practical application of itil

1 ©2010 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

Practical application of ITIL

Brian FinnDirector, PricewaterhouseCoopers LLP

Daniel PettiboneDirector,PricewaterhouseCoopers LLP

Agenda

• Overview of ITIL

• IT as a Strategic Enabler

• Synchronizing ITIL and the Business Side of IT

• ITIL, Adopt and Adapt

• ITIL, the First 10 Steps

• Delivering a Customized ITIL Solution

• Customized ITIL Example

• How is Success Measured

• Where have we been successful

• Questions

PricewaterhouseCoopers

• The Information Technology Infrastructure Library, or ITIL, now on its third

version, is considered an unofficial industry standard for IT service

management (ITSM) and service delivery leading practices.

• ITIL is a set of concepts and practices for managing IT services,

development and operations.

• ITIL gives detailed descriptions of IT leading practices and provides

comprehensive checklists, tasks and procedures that any IT organization

can tailor to its needs.

• ITIL is published in a series of books, each of which covers an IT

management topic.

What is ITIL...?

Slide 3


How ITIL can provide value

Alignment of IT services

with the current and

future needs of the

customer

Measureable

improvements in

the quality of the

IT services that are

delivered to customers

Sizable reductions in the

long-term costs of

service provisioning

and infrastructure

Scalable approach

to service support

and service delivery

Slide 4


What are the ITIL process areas?

ITIL Version 2

ITIL Version 3

ISO 20000:

a standard for IT Service

Management

ITIL® is a Registered Trade Mark, and a

Registered Community Trade Mark of

the Office of Government Commerce,

and is Registered in the U.S. Patent and

Trademark Office

Slide 5

PricewaterhouseCoopers Slide 6

ITIL – Service Management practices core guidance

• Service Strategy: guidance on how to

create or improve alignment between

service management capabilities and

business strategy

• Service Design: creating the blueprint

for delivering the strategy

• Service Transition: guidance for

developing and improving capabilities

and transitioning to „live‟ operations

• Service Operation: guidance for

maintaining stability in daily operations

and ensuring value for services

• Continual Service Improvement:

methods and practices for quality

management and capability

improvement – creating and maintaining

value for customers

• The Service Lifecycle is based on a Hub

and Spoke Model

− Strategy is at the hub

− Design, Transition, and

Operations are revolving

lifecycle stages

− Anchored by Continuous

Improvement

− Non-linear by nature, with a

constant set of checks and

balances


Some companies have made public the benefits they have realized by

implementing ITIL best practices for IT Service Management:

• Procter & Gamble: Started using ITIL in 1999 and has realized a six to

eight percent cut in operating costs. Another ITIL project has reduced Help

Desk calls by 10%. In four years, the company reported overall savings of

about $500 million.

• Ontario Justice Enterprise: Embraced ITIL in 1999 and created a virtual

Help / Service Desk that cut support costs by 40%.

• Caterpillar: Embarked on a series of ITIL projects in 2000. After applying

ITIL principles, the rate of achieving the target response time for incident

management on Web-related services jumped from 60% to over 90%.

ITIL adoption yields results

Source: Tom Duffy, 2001, “Efficiency tool kit”, Network World.

Slide 7


As IT organizations in both the public and private sectors continue to expand

their adoption of ITIL as the benchmark for IT Service Management, ITIL

practitioners are provided an unique opportunity to take traditional, commodity

based, services and make them strategically important to business

operations.

Strategic value is created when IT operations are synchronized with the

underlying business operations.

IT as a strategic enabler

Slide 8


Both the public and private sector continue to look for IT services to support

organizational transformation initiatives. By implementing the ITIL framework,

IT Service Managers are able to support this strategy of leveraging

technology to achieve organizational goals by aligning the IT services they

deliver to organizational goals. Implementing ITIL-based leading practices can

result in the following:

• IT-Business Synchronization: better alignment of IT services with the

current and future needs of the business and its customers.

• Quality Improvement: increasing the quality and reliability of the IT services

delivered

• Cost Control: reducing the long-term cost of service provision and realizing

gains from service efficiencies

Synchronizing ITIL and the business side of IT...

Slide 9


Evolving mission of IT

Business complexity, broader technology adoption and increasing

expectations have forced a shift in the role of IT.

Support the business:

In the past, CIOs were focused on efficiency

supporting the business with optimal operational

performance.

Advance the business:

Now CIOs are also expected to advance the

business – developing flexible capabilities to increase

effectiveness, enabling the business to grow.

Differentiate the business:

There is an increasing expectation to drive innovation

– adopting new technologies to differentiate the

business

Slide 10


Synchronizing visions

Synchronization proactively readjusts alignment points to your

destination of IT excellence. With it, you can define and communicate

strategic goals that support your evolving vision and the corresponding

proportions of innovation, effectiveness, and efficiency.

Slide 11


IT Services Management (ITSM)We help clients improve their IT management/operational processes to be more effective, efficient, and

better aligned to business strategy/operations. We also help clients evaluate and implement various

service management approaches.

• Repeatable, rapid yet robust processes for

handling service provisioning and change.

• Self-provisioning “Utility” computing capabilities.

• Structure to handle large-scale IT changes

resulting from M&A, sourcing, or new application

deployment, in a known repeatable manner.

• Reduce costs through standardization of

operational and maintenance processes,

organizational alignment, consolidation (e.g.,

help desk), and automation

• Support capacity planning, demand

management, and asset management

• Visibility on true IT cost, usage, and charge-back

capabilities

Agility and

Time

to Market

Cost

Optimization

• Service catalog aligned with business needs

• Reduce impact of outage through proactive

management capabilities, augmented by

optimized reactive processes

• Enhance user experience though better

customer service (help desk) and end-to-end

management of application services

Service

Excellence

• Maintain accurate change and configuration,

asset, and license information

• Formalize and enforce segregation of duties

• Obtain ISO/CobiT certification

• Reduce outages

Risk and

Compliance

Business Drivers Representative Services Management Value

Value proposition

• Alignment of IT infrastructure initiatives with business

goals

• Flexible, scalable enterprise architecture defined to

support business strategy

• Set of standards, principles, and methodology for

infrastructure projects

• Clear realistic implementation plan

• Objective view independent of hardware/software

choice

Business Challenges

Today‟s businesses are highly dependent upon agile

information technology services and require services

management capabilities to deliver critical services levels

at an acceptable cost:

• New service and technology deployment

• Flexible and scalable infrastructure

• Service consolidation

• Reduce operating cost

Slide 12


One of the major benefits of an ITIL implementation is the ability to tailor the

solution to organizational needs. As practitioners of ITIL, our primary focus is

to assist our clients with both the adopt phase, and the adapt phase.

Once an organization has decided to implement ITIL, practitioners must

begin supporting the adapt phase.

The adapt phase consists of three focus areas:

1. IT Organizational Maturity

2. Business Objectives

3. Synchronization

ITIL, adopt and adapt

Slide 13


Infrastructure

(including tools)

Service Support &

Service Delivery

Culture, Attitude

Beliefs and skills

Strategy

Steering

Direction

Integration

People

Processes Technology

The objective of IT Service Management is to

facilitate that the IT Services are aligned to the

business needs. IT Service Managers should

recognize that it is imperative that the IT

Services they deliver underpin the business

processes. They should also be aware of their

increasingly important role to act as an agent

for change to facilitate business transformation.

Three key Objectives:

1. Align IT Services with the current & future

needs of the business & customers

2. Improve the quality of IT Services Delivered

3. Reduce the long-term cost of service

provision

Successful ITIL implementations focus on three key areas:

People, Process and Technology

Slide 14


Most facets of today‟s business environment are almost entirely dependent on

IT services. Effective and efficient IT Operations Management is gaining

increasing interest from CIOs and other IT executives.

• A driving factor for this is that operational costs are increasing with every technology

implementation. The steady growth of business applications has added complexity

and management overhead. Unfortunately the management of IT operations has not

realized the same growth.

• High complexity, poor change management, silos of applications and the lack of

standards is resulting in poor service quality, slow service delivery and a lack of IT

efficiency.

• The recent attention on IT Operations Management has created strong interest in

best practice frameworks like ITIL and technology enablers like SOAs and CMDBs.

However, the goal of lowering costs and improving IT efficiencies must include

automated process driven management.

Generate process consistency

Slide 15


Configuration management is the core of an optimized IT infrastructure. ITIL

Service Asset and Configuration Management (SACM) processes can allow

an organization to conduct ITIL reviews across a number of other ITIL

processes such as:

• Incident Management

• Problem Management

• Change Management

• Release Management

• Service Level Management

Configuration Management as a catalyst for ITIL implementations

Slide 16


We use a functional model that is based on industry standards (e.g., ITIL,

eTOM) that is continually enriched based on our client engagement

experience. This model serves as the basis for developing our solution

components. It is used as part of our methodology to facilitate and accelerate

our engagements by adapting the model to our specific client requirements.

The Service Management (SM) approach illustrated on the next slide, is

PwC‟s Program Delivery methodology that has been adapted to Service

Management engagements. It utilizes methods from Process and

Organizational design and development through technology implementation in

a complete, integrated methodology.

PwC‟s Program Delivery methodology

Slide 17


Depiction of PwC‟s Program Delivery methodology

Figure 2 - PwC Service Management Program Delivery Methodology

Continual Service Improvement

Strategy Build & Deploy Operate

IT M

an

ag

em

en

t L

aye

rs

Design

Strategic ITSM Planning

Service Portfolio Management

IT Financial Management

Demand Management

Information Security

Management

Service Level Management

IT Governance

Service Catalog Management

Capacity Management

IT Service Continuity

Management

SM Knowledge Management

Service Validation & Testing

Release & Deployment Mgmt.

Change Management

IT Asset Management

Access Management

Request Fulfillment

Incident Management

Problem Management

Middleware Virtual Tech. Network Desktops Mainframe / Servers Applications Databases Storage

IT Service Quality

Management

Process

Improvement

Service, Process & Technology Metrics

Reacting Reporting

Technology Management

& Operations

Manage IT Assets, Vendors

& Suppliers

Strategic Technology PlanningAvailability Management

Technology Eng Management

Configuration & Inv. Mgmt.

Technology Deploy Planning

Supplier & Vendor Management

Event & Performance Mgmt.

IT Operations Management

IT Business Management

Govern IT Services

& run IT as a Business

Service Fulfillment &

Assurance

Define, Deliver & Ensure

IT Services

Slide 18


The following slide represents an approach to ITIL adoption. By stressing our

client's strengths and promoting the notion that by knowing the mission, goals,

and priorities from the front office to the operational level, we have been able

to show our client how it can be better poised to make strategic decisions on

how and where to engage the agency, develop long term relationships in the

agency, and distinguish itself from its competition.

How to adopt ITIL, in 10 easy steps...

Slide 19


1 Prepare your project for ITIL• Know your stakeholders’ mission, vision, and goals

• Establish Process Management and documentation

• Promote ITIL project awareness and familiarization

6 Identify required ITIL-based roles• Develop detailed definition of process activities

• Identify required ITIL roles based on scope/effort

• Identify resources based on qualification

2 Define the client’s ITSM model• Determine desired IT service management structure

• Create a list of business services and objectives

• Determine supporting functions and responsibilities

7 Design ITIL-based processes• Determine required ITIL processes based on “to-be”

• Create guidelines/checklists to support execution

• Create detailed definition of process outputs

3 Perform an ITIL assessment• Ask key questions, list key actions and deliverables

• Complete ITIL Maturity Model Assessment

• Rate organization; list weakness and opportunities

8 Establish process governance• Determine process owners

• Define IT metrics and measurement procedures

• Set KPI targets and define reporting procedures

4 Define ITIL process interfaces• Determine process inputs and outputs

• Document internal and external touch points

• Create ITIL process roadmap

9 Perform implementation• Execute requirements and detailed process models

• Select systems to support “to-be” processes

• Implement systems, processes, and documentation

5 Define the “to-be” process structure• Review “as-is” results from Assessment

• Determine which ITSM processes are needed

• Create example future process state and structure

10 Continuous process improvement• Create ITIL knowledge management repository

• Train employees, educate customers, manage risk

• Monitoring, reporting, SLAs, OLAs, dashboards

ITIL: The first 10 steps

Slide 20


Define Vision and High Level ObjectivesWhat is the problem?

How do we solve it?

Key Questions Key Actions

Where are we now?

What are the pain points?

How do we get where we

want to be?

How do we know when we

have arrived?

Diagnostics to Determine Pain Points

Develop ITIL Implementation Plan

Implement Processes and Procedures

Delivering a customized ITIL solution

Deliverables

ITIL Maturity Model

Assessment

Tailored Processes,

Gap Analysis,

As-is Architecture

Implementation Plan,

Performance Plan

Process:

Project

Plans

High Level

Process Model

Detailed Process

Description

Gather Tool

Requirements

Select Tools and

ConfigureTechnology:

People:

Awareness

Campaign ITIL Training

Process Workshops

(Knowledge Sharing)

Process

Implementation

Control Gate Control Gate

Implementation Approach

Scope and Objectives

Statement

Slide 21


Service management solution delivery methodology

Our methodology is a well-defined set of project activities and

deliverables specifically designed to facilitate development, deployment,

and production integration of the IT service management solution.

Our experience goes beyond process design or tool implementations to

address the breadth of ITSM, including program management of

multiphase ITIL initiatives.

Technology work stream

Process work stream

Manage work stream (program, project, quality, organizational change, and communication management)

Process &

organization

Technology &

facilities

System &

integration

testing

Data

migration

Technology

design

(logical &

physical)

IT governance

Technology

build

& unit testing

Software &

infrastructure

deployment

DesignStrategize Build Deploy Operate

Process turnover

to process owners

IT process

design

IT process assembly &

consensus

Assessment

Strategy

Business Case

Road map

Detail plan

Operations &

continuous

improvement

User &

admin

training

UAT Solution

design

Policy &

procedure

definitions

Solution &

training

guides

Test plan,

scripts &

use cases

Requirements

analysis &

definition

Production

readiness

review


The following slide represents a fully-customized ITIL implementation that,

based upon the Sponsor‟s priorities, both evolves in phases and matures over

time through a new Version 3 practice of Continuous Process Improvement.

Customized ITIL implementation example

Slide 23


New IT Service

Delivery

Incident Management Problem Management Change Management

Release Management

Service Asset Configuration Management

Service Level

Management

Performance Management

Availability Management

IT Financial

Management

Demand Management

Continuity Management

(DR)

Capacity Management

Service Strategy and Design

Service Operation and Transition

Repaired CI New Version CI

Incident Data Request for Change

Management Information External IntegrationExternal interfaces and relationships between core processes have been established

IT Products andQuality Control

All relevant outputs are produced and verified against quality standards

Process Capability andInternal Integration

Minimum set of activities are preformed and integrated to fulfill process intent

Pre-requisites andManagement Intent

Minimum level of prerequisites exist to support processes

Level 5Level 4Level 3Level 1 Level 2

Knowledge Transfer

Service Desk

Trouble Ticket

Continuous

Process

Improvement

Monitoring and

Reporting

Performance

“Intelligence”

Dashboard

IT

Communication

Strategy

Service

Improvement

Program

Security

Improvement

Program

SLA / OLA

Maintenance

IT Security

Management

Threat

Management

Identity & Access

Management

Service Level Agreements

Operations &

Maintenance

ITSM Software

Suite & CM ToolsRemedy, HP OpenView,

Visionael

Logistics &

Procurement

Phase

Phase

Phase

1

2

3

1

1

1

1

2

2

2

2

2

3

3

3

33

Example

Sponsor’s Priority

Business/

Functional Areas

Enterprise-wide Managed IT Infrastructure

Foundational Enhanced Leading Class

1

Patches

Seamless Customer Interface

External review and validation of processes remains optimized toward fulfilling customer need

Slide 24


ITIL Implementation Success Measurements

• Reduced total cost of ownership by identifying opportunities to improve efficiencies and provide long-term cost savings

• Improved IT services through the use of industry leading practices

• Improved end user / customer satisfaction (i.e., by understanding the strategic business needs of the customers and users, IT solutions can be designed, enhanced and maintained to align with these demands)

• Optimized Standards and guidance for continuous improvement and the elimination of redundant work (i.e., same processes and procedures used throughout the organization)

• Clearly documented and communicated roles and responsibilities for IT professionals in IT service delivery and support

• Improved use of existing skill sets and experience/resource utilization

• Improved delivery time of services (i.e. using standard processes and procedures can streamline the delivery of standard IT services)

• Improved availability, reliability and security of mission critical IT services (i.e., proactively monitor all components of a service, escalate any degradation, re-route users to redundant servers, circuits, etc.)

• Integrated central processes (e.g., Change, Configuration and Release Management, Service Desk with Incident and Problem Management)

How is success measured…to own the outcome?

Slide 25


Measuring ITIL maturity

Configuration Management

•Assess the maturity level of the configuration management processes by

comparing current processes to the IT Infrastructure (ITIL) framework.

•Understand the processes in place to identify and track the relationships

between IT configuration items (CIs).

•Assess the maturity level of the repository housing CIs and the adequacy

of the processes for maintaining CIs.

Key Activities:

1. Planning (determining purpose, scope, and objectives)

2. CI identification (scope of CIs, level of detail, relationships)

3. CI status accounting (CI status)

4. CI control (recording changes to CIs)

5. Verification (verifying whether the CI information matches the actual

environment)

Slide 26


1 InitialThere are no standardized processes; instead ad hoc approaches exist which are applied on

an individual or case-by-case basis.

2 Repeatable

Processes have developed to the stage where similar procedures are followed by different

people undertaking the same task. There is limited or no formal training or communication of

standard procedures, and responsibility is left to the individual. There is a high degree of

reliance on the knowledge of individuals and, therefore, errors and inconsistencies are likely.

3 Defined

Procedures have been standardized and documented, and communicated through training. It

is, however, left to the individual to follow these processes, and it is unlikely that deviations will

be detected. The procedures are the formalization of existing practices. Tools are used to

enforce or automate process workflow.

4 Managed

It is possible to monitor and measure compliance with procedures and to take action where

processes appear not to be working effectively. Processes are under constant improvement

and provide good practice. Tools are used to automate process workflow, improve efficiencies,

and provide data for continuous process improvement / trending analysis.

5 Optimized

Processes have been refined to a level of leading practice, based on the results of continuous

improvement and maturity modeling with other enterprises. IT is used in an integrated way to

automate the workflow, providing tools to improve quality and effectiveness, making the

enterprise quick to adapt.

Measuring ITIL maturity

Based on the understanding of the current configuration management

processes compared to the ITIL framework a relative maturity level is assigned

using a scale of 1 to 5 as defined below:

Slide 27

Where we have been successful


ITSM project examples

Client ITSM success story

Leading cable

service provider

Summary: The client is a top cable service provider offering telephony, video, and

data services across the United States. The company was looking to increase

efficiency and service by streamlining and/or consolidating its operations centers for

fault and problem management. PwC led the definition of a target model for the

eight operations centers, designed supporting technologies and processes, and has

led the implementation and improvement effort.

Global

pharmaceutical

company

Summary: The client was looking to migrate its existing help desk to support a

higher level of service management. The client had never worked with a GSI before.

But based on a number of ITIL workshops conducted by PwC with the client, the

company decided to expand the scope of its initiative to include configuration and

change management. This allowed the client to further address FDA 21 CFR Part 11

and CSV regulatory requirements.

Major credit

card company

Summary: PwC conducted a project with the client in assessing and reengineering

its incident and problem management process to enhance and design global ITIL-

based security incident and problem processes for networks, servers, and

applications. PwC created a foundation for proactive incident and problem

management processes and defined the technology requirements for enabling the

global security management service based on ITIL process goals.

Slide 29




Large US

energy company

Summary: PwC assisted a large US energy company in creating a strategic, five-

year ITSM implementation plan to more efficiently deliver the supply of IT services.

This resulted in a $100 million reduction in the company‟s annual IT budget. PwC

also assisted this commercial company in setting up a project management office to

track progress of its service management program. Additionally, the firm created a

detailed quarterly report scorecard to articulate the progress and benefits achieved.

Large

healthcare payer

Summary: A US healthcare payer approached PwC to assist in the development of

an IT governance framework based on COBIT and ITIL. PwC conducted an overall

assessment of ITIL maturity and gap analysis that resulted in the creation of a

strategic road map (three-year plan) for establishing and implementing the

governance program. Through this road map, the client could improve its IT

capabilities and address regulatory compliance. The road map included detailed

project charters and cost estimates for more than 20 IT governance-related projects.

The client has since executed on the road map and has successfully completed 17

of the 20 recommended projects; this has helped the client reduce system downtime

by 40 percent, which translates into a $10 million annual savings. Additionally, the

client realized a 5 percent productivity gain.

Slide 30




Major cable

entertainment

and telecom

company

Summary: PwC assisted a major cable entertainment and telecommunications

company with an ITIL assessment. The client had undergone tremendous growth

over the last few years that put mounting demands on its information technology.

The client had also undergone a significant reorganization of the IT division,

including the merging of traditionally disjointed groups. However, significant

inefficiencies in the way IT operations were managed and delivered led to a poor

perception of IT from the user community, poor integration between IT support tiers

and functions, and inefficient usage of staff. PwC conducted a maturity assessment

of the client's core IT processes against leading practices outlined in the ITIL. The

team identified short-, mid-, and long-term opportunities to change the division‟s

organization and processes to be more effective and efficient and to move toward a

leading-class IT organization. PwC's assessment helped the company to gain:

• A clear prioritization of gaps to be bridged and a baseline with which to begin

more effectively measuring IT performance from the business perspective

• A pragmatic approach to building required improvements into existing IT service

delivery initiatives so that efforts are not duplicated and staff and management

buy in to the changes

• A vehicle to help improve IT and business alignment, enhance end user

satisfaction, and establish a continuous process-improvement framework

Slide 31


Questions?


How to contact today‟s speaker

Brian Finn

Advisory Services Director


(703) 918-3007

[email protected]

Daniel Pettibone

Advisory Services Director


(703) 918-3296

[email protected]

mailto:[email protected]



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