Embracing ITIL for Measurable Results

1. Embracing ITIL for Measurable Results David Cannon, ITSM Practice Principal George Sourvinos, Solutions Architect

2. Agenda What is ITIL? What difference does ITIL make? Keys to ITIL success from v2 to v3

3. What is ITIL?

4. ITIL Beginnings UK Government - CCTA Focused purely on Infrastructure Services Primary focus = quality and efficiency Basis for Compulsory Competitive Bidding Government practice

5. ITIL Today International – over 40 countries Commercial and Government Best practice – from over 300 organizations Basis for standards – ISO 20000 Formal mapping (e.g. COBIT)

6. ITSM Implementation 95% of organizations have SLAs And are expanding their use

7. Formal Adoption of ITIL (2008)

8. ITIL: Core of SIP

9. Aligning Business & IT Value

10. The Evolution of IT Service Management

11. What Difference does ITIL Make?

12. Benefits – Some hard Figures Cost savings (up to 20% in year 1 and anywhere from 15% to 5% each year after that) Eliminate duplication and loss Optimize expenditure (i.e. spend money where it’s really needed, reduce where it’s not) Licensing and maintenance reduction Delay capital expenditure Technical support costs (through more effective problem resolution)

13. Benefits – Some hard Figures Incident Reduction (up to 25%) Increase in successful releases (50% - 65% in year 1 measured by # incidents and roll-backs) Faster, more effective build and test (reduction in time to users by 15% – 25%) System Availability (increases by 0.5% to 5%) Service Availability (increases by 5% to 15%)

14. The ITIL Advantage…

15. Keys to ITIL Success From v2 to v3

16. Key 1 From Process to Lifecycle

17. What is an IT Service (v2)? A set of related functions provided by IT systems in support of one or more business areas This service can be made up of hardware, software and communication facilities, but is perceived by the business customers as a self-contained, coherent entity

18. Service Components

19. As Seen by the Customer…

20. Process Orientated Working

21. The Problem with Processes Processes help to organize work better They are aligned to activity and output, not necessarily to value You have to know what you want to achieve, or else assume that the customer does Processes are not strategic Bottom line: Managing IT needs more than just a set of processes, people and tools

22. ITIL v3 Creating a way to integrate IT Processes, People and Tools with the Business Strategy and Outcomes Seeing IT as a Strategic Business Unit

23. Definition of a Service (v3) 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

24. The ITSM Lifecycle

25. Key 2 From Output to Outcome

26. Using Services to Achieve Business Outcomes

27. Key 3 From Cost to Value

28. What is Value?

29. What is Value? Value is in the eye of the customer Value is variable Value has to be negotiated Value changes over time and context Value can be managed Value is not always financial

30. Value in Supply Chains

31. Value in Supply Chains Lessons Learned If value is not realised, ‘value added’ is equal to ‘money spent’ Value Realized must be greater than money spent Value added internally is not value until it is realized

32. What does this mean for IT? If IT wants to demonstrate value it has to link its services to where value is realized, not where value is added If IT can not do this it will always be viewed as ‘money spent’ not ‘value added’

33. Supporting Business Outcomes

34. Key 4 Manage Yourself and your Suppliers

35. IT Value – an Example

36. Key 5 Link Strategy and Operation

37. Context - Monitor Control Loop

38. Complex Monitor Control Loops

39. Context - The ITSM Lifecycle

40. Key 6 Keep Service, Infrastructure and Applications Together

41. Service Operation Functions

42. Key 7 Bring Functionality and Manageability Together

43. The V3 Value Proposition Keeper, tied into our recommendations.Keeper, tied into our recommendations.

44. Service Design Constraints

45. 45 April 8, 2008 So, DO we Need ITIL? Not an alternative framework, but: Builds on what we’ve already started and are doing well Not an obscure theory, but guidelines based on what has been proven to work At the core of what we do, not an add-on Implementation can be incremental Allows for determination of value, and management of multiple suppliers Addresses both the supply of and demand for IT services

46. 46 April 8, 2008 Secrets of Success Senior Management buy-in Tools alone do not solve problems If it isn’t broken, don’t fix it Reorganization is the last thing on the agenda, not the first Take one step at a time Communicate and sell at all stages Be prepared for Change

47. 47 April 8, 2008 Improve the efficiency of the organization, IT staff and IT customers Improve the effectiveness of the processes Improve the ability of the technology to automate the processes Enable better measurement and control of the IT environment - key to meeting contractual agreements ITIL® Value Proposition

48. Some Examples

49. 49 April 8, 2008 IT Delivery and Outsourcing Management Challenge

50. 50 April 8, 2008 Service Levels Management and Integration Challenge

51. 51 April 8, 2008 Improve Service and Business Performance Challenge

52. 52 April 8, 2008 Additional Success Stories

53. Questions?