Service Catalogue Real World Case Studies October 2010

Presenter: Blaine Bey, I.S.P., ITCP - President, CIPS BC

(BlaineBey@SierraSystems.com)

Agenda
- Organizational Situation Assessment - IT Services and Service Catalogue

- Service Catalogue Principles

- Summary of Real-World Experiences - Service Request / Fulfillment / Recovery - Service Catalogue Project - Current Market Product Assessment
(Additional material contained at end of slide deck)

Organizational Situation Assessment

Canada - France - Hawaii Observatory, Mauna Kea, Hawaii (13,793 ft)

Ensure you understand the big picture to keep things in context

Organizational Situation Assessment

1. To what extent does IT typically offer VIP treatment?
When VIP treatment is commonly offered it makes it more difficult to manage service levels (since they are not scheduled or planned) Complexity generally increases with multiple points of contact for internal and external service providers It can be difficult to define what should be bundled versus what should be atomic

2. How complex are IT services?

3. How well are IT services defined in a manner understood by customers?

Indicates how well we are focusing on the customers view

Organizational Situation Assessment

4. How well understood are the ways by which customers can make requests for service?
The more confusion there is, the more effort is expended on individual service requests The more ways involved, the more difficult it is to standardize Some areas of service require more information from customers than others Approvals help control spending; too many approval levels make it difficult to achieve acceptable service levels

5. What are the different ways we accept service requests?

6. What is required to approve a service request?

Organizational Situation Assessment

7. How busy is a typical IT resource in fulfilling most service requests?
Common for internal IT service providers to be understaffed for the number of service requests they handle

8. To what extent do we currently break down our costs on a service by service basis ?
Direct costs are easier to break down, especially when provided by an external service provider Indirect costs are tougher to break down

IT Services & Service Catalogue

IT Services & Service Catalogue

What is an IT Service?
Services are a means of delivering value to customers by facilitating outcomes customers want to achieve without ownership of specific costs and risks Hint: NOT sales or products Examples:
Messaging Services (e-mail) Workstation Services (desktop / laptop) Business Applications IT Solutions Consulting

IT Services & Service Catalogue

IT Business Service Catalogue Definition
IT Business Service Catalogue is an integration component defining all services provided to the Business by IT Written in business language and includes expected standard level of service Basis to negotiate Service Level Agreements (SLA) and internal IT Operational Level Agreements (OLA) Over arching component used in managing existing IT services and future improvements.

IT Services & Service Catalogue

IT Business Service Catalogue Why Have One?
Communicates how IT can help customers do their jobs. Answering the questions, What does IT do?, and How well does IT do it? (reduce smoke and mirrors effect) Provides a vehicle to realistically set and meet business expectations Helps standardize service delivery and improve service quality through a comprehensive list of service offerings Informs business users consumption choices Lists back office services required to deliver requested IT services

IT Services & Service Catalogue

IT Business / Technical Service Catalogue context
Business Service Catalogue

IT Services

X-Ref

Technical Service Catalogue

Customers

Service Providers

IT Services & Service Catalogue

Business Process #1 Business Process #2 Business Process #3

Business Service Catalogue

Service A

Service B

Service C

Service D

Service E

Service F

Technical Service Catalogue

Electronic Messaging

Support

Hardware

Software

Applications

Data

IT Services & Service Catalogue

Business Process #1 Business Process #2 Business Process #3

Documented IT Services
Service A Service B

Business Service Catalogue

Service C

Service D

Service E

Service F

What do we do? How much do our services cost?

Support Harcware

Technical Service Catalogue

Electronic Messaging

Software

Applications

Data

Technical Service Catalogue

The internal view of IT services Used by IT resources

Business Service Catalogue

The customer view of IT services Used by customers Cross-references to the Technical Service Catalogue

IT Services & Service Catalogue

Business Service Catalogue Value
Clear customer-facing view of IT services available
Accurate Consistent Available to entire organization

Centrally managed

Defines business processes involved

Ordering / Cancelling Service support

Levels & quality of service customers can expect

Service Catalogue Principles

Service Catalogue Principles

Service Strategy
Outcome-based definition of services (i.e. what is valuable to the customer) Service Portfolio Management & Service Catalogue Management

Service Design
Define / Design / Develop new services (associated SLAs & OLAs involved)

Service Transition
Changes to Service Catalogue implemented through Change Management

Service Operation
Service Catalogue is a critical success factor within Request Fulfillment

Continual Service Improvement

Service Catalogue is one input for definition of what should be measured Are the targets identified in the Service Catalogue being met?

Summary of Real-World Experiences

Case Profile: Multiple Federal Government Departments

Objectives:
Streamline delivery of support services and improve client service

Solution:
Consolidation of Service Desks Integrated processes aligned with ITIL: IM, Service Catalogue, Service Request, PM, ChM, CM, RM, SLM Provide application modernization (migrate to Axios assyst) Implement portal / reporting solution

Team Composition:
Project Manager ITSM Business Process Engineer (ITIL V3 Expert) Senior and Intermediate Technical Architect Business Analyst, Tester, Trainer

Technology:
Axios assyst, Oracle Portal, Sharepoint, Crystal Reports, SQL Reporting

Case Profile: Provincial Government

Objectives:
Consolidate multiple service request methods; Recover costs

Solution:

Service Configuration Module Service Request / Configuration Management Systems Custom Service Provider Service Request / Fullfilment Broker Custom Recovery (Billing) Solution Accounts Receivable / General Ledger
Project Manager ERP solution experts Senior Technical Architect Business Analysts, Developers, Testers, Change Management consultants

Team Composition:

Technology:
ERP solution, XML Messaging Broker, Java, Oracle Discoverer

Case Profile: Private Sector

Objectives:
Set scope, approach, and governance of Service Catalogue project covering customers in seven countries (with Service Desks in each country)

Solution:
Service Catalogue Multiple Service Desks aligned with Service Request System

Team Composition:
Project Manager Others to be brought onto team as project progresses

Technology:
Jira (Incident Management) Service Catalogue / Service Request technology yet to be determined (organization is at early stage of Service Catalogue project)

Summary of Real-World Experiences

Vital to shift to the customers view of services Vital to clearly understand the value business wants to get from IT services Define IT services in terms the customer can understand (i.e. NOT technical) Defining what is a service can result in much debate Identification of services is step one. Need to automate provisioning Keep the Business Service Catalogue simple & dont publish anything you cant commit to

Summary of Real-World Experiences

Focus is on services rather than on products Important to provide cost transparency to customers to identify value of IT services Clearly indicate in the Service Definition (in the Service Catalogue):
What customers need to do When they need to do it How long it takes to get a service installed

What information customers need to provide in the service request process

Summary of Real-World Experiences

Vital to have buy-in from a high level of the organization (CEO if possible) to assure success

Dont need to shoot for the ultimate maturity level (there is no value for the cost required to get there)
Design bundled services (e.g. moves) and allow individual atomic services to be ordered as well Strive to have a cookie cutter approach for definition of IT services Defining IT services will require discussion with all IT resources over time. Not defining job descriptions

Summary of Real-World Experiences

A Service Catalogue project is much like any other project and thus requires typical project management activities Services in the Catalogue must be capable of being personalized to the role of the requester (eg visibility) Service Catalogue should allow the user to not just view the definition of a service but provision it Publishing a Business Service Catalogue not a one-time event important to have a Service Catalogue tool to support management of the Service Catalogue

Summary of Real-World Experiences

Service Catalogue should be integrated with ITSM tool or Service Desk tool

Reporting and KPIs measure Services in the Service Catalogue (a level up from technical components under a Service)
Make the publication of the Business Service Catalogue a success for the business not just the project team Service definitions in Service Catalogue (Business & Technical) will help align service support as well as service performance measurement activities

Service Request / Fulfillment / Recovery

Service Request / Fulfillment / Recovery

Service Request Request Fulfillment Service Support

Business Service Catalogue

Service Cost Recovery Technical Service Catalogue Service Forecast / Budgeting

Service Performance Measurement

Service Catalogue Project

Service Catalogue Project

Subset of Service Portfolio Management Project Planning
Single phase Multiple phases

Service Catalogue Project

Service Catalogue Project Single Phase
Plan Service Catalogue Project

Undertake Service Catalogue Project

Roll Out Technical Service Catalogue Roll Out Business Service Catalogue

Continuous Improvement

Service Catalogue Project

Service Catalogue Project Single Phase
Single phase undertaken when
IT services clearly defined and understood by customers Limited as to geographical areas involved Limited number of external service providers

Project duration dependent upon

Number and complexity of services Number of business areas supported. Consider IT resources as the first set of customers

Start with definition of services in Technical Service Catalogue

Roll out Technical Service Catalogue Follow with definition and rollout of Business Service Catalogue

Service Catalogue Project

Service Catalogue Project Multiple Phases
Plan Service Catalogue Project Undertake Service Catalogue Project Phase
Roll Out Service Catalogue / Extensions (Technical / Business)
Project End

Continuous Improvement

Plan Next Phase

Service Catalogue Project

Service Catalogue Project Multiple Phases
Undertake multiple phases to reduce risk / create quick wins

Scope of customers in each phase

Consider IT resources as first set of customers Cover one or more business units in each phase

Business / Technical Service Catalogue scope divided into phases Plan Next Phase
Consider lessons learned in current phase Adjust the overall plan as appropriate

Service Catalogue Project

Service definition considerations (single or multiple phase):
Focus is on services rather than on product (i.e. service delivery not sales) Service Description
Is in business terms (not technical) Features and functionality (in terms of value to customer)

Prerequisites & Service Request approach to follow Related services Service request lead times Service levels offered & hours of operations Costs (one time and ongoing) Cancellation policy Service request approval process Support process involved

Service Catalogue Project

Continuous improvement considerations (single or multiple phase):
Analysis of service levels achieved (reporting on SLAs) Workload assessment of IT resources (planned versus actual) Trend analysis of future increase / decrease of service usage and required capacity for each service Develop service improvement plan

Service Catalogue Project

Organizational Change Management
Appropriate resources in the organization consulted before changes undertaken Communications:
Are well thought out Frequent Consistent Have clear messaging Openness to constructive input (for communication improvement)

Current Market Product Assessment

Full Life-Cycle: Service Request through to Fulfillment

Business User IT

Business Manager

IT Manager

Business User

IT Operations

Self-Service and Service Catalogue

Service Designer

Workflow Engine

Current Market Service Catalogue Product Assessment

Pink Verify for Service Catalogue Mgt, Request Fulfillment and 11 or more ITIL Processes
Axios assyst v9 BMC ITSM Suite 7.0 CA Service Desk Manager R12 HP Service Manager 7.0 Landesk Service Desk v7.3 Service-Now.com Service Cat. Functionality Self-Service Request Mgt Separate Workflow Engine

Forrester Market Overview - ITSM Support Tools Report

Axios assyst v9 addresses all SC functionality

Landesk does not have a SaaS Offering

BMC and Service-Now do not have workflow engines HP workflow engine is a separate product (not SM7) CA Service Catalogue is a separate product (not R12)

Process Automation
Service Catalogue and Builder Self-Service Portal SaaS Offering

Service-Now does not provide on-premise solution

FrontRange does not have Service Cat.Builder and Saas

Current Market Service Catalogue Product Assessment

Good sources for additional information
Forrester Market Overview - IT Service Management Support Tools: Good detailed functionality analysis PinkVerify: Good information. Information does not always reflect the latest version of the products. Includes smaller companies with limited number of proven implementations. Gartner: Contact Gartner analyst and schedule meeting to go over an assessment of these products. Gartner Service Desk Magic Quadrant: Too high level for functionality and ease of implementation assessment. Good for company and market assessment

Butler Group: Provide vendor-specific company and product reviews. Information can be out dated.
Bring the Vendors in to provide you with demos and project references

 Content contributed by
Sierra Ottawa: John Deland (President itSMF Canada), Michel Tourigny, Steve Worth Sierra Victoria: Paulette Barrette, Dave Barnes, Carol Nuernberger Various customers: Service Catalogue project experiences

www.SierraSystems.com
Management Consulting | Project Implementation | Managed Services

Additional Material

Service Request / Fulfillment / Recovery Details

Service Catalogue involvement in the process
Technical Service Catalogue utilized by IT service providers
Internal IT resources External service providers

Business Service Catalogue utilized by customers

Is Web-deployed Service requests created to represent services ordered from the catalogue Downstream processes include the fulfillment of service requests and recovery of costs Remember that IT resources are also customers of IT services

Service Request / Fulfillment / Recovery Details

Service Request / Fulfillment
Business Service Catalogue
Review Services Service Request

Service Request
(Ordering)
Service Request Service Request Approval Operational Management

Customers

X-ref

Technical Service Catalogue

Service Requests
(Orders)
Approved Requests

Review (if required)

Service Providers (Internal)

Service Providers (Internal / External)

Requests / Delivered Services

Service Request Management

Installed Services / Costs

Configuration Management System (CMS)

Service Request / Fulfillment / Recovery Details

Service Request / Fulfillment
Customer selects IT services from the Business Service Catalogue and creates a Service Request Service requests are approved by operational management Service requests may need review by internal service providers before proceeding (some costs may be estimated at this point which would impact the order of the approvals) Approved service requests are passed to internal / external service providers for request fulfillment Services are installed and uniquely identified in CMS
Actual costs may be included (e.g. installation costs) Uniquely identify each installed service

Service Request / Fulfillment / Recovery Details

Service Support
Business Service Catalogue
Review Service Support Requirements Request Support

Customers

Request Service Support

Service Support Request

Technical Service Catalogue

Services / Service Level Info.

Communication (as required)

Service Support Requests

Service Support Requests

Service Support Requests

Service Providers (Internal) Installed Services / Updates

Service Providers (External)

Service Support Requests

Service Desk

Service Support Requests

Service Support Management

Installed Service Info.

Configuration Management System (CMS)

Service Request / Fulfillment / Recovery Details

Service Support
Customers request support based upon the service support requirements identified in the Business Service Catalogue Service providers (internal or external) provide support
Warranty provided for defective products

Service desk communicates with the customer as required

Service Request / Fulfillment / Recovery Details

Service Cost Recovery
Business Service Catalogue
Costs

Configuration Management System (CMS)

Costs

Service Request Management

- Monthly Costs - Annual Costs - One-time Costs

Installed Services / Costs

Service Cost Recovery

Journal Vouchers (Expense)

Financial System (General Ledger)

Costs / Payments

Costs Operational Management

Invoices

Financial System (Accounts Receivable)

Invoices / Payments

Service Request / Fulfillment / Recovery Details

Service Cost Recovery
Costs for each installed service are determined
One-time (installation costs / cancellation fees) Recurring (Monthly / Annual) Consumption based

Costs are expensed in the General Ledger or may optionally be invoiced to customers in Accounts Receivable Operational management can review their IT service costs

Service Request / Fulfillment / Recovery Details

Service Forecast / Budgeting
Business Service Catalogue
Service Info. Service Requests (New / Cancellation)

Operational Management

Service Request / Fulfillment

Service Info.

Technical Service Catalogue

Incl. cancellation prerequisites

Installed Services / Forecast Services

Service Budget / Forecast

Costs

Installed Services

Configuration Management System (CMS)

Financial System (General Ledger)

Service Request / Fulfillment / Recovery Details

Service Forecast / Budgeting
Operational management review the installed services
Services installed under their lines of business Cost of services

A forecast can be provided for the services estimated as being required in an upcoming year A review of the budget in comparison to actual may be done Service requests may be created
To request additional services To request cancellation of services

Service Request / Fulfillment / Recovery Details

Service Performance Measurement
Service Requests
(Orders)
Outstanding / Fulfilled Service Requests

Configuration Management System (CMS)

Installed Services

Service Support Requests

Outstanding / Completed Service Support Requests

Business Service Catalogue Technical Service Catalogue

Service Info.

Service Info.

Service Performance Measurement

Performance Info.

IT Management

Service Request / Fulfillment / Recovery Details

Service Performance Measurement
Performed by IT management KPIs should be:
Meaningful to organization Simple to measure Responsive to change Historical view of costs

Financial view Non-financial view

Transactional processing time Issue / error rate (involving service requests and service fulfillment)