I T I L ® FA C T S H E E T S FOREWORD Thank you for your interest in our ITIL® Factsheets. These process factsheets have been very helpful to many of our clients in preparing for their ITIL Service Management Practices certification exams and in their daily jobs. This version of the factsheets is based on ITIL v3 and will give you the most up-to-date information about the framework. It also offers an overview of the inter-process relationships: vital information for everyone who needs to fully understand the benefits of the ITIL® framework. The strength of the ITIL® framework and the Service Lifecycle is not in the individual processes, but in the synergy and structure they create together to support the IT Service Management organization. I am certain that you will enjoy these factsheets and refer back to them over and over again. Regards Ivanka Menken Executive Director The Art of Service Pty Ltd http://www.theartofservice.com/ Notice of Rights: © The Art of Service. All rights reserved. No part of this book may be reproduced or transmitted in any form by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Notice of Liability: The information in this book is distributed on an “As Is” basis without warranty. While every precaution has been taken in the preparation of the book, neither the author nor the publisher shall have any liability to any person or entity with respect to any loss or damage caused or alleged to be caused directly or indirectly by the instructions contained in this book or by the products described in it. Trademarks: Many of the designations used by manufacturers and sellers to distinguish their products are claimed as trademarks. Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations appear as requested by the owner of the trademark. 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Copyright The Art of Service 2 Brisbane, Australia │ Email: [email protected] │Web: http://theartofservice.com │eLearning: http://theartofservice.org Phone: +61 (0)7 3252 2055 TABLE OF CONTENTS FOREWORD .............................................................................................. 1 Write a Review & Receive a Bonus Emereo eBook of Your Choice: Up to $99 RRP FREE! ......................................................................................... 2 TABLE OF CONTENTS ................................................................................ 3 Service Strategy Processes ...................................................................... 4 FINANCIAL MANAGEMENT FOR IT SERVICES ........................................... 5 SERVICE PORTFOLIO MANAGEMENT ...................................................... 10 DEMAND MANAGEMENT ....................................................................... 16 Service Design Processes ....................................................................... 20 SERVICE CATALOGUE MANAGEMENT ..................................................... 21 SERVICE LEVEL MANAGEMENT .............................................................. 25 CAPACITY MANAGEMENT ...................................................................... 30 AVAILABILITY MANAGEMENT ................................................................ 35 IT SERVICE CONTINUITY MANAGEMENT ................................................. 40 INFORMATION SECURITY MANAGEMENT ................................................ 45 SUPPLIER MANAGEMENT ...................................................................... 51 Service Transition Processes .................................................................. 56 TRANSITION PLANNING AND SUPPORT .................................................. 57 CHANGE MANAGEMENT ........................................................................ 59 SERVICE ASSET AND CONFIGURATION MANAGEMENT ............................. 64 RELEASE & DEPLOYMENT MANAGEMENT ................................................ 69 SERVICE VALIDATION & TESTING ......................................................... 74 EVALUATION ...................................................................................... 79 KNOWLEDGE MANAGEMENT ................................................................. 80 Service Operation Functions .................................................................. 84 SERVICE DESK FUNCTION .................................................................... 85 TECHNICAL MANAGEMENT FUNCTION .................................................... 89 IT OPERATIONS MANAGEMENT FUNCTION.............................................. 92 APPLICATION MANAGEMENT FUNCTION ................................................. 95 Service Operation Processes .................................................................. 98 EVENT MANAGEMENT .......................................................................... 99 INCIDENT MANAGEMENT .................................................................... 104 REQUEST FULFILLMENT ..................................................................... 109 PROBLEM MANAGEMENT .................................................................... 113 ACCESS MANAGEMENT ...................................................................... 118 CSI Processes ...................................................................................... 122 THE 7-STEP IMPROVEMENT PROCESS .................................................. 123 SERVICE MEASUREMENT AND REPORTING ........................................... 127 GLOSSARY ............................................................................................ 131 Copyright The Art of Service 3 Brisbane, Australia │ Email: [email protected] │Web: http://theartofservice.com │eLearning: http://theartofservice.org Phone: +61 (0)7 3252 2055 service strategy Service Strategy Processes This section contains the factsheets for: • Financial Management for IT Services • Service Portfolio Management • Demand Management Copyright The Art of Service 4 Brisbane, Australia │ Email: [email protected] │Web: http://theartofservice.com │eLearning: http://theartofservice.org Phone: +61 (0)7 3252 2055 service strategy FINANCIAL MANAGEMENT FOR IT SERVICES Why It is vital to have a Financial Management process implemented. Control of IT spending is fundamental to the effective and efficient running of an IT organization. The IT Services market can be divided by the primary methods of purchases made by end-users and service providers:  Discrete — Project-specific contractual arrangement, with a predetermined scope of work to be completed within a given time period; and  Outsourcing — Annuity-based contractual arrangement that details how an organization will provide services on an ongoing basis at a specified level of competency. Outsourcing arrangements usually last between two and five years, but may be either shorter or longer. Objective  To provide cost-effective stewardship of the IT assets and resources used in providing IT Services. The aims for any IT Services organization should include:  To be able to fully account for the spend on IT Services and to be able to assign these costs to the services delivered to the organization's Customers; and  To assist management decisions on IT investment by providing detailed cost analysis regarding changes to IT Services. Financial Management (for IT Services) Budgeting • Document the known budget cost of infrastructure • Estimate variable budget items • Production of the actual budget Accounting • Deals with variations away from the expected budget • Maintains accounts and cost centre information Charging • Production of invoices based on agreed charging (and collection of funds) Inputs and outputs IT Financial Management responsibilities do not exist solely within the IT finance and accounting domain. Rather, many parts of the enterprise interact to generate and consume IT financial information.  Service valuation – quantifies, in financial terms, the funding sought by the business and IT for services delivered, based on the agreed value of those services. • Provisioning Value • Service Value Potential  Demand modeling  Service portfolio management  Service provisioning optimization  Planning confidence  Service investment analysis  Accounting  Compliance  Variable cost dynamics Copyright The Art of Service 5 Brisbane, Australia │ Email: [email protected] │Web: http://theartofservice.com │eLearning: http://theartofservice.org Phone: +61 (0)7 3252 2055 service strategy Activities  Service Valuation • Direct versus indirect costs • Labor costs • Variable cost elements • Translation from cost account data to service value  Service provisioning models and analysis • Managed services • Shared services • Utility-based provisioning • On-shore, off-shore or near-shore? • Service provisioning cost analysis  Funding model alternatives • Rolling plan funding • Trigger-based plans • Zero-based funding  Business Impact Analysis (BIA) Copyright The Art of Service 6 Brisbane, Australia │ Email: [email protected] │Web: http://theartofservice.com │eLearning: http://theartofservice.org Phone: +61 (0)7 3252 2055 service strategy Key Decisions  Cost recovery, value centre or accounting centre?  Chargeback: to charge or not to charge?  Financial Management implementation checklist • Track 1 – Plan • Track 2 – Analyze • Track 3 – Design • Track 4 – Implement • Track 5 – Measure Terminology Service Asset A Service Asset is any capability or resource of a service provider. Service Valuation A measurement of the total cost of delivering an IT Service, and the total value of the business of that IT Service. Service valuation is used to help the business and the IT Service provider agree on the value of the IT Service. Service Warranty Service warranty for a service provides the customer a level of reassurance and guarantee to meet agreed requirements. Service Utility Service Utility defines the functionality of an IT Service from the customer’s perspective (i.e. what the service does). Accounting Centre Costing inputs with some elements of budgeting (no billing). Recovery Centre Account fully for all IT spend and recover costs from the customer. Profit Centre The IT organization operates as a separate business unit. Notional Charging Notional Charging creates cost-awareness without the physical exchange of money. “If we were going to charge you, this is how much you would have to pay”. Differential Charging To try to influence behavior use of services at peak times may attract penalty fees and likewise use of services at non-peak times attracts overall lower charges for the customer. Cost The costs fall into 3 broad categories:  Staff - administration for Financial Management;  Extra hardware and book keeping software; and  Support Tools. Once costs are visible, and particularly when Real Charging is in place, the demand for some services may fall. This results in reduced revenue but is not really a cost of implementation, as it is in the organization's interest to identify and reduce inefficient use of IT resources. Copyright The Art of Service 7 Brisbane, Australia │ Email: [email protected] │Web: http://theartofservice.com │eLearning: http://theartofservice.org Phone: +61 (0)7 3252 2055 service strategy Copyright The Art of Service 8 Brisbane, Australia │ Email: [email protected] │Web: http://theartofservice.com │eLearning: http://theartofservice.org Phone: +61 (0)7 3252 2055 service strategy Copyright The Art of Service 9 Brisbane, Australia │ Email: [email protected] │Web: http://theartofservice.com │eLearning: http://theartofservice.org Phone: +61 (0)7 3252 2055