Service Management ITIL

Service Design
Univ.-Prof. Dr.-Ing. Wolfgang Maass
Chair in Economics Information and Service Systems (ISS)
Saarland University, Saarbrcken, Germany
WS 2011/2012
Thursdays, 8:00 10:00 a.m.
Room HS 024, B4 1

General Agenda
1. Introduction
2. Service Strategy
3. New Service Development (NSD)

4. Service Quality
5. Supporting Facility
6. Forecasting Demand for Services
7. Managing Demand
8. Managing Capacity
9. Managing Queues
10. Capacity Planning and Queuing Models
11. Services and Information Systems
12. ITIL Service Design
13. IT Service Infrastructures
14. Summary and Outlook

Univ.-Prof. Dr.-Ing. Wolfgang Maass

25.01.12

Slide 2

ITIL Service Lifecycle (ITIL V3)

Today

Service Design
Last
lecture

Design of new or changed services

for introduction into live
environment
G u i d a n c e f o r d e s i g n i n g a n d
developing services
Converting strategic objectives
into service portfolios and service
assets; or improve existing services
Development of design capabilities
for service management

(OGC, 2011)
Univ.-Prof. Dr.-Ing. Wolfgang Maass

25.01.12

Slide 3

Service Composition

Univ.-Prof. Dr.-Ing. Wolfgang Maass

25.01.12

Slide 4

ITIL Service Design

Input

Key processes in ITIL

Service Design

Output

Design coordination
Design of
service
solution

(Providing and maintaining

single point of coordination
and control of all design
activities)

Service catalogue
management
Service level
management
Availability
management
Capacity management
IT service continuity
management
Information security
management
Supplier management

Key
service
design
processes
(OGC, 2011)
Univ.-Prof. Dr.-Ing. Wolfgang Maass

25.01.12

Slide 5

Service Design 2. Service Catalogue

Management

Purpose

Providing and maintaining a single source of consistent information on all operational services
(service catalogue) and those being prepared to be run operationally
Gaining common understanding of IT services of service provider between diverse stakeholders
Contribution to definition of services and service packages and specification of interfaces and
dependencies between service catalogue and service portfolio

Definition of services and service

packages
Types of services in service
catalogue
a) Customer-facing services
support customers business
(seen by customer)
b) Supporting services support
customer-facing services (not
seen by customer); also called
infrastructure or technical
services
(OGC, 2011)

Service package of customer ii

SLA = Service Level Agreement

between service provider and
customer (assures level of
service quality (warranty))
Univ.-Prof. Dr.-Ing. Wolfgang Maass

25.01.12

Slide 6

Service Design 2. Service Catalogue

Management

Structuring service catalogue

Depends on audiences to be addressed

views for diverse audiences
Minimum: 2 different views (1) business/
customer, and (2) technical / supporting service
catalogue view
Further opportunity: 3 views, e.g., (1)
wholesale, (2) retail, and (3) supporting service
catalogue view
Service catalogue example

Customers
(understand
portfolio of service
provider)

Used by
Staff members

Users
(which services are
available; how to place
service requests)

(how supporting
services and service
provider assets
support business
activity)
Univ.-Prof. Dr.-Ing. Wolfgang Maass

25.01.12

(OGC, 2011)
Slide 7

Service Design 3. Service Level

Management

Purpose

Agreeing on and documenting service level targets and

responsibilities within SLAs and Service Level Requirements
(SLR) for every service and related activity
Service level targets have to be appropriate and reflect
requirements of business

Designing SLA Frameworks

Operational Level Agreement (OLA) =

agreement between IT service provider and part
of same organization that supports delivery of
services, e.g., facility department (OLA targets
underpin those of SLA)
Underpinning contracts = contracts with
external partners/suppliers
Types of SLAs:
a) Service-based SLAs covering 1 service
b) Customer-based SLAs covering all services of
individual customer group

Multi-level SLAs: (1) corporate level with generic SLM issues; (2) customer
level with customer-/business-unit-specific SLM issues; (3) service level with
service-specific SLM issues with regard to customer
Univ.-Prof. Dr.-Ing. Wolfgang Maass

25.01.12

Service Level Management

(SLM)
Designing SLA Frameworks
Determining, documenting and
agreeing requirements for new
services / Producing SLRs
Negotiating, documenting and
agreeing SLAs for operational
services
Monitoring service performance
against SLA
Producing service reports
Conducting service reviews
instigating improvements within
overall service improvement
plan
Collating, measuring and
improving customer satisfaction
Review and revise SLAs and
OLAs, underpinning
agreements and service scope
Develop contracts and
relationships
Handling complaints and
(OGC, 2011)
compliments
Slide 8

Service Design 3. Service Level

Management
Determining, documenting and
agreeing requirements for new
services / Producing SLRs
Starts during service strategy phase
Service level requirement (SLR) =
customer requirement for an aspect of
IT service
SLRs used to negotiate service level
targets
SLRs relate primarily to warranty of
service, e.g.,
a)
b)
c)

Monitoring service
performance
against SLA

How available does the service need to be?

How secure?
How quickly must it be restored if it should
fail?

Negotiating, documenting and

agreeing SLAs for operational
services
Targets in SLAs originate from specified
SLRs
Only measurable targets, e.g., 99,5%
availability of service

Producing service
reports
e.g., service level
agreement monitoring
(SLAM) charts

(OGC, 2011)
Univ.-Prof. Dr.-Ing. Wolfgang Maass

25.01.12

Slide 9

Service Design 4. Availability

Management

Availability = ability of service to perform its agreed

function when required

Reliability = how long service can perform agreed function

without interruption -- mean time between service incidents
(MTBSI) and mean time between failures (MTBF)

Maintainability = how quickly and effectively a service can

be restored to normal working after failure (mean time to
restore service (MTRS))

Serviceability = ability of third-party supplier to meet terms

of its contract

Purpose
Ensuring that level of availability
delivered in all IT services meets the
agreed availability needs and service
level targets in cost-effective and timely
manner

Univ.-Prof. Dr.-Ing. Wolfgang Maass

25.01.12

(OGC, 2011)
Slide 10

Brainteaser
A 24 x 7 service has been running for a period of
5020 hours with two breaks, one of six hours and
one of 14 hours.

10
Minutes

Calculate the availability, reliability (mean time

between service incidents and mean time between
failures) and maintainability of the service.
Papers will be collected.

Univ.-Prof. Dr.-Ing. Wolfgang Maass

25.01.12

Slide 11

Service Design 4. Availability

Management
Proactive activities, e.g.,

Reactive activities, e.g.,

Investigating all service and component
unavailability and instigating remedial action

e.g., via expanded incident lifecycle

Minimizing impact of incidents
Mapping of total IT service downtime for any
given incident against major stages of
incident progress (lifecycle)

Planning and designing new or changed services

e.g., component failure impact analysis (CFIA)

Predict/evaluate impact on IT services arising from
component failures
M=alternative component available but needs manual
intervention to be recovered
A=alternative component available
X=failure of component causes inoperative service
blank= failure of component does not impact service

(OGC, 2011)
Univ.-Prof. Dr.-Ing. Wolfgang Maass

25.01.12

Slide 12

ITIL Service Design

Key processes in ITIL Service
Design

Design coordination
Service catalogue management
Service level management
Availability management

Capacity management
(ensures that capacity of IT services / IT
infrastructure meets agreed capacity- and
performance-related requirements in costeffective and timely manner)

IT service continuity management

(ensures that IT provider can always provide
minimum of agreed service levels)

Information security management

(ensures confidentiality, integrity, availability
of organization assets, information, data
etc.)

Supplier management
(OGC, 2011)
Univ.-Prof. Dr.-Ing. Wolfgang Maass

25.01.12

Slide 13

Service Design 8. Supplier

Management
Purpose
Obtain value for money from suppliers to provide seamless quality of IT service to business
Ensuring that all contracts and agreements with suppliers support needs of business
Categorization of suppliers

Strategic suppliers = significant partnering

relationships; managed at senior management level

Tactical suppliers = significant commercial activity

and business interaction; managed at middle
management

e.g., hardware maintenance organization

Operational suppliers = operational products and

services; managed at junior management

e.g., worldwide network organization

e.g., internet hosting service provider

Commodity suppliers = low-value products/services

e.g., supplier of printer paper

(OGC, 2011)
Univ.-Prof. Dr.-Ing. Wolfgang Maass

25.01.12

Slide 14

Real Life Examples

Procter & Gamble

Started using ITIL in 1999
6% to 8% cut on operating costs
Help desk calls reduced by 10%
Caterpillar
Started using ITIL in 2000
Rate of achieving target response time for incident
management on web-related services jumped from
60% to 90%
Capital One
Started using ITIL in 2001
30% reduction in system crashes and softwaredistribution errors
92% reduction in business-critical incidents
Univ.-Prof. Dr.-Ing. Wolfgang Maass

25.01.12

(Kaiser, 2007)
Slide 15

Critique

Assumption: Many IT enterprises are looking for a magic bullet to end their IT chaos
- But: Success with ITIL is largely dependent on determining how best, and when, to apply the processes
in the IT organization

Assumption: Often claimed "ITIL compliance" gives false impression that ITIL is an IT standard
- But: ITIL is a set of best practices; ISO 20000 is an international standard based on ITIL

Assumption: Interactive and integrative nature of ITIL processes implies the entire framework
has to be implemented in an all or nothing manner
- But: Many organizations benefit from implementing only one or two ITIL processes such as change
management or incident management

Assumption: ITIL consists of a series of books that describe best practices in IT service areas
an can be implemented out of the book
- But: ITIL provides WHAT to do, not HOW to do it; it is not an instructional manual for IT leaders to
improve IT services and operations
(Khan, 2008)
Univ.-Prof. Dr.-Ing. Wolfgang Maass

25.01.12

Slide 16

A Handful of IT Service Management

Frameworks
Control OBjectives for Information and related
Technology (COBIT)

Governance and control framework for IT

management by ISACA and IT Governance Institute;
current version: COBIT 4.1 (2007)
Defines 34 generic processes to manage IT
Publications: Core Content, IT Assurance Guide,
Implementation Guide and Control Practices
Relation to ITIL:

COBIT is positioned at higher level

Aligned and harmonized with other, more detailed, IT
standards and good practices such as ITIL

Univ.-Prof. Dr.-Ing. Wolfgang Maass

25.01.12

Slide 17

A Handful of IT Service Management

Frameworks
enhanced Telecom Operations Map (eTOM)

Published by TeleManagement Forum

Defines most widely used and accepted standard for
business processes in telecommunications
industry
Relation to ITIL:

eTOM seen as addition to ITIL

Contrary to ITIL, eTOM offers data model for each
detailed process because telecommunication
companies often need to interchange data -- focus on
delivery of transparent services throughout several
companies

Vendor frameworks based on ITIL

e.g., MS Operations Framework (MOF) as basis of

MS System Center Service Manager [1]
e.g., HP ITSM services based on ITIL [2]
Univ.-Prof. Dr.-Ing. Wolfgang Maass

25.01.12

Slide 18

Outlook
1. Introduction
2. Service Strategy
3. New Service Development (NSD)

4. Service Quality
5. Supporting Facility
6. Forecasting Demand for Services
7. Managing Demand
8. Managing Capacity
9. Managing Queues
10. Capacity Planning and Queuing Models
11. Services and Information Systems
12. ITIL Service Design
13. IT Service Infrastructures
14. Summary and Outlook
Univ.-Prof. Dr.-Ing. Wolfgang Maass

25.01.12

Slide 19

Literature

Kaiser, T. "ITIL: What is it? Why you should use it? How to use it?", PPT, 2007.
Khan, I. A. "Myths and Realities about ITIL", PPT, 2008.
Office of Government Commerce (OGC), ITIL Service Design, The Stationery Office (TSO), London, 2011.
Spaulding, G. "Whats New in ITIL v3", PPT, 2007.

Web:

[1] http://www.microsoft.com/germany/technet/datenbank/articles/495298.mspx
[2] http://www8.hp.com/de/de/services/services-detail.html?compURI=tcm:144-809129&pageTitle=ITSMServices?404m=rt404mb,newcclltow1en#

Univ.-Prof. Dr.-Ing. Wolfgang Maass

25.01.12

Slide 20

Univ.-Prof. Dr.-Ing. Wolfgang Maass

Chair in Information and Service Systems
Saarland University, Germany

Univ.-Prof. Dr.-Ing. Wolfgang Maass