Chief Information Officers (CIO)

1. Chief Information Officers (CIO)

2. Module 8 IT SERVICE MANAGEMENT

3. Objective of Module 8 To present the basic concepts and tools for IT Services Management within the ITIL Framework and to explore their applicability in the context of the E-Government Programme of the Government of Iraq.

4. Scope of Module 8 • ITIL Framework • IT Service Life Cycle • IT Service Strategy • Service Planning • Service Design and Operations • Service Metrics

5. EVOLUTION OF ITIL • ITIL - Information Technology Infrastructure Library • History • Originally created in late 80s by the UK government • Now truly global and applicable to all IT Services • Focus on process and roles rather than organisation • Version 1 in 1991- focused on UK Government • Version 2 in 2000 - Industry wide and took into account changes in technology • Version 3 in June 2007 – Life Cycle Approach • OGC • Office of Government Commerce – UK Treasury ministry • ITSMF • The driver behind all things ITIL taken over from OGC • Global • USA, Canada, Mexico, Argentina, and Brazil - Americas • Australia, India, Singapore - Asia Pacific • Denmark, France, Germany, Netherlands, Sweden, UK - EMEA

6. ITIL … • Is a collection of books which contain recommendations & suggestions to improve provision of IT Services • Not a standard but a Best Practices Framework • Needs to be adopted and/or adapted

7. Benefits of ITIL framework:- • increased user and customer satisfaction with IT services • improved service availability, directly leading to increased business profits and revenue • financial savings from reduced rework, lost time, improved resource management and usage • improved time to market for new products and services • improved decision making and optimized risk.

8. Standards based on ITIL BS 15000 ISO 20000 ITIL • BS15000 the first standard derived from ITIL • ISO 20000: ISO standard derived from ITIL

9. SERVICE LIFE CYCLE APPROACH

10. The Four P’s • The implementation of ITIL as a practice is about preparing and planning the effective use of The Four Ps: • People • Processes • Products • Partners

11. FOCUS AREAS

12. Key CONCEPTS.……. • Service & Service Owner • Service Management • Process & Process Owner • Functions, Staff, Roles • Metrics, Interfaces • RACI • PDCA • Compliance & Governance • Concept of Caps

13. RESPONSIBILITY ACCOUNTABILITY CONSULTED INFORMED MATRIX

14. PLAN DO CHECK ACT (Deming’s Cycle for Improvement) Continuous step by step improvement Consolidated of the level reached (e.g. ISO 9001)

15. STORY TIME

17. 1. SERVICE STRATEGY

18. ACTIVITIES OF SERVICE STRATEGY • Identify market & define your target area • Decide what services you want to offer & who can be the potential customers • Develop your service offerings • Build on/improve your services • Develop strategic assets • Develop new services • Help clarify the relationships between different services, processes, strategies etc.

19. SERVICE STRATEGY • 1.Demand Management • 2.Service Portfolio Management • 3.Financial Management

20. SERVICE STRATEGY 1 OF 3 DEMAND MANAGEMENT

21. Simply Speaking Demand Management = Know your customer and then identify his / her requirements

22. BASIC CONCEPTS OF SERVICE STRATEGY • Utility – It is derived from the attributes of service which have a positive effect on the performance • What does the service do? • Functional requirements • Features, inputs, outputs • Fit for purpose • Warranty – It is derived from positive effect being available when needed, in sufficient capacity & magnitude & dependably in terms of Continuity & Security • How well service does it • Fit for use

23. OBJECTIVES • To understand customer’s current requirements • Trend of requirements over a period/business cycle • Match the customer’s expectations with organization's capabilities of providing services • Ensure Warranty & Utility are in alignment with customer’s needs

24. KEY CONCEPTS • Core service vs. Supporting Service • Pattern of Business Activity (PBA), User profile • Service Package (SP) vs. Service Level Package (SLP) • Business Relationship Management

25. Core Service vs Supporting Service • Core Service is the service which actually brings ‘value’ to the customer. • It’s a service which is KEY from organization's perspective as well • E.g. for a Banking customer, the core services provided will be all financial services • Supporting Service ‘supports’ or enhances the core services • It’s like an added feature which may not be desired but important to have • Many times it becomes necessity • E.g. supporting services in above case could be providing a helpdesk which helps/troubleshoots any issues/queries faced by users when they access the website

26. Pattern of Business Activity (PBA) & User Profile • Represents change in pattern of customers demands as explained by organization • Important to track as it helps organization identify improvements in existing services or identify future opportunities • Also important to study customer’s business & changing business needs • User Profile • Demand patterns shown by users • Users means people or even processes/functions etc. • Is usually associated with/is subset of PBA

27. SP vs SLP • Service Package is a bundle of core services and/or supporting services which is offered to customer • SP Includes Service Level Package • SLP has a defined level of Utility & Warranty for a given SP • E.g. Buying 100 servers is a SP deal but some of them could be under Gold/Silver SLP

28. Business Relationship Management • Customer centric activities • Constant communication with customer • Helps to know the improvements & future scope for business • Usually the First Point of contact for the customer especially for a first time/new business

29. METRICS • Accurate understanding of customer’s business needs • Loss of Business to competitors especially for a new services • Improved Customer Relationships

30. ROLES & RESPONSIBILITIES • Business Relationship Manager • Documenting the customer’s business needs, PBAs, User Profile etc. • Ensure SLP matches customer’s needs • Discussions with internal teams for setting up new SLPs or establishing the existing once • Analyze potential SLP improvements , • Look for future business opportunities with customer • He may have a team working with multiple customers

31. SERVICE STRATEGY 2 OF 3 SERVICE PORTFOLIO MANAGEMENT

32. Simply Speaking • SPM = How to bundle/package the services

33. OBJECTIVES • Plan for services you can offer • Record of all the services including current, expired & in Pipeline • Provide information/guidance to Service Design

34. KEY CONCEPTS • Service Portfolio, It’s Components & structure • Business Service, Business Service Management • Business Service vs. IT Service

35. Service Portfolio • It describes how the services are bundled & packaged • Takes care of Marketing components such as • What is the REASON customer will buy these services? • What is the REASON customer will buy these services from US? • SWOT analysis for our Organization’s service capabilities • What could be our pricing models • How best to allocate resources & capabilities

36. ACTIVITIES • DAAC (Based on DMAIC cycle) • Define • Take Service Strategy as input, Define Inventories, Business Case, Validation of Data • Analyze • Decide Value Proposition, Prioritization, Balance of Demand & Supply • Approve • Authorize / Finalize the Portfolio, Services, Resources • Charter • Communicate information / decisions, Resource allocation, Chartering of services • Continually Update/ Improve the portfolio – begins next DAAC

37. METRICS • How Accurate & Up-to-Date Portfolio is • Is the information contained is relevant from Market perspective • Is it in alignment with customer needs

38. ROLES & RESPONSIBILITIES • Product Manager • Create Business case • Evaluate Marketing Opportunities • Deploy new services/retire the old ones • Manage a set of related services • Business Relationship Manager • First Point of Contact • Document Customer needs

39. SERVICE STRATEGY 3 OF 3 FINANCIALMANAGEMENT

40. Simply Speaking • Financial Management = Getting the Deal ($$$) right

41. OBJECTIVES • To serve as strategic tool to align IT services with Financial Decisions • To balance the Cost & Price as appropriate • Accounting for IT Services • Facilitate Accurate Budgeting • Finalize Financial Policies (e.g. Charging) • Financial Review & Control

42. COST VS PRICE • Cost = Actual Expenditure of providing IT Services • Price = The amount at which one Sells IT Services • Hence Price – Cost = Profit

43. KEY CONCEPTS • Service Valuation (Previously known as Charging) • Service Investment Analysis (Previously known as Budgeting) • Accounting

44. SERVICE VALUATION (CHARGING) • A mechanism which helps organization to recover at least the expenditure incurred on providing IT services with additional monitorial profits as applicable • Types • Cost Recovery (Actual) • Cost Plus Fixed Fee • Cost Plus % of Costs • Cost Plus Incentives • Notional Charging • Fixed Price • Time & Material

45. SERVICE INVESTMENT ANALYSIS • Was termed as Budgeting in v2 • It is a Time phased allocation of Funds • It helps Track & Control the expenditure pattern • Also guide how to utilize the funds

46. ACCOUNTING • A mechanism to track WHAT has been spent & WHERE it has been spent • Maintain accounts of all incoming and outgoing monetary fund

47. ACTIVITIES • To design mechanisms for service valuation, Investment Analysis & Accounting • To align IT Business with Finance Policies • Ensure the accuracy in implementing financial controls • Bill Payments & Collections • Updating the Finance Policies as per Organizational needs

48. METRICS • Accuracy in Budgeting, Forecasting & Controls • Quick & Effective financial decision making • Proper IT Accounting • Ensure Timely Bill Payments & Collections • Overall performance of Finance Dept.

49. ROLES & RESPONSIBILITIES • Finance Manager / Dept./ Controller • To Lay Financial Policies & document • To ensure that the policies are adhered to • Implement proper financial controls • Look for Continual Improvement • Note – Every individual manager has some financial responsibility within his area of control

50. 2. SERVICE DESIGN