IT SERVICE MANAGEMENT:

ITIL V3 FOUNDATION

BlueprintAudits.com: Where the sky is the limit!

Rev. 4.0

MODULE 1
ITIL V3 FOUNDATIONS TRAINING:
INTRODUCTION
Contents:

Introductions
Training Goals and Objectives
Introduction to Training Materials
Introduction to ITIL V3

ITIL Certification Training

Service Management as a Practice
Key Concepts
SH p. 2

Section: Introduction

Course Agenda
Day One
Introduction
Service Strategy
Service Design

Day Two
Review of Day 1
Service Transition
Service Operation

Day Three
Review of Days 1 and 2
Continual Service Improvement
Exam Preparation
SH p. 4

Section: Introduction

ITIL History
V1 late 1980s
Developed by the UK Government with consulting help
Process-focused
Very much a library of 31 books

V2 1999-2001
Process-focused
8 books, only 2 were part of certification training
9th book provided guidance on implementation

V3 May 2007
Service Lifecycle model with focus on strategy and business outcomes
Within the 5 lifecycle phases, processes, roles and functions are described
5 books, all part of the syllabus

SH p. 10

Service Strategy
Define the market and your Services
Determine how to create value for customers
Determine best use of resources and capabilities

Service Design

ITIL V3
Books

Overall design of Services including:

Service Management systems
Technical & management architectures
Processes, measurement and metrics

Service Transition
Effectively move Services from development into production
Guidance on managing changes to Services
Guidance on transferring control of Services between
providers

Service Operation
Delivery and support of Services
Mange incidents, problems and events

Continual Service Improvement

Support all stages of the lifecycle in evaluating and improving
Service quality, the Service Lifecycle and its underlying processes
Crown Copyright 2007. Reproduced under Licence from OGC.

SH p. 11

Section: Introduction

ITIL V3 Core
CMMI

CORE

ISO/IEC
20000

TOGAF
Etom

SOX

Six Sigma

Certified
Training

PMBOK

ISO/IEC
17799

PRINCE2

ISO/IEC
19770

SOA
COBIT
M_o_R
Crown Copyright 2007. Reproduced under Licence from OGC.

SH p. 12

Section: Introduction

ITIL V3 Qualification Structure

Crown Copyright 2007. Reproduced under Licence from OGC.

SH p. 13

Section: Introduction

ITIL Foundations Certification Exam

40 multiple choice questions (closed book)
Time limit: 1 hour
Passing grade: 65% (26 questions out of
40)
Photo ID is required
Retain your certificate it is required for
entry to advanced classes
Foundation Certification is good for life
SH p. 14

SERVICE MANAGEMENT AS A
PRACTICE

V3 Key Concepts

SH p. 15

Section: Introduction

What is a Service?
Definition of a Service:
Services are a means of delivering value to
customers by facilitating the outcomes
customers want to achieve without the
ownership of specific costs and risks.

People want a quarter inch hole, not a quarter

inch drill.
-- Prof. Theodore Levitt, Harvard Business School
SH p. 18

Section: Introduction

What is Service Management?

The official definition:
Service Management is a set of specialized
organizational capabilities for providing value
to customers in the form of Services.
Also:
Service Management aims to achieve a common
understanding between the customer and
Service Provider through managing Service
level expectations and delivering and
supporting desired results.
SH p. 19

Section: Introduction

Best Practice vs. Good Practice

Best Practice

Good Practice

Best practice provides a set

of generic guidelines

Good practice is the

application of best practice

Based on the successful

experiences of a number
of organizations.

Common way best

practices are put into use.

BEST practices quickly become GOOD practices which become

commodity, generally accepted principles, received wisdom, or
regulatory requirements

SH p. 21

Section: Introduction

Governance

Corporate Governance:

The most recent and highly

visible example of a
renewed emphasis on
corporate governance is
the Sarbanes-Oxley Act
(SOX) of 2002 in the
United States.

The ethical behavior by

directors or others in the
creation and preservation of
wealth for all stakeholders.
IT Governance:

SOX demands corporate

fairness, mandates
complete transparency of
transactions and holds
executives accountable for
any material deficiencies.

An integral part of corporate

and enterprise governance,
and ensures that IT sustains
and extends the
organization s strategies
and objectives.

SH p. 23

Section: Introduction

What is a Process?
A set of coordinated
activities combining
and implementing
resources and
capabilities in order
to produce an
outcome, which,
directly or
indirectly, creates
value for an
external customer
or stakeholder.
SH p. 24

Section: Introduction

Process Model
Process Control
Process
Owner

Process
Objectives

Process
Documentation

Process
Feedback

Triggers

Process
Process
Activities

Process
Inputs

Process
Procedures

Process
Metrics
Process Work
Instructions

Process
Roles
Process
Improvement

Process
Outputs

Including process
reports & reviews

Process Enablers
Process
Resources

Process
Capabilities

Crown Copyright 2007. Reproduced under Licence from OGC.

SH p. 25

Section: Introduction

Process Characteristics
What is not defined cannot be controlled
What is not controlled cannot be measured
What is not measured cannot be managed
What is not defined, controlled, measured and
managed cannot be improved
Process Characteristics:
They are measurable
They have specific results
They deliver to customers
They respond to a specific event
SH p. 26

Section: Introduction

Role vs. Function vs. Process

Functions are units of
organizations specialized
Perform certain types of work and
responsible for specific outcomes

Roles are a set of

responsibilities defined in a
process and assigned to a
person or team.
Processes are performed by one
or more functions
May include any of the roles,
responsibilities, tools, and
management controls required to
reliably deliver the defined outputs

SH p. 27

Section: Introduction

Process Owner vs. Service Owner

Process Owner

Service Owner

Responsible for keeping

everyone involved in the
execution of the process
informed

Accountable for a specific

Service

Responsible for ensuring

the continual improvement
of the process
Responsible for updating
the process to accurately
reflect changes

Ensures Service is
managed with a business
focus
Responsible for the
continual improvement of
the Service along with
Continual Service
Improvement Manager

SH p. 29

Section: Introduction

RACI Model

Responsible:

RACI Matrix
Executes process and activities

Accountable:

Ownership of quality and end result of

process

Consulted:

Involvement through input of knowledge

and information

Informed:

Receiving information about process

execution and quality
SH p. 30

Section: Introduction

Calculating Value
Service Elements of Value: Utility and Warranty
Utility of a Service

Warranty of a Service

Attributes of a Service that have a

positive effect on the
performance of activities, objects
and tasks associated with desired
outcomes

An assurance that some

products or Services will be
provided or will meet certain
specifications.

Removal or relaxation of
constraints on performance

Available when needed, in

sufficient capacity and
dependably in terms of
continuity and security

Fit for Purpose

Fit for Use

Utility increases the performance

average.

Warranty reduces the

performance variation.

Value = Utility + Warranty

SH p. 31

Section: Introduction

Risk Management
Risk Management is the process responsible for identifying,
assessing and controlling Risks
Risk Management is important to all businesses.
Risk Management is comprised of risk analysis and risk management.
Effective management of risk helps to improve performance by
contributing to:
Increased certainty and fewer surprises
Reduced waste and fraud

Management of risk should encompass:

Health and safety
Security
Business Continuity

SH p. 32

Section: Introduction

An Expanded View of The Service Lifecycle

The Business/Customers

Requirements

Service
Strategy

Service
Design

Service Portfolio
Service Catalog

Solution
Designs

Objectives from
Requirements

Resources &
Constraints

Policies

Strategies

Architectures

Service
Transition

SKMS

Tested
Solutions

Transition
Plans

SDPs

Standards

Service
Operation

Operational
Services

Continual
Service
Improvement

Improvement
Actions & Plans
SH p. 34

Crown Copyright 2007. Reproduced under Licence from OGC.

Section: Introduction

V3 Structure
Service Lifecycle Processes
Service Lifecycle Governance Processes
Service Strategy

Continual Service Improvement

Operational Service Lifecycle Processes

Service
Design
Processes
Service
Design

Service Operation

Service Transition

IT Financial Management
Service Portfolio Management
Demand Management

Seven Step Improvement

Strategy Generation

Service Catalog Management

Service Level Management
Capacity Management
Availability Management
Service Continuity Management
Information Security Management
Supplier Management
Change Management
Service Asset and Configuration Management
Knowledge Management
Transition Planning and Support
Release and Deployment Management
Evaluation
Service Validation and Testing
Event Management
Incident Management
Request Fulfillment
Problem Management
Access Management

SH p.
36
Crown Copyright 2007. Reproduced under Licence from
OGC.

Introduction
End of Module Review:
Class Exercise

Sample Test Questions

Answers
End of Unit Review

SH p. 38

Section: Introduction

ITIL V3 Sample Question

What is the RACI model used for?
a) Documenting the roles and relationships of
stakeholders in a process or activity
b) Defining requirements for a new Service or
process
c) Analyzing the business impact of an Incident
d) Creating a balanced scorecard showing the
overall status of Service Management

Section: Introduction

ITIL V3 Sample Question

Which of the following is a process owner
responsible for?
a) Purchasing tools to support the process

b) Ensuring that targets specified in a Service Level

Agreement (SLA) are met
c) Carrying out activities defined in the process
d) Ensuring that the process is performed as
documented

Section: Introduction

ITIL V3 Sample Question

Which of the following can be described as
Self-Contained units of organizations ?
a) Roles
b) Processes
c) Functions
d) Procedures

MODULE 2
SERVICE STRATEGY
Contents:

Goals & Objectives

Scope
Key Concepts
Key Processes

SH p. 45

Section: Service Strategy

Service Strategy
Describes how to
transform Service
Management into a
strategic asset
Sees the relationships
between various
Services, systems, or
processes that are
managed and the
business models,
strategies, or objectives
they support
Crown Copyright 2007. Reproduced under Licence from OGC.

SH p. 46

Section: Service Strategy

Economic Value of a Service

Positive Negative
difference difference

Gains
from
utilizing
the
service

Net
difference

Losses
from
utilizing
the
service

Based on DIY strategy

or existing
arrangements
Reference
Value

Economic value
of service

Crown Copyright 2007. Reproduced under Licence from OGC.

SH p. 48

10

Section: Service Strategy

Types of Service Providers

Service Provider
Business Models
Type I: Internal
Service Provider
Type II: Shared
Services Unit
Type III: External
Service Provider

SH p. 50

Section: Service Strategy

Service Assets
Asset Any Resource or Capability. Assets of a Service
Provider include anything that contributes to the delivery of a
Service.

Capabilities:
Management
Organization
Processes
People
Knowledge

VALUE

Coordinate
Control
Deploy

Resources:
Infrastructure
Applications
Information
Financial Capital
People

in terms of Goods and Services

SH p. 51

SERVICE STRATEGY PROCESSES

Service Generation
Service Portfolio Management
Financial Management
Demand Management

SH p. 52

11

Section: Service Strategy

Service Portfolio Management

Service Portfolio
Management is a
dynamic method for
governing investments
in Service
Management across
the enterprise and
managing them for
value

SH p. 53

Section: Service Strategy

Service Portfolio
Planned Services
are found in the
Service Pipeline

Service Knowledge Management System

Service Portfolio
Service
Lifecycle
Service Status:
Requirements
Defined
Analysed
Approved

Service
Pipeline

Chartered

The Service Catalog

contains all current,
operational Services.

Customer
section of
the Service
Portfolio

Designed
Developed
Built
Test
Released
Operational
Retired

Service
Catalog
Retired Services

Crown Copyright 2007. Reproduced under Licence from OGC.

SH p. 55

Section: Service Strategy

Business Case
A business case is a
decision support and
planning tool
Consequences and
benefits are both
qualitative and
quantitative
A financial analysis,
for example, is
frequently central to a
good business case

Introduction
Methods and assumptions
Business impacts
Risks and contingency
Recommendations

SH p. 57

12

Section: Service Strategy

Financial Management
Provide financial visibility
and accountability
Provide compliance and
controls
Provide Service-based
accounting
Financial Management
helps quantify the value of
IT in financial terms
(Service Valuation)

SH p. 58

Section: Service Strategy

Service Valuation
Technique used to help the business and
Service Provider agree upon the value of an
IT Service
Based upon the combined value of utility
and warranty of the Service
Determined by understanding the
provisioning value (actual cost) and the
Service value potential (value to the
business)

SH p. 59

Section: Service Strategy

ROI and VOI

Return on Investment (ROI): Quantification of costs and
benefits
ROI returns can be hard to define. It is important to know:
Cost of downtime
Cost of doing rework
Cost of redundant work
Cost of non-value added projects
Cost of late delivery
Cost of escalating incidents beyond the Service desk
Fully allocated hourly cost for different employee levels

Value on Investment (VOI)

Represents the soft, intangible returns on an investment, (e.g.,
goodwill, market perception, brand recognition)

SH p. 60

13

Section: Service Strategy

Demand Management
Understand and
influence customer
demand for Services and
the provision of capacity
to meet those demands
Understand customer
requirements and how
these vary
Provide an appropriate
level of Service
Influence customer
demand
SH p. 61

Section: Service Strategy

PBAs and UPs

Pattern of Business Activity (PBA)
A workload profile of one or more business
activities. Patterns of business activity are
used to help the IT Service Provider
understand and plan for different levels of
business activity.
User Profile (UP)
A pattern of User demand for IT Services.
Each User Profile includes one or more
patterns of business activity.
SH p. 62

Section: Service Strategy

Patterns of Business Activity

Demand Pattern

Pattern of
business
activity

Business
Process

Service Belt

Service
Process

Capacity
Management
Plan

Delivery Schedule
Incentives and
penalties to influence
consumption

Demand
Management

Crown Copyright 2007. Reproduced under Licence from OGC.

SH p. 63

14

Service Strategy
End of Module Review:
Class Exercise
Sample Test Questions
Answers
End of Unit Review

SH p. 66

Section: Service Strategy

ITIL V3 Sample Question

Which of the following is a MAJOR activity of
Demand Management?
a) Increasing customer value
b) Understanding patterns of business activity
c) Increasing the value of IT
d) Aligning the business with IT cost

Section: Service Strategy

ITIL V3 Sample Question

Which statement about Value Creation
through services is CORRECT?
a) The customers perception of the service is an
important factor in value creation
b) The value of a service can only ever be measured
in financial terms
c) Delivering service provider outcomes is
unimportant in the value of a service
d) Service provider preferences drive the value
perception of a service

15

Section: Service Strategy

ITIL V3 Sample Question

Warranty of a Service means?
a) The service is fit for purpose
b) There will be no failures in applications and
infrastructure associated with the service
c) All service-related problems are fixed free of
charge for a certain period of time
d) Customers are assured of certain levels of
availability, capacity, continuity and security

Section: Service Strategy

ITIL V3 Sample Question

Which of the following should IT services
deliver to customers?
a) Capabilities
b) Cost
c) Risk
d) Value

MODULE 3
SERVICE DESIGN
Contents:

Goals & Objectives

Scope
Value to the Business
Key Concepts
Key Processes

SH p. 75

16