Library, 2011
ITSM Library
itSMF – IT Service Mgt Forum (USA)/(Int)
Send comments and Questions to:
j.van.bon@inform-it.org
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Important ITSM Organizations
• OGC (Office of Government Commerce within Cabinet Office)
▫
Best Management Practice Portfolio
▫
Since 2000 the Office of Government Commerce (OGC), former owner of Best Management Practice has been
the custodian of the portfolio on behalf of UKG. In June 2010 as a result of UKG reorganization the Minister
for the Cabinet Office announced that the Best Management Practice functions have moved into Cabinet
Office.
▫
▫
The products present flexible, practical and effective guidance, drawn from a range of the most successful
global business experiences. Distilled to its essential elements, the guidance can then be applied to every sort
of business and organization. The products have helped improve processes and operations for organizations
of all sizes – including small businesses, public sector organizations and major global enterprises.
• itSMFi (IT Service Management International Forum)
▫ itSMFIi
▫
The itSMF® is the only truly independent and internationally-recognized forum for IT Service Management
professionals worldwide.
▫
This not-for-profit organization is a prominent player in the on-going development and promotion of IT
Service Management "best practice", standards and qualifications and has been since 1991, when the UK
Chapter started as the foundation Chapter.
• APM Group Ltd
▫ Testing & Certification (Check out Practice Exams)
▫
A global accreditation body which develops and delivers qualification schemes for knowledge-based workers.
The company is based in the United Kingdom. APM Group Ltd operates worldwide, with offices in the UK,
USA, Germany, Malaysia, India, Australia, China and the Netherlands.
We Are a Service-Oriented Economy
FACT CHECK of Pres. Obama’s 2012 SOTU Speech:
• OBAMA: "Tonight, I want to speak about how we move forward, and lay out a
blueprint for an economy that's built to last - an economy built on American
manufacturing, American energy, skills for American workers, and a renewal of
American values."
• THE FACTS: Economists do see manufacturing growth as a necessary component of
any U.S. recovery. U.S. manufacturing output climbed 0.9 percent in December, the
biggest gain since December 2010. Yet Obama's apparent vision of a nation
once again propelled by manufacturing -- a vision shared by many
Republicans -- may already have slipped into the past.
• Over generations, the economy has become ever more driven by services;
not since 1975 has the U.S. had a surplus in merchandise trade, which
covers trade in goods, including manufactured and farm goods. About 90
percent of American workers are employed in the service sector, a
profound shift in the nature of the workforce over many decades.
Read more: http://www.foxnews.com/politics/2012/01/24/fact-check-obamas2012-state-union/#ixzz1kXC5rn1o
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Concept of Service
-- A Service is a means of delivering value to Customers by facilitating outcomes
Customers want to achieve without the ownership of specific Costs and Risks.
• Business Service (ITILv3): An IT Service that directly supports
a Business Process, as opposed to an Infrastructure Service which is
used internally by the IT Service Provider and is not usually visible
to the Business.
• The term Business Service is also used to mean a Service that is
delivered to Business Customers by Business Units. For example:
delivery of financial services to Customers of a bank, or goods to the
Customers of a retail store. Successful delivery of Business Services
often depends on one or more IT Services.
• See also: Infrastructural/Technical (IT) Services
http://www.knowledgetransfer.net/dictionary/ITIL/en/Business_Service.htm
Concept of Business Service
• A Business Service is a Service that is delivered to Business
Customers by Business Units.
▫ For example delivery of financial services to Customers of a bank, or
goods to the Customers of a retail store. Successful delivery of Business
Services often depends on one or more Supporting Services
• A Supporting Service is a service that is performed to support a
Business Service but usually is not visible to the Customers of the
Business Service. A Supporting Service may be provided internally
by the Service Provider organization (sometimes referred to as an
Infrastructure Service) or it may be provided by a third party
Service Provider.
• When we refer to Business Services alone, generally we mean that
this includes Supporting Services.
http://esmarchitecture.com/key-concepts/business-it-digital-services.html
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Useful IT Models/Frameworks
for IT Service Mgt or Mgt in General
1.
2.
3.
4.
5.
6.
7.
8.
9.
Anthony’s Management Pyramid
Virtual Organization
IT Investments and Productivity
Moore’s Law and Grove’s Law
Total Quality Management; Deming
Systems Development Life Cycle (SDLC)
ITIL Service Mgt Life Cycle
Nolan – Norton Stages IT Maturity
Other Organization Maturity Models:
▫ CMMI, QMMG, ISO, etc.
Organizational Strategy
Determines Information Systems
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Virtual Organization [VO]:
Non-Traditional Modern Organization
Courtesy: Henderson & Venkatramen, 2000
A Three-Legged Stool
GUI
Customer
Interface
Alliances
Partnerships/
Outsourcing
BPR
Business Process
Reenginering
8-15
Information Age:
U.S. Productivity Attributed to IT Investments
Slide 1 - 16
Finally!!
Circa 2000
IT Investment GNP
Exhibit 1.1 Actual GNP Growth (all factors)
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Why IT Investment Became
Positive Factor for US GNP Growth
(Circa 1998-2000)
Becker’s Speculation/Conjecture…
IT/IS Investments
1960-2000
Critical Masses:
1. Hardware
2. Software
3. People
4. Systems/Processes
US GNP
Growth Attributed to
IT Investments!
My Spin on Success of IT
Investments – Macro vs. Micro-Econ
• IT Investment growth exponential since 1960’s
▫ Especially since 1990 – 2000
• Y2K – Propelled large scale systems investments
▫ 1995 – 2000 (12/31/1999)
• WWW.Dot.Com Boom
▫ Flooded the market with NEW IT Investments
• Moore’s Law and Grove’s Law
▫ Multiplied $Dollar Investments exponentially
each year.
• Human Resources in place
▫ Critical Mass of trained Users (EUC)
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Log of Growth
Moore’s Law vs. Grove’s Law
New Paradigm Shift
TQM – Total Quality Management
• W Edward Deming, Father of TQM
1. Customer-oriented
2. Measurable – Metrics
3. Continuous Improvement
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Deming’s 14 Points
A core concept in implementing TQM is Deming’s 14 points, a set of
management practices to help companies increase their quality and
productivity:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Create constancy of purpose for improving products and services.
Adopt the new philosophy.
Cease dependence on inspection to achieve quality.
End the practice of awarding business on price alone; instead, minimize total cost by
working with a single supplier.
Improve constantly and forever every process for planning, production and service.
Institute training on the job.
Adopt and institute leadership.
Drive out fear.
Break down barriers between staff areas.
Eliminate slogans, exhortations and targets for the workforce.
Eliminate numerical quotas for the workforce and numerical goals for management.
Remove barriers that rob people of pride of workmanship, and eliminate the annual
rating or merit system.
Institute a vigorous program of education and self-improvement for everyone.
Put everybody in the company to work accomplishing the transformation.
Different Approaches
• Staged (Maturity) vs. Continuous Improvement
• Lifecycle (SDLC) vs. Functions & Processes
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ITIL ITSM Lifecycle
1.
2.
3.
4.
5.
Service Strategy
Service Design
Service Transition
Service Operation
Continual Service
Improvement
Service Lifecycle: Definitions
• Basic Concepts
▫ Good Practice vs Best Practice
▫ ITIL is a “good” practice. Widely acknowledged and
understood
▫ Service
▫ A means of delivering value to customers by
facilitating outcomes the customers want to achieve
without the ownership of specific costs or risks
▫ Value
▫ Core of the service concept: Utility & Warranty.
Utility is what the customer receives; Warranty is
how service is provided
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Service Lifecycle: Definitions (cont.)
▫ Systems (IPO)
▫ A group of interrelated components that form a
unified whole operating to process inputs into
outputs. Feedback loops are part of open systems
Input
Process
Output
▫ Functions & Processes (See Anthony’s Pyramid)
▫ A function is a subdivision of an organization that
specialize in fulfilling a specialized type of work
▫ A process is structured set of activities designed to
accomplish a specific objective.
Service Lifecycle: Definitions (cont.)
▫ Service Management vs. Goods Mgt
 A set of specialized organizational capabilities for
providing value to customers in the form of services.
 Specialization & Coordination
 Service management coordinates the business of service
management responsibility with regard to certain resources.
 Agency Principle
 SM involves an agent and principal that compels the agent to
fulfill activities on their behalf.
 Encapsulation
 Hide what the customer does not need to “see” and show only
what is valuable and useful
▫ Systems
▫ Functions & Processes
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Traditional Systems Development
Lifecycle (SDLC)
1-28
SDLC + Five-Component Model
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ITIL's IT Service Lifecycle - The Five
New Silos of IT by Rick Lemieux
Service Lifecycle vs. SDLC
Service Management Lifecycle
▫
▫
▫
▫
▫
Service Strategy
Service Design
Service Transition
Service Operation
Continuous Service
Improvement
Systems Development
Lifecycle (a.k.a., Waterfall)
▫
▫
▫
▫
▫
Analysis & Definition
Design Specifications
Development/Implementation
Operation
Assessment
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Value Proposition (TQM)
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Nolan Stages of Organizational
Maturity Model (ACM, July, 1973)
I. Initiation
II. Contagion
III. Control
IV. Integration
VII. Decentralized Networks
V. Data Administration VIII. Reorganization&
Collaboration
VI. Maturity
IX. Public & Private Networks
Nolan’s
S-shaped Curve
Nolan-Norton Stages of IT Maturity
• Dick Nolan, formulated a
theory of the stages by which
information technology is
leveraged by organizations.
• His theory (diagram above)
was that the rate at which
technology was deployed could
be depicted by a series of Scurves.
• The time periods between the
s-curves were periods of
discontinuity — first,
technological discontinuity,
and then organizational
discontinuity.
• The Beauty of Nolan’s Stages
Theory is that:
▫ 1) an industry can be
characterized as being
somewhere along the Scurves;
▫ 2) a single organization
can be plotted on the curves;
and
▫ 3) even a line of business
within a company can be
positioned on the graph.
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Can Just 10 Metrics Show CIOs What They Need to Know?
March 29, 2011 CIO, Service Metrics
In a previous post, we quoted from an article that listed 100 different metrics for CIOs. But if we
were new CIOs, would that much information be overwhelming? So is there a way to pick just a
handful of metrics that would be useful to us?
Chris Curran, in his article “10 Metrics for a New CIO,” argues that just a tenth of the numbers are
necessary. He lists the following ten numbers, with explanations you can read in the article.
1.
Multi-year view on productivity, something like (Discretionary IT Spend)/(Total IT
Headcount). This could normalized it with some factor for “effective” discretionary spend assuming
all projects are not 100% effective.
Percentage of discretionary spend categorized by type
Number of bug fixes and enhancement requests for top 20 systems
Average hours/days to close critical/high support issues
Percentage of projects using enterprise hardware and software standards
Number of hours/days of training per person/team/area
Number of projects in each phase of the SDLC and average times in each stage (view of overall
project pipeline, identify bottlenecks, etc.)
Some kind of customer/user measure if the company has any customers using an online channel
Percentage of projects who deliver 100% of their planned scope or percent of scope delivered
Core application availability (not technical SLA stuff, rather apps availability when users need it)
2.
3.
4.
5.
6.
7.
8.
9.
10.
We’re not sure we agree with the last statement. We agree with Chris that customer satisfaction is
an important measure. Where we disagree is when he states that, aside from a general survey, he
hasn’t seen anything useful. Our Managed Maintenance Application Support Process has a
wonderful five-question form that gives the user room to expand on the assigned numbers for each
question.
Organizational Maturity Models
•
•
•
•
•
•
•
CMMI – Capability Maturity Model Integration
QMMG – Quality Management Maturity Grid
ISO/IEC 20000
Gartner Maturity Model
KPMG’s World Class IT Maturity Model
Customer Maturity
Virtual Organization – Maturity Model
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CMMI is much more than Software
Quality
Term Project Ideas
ITSM Service Catalog
& Portfolio Fulfillment
Policies
• KEDARit SUM™ Software
• Service Utilization Manager to
Define Services provided:
• Define IT Service Catalog and
Portfolio fulfillment policies,
such as:
▫ Portfolio of Business and
Technical IT Services,
▫ Identify Services for the IT
Service Catalog,
▫ Define their relationships to
each other and to Line of
Business (LOB) organizations,
and
▫ Define the planned usage of
▫ SLAs (Service Level
Agreements) and OLAs
(Operational Level
Agreements) for services, and
▫ Process workflow automation
services and RACI
(Responsible, Accountable,
Control, Information) matrix.
IT Services by each LOB.
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Charles Williams, Principle, KEDARit
• FREE Access to SUM tool for semester
• SUM™
▫ Logon as Designer or BI Analyst
• FREE Training
• Project Identification and Scoping
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COp-S™ Cost Optimization Service
• SUM™ Frontend to COp-S
Part I: IT Service Lifecycle (ITIL)
ITIL – Certifications:
• ITIL Exams v2
▫ Foundation
▫ Practitioner
▫ Manager
• ITIL Exams v3
▫
▫
▫
▫
Foundation Level
Intermediate Level
ITIL Diploma
Advanced SM Professional Diploma
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Summary
• Compare and contrast the Lifecycle Approach to
the Functions & Process Approach to IT Service
Management
• Provide many examples of Models and
Frameworks provided in this lecture
• See useful links and references below
ITSM & ITIL Links
• www.axelos.com/ - the Official ITIL Global Resource Site
• www.itil.co.uk - the Official ITIL Website of the OGC
• www.iseb.org.uk - Information Systems Examination Board - ITIL
Certification Exams
• www.exin-exams.com - Examination Institute of the Netherlands - ITIL
Certification Exams
• www.itilexams.com - Loyalist College of Applied Arts and Technology - ITIL
Certification Exams
• www.bsi-global.com - British Standards Institution
• www.itsmf.com - IT Services Management Forum - Worldwide site
• www.itsmf.net - IT Services Management Forum - US site
• ITIL bibliography - An ITIL bibliography from www.itsmfusa.org
• www.itilcommunity.com - A vendor independent, interactive, user portal
dedicated exclusively to ITIL
• www.dritil.com - Dr. ITiL: A vendor independent, interactive, user portal
dedicated to free ITIL guides, templates, white papers and hot links
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