Introduction to ITIL Foundation Course

Unit 1Introduction to Service Management Lifecycle

Based on AXELOS ITIL material. Material is reproduced under licence from AXELOS.
ITIL is a registered trade mark of AXELOS Limited
IT Infrastructure Library is a registered trade mark of AXELOS Limited
AXELOS is a registered trade mark of AXELOS Limited
Copyright
2015,
Simplilearn,
All rights
reserved.
Copyright 2015,
Simplilearn,
All rights
reserved.

Introduction to Service Management Lifecycle

Lesson 1Principles of IT Service Management

Copyright 2015, Simplilearn, All rights reserved.

Objectives
After completing
this lesson, you will
be able to:

Identify best practices in IT Service Management

Identify the stakeholders in service management

Describe roles and responsibilities in service management

Explain the types of service providers

Copyright 2015, Simplilearn, All rights reserved.

IT Service ManagementBest 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 organisations past experiences in

providing similar services

Copyright 2015, Simplilearn, All rights reserved.

Public and Proprietary Practices

The table provides a comparison between public and proprietary practices:
Public practices

Proprietary practices

Widely distributed through public training and

certification

Deeply embedded in organisations

Applied across various technologies and

businesses

Highly customised to serve specific business

needs

Available for free

Owners expect compensation

Organisations can easily hire people with the

knowledge of such practices

The evolution of such practices depends on the

owner and cannot be guaranteed

Copyright 2015, Simplilearn, All rights reserved.

ServiceIntroduction
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.
CustomerOnline bookstore
Data Storage

Value added by Service Provider

Transfers the
responsibility to
manage risks and
costs of Data storage

Service providerDatabase solutions

Copyright 2015, Simplilearn, All rights reserved.

Performs tasks

Manages risks and constraints

Optimises costs

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.

Copyright 2015, Simplilearn, All rights reserved.

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.

Copyright 2015, Simplilearn, All rights reserved.

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.

Copyright 2015, Simplilearn, All rights reserved.

Internal and External Customers

There are two types of customers for any organisation, they are:
Internal 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 companys accounting
system.

Copyright 2015, Simplilearn, All rights reserved.

External customers

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.

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 2015, Simplilearn, All rights reserved.

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

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.

Copyright 2015, Simplilearn, All rights reserved.

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.

Copyright 2015, Simplilearn, All rights reserved.

Functions Related to Service Management (contd.)

Functions defined by ITIL 2011 are:

Service Desk

Single point of
contact where a
business sends
operational
requests such as,
requests for
relocations or
installation orders

Copyright 2015, Simplilearn, All rights reserved.

Technical
Management

IT Operations
Management

Application
Management

Aims at designing
cost-effective
technological
infrastructures
that can support
business processes

Includes
continuous
activities related to
IT service delivery
and has two roles:
operations control
and facility
management

Helps to manage
applications for
their entire
lifecycle and plays
a key role in
designing, testing
and improving
applications

Roles in Service Management

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

Service Owner is the person

who is accountable for the
delivery of a specific IT service
and also for continual
improvement and management
of change affecting services
under their care.

Copyright 2015, Simplilearn, All rights reserved.

Process Owner

The Process Owner is

responsible for ensuring that a
process is being performed as
agreed and documented.

Service OwnerResponsibilities
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

Copyright 2015, Simplilearn, All rights reserved.

Process OwnerResponsibilities
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.

Copyright 2015, Simplilearn, All rights reserved.

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

Responsible

People or person responsible for carrying out various tasks

Individual taking ownership and being accountable for various

Accountable activities
Consulted

Informed

People whose opinions are sought after designing, implementing

or improving an activity
People who are informed while executing or improving an activity

Copyright 2015, Simplilearn, All rights reserved.

RACI Model (contd.)

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

Process
Owner

Security
Manager

IT
Head

Chief
Architect

Process
Manager

Create a framework for defining IT services

A/R

Build an IT service catalogue

A/R

Define SLA for critical IT services

Monitor and report SL performance

A/R

Review SLAs, OLAs and UCs

Review and update IT service catalogue

A/R

Create a service improvement plan

A/R

Activities

Copyright 2015, Simplilearn, All rights reserved.

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
Provider

Refers to a service
provider embedded
within a business unit
Example: An IT
organisation within each
business unit

Copyright 2015, Simplilearn, All rights reserved.

Type II or Shared Service

Provider

Refers to an internal
service provider that
offers shared IT services
to multiple business
units
Example: A telecom
companys IT services
team offering services to
the mobile and landline
phone units of the same
company

Type III or External Service

Provider

Refers to an external
service provider that
offers IT services to
external customers
Example: An IT service
provider in India,
offering outsourcing
services to a global bank

Supplier and Contracts

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

Supplier

Underpinning
contract (UC)

Service Level
Agreement (SLA)

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

It is a legal agreement between the service provider and the supplier.

The agreement between the business organisation and the IT service provider
is called SLA.

Copyright 2015, Simplilearn, All rights reserved.

Summary
Here is a quick
recap of what we
have learnt in this
lesson:

Best practices are successful innovations that have been accepted and
followed by organisations.

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.

Copyright 2015, Simplilearn, All rights reserved.