The Future of Best Practices

in IT Service Management -
ITIL ® Version 3 Explained
Session 5333
Anthony Orr
Global Best Practice Director
BMC Software

Karla Houser
Presentation Purpose
• Provide an overview of ITIL, concentrating on ITIL V3
• Provide a brief description of the differences between ITIL V2 and V3

Acknowledgement:
• Special thanks to Anthony Orr for the genesis of this presentation. Without his
efforts and help this presentation would not have been possible!
• Any errors or misconceptions are mine and mine alone!!!!

Disclaimer:
• Speaker does not endorse any products/vendors.
• Speaker does not recommend the purchase of any products by the participants.
• Each participant should make up her or his own mind when evaluating the
material.
• The views presented in this presentation are solely those of the speaker and not
those of any company or organization

2
Agenda

• Introducing ITIL
• Defining Service Management
• Defining Process Management
• Examining the Lifecycle Approach
• ITIL Comparison – V2 / V3

3
Introducing ITIL

• Defining ITIL
• Identifying the Goals of ITIL
• Understand good versus best practices
• Review history of ITIL
• Identify the ITIL community

4
Identifying the Goals of ITIL

• Provide “good” practice guidance

for IT Service Management
• Integrate IT to business service
• Create a framework for management
• People
• Processes
• Technology/Product
• Partner/Supplier Relationships
• Improve efficiency
• Facilitate the quality management
of IT services
• Increase cost effectiveness
• Reduce risks
• Focus on the services required by the customer base,
not on the technologies

5
Defining ITIL

• ITIL is Public Domain, vendor agnostic

• ITIL = IT Infrastructure Library

• A framework for IT Service Management
• Establishes “good practices”
• Defines a standard of IT service quality that customers should demand and
providers should seek to supply

• A set of books

6
 What is ITIL
• “Good Practices” determined by industry experts, consultants and practitioners
• Baseline or benchmark
• MBIT (Managing the Business of IT)
• “Real world” applicability
• Been there, done that
• Acknowledges that things can and will go wrong!
• How often do you receive “thank you the system is up” calls?
• Good ideas on how to manage IT
• Customer and business, not technology focused
• Framework - goals, general activities, processes
• Inputs/outputs/relationships documented
• “What” not “how” guidelines
• Provides high level guidance on what should be done
• Not list of procedures, these vary by site
• You develop and implement work-level procedures for daily service delivery and
service support activities to match your unique requirements and internal culture
and change them based on the changing needs of your organization

7
Reviewing the History of ITIL
• U.K. Office of Government Commerce (OGC) owns and
maintains ITIL
• Version 1
• Developed by Central Computer and Telecommunications Agency (CCTA)
• Why - Lack of quality of the IT services procured by the British Government
• Objective – Develop effective & efficient methods for the provisioning of IT
Services
• Released in 1980s
• Approximately 40 books

• Version 2
• Released in 1990s
• 40 books condensed to two core books
• Service Delivery
• Service Support

• Version 3
• Released May 2007
• OGC Statement on ITIL V3
• We recognize that much of ITIL V2 is currently in use and relevant. In this
respect, nothing has changed. V2 is part of V3.
• Greater emphasis on creating business value

8
Reviewing the History of ITIL

• ITIL is the basis for standards recognized industry-wide

• Original Standard BS15000-1 and BS15000-2
• ISO/IEC 20000-1 and 20000-2

9
 ISO 20000
• Aligns with ITIL but is not exactly the same
• Based on ITIL V2
• 2 components
• 20000-1 – Specification
• 20000-2 – Code of Practice
• Specifies the following key process groups
• Service Delivery Processes
• Relationship Processes
• Resolution Processes
• Release Process
• Control Processes
• Corporate certification
• ITIL certifications are individual certifications
• ISO certifications are corporate certifications

10
Relationships between
ITIL, PD00005, BSI15000 and ISO20000

Self-assessment BS15000 Now ISO 20000

workbook available Specification
PD0015
PD0005 Overview
Code of Practice

ITIL Process
Definition

Deployed
In-house procedures Solution

Source: BSI
ITIL & BSI15000/ISO20000 are not “interchangeable”. ITIL sets out the “best practices” that can
assist you in achieving BS15000/ISO20000 service requirements. BS15000/ISO20000 sets the
standards that service management processes should reach for and tests the best practices that
have been adopted.
11
 ITIL adoption

• ITIL adoption increasing especially since the V3 provides a more

practical approach to ITIL implementation
• Not a roadmap
• +170,000 certifications world-wide
• Adoption by global companies with revenues greater than USD 1
billion projected to be 60-70% by 2008 (Forrester Research)
• More of a cultural than a technological change in how you do
business
• Changes to processes
• Documented benefits
• Procter and Gamble publicly attributes nearly $125 million in IT cost savings per
year to the adoption of ITIL, constituting nearly 10% of their annual IT budget.
• Shell Oil utilized ITIL best practices when they overhauled their global desktop
PC consolidation project, encompassing 80,000 desktops. After this project was
completed, they can now do software upgrades in less than 72 hours, potentially
saving 6000 man-days working days and 5 million dollars.

12
Understanding “Good” versus “Best”
Practices

• A Best practice is an innovation

• A Good practice is
• A best practice that has endured the test of time
• A generally accepted principle

• Best practices that have become good practices

• The use of seatbelts in automobiles

• Good Practices become best practices when applied with

specificity to your environment

13
Identifying the ITIL Community

14
Defining Service Management

• Define services
• Apply the service definition
• Define service management
• Integrate IT with the business
• Define processes, functions, and roles
• Identify the Service Owner

15
Defining a Service

• Service
• Means of delivering value to customers
• Facilitates the outcomes customers want to achieve
• Doesn’t ask the customer to own specific costs and risks
• Not an SOA Service
• Discreetly defined set of contiguous and autonomous business or
technical functionality
• SOA services are stand-alone units of functionality that work together

• ITIL Service – business process or function

• SOA Service – business oriented reusable unit of functionality

16
Integrating IT with the Business

• ITIL V3 is about integrating IT with the business

• Helps reduce the distinction between IT and the business
• Introduces the language of the business into IT related concepts
• Allows organizations to make IT related decisions based on business
impact

• Services are managed through the principles of Service

Management

• Service Management
• The set of processes and functions that are used to provide services
• Note: ITIL refers to these functions and processes as “Organizational
Capabilities”

17
Defining IT Service Management

• Processes, methods, functions, roles and activities that a

service provider uses to enable the deliver of IT services to
their customers
• Includes applications and infrastructure as well as
processes for delivering these
• Services defined from a customer’s perspective, not IT’s
perspective
Principles of IT Service Management
• Establishment of QoS (Quality of Service) measures based on customer
expectations and desired results
• IT understands business lingo
• KRA (Key Result Area) “Revenue”
• KPT (Key Performance Target) “$xM in 2008”
• KPI (Key Performance Indicator) “$1M in March”
• VBF (Vital Business Function) “Loan Processing”

• Catalog of products/services in customer-centric terms stating current

(and planned) capabilities
• Management of both services and infrastructure
• Exploiting proven best practices
• Calculate the true CoS (Cost of Services) including IT
• Selectively improve QoS and establish reputation of ongoing excellent
service
19
Identifying IT Service Management
People

• Strategic
• Executive management
• External consultant
• Internal IT advisor

• Tactical
• Project manager, service manager, IT program manager
• Security officer, accountant, auditor, purchasing agent

• Operational
• Internal and external service providers
• Software developer, software supplier

20
Identifying the Service Owner Role

• Service Owner
• Accountable for a specific service within an organization
• Regardless of where the underpinning technology components,
processes, or professional
capabilities reside

• Responsible to the customer for the initiation, transition, and

ongoing maintenance and support of the service

21
Identifying Service Owner
Responsibilities

• Responsibilities of the Service Owner include:

• Provide input into service attributes such as
• Performance
• Availability
• Represent the service across the organization
• Understand the service
• Components, etc.
• Represent the service in Change Advisory Board meetings

• Service Owners work with the owners of the processes that

support their services
• Processes are controlled by Process Owners and Process
Managers through Process Management

22
Defining Process Management

• Definition of a process
• Identify processes
• Identify process control
• Define the Deming Cycle

23
Reviewing the Definition of a Process

• Process
• A structured set of activities
designed to accomplish a
specific objective
• Takes one or more defined
inputs and turns them into
defined outputs
• May include any of the roles,
responsibilities, tools, and
management controls required
to reliably deliver the outputs
• May define policies,
standards, guidelines,
activities, and work
instructions if necessary

24
Identifying Processes

• Processes should be:

• Triggered by a specific event
• Repeatable
• Manageable
• Measurable
• Deliver a specific result
• Effective
• Deliver the desired outcome to the customer or stakeholder
• Efficient
• Performed with minimal effort and cost

25
Identifying Process Control

• Process control is:

• The procedure of planning and regulating steps in a process, with the objective of
performing the process in an effective and efficient way

• Process control is aided by:

• Process Owner and Process Manager
• Process Models
• A documented workflow that provides guidance on performing the process
• Enables understanding and helps to articulate distinctive process features
• Deming Cycle
• Plan – Do – Check – Act
• Plan – Establish objectives and processes to deliver results based on
specifications
• Do – Implement the process
• Check – Monitor and evaluate the processes and results against objectives
• Act – Modifying the process to improve before its next implementation

26
 Defining the Deming Cycle

©Crown Copyright 2007 Reproduced under license from OGC

27
Defining Process, Function, and Role

• Process
• A structured set of activities designed to accomplish a specific objective
• A process can include any of the roles, responsibilities, tools, and
management controls required to reliably deliver the desired outputs

• Function
• A team or group of people and the tools they use to carry out one or more
processes or activities

• Role
• A set of responsibilities, activities, and authorities granted to a person or
team
• A role is defined in a process

28
Identifying the Process Owner and
Manager Roles

• Process Manager
• Responsible for operational management of a process
• Plans activities required to carry out and monitor the process
• There may be several Process Managers for one process
• Is often the process owner

• Process Owner
• Ensures that a process is fit for purpose
• Sponsors and designs the process
• Ensures that appropriate process documentation is available and current
• Defines appropriate policies and standards
• Periodically audits the process

29
Applying the Process, Function, and
Role Definitions

30
Examining the Lifecycle Approach

• Identify the Service Lifecycle

• Define Service Strategy
• Define Service Design
• Define Service Transition
• Define Service Operations
• Define Continual Service Improvement
• Identify Complementary Ideas

31
Identifying the Service Lifecycle

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

32
 5 Stages of the Service Lifecycle
• Service Strategies (SS)
• What services should be offered and to whom
• Strategy Generation, Financial Management, Service Portfolio Management,
Demand Management

• Service Design (SD)

• Design services to meet agreed to business outcomes, including security and
risk management
• Service Catalog Management, Service Level Management, Capacity
Management, Availability Management, IT Service Continuity Management,
Information Security Management, Supplier Management

• Service Transition (ST)

• Facilitate effective and efficient use of services, including support for
extreme/abnormal circumstances
• Transition Planning and Support, Change Management, Service Asset and
Configuration Management, Release and Deployment Management, Service
Validation and Testing, Evaluation, Knowledge Management

33
 5 Stages of the Service Lifecycle
(cont.)
• Service Operations (SO)
• Day-to-day delivery of services, including event management
• Event Management, Incident Management, Request Fulfillment,
Problem Management, Access Management

• Continual Service Improvement (CSI)

• Maintaining value for customers through continual evaluation and
improvement of service quality
• 7-Step Improvement Process, Service Measurement, Service
Reporting

34
Defining Service Strategy

• Provides guidance for designing, developing, and implementing

service management
• Not only as an organizational capability but as a strategic asset

• Audience
• CIOs
• IT Managers
• Consultants
• Practitioners
• Vendors

35
Service Strategy Processes

Service Knowledge
Management
System Financial
Management

Service
Service Portfolio
Portfolio Management

Demand
Management

36
Defining Service Design

• Provides guidance for the design and development of services

and service management processes
• Audience
• IT Managers
• Consultants
• Practitioners
• Outsourcers
• Vendors

37
Service Design Processes

Capacity
Capacity Management
Service Knowledge
Management Management Information
System System

Availability
Supplier & Supplier Availability Management
Contract Management Management Information
Database
System

Service Information Security

Service Level Management
Portfolio Security
Management Information
Management
System
Service Service Knowledge
Service Catalogue Management
Catalogue Management System
IT Service
Continuity
Management

38
Defining Service Transition

• Provides guidance for transitioning new and changed services

into operations
• Audience
• IT Managers
• Consultants
• Practitioners
• Outsourcers
• Vendors

39
Service Transition Processes

Service Knowledge Knowledge

Management Management
System

Service Asset
Configuration and
Management Configuration
System Management

Release and
Service Testing
Deployment
and Validation
Management

Transition
Change
Planning and
Management
Support

Evaluation

40
Defining Service Operation

• Provides guidance on achieving effectiveness and efficiency in

the delivery and support of services, ensuring value for the
customer and the service provider
• Audience
• IT Managers
• Consultants
• Practitioners
• Outsourcers
• Vendors

41
Service Operation Functions and
Processes
Event
Management
Application
Management Service Knowledge
Management System

Technical Incident
Service Desk
Management Management
Configuration
IT Operations Management
Management System

Request Problem
IT Operations Fulfillment Management
Control Known Error
Database

Facilities
Management
Access
Management

42
Defining Continual Service Improvement

• Provides guidance in creating and maintaining value for

customers through better design, introduction, and operation of
services
• Audience
• IT Managers
• Consultants
• Practitioners
• Outsourcers
• Vendors

43
Continual Service Improvement
Processes

Service Service Level Incident

Service Reporting
Measurement Management Management

44
Identifying Complementary Ideas

CMMI CORE ISO/IEC

20000
TOGAF
ISO/IEC
eTOM 20000
Six Sigma SOX
PMBOK Certified
Training
PRINCE2
ISO/IEC
SOA 17799

COBIT ISO/IEC
19770
M_o_R
45
ITIL V2 / ITIL V3 Comparison

• Business Alignment / Service Lifecycle

• Comparison

46
ITIL V2 and ITIL V3 Focuses

• ITIL V2 = IT-to-Business alignment

• Core Books
• Service Support
• Service Delivery
• Support Books
• ICT Infrastructure Management
• Applications Management
• Security Management
• Business Perspective
• Planning to Implement Service Management

• ITIL V3 = Lifecycle approach

• Service Strategies: deciding on the services
• Service Design: requirements & design
• Service Transition: deployment & activation
• Service Operations: day-to-day operations
• Continual Service Improvement: how to
improve

47
ITIL V2 / V3 Comparison

• All of the main processes from ITIL V2 still exist

• Some may appear to be “hidden” or moved

• ITIL V3 often offers revised and enhanced process

descriptions
• Greater emphasis on producing value for the business

• Service Lifecycle structure is new

48
ITIL V2 / V3 Comparison –
Service Strategy and CSI

• Service Strategy
• Service Portfolio Management
• Managing services as a portfolio new with ITIL V3
• Financial Management
• Mainly unchanged
• Was part of Service Delivery in ITIL V2
• Demand Management
• Was a part of Capacity Management in ITIL V2

• Continual Service Improvement (CSI)

• New emphasis in ITIL V3 (new book) with dedicated processes for
service and process evaluation and improvement

49
ITIL V2 / V3 Comparison –
Service Design
• Service Catalog
• Catalog management is new with ITIL V3
• Distinctions between Business Services and Supporting Services clarified
• Service Level Management
• Mainly unchanged
• Service Review now a part of CSI
• Risk Management
• Still no dedicated process
• Capacity Management
• Mostly unchanged, Demand Management moved to Service Strategy
• Availability Management
• Unchanged
• IT Service Continuity Management
• Unchanged

50
ITIL V2 / V3 Comparison –
Service Design (cont.)
• IT Security Management
• Now a part of Service Design
• Updated for security and better integration into the Service Lifecycle
• Compliance Management
• Still no dedicated process
• IT Architecture Management
• Not clearly called out
• Supplier Management
• Now part of Service Design

51
ITIL V2 / V3 Comparison –
Service Transition

• Change Management
• Unchanged
• Project Management
• New “Transition Planning and Support” process
• References to PRINCE2 (Projects IN Controlled Environments), PMBOK
(Project Management Body Of Knowledge), etc.
• Release and Deployment Management
• Same as Release Management in ITIL V2
• Service Validation and Testing
• New in ITIL V3
• Application Development and Customization
• Not covered in ITIL V3
• Knowledge Management
• New in ITIL V3

52
ITIL V2 / V3 Comparison –
Service Operation

• Event Management
• Greater focus in ITIL V3
• Incident Management
• Unchanged except that Service Requests are in a new process
• Request Fulfillment
• New in ITIL V3
• Service Requests
• Access Management
• New in ITIL V3
• Problem Management
• Unchanged
• IT Operations Management
• More detailed in ITIL V2
• IT Facilities Management
• More detailed in ITIL V2

53
SHARE in San Jose IT Service
Management Sessions
Sunday Monday Tuesday Wednesday Thursday Friday
8:00

9:30 5311 3442

Technology Futures: ITIL Processes and Subway
IBM's Perspective Maps

11:00 5230 5301

Tivoli Service ITECH Project
Management for System Wrap-up And
z Project Planning

1:30 5315 5320 5330

CSI San Jose: ITIL V3 Software Accessibility - It's
A Multi-Vendor Effort to
Continual Service the Law
Standardize CMDB Improvement Principles
Interfaces

3:00 5300 5333

ITECH Project The Future of Best
Opening Practices in IT Service
Management - ITIL
Version 3 Explained
5215
Federated Metadata
Management
5115
Best in Class: SAM
Practices in a Changing
Software Industry
4:30 5246
IBM Tivoli Business
Continuity Process
Manager
2516
SLM/SBSM & IT Business
Alignment

54
 Useful Links
• Helpful sites and additional information
• http://wiki.en.it-processmaps.com/index.php/Main_Page
• http://www.best-management-practice.com/officialsite.asp?DI=575004&FO=1230366 (glossary)
• http://en.wikipedia.org/wiki/Information_Technology_Infrastructure_Library
• http://web.inter.nl.net/users/pwilkins/
• http://www.itil-officialsite.com/home/home.asp
• http://itil.technorealism.org/
• http://www.itilsurvival.com/ITInfrastructureLibrary.html
• www.itil-itsm-world.com
• http://www.nextslm.org/itil/itil_basics.htm
• http://www.bs15000.org.uk/
• http://www.best-management-
practice.com/gempdf/itSMF_An_Introductory_Overview_of_ITIL_V3.pdf
• http://www.fortunecity.co.uk/business/bear/725/itilfountain/problemmanagement.html
• http://www.skillsoft.com/products/documents/ITIL.PDF
• http://www.bs15000.org.uk/delivery.htm
• http://www.itsmf.net/mc/page.do?sitePageId=2993
Scroll to “complimentary publications” “free” downloads

• Also check vendor websites

55
Questions?

Thank You!