Service Delivery Quick Reference

Service Level Management GOALS To maintain and gradually improve IT service quality trough a constant cycle of agreeing monitoring and reporting upon IT service achievement and instigation of actions to eradicate poor service

Financial Management for IT services GOALS To provide cost-effective stewardship of the IT assets and resources used in providing IT Services

Capacity Management GOALS To ensure that cost-justifiable IT capacity always exist and that it is matched to the current and future identified business needs or Having the appropriate IT capacity and making best use of it

IT Service Continuity Management GOALS The goal for ITSCM is to support the overall Business Continuity Management process by ensuring that the required IT technical and services facilities can be recovered within required, and agreed, business timescales

Availability Management GOALS Satisfy Business objectives Achieve sustained level of availability Ensure cost effectiveness Optimize the capability of services and components

OBJECTIVES High quality, cost effective, value-adding IT services that underpin the organization’s business needs Play a key role in ascertaining the business requirements SLA is written agreement between the customer and the IT service provider, defining key targets and responsibilities on both sides

OBJECTIVES To manage the financial aspects of IT assets and resources cost-effectively To account fully for the total spend on the provision of IT Services and to attribute the cost to the services delivered To advise management on IT investment matters by providing detailed business cases

OBJECTIVES

OBJECTIVES

OBJECTIVES

PROCESS Established Function Initial Planning activities and Implementation Implement SLAs Compile a service catalogue Establish SLA structure Establish overview of Service Level Requirements (SLRs) Plan UCs and OLAs Draft and agree SLAs Manage The Ongoing Process Monitor and report SLA achievements Review SLA achievements Identify Service improvements (SIP) Periodic Reviews Review and update SLAs, UCs and OLAs Review SLM process for efficiency and effectiveness

PROCESS Budgeting Setting the budget IT Accounting Building a Cost Model Charging Setting the Price Pricing methods Differential Charging Billing

PROCESS – sub-processes Business Capacity Management Service Capacity Management Resource Capacity Management

PROCESS Stage 1- Initiation Initiate BCM Stage2 – Requirements and Strategy Business impact analysis Risk assessment Business Continuity Strategy Stage3 - implementation Organizational and implementation planning Implement stand-by arrangements Develop Recovery Plans Implement Risk reduction Measures Develop Procedures Initial testing Stage4 – Operational Management Education and awareness Review and audit Testing Change Management Training Assurance

PROCESS ACTIVITIES determining the Availability requirements from the business for a new or enhanced IT Service and formulating the Availability and recovery design criteria for the IT Infrastructure in conjunction with ITSCM determining the vital business functions and impact arising from IT component failure defining the targets for Availability, reliability and maintainability for the IT Infrastructure components establishing measures and reporting of Availability, Reliability and Maintainability that reflects the business, User and IT support organisation perspectives monitoring and trend analysis of the Availability, Reliability and Maintainability of IT components reviewing IT Service and component Availability and identifying unacceptable levels investigating the underlying reasons for unacceptable Availability producing and maintaining an Availability Plan which prioritises and plans IT Availability improvements.

DEFS Service Catalog: defines services with default levels and options. Gives a profile of IT service provider to org. and overview of services provided to users. SLR-Service Level Requirements: list of clients reqs. OLA-Operational Level Agreements: Between 2 intern IT departments UC-Underpinning Contract: With an external supplier. SLA SIP-Service Improvement Program: SLM with PM and AM starts a formal project focusing on user satisfaction Service Catalog Contents Version number, date created, date amended; TOC; Foreword from CIO; IT Service provider profile; Service times and accessibility of IT Service Provider; Overview of services and products; Customer focused service/product description; Specs; Deliverables; Service times; Maintenance times; Support times; Delivery times; Quality targets (availability, usability, reliability, priority); Requirements; Request & Change procedure; Contigency policy; Pricing & Charging; Index & Definitions

DEFS Cost Model: by service, location, customer (for charging) Cost Types: HW, SW, People, Accommodation, External services, Transfer costs Cost Elements: Sub elements of Cost Types, like HW = NW, Server, Office Cost Category Capital or Operational Direct/Indirect Absorbed/Unabsorbed Indirect Fixed/Variable

INPUTS Technology SLA, SLR and Service Catalogue Business plans and strategy IS/IT plans and strategy Operational schedules Deployment and development plans and programs Forward schedule of change Incidents and problems Service reviews SLA breaches Budget

INPUTS Business availability requirements Business impact assessment Availability, Maintainability and Reliability requirements Impact assessment for Vital Business Functions Incident and problem data Configuration and monitoring targets Service Level Targets

CHARGING Notional (Invoiced, not payed), Communication of Info (customer informed of charges to be aware), Pricing Flexibility (Rates charged annually)

OUTPUTS Capacity plan CDB Baselines and profiles Thresholds and alarms Capacity reports (regular, at hock and Exception) SLA and SLR recommendations Costing and Charging recommendations Proactive changes and service improvements Revised operational schedule Effectiveness reviews Audit reports

Recovery Types Do nothing - Few, if any, organisations can function effectively without IT Services. Even if there is a requirement for stand-alone PC processing, there is still a need for recovery to be supported. Manual Work-arounds - manual Work-arounds can be an effective interim measure until the IT Service is resumed wherever they are practical and possible. Reciprocal arrangements - Entering into an agreement with another organisation using similar technology. Benefits can exist, in maintaining some reciprocal arrangements, for example, in the off-site storage of backups and other critical information. Gradual Recovery (cold standby) - up to 72 hours, without a re-establishment of full IT facilities. Accommodation fully equipped with power and local network cabling Infrastructure, telecom connections. Fixed or portable facility. When opting for a gradual recovery, consideration must be given to highly customised items of hardware or equipment that will be difficult, if not impossible, to replace. Intermediate Recovery (warm standby) 24 to 72 hour period. It is usually far away (logistics) and shared with 20 to 30 other companies. Use 6-12 weeks. Can be portable, in a trailer. Immediate Recovery (hot standby) provides for immediate restoration. Application systems and communications already available and data mirrored from the operational servers. In the event of a system failure, the Customers can immediately switch to the backup facility with little or no loss of service. System can be used as backup and reporting resource.

Pricing Method/Policy Cost Plus – cost + profit rate Going Rate – comparable to other dept services Market Price – match external supplier price Negotiated Contract Price

ACTIVITIES Monitoring Analysis Tuning Implementation Storage of Capacity Management data – the CDB Demand Management Modeling Application sizing Producing of the capacity Plan

OUTPUTS Availability and recovery design criteria Agreed targets of availability, rel., maintainability Reports on achieved A.R.M Availability monitoring Availability improvements plans

Service Level Management BENEFITS Customer and IT service provider have a clearer view of requirements and responsibilities Commitment on both sides Specific targets to aim for Week areas will be identified Supports supplier management (internal and external) Demonstrable performance indicators Gradual improvements in service quality Better forward planning / both customers and IT Will show where customer/user actions are causing difficulty and identify where working practice need to be improved IT service will be defined to meet Service Level Requirements SLAs can be used as a basis for charging Improved communication between IT and customers Better value for money

Financial Management for IT services BENEFITS Increased Confidence in budgets Accurate information supplied for investment and TCO purposes Increased professionalism and efficiency Warning over or under usage of service Sound business method of balancing IT service provision with business requirements The cost of doing or not doing a Change

Capacity Management BENEFITS Minimize risk of failing to meet SLAs and SLRs More confident forecasting Value to the applications lifecycle Increased efficiency Cost savings and cost avoidance Timely enhancements and upgrades

IT Service Continuity Management BENEFITS The annual spend on ITSM can be controlled Cost justifiable risk reduction measures can be implemented The ability to recover in a controlled manner All staff aware of their role relating to ITSCM Potential lower insurance premiums Meetings regulatory requirements Better business relationships Positive marketing of contingency capabilities Organizational credibility Competitive advantage

Availability Management BENEFITS A single point of accountability for availability is established within the organization IT Services are designed to meet the IT Availability requirements of the business the levels of IT Availability provided are cost justified the levels of Availability required are agreed, measured and monitored to fully support Service Level Management shortfalls in the provision of the required levels of Availability are recognised and appropriate corrective actions identified and implemented a business and User perspective of IT Service Availability is taken to ensure optimal usage and performance of the IT Infrastructure is achieved to deliver maximum benefit the frequency and duration of IT Service failures is reduced over time IT support organisation mindset moves from error correction to service enhancement; from reactive to proactive attitude the IT support organisation is seen to 'add value' to the business.

PROBLEMS ensuring targets are achievable (use existing achievements if known) verifying targets prior to agreement (prior monitoring, pilot SLAs) Monitoring of actual achievement (only agree what can be monitored) Inadequate resources and time (process must be properly staffed and resourced Lack of understanding (educations) Differences in perceptions within the customer community (need to agree relevant targets at all levels) Not enough seniority (give Service Level Manager the appropriate authority) SLA may not be supported by adequate underpinning agreements/contracts (review OLAs and contracts) KEY PERFORMANCE INDICATORS what number or percentage of Services are covered by SLAs are Underpinning contracts and OLAs in place for all SLAs and for what percentage? are SLAs being monitored and are regular reports being produced? are review meetings being held on time and correctly minuted? is there documentary evidence that issues raised at reviews are being followed up and resolved (e.g. via an SIP) what number or percentage of Service targets are being met and what is the number and severity of service breaches? are service breaches being followed up effectively? are service level achievements improving are Customer perception statistics improving? are IT costs decreasing for services with stable (acceptable but not improving) service level achievements? are SLAs, OLAs and underpinning contracts current and what percentage are in need of review and update? CRITICAL SUCCESS FACTORS Meeting Customer Needs And Priorities Adherence To Service Levels Providing Services Cost Effectively Controlling Service Delivery Maintaining Recognized Industry Acceptance For IT Quality Maintaining An IT Service Culture

PROBLEMS Lack of understanding leading to inefficient, overlay expensive or over-complex systems Monitoring tools inaccurate or too expensive Delay in obtaining, or inaccurate, information Difficulty in recruiting staff with accountancy and IT skills Unable to respond to changes quickly enough Lack of management understanding and support

PROBLEMS Unrealistic expectations Vendor influence Lack of accurate information - business data - technical data Distributed environments Level of monitoring to be implemented

Contingency Plan IT infrastructure, comprising the replacement system, plus contracts/agreements necessary for recovery IT Infrastructure Management and operating agreements/procedures during a disaster Personnel - details of those needed at contingency site plus accommodation required Security instructions, emergency contacts and items for home site Contingency site: location, people, facilities, security and transport arrangements Return to normal - dependencies affecting the return

PROBLEMS Defining availability levels that are meaningful to the business Managing internal and external providers is made difficult by lack of agreed availability targets Assessing achievable and cost-effective levels of IT service availability New services are implemented without full consideration of availability requirements Loss of business and reputation due to unstable IT services Lack of accountability

KEY PERFORMANCE INDICATORS Overall cost of delivery per customer Percentage of IT costs not accounted for Dollar value of budget variances/adjustments Percentage of IT financial objectives met IT Service Headcount

KEY PERFORMANCE INDICATORS Resource forecasts - timely production of forecasts - accurate forecasts if trends in resource util. - incorporation of business plans into cap. plan Technology - ability to monitor perf and troughput - impl. Of new tech. in line with business requirements (time cost functionality) - use of old technology does not result in breached SLa due to problems Cost effectiveness - a reduction in panic buying - not significant over-capacity - accurate forecasts of planned expenditure Plan and implement the appropriate IT capacity to match business needs - reduction in lost reduction in the incidents due to poor performance - reduction in lost business due to inadequate capacity - new services are implemented which match SLR -recommendation made by capacity mgt. are acted upon

KEY PERFORMANCE INDICATORS Percentage of Vital Business Functions covered by IT Service Continuity Plans Percentage of Vital Business Functions covered by annual IT Continuity tests Number of annual IT Service Continuity Plan testing failures Number of 3rd party recovery support contracts not agreed Number of audits performed on IT Service Continuity Plan Number of business issues logged against IT Service Continuity.

DEFINITIONS Availability – Ability of an IT Service or CI to perform its required function at a stated instant or over a stated period of time Reliability – freedom from operational failure. Rel. of an IT service is determined by rel. of each component delivering the service. Maintainability – ability of a CI to be kept in, or to be restored to an operational state. Serviceability – describes contractual arrangements made with 3rd party IT service providers to assure Avail., Rel. and Maintainability. of IT services and their CIs. Resilience – capacity of an IT service to allow continued operation of IT despite the failure of one or more sub-systems. Vital Business Function – business critical element of business process. Security – deals with confidentiality, integrity and availability of data. AMDB – record & store info reqd. for support of key activities: reporting, analysis and availability forecasting... Service Window – period in which maintenance can be completed on a service

CRITICAL SUCCESS FACTORS Effective stewardship over IT finances Establishing Process Planning Implementation Operational Managing change Managing variances

CRITICAL SUCCESS FACTORS Accurate business forecasts knowledge of IT strategy and plans, and that the plans are accurate an understanding of current and future technologies an ability to demonstrate cost effectiveness interaction with other effective Service Management processes an ability to plan and implement the appropriate IT Capacity to match business need

CRITICAL SUCCESS FACTORS Ensuring IT Service Recovery Within Agreed Timescales

CRITICAL SUCCESS FACTORS

Service Level Management RESPONSIBILITIES SLMgr creates and maintains a catalogue of existing Services formulates, agrees and maintains an appropriate SLM structure (SLA, OLA, Contracts, accommodating service improvement plan within SLM) negotiates, agrees and maintains the Service Level Agreements with the Customer negotiates, agrees and maintains the Operational Level Agreements with the IT provider negotiates and agrees with both the Customer and IT Provider any Service Level Requirements for any proposed new/developing services analyses and reviews service performance against the SLAs and OLAs produces regular reports on service performance and achievement organizes and maintains the regular Service Level review process initiates any actions required to maintain or improve service levels conducts annual (as appropriate) reviews of the entire Service Level process and negotiates, agrees and controls any amendments necessary acts as co-ordination point for any temporary Changes to service levels required

Financial Management for IT services RESPONSIBILITIES Budgeting: manage the IT organisation budget prepare budget forecasts and assist Customers in preparing IT elements of their budgets report regularly to IT managers and Customers on conformance to budgets Accounting: select suitable tools and processes for gathering Cost data develop suitable cost models agree suitable IT Accounting policies, e.g. Depreciation assist in developing cost-benefit cases for IT investments advise senior management on the cost-effectiveness of IT solutions Charging: identify methods of charging within the organisations charging policy provide justifications and comparisons for charges prepare regular bills for Customers prepare a price list of Services, if required

SMART: Specific- Measurable- Achievable- Realistic Time based SLA STRUCTURES Customer Based – With a customer group Service Based – For customers of a service (e-mail) Multi-Level SLAs Corporate Level – cover generic SLM issues Customer Level

INTERFACES CfgM: - manages assets and cost information SLM : - cost provision impacts service..; - Supplied with cost of meeting current and new requirements CM, AM: - Supplied with cost of meeting cap. and avail. - some data shared – e.g. Machine data sharing

Service Level Meeting Customer Needs and Priorities: Customer satisfaction score/rating ; Average time to implement SLA requests ; Number of SLAs in renegotiation ; Number of SLAs requiring changes (targets not attainable, etc.) ; Number of SLA issues logged Adherence To Service Levels: Number of SLA targets missed ; Number of SLA targets threatened Providing Services Cost Effectively: Current cost per customer for delivery of services ; Percentage improvement in delivery cost per customer Controlling Service Delivery: Number of OLA issues logged ; Number of Underpinning Contract issues logged Maintaining Recognized Industry Acceptance For IT Quality: Number of ITs articles/white papers published ; Percentage IT Operations staff in industry (i.e; itSMF) programs ; Percentage progress towards industry certification (i.e; ISO9000) ; Dollars spent on external communications activities Maintaining an IT Service Culture: Percentage of IT Operations staff ITIL-aware ; Number of IT Operations staff ITIL certified ; Number of IT Operations staff with advanced ITIL certification ; Number Of Agreed SLAs Not Supported By OLAs/UCs SLA Content General details Service hours Roles and responsibilities Availability, Reliability, Maintainability & Serviceability Service Performance Customer Support Example incident targets Printing IT Service Continuity Security Change management Procedures Charging Quality / Customer perception Administration (Reporting, service reviews,..)

Cost types: Hardware, Software, Employment, Accommodation, External services and Transfer Cost Elements: Breakdown of cost types (HW/ server/ NT/ HR server…)

ELEMENTS of fin. management Budgeting Accounting Charging Fin Management Cycle Planning annual: Budgeting (agree overall expenditure) IT Accounting (Establish standard unit cost for each IT resource) Charging (Establish Pricing policy, Publish price list) Operational monthly: Budgeting (take actions to manage budget expectations or charged costs) IT Accounting (Monitor Expenditure by cost-centre) Charging (Compile and issue bills)

Capacity Management RESPONSIBILITIES ensures that appropriate levels of monitoring of resources and system performance are set, and that the information recorded in a CBD is kept up-to-date and used by all parts of the Capacity Management process produces Capacity Plans in line with the organisation's business planning cycle, identifying Capacity requirements early enough to take account of procurement lead times documents the need for any increase or reduction in hardware based on SLRs and cost constraints produces regular management reports which include current usage of resources, trends and forecasts sizes all proposed new systems to determine the computer and network resources required, to determine hardware utilisation, performance service levels and cost implications recommends resolutions to performance-related Incidents and Problems recommends to IT management when to employ Demand Management, to dampen Customer demands on systems carries out ad-hoc performance and Capacity studies on request from IT management is represented on the CAB, assessing and authorising Changes ensures that regular and ad hoc audits are carried out on the Capacity Management process INTERFACES IM- scripts for diagnostics - performance counters PM- scripts for diagnostics - performance counters ChM- assist in CAB assessing business impact - raise RFC if needed RM- helps with distribution strategy (network bandwidth,..) - after distribution capacity audits CfgM- gets information about CIs - stores capacity information in CMDB SLM - Perf. And capacity targets - assist SLM drafting OLAs FM - cost summary as part of capacity plan - resource utilization basis for charging ITSCM - capacity needed for recovery options used - maintain ITSCM capacity requirements in line with production AM - Share common goal slow performance is effectively the same as unavailability

IT Service Continuity Management RESPONSIBILITIES ITSC Manager Develop and manage the ITSCM Plan to ensure that, at all times, the recovery objectives of the business can be achieved. Ensure that all IT Service areas are prepared and able to respond to an Invocation of the Continuity plans. Maintain a comprehensive IT testing schedule. Undertake quality reviews of all procedures and ensure that these are incorporated into the testing schedule. Communicate and maintain awareness of ITSCM objectives within the business areas supported and IT Service areas. Undertake regular reviews, at least annually, of the Continuity plans with the business areas to ensure that they accurately reflect the Business processing Environment. Negotiate and manage contracts with providers of third party recovery services. Manage the IT Service delivery during times of crisis including: o Co-ordination with the crisis control team o Invocation of the appropriate recovery facilities o Resource management, direction and arbitration o Recovery site management.

Availability Management RESPONSIBILITIES (A. Manager) to be accountable for the deployment of the AM process and associated methods and techniques to be responsible for ensuring the AM process is regularly reviewed and audited, and that all of these are subject to cont. improvement and remain fit for purpose to be responsible for determining the Av. requirements from the business for new or enhanced IT Services to be responsible for the creation of A and recovery design criteria to be applied to new or enhanced Infrastructure design to be responsible for ensuring the levels of IT A. required are cost justified defining the targets of A. required for the IT Infrastructure and its components that underpin a new or enhanced IT Service as the basis for an SLA establishment of measures and reporting that reflect business, User and IT support org. requirements responsible for the monitoring of actual IT A. achieved vs targets and to ensure shortfalls are addressed to be responsible for the production and maintenance of an A. Plan which prioritises and plans IT A. improvements to promote AM awareness and understanding within the IT support organisation to maintain an awareness of technology advancements and IT best practice, e.g. ITIL.

INTERFACES SD, IM, PM - Provides historical data - Customer liaison ChM - Ensures the on-going accuracy of continuity plans CfgM - Identifies the core infrastructure

INTERFACES ChM - Input from AM is details of the planed maintenance regime - input to AM is schedule of planned maintenance activities SLM - provide information what is availability of the system for SLA - SLR provide availability requirements FM - input to FM is cost of nonavailability - output from FM cost associated with proposed upgrades to the infrastructure ITSCM - output from ITSCM is business impact assessment - Input from AM is the availability and design criteria tom maintain “business as usual” by preventing or minimizing impact of failure by use CFIA CM - input from AM is completed CFIA - input from CM is capacity plan

SLM - understands the obligations of IT service provision FM CM - ensure business requirements are fully supported trough the appropriate IT hardware resources AM - delivers risk reduction measures to maintain business-as-usual

AM methods and techniques Redundancy and resilience Component Failure Impact analysis (CFIA) Fault tree Analysis (FTA) CCTA Risk Analysis & Management Method (CRAMM) Service Outage Analysis (SOA) Technical Observation Post (TOP) Incident Lifecycle Management Continuous Improvements

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