ITIL Version 3 Foundation - Service Design

Definition
The design of appropriate & innovative IT services..
including their architecture, process,policies & documentation..
to meet current and future agree business requirements'
Goals
-- To create a realistic service outline with:
    . Policy regarding service quality
    . Architecture design
    . Models for delivery
    . Appropriate Technology
    . Process & Measurement design
-- Provide guidance on development of Services, Models & processed
-- The main deliverable is the SERVICE DESIGN PACKAGE(SDP)
    . A SDP details all aspects of the service and its requirements during the design stage through all of the subsequent stages of its lifecycle.
    . Produced for each new IT service, major change or IT Service Retirement
Processed
 -- Service Level Management
 -- Service Catalogue Management
 -- Availability Management
 -- Information Security Management
 -- Supplier Management
 -- Capacity Management
 -- IT Service Continuity Management

Service Design - Objectives
-- Guidance on the design and development of:
    . Services and Service management processes
-- No limited to new services
-- "Holistic' approach
    . To ensure service consistency & integration
    . Must consider all activities & processes & IT technology

Service Design - Business Value
-- Deliver reduced Total Cost of Ownership (TCO)
-- Improve overall quality of services
-- Improve consistency of services
-- Make implementation of owner changed services easier
-- Increased Service management & IT processes effectiveness

Service Design - Key Principles & Models
. Importance of the 4P's
  -- People
  -- Processes
  -- Prodcuts
  -- Partners
  If we agree that PEOPLE is the greatest challenge; what could we attribute this to?

. 5 elements of Service Design   
    1. Service Portfolio Design
    2. Business Requirements & Service Design
    3. Technology Design
    4. Process Design
    5. Measurement Design

Service Portfolio Design
 -- Service Portfolio
    . Assists with clarifying question like:
      - Why should a customer buy these services?
      - Why should they buy these services from you?
      - What are they pricing or chargeback models?
      - what are my strenght & weakness, priorities & risks?
      - How should my resources & capabilities be  allocated?

-- Service Portfolio
    . Part of Sevice Knowledge Management System (SKMS)
    . Registered in Configuration Management System (CMS)

1.Service Portfolio Design
Design factors for the Service Portfolio
     . Service name
     . Service description
     . Service status
     . Service classification and criticality
     . Applications used
     . Business processes supported
     . Busness owners & Businss users
     . Service warranty level, SLA and SLR references
     . Supporting services
     . Supportng OLAs, cnracts and agreements
     . Service costs
     . Service charges
     . Service revenue
     . Service metrics
     More..

2.Busness Requirements & Service design
A. Analyse agreed business requirements
B. Review existing capability
C. incorporate Service Acceptance Criteria (SAC) requirements
D. Evaluate & cost alternative designs
E. Agree expenditure & budget
F. Re-evaluate & confirm business benefits (ROI & TCO)
G. Agree preferred solution against Service Level Requirement (SLR)
H. Check consistency with corporate & IT strategies
I. Confirm inclusion - Corporate, IT governance & security controls
J. Complete IT readiness assessment - ensure effective operability
K. Establish supplier & supporting agreements
L. Assemble Service Design Package (SDP) for subsequent stages

3. Technology Design:
-- Provide overall strategic development & deployment blueprints for architectures & management systems
   Architecture design = development and maintenance of IT policies, strategies, designs, documents, plans and processes
-- Guidelines for Technology Design
    . Re-use existing assets where possible
    . Look to use standard technology models

4. Process Design
-- Create or follow existing process model
    . Process model = structured set of activities to accomplish a specific objective.
       - Takes one or more inputs and turns them into defined outputs.
       - Includes roles, responsibilities, tools and management controls.
       - A process may also define or revise policies, standards, guidelines, activities, processes, procedures, and work instructions if they are needed.
-- Process control
     . Planning and regulating a process, with the objective of being effective, efficient and consistent.

5. Measurement Design
-- Cross over with Continual Service Improvement (CSI)
    . If you can't tmeasure it then you can't manage it.
-- Measurement asks : Is the design
    . Fit for purpose
    . at the appropriate level of quality
    . Right first time
    . minimize "rework" & "add-ones"

Service Provider Types
 -- Type I   - Internal Service Provider
 -- Type II  - Shared Service Provider
 -- Type III - External Service Provider

Service Design Packge
 -- Developed for new IT services, Major changes, or IT retirements.
 -- Defines all aspects of an IT service and its requirements for each stage of its lifecycle.

Contents of the Service Design package
 -- Requirements
    . Busness requirements
    . Service applicability
    . Service contacts
 -- Service Design
    . Service functional requirements
    . Service level requirements
    . Service operational management requirements
    . Service design and topology
 -- Organizational readiness assessment
 -- Service lifecycle plan
    . Service program
    . Service transition plan
    . Service operational acceptance plan

Service Design - Processes
. Service Level Management
. Service Catalogue Management
. Capacity Management
. Availability Management
. Service Continuity Management
. Information Security Management
. Supplier Management

Service Level Management

. Objectives   - Ensure clear understanding between customer & IT
   - Proactive enhance level of services
   - Drive customer "satisfaction"

. Scope   - negotiate & agree
      -- Current requirements (SLA)
      -- Future requirements (SLR)
   - Develop & manage
      -- SLA (aligned to targets)
      -- OLAs to support SLAs
   - Review contracts with Suppliers
   - Oversee Service Improvement Plan (SIP)

. Basic concepts
   - Service Level Management (SLM)
     . A communication channel & relationship with appropriate customers & business representatives.
   - Service Level Requirement (SLR)
     . A set of targets and responsibilities documented and agreed prior to a new serice or change
   - Service Level Agreement (SLA)    
     . Written agreement between an IT service provider & the IT customers, defining the key service targets and responsibilities of both parties.
   - Operational Level Agreement (OLA)
     . Agreement between an IT service provider & another part of the same organisation that assists with the provision of services.
   - Underpinning Contract (UC)
     . Formal contract between an IT Service Provider & a Third Party.

   - Service Review
     . Held periodically with customer
     . Review Service Achievement for the last period
     . To discuss issues for the coming period

   - Service Improvement Plan (SIP)    
     . Plan of prioritising improvement actions
     . Covers all sevices and processes
     . Includes Impacts and risks

   - Contract
     . A legally binding agreement between two or more parties.

   - Service Level Agreement Monitoring (SLAM) Chart 
     . Used to give a quick view of SLA's performance at a glance
     . Uses RAG (Red, Amber, Green) colour codes
     . Red: Breached; Orange: Threatened; Gree: Within Target

   - Types of SLA Frameworks    
     . Service-based SLA
       -- SLA covers one services for all customers of that service
     . Customer based SLA
       -- Cover one customer group for all the services they use.
     . Muti-level SLA
       -- Can cover several layers of the organisation
       -- Corporate level
       -- Customer level
       -- Sevice Level

. Key Metrics 
  - Percentage reduction in:
     -- SLA targets threatened
     -- SLA targets missed (minor)
     -- SLA breaches (major)
  - Percentage increase in:
     -- Customer perception & satisfaction of SLA achievements
         . Services reviews
         . Customer Satisfaction Survey responses

. Roles : Service Level Manager
  - Be aware of changing business needs
  - Identify & understand current and future service requirements
  - Responsible for:
    . Service Portfolio
    . Service Catalogue
    . Application Portfolio
  - Enur UC's align with SLA & SLR targets
  - manage relationships with stakeholders, customers, users
  - Measure, record, analyze & improve customer satisfaction.

.Challenges
  -- IT perception to business can be low
  -- Identifying planned services (service portfolio)
  -- Defining the Service Catalogue
  -- Defining IT department relationships (for OLAs)
  -- Identifying contractual relationships (for UCs)

Service Catalogue Management

. Objective
  -- To manage the inforamtion within the Service Catalogue

. Roles:Service Catalogue manager
-- Record existing & new services in Service Catalogue
-- Verify Service Catalogue information is accurate
-- Ensure consistency of Service Catalogue & Service Portfolio information
-- Backup Service Catalogue information & ensure integrity.

Capacity Management

. Objective
-- Produce (and maintain) Capacity Plan
-- Give advice on capacity & performance issues
-- Deliver against performance targets
-- resolve performance & capacity related incidents & problems
-- Assess changes on capacity & performance
-- Implement service improvement measures

. Three sub-processes
-- Business Capacity Management
-- Service Capacity Management
-- Component Capacity Management
. Role : Capacity Manager
-- Ensure adequate IT Capacity
   . Understand capacity requirements, usage and capacity
   . sizing new services & systems (future requirements)
   . Production, review & revision of the Capacity Plan
-- Aligning capacity & demand correctly
-- Optimise existing capacity
-- Set appropriate monitoring levels
   . Performance analysis & reporting
   . Performance & resource optimisation
   . Impact & cost assessment
-- Focal point for capacity & performance issues

Availability Management
.Availability is at the core of user satisfaction.
.Objectives
  -- Produce (and maintain) the Availability Plan
  -- Provide advice & guidance on Availability issues
  -- Ensure service availability targets are met/exceeded
  -- Diagnosis & resolution of availability related incidents & problems
  -- Assess impact of changes on Availability Plan
  -- Ensure proactive measures to improve availability of services

.Basic concepts
  -- Key elements:
      . Reactive activities
      . Proactive activities

  -- Aspects of Availability 
      . Component availability
      . Service availability

  -- Four aspects
      . Availability
      . Reliability
      . Maintainability
      . Serviceability

. Role : Availability Manager
-- Participate in IT infrastructure design
   . Design of new services
   . Availability & recovery design criteria

-- Monitor actual IT availability achieved
   . Check and report availability levels against SLAs

-- Assess and manage risk
-- Review impact of changes on Availability Plan
-- Ensure cost justified levels of IT availability

Service Continuity Management
.Objectives
-- Maintain IT Service Continuity & IT recovery plans
-- Complete Business Impact Analysis (BIA)
-- Consider risks & how to minimize
-- Establish recovery mechanisms
-- Investigate and implement improvement measures.

.Basic concepts
-- Business Continuity Management (BCM)
    . Manages risks that could seriously affect the business
    . Plans for the recovery of Business process should disruption occur
    . Sets the scope and requirement for ITSCM

-- Business Continuity Plan (BCP)
    . plan defining steps required to restore business process after disruption
    . Identifies triggers for invocation, people to be involved, communication, etc
    . ITSCM forms significant patr of Business Continuity plans

-- Business Impact Analysis (BIA)
   . Assesses what impact the business will have should a particular service, process, component, etc, fail.
-- Risk Analysis
   . Assesses what the chances of disaster are.

.Role: ITSCM Manager
-- Connect ITSCM to the BCM process
    . Plans, risks & activities
    . Communication & awareness

-- Develop & maintain continuity awareness
    . Look for danger
    . maintain service continuity plan
    . Ensure IT "preparedness"
    . review third party cintracts

-- establish and manage testing schedule
    . Check conformance to plan & improve

-- Assess change impact on recovery solutions

Inforamtion Security Management
. Objectives
   -- Manage Confidentiality
   -- Maintain Integrity
   -- Ensure Availability
   -- Also focus on  third party exchanges
      . Authenticity & non-repudiation

. Basic concepts
   -- Establish an Information Security Policy
   -- Create a Security framework
   -- manage the Information Security management System (ISMS)

  .ITIL v3 approach to Security
    -- 5 step approach
           1. Control
           2. plan
           3. Implement
           4. Evaluate
           5. Maintain

. Role :  Security manager
-- Information Security Policy & supporting policies
    . Communicate & publish
    . Enforcement
    . Promote

-- Security control & plans
    . Procedures - security controls
    . maintain, review & audit, test

-- review breaches & incidents
    . Impact & volumes

-- Check adherence to Policy

Supplier Management
. Objectives

-- Deliver "value for mony"
-- Align underpinning contracts & customer agreements
-- Mange supplier relationships & performance
-- Negotiate, agree & manage contracts through their lifecycle
-- Maintain supplier policy and Supplier & Contract Database (SCD)

. Supplier
  -- Third Party Responsible for supplying goods or services required to deliver IT services.

. Role : Supplier Manager

-- Work with SLM on SLAs, contracts, agreements,etc.
    . Business alignment
    . Roles & relationships
-- Manage the Supplier & Contracts Database (SCD)
    . Changes to SCD via Change Manage process
    . Impact assessment of supplier changes - CAB
-- Perform supplier review & risk assessment
    . Beware of supplier sub-contractors
    . Ensure value (ROI)
-- Manage Disputes
    .Termination / transfer
    . Reporting & improvement

ITIL Version 3 Foundation - Service Strategy

Value Creation through Services
-- What defines Vlaue?
    @ Business outcomes & customer perception

-- Business outcomes
    @ Can be measured
    @ Typically economic value

-- Perception
    @ What attributes of a service
    @ Customer's self image
    @ Expectations

* Remember customers don't buy services, they buy fulfillment of particular needs!!

The Value of Service Management
-- Transforming Service assets into Strategic assets
    @ Service assets(source of value); customer assets(recipients)
    @ Services have potential to increase performance of customer assets (value)

Goal
-- To improve strategic impact through design, development, implementation and practice of service management:
    @ As an organisational capability
    @ As a strategic asset
--  To ensure the provider can deal with the risks and costs of managing their service offerings.

Generic concepts & definitions
Value of a service : Utility & Warranty
From the customer's perspective, value has two aspects:
-- Utility - fitness for purpose
    . What the customer gets
-- Warranty - fitness for use
    . How the service is delivered

Resources(soft assets) & Capacities(tangible assets)
- Importance of developing distinctive capabilities to retain customers
   . Same resources with different capabilities give competitive advantage.
   Resources : Management, Organization, Processed, Knowledge
       . Direct inputs for production
       . Easier to acquire than capabilities
            -- Finance, Infrastructure, Application, Information
   Capacities : Financial capital, Infrastructure, Applications, Information
       . Coordinate resource
       . Control resources
       . Deploy resource - to create value
       . Capabilities cannot produce value without adequate and appropriate resources

Service Portfolio
-- Describles providers services in term of business value

    . 3 components:
         -- Service Pipeline
         -- Service Catalogue
         -- Retired Services
    . Includes service status
    . Changes to the portfolio are governed by policies
    . Includes third-party services
    . Includes Business Cases

Business Case
- A Decision support and Planning tool
  . Should present
       -- Cost
       -- Expected benefits
  . Likely consequence of action
       -- Positive and negative perspective
  . Consequence can be:
       -- Qualitative (feeling or emotion)
       -- Quantitative (financial analysis)

Business Service Catalogue
-- The customer view of Service Catalogue
    . Includes relationships to business units & business process that rely on IT services.
    . Facilitates development of a more proactive relationship with the customer.

Technical Service Catalogue
-- Underpin Business Service Catalogue - not part of customer view.
    . Relationships to supporting services, shared services, component & Cls necessary to support provision of service to the business.
    . Facilitates development of SLAs, OLAs & underpining agreements"
         -- Identify technology required to support a service
         -- Identify support froups that support componnents.

Service provision always has associated risks..

Service Catalogue
     -- Subset of Service Portfolio
     -- Menu of presently active & approved services
     -- Represents a statement of actual & present capabilities
         . Can be used to develop a solution from one or more services
     -- Acquisition portal for customers
         . Actual pricing, service-level commitment & term of service provision
     -- We see Service Catalogs every day!!

Risk
-- Uncertainty of outcome:
    . Positive opportunity or negative thread
    . Referenced with Probability
-- Risk Management should
    . Be visible, repeatable & consistent
    . Follow a framework
    . Support decision making
-- Risk applies to
    . Security
    . Project Management
    . Business Continuity

Financial Management
  .Quantifies the value of IT Services and Assets underlying the provision of services, and qualifications of operational forecasting, in financial term.
    What would be three distinct activities for Financial Management?
     1. Charging
     2. Accounting
     3. Forecasting

Financial Management - Basic Concepts
-- Service Valuation
    . Assignment of monetary value for services delivered; based on the agreed value of the services
-- Service Portfolio Management
    . Used to make decision if service should be provisioned internally or sourced
-- Service Provisioning optimization (SOP)
    . Analysis provisioning options(e.g. analyse the ROI)
-- Demand Modeling
    . Helping to establish financial mechanisms for managing demand.

Demand Management
 .  Activity Based Demand Management
    -- Business Processed create demand
    -- Patterns of  Business Activity (PBA) influence demand patterns
    -- Each Pattern of Business Activity can be coded
        . Activity level can be determined so capacity can be planned for
        . Each coded PBA is put under Change Control
    --  PBA analysis can occur at a variety of areas
        . Service Design - optimisation of design to suit (predicted) demand
        . Service Catalogue - ability to map demand to appropriate services
        . Service Portfolio - approval of investment/sell-off as pappropriate
        . Service Operation - correct level of support
        . Flnancial Management - incentives/penalties to influence demand
 .  User Profiles(UP)
    -- UP can be people, functions, processed, and applications
        . Based on roles and responsibilities in organization
    -- Associated to several coded Patterns of Business Activities
    -- Capacity usage can be easily determined per User Profile
 .  Challenges
    -- Uncertainty in demand
       . Prevents planning for capacity devivery
    -- Over excess in capacity
       . Costs Service Provider
       . Costs cannot be recovered as there is no value in excess
   -- Insufficient Capacity
       . Result in unavailability and poor performance
   -- Synchronous production and consumption
       . Just-In-Time (JIT) delivery

 .  Demand Manager Role
   -- Create and Manage incentive and penalty schemes
   -- Participate in creation of Service Level Agreements
   -- Monitor overall demand and capacity
   -- Manage capacity potential of individual resources
   -- Respond to changing Patterns of Business Activity (PBA)

A Document from MySkylines, Express Yourself - Issue 07

Friends
How many friends do you have ?  Which do you think is better, having many friends or just a few very close ones? Do you think your friends would stay with you if you were in trouble? you know people say, "A friend can't be known in prosperity." A lot of those who say this claim that their conclusion is based on personal experience of losing a supposed friend when they were in a difficult situation. If so, it seems friendship is more a matter of social convenience than character or shared interest. However, others can point to unexpected support during a serious crisis from someone whom they did not expect to be a good friend. So I guess the question of friendship can cut both ways: in some cases it is mere lip service and in others it is genuine commitment.

cust both ways : have or result in advantages as well as disadvantages
lip service : insincere claims of friendship, admiration, support, etc.
commitment : a strong or firm belief shown by one's actions; loyalty

Comprehension
1. Why do you suppose "a friend can't be known in prosperity"?
2. Who is most likely to say that?
3. Are any counter-examples given? If so, what?

Express Yourself
1. Why do people need to make friends?
2. Is it okay for your spouse to have friends of the opposite sex?
3. How did you meet your best friend?
4. What usually causes trouble between friends?
5. What is the most important thing in maintaining a harmonious friendship?
6. Do you believe the saying, "Out of sight, out of mind"?
7. What's the difference having male and female friends?
8. What's the difference between the friends you made in elementary, middle and high school, and college?
9. Do you tell your friends everything about your private life?

Opinion Samples
1. Friendship often turns soure because of money problems. People think it's okay to lend money to a friend, but when they try to get the money back they become estranged. My point is this:"Lend money to your friend if you want to lose them both."
2. As in marriage, understanding is the most important thing in friendship. Having a friend means that you may often be angry, hurt, even disappointed by your friend. Whenever you are in such a situation, you must be "ready" to understand your friend, however. If not, the friendship will break up sooner than later. Without understanding, you can't overcome the ups and downs of any relationship.

ITIL Version 3 Foundation

WHAT IS ITIL?

• ITIL - Information Technology Infrastructure Library
• A set of books
• Guidance, advice, suggestions....

           -- For IT Service Providers, on how to manage the delivery of IT services to our customers and end users.

• Based on PROCESSS and FUNCTIONS that are necessary
• DESCRIPTIVE FRAMWORK  
• ITIL 核心所談是"服務"並不是技術; ITIL談的是方向,概念, 屬於描述性質並沒有強制性質, 例如ISO20000是強制性質, 實施ISO20000則必需符合並達到規範的標準即要求.

WHAT IS ITIL?

• ITIL v3 is "Good Practice"

               -- Wildspread use
               -- Widely Available

ITIL Qualification Scheme
-- ITIL Foundation
    -- IT Service Management & Service Lifecycle (Understanding)

• Intruducing the Service Lifecycle
• Overview of Core Process Areas 

-- Service Lifecycle
    -- Focus on Core Process Areas  (Implementing)

• Service Strategy
• Service Design
• Service Transition
• Service Operation
• Continual Service Improvement

-- Service Capability                         (Doing)
    -- Logical grouping experties

• Service Offerings and Agreements
• Planning, Protection and Optimisation
• Operational Support and Analysis
• Release, Control and Validation

-- Managing Across the Lifecycle     (Leading)
    -- Senior programme for lesders and those seeking highest certification

Services and the Services Lifecycle
ITIL v3 Library

• Service Strategy (SS)

          1..Focuses on service management as a strategic asset.
          2..Defines standards & policies that will be used to design IT services

• Service Design   (SD)

          1..Creating or modifying services & infrastructure architecture that are aligned to the business needs.

• Service Transition (ST)

          1..Manages the transition of new or changed services into the production environment.

• Service Operation

          1..Effectiveness & Efficinecy in delivery & support.
          2..Advice & guidance on all aspects of managing the day-to-day operation of IT services.

• Continual Service Improvement

          1..Create & maintain value for customers
          2..plan, Do, Check, Act (PDCA)

Services Lifecycle - Process
       Service Strategy

• Strategy Generation
• Service Portfolio Management
• Denamd Management
• IT Financial Management

       Service Design

• Service Catalogue Management
• Service Level Management
• Capacity Management
• Availability Management
• Service Continuity Management
• Information Security Management
• Supplier Management

       Service Transition

• Transition Planning & Support 
• Change Management
• Service Asset & Configguration Management
• Release & Deployment Management
• Service Validation & Testing
• Evaluation
• Knowledge Management

       Service Operation

• Event Management  
• Incident Management
• Request Management
• Problem Management
• Access Management

       Continual Service Improvement

• Service Measurement
• Service Reporting
• Service Improvement

Services Lifecycle - Function

• Service Desk
• Application Management
• Technical Management
• IT Operations

• The process and function represent our Service Management capabilities
• The level of maturity of these processes and functions can affect the credibility of the IT service provider
• Maturity can be measured and improved
• What is a Function? A team or group of people and the tools they use to carry out one or more Processes or Activities. (Example : Service Desk) 一群人以及他們所使用工具執行實現一個或多個流程或活動.---有專業的一群人
• Self-contained, specialised organisation unit with required capabilities & resources, responsible for specific outcomes

          -- Own body of knowledge(experience) & work methods
          -- Beware of functional silos --小心陷入IT 技術的思維

What is Service?
    A means of delivering VALUE to CUSTOMER by facilitating outcomes that they want to achive without the ownership of specific costs and risks

• Service

          -- Improve performance(e.g. ability to process more orders)
          -- Reduce constrains (e.g. lower cost per unit)

• Which leads to -- An increased probability of desired outcomes

What is Service Management
    A set of specialised organisational capabilities for providing value to customers in the form of services.

• Capabilities represented in FUNCTIONS and PROCESSES
• Processes made uo of ACTIVITIES
• Procedures can be explained by WORK INSTRUCTIONS

What is Process
    A set of coordinated activities combining & implementing resources and capabilities in order to produce an outcome, which directly or indirectly, creates value for external customer or stakeholder.
      -- Business processes lead to busness outcomes
      -- Business manager need IT systems that support the business process

     A set of interrelatived activities for the purpose of achieving a pre-defineed goal.

Process Characteristics
      -- Measurable .. Performance driven
      -- Specific Results .. Identifiable outputs
      -- Customer focus .. Delivermpromary output to customer or stakeholder .. internal or external
      -- Respond to specific events .. Traceable to a specific trigger

Process Owner
      -- Responsible to ensure that process is performed according to agreed & documented process and mets the aims  of the process definition.
     
     More tactical
     @ Document & pulish process
     @ Process design
     @ Improving the process
     @ Review enhancement
     @ Define KPIs

     More operational
     @ Reviw KPIs
     @ Address process issues
     @ Training & roles
     @ Review & audit
     @ Ensure staff resources

Service Owner
      -- Responsible to the customer for initiation, transition & ongoing maintenance & support of a particular service.
      @ Primary contract
      @ Ensure that delivery & support meet requirements
      @ Indentify Service Improvement opportunities
      @ Liaise with Process Owner
      @ Accountable to IT Director

       The Service Owner is a primary stakeholder for each process that enables or supports their service

RACI or ARCI

• Accountable
• Responsible
• Consulted
• Informed