Introduction to ITIL® Foundation Course

Unit 1—Introduction to Service Management Lifecycle

Based on AXELOS ITIL® material. Material is reproduced under licence from AXELOS.

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 Introduction to Service Management Lifecycle
Lesson 1—Principles of IT Service Management

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Objectives

After completing ● Identify best practices in IT Service Management

this lesson, you will
● Identify the stakeholders in service management
be able to:
● Describe roles and responsibilities in service management
● Explain the types of service providers

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IT Service Management—Best Practices

IT Service Management is the implementation and management of

quality IT services that meet the needs of a business. The sources for
best practices include the following:

● Existing public standards published by the International

Organization for Standardization or ISO

● Industry practices shared among industry practitioners

● Academic research

● Internal experiences or an organisation’s past experiences in

providing similar services

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Public and Proprietary Practices

The table provides a comparison between public and proprietary practices:

Public practices Proprietary practices

Widely distributed through public training and Deeply embedded in organisations
certification
Applied across various technologies and Highly customised to serve specific business
businesses needs
Available for free Owners expect compensation

Organisations can easily hire people with the The evolution of such practices depends on the
knowledge of such practices owner and cannot be guaranteed

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Service—Introduction

Service is a means of delivering value to customers by facilitating outcomes the customers want to
achieve, without the ownership of specific costs or risks.
Customer—Online bookstore
Data Storage

Value added by Service Provider

• Performs tasks
• Manages risks and constraints
• Optimises costs
Transfers the
responsibility to
manage risks and
costs of Data storage

Service provider—Database solutions

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Challenges in Service Management

The challenges in service management are as follows:

● The nature of output is intangible.
● The output is hard to control, measure and validate.
● Demand is associated with customer assets.
● There is only a small buffer between the creation of a
service and its consumption.
● Service capacity and output are perishable by nature.

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Benefits of IT Service Management

The benefits of IT Service Management are as follows:

Service delivery is of high quality.

Service quality is cost-effective.

The service satisfies the customer, user and business demands

The processes are centralised and integrated.

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Stakeholders in Service Management

Stakeholders are entities interested in the outcome of a service or a project. Stakeholders can be the
following:

Organisation Internal stakeholders External stakeholders

Organisation refers to a legal entity, a company or an institution comprised of resources, people

and budgets.

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Internal and External Customers

There are two types of customers for any organisation, they are:

Internal customers External customers

● They work in the same organisation.
● Example: The marketing department in an
IT company is its internal customer
because payment made for IT services
used is considered as an internal
transaction in the company’s accounting
system.
● They purchase services from the service
provider under a legal contract, and are
not employed by the organisation.
● Example: An online book seller receiving IT
services from an IT service provider is an
external customer.

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Internal and External Services

Internal and external services are defined

below:
● Services delivered to business units within
the same organisation are termed internal
services.
● Services delivered to an external
organisation are called external services.

Internal service: The sales

department is an internal customer
using the CRM services provided by
the IT department. Copyright © AXELOS Limited 2011. All rights reserved. Material is reproduced under
licence from AXELOS.

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Process and its Characteristics

A process is a set of activities designed to accomplish a specific objective. It takes defined inputs and
turns them into defined outputs. It may include roles, responsibilities, tools and management
controls required to deliver the outputs.

A process can be measured.

A process leads to a specific result for stakeholders and customers.

A process responds to triggers or events.

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Functions Related to Service Management

Functions consist of a team of

people and the tools required to
carry out processes or activities.
The image on the right lists the
functions related to service
management.

Copyright © AXELOS Limited 2011. All rights reserved. Material is reproduced under licence from
AXELOS.

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Functions Related to Service Management (contd.)

Functions defined by ITIL® 2011 are:

Technical IT Operations Application

Service Desk
Management Management Management

Single point of Aims at designing Includes Helps to manage

contact where a cost-effective continuous applications for
business sends technological activities related to their entire
operational infrastructures IT service delivery lifecycle and plays
requests such as, that can support and has two roles: a key role in
requests for business processes operations control designing, testing
relocations or and facility and improving
installation orders management applications

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Roles in Service Management

Two key roles in Service Management are Service Owner and Process Owner.

Service Owner Process Owner

Service Owner is the person The Process Owner is

who is accountable for the responsible for ensuring that a
delivery of a specific IT service process is being performed as
and also for continual agreed and documented.
improvement and management
of change affecting services
under their care.

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Service Owner—Responsibilities

Responsibilities of the service owner are as follows:

● Handles service enquiries and issues

● Identifies opportunities for service requirements

● Maintains the link with the process owners

● Solicits the reports, statistics and other data required for analysis

● Ensures effective service monitoring and performance

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Process Owner—Responsibilities

The process owner performs the following tasks:

● Documents and publishes the process
● Defines the key performance indicators or KPIs
● Participates in process design and takes responsibility for it
● Reviews any proposed enhancement to the process
● Addresses any issue related to the way the process runs
● Ensures that the staff has the required training in the process and are aware of their roles in it
● Ensures that processes, roles, responsibilities and documents are regularly reviewed and audited
● Interfaces with the line management and ensures that the process has the required number of people

! The process owner may also have to perform the role of Process Manager. The responsibilities of the
process manager include planning and co-ordination of all activities required to carry out, monitor and
report on the process.
There may be several process managers for one process. In larger organisations, the roles of Process
Manager and Process Owner may be separate.

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RACI Model

The RACI model is used to identify the following roles and responsibilities in a process:

People or person responsible for carrying out various tasks

Responsible

Individual taking ownership and being accountable for various

Accountable activities

People whose opinions are sought after designing, implementing

Consulted
or improving an activity

People who are informed while executing or improving an activity

Informed

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RACI Model (contd.)

The table shows the RACI model based on the roles and responsibilities related to activities in a
process.

Service Process Security IT Chief Process

Activities
Owner Owner Manager Head Architect Manager

Create a framework for defining IT services C C C A/R C I

Build an IT service catalogue C A/R I C I I

Define SLA for critical IT services A R C R C I
Monitor and report SL performance I A/R I I I R
Review SLAs, OLAs and UCs A R C R I R
Review and update IT service catalogue C A/R I C I C
Create a service improvement plan I A/R I C C R

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Types of Service Providers

According to ITIL®, an IT service provider is an organisation supplying IT services to one or more

internal or external customers. ITIL ® defines three types of service providers:
Type I or Internal Service Type II or Shared Service Type III or External Service
Provider Provider Provider

● Refers to a service ● Refers to an internal ● Refers to an external

provider embedded
within a business unit
● Example: An IT
organisation within each
business unit
service provider that
offers shared IT services
to multiple business
units ● Example: An IT service
● Example: A telecom
company’s IT services
team offering services to
the mobile and landline
phone units of the same
company
service provider that
offers IT services to
external customers
provider in India,
offering outsourcing
services to a global bank

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Supplier and Contracts

Three key terms associated with IT Service Management are given below:

Supplier This is the third party responsible for supplying goods or services required to
deliver IT services.

Underpinning It is a legal agreement between the service provider and the supplier.
contract (UC)

Service Level The agreement between the business organisation and the IT service provider
Agreement (SLA) is called SLA.

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Summary

Here is a quick ● Best practices are successful innovations that have been accepted and
recap of what we
followed by organisations.
have learnt in this
lesson: ● Service management helps to transform IT resources into valuable IT
services.
● Stakeholders are interested in the target, resources, activities and outcome
of a service or a project.
● The service owner is responsible for providing a specific service within an
organisation. The process owner ensures that a process is performed as
decided and documented.

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