V2, V3 and BSM why should I care?

1. V2, V3 and BSM why should I care? Malcolm Fry

2. IT Progression

3. The Risk Factor

4. The Impact Factor

5. The Cost of Failure Factor

6. The Visibility Factor

7. V2 to V3 Comparison Service Support Service Strategy Service Delivery Service Design Planning to Implement SM 2 3 Service Operation The Business Perspective ICT Infrastructure Management Service Transition Application Management Continual Service Improvement Security Management

8. Customer Fusion IT Organization IT Organization Incidents Incidents Changes Changes Capacity Capacity Tasks and actions Tasks and actions Problems Problems Availability Availability Configuration Configuration Integration of IT and the organization Fusion of IT and the organization

9. BSM has arrived • BSM is a term that has been flittering around IT Service Management (ITSM) for quite some time but for many has remained a species without a clear definition • As a result BSM has been the subject of much discussion but not many concrete deliverables • This may be the reason why many IT professionals have dismissed BSM at worst as a fad or at best a good idea but without substance. • This has all changed with the advent of ITIL v3 which includes and quantifies BSM in the ITIL ‘Service Strategy’ and ‘Service Design’ books • It also has a brief description in the ITIL Glossary: “An approach to the management of IT Services that considers the Business Processes supported and the Business Value provided.” Glossary – ITIL Service Design

10. ITIL v3 Progression Progression

11. ITIL V3 BSM Enablers

12. ITIL V3 BSM Enablers Align IT service provision with business goals and objectives Align IT service provision with business goals and objectives • IMPACT OF NOT HAVING ENABLERS • Failure to align will result in IT • concentrating resources in the wrong places • cause business managers to lose faith in IT because the important business processes are not being supported appropriately • The greatest impact could come from business managers who are not confident in IT and therefore do not exploit potential business opportunities as a result BSM ROLE • One of the first steps towards BSM is to • identify the business goals • map them to the existing services provided by ITSM • then perform the alignment

13. ITIL V3 BSM Enablers Prioritize all IT activities and business impact and urgency, ensuring critical business processes and services receive the most attention Prioritize all IT activities and business impact and urgency, ensuring critical business processes and services receive the most attention BSM ROLE • If critical business services and processes do not receive the correct level of attention: • Valuable time will be lost • Finance will be lost • Corporate image can be harmed • For example treating a low priority as a high priority can delay work on a more serious incident IMPACT OF NOT HAVING ENABLERS • Too often ITSM has worked at a generic service level rather than business level • For example not all incidents are priority one but very often for expediency ITSM treats them all as Priority one to the detriment of other services • By replacing these generic service levels BSM provides the platform for business oriented support and services

14. ITIL V3 BSM Enablers Increase business productivity and profitability through the increased efficiency and effectiveness of IT processes Increase business productivity and profitability through the increased efficiency and effectiveness of IT processes IMPACT OF NOT HAVING ENABLERS • The alternative is to decrease business productivity and profitability through the increased inefficiency and ineffectiveness of IT processes • Competitive edge can be lost when providing Front Office services that do not give business value, i.e. the service is there but the cost of running and supporting it are expensive BSM ROLE • By looking at ITSM from the business perspective BSM provides the rationale to steer the IT processes towards greater efficiency and effectiveness • Looking from the IT viewpoint will always create inward looking IT processes that benefit IT and no one else

15. ITIL V3 BSM Enablers Improve service quality, customer satisfaction and user perception Improve service quality, customer satisfaction and user perception IMPACT OF NOT HAVING ENABLERS • Every time you improve service quality you look for financial gain • Customers get satisfaction from quality • However this has to be measured from the customer’s viewpoint not from surveys created by IT for IT • Measuring and improving service performance that means nothing to the customer is expensive and frustrates the customers BSM ROLE • Sometimes this seems to occur as a side effect of following a BSM strategy • For example by reducing the number of Incidents you will automatically improve service quality, customer satisfaction and user perception • SLAs created from considering the customer standpoint, as BSM requires, will also contribute here • Maybe also BLAs

16. ITIL V3 BSM Enablers Create competitive advantage through the exploitation and innovation of IT infrastructure as a whole Create competitive advantage through the exploitation and innovation of IT infrastructure as a whole IMPACT OF NOT HAVING ENABLERS • It is impossible to estimate the cost of not creating competitive advantage • Or even the cost of maintaining status quo • Customers are very fickle nowadays and will change suppliers quickly to take advantage of the latest technology enhancements • The iPOD is a good example what will happen to music stores if we all download rather than buy CDs? BSM ROLE • This enabler emerges from understanding the broader picture from adopting a BSM strategy • If you look at IT from an IT perspective how can you create competitive advantage and get to the Front of the Front Office? • Exploitation and innovation can only come from having a clear IT to Business perspective supplemented by immaculate Service Management • The byword is confidence

17. ITIL V3 BSM Enablers BSM ROLE • This enabler emerges from understanding the broader picture from adopting a BSM strategy • If you look at IT from an IT perspective how can you create competitive advantage and get to the Front of the Front Office? • Exploitation and innovation can only come from having a clear IT to Business perspective supplemented by immaculate Service Management • The byword is confidence Ensure regulatory and legislative compliance Ensure regulatory and legislative compliance IMPACT OF NOT HAVING ENABLERS • Regulatory and legislative compliance is important because failure to comply could result in trade restrictions • Just like governance most of it is just good housekeeping but overkill can prove expensive • Not understanding customer compliance and regulatory constraints can cause unintentional breaches

18. ITIL V3 BSM Enablers BSM ROLE • The keyword here is appropriate • This is another example where too often ITSM has worked at a generic service level rather than business level • By understanding the nature of the business processes the protection of information and other assets can be finely tuned IMPACT OF NOT HAVING ENABLERS • This is a simple formula because the less protection the more likely it is that criminal activity will occur • Then there is also the protection by providing backups and recovery procedures • Some organizations have gone bankrupt because they were not protected and couldn’t recover from a major disaster such as a fire or a terrorist action. Ensure appropriate levels of protection on all IT and information assets Ensure appropriate levels of protection on all IT and information assets

19. ITIL V3 BSM Enablers Ensure that IT services are aligned and continue to be aligned with changing business needs Ensure that IT services are aligned and continue to be aligned with changing business needs BSM ROLE • Traditionally IT has driven Change Management for technology resources but this picture is changing fast • More and more Business Managers are requesting changes to help them meet their business challenges • BSM focuses on not just the current services but also on the future and potential changes to those business services. IMPACT OF NOT HAVING ENABLERS • If IT cannot align and continue to remain aligned then the result is quite simple the customers will look elsewhere for their IT Services • Failure to align will cause customer confrontation

20. ITIL V3 BSM Enablers Support the requirements to corporate governance with appropriate IT governance and controls Support the requirements to corporate governance with appropriate IT governance and controls IMPACT OF NOT HAVING ENABLERS • Corporate governance is now very serious with legislation such as SOX carrying prison sentences • Most governance is just good housekeeping but it is expensive to overkill too much just to be on the safe side • Not knowing the full range of governance is dangerous BSM ROLE • Much of the governance levied on industry is dependent upon IT resources • For example maintaining the correct data is vital to meet Data Protection legislation while Sarbanes-Oxley requires well kept data on assets and the changes to those assets • Part of the BSM remit is to work with customers to ensure that all stored data meets their government requirements

21. Many Tasks one objective – to support BSM Service Strategy Service Design Service Operation Service Transition Continual Service Improvement Financial Management Service Catalog Management Event Management Transition Planning and Support The 7-Step Improvement Process Service Portfolio Management Service Level Management Incident Management Change Management Service Reporting Demand Management Capacity Management Request Fulfilment Service Asset & Configuration Management Service Measurement Availability Management Problem Management Release and Deployment Management Return on Investment for CSI IT Service Continuity Management Access Management Service Validation and Testing Business Questions for CSI Information Security Management Operational Activities in other Lifecycle Phases Evaluation Supplier Management Service Desk Knowledge Management Requirements Engineering Technical Management Data & Information Management IT Operations Management (Control & Facilities) Applications Management

22. Corporate Topology Customer Operational (TCO) Strategic Business Unit Manager Business Process Manager Business Function Manager Business Operations Manager Top Executive Financial Controller Rule Providers In-House IT Service Provider Legislator The Organization External IT Service Provider Government IT Hardware Supplier Providers IT Capabilities Portfolio Manager Communications Supplier Experts Information Systems Planner Software Developer Software Supplier External Consultant Advisors Business Relationship Manager Tactical (ROI) Auditor Security Officer IT Program Manager Change Management Accountant Purchasing Agent Project Manager Contracts Manager Services Manager Guardians Coordinators

23. Corporate Topology meets V3 Operational Strategic Applications Management Data & Information Management Operational Activities in other Lifecycle Phases Service Asset & Configuration Management Service Level Management Information Security Management Event Management Service Desk IT Operations Management (Control & Facilities) IT Service Continuity Management Supplier Management Incident Management Technical Management Access Management Service Measurement Problem Management Knowledge Management Return on Investment for CSI Service Reporting Business Service Management Tactical Demand Management Change Management Service Portfolio Management Financial Management Requirements Engineering Evaluation Service Catalog Management The 7-Step Improvement Process Request Fulfilment Service Validation and Testing Capacity Management Business Questions for CSI Transition Planning and Support Release and Deployment Management Availability Management

24. The end Thanks