BCIS 5520 IT Service Management Background & ITIL SM Lifecyle

1. BCIS 5520IT Service ManagementBackground & ITIL SM Lifecyle Class 2.01 Spring 2012 Dr. Becker

2. Announcements • ROLL • Introduce new student • Project Ideas • UNT ITSM Organization • Homework – Chapter readings for next time • Foundations of ITSM based on ITIL v3, von Bon • Chapter 3 • Foundations in ITSM (ITIL v3 Foundations Course in a Book), Orand & Villarreal • Finish Getting Started (Chapter 1) • Reading #1B

3. ITIL® and IT Service Management • Welcome to theITIL and IT Service Manage-mentZone. Here you will find information, guidance and resources covering the whole gamut of ITIL issues and topics. • Click Here To Obtain The Latest ITIL VolumesDirect From The Publisher $500 US • What is ITIL? • ITIL (IT Infrastructure Library) is essentially a series of documents (books) that are used to aid the implementation of a lifecycle framework for IT Service Management. This customizable framework defines how Service Management is applied within an organization. • It also aligned with the international standard, ISO 20000.

4. BCIS 5520 ITSM Text Books 2012C • Foundations of IT Service Mgt, Brady Orand & Julie Villarreal, June, 2011. • Traditional Approach – Functions & Processes • Exam questions; Chapters with sections • Foundations of IT Service Mgt Based on ITIL V3, Jan Van Bon, et. al., ITSM Library, 2009 • Lifecycle Approach • Glossary; Chapters with subsections (e.g., 2.1) itSMF – IT Service Mgt Forum ITSM Library (Sample texts): • IT Service Management Global Best Practices, Volume 1 • Jan Van Bon, Arjen de Jong, Mike Pieper, Ruby Tjassing, Annelies Van DerVeen • Review • Van Haren Publishing, 2008 - Business & Economics - 637 pages • Introduces cutting-edge thinking, shares new best practices developed in the field and provides a broad overview of significant and current IT service management issues. Reference guide offering the best practical guidance on daily issues of the IT Manager.

5. IT Service Mgt? What Does it Entail? Director Process Development - www.itservicemanagement-itil.com at Computer Aid, Inc. Director Process Development & Quality Assurance at Computer Aid, Inc. Director Process Development & Quality Assurance at IT Service Management Professionals Association • Bob Anderson’s Blog • ITIL History • Tracer-Revolutionary Process Mgt Tool(video; 1.5 min) • ITSM Overview • http://www.itsm.info/ITSM.htm#overview

6. Service Life Cycle as defined by ITIL • Foundations of IT Service Mgt Based on ITIL V3, Jan Van Bon, et. al., ITSM Library, 2009 ITSM Library itSMF – IT Service Mgt Forum Send comments and Questions to: j.van.bon@inform-it.org

7. Important ITSM Organizations • OGC (Office of Government Commerce within Cabinet Office) • Best Management Practice Portfolio • Since 2000 the Office of Government Commerce (OGC), former owner of Best Management Practice has been the custodian of the portfolio on behalf of UKG. In June 2010 as a result of UKG reorganization the Minister for the Cabinet Office announced that the Best Management Practice functions have moved into Cabinet Office. • The products present flexible, practical and effective guidance, drawn from a range of the most successful global business experiences. Distilled to its essential elements, the guidance can then be applied to every sort of business and organization. The products have helped improve processes and operations for organizations of all sizes – including small businesses, public sector organizations and major global enterprises. • itSMF(IT Service Management Forum) • itSMFI • The itSMF® is the only truly independent and internationally-recognized forum for IT Service Management professionals worldwide. • This not-for-profit organization is a prominent player in the on-going development and promotion of IT Service Management "best practice", standards and qualifications and has been since 1991, when the UK Chapter started as the foundation Chapter. • APM Group • Testing & Certification • A global accreditation body which develops and delivers qualification schemes for knowledge-based workers. The company is based in the United Kingdom. APM Group operates worldwide, with offices in the UK, USA, Germany, Malaysia, India, Australia, China and the Netherlands.

8. Different Approaches • Staged vs Continuous Improvement • Lifecycle vs Functions & Processes

9. Background • Information Age • Service … 90% of our economy? • Moore’s and Grove’s Law • Rapid Changes in technologies and organizations • need for agility • TQM – • 3 things: Customer-centric focus, Metrics, Continuous Improvement • Frameworks & Models • Anthony’s Pyramid • Functions vs. Processes • DFDs • Nolan’s Stage Theory • Standards!

10. We Are a Service-Oriented Economy FACT CHECK of Pres. Obama’s 2012 SOTU Speech: • OBAMA: "Tonight, I want to speak about how we move forward, and lay out a blueprint for an economy that's built to last - an economy built on American manufacturing, American energy, skills for American workers, and a renewal of American values." • THE FACTS: Economists do see manufacturing growth as a necessary component of any U.S. recovery. U.S. manufacturing output climbed 0.9 percent in December, the biggest gain since December 2010. Yet Obama's apparent vision of a nation once again propelled by manufacturing -- a vision shared by many Republicans -- may already have slipped into the past. • Over generations, the economy has become ever more driven by services; not since 1975 has the U.S. had a surplus in merchandise trade, which covers trade in goods, including manufactured and farm goods. About 90 percent of American workers are employed in the service sector, a profound shift in the nature of the workforce over many decades. Read more: http://www.foxnews.com/politics/2012/01/24/fact-check-obamas-2012-state-union/#ixzz1kXC5rn1o

11. Organizational Strategy Determines Information Systems

12. Information Age: U.S. Productivity Attributed to IT Investments Exhibit 1.1 Finally!!

13. Moore’s Law vs. Grove’s LawNew Paradigm Shift Log of Growth

14. TQM – Total Quality Management • W Edward Deming, Father of TQM • Customer-oriented • Measurable – Metrics • Continuous Improvement

15. Deming’s 14 Points A core concept in implementing TQM is Deming’s 14 points, a set of management practices to help companies increase their quality and productivity: • Create constancy of purpose for improving products and services. • Adopt the new philosophy. • Cease dependence on inspection to achieve quality. • End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier. • Improve constantly and forever every process for planning, production and service. • Institute training on the job. • Adopt and institute leadership. • Drive out fear. • Break down barriers between staff areas. • Eliminate slogans, exhortations and targets for the workforce. • Eliminate numerical quotas for the workforce and numerical goals for management. • Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit system. • Institute a vigorous program of education and self-improvement for everyone. • Put everybody in the company to work accomplishing the transformation.

16. Nolan Stages of Organizational Maturity Model(ACM, July, 1973) Integration Data Administration Maturity Decentralized Networks Reorganization& Collaboration Public & Private Networks • Initiation • Contagion • Control Nolan’s S-shaped Curve

17. Nolan-Norton Stages of IT Maturity • Dick Nolan, formulated a theory of the stages by which information technology is leveraged by organizations. His theory (see the diagram below) was that the rate at which technology was deployed could be depicted by a series of S-curves. The time periods between the s-curves were periods of discontinuity — first, technological discontinuity, and then organizational discontinuity. • A beauty of Nolan’s Stages Theory is that: • 1) an industry can be characterized as being somewhere along the S-curves; • 2) a single organization can be plotted on the curves; and • 3) even a line of business within a company can be positioned on the graph.

18. Can Just 10 Metrics Show CIOs What They Need to Know?March 29, 2011 CIO, Service Metrics In a previous post, we quoted from an article that listed 100 different metrics for CIOs. But if we were new CIOs, would that much information be overwhelming? So is there a way to pick just a handful of metrics that would be useful to us? Chris Curran, in his article “10 Metrics for a New CIO,” argues that just a tenth of the numbers are necessary. He lists the following ten numbers, with explanations you can read in the article. • Multi-year view on productivity, something like (Discretionary IT Spend)/(Total IT Headcount).  This could normalized it with some factor for “effective” discretionary spend assuming all projects are not 100% effective. • Percentage of discretionary spend categorized by type • Number of bug fixes and enhancement requests for top 20 systems • Average hours/days to close critical/high support issues • Percentage of projects using enterprise hardware and software standards • Number of hours/days of training per person/team/area • Number of projects in each phase of the SDLC and average times in each stage (view of overall project pipeline, identify bottlenecks, etc.) • Some kind of customer/user measure if the company has any customers using an online channel • Percentage of projects who deliver 100% of their planned scope or percent of scope delivered • Core application availability (not technical SLA stuff, rather apps availability when users need it) We’re not sure we agree with the last statement. We agree with Chris that customer satisfaction is an important measure. Where we disagree is when he states that, aside from a general survey, he hasn’t seen anything useful. Our Managed Maintenance Application Support Process has a wonderful five-question form that gives the user room to expand on the assigned numbers for each question.

20. Value Proposition (TQM)

21. Courtesy: Henderson & Venkatramen, 2000 Virtual Organization [VO]A Three-Legged Stool GUI Customer Interface BPR Business Process Reenginering Alliances Partnerships/ Outsourcing

22. Part I: IT Service Lifecycle (ITIL) ITIL – Certifications: • ITIL Exams v2 • Foundation • Practitioner • Manager • ITIL Exams v3 • Foundation Level • Intermediate Level • ITIL Diploma • Advanced SM Professional Diploma

23. ITIL ITSM Lifecycle • Service Strategy • Service Design • Service Transition • Service Operation • Continual Service Improvement

24. ITIL's IT Service Lifecycle - The Five New Silos of IT by Rick Lemieux

25. Organizational Maturity Models • CMMI – Capability Maturity Model Integration • QMMG – Quality Management Maturity Grid • ISO/IEC 20000 • Gartner Maturity Model • KPMG’s World Class IT Maturity Model • Customer Maturity • Virtual Organization – Maturity Model

26. CMMI is much more than Software Quality

27. Service Lifecycle: Definitions • Basic Concepts • Good Practice vs Best Practice • ITIL is a “good” practice. Widely acknowledged and understood • Service • A means of delivering value to customers by facilitating outcomes the customers want to achieve without the ownership of specific costs or risks • Value • Core of the service concept: Utility & Warranty. Utility is what the customer receives; Warranty is how service is provided

28. Service Lifecycle: Definitions (cont.) • Service Management vs. Goods Mgt • A set of specialized organizational capabilities for providing value to customers in the form of services. • Specialization & Coordination • Service management coordinates the business of service management responsibility with regard to certain resources. • Agency Principle • SM involves an agent and principal that compels the agent to fulfill activities on their behalf. • Encapsulation • Hide what the customer does not need to “see” and show only what is valuable and useful • Systems • Functions & Processes

29. Service Lifecycle: Definitions (cont.) • Systems (IPO) • A group of interrelated components that form a unified whole operating to process inputs into outputs. Feedback loops are part of open systems • Functions & Processes (See Anthony’s Pyramid) • A function is a subdivision of an organization that specialize in fulfilling a specialized type of work • A process is structured set of activities designed to accomplish a specific objective. Input Process Output

30. SDLC & Five-Component Model?

31. Service Lifecycle vs. SDLC Service Management Lifecycle Systems Development Lifecycle (a.k.a., Waterfall) • Service Strategy • Service Design • Service Transition • Service Operation • Continuous Service Improvement • Analysis & Definition • Design Specifications • Development/Implementation • Operation • Assessment

32. Summary • Compare and contrast the Lifecycle Approach to the Functions & Process Approach to IT Service Management • Provide many examples of Models and Frameworks provided in this lecture • See useful links and references below

33. ITSM & ITIL Links • www.itil.co.uk - the Official ITIL Website of the OGC • www.iseb.org.uk - Information Systems Examination Board - ITIL Certification Exams • www.exin-exams.com - Examination Institute of the Netherlands - ITIL Certification Exams • www.itilexams.com - Loyalist College of Applied Arts and Technology - ITIL Certification Exams • www.bsi-global.com - British Standards Institution • www.itsmf.com - IT Services Management Forum - Worldwide site • www.itsmf.net - IT Services Management Forum - US site • ITIL bibliography - An ITIL bibliography from www.itsmfusa.org • www.itilcommunity.com - A vendor independent, interactive, user portal dedicated exclusively to ITIL • www.dritil.com - Dr. ITiL: A vendor independent, interactive, user portal dedicated to free ITIL guides, templates, white papers and hot links

34. Fun Facts: History of GUI • Stanford Research Institute Mouse Demo 1968 • GUIs 40th Anniversary

36. Benefits & Risks of ITSM Frameworks

37. IT Governance