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The Service Lifecycle

Practice.- A way of working, or a way in which work must be done. Practices can include activities, processes, functions, standard and guidelines. Service.- A means of delivering value to customers by facilitating outcomes costumers want to achieve without the ownership of specific costs and risks. Service Provider.- An organization supplying services to one or more internal or external customers. Service provider is often used as an abbreviation for IT service provider. ITSM (IT Service Management) applies to most service provider types. There are three kinds of service provider: Type I service provider: An internal provider embedded within a business unit. There may be several Type I service providers within an organization. Type II service provider: A shared services unit that provides shared IT services to more than one business unit. Type III service provider: An external service provider that provides IT services to external costumers. The IT Infrastructure Library (ITIL) ITIL v3 publications and brief description:
Volume Service Strategy Service Design Service Transition Service Operation Continual Service Improvement Description How to transform IT Service Management into a strategic business asset How to design IT services, processes, and functions to realize the strategy How to move new and changed IT services and components into a production environment safely and effectively How to efficiently and effectively deliver and support IT services How to monitor and measure IT Service Management and make adjustments to remain aligned with business and strategy

Service asset.- Any capability or resource of a service provider. The service assets of an average IT organization include (to name a few): Management Organization Process Knowledge People Information Applications Infrastructure Financial Capital

The Practice if Service Management Service assets form the basis value Service management: o Provides value to costumer through services o Control service asset o Service owner is accountable for one or more specific services Service assets: o Resources Starting point for value creation Tangible: HW, SW, people, money o Capabilities Ability to carry out an activity Intangible: knowledge, information, skills

Service Management.- A set of specialized, organizational capabilities for providing value to customers in the form of services. Service Management is a professional practice complete with industry standards, good practice frameworks, and global communities of interest. The specialized capabilities of the provider comer from applying this body of knowledge to its function and processes to manage constraints on performance. Service providers combine their resources with their capabilities to control theses constraints, creating value. Service owner Every service should have a service owner who is accountable for a service. The role of the service owner is to: Ensure the service meets customer requirements Identify improvement opportunities Participate in reviews and Change Managements activities

The service owner plays an important part in CSI (Continual Service Improvement) and is accountable for a specific service within an organization, regardless of where the underpinning technology resides. Service owners: Provide input on service attributes Represent the service across the organization Function as an escalation point Provide input to CSI, the Service Catalog, and SLAs (Service Level Agreements)

Resource.- A generic term that includes IT infrastructure, people, money, or anything else that might help deliver an IT service. Resources are considered to be assets of an organization. Capability.- The ability of an organization, person, process, application, CI (Configuration Item), or IT service to carry out an activity. Capabilities are intangible assets of an organization.

Business Value from Utility and Warranty Utility.- The functionality offered by a product or service to meet a particular need. Utility is often summarized as what it does (What the service does). Warranty.- A promise or guarantee that a product or service will meet its agrees requirements (How well it does it). Packaging Utility and Warranty into Service Service Package.- A detailed description of an IT service that is available for delivery to customers. A Service Package includes a service level package and one or more core services and supporting services. The two broad of services are core and supporting services: Core services.- A core service is an IT service that delivers basic outcomes desired by one or more customers. A core service embodies the value that customers desire. Supporting (enabling and enhancing).- Supporting services enable or enhance a core service. For example, an optional expanded storage service enhances a core e-mail, making it more valuable to some customers.

Service Packages can help creates shared service infrastructure and standards offering from core services in an economical and efficient way. Service Lifecycle Activities and Models Components of managing the Service Lifecycle Process models describe how work gets done Processes are structured activities to accomplish objectives Functions involve people and tools carrying out o process Roles include responsibilities, activities, and authorities.

The ITIL lifecycle revolves around strategy that continuously aligns with business needs. Achieving this alignment requires a pragmatic mix of work, workers, and work descriptions. To put it in more technical terms, achieving business goals requires: Roles Responsibilities Authorities Processes Functions

Processes Process.- A structured set of activities designed to accomplish a specific objective. A process takes one or more defined inputs and turns them into defined outputs. A process may include any of the roles, responsibilities, tools, and management control required to reliably deliver the outputs. A process may define policies, standards, guidelines, activities, and work instructions if they are needed.

Process Characteristics Processes have the following characteristics: o Are measurable o Have specific results o Benefit customers o Respond to specific events o Have process managers and a process owner o Always create value

Every process has an owner responsible for its operation and improvement. Processes have the following characteristics: Measurable: Since a process is performance (output) driven, it must be measurable. Specific results: processes exist to deliver specific results. Customers: Every process delivers its primary results to an internal or external customer or stakeholder Responds to a specific event: While a process may be ongoing or iterative, it should a traceable to a specific trigger or input event

Process Manager and owner. Every process should have one or more process managers who are responsible for the operational management of a process. The process managers responsibilities include planning and coordination of all activities required to carry out, monitor, and report on the process. Every process should have a process owner who is responsible for the process and its improvement. A process owner is accountable for ensuring that the process is performing according to the agreed and documented process description, and that it is meeting the defined process goals and aims. The process owner is specifically accountable for: Defining process strategies, policies, and standards Assisting with process design Defining and reviewing KPI (Key Performance Indicators) of process Process improvement Documenting and publicizing the process Defining the KPI and taking action required (following the analysis) Assisting with and being ultimately responsible for the process design Improving the effectiveness abs efficiency of the process Providing input to the ongoing SIP (Service Improvement Plan) Addressing any issues with the running of the process Ensuring all relevant staff have the required training in the process and are aware of their role in the process Ensuring that the process, roles, responsibilities, and documentation are regularly reviewed and audited Interfacing with the line management to ensure that the process receives the necessary staff resources

The roles of process owner and process manager can be held by the same person, or they can be held by different people in an organization. Functions Function.- A team or group of people and the tools they use to carry out one or more processes or activities. Functions are specialized and self-contained nits with capabilities and resources that provide structure and stability. Value of process to functions: o Without process, functions tend to internalize. o With process, functions become powerful o Process models provide cross-functional coordination and control

Value of processes to Functions Functions tend to optimize their work methods locally to focus on assigned outcomes. When combined with an inward focus, poor coordination between functions leads to functional silos that hinder the alignment and feedback that are critical to the success of the organization as a whole. Process models help avoid this problem with crossfunctional coordination and control. Well-defined processes can improve productivity within an across functions. Service Management Roles and Responsibilities Activity.- A collection of actions that delivers desired results Role.- Responsibilities and authorities to carry out activities RACI model: o Documents roles and relationship o Who is: Responsible (The person or people responsible for getting the job done) Accountable (Only one person can be accountable for each activity task) Consulted (The people who are consulted and whose opinions are sought) Informed (the people kept up-to-date on progress)
Director Activity 1 Activity 2 Activity 3 Activity 4 Activity 5 AR A I I I Service Level Manager C R A A I Problem Manager I C R R A Security Manager I C I I C Procurement Manager C C C R I

Role.- A set of responsibilities, activities, and authorities granted to a person or team. A role is defined by a process.

2. Service Strategy Introduction and Purpose of Service Strategy Service strategy: Established an overall strategy for IT services and for ITSM (IT Service Management) Focuses on the concept that IT is an investment made by customers to obtain some ability Provides guidance on how to design, develop, and implement Service Management as a strategic asset and as an organizational capability Provides guidance on how to set performance objectives and expectations for serving customers and market spaces, and to identify, select, and prioritize as opportunities

Service Strategy begins with a SIP (Service Improvement Plan) from CSI (Continual Service Improvement) or new business driven, and ends with the production of an SLP (Service Level Package) for Service Design. The Objective, Scope, and Value of Service Strategy Objective Service Strategys objective is to provide guidance to operate and grow successfully in the long term, and to teach service providers how to think and act in a strategic manner. Setting Service Management policies and objectives is a primary concern of Service Strategy. Service Strategy sits at the core of the Service Management Lifecycle to address the most fundamental issues, including: What service to offer, and who to offer them to How to differentiate from competitors How to create value customers How to make the case for strategic investments How to provide visibility and control over value creation How to define service quality, and how to choose alternatives to improve service quality How to allocate resources across the portfolio of services How to manage and resolve conflicts arising over demand for shared resources

Scope The Scope of service Strategy includes the following goals: Development of internal and external markets Management of all service assets including the Service Portfolio and the Service Catalog Realization of Strategy Implementation of:

o Financial management o Demand Management o SPM (Service Portfolio Management) o Organizational development Management of strategic risks Value Transforms IT resources and capabilities into goods and services. Value = Utility (fitness for purpose) + Warranty (fitness for use) From a strategic perspective, economic service value alone is not all that matters, or even what matters most. Customer value services based on their: Desired business outcomes Perceptions of how the service helps them attain their desired outcomes Preference for obtaining desired outcomes

This means that IT service providers must deliver business outcomes while influencing perceptions and responding to customer preferences. There is usually a difference between what the customer considers the value of a service and what IT considers the value of the service. Service Asset.- Any capability or resource of a service provider. Service Strategy Principles and Models Service Portfolio.- The complete set of services that are managed by a service provider. The Service Portfolio is used to manage the entire lifecycle of all services, and includes three categories: o Service Pipeline: proposed services, or those that are available under development. Service Pipeline represents the future. o Service Catalog: Services that are in operation (live services), or those that are available for deployment. Service Catalog represents the present. o Retired services: These are services that were once in live operation, but have become obsolete. Retired services represent the past. Service Catalog.- A database or structured document with information about all live IT services. The Service Catalog is the only part of the Service Portfolio that is published to customer. The Service Catalog supports the sale and delivery of IT services, and includes information pertaining to: o Deliverables o Prices o Contact Points o Ordering o Request process The Service Catalog contains entries for business and technical services. Risk.- A possible event that could cause harm or loss or affect the ability to achieve objectives.

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Risk analysis.- Risk is the susceptibility of an asset to some threat, based in the assets vulnerabilities. Risk analysis attempts to identify risks, helping the business make informed decisions. Risk Management.- Managing risks requires governance and process in order to monitor the risk and put appropriate controls in place. Risk Management requires the identification, selection, and adoption of appropriate countermeasures (as identified by risk analysis).

Business service.- An IT service that directly supports a business process, as opposed to an infrastructure service which is used internally by the IT service provider and is usually not visible to the business. Technical or infrastructure service.- An IT service that is not directly used by the business, but is required by the IT service provider so they can provide other IT service. Service Strategy Activities and Processes Service Strategy Structure and Flow Referred to as service economics, the activities and processes of Service Strategy provide the service provider with the models, activities, and process descriptions necessary to offer differentiated services. Additionally, the service provider can use these activities and processes to manage IT investments as a portfolio, achieving maximum ROI (Return On Investment). Service Strategy has four major processes: Strategy Generation Service Portfolio Management Demand Management Financial Management

Two of these have a primary importance: Demand Management.- Manages customers demand for services that influence IT Service Strategy through PBA (Patterns of Business Activity); also creates UPs (User Profiles) Financial Management.- Manages IT budgets, accounting, and charging requirements; also creates business cases for services.

SIP (Service Improvement Plan).- A formal plan to implement improvements to a process or IT service. SLP (Service Level Package).- A defined level of utility and warranty for a particular Service Package. Each SLP is designed to meet the needs of a particular pattern of business activity. Strategy Generation Process There are four main activities in the Strategy Generation process: Define the market

Develop offerings Develop strategic assets Prepare for execution

Service Portfolio Management Process

SPM answers these questions: Why buy these services? Why buy from us? What is the pricing or chargeback model? What are our strength and weaknesses? How do we allocate resources?

SPM manages the Service Portfolio and considers services based in the business value they provide. SPM aims to manage investments throughout the Service Lifecycle. Demand Management Process Objective Balancing costs, value, capacity, and quality. Roles Service owner or product manager.- Manages a service as a product over its lifecycle. Represents the interest of the service at meeting and with vendors and customers. Business relationship manager.- Established strong business relationships to understand customer businesses and required outcomes. Challenges Capacity is a risk to IT and to customers. Demand pulls production.

Activity-based Demand Management

PBA (Patterns of Business Activity).- Workload profiles of one or more business activities. The basic concept behind the Demand Management process is activity-based, focusing on examining and understanding PBA (Patterns of Businesses Activity) and analyzing consumption to predict future demand. Customers assets generate PBA and patterns of demand. Responding to PBA is a major activity of Demand Management. Another goal of Demand Management is to understand business plan in order to translate increasing business demand into IT service management capability, which has a direct impact o all lifecycle phases. Demand Management plays an important role with Capacity Management, serving as an intermediary between business plans and capacity plans. Service consumption generates PBA and demand patterns. At a strategic level, Demand Management involves analysis of PBA and user profiles. At a tactical level, it involves the use of differential charging for encouraging customers to use IT services at less busy times. Business Activity Patterns and User Profiles Business activity patterns drive demand for services by generating PBAs, and PBAs define business dynamics. Services often directly support PBAs. PBAs are documented to describe business activity. They include requirements, such as security, privacy, and latency or tolerance for delays. Since the business activity profile can change over time, PBAs are under the control of Changes Management. User Profiles (UPs) UPs (User Profiles) documented the roles, responsibilities, interactions, schedules, work environments, and social context of related users. Each UP can be associated with one or more PBAs to show interrelationship. UPs are also under control of Change Management. You can understand and manage demand ina systematic way by matching PBAs and UPs. UPs also: Help customers understand their own business activities Provide the necessary information to serve demand with appropriate services, service levels, and service assets, leading to improved value for both customers and service providers.

Service Level Package (SLP) An SLP (Service Level Package) is a defined level of utility and warranty for a particular Service Package. Each SLPs design should meet particular business needs, or PBA. Meeting each PBA requires a service package designed to meet specific needs. An SLP combined with a CSP (Core Service Package) creates the segmented offerings in a Service Catalog. An SLP describes how well the service must operate. The SLP allows the provider to meet the specific business needs of different groups of customers. Financial Management Process Objectives

Ensure proper funding, visibility, and guidance to IT in business and financial terms Manage the Accounting, Budgeting, and Charging requirements for an It service provider (A B C) Bring operational visibility, insight, and superior decision making to IT Provide the business and IT with value of IT Improve operational forecasting

Basic Concepts Financial Management provides strategic tools to the business and IT, allowing for financial quantification of IT service value. The financial manager is responsible for: Service valuation.- Since customers value services differently than IT values them, Financial Management documents the value of IT services in business terms, allowing management to make informed decisions. Financial Demand Modeling.- Demand is a source of opportunity and risk. Financial Management seeks to model demand in terms of its financial values, both to IT and to the business. The primary method of providing visibility into demand, consumption, and value is to manage IT services as a portfolio of investments.