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Looking forward to continuing in this partnership as our employees grow into the leadership potential we value at Microsoft. All three To understand what service management is, we need to understand what services are, and how service management can help service providers to deliver and manage these services. A service is a means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks.
The outcomes that customers want to achieve are the reason why they purchase or use the service. The value of the service to the customer is directly dependent on how well it facilitates these outcomes. Service management is what enables a service provider to understand the services they are providing, to ensure that the services really do facilitate the outcomes their customers want to achieve, to understand the value of the services to their customers, and to understand and manage all of the costs and risks associated with those services.
Service Management is a set of specialized organizational capabilities for providing value to customers in the form of services. They include all of the processes, methods, functions, roles and activities that a Service Provider uses to enable them to deliver services to their customers. Service management is concerned with more than just delivering services.
Each service, process or infrastructure component has a lifecycle, and service management considers the entire lifecycle from strategy through design and transition to operation and continual improvement.
The outputs are the services that provide value to the customers. Effective service management is itself a strategic asset of the service provider, providing them with the ability to carry out their core business of providing services that deliver value to customers by facilitating the outcomes customers want to achieve.
Adopting good practice can help a service provider to create an effective service management system. Good practice is simply doing things that have been shown to work and to be effective. Some of these benefits include: I increased user and customer satisfaction with IT services I improved service availability, directly leading to increased business profits and revenue I financial savings from reduced rework, lost time, improved resource management and usage I improved time to market for new products and services I improved decision making and optimized risk.
Its early use was principally confined to the UK and Netherlands. A second version of ITIL was published as a set of revised books between and The initial version of ITIL consisted of a library of 31 associated books covering all aspects of IT service provision. This initial version was then revised and replaced by seven, more closely connected and consistent books ITIL V2 consolidated within an overall framework.
This second version became universally accepted and is now used in many countries by thousands of organizations as the basis for effective IT service provision.
A sixth book, the Official Introduction, offers an overview of the five books and an introduction to IT Service Management as a whole. It is intended that the content of these core books will be enhanced by additional complementary publications and by a set of supporting web services Figure 2.
All service solutions and activities should be driven by business needs and requirements. Within this context they must also reflect the strategies and policies of the service provider organization, as indicated in Figure 3. These requirements are identified and agreed within the Service Strategy stage within a Service Level Package SLP and a defined set of business outcomes.
This passes to the Service Design stage where a service solution is produced together with a Service Design Package SDP containing everything necessary to take this service through the remaining stages of the lifecycle.
Wherever possible, Continual Service Improvement identifies opportunities for the improvement of weaknesses or failures anywhere within any of the lifecycle stages. Therefore, to be successful, the services provided must be perceived by the customer to deliver sufficient value in the form of outcomes that the customer wants to achieve. Achieving a deep understanding of customer needs, in terms of what these needs are, and when and why they occur, also requires a clear understanding of exactly who is an existing or potential customer of that service provider.
This, in turn, requires the service provider to understand the wider context of the current and potential market places that the service provider operates in, or may wish to operate in.
A service strategy can not be created or exist in isolation of the over-arching strategy and culture of the organization that the service provider belongs to.
The service provider may exist within an organization solely to deliver service to one specific business unit, to service multiple business units, or may operate as an external service provider serving multiple external businesses.
Irrespective of the context in which the service provider operates, its service strategy must also be based upon a clear recognition of the existence of competition, an awareness that each side has choices, and a view of how that service provider will differentiate itself from the competition. All providers need a service strategy. It sets out guidance to all IT service providers and their customers, to help them operate and thrive in the long term by building a clear service strategy, i.
The four Ps of Strategy: I perspective: the distinctive vision and direction I position: the basis on which the provider will compete I plan: how the provider will achieve their vision I pattern: the fundamental way of doing things — distinctive patterns in decisions and actions over time. Competition and Market Space: I every service provider is subject to competitive forces I all service providers and customers operate in one or more internal or external market spaces.
The service provider must strive to achieve a better understanding than its competitors of the dynamics of the market space, its customers within it, and the combination of critical success factors that are unique to that market space.
Service Provider Types: I Type I: exists within an organization solely to deliver service to one specific business unit I Type II: services multiple business units in the same organization I Type III: operates as an external service provider serving multiple external customers. Critical Success Factors CSFs : the identification, measurement and periodic review of CSFs to determine the service assets required to successfully implement the desired service strategy.
Service Oriented Accounting: using financial management to understand services in terms of consumption and provisioning, and achieve translation between corporate financial systems and service management. Considerations include: I Organizational Development Stages: delivering services through network, direction, delegation, coordination or collaboration depending on the evolutionary state of the organization I Sourcing Strategy: making informed decisions on service sourcing in terms of internal services, shared services, full service outsourcing, prime consortium or selective outsourcing I Service Analytics: using technology to help achieve an understanding of the performance of a service through analysis I Service Interfaces: the mechanisms by which users and other processes interact with each service I Risk Management: mapping and managing the portfolio of risks underlying a service portfolio.
It provides the business and IT with the quantification, in financial terms, of the value of IT services, the value of the assets underlying the provisioning of those services, and the qualification of operational forecasting. Many parts of the organization interact to generate and use IT financial information; aggregating, sharing and maintaining the financial data they need, enabling the dissemination of information to feed critical decisions and activities.
Service Portfolio Management SPM SPM involves proactive management of the investment across the service lifecycle, including those services in the concept, design and transition pipeline, as well as live services defined in the various service catalogues and retired services. SPM is an ongoing process, which includes the following: I Define: inventory services, ensure business cases and validate portfolio data I Analyze: maximize portfolio value, align and prioritize and balance supply and demand I Approve: finalize proposed portfolio, authorize services and resources I Charter: communicate decisions, allocate resources and charter services.
Demand Management Demand management is a critical aspect of service management. Poorly managed demand is a source of risk for service providers because of uncertainty in demand. Excess capacity generates cost without creating value that provides a basis for cost recovery.
The purpose of Demand Management is to understand and influence customer demand for services and the provision of capacity to meet these demands. At a strategic level this can involve analysis of patterns of business activity and user profiles.
At a tactical level it can involve use of differential charging to encourage customers to use IT services at less busy times. A Service Level Package SLP defines the level of utility and warranty for a Service Package and is designed to meet the needs of a pattern of business activity. BRMs work closely with the Product Managers to negotiate productive capacity on behalf of customers. I Product Manager PM : PMs take responsibility for developing and managing services across the life-cycle, and have responsibilities for productive capacity, service pipeline, and the services, solutions and packages that are presented in the service catalogues.
I Chief Sourcing Officer CSO : the CSO is the champion of the sourcing strategy within the organization, responsible for leading and directing the sourcing office and development of the sourcing strategy in close conjunction with the CIO.
The role of Service Design within the business change process can be defined as: The design of appropriate and innovative IT services, including their architectures, processes, policies and documentation, to meet current and future agreed business requirements. Key Principles Service Design starts with a set of business requirements, and ends with the development of a service solution designed to meet documented business requirements and outcomes and to provide a Service Design Package SDP for handover into Service Transition.
There are 5 individual aspects of Service Design: I new or changed service solutions I service management systems and tools, especially the Service Portfolio I technology architectures and management systems I processes, roles and capabilities I measurement methods and metrics.
Good service design is dependent upon the effective and efficient use of the Four Ps of Design: I people: the people, skills and competencies involved in the provision of IT services I products: the technology and management systems used in the delivery of IT services I processes: the processes, roles and activities involved in the provision of IT services I partners: the vendors, manufacturers and suppliers used to assist and support IT service provision.
Key Processes and Activities Service Catalogue Management SCM The Service Catalogue provides a central source of information on the IT services delivered to the business by the service provider organization, ensuring that business areas can view an accurate, consistent picture of the IT services available, their details and status.
The purpose of Service Catalogue Management SCM is to provide a single, consistent source of information on all of the agreed services, and ensure that it is widely available to those who are approved to access it. The main input for this information comes from the Service Portfolio and the business via either the Business Relationship Management or the Service Level Management processes.
Service Level Management SLM SLM negotiates, agrees and documents appropriate IT service targets with the business, and then monitors and produces reports on delivery against the agreed level of service. Capacity Management Capacity Management includes business, service and component capacity management across the service lifecycle. A key success factor in managing capacity is ensuring that it is considered during the design stage. The purpose of Capacity Management is to provide a point of focus and management for all capacity and performance-related issues, relating to both services and resources, and to match the capacity of IT to the agreed business demands.
Information contained within the CMIS is stored and analyzed by all the sub-processes of Capacity Management for the provision of technical and management reports, including the Capacity Plan. Availability Management The purpose of Availability Management is to provide a point of focus and management for all availability-related issues, relating to services, components and resources, ensuring that availability targets in all areas are measured and achieved, and that they match or exceed the current and future agreed needs of the business in a cost-effective manner.
Availability Management should take place at two inter-connected levels and aim to continually optimize and proactively improve the availability of IT services and their supporting organization. There are two key aspects: I reactive activities: monitoring, measuring, analysis and management of events, incidents and problems involving service unavailability I proactive activities: proactive planning, design, recommendation and improvement of availability. The Availability Management process should be based around an Information System AMIS that contains all of the measurements and information required to provide the appropriate information to the business on service levels.
This is achieved by introducing risk reduction measures and recovery options. On- going maintenance of the recovery capability is essential if it is to remain effective.
The purpose of ITSCM is to maintain the appropriate on-going recovery capability within IT services to match the agreed needs, requirements and timescales of the business. ITSCM includes a series of activities throughout the lifecycle to ensure that, once service continuity and recovery plans have been developed, they are kept aligned with Business Continuity Plans and business priorities. This can be accomplished by the regular completion of Business Impact Analysis and Risk Management exercises.
ISM should maintain and enforce an overall policy, together with a set of supporting controls within an integrated Security Management Information System SMIS , aligned with business security policies and strategies. Supplier Management The Supplier Management process ensures that suppliers and the services they provide are managed to support IT service targets and business expectations.
The purpose of the Supplier Management process is to obtain value for money from suppliers and to ensure that suppliers perform to the targets contained within their contracts and agreements, while conforming to all of the terms and conditions. The Supplier and Contract Database SCD is a vital source of information on suppliers and contracts and should contain all of the information necessary for the management of suppliers, contracts and their associated services.
Key Service Design stage activities I Business requirements collection, analysis and engineering to ensure they are clearly documented. I Design and development of appropriate service solutions, technology, processes, information and measurements. I Production and revision of all design processes and documents involved in Service Design. I Liaison with all other design and planning activities and roles.
I Risk management of all services and design processes. I Alignment with all corporate and IT strategies and policies. Service Transition delivers this by receiving the Service Design Package from the Service Design stage and delivering into the Operational stage every necessary element required for ongoing operation and support of that service. If business circumstances, assumptions or requirements have changed since design, then modifications may well be required during the Service Transition stage in order to deliver the required service.
It needs to ensure that the service can operate in foreseeable extreme or abnormal circumstances, and that support for failure or errors is available. I Establishing a formal policy and common framework for implementation of all required changes - consistency and comprehensiveness ensure that no services, stakeholders, occasions etc. I Supporting knowledge transfer, decision support and re-use of processes, systems and other elements — effective Service Transition is delivered by involving all relevant parties, ensuring appropriate knowledge is available and that work done is reusable in future similar circumstances.
I Ensuring involvement of Service Transition and Service Transition requirements throughout the service lifecycle. Key Processes and Activities Within the Service Transition process set, some of the processes most important to Service Transition are whole lifecycle processes and have impact, input and monitoring and control considerations across all lifecycle stages. Change Management Change Management ensures that changes are recorded, evaluated, authorized, prioritized, planned, tested, implemented, documented and reviewed in a controlled manner.
The purpose of the Change Management process is to ensure that standardized methods are used for the efficient and prompt handling of all changes, that all changes are recorded in the Configuration Management System and that overall business risk is optimized. The process addresses all service change. A Service Change is the addition, modification or removal of an authorised, planned or supported service or service component and its associated documentation.
The purpose of SACM is to identify, control and account for service assets and configuration items CI , protecting and ensuring their integrity across the service lifecycle. The scope of SACM also extends to non-IT assets and to internal and external service providers, where shared assets need to be controlled. This delivers: I more efficient services with improved quality I clear and common understanding of the value provided by services I relevant information that is always available.
At the heart of Knowledge Management is the Data-Information-Knowledge- Wisdom structure, condensing raw — and unusable — data into valuable assets. This is illustrated by the Service Knowledge Management System, holding relevant information and wisdom derived from Asset and Configuration Data. Transition Planning and Support The goals of Transition Planning and Support are to: I plan and coordinate resources to ensure that the requirements of Service Strategy encoded in Service Design are effectively realized in Service Operations I identify, manage and control the risks of failure and disruption across transition activities.
Release and Deployment Management The goal of the Release and Deployment Management process is to assemble and position all aspects of services into production and establish effective use of new or changed services.
Effective release and deployment delivers significant business value by delivering changes at optimized speed, risk and cost, and offering a consistent, appropriate and auditable implementation of usable and useful business services. All services — whether in-house or bought-in — will need to be tested appropriately, providing validation that business requirements can be met in the full range of expected situations, to the extent of agreed business risk. The service is tested explicitly against the utilities and warranties set out in the service design package, including business functionality, availability, continuity, security, usability and regression testing.
Evaluation Ensuring that the service will be useful to the business is central to successful Service Transition and this extends into ensuring that the service will continue to be relevant by establishing appropriate metrics and measurement techniques.
Evaluation considers the input to Service Transition, addressing the relevance of the service design, the transition approach itself, and the suitability of the new or changed service for the actual operational and business environments encountered and expected. These have wider applicability than Service Transition and comprise: I managing communications and commitment across IT Service Management I managing organizational and stakeholder change I stakeholder management I organization of Service Transition and key roles.
Key Roles and Responsibilities The staff delivering Service Transition within an organization must be organized for effectiveness and efficiency, and various options exist to deliver this. It is not anticipated that a typical organization would consider a separate group of people for this role, rather there is a flow of experience and skills — meaning the same people may well be involved in multiple lifecycle stages. It is only during this stage of the lifecycle that services actually deliver value to the business, and it is the responsibility of Service Operation staff to ensure that this value is delivered.
It is important for Service Operation to balance conflicting goals: I internal IT view versus external business view I stability versus responsiveness I quality of service versus cost of service I reactive versus proactive activities. For each of these conflicts, staff must maintain an even balance, as excessive focus on one side of any of these will result in poor service. If these are within normal ranges, the system or service is healthy. This leads to a reduction in the cost of monitoring, and enables staff to focus on areas that will lead to service success.
Key processes and activities Event Management Process An event is a change of state that has significance for the management of a configuration item or IT service.
An event may indicate that something is not functioning correctly, leading to an incident being logged. Events may also indicate normal activity, or a need for routine intervention such as changing a tape.
Event management depends on monitoring, but it is different. Event management generates and detects notifications, whilst monitoring checks the status of components even when no events are occurring. After an event has been detected it may lead to an Incident, Problem or Change, or it may simply be logged in case the information is needed.
Response to an event may be automated or may require manual intervention. If actions are needed then a trigger, such as an SMS message or an incident being automatically logged, can alert support staff. Failure of a configuration item that has not yet impacted service is also an incident.
The purpose of Incident Management is to restore normal service as quickly as possible, and to minimize the adverse impact on business operations.
Incidents are often detected by event management, or by users contacting the service desk. Incidents are categorized to identify who should work on them and for trend analysis, and they are prioritized according to urgency and business impact. If an incident cannot be resolved quickly, it may be escalated.
Functional escalation passes the incident to a technical support team with appropriate skills; hierarchical escalation engages appropriate levels of management. After the incident has been investigated and diagnosed, and the resolution has been tested, the Service Desk should ensure that the user is satisfied before the incident is closed.
An Incident Management tool is essential for recording and managing incident information. Request Fulfillment Process A service request is a request from a user for information or advice, or for a standard change, or for access to an IT service.
All requests should be logged and tracked. The process should include appropriate approval before fulfilling the request. Access Management Process The purpose of the Access Management process is to provide the rights for users to be able to access a service or group of services, while preventing access to non-authorized users. Access Management helps to manage confidentiality, availability and integrity of data and intellectual property. Access Management is concerned with identity unique information that distinguishes an individual and rights settings that provide access to data and services.
The process includes verifying identity and entitlement, granting access to services, logging and tracking access, and removing or modifying rights when status or roles change. Problem Management Process A problem is a cause of one or more incidents. The cause is not usually known at the time a problem record is created, and the problem management process is responsible for further investigation. The key objectives of Problem Management are to prevent problems and resulting incidents from happening, to eliminate recurring incidents and to minimize the impact of incidents that cannot be prevented.
Problem Management includes diagnosing causes of incidents, determining the resolution, and ensuring that the resolution is implemented.
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