Hewlett-packard Consulting: Itil Overview Session

Hewlett-Packard Consulting ITIL Overview Session

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

IT Service Management Overview For IRS, 11/3/00 #

TOPIC

START TIME

DURATION

1

Introductions, expectations, objectives, agenda

8.00

10 min

2

IT Infrastructure Library and the ITSM Reference Model

8.10

30 min

3

IT Service Management Concepts

8:40

20 min

4

Service Desk and Incident Management

9:00

30 min

5

Break

9.30

15 min

6

Problem Management

9:45

30 min

7

Change Management

10:15

30 min

8

Configuration Management

10:45

30 min

9

Operations Management

11:15

15 min

10

LUNCH

11:30

1 hr

11

Release Management

12;30

30 min

12

Availability & Continuity Management

1:00

30 min

13

Capacity Management

1:30

30 min

14

BREAK

2:00

15 min

15

Cost Management

2:15

30 min

16

Service Level Management

2:45

30 min

17

Process Management

3:15

30 min

18

Questions and Answers

3:45

15 min

END

4:00

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

NOTES

ITIL Overview Session

ITIL Overview: What is ITIL?

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

What is ITIL? 

A set of books & modules, used as a complete code of best practice for IT Service Provision



A roadmap which defines the relationships between people, processes and infrastructure necessary for effective IT Service provision



The only comprehensive, publicly available guidance on IT Service Provision



Developed by the CCTA - British Government



International Certification Programs



In place since 1986



Rewrite currently underway

http://www.itil.co.uk/

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Why Change?  

 

If it ain’t broke, don’t fix it! Need to deliver true 100% reliability within guaranteed hours of operation (most often 7x24) Even 99.5% reliability in a 7x24 shop equals 306 hours of downtime Complexity of managing a complete extended supply chain to agreed upon service levels Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

The ITIL User Community

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

The New ITIL The new library series will comprise five principal elements, each of which will have interfaces and overlaps with each of the other four. The elements are: •the business perspective •applications management •delivery of services •support of services •network and operations services

Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

ITIL Service Support Processes 





Service Desk, Incident Management, Problem Management, Change Management, Configuration Management, Release Management; Operational in nature; Provide control and stability to the IT infrastructure while remaining flexible to accommodate changes to business and time to market demands*.

*Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

ITIL Service Delivery Processes 

  

Service Level Management, Capacity Management, Availability Management, Continuity Management, Financial Management for IT Services, Customer Relationship Management; More strategic in nature, with some operational activities; Provide quality to the delivery of IT services; Cannot be truly effective without the underlying support processes.

Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Why Implement ITIL?         

Professionalism Focus on benefits to the customer/business Decision making metrics Clear points of contact Part of a QM strategy - focus on continuous improvement Cost reduction - based on the standardization of the expensive processes (20/80) Managing the infrastructure now in top 3 concerns Avoid reinventing the wheel Long term survival! Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

ITIL Overview Session

ITIL Process Framework and Interconnections: HP ITSM Reference Model

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

HP IT Service Management Reference Model Business - IT Alignment • Interface with customers • Understand business and customer requirements • Formulate an IT strategy that optimizes IT added-value

Operations Bridge • Manage customer satisfaction • Run services • Monitor and maintain the service infrastructure • Resolve incidents and disseminate information • Proactive problem prevention

Service Delivery Assurance • Document and track service infrastructure information • Document infrastructure attributes and relationships • Evaluate and control changes

• Translate IT strategy into planned IT services • Create detailed service design specifications • Define and manage service levels within cost constraints (and service budget) via SLAs • Provide security for infrastructure and data Service Design & Management

• Develop and test services • Deploy services according to service design

Service Development & Deployment

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

HP IT Service Management Reference Model D a t a b a s e s C l i e n t s P e o p l e

End Users

Customer Executive

P r o c e s s A p p l i c a t i o n s

Business Strategy Value Chain

S e r v e r s I n t e r n e t / I n t r a n e t N e t w o r k s

Problems/ Requests

Delivered Environment Service Status

Business - IT Alignment

Environment Administration

Operations Bridge

Service Delivery Assurance

IT Strategy

Service Performance (Quality)

Customer (IT Mgmt)

Service Delivery Assurance

Service Objectives & Measures

Service Reports and Associated Plans

Production Release Service Reports

Planned IT Services

Service Design & Management

Service Development & Deployment

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

HP IT Service Management Reference Model Customer Executive

End Users

Operations Bridge

Service Delivery Assurance

IT Strategy Development

Availability Management

Service Level Management

Service Level Management Capacity Management

Capacity Management

Configuration Management Change Management

ITIL

Configuration Management Change Management

Problem Management

Release Management

ITIL

ITIL

& Continuity Management

Problem Management

Service Delivery Assurance

ITIL

ITIL

Security Availability Management

ITIL

Incident Management

Customer Management

Service Planning

Operations Management

ITIL

Business Assessment

Customer Relationship Management

Financial Management

Cost Management

Service Design & Management

ITIL

ITIL

ITIL

Business - IT Alignment

Build & Test

Release to Production

Service Development & Deployment

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

ITSM Model - Benefits 

     



Define current IT environment ("as-is") Identify "gaps" and desired state ("to-be") Prioritize planned IT work efforts Identify critical process "linkages" Link problems to processes Link organization to services Target areas for potential process-enabling technologies Identify "insourcing" and "outsourcing" opportunities

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

ITIL Overview Session

ITIL Overview: IT Service Management Concepts

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

What is a Service? 





A service is product or output of the IT operation to it’s customers. It is not an internal activity between departments. It is delivered to the customer and it’s performance must be measured at the customers interface point, not IT’s internal reference points. These measurements are called the service performance levels or service levels for short. There are three customer interface points for IT services  In the screen (Applications)  In the phone (Service and Service requests)  Face to Face (Installation, consulting, and New system development)

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

What is Service Management?

Language of business

Services

The process to delivering IT Services to the business user under predefined, contracted service level agreements (SLAs) Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Language of Information Technology

We tend to be organized like this... Application Development

Goals and Priorities

Technology

Production

Goals and Priorities

Goals and Priorities

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

But our customers see us like this...

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

From Technology to Process Delivery of Required

E-Mail Service

Business

ERP Service

Services

Help Desk Service

Desktop Network Mgt Mgt

Server Mgt

Storage Application Mgt Mgt

IT Element Management + IT Task Management

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Challenges to the IT Organization 

      

Contribution to solving business challenges – This means contributing earlier in the planning cycle A measurable contribution to the business value chain Service provision as opposed to IT product delivery A business like relationship A consistent and stable service Less emphasis on technology Meeting the new demands of IT as a utility Delivering 100% reliability 7x24 Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

ITIL Overview Session

ITIL Service Support Processes

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

ITIL Overview Session

The Service Desk & the Incident Management Process

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Service Desk Objectives 

 

 

To be the primary contact point for all: – Calls – Questions – Requests – Complaints – Remarks To restore the service as quickly as possible To manage the incident life-cycle (co-ordinating resolution) To support business activities To manage the Incident Process

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Service Desk Tasks Customer interface

Business support

Service Desk

Incident control

Management information

Problem Management Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Operations Bridge Processes Production Environment Problems/ Requests

Delivered Service

Customers Progress Reports

Incident Management Known Errors

Automated Trouble Tickets

Resource Status

Operations Management

Administrative Requests

Closed Incidents

Controlled Changes

Routine Change Requests

CI Attributes & Relationships

Workorder

Service Cost Data

RFC

Problem Management

Workorder

Change Management

CI Attributes & Relationships

Configuration Management

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Resource Utilization & Performance Data

Key Delivery Activities Incident Management  Accept calls  Log incidents  Categorize incidents  Prioritize incidents  Isolate incidents

 Escalate incidents  Track incident progress  Resolve incidents  Notify end users  Close incidents

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Incident Management Process Relationship Map End Users

Production Environment

D a t a b a s e s C l i e n t s P e o p l e P r o c e s s A p p l i c a t i o n s S e r v e r s I n t e r n e t / I n t r a n e t N e t w o r k s

End User Notification

End User Request

Emergency Fix

Alert

Incident Status

Operations Management

Automated Incidents

Problem Status

Incident Management CI Attributes & Relationships

Configuration Management

RFC

Change Schedule

Change Management

Supportability Standards

Build & Test

Closed Incidents

Problem Management

Release Notification

Release to Production Trigger Input/Output

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Incidents, Problems and Known Errors 





Incident – Any event which is not part of the standard operation of a service and which causes or may cause an interruption to or a reduction in the quality of that service. Problem – The unknown root cause of one or more incidents (not necessarily known or solved at the time the incident is closed). Known Error – A condition that exists after the successful diagnosis of the root cause of a problem when it is confirmed that a CI is at fault. A work-around exists and is used to restore service until the error is removed by implementing a change. Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Incident Control Process Flow Accept Incident/Call, Record data, Consult CMDB

Initial categorisation Classification Assess and code impact/urgency/priority

Progress Control

Quality Control

Keep customer informed

Can Service Desk resolve it?

No

Yes

Reporting

Resolve

Close & code incident (Closing category) Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Refer for resolution

Classification of Incidents 

Assess and code impact/urgency/priority



 Priority code 1

Description Critical

Target resolution time 1 hour

2

High

8 hours

3

Medium

24 hours

4

Low

48 hours

5

Planning

Planned

Impact – Evidence of effect upon business activities – Service Levels in danger – Often measured in number of people or systems affected Urgency – Speed of solving an Incident of a certain impact Prioritise resources by expected effort relative to: – Manpower – Money – Time

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Service Desk Structure Customer 1

Customer 2

Customer 3

Customer 1

Customer 2

Customer 3

Service Desk Network

Desktop

Supplier

Centralised

Service Desk A

Service Desk B

Central Service Desk

Decentralised

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Escalation and Referral Inform / Support (hierarchical escalation)

Servicedesk

Knowledge (functional escalation) Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Tiered Support Operations Bridge

Skills Experience Tools Tier-1

Incident Management ESM: Operations & Monitoring

Event Mgmt

End-User

Capabilities

Service Desk

Incident Management

KB

Pre-defined • symptoms • fixes

Tier-2

ESM: Administration

Incident Management

Problem Management

• deploy • configure • diagnose • analyze • prevent

Tier-3

IT Systems Engineering

Incident Management

Problem Management

• define • design • develop/ acquire

The Service Desk is responsible for owning and overseeing the resolution of all outstanding incidents whatever the initial source. Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Service Desk Essentials      



Single point of contact/Restore service ASAP Tasks: Customer Interface, Business Support, Incident Control & Management Information Concentrates on incident lifecycle management Incident: (Expected) disruption to agreed service Priority determined by business impact and urgency Correct assessment of priorities enables the deployment of manpower and other resources to be in the best interests of the customer Escalation and referral

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Best Practices    

Integrate with service level management. Place less emphasis on “pass-through” and more on “one and done.” Place less emphasis on reducing IT's costs and more on increasing business effectiveness. Position Service Desk as the primary interface to IT and use it to increase IT credibility throughout lines of business.

Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Business Benefits        

Better utilization and increased productivity of skilled staff Fewer incidents and user difficulties with business applications Reduction in times to respond to users and to resolve incidents Greater client focus Earlier and more effective identification of problem areas Higher levels of IT service availability Comprehensive and accurate management information about the quality of service and user support Information to the business of the “health” of business applications Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Common Roadblocks     

  



How many Service Desks are enough? Interface and information sharing within large organizations Servicedesk is launched too early and gets swamped No process for functional escalation Tension between Servicedesk and other IT units Users try to bypass the system The director as Servicedesk Ineffective communication between development and Servicedesk (e.g. at roll-outs) Point solution impedes integration Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

ITIL Overview Session

Problem Management

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Problem Management Objectives What is a problem? A condition identified often because of multiple incidents that exhibit common symptoms. Problems can also be identified from a single significant incident, indicative of a single error, for which the cause is unknown, but for which the impact is significant. 

 

Stabilizing IT services through: – Minimizing the consequences of incidents – Removal of the root causes of incidents – Prevention of incidents and problems Improving productive use of resources Ensure that previous information is documented in such a way that it is readily recyclable to front line and other second line staff Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Problem Management Tasks Incident Management

Problem control Problem Management

Known Error control

Management information RFCs

Change Management

Check after change

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Managing problems saves time and money!

Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Error Control

Taken from the CCTA ITIL Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Key Delivery Tasks Problem Management  Analyze incident trends  Log problems  Assign impact code  Identify root cause  Track problem progress

 Verify known errors  Control known errors  Resolve problems  Submit RfCs Close problems and known errors

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Problem Management Process Relationship Map Production Environment

Supplier

Incident Management

D a t a b a s e s C l i e n t s P e o p l e P r o c e s s A p p l i c a t i o n s

Technical Support

Bug/ Enhancement Request

S e r v e r s I n t e r n e t / I n t r a n e t N e t w o r k s

Emergency Fix

Problem Record

Closed Incidents

Component Fix or Enhancement

Resolution Assistance Request

Calendar Trend Review Cycle

Problem Management

RFC CI Attributes & Relationships Workorder

Change Management

Workorder Status

Service Metric Data

Cost Data

Configuration Management Trigger Input/Output

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Reactive - Proactive Reactive

Proactive

Prevention of problems on other systems and applications Monitoring of Change Management Initiating changes to combat: • occurrence of incidents • repetition of incidents Identification of trends Problem identification Problem diagnosis Supplying 2nd/3rd line incident support

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Problem Management Essentials 





Objectives – Manage the problem life-cycle – Stabilizing services through:  Minimizing the consequences of incidents (the quick fix)  Removing the causes of incidents  Preventing occurrence of incidents and problems – Improving productive use of resources: Tasks – Problem Control, Error Control (including raising RFCs), Management information Reactive to proactive (stop problems occurring/recurring)

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Best Practices     

Separate incidents and problems into distinct areas of responsibility with separate metrics. Emphasize containment and prevention of incidents. Go beyond operational environment to encompass systems and infrastructure development as well. Skill people on methods for root cause analysis and problem solving. Separate the PM process from the management of the PM process.

Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Business Benefits    

 

It is a key part of an overall service improvement program It helps generate a cycle of rapidly increasing IT service quality. It is instrumental in reducing the number of incidents, leading to improve IT service quality. There will be a gradual reduction in the number and impact of problems and known errors as problems and errors that are resolved, stay resolved. The process is based on the concept of learning from past experience. There will be a better first time fix rate of incidents at the Service Desk, achieved via the capture, retention and availability of incident resolution and workaround data within a knowledge database available to the Service Desk at call logging. Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Common Roadblocks  





Allocating support staff resources to incident and problem management. Limited integration between point solution tools. Poor communications between systems development and error control in the live environment. Lack of discipline in support teams

Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

ITIL Overview Session

Change Management

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Change Management Objective

To implement approved changes efficiently, cost-effectively and with minimal risk to the existing and to the new IT infrastructure

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Change Management Tasks Manage Requests For Change

Approve & schedule changes

Change Management

Review all implemented changes

Oversee change building, testing and implementation

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Request for Change (RFC) - Scope

Hardware

Change Sponsor & Originator

Software

Change Advisory Board

CIs SLA

etc..

Documentation

Justification

etc.. RFC Environment

What, Why, When

Service impact

Category Priority Resources Estimates

RFC - a Request for Change to one or a number of Configuration Items Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Impact of Change 





Category 1 – Little impact on current services. The Change Manager is entitled to authorize this RFC. Category 2 – Clear impact on the services. The RFC must be discussed in the Change Advisory Board. The Change Manager requests advice on authorization and planning. Category 3 – Significant impact on the services and the business. Considerable manpower and/or resources needed. The RFC will have to be submitted to the board level. Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Priority Setting 







Urgent – Change necessary now (otherwise severe business impact) High – Change needed as soon as possible (potentially damaging) Medium – Change will solve irritating errors or missing functionality (can be scheduled) Low – Change leads to minor improvements (that are not contractually necessary)

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Change Management Process Manage

Implement RFC

Preparation

Categorize Prioritize Authorize Plan

Build

Refusal

CAB

Test

Approve Release

Refusal

Implementation Backout

Evaluation

Taken from the CCTA ITIL Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Management of the Change “Management” of change requests means: • evaluating the change for appropriateness, scope, ownership • authorizing the request • setting priorities for requests • scheduling resources needed to effect the change • assessing risks associated with requested changes • managing change projects Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Implementation of Changes Implementing change requests means: • breaking up change projects into work orders • assigning work orders to appropriate owners • ensuring that the changes will not have an adverse impact on the IT production environment • monitoring and tracking significant steps in the development and deployment of changes

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

The Change Advisory Board (CAB) Change Manager (Chair) Finance Manager

Service Level Manager

CAB Application Manager

Software Control & Distribution Manager

Problem Manager

Senior Business Representation

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Others as required

RFCs and Configuration Management Initial Change Request

C M D B

Configuration Management

Software CI to be changed

Related Operating CI

Related Training CI

Related Hardware CI

Combined Change Request Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Change Management Essentials – Objective  Only approved changes made, risk and cost minimized – Request For Change (RFC)  Applies to all IT infrastructure components – Tasks  Manage RFCs; approve & schedule changes; oversee change building, testing & implementation; business support – CAB and CAB/EC:  Membership  Advisory role  Assess impact, urgency & resources  Urgent changes – Urgency/Priority: urgent, high, medium, low – Impact category: no impact .... tremendous impact – Backout – Process always ends with a review of the change Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Change Management Process Relationship Map Business Assessment

IT Strategy Development

Configuration Management

Customer Management

CI Attributes & Relationships

Workorder Status Workorder

Workorder Status RFC

Incident Management

Change Record

Cost Data

Change Schedule

Workorder

Operations Management

RFC Workorder

Problem Management

RFC

Workorder Status

Change Management Service Planning

RFC External Policies and Guidelines

Workorder

Workorder

Workorder Status

Service Level Management

Availability Management

RFC

Build & Test

Capacity Management

Cost Management

Standards

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Workorder Status

Release to Production

Trigger Input/Output

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Best Practices  

  

Integrate with Configuration Management and Software Control & Distribution. Go beyond operational environment to encompass systems and infrastructure development as well. Separate the process and the management of the process. Assign ownership of process as independently as possible of the line hierarchy. Plan for urgent changes rather than making urgent changes via the normal change procedure.

Taken from the CCTA ITIL Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Business Benefits      

 

Less adverse impact of changes on services. Better up-front assessment of the costs of proposed changes. Reduction in the number of disruptive changes through packaging. Reduction in number of failed changes. Better communication with customers. Valuable management information. Increased productivity of customers and IT personnel. Ability to absorb a higher level of error-free change.

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Common Roadblocks      

Tracing life-cycle of a change, paper based systems overload easily Attempts to implement changes outside of procedure Involving outside suppliers Cultural clashes - acceptance of process discipline Excessive over-ruling for strategic expedience Over-zealousness can lead to analysis-paralysis

Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

ITIL Overview Session

Configuration Management

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Configuration Management Objectives 



Providing information on the IT infrastructure – To all other processes – IT Management Enabling control of the infrastructure by monitoring and maintaining information on: – All the resources needed to deliver services – Configuration Item (CI) status and history – Configuration Item relationships

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Configuration Management Tasks Management information Identification & Naming

Verification

Configuration Management

Control

Status Accounting

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Configuration Item (CI) 



A Configuration Item – Is needed to deliver a service – Is uniquely identifiable – Is subject to change – Can be managed A Configuration Item has – a Category – Relationships – Attributes – a Status

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

CI Process Relationships Change Record (=CI)

Incident Record

Change Record

Incident Record (=CI)

Known Error Record (=CI)

CI Problem Record (=CI)

Known Error Record (=CI) Service/SLA (=CIs)

Problem Record

Service/SLA (=CI) Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Configuration Management Process Relationship Map Business Assessment

IT Strategy Development

Change Management

Customer Management

Cost Data

CI Attributes & Relationships

CMDB Query CMDB Data Update

Cost Data

Change Record

Incident Management CMDB Query

Workorder Status Workorder

CMDB Data Update

RFC

CMDB Data Update CMDB Query

Cost Data

Operations Management

Problem Management

Service Metric Data

CI Attributes & Relationships

CI Attributes & Relationships

Configuration Management

Cost Data

Service Planning

Service Level Management

CMDB Data Update

CMDB Query

Service Performance Data

CI Attributes & Relationships

Component Usage Data

CMDB Data Update

Resource Performance Data

Cost Data

CI Attributes & Relationships

CMDB Query

Build & Test

Release to Production

D a t a b a s e s C l i e n t s P e o p l e P r o c e s s

Availability Management

Capacity Management

Cost Management

A p p l i c a t i o n s S e r v e r s I n t e r n e t / I n t r a n e t N e t w o r k s

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Trigger Input/Output

CIs - Scope and Detail Service

D E T A I L

Hardware

Network printer

Software

Documentation

PC

Local printer

VDU

Environment

Bundled s/w

No break power Keyboard

CPU DBMS SLA

SCOPE Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

W.P.

E-mail

Configuration Management Essentials  



  

Information about the IT infrastructure – more than an asset register Tasks – Identification, Status Accounting, Control, Verification, Management Information – Role in assessing impact of changes Configuration item: – Categories, Attributes, Relationships, Status, Unique Ref. No. Scope and detail (value of the information) Baselines Supports all other processes Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Best Practices       

Start early to establish the Configuration Management practice Build gradually based on perceived priorities Emphasize importance of build Careful tool selection Discipline (enforcement) to use Change Process when making changes Automated discovery tools with resource inventory capability for reconciliation Value proposition - "You can only control what you can measure, and not everything needs controlling" Taken from the CCTA ITIL Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Business Benefits    

  

Improves asset management Reduces risks from changes Leads to more effective user support Improves security against malicious changes Facilitates compliance with legal obligations Supports budget process Facilitates service level management

Taken from the CCTA ITIL Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Common Roadblocks       

Establishing depth and breadth Interfaces to other systems where CI information is stored Data collection and maintenance of accuracy Roles and responsibilities in client/server environment Establishing owners for CIs Over-ambitious schedules and scope Management commitment to importance of configuration management as a foundation block

Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

ITIL Overview Session

Operations Management

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Key Delivery Activities These functions manage and perform normal day-to day processing activities within the IT production environment, required for IT service delivery and in accordance with agreed-upon service levels.

 Schedule production processing  Monitor resource status and raise alerts  Manage output and print queue  Monitor performance  Manage backups  Manage data storage  Administer clients, servers, networks  Administer users

 Administer Internet Protocol ("IP") addresses  Administer databases  Manage voice infrastructure  Maintain a secure IT infrastructure environment  Coordinate preventive maintenance  Track service delivery cost data  Track service metric data

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Operations Management Process Relationship Map End Users D a t a b a s e s C l i e n t s P e o p l e P r o c e s s A p p l i c a t i o n s S e r v e r s I n t e r n e t / I n t r a n e t N e t w o r k s

Controlled Change Delivered Service

Incident Management

Resource Status

Alerts

Operations Management Cost Data CI Attributes & Relationships

Configuration Management

Component Usage Data

Workorder Status

Resource Performance Data

Operability Standards

Release to Production

RFC Service Metric Data

Release Notification

Workorder

Change Management

Build & Test Trigger Input/Output

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

ITIL Overview Session

Release Management

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Build & Test

This process develops and validates a functional version of a component, service function, or end-to-end service, and documents instructions for replication and implementation of a production copy as needed.

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Build & Test

 Acquire components and service functions  Develop application provision guidelines  Certify hardware/software  Construct service support and control mechanisms  Develop test plans and procedures  Perform prototype test setup  Perform prototype test

 Perform unit test setup  Perform unit test  Perform pilot test setup  Perform pilot test  Document recovery procedures  Develop support procedures  Develop training design and plan  Develop training materials  Develop master blueprint

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Build & Test Process Relationship Map Supplier

Operations Management

Incident Management Training Offerings Supportability Standards

Service Function Test Feedback Master Blueprint

Custom Design Specification

Prototype Test Setup

End Users

Component

Internal Design Specification

Service Level Management

Pilot Test Setup

Operability Standards

Application Integration Guidelines

Service Planning

Limited Production Environment

Build & Test

Training Design & Plan

Release to Production

Training Material Unit Test Setup

Cost Data

CI Attributes & Relationships

RFC Workorder

Test Environment

Configuration Management

Change Management

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Trigger Input/Output

Release to Production

This process creates one or more production copies of a new or updated component, service function, or end-to-end service for a specific customer, based on a master blueprint (production plan). “Production copies” means assembling and integrating components, service functions, or end-to-end services in such a way as to duplicate (many times if need be) what has already been designed and tested by Build & Test.

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Release to Production

 Procure resources  Conduct IT staff, supplier training  Assemble components  Distribute components  Implement service support and control mechanisms  Implement component, service function or end-to-end service  Perform software administration

 Conduct end user training  Establish production test scenarios  Perform production test setup  Perform production test  Perform end user acceptance test setup  Perform end user acceptance test  Activate service

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Release to Production Process Relationship Map IT Staff

End Users

Supplier

Customer Management Release Notification

Service Level Management

Delivery/ Support Training

Delivery/ Support Training

Component

Application Integration Guidelines

Release Notification

Test Feedback Service Function

End User Training

End User Acceptance

Incident Management

Release Notification

Master Blueprint

Build & Test

Training Design & Plan

Release to Production

Release Notification

Training Material

Workorder

Controlled Release

Production Environment

Operations Management

Production Test Setup

RFC End User Acceptance Test Setup

Cost Data

CI Attributes & Relationships

Change Management

D a t a b a s e s C l i e n t s P e o p l e P r o c e s s A p p l i c a t i o n s S e r v e r s I n t e r n e t / I n t r a n e t N e t w o r k s

Operability Standards

Configuration Management

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Trigger Input/Output

Software Control & Distribution Objectives 

Safeguard all software and related items



Ensure that only tested/correct versions of authorized software are in use



Right software, right time, right place

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Software Control & Distribution Tasks

Define the release policies

Control of the Definitive Software Library (DSL)

Software Control and Distribution

Distribute software & associated CIs

Carry out S/W audits (using CMDB)

Oversee build of the software releases Manage the software releases

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Definitive Software Library (DSL) Quality check (virus/license/ testing/complete)

Release build Logical storage

Physical distribution

DSL Software and related Configuration Items Physical storage

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Release and Distribution Process Development Environment V 1.1a-d

DSL

RFC Authorize?

V 1.0

Test Environment V 1.1d

Test Build Environment

V 1.1 Deliver

Build and test software

Q A

Test build the release Release?

Production Environment Implement

CMDB V 1.0 operational and also in the DSL. Build approval given. V 1.1a (based on V1.0) untrusted in development V 1.0 operational and also in the DSL V1.1d untrusted In test

V1.0 operational and also in the DSL V 1.1 released through the DSL for release build test V 1.0 operational and also in the DSL (update scheduled) V 1.1 trusted build in DSL

Release approval given. V 1.1 operational and also in the DSL V1.0 archived in the DSL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Software Releases Release unit

Full / Package / Delta release

Release numbering

Release policy Release frequency Emergency change

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

SC & D Essentials 



   

Objectives – Safeguard software Configuration Items (CIs) – Ensure only tested, authorized software is in the live environment Tasks – Control DSL, define release, build release, manage release, distribute s/w CIs, software audits DSL – Reliable versions of software Logical / physical storage Releases – Release unit, Full/package/delta releases, Numbering, Frequency Version control – Development, testing, live, archive Process – Software Control & Distribution (operational) – Change Management (control) – Configuration Management (control & administration)

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Best Practices  

 

 

Physically store all operational software in a Definitive Software Library (DSL). Distribute all software from the DSL. Integrate SC&D with Configuration Management, Change Management and Process Integration. Control all software by release, version, and package policies. Separate the SC&D process from the management of the process. Include all procured software in SC&D's control.

Taken from the CCTA ITIL Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Business Benefits          

The ability to maintain consistent software over many locations Detection and elimination of incorrect versions / unauthorized copies Guaranteed quality of 'live' software Ensures that errors corrected in one release do not return in a later release Better coordination of releases to avoid errors Software assets are properly and securely safeguarded Ability to build and control software used at remote sites from a central location Reduced likelihood of illegal copies of software Reduced opportunities for unnoticed introduction of viruses or other malicious software Baseline and trusted versions of software available for fallback reversions Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Common Roadblocks      

Establishing version and release policies with outside vendors Attempts to implement software outside of procedure Creating definitive software library Integrating DSL into an automated distribution environment Ensuring no circumvention of numbering policy Excessive over-ruling for strategic expedience

Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

ITIL Overview Session

Availability Management

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Availability Management Objectives 



To predict, plan for and manage the availability of services by ensuring that: – All services are underpinned by sufficient, reliable and properly maintained CIs – Where CIs are not supported internally there are appropriate contractual arrangements with third party suppliers – Changes are proposed to prevent future loss of service availability Only then can IT organizations be certain of delivering the levels of availability agreed with customers in SLAs Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Aspects of Availability – reliability;  MTBF - average up-time – resilience;  freedom from failure – maintainability;  ability to keep IT in operation - OLAs – serviceability;  underpinning contracts – planning; – monitoring and reporting. – security Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

The Incident Life-cycle MTTR - Mean Time To Repair (Downtime)=Maintainability

Detection

Incident

Repair

Diagnosis

Restoration

Incident

Recovery

MTBF - Mean Time Between Failures (Uptime)=Availability

MTBSI - Mean Time Between System Incidents=Reliability Time

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

When the customer cannot work “An IT service is not available to a customer if the functions that customer requires at that particular location cannot be used although the agreed conditions under which the IT service is supplied are being met” NB Simplistic calculation of % availability in the ITIL book is Agreed Service Hours - Downtime Agreed Service Hours

100 X

1

But what does 98% Availability really mean ? Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Availability formula - series and parallel In Parallel

In Series

Avail = 90% Disk A Monitor

CPU

Avail = 90%

Disk B

Avail = 90%

Avail = 90%

Available only if both work =

Available = 1 - Not Available =

AxA =

1 - both down =

0.9 * 0.9 = 0.81 or 81%

1 - (A Down) x (B Down) = 1- 0.1 * 0.1 = 0.99 or 99%

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Availability Management Essentials 

  



Purpose – Plan and manage CI availability Scope – Hardware, software, environment, etc. Assessing risk Calculating availability – MTBSI, MTTR, MTBF – % availability formulae Aspects – Reliability – Maintainability – Resilience – Serviceability – Security Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Key Delivery Activities

 Determine reliability and serviceability requirements  Determine security requirements  Determine contingency requirements  Analyze service availability risks  Conduct gap analysis  Develop buy vs. build recommendations

 Develop buy vs. build specifications  Establish supplier relationships  Analyze availability performance  Propose service improvements  Conduct supplier review  Rehears and review contingency plan

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Availability Management Process Relationship Map IT Strategy Development

Service Planning

External Design Specification

Design Feedback

Availability Designs & Plans

Internal Design Specification

Configuration Management Service Performance Data

IT Architecture

CI Attributes and Relationships

Cost Data

Calendar Service Review Cycle

RFC

Availability Management

Workorder

Change Management

Workorder Status OLAs

Supplier Capabilities Custom Design Specification

Supplier Performance Review

Availability Designs & Plans

Availability Designs & Plans

Supplier

Service Level Management

Capacity Management

Cost Management

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Trigger Input/Output

Best Practices  

 

Separate design from measurement Don’t separate it from contingency planning & control. That in a way also is Availability Management Use in cooperation with capacity, cost, and contingency management Let this process set the norms for measurement.

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Calculating the Cost of Unavailability

Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Serviceability & Reliability Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Business Benefits      

Accurate baseline metrics, leading to more practical and accurate Service Level Agreements (SLAs) Accurate statistics leading to better supplier relations and support Improved quality and manageability of the IT infrastructure. Improved end user services by designing and meeting specific availability targets (SLAs) Improved service levels because of a proactive, rather than reactive, approach to problems Stronger cost justification and cost effectiveness of IT

Taken from the CCTA ITIL Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Common Roadblocks      

Cost of Availability Management considered overhead and too expensive Difficult to quantify and cost users' availability requirements Hard to find experienced IT professionals Many tools needed to quantify baseline data Dependency on suppliers Understanding the IT infrastructure

Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

ITIL Overview Session

Contingency Planning

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Why Plan?    

Increased business dependency on IT Reduced cost and time of recovery Cost to customer relationship Survival

Many businesses fail within a year of suffering a major IT disaster!

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Contingency Planning Tasks Value of Assets

Threats

Risk analysis

Vulnerabilities

Risks

Risk management

Countermeasures

Planning for potential disasters

Managing a disaster

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

The nine ITIL options 1. Do nothing 2. Clerical back-up 3. Reciprocal arrangement 4. Fortress approach 5. Cold start fixed 6. Cold start portable 7. Hot start internal 8. Hot start external 9. Hot start mobile

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

The seven sections of the plan 1. Administration 2. The IT infrastructure 3. IT infrastructure management & operating procedures 4. Personnel 5. Security 6. Contingency site 7. Return to normal

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Test and Review  

  

Initially then every 6 to 12 months and after each disaster Test it under realistic circumstances Move / protect any live services first! Review and change plan What changes? New, more, less of: – Customers / services / SLRs / risks / – Dependencies / assets / CIs / staff / – Contracts / SLAs / countermeasures / ..… ALL change to be via the Change Advisory Board

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Contingency Planning Essentials   



Disasters will happen and will affect services! Assets/Threats/Vulnerabilities/Risks/Countermea sures Part of service planning & design The Contingency Plan – Assists in fast, controlled recovery – Must be given wide but controlled access – Contents (incl. Admin, Infrastructure, People, Return to normal) – Options (incl. Cold & Hot Start) – Must be tested regularly - without impacting the live service Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Component Failure Analysis Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Best Practices  

Integrate with and base on thorough Risk Analysis and Management activities Apply the "If it's not worth protecting, it's not worth doing!" approach

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Business Benefits 

   

Reduction the number of break and disasters that occur Reduction the impact of disasters that do occur Increased ability to recover from IT disasters in a controlled manner Reduction of lost time, providing greater continuity of service to users Minimal interruption to business

Taken from the CCTA ITIL Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Common Roadblocks   

Gaining commitment to staffing a Contingency Planning team Constrained to testing the plan on a production system Contingency Planning not included in departmental budgets

Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

ITIL Overview Session

Capacity Management

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Capacity Management Objective

To determine the right, cost justifiable, capacity of IT resources such that the Service Levels agreed with the business are achieved at the right time

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Key Delivery Activities

 Inventory service resources  Characterize service workloads and demands  Configure capacity profile  Determine capacity requirements  Conduct gap analysis

 Develop buy vs. build recommendations  Develop buy and build specifications  Analyze workload performance  Propose service improvements  Manage service demand

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Capacity Management Process Relationship Map

Calendar

IT Strategy Development

Service Planning

Service Review Cycle

Design Feedback Capacity Analysis

IT Architecture External Design Specification

Capacity Design & Plan

Configuration Management CI Attributes & Relationships

Operations Management Service Cost Data Performance Data

Availability Management

Availability Designs & Plans

Capacity Management

Capacity Designs & Plans

Cost Management

RFC Workorder

Change Management

Trigger Input/Output

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Management of Service and Resources Tuning

Implementation

Analysis

Monitoring

Resource Utilisation Thresholds

SLM Exception Reports

SLM Thresholds

Resource Utilisation Exception Reports

Capacity Management Database (CDB) Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Taken from the CCTA ITIL

Capacity Management - tasks CDB

DEMAND MGMT

business needs

WORKLOAD MGMT

workload forecast RESOURCE MGMT

PERFOR MANCE MGMT

- internal and external financial data - usage data - SLM data/response times

resource schedule Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

CAPACITY PLAN

Capacity Management Sub-Processes     

Demand Management Workload Management Resource Management Performance Management Capacity Planning

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Capacity Management Essentials     

From Customer Demands to Resources Demand - , Workload- , Resource Management Best Value for Money - Performance Management Capacity Planning Defining Thresholds and Monitoring

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Best Practices 

  

Capacity requirements are demand-driven (linked to business) rather than reactive (derived from technology issues) Focus on customer "owned" metrics Basis in availability management Closely linked to cost management

Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Business Benefits    

  

Ability to create and manage Service Level Agreements (SLAs) Reduced number of problems caused by lack of resources Increased end user satisfaction Increased system availability / resource utilization Improved capacity forecasting and budgeting capability Improved scheduling for upgrades and hardware installs Improved negotiating position

Taken from the CCTA ITIL Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Common Roadblocks      

Skill levels of capacity management staff Complexity of tools and tool integration Difficult to translate business requirements to system requirements to workloads Over-expectations of possible savings from implementing capacity management Difficult to manage customer expectations with respect to actual capacity and related costs Difficult to translate vendor benchmark results into realistic capacity characteristics in the production environment Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

ITIL Overview Session

Cost Management

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Cost Management

Cost Management

Costing

Charging

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Costing Objectives

To provide information about and control over the costs of delivering IT services that support customers’ business needs.

Costing is a must!

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Input cost units recommended by ITIL   

 

Equipment Cost Units Organization Cost Units Transfer Cost Units Accommodation Cost Units Software Cost Units

(ECU) (OCU) (TCU) (ACU) (SCU)

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Key Delivery Activities

 Calculate expected service cost  Analyze projected revenues  Develop service budget  Analyze service usage and cost  Propose service improvements

 Calculate invoice and bill customer  Receive payment  Establish cost and charging allocation structures  Track financial assets  Calculate total cost of ownership

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Cost Management Process Relationship Map

IT Strategy Development

Service Planning

CI Attributes & Relationships

IT Budget Design Feedback Cost Analysis

Service Level Management

Service Budget

External Design Specification

Configuration Management

Service Performance Data

Cost Analysis

Cost Data

Change Management

RFC

Cost Analysis

Workorder

Availability Management Capacity Management

Availability Designs & Plans

Calendar

Service Review Cycle

Cost Management

Billing Cycle

Capacity Design & Plan

Service Invoice

Payment

Trigger Input/Output Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Customer (IT Mgmt)

Different Cost Types      

Fixed, unaffected by the level of usage Variable, varying according to the level of usage Direct, usage specific to one service Indirect or overhead, usage not specific to one service Capital, not diminished by usage Revenue or running, diminish with usage

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Charging Objectives

  

Recover from customers the full costs of the IT services provided Ensure that customers are aware of the costs they impose on IT Ensure that providers have an incentive to deliver an agreed quality and quantity of economic and effective services

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Charging & Pricing Options Charging  No charging  Notional Charging  Actual Charging Pricing  Recover of costs  Cost price plus  Market prices

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Cost Management Essentials 

Costing – – – – – –



Knowing & understanding costs Needed to manage changes Input cost units (Equip,Org,Trans,Accom,S/W) Input cost types (F/V, D/I, Cap/Rev) Output business cost units Need for good estimates of business workloads

Charging (but not policy) – Determine charges in SLAs – Influence customer behavior – Charging does not affect costs



General – – – –

Sound stewardship Minimize risk in decision making Estimating, planning, budgeting Targets & measures Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Cost Management Process C u s t o m e r s

Capacity & Workload Forecast

Service and Scenario Planning Determine Mode of Costing

Determine Service Budget

Define Standard Cost Units

V a l u e C h a i n

Determine Charging Policy

Define Pricing Method

Service & Price List

C u s t o m e r s

IT Costing and Charging Plan IT Balance Sheet

IT P&L Statement

Monthly IT Costs

Query CMDB for Service Usage by Customer

Cost Allocations to Services

Calculate Monthly Charges

Invoice and Receive Payment Prepare Cost Analysis: Compare Plan versus Actuals

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Best Practices  

 

Clear distinction between costing and charging Linked to availability management, capacity management, and configuration management Customer-based charging Financing, benchmarking, and investments are seen as important disciplines

Taken from the CCTA ITIL Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Business Benefits Costing helps the IT Services Manager to ...  base decisions about the services to be provided on assessments of cost-effectiveness, service by services  make more business-like decisions about IT services and their related investments  provide information to justify IT expenditures  plan and budget with confidence  understand the costs of failing to take advantage of strategic opportunities to justify the required expenditure (thereby providing value-added productivity)  help the users understand the costs associated with the services that they utilize Taken from the CCTA ITIL Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Common Roadblocks 

    

Skill levels of cost management staff, especially finding professionals with accounting and IT experience Political aspects of cost allocation Monitoring can be expensive Difficult to identify and determine customerbased charges Integration across functions and tools is essential for real leverage Lack of clear IS strategy and objectives

Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

ITIL Overview Session

Service Level Management

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Service Level Management Balance between: Demand for IT services

By: – Knowing the requirements of the business – Knowing the capabilities of IT Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Supply of IT services

Service Level Management Objectives 

 

   

Business-like relationship between customer and supplier Improved specification and understanding of service requirements Greater flexibility and responsiveness in service provision Balance customer demands and cost of services provision Measurable service levels Quality improvement (continuous review) Objective conflict resolution Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Service Level Management Tasks Service Catalogue

Customer relationship management

Service Level Requirements

Service Level Management

Service Level Agreement

Operational Level Agreements & Contracts

Service Improvement Programs

Service Specsheet Monitor, Review & Report

Service Quality Plan

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Key Delivery Activities

 Assess customer-specific service requirements  Map standard services to requirements  Define customer services  Negotiate and document SLA  Establish service performance cycle

 Design custom services  Analyze customerspecific service level performance  Create customer reports  Conduct service performance review  Propose service improvements (customerspecific)

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Service Level Management Process Relationship Map Customer (IT Mgmt)

Calendar

Configuration Management Service Performance Review

SLA

Customer Management

Service Level Requirements

Action Items

Customer Reports

Reporting Service Cycle Performance Review Cycle Customer Reports

Service Performance Data CI Attributes and Relationships

Cost Data

SLA

External Design Specification

Availability Management

Workorder Workorder Status

Service Planning Custom Design Specification

RFC

Service Level Management

Cost Analysis

Cost Management

Custom Design Specification

Build & Test

Change Management

Release Notification

Release to Production

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Trigger Input/Output

Agreements and contracts Customer

Service Catalogue

Service Level Agreements Service Quality Plan

IT Organization Operational Level Agreements Contracts

Internal suppliers Underpinning Contracts

External suppliers Hardware

Software

Environment

Network

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Elements of a Service Level Agreement Name, Date, Parties, Signatures

Management reporting, Review procedure

Quality targets, Maintenance & Support

Version Number, Dates, Contents, Signatures

Service Level Agreement

Specification of Service Levels (Specsheet)

SLA Release Management & Service Change procedures

Global Statements: Contacts, Escalation, Penalties, Definitions

Parties involved, Roles & responsibilities

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Elements of a Service Specsheet Service description, Date, Duration, Deliverables Name, Date, Parties, Signatures

Service Specsheet

Service times, Location, Terms of Delivery, Finance

Information products & facilities supplied

Procedures for: Signing, Changes, Delivery, Corrective action Security, Backup & Recovery, Contingencies

Service Levels Availability, Performance

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Service Level Management Essentials (1) 

 

We need to understand what we mean by “Service Management” Objectives Improve service quality (customer dependence) – Measurable service levels – Balance between customer demand and IT capabilities



Tasks – Manage customer relationships – Create / maintain Service Catalogue – Determine SLRs; Negotiate, prepare & monitor Service Charter, SLAs & OLAs and Service Improvement/Quality plans



Minimum requirements for an agreement – Period, service description, throughput, availability, response times, signature Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Service Level Management Essentials (2) 

General – Ideally contracts are based on targets in the SLA – SLAs must take account of underpinning contracts where these already exist – SLAs can be organized by service or by customer  The new generation of service management tools allow SLAs to overlap, usually defaulting to the higher level of service. – SLAs must be monitored regularly and reviewed regularly  Monitor to see if service is being delivered to specification  Review to see if service specification is still appropriate.

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Best Practices       

Emphasize contribution to business success as opposed to IT realities. Distinguish clearly between Service Level Management (process) and Service Level Agreements (contract). Base cost recovery on SLA as opposed to uniform chargeback. Construct SLAs with and for business units using common language. Implement Service Level Management to start at design and end with measurement of a service. Establish SLAs only within the context of a Service Level Management discipline. Formulate contractual relationships with (internal) suppliers to be consistent with SLAs. Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Business Benefits  

    

Establish more business-like relationships through measurable and realistic service level agreements. Accurately balance the service requirements of customers against the costs and complexity of providing those services. Accurately specify IT resources. Reduce unpredictable demand. Cut procurement costs through better information for on time negotiations with suppliers. Establish baseline for service improvements for greater customer satisfaction. Facilitate quick and objective resolution of disputes Taken from the CCTA ITIL Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Common Roadblocks  

 



 

Customers have difficulty identifying requirements IT has difficulty identifying the customer Necessary disciplines are often not in place or not integrated with Service Level Management Differences between costing and charging not always appreciated by internal clients Investment often in a broad-based budget and not focused on a specific SLA, makes improvement difficult Managers often over-ambitious but not willing to invest in underpinning processes Lack of discipline in support teams Taken from the CCTA ITIL

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

ITIL Overview Session

Process Management

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Process Management Concepts/Terms The integration of people, information, equipment, and procedural structures to ensure conformance to objectives in an economical manner. • Process Ownership  Assign responsibility

• Process Definition, Design and Documentation  Understand the way in which value is added • Process Measurement  Measure conformance to user requirements • Process Control  Ensure that outputs meet specifications • Continuous Process Improvement  Defect removed

defect cause removed

• Process Optimization  Increased productivity and efficiency

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

The Target Solution... IT Service Management “A business-driven approach to reengineering IT, focused on delivering IT services to business users at agreed upon service quality and cost targets”

Bringing together... • People • Process • Technology Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

The Target Solution Three Critical Elements!

PROCESS

PEOPLE

• Increased efficiency and flexibility through well-defined and measurable IT processes

• Managing services to your customers, NOT technology to your users! TECHNOLOGY

• Defining the business IT wants to be in • Defining a sourcing portfolio

• Elimination of organizational “silos” • Increasing staff proficiency through comprehensive education

• Automating processes with proven technology

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

The Importance of Process It’s all about process STABILITY! What do Customers Want? • An IT environment that is stable • An IT environment that can be continuously improved

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

The Importance of Process What is meant by process STABILITY? In general terms: • A process of which the outcome is predictable In ITSM terms: • A predictable level of service (e.g., uptime, response time, no. of incidents, etc.)

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

The Importance of Process Why is process STABILITY important? Stable IT processes means: • Service levels can be negotiated • Staff focus can move from “defense” towards process improvement • forecasting can now be done in earnest

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

The Importance of Process Think about it! • Most organizations recognize the importance of stability and continuous improvement • And many organizations actively try to achieve stability and improve on a continuous basis • But – only the most advanced organizations are capable of achieving and maintaining stability, and improving their performance

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

The Importance of Process Why Technology Alone is not a Solution

Situation

Outcome

Undefined processes

Multiple reworks, false starts

Poor process linkages

Communication breakdowns

Vague processes

Inconsistent service delivery

Unclear roles & responsibilities

Accountability failure

Remember - If you can't measure it, you can't improve it! Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Addressing a Single Process Develop Process Management Plan

Map the Current Process Define Customer Requirements & Measures

Monitor Process Performance

Look for Improvement Opportunities

Perform Process Improvement

Prepare Process Improvement Plan

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Data Driven Decisions     

“If you don’t measure it, you can’t manage it” “If you don’t measure it, you can’t improve it” “If you don’t measure it, you probably don’t care” “If you can’t influence it, then don’t measure it” “Not everything that can be measured counts, not everything that counts can be measured”

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

IT Process Maturity & Service Evolution O P T I M A L

Quality Management for IT Services

Software

Infrastructure

Lifecycle

Architecture

Continuous Process Improvement

Service Quality

Design & Policies

Support

IT Services Organization

Planning & Control

Managing Supplier

for IT Services

Relationships

M A N A G E D

Measured Processes (Quantitative)

D E F I N E D

Processes Defined & Institutionalized (Qualitative)

Service Level Management

Customer Liaison

Third

Facilities

Party

Management

Maintenance

Cost Management for IT Services

Availability

Capacity

Management

Management

Contingency Planning & Management

R E P E A T

Change Management

Defining & Testing a Marketable IT Service

Process Dependent On Individual Initiative (Intuitive)

Software

Computer

Control &

Installation &

Distribution

Acceptance

Problem Management

Help

Computer

Unattended

Network

Systems

Desk

Operations

Operations

Management

Management

Configuration Management

I N I T I A L

Anarchy (Ad hoc/Chaotic

RISK

BUSINESS VISION - GOALS - OBJECTIVES Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Process Management Evolution Stage 5: Business redesign: IT enables business to be redesigned

High

Stage 4: Process redesign: IT enables processes to be redesigned Stage 3: Process management: Functional organization is supplemented by direct management of processes, enabled by IT

Potential Business Impact

Stage 2: Cross-functional integration: Computer systems are integrated but functional organization persists

Stage 1: Functional automation: Computer systems automate functions independently

Low Low Business Process and Organizational change

High

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

Implementation Challenges

Process Design What You Don't See is Critical New Business Processes Change Readiness

Job Definitions

Leadership

Retraining Reward & Measurement Information Values Systems Architecture & & Systems Organizational Beliefs Structures

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

From IT to Utility…. Implementation Challenges Loss of Autonomy 

Decisions must be made in light of the environment as a whole

Increase in Accountability 

Accountable for service level impact of decisions on environment as a whole

Shift in Power from Application to Infrastructure 

Application providers must plug into the known state infrastructure and do not have the power to change it at will

Changes to Employee Value Proposition 

change from paying the best fire fighters the most to those who proactively prevent fires from occurring in the first place - (911 to 411)

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy

ITIL Overview Session

Questions and Answers

Hewlett-Packard Company Confidential Copyright 2000 All Rights Reserved - Do Not Copy