ITIL:

What is it?
Why you should use it?
How to use it?
Tampa Bay Technology
Leadership Association

August 9, 2007

T.C. Kaiser
Senior Customer Solution Architect
CA, Inc.

Agenda
1. The Big Picture
2. The IT Infrastructure Library Definition, History, etc.
3. IT Service Management
4. ITIL v2 Service Support and Service Delivery
5. ITIL v3 The Service Lifecycle
6. The Benefits of ITSM
7. Real World Examples
8. Implementing ITIL Recommendations, What Not to Do
9. Q&A
2 August 9, 2007

Obstacles Prevent
Effective Engagement

Overwhelming Demand:
Unstructured capture of requests and ideas
No formal process for prioritization and
trade-offs
Reactive vs. proactive

IT Seen as Black Box:

Business lacks visibility
Poor customer satisfaction

3 August 9, 2007

Disparate Systems
Reduce Efficiency

No Single System of Record

for Decision Making

Relevant Metrics
Hard to Obtain
Disparate Systems Costly
to Maintain and Upgrade

4 August 9, 2007

IT Governance Landscape

5 August 9, 2007

What is the
Information
Technology
Infrastructure
Library (ITIL)?
History and
Definitions

What is the IT Infrastructure Library?

The IT Infrastructure Library (ITIL) is the most widely accepted
approach to IT service management in the world. ITIL is a cohesive
best practice framework, drawn from the public and private sectors
internationally. It describes the organisation of IT resources to
deliver business value, and documents processes, functions and
roles in IT Service Management (ITSM).
Source: UK Office of Government Commerce

> ITIL is the basis of the worldwide standard for quality IT

Service Management, ISO 20000
> ITIL was developed by the public and private sectors and
globally adopted.
> ITIL is in the public domain.

7 August 9, 2007

The History of ITIL

1980s
British government determined that the level of IT service quality they received
was not sufficient. The Central Computer and Telecommunications Agency
(CCTA) was assigned to develop a framework for efficient and financially
responsible use of IT resources. This was a joint effort between the
government and private sector experts.
2000
The CCTA merged into the Office for Government Commerce (OGC). Microsoft
used ITIL as the basis to develop the Microsoft Operations Framework (MOF).
2001
Version 2 of ITIL is released. The Service Support and Service Delivery books
were redeveloped.
2007
Version 3 of ITIL is released which adopts a lifecycle approach to Service
Management with a better emphasis on IT-Business integration

8 August 9, 2007

IT Service Management
> IT Service Management is concerned with delivering and
supporting IT services that are appropriate to the business
requirements of an organization. This improves efficiency and
effectiveness and reduces the risks of managing IT services.
> Services are a means of delivering value to customers by
facilitating outcomes customers want to achieve without the
ownership of specific costs and risks. Outcomes are possible
from the performance of tasks and are limited by the presence
of certain constraints

9 August 9, 2007

What is a Service?

Source: OGC ITIL Refresh: Vendor pre-release briefing, May 2007

10 August 9, 2007

Anatomy of a Service (technical view)

SAP

PSFT
Siebe
l
Network

Load
Balancer

Firewall

Router

Switch

Porta
l

Mainfram
e
Database

Web
Servers

Applications

Web
Services
Identity
Manage
r

Database
s

3rd Party
Application
s

11 August 9, 2007

ITIL Service Management (v2)

Service Management is the best known and most mature aspect of
ITIL. It is comprised of two volumes: Service Support and Service
Delivery.

Service Management

Service Support
Service Desk
Incident Management
Problem Management
Configuration Management
Change Management
Release Management

12 August 9, 2007

Service Delivery
Service Level Management
Financial Management
Availability Management
Continuity Management
Capacity Management

Core ITIL v3 Library

Source: Pink Elephant Whats New in ITIL v3, George Spaulding 2007

13 August 9, 2007

ITIL v2 Service Support mapping to v3

ITIL V2 Process

Primary ITIL V3 Book

Change Management

Service Transition

Configuration Management

Service Transition

Incident Management

Service Operation

Problem Management

Service Operation

Release Management

Service Transition

Service Desk

Service Operation

Service Asset and Configuration

Management including the CMDB

Service Transition

Fault Management (ICT Volume)

Service Operation

Knowledge Management
(NEW in the sense of service desk)

Service Transition

14 August 9, 2007

CMBD is part of the Configuration

Management system (CMS)

ITIL v2 Service Delivery mapping to v3

ITIL V2 Process

Primary ITIL V3 Book

Financial Management

Service Strategies

Availability Management

Service Design

Capacity Management

Service Design

IT Service Continuity Management

Service Design
Referenced in Service Transition, Service
Operation and Continual Service
Improvement

Service Level Management

Service Design

Service Catalogue
Management

Service Design

15 August 9, 2007

ITIL Service Management (v3)

Source: OGC ITIL Refresh: Vendor pre-release briefing, May 2007

16 August 9, 2007

Service Lifecycle

Source: OGC ITIL Refresh: Vendor pre-release briefing, May 2007

17 August 9, 2007

Service Strategy
> Practical Decision making
> Business Eco systems
> From value chains to value nets
> Adaptive processes for customers,
services and strategies
> Linking to external practices and
standards
> Managing uncertainty and complexity
Provides the guidance
on how to design,
develop, and
implement service
management as a
strategic asset.

> Increasing the economic life of services

> Selecting, adapting and tuning the best
IT service strategies

Source: Pink Elephant Whats New in ITIL v3, George Spaulding 2007

18 August 9, 2007

Service Design
> Pragmatic Service Blueprint
> Policies, Architecture, Portfolios,
service models
> Effective technology, process and
measurement design
> Outsource, shared services, co-source
models? How to decide & how to do it

Guides the design

and development of
services and service
management
processes

> The service package of utility,

warranty, capability, metrics tree
> Triggers for re-design

Source: Pink Elephant Whats New in ITIL v3, George Spaulding 2007

19 August 9, 2007

Service Transition
> Managing Change, Risk and Quality
Assurance
> Newly designed Change, Release &
Configuration processes
> Risk and quality assurance of design
> Managing organization & cultural
change during transition
> Service knowledge management
system

Provides guidance for the

development and
> Integrating projects into transition
improvement of
capabilities necessary to
> Creating & selecting transition models
transition new and/or
changed services into
operations
Source: Pink Elephant Whats New in ITIL v3, George Spaulding 2007

20 August 9, 2007

Service Operation
> Responsive, stable services
> Robust end to end operations practices
> Redesigned, incident and problem
processes
> New functions and processes
> Event, technology and request
management
> Influencing strategy, design, transition
Tailors guidance on
achieving effectiveness
and improvement
and efficiency in the
delivery and support of
> SOA, virtualization, adaptive, agile
services such that value is
service operation models
achieved for the
customer and captured by
the service provider
Source: Pink Elephant Whats New in ITIL v3, George Spaulding 2007

21 August 9, 2007

Continual Service Improvement

> Measurements that mean something
and improvements that work
> The business case for ROI
> Getting past just talking about it
> Overall health of ITSM
> Portfolio alignment in real-time with
business needs
> Growth and maturity of SM practice
Sustains the creation
and maintenance of
customer value through
better design,
introduction, and
operation of services

> How to measure, interpret and execute

results

Source: Pink Elephant Whats New in ITIL v3, George Spaulding 2007

22 August 9, 2007

Shifting Focus

Source: Pink Elephant Whats New in ITIL v3, George Spaulding 2007

23 August 9, 2007

Why ITIL?

Why should you

implement processes
based on the ITIL
Framework?

The Case for IT Service Management

> The Business is more and more dependent on IT.
> Complexity of IT constantly increases.
> Customers are demanding more for less.
> Global competitiveness growing at a rapid rate requiring a
more flexible approach to integration.
> Stronger focus on controlling the costs of IT.
> Low customer satisfaction levels.

25 August 9, 2007

Benefits to the Organization

> Improve Resource Utilization
> Be more competitive
> Decrease rework
> Eliminate redundant work
> Improve upon project deliverables and time
> Improve availability, reliability and security of mission critical IT
services
> Justify the cost of service quality
> Provide services that meet business, customer, and user demands
> Integrate central processes
> Document and communicate roles and responsibilities in service
provision
> Learn from previous experience
> Provide demonstrable performance indicators
Source: Pink Elephant The Benefits of ITIL White Paper, March 2006

26 August 9, 2007

Real World Benefits

> Procter & Gamble
Started using ITIL in 1999 and has realized a 6% to 8% cut in operating costs. Another
ITIL project has reduced help desk calls by 10%. In four years, the company reported
overall savings of about $500 million.

> Caterpillar
Embarked on a series of ITIL projects in 2000. After applying ITIL principles, the rate of
achieving the target response time for incident management on Web-related services
jumped from 60% to more than 90%.

> Nationwide Insurance

Implementing key ITIL processes in 2001 led to a 40% reduction of its systems outages.
The company estimates a $4.3 million ROI over the next three years.

> Capital One

An ITIL program that began in 2001 resulted in a 30% reduction in systems crashes and
software-distribution errors, and a 92% reduction in business-critical incidents by 2003.

Source: Pink Elephant The Benefits of ITIL White Paper, March 2006

27 August 9, 2007

Why Implement ITIL

Ultimately IT Service Management is about maximizing the
ability of IT to provide services that are cost-effective and meet
the expectations and needs of the business.
>

Streamline service delivery and support

processes

>

Develop repeatable procedures to aid first

level support groups

>

Reduce number of service incidents and

outages

>

Implement standards to do things right the

first time

>

Perform proactive analysis, prevention and

resolution

>

Plan for and ensure future capacity

>

Define clear services and service targets

>

Accurately allocate and recover costs

>

Audit, manage and improve IT processes

28 August 9, 2007

Reduce Cost of Operations

Improve Service Quality

Improve User Satisfaction

Improve Compliance

The How

ITIL Implementation
Best Practices

ITIL is not a step-by-step process

ITIL Processes can be difficult to implement since ITIL in
it's current form describes the "what" but not the "how"
of IT service delivery. In other words, a lack of
implementation tools and best practices are increasing
costs and timelines related to ITIL implementation.

30 August 9, 2007

Each ITIL Initiative is Unique

Source: OGC ITIL Refresh: Vendor pre-release briefing, May 2007

31 August 9, 2007

What NOT to do
1.

Insufficient Management Buy-in or Budget.

2.

Ignoring the need to market and communicate within & outside IT.

3.

Training internal staff to the Foundation level with the expectation they can
then implement ITIL successfully.

4.

No External Baseline Assessment or adoption of a maturity model to Create a

valid roadmap.

5.

Thinking that technology alone can address the requirement for ITIL i.e.
migrating bad process to new technology so automation is therefore not
efficient enough to address IT needs.

6.

Confusing Process with Procedures.

7.

Not dedicating enough resources to the development effort.

8.

Thinking process development equates to process implementation.

9.

Weak documentation effort leads to inconsistent approach with very little

chance of repeatability amongst IT Staff.

10. Failure to address IT Governance alignment.

32 August 9, 2007

Recommendations
> Create a sense of urgency!
> Decide/Declare Service Management Strategy
> Engage all employees
> Create Communications and Awareness campaigns
> Focus on areas of pain
> Create a Program to transform the organization
> Appoint program sponsors and key players
> Assess, Design, Build and Implement process refinement
> Create an ITSM adoption program with a charter
33 August 9, 2007

Recommendations
> Develop a phased approach, which includes repeatable
and consistent standards for all processes to follow
> Breakdown work into manageable chunks
> Appoint process owners
> Begin remediation process
> Utilize/Establish program management

34 August 9, 2007

Iterative Process

How do we keep the

momentum going?

35 August 9, 2007

What is the vision?

High Level
Objectives

Where are we now?

Assessments

Where do we want
to be?

Measurable
Targets

How do we get
there?

Process
Improvements

How do we check
we got there?

Measurement
And Metrics

Helpful Links
> www.itsmf.net IT Service Management Forum.

Tampa Bay Local Interest Group (LIG) meeting Sept. 22, 2pm.

> www.itsmfusion.com itSMF USA Conference, Sept. 1619, Charlotte, NC.

> www.ogc.gov.uk UK Office of Government and
Commerce.
> www.pinkelephant.com ITSM consulting, events,
education.
> www.exin.org Independent education institute.
> www.itpreneurs.com Training solutions for IT
Management and IT Governance.
36 August 9, 2007

Questions?

For More Information:

T.C. Kaiser
Sr. Customer Solution Architect
CA, Inc.
Thomas.Kaiser@ca.com
813-731-7720 mobile
37 August 9, 2007