From Silos to Shared Services -ITiL and ITSM

© 2004 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

IT transformationusing ITiL / ITSM

George SourvinosSenior Solution Architect – [email protected]

mailto:[email protected]

September 5, 2006 2

• Transformation of organizations & agencies• Changing role of government/military personnel to

fulfill oversight function• Increasing number of mandates, regulations,

contracting requirements• Requiring contractors to adopt process standards

– i.e. ITIL®, ISO9000, CMM/CMMI, Six Sigma, etc.• Modernization of tool suites• Migration of contract types from T&M to PBSC

Government IT Trends

September 5, 2006 3

Today's challenges • Manage IT in the context of the

business to maximizes IT’s business value

• “Flip the ratio” of IT spend from maintenance and innovation

• Establish a sustainable business model that maximizes IT’s price/performance ratio

• Turn silos of management data into actionable business intelligence

• Ensure the availability and performance of your critical business systems

• Reduce costs & improve operational efficiency

September 5, 2006 4

The Real Problem:Demand Outpacing IT Capability

Key Drivers

IT Productivity | Service Delivery Quality | Agility

(@ current staffing, workflow & tool leverage)

Demands

& Dependence

on ITGap is Widening

Increased IT Accountability

Branch Security

Internet & Email

Security

Web ServicesConstituent

Portals

Purchased Application

Implementations

Old Culture & Processes

Personnel Shortages

Budget Deficits

NewMissions

New Tactics

E-govInitiatives

New Technologies

Time

September 5, 2006 5

CIO’s top issues• Aligning IT with the business

• Creating world class customer service

• Cutting/stabilizing costs

• Aligning IT investments and priorities with business directions

• Intelligent and managed outsourcing

• Resource management

• Security in all its aspects

• Enterprise architecture (e.g. portals, KM, etc.)

• Integration

• Planning for IT investments

September 5, 2006 6

To Address These Issues, IT needs to…• Increase efficiency and flexibility

through well-defined, measurable IT processes

• Eliminate organizational “silos”• Increase staff proficiency through

comprehensive training• Establish a common language for

customers and service providers• Automate processes with proven

technology (e.g. moving from PBX to VOIP)

• Manage services to customers, NOT technology to users!

• Change orientation of IT from being technology providers to becoming service providers

• Define the business IT wants to be in!

Customer Opportunity/IssueEvolution

Tren

ds

Where You Need to Go!

Where You Are Today

What roadmap should you follow to get there?

IT Service Management…

Think like a business!

September 5, 2006 7

What is IT Service Management (ITSM)?• ITSM is an approach that IT organizations can

utilize to design, build, integrate, manage, and evolve quality IT services that -

• Are customer-focused and process-driven• Meet cost targets• Enable achievement of performance targets as

defined in service level agreements (SLAs)Customers

Customer Support

MgtServer Mgt

ApplMgt

Storage Mgt

Network Mgt

Desktop Mgt

E-mail Service

SLA

September 5, 2006 8

What Is an IT Service?

A set of related functionsprovided 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 as a

self-contained, coherent entity

September 5, 2006 9

What is the Information Technology Infrastructure Library (ITIL)?• Open, best practice for IT Service management• Created through sponsorship by the UK Government• Written by consultants, vendors and users• Accredited Education and Examination scheme• ISO9000 compliant• WWW.CCTA.GOV.UK• Independently managed by the IT Service Management Forum - a

global organization consisting of more than 12,000 corporate andgovernment members (25,000 individual members) responsible for advancing IT best practices through the utilization of the IT Infrastructure Library (ITIL®).

Used by over 10,000 major corporations and governments, including Albertson's, British Airways, Barclays Bank, Proctor and Gamble, ABN AMRO, Shell, Chevron, Capital One, Philips, Eaton Corporation, Hewlett-Packard, US State Department, Internal Revenue Service, ITA-Pentagon, Census Bureau, USDA, various IC agencies

http://www.ccta.gov.uk/

September 5, 2006 10

ITIL structureService Support Library contains:

• Service Desk/Incident Management• Problem Management• Change Management

• Configuration Management• Release Management

Service Delivery Library contains:

• Availability Management• Capacity Management

• IT Service Continuity Management• Financial Management for IT Services

• Service Level Management

Other Volumes in the Library

Security Management Customer LiaisonIT Services Organization Managing Facilities Management

Planning and Control for IT Services Quality Management for IT Services


ITIL® Value Proposition• 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


HP ITSM reference model

IT business assessment

Service planning

IT strategy and architecture

Customer management

Service build and test

Release to production

Availability management

Continuity management

Security management

Capacity management

Financial management

Service-level managementChange management

Configurationmanagement

Operations management

Problem management

Incident and servicerequest management


Solution packages for your IT transformation

busi

ness

valu

e

Sta

bilit

yA

gilit

yE

ffici

ency

IT maturity

Business processesIT resources IT services

Infrastructure management

Centrally monitorheterogeneousenvironments

Application management

Manage business- criticalapplications

Service-driven operations

- Business service views- Service health

monitoring- Root-cause analysis- Impact analysis

Business process management

- Business processmodeling

- Visibility intobusiness processexecution

- Financial impactanalysis

IT processes core“Consolidated service desk”

- SLM- Configuration- Problem- Incident & request- Change

IT processes advanced

- Continuity, availability, capacity- Financial management, security- Build, test, release

IT governance

- Advanced IT/business alignment- Manage investments- Regulatory compliance


Real-time business agilityOpenView• Web Services

management engine• Dynamic NetValue

Analyzer

Utility Data Center• Utility Controller

Business efficiencyOpenView• Storage Accountant• Service Desk• Service Information Portal• Service Navigator• Service Activator• Service Quality Manager• Reporter • Internet Services• Transaction Analyzer• Smart application plug-ins• Internet Usage ManagerVirtual Server Environment

Business stabilityOpenView

• Operations• Network Node Manager• Performance Insight• Data Protector• TeMIP• Storage Area Manager• Self-healing solutions

ProLiant EssentialsInsight Manager

man

agem

ent &

con

trol

Software Tools

utilizationdiscrete partitioned integrated clustered virtualized federated

reso

urce

sse

rvic

esbu

sine

ss

proc

esse

s


HP ITSM reference modelEnabled by OpenView (OV)

• OV Service Navigator

• OV Performance Management• OV Web Management• Software Distribution• Storage Management

• OV Web Management• OV Operations Management• OV Performance Management

• OV Service DeskConfigurationChangeProjectOrganizationService Level Management

• OV Service DeskOrganizationService Level Management

• OV Service DeskConfigurationChange

• OV Network Management • OV Web Management• OV Service Navigator• OV Performance Insight• OV Operations Management• OV Performance Management• OV Service Reporter

• OV Service DeskService CallsIncidentsProblem Management


IT Service Management = People, processes & technology

Processes - Activity flows, predictable and measurable outcomes, continuous Improvement

People - Roles & Responsibilities, Management, Skills Development & Discipline, Organizational Structure, Culture

Technology - Infrastructure and management tools


Where does ITSM Fit?

What should we do?

How should we do itin a particular context?

How should we do itIn our organization?

How should we do it?

BS 15000, ISO 20000

ITIL

MOF / HP ITSM

Standard

Best Practice

Applied Framework

Organizational Policies, Practices and Procedures


Value Proposition: Quality of IT Services

IT service managementpeople-process-technology

Business func.

Business func.

Business func.

business

IT Custom

er(User)IT Service

IT Service

designproductionplanningfinancesaccountingmanufacturingPeopleetc.

IT Service

Itsm

pro

cess

es.

appilicationsserversrouterswspcswitchespeopleetc.

IT infrastructure


ITSM Implementation value• Enable transformation from technology provider to that of

IT service provider running IT as a business, for the business

• Manage cost, quality, agility, and risk during the complete IT service lifecycle

• Assess the current and desired state of IT and identify potential gaps

• Introduce a common “language” internally, across partners, suppliers, and the business units that IT supports

• Maximize investment in IT people, IT processes, and IT management technology to deliver business-focused IT services


How do customers get started? A step-wise approach

Adaptive• Prioritize IT actions by Business impact

• Manage end-to-end business interactions

• Adopt a business-oriented service management culture

• Optimize utilization and performance of business processes and applications

• Virtualize complete data centers

Efficient• Formalize and automate

IT processes• Link IT with the business –

communicate, measure and deliver services

• Align resources and IT processes

• Establish work flows and process owners with right skills, roles, and metrics

Stable• Build firm foundation for

IT infrastructure• Manage asset lifecycles• Ensure healthy resource

management: servers, storage, PCs, network, printers, storage

man

agem

ent &

con

trol

discrete partitioned integrated clustered virtualized federated

reso

urce

sse

rvic

esbu

sine

ss

proc

esse

s

Current State

Utilization


Adaptive Enterprise:business and IT are perfectly synchronized

Web services

Business process management

MainframePersonal

InternetClient server

adaptiveenterprise

Service-centric management

Horizontal architectureflexible, simplified, supply matches demand dynamically

Leve

l of e

nter

pris

e ad

apta

bilit

y

Silos of technologyinflexible to change, complex, over-provisioned

Time


What does this mean?….Transform from silos to services

Asset based charging

IT as a cost center

Technology outcomes

Service-based charging

Shared Service Centers & IT for profit

Business outcomes

IT focused SLAs Business-focused SLA’s

Weak link between business & IT processes

Business-IT process integration

“Run IT as a business for the business”


• IT Transformation to Services is a strategic initiative – not a tactical one• Migration to Services is a journey – not a “big bang”• Journey involves people, process, technology and IT/Application

consolidation • Addresses existing pain points and areas for longer term transformation• Embraces heterogeneity - leveraging existing “investments” rather than

“rip and replace”• Requires a collaborative approach with customers, partners and the

industry

6 Key elements to transform from silos to services

Business & IT strategy

Architecture& governance

People & change mgmt

Technologyplatform

Programmanagement

Applications

Infrastructure

Business Processes

#1 #2 #3 #4 #5 #6

Services, processes

& measures

Service planning

IT strategy & architecture planning

Operations management

Problem managementIncident and service request management

Security managementContinuity management

Availability managementCapacity management

Financial management

Service build and test

Release to production

Service-level managementChange management

Configurationmanagement

Customer management

IT business assessment


One Approach: HP ITSM from silo to services Transformation methodology

Iterative transformation from silos to services

Ste

ps

2-4+ weeks

Architect & validate

2-8+ weeks

Strategy & value

Detailed design

3-10+ weeks 3-12+ weeks

Manage & evolve

2-6+ weeks

Implement

• Vision• Business

relationship & value

• Strategic direction

• Sponsorship

Val

ue

• Gap analysis• Solution

alternatives• Phases planned• Awareness

training

• Introduce new processes & technology

• Skills developed• Acceptance test• Process, educ,

technology roadmap

Vorbereitung

Monat

xy

Monat

xy

1

Avail. / Capac. / Cont. Plan

Zeit

Monat

xy

21 21 21 2

Projekt

Start

Projekt

Ende

Phase

4

Phase

2

Phase

1

Ziele,

Business

Plan • Living the new

processes• Review• Continuous

improvement of people and processes

Management of change / marketing and communication / organization design & skillsCommunication Plan Development Methodology

- Linking IT Efforts and Communication

Project Tactical Plans

Communication Plan

Project Strategy

Audience Message to be Communicated

Activities & TimingCommunicationChannels

Themes and Objectives of Communication

Issues & Resolution Responsibilities

• Service portfolio & sourcing strategy

• Detailed technical, org. Process design

• Migration & cutover plans

• Workforce dev. Plan


Service with System.We follow ITSM.

ITSM Process ConceptionITIL Foundation Trainings

Process ImplementationProcess Rollout

Living the Processes

Milestones

Success factors

Processes have to be lived

Everyone is involvedGeneral conditions

Valid for Informatics EMEA

ITIL & HP Reference Model

Service& CustomerOrientation

DefinedProcesses &

RolesMeasurable

ServiceLevels

Efficiency &Transparency

FDA/CSVGuidelines

DefinedServices

Where to start?

• Establish business objectives, critical success factors, and needs, create a vision• Assess where you are today against where you want to be against industry best practice• Benchmark your current status to get a formal stake in the ground … where possible,

should be carried out by 3rd party• Implement a service improvement program and build a service improvement plan• Implement improvements – whilst keeping an eye on changing business objectives, and

delivering business benefit the whole time• Regularly assess and benchmark for continual improvement


HP’s Experience – The Results So Far

• Downtime reduced 49%• Turn Around time for change requests went from

14 days average to 1.5 days average• Time to resolution dropped 90%• Customer satisfaction score increased from 2.5 to

4.2 (on 5 point scale)• First NO INCIDENT DAY on Feb 5, 2003• ITSM process IT savings: 20%• Incremental instrumentation savings: 18%


Results: Sustained business model operating at reduced costs and increased business value

10%

40%

Operation

Consolidation

Innovation30%

60%

Today3 years

from now

20-25%

35-40%

Source: HP IT department


The HP IT merger journey

85 Data Centers300 Data Centers

TodayPre-merger

Innovation = 34% of IT spendInnovation = 28% of IT spend

IT cost = 3.5% of revenueIT cost = 4.6% of revenue

19,000 servers25,000 servers4,000 applications7,000+ applications

85 Data Centers300 Data Centers

TodayPre-merger

Innovation = 34% of IT spendInnovation = 28% of IT spend

IT cost = 3.5% of revenueIT cost = 4.6% of revenue

19,000 servers25,000 servers4,000 applications7,000+ applications

Phase 1Phase 1 Phase 2

Products Supply Chain Demand ChainPlanning

Customer and Sales Ops

Marketing

OrderManagement

Finance

Sourcing

MakingDelivering

Indirect Procurement

Phase 2Phase 2

Products Supply Chain Demand ChainPlanning


Marketing

OrderManagement

Finance

Sourcing

MakingDelivering


Products Supply Chain Demand ChainProducts Supply Chain Demand ChainPlanning


Marketing

OrderManagement

Finance

Sourcing

MakingDelivering


11 Data Centers

Target

Innovation = 50% of IT spend

IT cost = <3.0% of revenue

10,000 servers1,500 applications

11 Data Centers

Target

Innovation = 50% of IT spend

IT cost = <3.0% of revenue

10,000 servers1,500 applications

Adaptive (Business Processes)Efficient (Applications)

Stable (Infrastructure)


Lessons Learned• Implementation requires integration of design

authorities • There are no green fields• There is natural resistance to change.− “Who died and made you king" syndrome?− Disturbance to job security− Disturbance to marketable skill-set− Disturbance to personal network

• There is logical resistance to change• Management makes a difference


Thank you

From Silos to Shared Services -ITiL and ITSM

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