February 23, 2010

1. Commonwealth of Massachusetts Statewide Strategic IT Consolidation (ITC) InitiativeITIL v3 Overview February 23, 2010

2. Agenda • Introduction to Service Management and ITIL • Why do we care? • What is it? (i.e. ITIL is a framework for service management…) • Key Components of ITIL • Service desk • Incident management • Request fulfillment • Change management • Asset/configuration management • Problem management • Next Steps with ITIL (in the context of IT Consolidation) • ITIL Roadmap • Key Next Steps ITIL v3

3. Concept of Value • Value is not derived from the elements of a product or a service • Value is derived from the processes with which a product or a service is put together and offered to the customer

4. What has Henry Ford got to do with ITIL? 3 Fidelity Confidential

5. The primary driver … Architectural complexity reduces IT efficiency and effectiveness * An actual application architecture for a consumer electronics company

6. The Need For IT Service Management (ITSM) • IT (Information Technology) is now a essential part of delivering the key business processes and results. • IT is increasingly being expected to deliver the same or better quality of service to the business that the business delivers to their customers. Increasing visibility of IT Increasing demands from the business to deliver effective IT solutions Increasing complexity of IT infrastructure processes Increasing need for service standards and repeatable processes Increasing pressure to realize a return on IT investments

7. What is ITIL? • ITIL (the ITInfrastructure Library) is a set of books and documents that are used to aid the implementation of IT Service Management. It provides a comprehensive framework of processes and best practice advice for IT Service Management.

8. Why the ITIL framework? – Taking Thought Leadership ITIL has become the de facto standard for IT Operations “[the] staggering improvements in customer satisfaction and operating efficiency—are so great that Forrester has concluded that it is just a matter of time until ITIL becomes the de facto standard for all IT shops. ‘ITIL is absolutely the best framework available for IT operation’…” “…at least 60% of relevant public-sector and 30% of relevant private-sector sourcing deals…will demand ITIL (ISO 20000) certification in their RFP’s” 1 CIO Magazine, “ITIL Power”, September 2005 2 Gartner Research, “ISO/IEC 20000 has an Important Role in Sourcing Management”, January 2006

9. What is our focus? -- ITIL Version 3: Service Lifecycle Model We will focus on a subset of the ITIL v3 processes. The 6 processes identified below are also the core focus areas of the Commonwealth-wide Service Excellence initiative: Continual Service Improvement Processes: Service Strategies Processes: • Strategy Generation • Financial Management • Service Portfolio Management • Demand Management • 7 Step Improvement Process • Service Reporting • Service Measurement Service Design Processes: • Service Catalogue Management • Service Level Management • Capacity Management • Availability Management • IT Service Continuity Management • Information Security Management • Supplier Management Service Operation Processes: • Service Desk • Incident Management • Event Management • Request Fulfilment • Problem Management • Access Management • Technical Management • IT Operations Management • Application Management Service Transition Processes: • Transition Planning & Support • Change Management • Service Asset & Configuration Management • Release & Deployment Management • Service Validation & Testing • Evaluation • Knowledge Management

10. What are the benefits of ITIL? Provides a common vocabulary and allows IT personnel in different groups to communicate more efficiently Provides a set of principles and processes that can be adapted to suit any IT environment Clearly identifies roles and responsibilities for IT infrastructure and operations, and establishes accountability Supports the ability of IT to measure and improve internal performance and service provisioning, to increase the value provided to the business Defines IT in terms of “services” (focusing on the value to the business), rather than “systems” (focusing on IT components) Improves the relationship of IT with the business by matching the expectations of the business with the service levels provided Improves the ability of IT to adjust as needs and legislative mandates change

11. What about quantifiable benefits? Adoption of ITIL has yielded tremendous operational benefits for a number of large enterprises: 1 Presentation by Reuter’s IT department, January 2007 2. INS, “Customer Case Study”, HP “DHL wins prestigious itSMF award”, 2003 3 Information Week Optimize, “Building Blocks of Process Innovation”, 2005 4 SMART Enterprise, “Why ITIL Rules”, January 2007 5 COMPUTERWORLD Management, “Procter & Gamble touts IT services model, saves $500 million”, 2002 6 InfoWorld, “To survive the 21st century, IT must manage itself based on the services it delivers”, October 2006

12. Case study from a leading Financial Services firm ITIL played a key role in reducing the business impact of incidents: Change Induced Sev1/2 Incidents x Business Impact Minutes Total Sev1/2 Incidents x Business Impact Minutes Change induced SEV 1&2 incidents declined due to the implementation of the ITIL change administration process 2006 saw a significant reduction in the number of SEV 1&2 incidents

13. ITIL focus across the Commonwealth There are a number of in-flight initiatives at the Commonwealth focusing on operational improvement via ITIL:

14. Service Desk: Overview The Service Desk (or Helpdesk) is a Function, not a Process. Its role is crucial and central to the whole concept of Service Management. What is a “Service Desk?” The point of contact between the customer/user and the IT service, responsible for service requests as well as incident control. What is the PURPOSE of the Service Desk? • Provides a single point of contact for customers • Facilitates the restoration of normal operational service with minimal business impact on the customer within agreed service levels and business priorities • Manages each user contact/interaction with the IT Service provider throughout its lifecycle What are the OBJECTIVES of the Service Desk? • To promote customer satisfaction • To restore normal service as quickly as possible when there is a fault • To attain service level targets for user contact responsiveness and quality • To articulate and route requests to the service provider accurately and appropriately • To ensure accurate and timely communication of status • To act as a strategic function to identify and lower the cost of ownership for supporting the computing and support infrastructure • To reduce costs by the efficient use of resource and technology

15. Service Desk: Structure

16. Service Desk: Benefits • The value of an effective Service Desk should not be underrated – a good Service Desk can often compensate for deficiencies elsewhere in the IT organization; but a poor Service Desk (or the lack of a Service Desk) can give a poor impression of an otherwise very effective IT organization! • Specific Benefits include: • Improved customer understanding and satisfaction with IT Services • With what the Services are, and how to obtain them • With status on Incidents and Requests • Lower costs to the business through faster resolution of incidents and fulfillment of requests • Improved ability to attain service level targets through the management of the flow of work • Reduced costs by the efficient use of resources and technology – simpler work can be done by Service Desk Analysts rather than by the senior technical staff

17. Incident Management: Overview What is an “Incident?” • An incident is an unplanned interruption of a Service, or a reduction in the agreed-to quality of an IT Service. What is the PURPOSE of Incident Management? • The Incident Management process strives to restore normal service operation as quickly as possible and minimize the impact on business operations. What are the OBJECTIVES of Incident Management? • Restore services as quickly as possible following a deviation from agreed upon service levels • Log, track, capture and process all incidents in the IT environment according to existing SLAs and defined interfaces with other processes and based on defined fault-specifications

18. Incident Management: Process Diagram

19. Incident Management: Benefits • Incident Management is highly visible to the business when it is needed. How well incidents are resolved has a major impact on Customer Satisfaction with IT support. • Benefits from the process include: • The ability to detect and resolve Incidents quickly, resulting in shorter downtime to the business, and hence less impact • The ability to align IT activity to real-time business priorities: Urgency and Impact = Priority • The ability to identify potential improvements to services: the data collected helps to identify where to focus to prevent future incidents • The Service Desk can, during its handling of Incidents, identify additional service or training requirements

20. Request Fulfillment: Overview What is a “Request?” • A Request is any type of demand that is placed upon the IT Department by the users. Many of these are actually small changes: low risk, frequently occurring, or low cost, whose fulfillment can be standardized. • E.G., a request to change a password What is the PURPOSE of Request Fulfillment? • The Request Fulfillment process seeks to manage the Lifecycle of all Service Requests to provide the prompt, complete, and cost effective provision of the Request. What are the OBJECTIVES of Request Fulfillment? • To provide a channel for users to request and receive standard services for which a pre-defined approval and qualification process exists • To provide information to users and customers about the availability of services and the procedure for obtaining them • To source and deliver the components of requested standard services • To assist with general information, complaints or comments

21. Request Fulfillment: Process Diagram

22. Request Fulfillment: Benefits • The primary benefit of Request Fulfillment is to provide quick and effective access to standard services which business staff can use to improve their productivity or the quality of business services and products. • Specific benefits include: • Reducing the bureaucracy involved in requesting and receiving access to existing or new services, thus also reducing the cost of providing these services. • Through centralizing fulfillment, Request Fulfillment also increases the level of control over these services. This facilitates aggregating demand for suppliers and can result in reduced costs through centralized negotiation. • Repeatable workflows for fulfilling requests can result in faster performance, fewer errors, and a lower cost to provision.

23. Change Management: Overview What is a “Change?” • ITIL defines a Change as the addition, modification or removal of anything that could have an effect on IT services, usually stated as a change to a configurable item or CI. What is the PURPOSE of Change Management? • Respond to changing customer and IT requirements, providing a structured avenue for implementing Change while minimizing risk, reducing incidents, and avoiding disruption and re-work What are the OBJECTIVES of Change Management? • Record changes and then evaluate, authorize, test, implement, document, and review results in a controlled manner • Manage and minimize the risk of disruption to the business from the implementation of Changes

24. Change Management: Process Diagram

25. Change Management: Benefits • Reliability and business continuity are essential for the success and survival of any organization. Service and infrastructure changes can have a negative impact on the business through service disruption. • Change Management controls the risk and reality of disruption, through requiring all changes to be thoroughly analyzed, planned, tested, authorized, communicated, and implemented with appropriate back-out steps planned. • Key benefits are: • Implementing changes that meet the customers’ agreed service requirements while optimizing costs • Reducing failed changes and therefore service disruption, defects and re-work • Delivering change promptly to meet business timescales • Aiding productivity of staff through minimizing disruptions due to high levels of unplanned or ‘emergency’ change and hence maximizing service availability

26. Service Asset and Configuration Management: Overview What is an “Asset?” • The hardware and software that IT uses to provide service to end users, in support of business functions and applications What is a “Configuration?” • The set of “items” (CIs) and their relationships that comprises IT services and is the object of most IT tasks • Identify, control, record, report, audit and verify service assets and configuration items, including versions, baselines, constituent components, their attributes, and relationships • Ensure the integrity of the assets and configurations required to control the services and IT infrastructure by establishing and maintaining an accurate and complete Configuration Management System What is the PURPOSE of Asset and Configuration Management? • Support efficient and effective Service Management processes by providing accurate configuration information to enable people to make decisions at the right time, with accurate information: to plan and authorize change and releases, resolve incidents and problems faster, etc. • Provide management with the information required to optimize IT resources What are the OBJECTIVES of Asset and Configuration Management?

27. Service Asset and Configuration Management: Process Diagram

28. Service Asset and Configuration Management: Benefits • Having complete and accurate information about IT assets and services enables effective management of those resources • Benefits include: • Faster and less costly resolution of Incidents and Problems, through having configuration information available to support analysis and planning • Less costly forecasting and planning of Changes and Releases • Full enterprise-wide lifecycle management of IT assets, from specification of need, through procurement and installation, through disposal • Support for Supplier management, with regard to leases and warrantees, as well as software licenses • Appropriate protection of organizational information upon asset disposal • Better adherence to standards, legal and regulatory obligations (less non-conformances)

29. Problem Management: Overview What is a “Problem?” • The unknown cause of one or more incidents What is the PURPOSE of Problem Management? • Reduce the number and impact of Incidents • Identify the Root Cause of Incidents or faults in the IT environment • Prevent incidents from re-occurring • Record information that will improve the way in which IT deals with problems What are the OBJECTIVES of Problem Management? • Find the root causes of errors • Develop solutions to resolve known errors • Plan and request changes to implement the solutions • Prevent future incidents and problems

30. Problem Management: Process Diagram

31. Problem Management: Benefits Problem Management is directed toward the stabilization and improvement of service availability and quality Benefits include: • Reduction in the number of Incidents due to more effective and efficient incident handling • Increase in user productivity and service quality • Improved reputation of IT Organization due to decrease in the repetition of incidents. • Increase in productivity of Support staff • Ability to proactively identify beneficial system enhancements, amendments and business opportunities • Improved resolution rates at the Service Desk

32. Roadmap for ITD Process Improvement ITD has created a roadmap to mature Service Management processes in the next year: Phase 1 Legend: Phase 2 Phase 3 Dec 2010 Low Maturity High Maturity Process 1 2 3 4 Incident Management Change Management Problem Management 2.5 3.0 3 + 1.5 • Revise Process and republish • Train staff on revised process • Institute central management of dispatched incidents • Institute regular review meetings of performance with improvement actions assigned as needed • OLAs support SLAs and are managed • Continuous Improvement Procedures based on KPIs 1.8 2.5 3.0 • Revise process to focus on Change Results • Initiate Post-Implementation Reviews • Audit compliance with Procedures • Expand use of Configuration Mgt data now available • Documented Change Planning & Testing Procedures for each technical team 3 + 0.8 1.5 2.5 3.0 • Initial trend analysis of Incidents • Formal Recognition of Problems • Major Incident RCAs done under Problem Management • Create Process Document • Train Staff on Process • KPI in place and performance is reviewed • Known Error database created and used • Known Error Database utilized for Incident Mgt • Process roles established, including lead on each technical team • Downward trend in number of Incidents