ITIL Foundation Royal Case Study Instructor Guide

ITpreneurs Service Management

Instructor GuIde

ItIL ITIL is a registered trade mark of AXELOS Limited.

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Copyright ITIL Foundation

Copyright and Trademark Information forPartners/Stakeholders.

ITIL is a registered trade mark of AXELOS Limited.The Swirl logo is a trade mark of AXELOS Limited.The ITIL Accredited Training Organization logo is a trade markof AXELOS Limited.

IT Infrastructure Library is a registered trademark of AXELOS Limited

No part of this document may be reproduced in any form without the written permission of bothITpreneurs and AXELOS Limited. Permission can be requested at www.ITpreneurs.com [email protected].

Material in this document has been sourced from ITIL Service Lifecycle Suite 2nd Edition, 2011.

Copyright ITpreneurs and AXELOS Limited 2014. All rights reserved. Please note that the information contained in this material is subject to change without notice. Furthermore, this material contains proprietary information that is protected by copyright.No part of this material may be photocopied, reproduced, ortranslated to another language without the prior consent ofITpreneurs Nederland B.V. The language used in this course is US English. Our sources ofreference for grammar, syntax, and mechanics are from The Chicago Manual of Style, The American Heritage Dictionary, andthe Microsoft Manual of Style for Technical Publications.

More on:http://www.itil-officialsite.com/IntellectualPropertyRights/TrademarkLicensing.aspx

Copyright ITpreneurs and AXELOS Limited 2014 ITpreneurs. All rights reserved.

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iCopyright ITpreneurs and AXELOS Limited 2014. All rights reserved.

CONTENTSList of icons iii

foLLow Us v

itiL first Aid Kit informAtion vii

AcKnowLedgements ix

Unit 1: coUrse introdUction 11.1 Student and Instructor Introductions 21.2 ITIL Foundation Course 31.3 Course Learning Objectives 41.4 Course Agenda 51.5 ITIL Qualification Scheme 71.6 Exercise The Arora Family 8

Unit 2: service mAnAgement As A PrActice 112.1 Best Practices in the Public Domain 122.2 ITIL as a Good Practice 152.3 Concept of Service 172.4 Concept of Service Management 242.5 Processes and Functions 302.6 The RACI Model 362.7 Roles and Responsibilities 372.8 Exercise The Lost Laundry 402.9 Module Summary 422.10 Test Questions for Service Management as a Practice 44

Unit 3: service LifecycLe 453.1 The Service Lifecycle 463.2 Basic Concepts of Service Strategy 483.3 Basic Concepts of Service Design 533.4 Basic Concepts of Service Transition 573.5 Basic Concepts of Service Operation 623.6 Basic Concepts of Continual Service Improvement 673.7 Exercise The New Swimming Pool 723.8 Module Summary 74

Unit 4: service strAtegy 774.1 Basic Concepts of Service Strategy 794.2 Principles and Models of Service Strategy 904.3 Processes of Service Strategy 944.3.1 Service Portfolio Management 954.3.2 Financial Management for IT Services 1014.3.3 Business Relationship Management 1044.4 Module Summary 1074.5 Test Questions for Service Strategy 109

Unit 5: service design 1115.1 Basic Concept of Service Design 1135.2 Principles and Models of Service Design 1145.2.1 Service Solutions for New or Changed Services 1165.2.2 Management Information Systems and Tools 1175.2.3 Technology Architectures and Management Architectures 1185.2.4 Processes Required 1215.2.5 Measurement Methods and Metrics 1225.3 Processes of Service Design 1255.3.1 Design Coordination 1265.3.2 Service Level Management 129

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ii Copyright ITpreneurs and AXELOS Limited 2014. All rights reserved.

5.3.3 Service Catalogue Management 1425.3.4 Availability Management 1485.3.5 Information Security Management 1555.3.6 Supplier Management 1595.3.7 Capacity Management 1635.3.8 IT Service Continuity Management 1695.4 Exercise Crossword 1735.5 Module Summary 1755.6 Test Questions for Service Design 177

Unit 6: service trAnsition 1836.1 Change Management 1856.2 Service Asset and Configuration Management 2006.3 Release and Deployment Management 2066.4 Transition Planning and Support 2106.5 Knowledge Management 2136.6 Exercise Crossword 2186.7 Module Summary 2206.8 Test Questions for Service Transition 222

Unit 7: service oPerAtion 2257.1 Event Management 2277.2 Incident Management 2317.3 Request Fulfilment 2417.4 Problem Management 2447.5 Access Management 2537.6 Service Operations Functions 2577.6.1The Service Desk Function 2587.6.2 The Technical Management Function 2647.6.3 The Application Management Function 2667.6.4 The IT Operation Management Function 2687.7 Exercise Complaint Handling and Service Recovery 2717.8 Module Summary 2727.9 Test Questions for Service Operation 274

Unit 8: continUAL service imProvement 2778.1 Basic Concepts of CSI 2818.2 Principles and Models of CSI 2838.3 CSI Process 2878.4 Exercise Crossword 2928.5 Module Summary 2948.6 Test Questions for Continual Service Improvement 295

Unit 9: technoLogy And ArchitectUre 2979.1 Service Automation 2989.2 Competence and Skills for Service Management 3019.3 Competence and Skills Framework 3049.4 Training 3059.5 Module Summary 306

Unit 10: exAm PrePArAtion 309

mocK exAm 313

APPendix A: cAse stUdy 325

APPendix B: gLossAry 339

APPendix c: Answers 433

APPendix d: syLLABUs 455

APPendix e: AdditionAL informAtion 467

APPendix f: KePner-tregoe methodoLogy 477

APPendix g: reLeAse notes 479

APPendix h: coUrse AgendA 481

feedBAcK form 487

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iiiCopyright ITpreneurs and AXELOS Limited 2014. All rights reserved.

List of icons

Refers to content that is meant for the instructor to lecture in class

Refers to content that is meant for the student to read on his/her own in class or at home

Refers to information items that are not covered by the instructor in class but help the student understand a particular topic in detail

Refers to a Scenario-Based Activity that the student must do in class or as homework after the completion of a topic or in between a topic

Refers to items or contents that are given in a step-by-step-instruction or checklist format

Refers to an important snippet of information that the instructors should remember to touch upon while conducting an activity or during a lecture

Refers to the simplification of content that was previously difficult to understand or confusing

Refers to an extra piece of information that is not very important but still good to know

Refers to light, conversational snippets of information or that the instructor can use in class to break the monotony of a serious and tedious lecture

Refers to general-knowledge-based information that the instructor can use to provide relief to students during a serious or tedious classroom lecture

Refers to space for the students to take notes

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vCopyright ITpreneurs and AXELOS Limited 2014. All rights reserved.

www.ITpreneurs.com

Copyright 2013 ITpreneurs. All rights reserved

Follow us Before you start the course, please take a moment to:

Like us on Facebook http://www.facebook.com/ITpreneurs

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"Add us in your circle" on Google Plus http://gplus.to/ITpreneurs

"Link with us" on Linkedin http://www.linkedin.com/company/ITpreneurs

"Watch us" on YouTube http://www.youtube.com/user/ITpreneurs

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viiCopyright ITpreneurs and AXELOS Limited 2014. All rights reserved.

Free ITIL First Aid Kit The ITIL First Aid Kit (retail value $50) is an essential toolkit for effective

utilization of an IT Infrastructure Library (ITIL) for any organisation. It

provides guidelines for areas to pay particular attention to and possible

strategies to include in your program approach.

Essential Information for professionals and organisations using ITIL

Please scan the QR code below to download your free ITIL First Aid Kit.

itilfakpromo.itpreneurs.com

ITIL is a registered trade mark of AXELOS Limited.

itil fak.indd 3 11-10-12 14:04

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ixCopyright ITpreneurs and AXELOS Limited 2014. All rights reserved.

We would like to sincerely thank the experts who have contributed to the shaped ITpreneurs ITIL Foundation.

Authors / Subject Matter Experts

y P J Corum - Quality Assurance Institute y Cesar Augusto Monteiro - IT Partners,

Brasil y Sergio Rubinato Filho - CA (CA Education),

Brasil y Service Management Art, Calgary,

Canada y Brian Bourne - Compagnie Gnrale de

Communication

y Cazzy Jordan - General Dynamics Information Technology

y Marcel Foederer - ITpreneurs

Review Board Members :

y Per Ivar Lillebrten - Ciber y Fatih Celen - Impetus Consulting y Michael D Costigan - CSC y Lars Kristian Larsen - KMD y Erik Bartholdy - KMD y Bartosz Kozakiewicz - Conlea y Jrgen Letager Hansen - berg y Krzysztof Kozakiewicz - Conlea

AcKnowLedgements

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Copyright ITpreneurs and AXELOS Limited 2014. All rights reserved. 1

DURATION: 1 HOUR AND 15 MINUTES

module 1COURSE INTRODUCTION

introdUceCase Study THE

royALchAo PhrAyA

hoteL

discUssCourse Agenda

shAreLearning Objectives

oUtLineITIL Qualification Scheme

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| COURSE INTRODUCTION | ITIL FOUNDATION | INSTRUCTOR |

1.1 stUdent And instrUctor introdUctions

Course Introduction

2

ITIL Foundation Course

Student and Instructor Introductions

IntroductionWe would like to hear about you. Please share with the class: Your name. Your profession. Your role. Your background in IT. Your familiarity with the IT Infrastructure Library (ITIL). What you expect to learn over the next three days.

Just Concluded t r a n s i t i o n

1.2ITIL Foundation Course

1.1 Student and Instructor Introductions

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| Instructor | ItIL FounDAtIon | coursE IntroDuctIon |

1.2 itiL foUndAtion coUrse

Course Introduction

3


The Service Lifecycle

ContinualService

Improvement Service Transition

ServiceStrategy

Service Operation

ServiceDesign

Based on AXELOS ITIL Service Lifecycle Suite 2nd Edition, 2011. Reproduced under licence from AXELOS

ITIL = Information Technology Infrastructure Library

The ITIL Service Lifecycle.

SpeakingPoints

the service LifecycleThis course will guide the students in understanding the basic concepts of IT Service Management (ITSM), as described in the five stages of the Service Lifecycle; that is, Service Strategy, Service Design, Service Transition, Service Operation, and Continual Service Improvement (CSI). These stages will be dealt with in detail in subsequent modules.


1.3Course Learning Objectives

1.2ITIL Foundation Course

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1.3 coUrse LeArning oBjectives

Course Introduction

4


Course Learning Objectives

At the end of this course, you will gain the knowledge and skills to: Comprehend Service Management as a practice. Understand the Service Lifecycle. Know the generic concepts and definitions. Understand the key principles and models used behind selected processes. Identify the selected processes. Understand the selected functions and roles. Comprehend the technology and architecture of the Service Lifecycle. Comprehend competence and training.


1.4Course Agenda

1.3Course Learning Objectives

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1.4 coUrse AgendA

Course Introduction

5


Course Agenda

DAY 1 Start Time End Time

Module 1: Course Introduction 08:30 09:45

Module 2: Service Management as a Practice 09:45 11:30

Module 3: Service Lifecycle 11:30 12:00

Lunch 12:00 01:00

Module 3: Service Lifecycle 01:00 02:00

Break 02:00 02:15

Module 4: Service Strategy 02:15 04:30

Module 5: Service Design 04:30 05:00

Homework Study Material Evening

Course Introduction

6


Course Agenda (Contd.)


Day 1 Review + Module 5: Service Design 08:30 10:45

Module 6: Service Transition 10:45 12:00

Lunch 12:00 01:00

Module 6: Service Transition 01:00 02:30

Module 7: Service Operation 02:30 03:30

Break 03:30 03:45


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Course Introduction

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Course Agenda (Contd.)



Module 8: Continual Service Improvement 09:00 11:15

Module 9: Technology and Architecture 11:15 12:00

Lunch 12:00 01:00

Module 9: Technology and Architecture 01:00 01:30

Exam Preparation and Evaluation 01:30 03:15

Break 03:15 04:00

Exam 04:00 05:00

SpeakingPoints

It is essential that the students of this course complete all units of the Foundation certificate in ITSM to be successful at the certification exam. This entire course will be completed in three days, which includes a mock exam and a real exam at the end of the course.

1. Go through the course Agenda with the students.2. Though review time for the previous days content has not been added at the beginning of

Day 2 and Day 3, it is recommended that you take at least 30 mins at the start of each days session to review what was taught in the previous day.

3. It is not mandatory that you to begin and complete each module strictly as per the time duration given in the agenda. The duration given is only indicative and you can include your own 5 to 10 mins breaks in between lectures as well as increase or decrease the lecture time for each module as per the class requirement.


1.5ITIL Qualification Scheme

1.4Course Agenda

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1.5 itiL QUALificAtion scheme

Course Introduction

8


ITIL Qualification Scheme and Credit Assignment

Legend

SS Service Strategy

SD Service Design

ST Service Transition

SO Service Operation

CSI Continual Service Improvement

OSA Operational Support and Analysis

PPO Planning, Protection, and Optimization

RCV Release, Control, and Validation

SOA Service Offerings and Agreement


SpeakingPoints

Qualification SchemeThe purpose of the ITIL Foundation Certificate in ITSM is to certify students who have gained knowledge of the terminology, structure, basic concepts, and main principles of ITIL practices for Service Management. The ITIL Foundation Certificate in ITSM will guide the students to apply the ITIL practices for Service Management in the real world. After the students pass the certification exam, they will gain credits of two points.


1.6Exercise The Arora Family

1.5ITIL Qualification Scheme

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1.6 exercise the ArorA fAmiLy

Course Introduction

9


The Royal Chao Phraya Hotel

We are pleased to introduce the Royal Chao Phraya Hotel case study. The case study will be used for various exercises throughout this course. Please take the specified time to read through the case study. The case study will be followed by our first exercise.

Learning FocusThis exercise is intended to introduce the students to some of the basic concepts of Service Management.

Learning MethodologyThe intent of this exercise is not to achieve a correct result at this stage, but to:

y Introduce some of the basic concepts of Service Management. y Address the knowledge of some of those students who presume to know ITIL best practices

based on their previous operational experience.

Review some of the key points below with the students at the close of the exercise:

y There is no distinction between Request Fulfillment, Incident Management, and the business. y Kit didnt register the Incident or check whether other people had earlier reported the same

Incident in that room or on that floor.

y The receptionist didnt check if the Incident was resolved. y There was inadequate reaction to early checkout. The lost revenue is much greater than $19. y There was no linking of the similar Incidents faced by both Mr. Brock and Mr. Arora. y There is a damage caused by inconsistent compensation for a similar event. y There has been no Change Management on maintenance work and its effects on services. y There is no Configuration Management. y There is poor service-oriented communications.

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Instruct the students to read the case study on their own. Ask them to underline or highlight the identified errors that could be corrected through the application of Service Management practices.

Delivery Instructions

cAse stUdyThe Arora family arrived at the Royal Chao Phraya Hotel, enthusiastic about their upcoming stay. Mr. Arora checked in while his wife and two children, Ajay and Shalini, waited patiently in the lobby. It took some time to check the family in because the receptionist was first dealing with a lengthy complaint from another guest about her shower not having hot water and then handling continual interruptions on the telephone from people calling to ask about the availability of rooms for the upcoming Songkraan festival.

After about 10 minutes, the Arora family was ready to go to their room, 1711. Their bellhop, Warit, led the way. When they reached the room, they found it stifling hot and musty. They turned on the air-conditioning, but it seemed ineffective. Mrs. Arora was quite upset and instructed her husband to get another room immediately. They had not escaped the heat of Mumbai to stay in an oven in Bangkok!

Mr. Arora returned to the reception and again waited in line while people were checked in. He spoke to the front-desk agent, Kit, and informed her of the situation. Kit was very nice and explained, As the room hasnt been used for a few days, it takes some time for the air-conditioning to take effect. I suggest that you close the curtains, take some refreshments at the Sugar Reef bar, and return in 20 minutes. Here is a beverage coupon for $20 as compensation for the inconvenience.

Mr. Arora begrudgingly agreed and took his family for a refreshing drink at the Sugar Reef bar. The front desk heard no more from him until he came to check out the next day. Oh, you are leaving a day early, Mr. Arora?

Yes, he replied, the room was too hot for my wife and even though conditions improved slightly during the course of the evening, my wife really wants to move to the Mandarin Oriental today.

Oh, I am sorry to hear that! I do hope that you will return and that next time, your experience will be much better. As a token of our apologies, I have removed from your bill the $19 charged for the video game you ordered.

Mr. Arora thanked her for the token of goodwill and headed for the front of the lobby to wait for his car to be pulled up from the garage. While waiting, Mr. Arora heard another guest talking to Sonny Singh, the Concierge. Ive been coming here for years, Sonny; I am so upset that this stay was ruined by the stifling heat in my room.

Did you complain about it to Mr. Van Rijn, Mr. Brock? Sonny asked. No, answered Mr. Brock, Dimitri is away for the day.

But at least they gave you some compensation, sir?

Yes Sonny, they gave me the room free, but that didnt solve the problem, did it?

Well, I guess saving $250 is some consolation, Mr. Brock. Maybe Sonny maybe.

Mr. Arora was astonished to hear this and felt quite discouraged. He was just glad that his wife had not heard this story. Maybe he hadnt complained enough! The hotel certainly hadnt offered him any such compensation. Now he knew that the move to a new hotel was the right step.

Meanwhile, Sonny wandered back to the front desk and found the receptionist, Apple, chatting with Pap.

Apple, I just heard that there is a problem with the air-conditioning on the 17th floor. Is someone working on that?

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Oh, you must have spoken to Mr. Arora. He was a bit upset, but I think I satisfied him by compensating his bill.

No, it wasnt Mr. Arora, it was Mr. Brock and he is still upset.

Thats strange, said Pap, I had told Kit yesterday that we were doing maintenance on the 17th floor and that we might lose some suction power on the air-conditioning units.

Did you tell her to block the rooms, Pap? asked Sonny. No, but I thought that would have been obvious, wouldnt it?

Meanwhile, the Aroras drove away in their chauffeured car.

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11Copyright ITpreneurs and AXELOS Limited 2014. All rights reserved.

DURATION: 1 HOUR AND 45 MINUTES

shAre

Learning Objectives

identify

Challenges in an IT Organization

oUtLine

ITIL as a Good Practice

define

Service | Service Management

| Functions | Processes

module 2SERVICE MANAGEMENT

AS A PRACTICE

BUsiness

vALUe

LINK TO

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| SERVICE MANAGEMENT AS A PRACTICE | ITIL FOUNDATION | INSTRUCTOR |

Copyright ITpreneurs and AXELOS Limited 2014. All rights reserved.

2

Service Management as a PracticeModule Introduction

Learning Objectives

At the end of this module, you will be able to: Describe:

the concept of best practices in the public domain

the concept of service Management and IT Service Management (ITSM)

the importance of functions and processes in an organization

a process model and its characteristics

Identify: Stakeholders in service management

and explain types of customers

Define: and explain the concept of Service and types of Services

2.1 Best PrActices in the PUBLic domAin

3

Service Management as a PracticeGeneral Concepts

Best Practices in the Public Domain

Best practices are proven activities or processes that have been successfully used by multiple organizations.

Sources for best practices include: Public frameworks (for example, ITIL, COBIT, and CMMI) Standards (for example, ISO/IEC 20000 and ISO/IEC 27001) Proprietary knowledge (for example, vendors, individuals,

and organizations)

ITIL is the popularly accepted and trusted source of best practices for IT Service Management (ITSM).

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| Instructor | ItIL FounDAtIon | sErVIcE MAnAGEMEnt As A PrActIcE |

copyright Itpreneurs and AXELos Limited 2014. All rights reserved.

4


Best Practices in the Public Domain

Sources of Service Management best practices

Academic research

Industry practices

Standards

Internal experience

Training and education

Sources(generate)

Suppliers

Customers

Employees

Technologies

Advisers

Enablers(aggregate)

Drivers(filter)

Scenarios(filter)

Substitutes

Customers

Regulators

Commitments

Compliance

Competition

Knowledge fit for businessObjectives, context and purpose


SpeakingPoints

Best practices are successful innovations that organizations implement to close gaps in customer needs and Service quality. Organizations set standards against competitors and try to close the gaps in its capabilities. Setting standards helps organizations improve Service quality and meet customer requirements for Services. Sources for best practices are listed on the slide.

Organizations should maintain and share public frameworks and standards along with proprietary knowledge to be at an advantage with competition and to be able to collaborate and coordinate easily across organizations.

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Public frameworks and standards are more attractive than proprietary knowledge because of the following reasons:

Proprietary Knowledge Public Frameworks

Proprietary knowledge:

y Is often unstated, undocumented, and deeply rooted in an organization. As a result, adoption, duplication, and transfer of proprietary knowledge are difficult without the cooperation of the owners.

y Is characteristic of a local and specific requirement of the business. As a result, unless an organization is aware of such knowledge, this knowledge can become ineffective in its usage.

y Becomes a public framework only when owners of this knowledge agree to making the proprietary knowledge public through commercial terms, such as purchases and license agreements. Owners of proprietary knowledge expect rewards for their knowledge and investments.

Public frameworks and standards:

y Are validated across diverse environmental contexts and are not limited to a single organization. Multiple organizations, disciplines, partners, supplier, and competitors examine these frameworks and standards. Some well-known frameworks and standards are:

o ITIL o LEAN o Six Sigma o COBIT o CMMI o PRINCE2 o PMBOK

o ISO 9000 o ISO/IEC 20000

o ISO/IEC 27001Quoted text source is ITIL Service Lifecycle Suite 2nd Edition, 2011. Copyright AXELOS Limited 2014. Material is reproduced under license from AXELOS.

y Are more widely found among a large community of professionals, for example, public training and certification. Organizations can acquire public knowledge through the labor market.


2.2ITIL as a Good Practice

2.1Best Practices in the Public Domain

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2.2 itiL As A good PrActice

5


ITIL as a Good Practice ITIL Core

ITIL = Information Technology Infrastructure Library

ContinualService

ImprovementService

Transition

ServiceStrategy

Service Operation

ServiceDesign

The ITIL Service Lifecycle


SpeakingPoints

ITIL adapts all common frameworks of practices and unites all domains of IT Service provision to deliver value to business. ITIL is the most practical approach to Service Management. Some characteristics that make ITIL a global success are:

y It is vendor-neutral: ITSM practices are not based on any specific platform of technology or industry. It is also not tied to any commercial proprietary practice or solution but is owned by the UK government. As a result, ITIL is applicable to any IT organization.

y It is non-prescriptive: ITIL is applicable to all IT Service organizations and their customers because of its robust, established, and time-tested practices. ITIL continues to be useful and applicable in public and private sectors; internal and external Service Providers, small, medium, and large enterprises; and within any technical location.

y It is best practice: ITIL embodies the learning experiences and thoughts of leaders who provide best Services to customers across the globe.

Because ITIL describes practices that allow organizations to deliver profits, Return on Investment (ROI), and continuous success, many organizations adopt ITIL to:

y Deliver value for customers through services y Integrate the strategy for services with the business strategy and customer needs y Measure, monitor and optimize IT services and service provider performance y Manage the IT investment and budget y Manage risk

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y Manage knowledge y Manage capabilities and resources to deliver services effectively and efficiently y Enable adoption of a standard approach to service management across the enterprise y Change the organizational culture to support the achievement of sustained success y Improve the interaction and relationship with customers y Coordinate the delivery of goods and services across the value network y Optimize and reduce costs.

Quoted text source is ITIL Service Lifecycle Suite 2nd Edition, 2011. Copyright AXELOS Limited 2014. Material is reproduced under license from AXELOS.


2.3Concept of Service

2.2ITIL as a Good Practice

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2.3 concePt of service

6


Concept of Service

Service: A means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks.


SpeakingPoints

Services are a means to deliver value to customers by enabling what the customer wants to achieve (outcomes) without taking any ownership of costs and Risks. All Services have a Service cost when they become operational, which is reflected as Return on Investment (ROI) and Total Cost of Ownership (TCO), and this cost must be managed. To avoid taking ROI and TCO Risks, the customers look to Service Providers to satisfy their need for those Services. The Service Provider, on the other hand, provides those Services according to the requirements of the customers. In doing so, the Service Provider does not expose all costs and Risks that the customer wants to avoid but only exposes the overall cost or price of a Service to the customer. These costs and Risks include all costs and Risk-mitigation measures of the Service Provider. The customer finally compares the cost and reliability of the Service offered and then buys the Service. Some constraints associated with Services are regulation, lack of funding or capacity, or technology limitations.

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7


Concept of Service

ServicesThe types of Services are divided into internal and external.

Internal Services

ExternalServices

Delivered between departments or business units in the same organization

Delivered to external customers

Services

SpeakingPoints

Services should be differentiated as internal and external to help organizations differentiate between Services that support an internal activity and those that essentially help realize business outcomes.

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8


Concept of Service

Services

Internal and External Services

Externalcustomer

Externalcustomer

Externalcustomer

Externalcustomer

Externalcustomer

Externalcustomer

Business unit(internal customer)

Business unit(internal customer)

The business

ITIT department IT department IT department

IT Services

External customer-facing services

Internal customer-facing services

Supporting services (internal)

Business services and products provided by other business units


SpeakingPoints

The figure on the slide shows the difference between internal and external services for an IT Service Provider. Services can be classified as core, enabling or enhancing and are further explained in the subsequent slides.

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9


Concept of Service

IT ServicesFrom the perspective of an IT service provider, an IT service is of three types.

Customer

Enabling Services

Enabling Services

EnhancingServices(option)

Core Services

SpeakingPoints

IT ServicesIs made up of information technology, people, and processes. An IT Service Provider provides this Service to one or more customers to support its business processes.

It can be further classified into: y Core Services: Represent the value that the customers need and for which they are willing to

pay. They deliver the basic outcomes that are needed by one or more customers. Core Services represent the value proposition for the customer and provide the base for their continued utilization and satisfaction.

y Enabling Services: Are Services that are required to deliver a core Service. They are the basic factors that allow the customers to receive the real Service. As a result, customers may not perceive these Services as Services in their own right because the Services may or may not be visible to them.

y Enhancing Services: Are Services that are added to a core Service to attract customers to buy a Service. They are not crucial to the delivery of a core Service because they are only added as excitement factors.

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Examples of core, enabling and enhancing services

Core service Enabling service Enhancing service

IT service (office automation)

Word processingDownload and installation of updates

Document publication to professional printer for high-quality brochure

IT service (benefits tracking)

Employees of a company can monitor the status of their benefits (such as health insurance and retirement accounts).

A portal that provides a userfriendly front-end access to the benefits tracking service.

Customers can create and manage a fitness or weightloss programme. Customers who show progress in their programme are awarded a discount on their premiums.


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The table shows the three types of IT Services.

type of service Definition Description

Supporting service, sometimes called an infrastructure service, although they are often broader than just infrastructure

A service that is not directly used by the business, but is required by the IT service provider so they can provide other IT services for example, directory services, naming services, the network or communication services.

Supporting services are defined to allow IT teams to identify the interdependencies between IT components. They will also show how these components are used to deliver internal and external customer-facing services.

Supporting services enable IT processes and services, but are not directly visible to the customer.

Some IT teams view recipients of supporting services as customers. Although this promotes good service quality, it is also misleading. Supporting services only exist to be combined with other supporting services to produce customer-facing services. If they cannot, they are of no value and their existence should be questioned.

There can be no service level agreements for supporting services as they are all internal to the same department. Instead, the performance of supporting services should be managed using operational level agreements.

It should be noted that the figure Internal and External Services (given on slide 8) only refers to services originating inside the organization. In some cases supporting services are sourced from outside the organization. In these cases they are managed in the same way as other supporting services, but using underpinning contracts rather than operational level agreements.

Internal customer-facing service

An IT service that directly supports a business process managed by another business unit for example, sales reporting service, enterprise resource management.

An internal customer-facing service is identified and defined by the business. If it cannot be perceived by the business as a service, then it is probably a supporting service.Internal customer-facing services rely on an integrated set of supporting services, although these are often not seen or understood by the customer or user.

Internal customer-facing services are managed according to service level agreements.

External customer-facing service

An IT service that is directly provided by IT to an external customer for example, internet access at an airport.

An external customer-facing service is available to external customers and is offered to meet business objectives defined in the organizations strategy.

An external customer-facing IT service is also a business service in its own right, since it is used to conduct the business of the organization with external customers.

Depending on the strategy of the organization, the service is either provided free of charge (many government agencies provide services to the public for no fee), or it is billed directly to the person or organization using the service. In other cases, the service may be provided free to the customer, but paid for by a third party, such as an advertiser or sponsor. These services are managed using a contract even a simple online agreement constitutes a contract of sale and purchase with terms and conditions.

Quoted text source is ITIL Service Lifecycle Suite 2nd Edition, 2011. Copyright AXELOS Limited 2014. Material is reproduced under license from AXELOS.Sa

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10


Concept of Service

Types of Customers

Internal Customers

ExternalCustomers

People or departments working in the same organization

People not employed by the organization or separate legal entities

Customer

SpeakingPoints

Types of CustomersCustomers can be both internal and external. Both internal and external customers must be given an agreed level of Service along with the same customer Service levels. Given below is an example of both types of customers.

Internal..the marketing department is an internal customer of the IT organization because it uses IT services. The head of marketing and the CIO both report to the chief executive officer (CEO). If IT charges for its services, the money paid is an internal transaction in the organizations accounting system i.e. not real revenue.

Externalan airline might obtain consulting services from a large consulting firm. Two-thirds of the contract value is paid in cash, and one-third is paid in air tickets at an equivalent value.Quoted text source is ITIL Service Lifecycle Suite 2nd Edition, 2011. Copyright AXELOS Limited 2014. Material is reproduced under license from AXELOS.


2.4Concept of Service Management

2.3Concept of Service

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2.4 concePt of service mAnAgement

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Concept of Service Management

Service Management: Is a professional practice that is globally supported by qualification schemes and standards. Must transform capabilities and resources into valuable Services.

Service Management: A set of specialized organizational capabilities for providing value to customers in the form of services.


SpeakingPoints

Service Management is a set of specialized organizational capabilities that provides value to customers in the form of Services. It is a professional practice that is supported by a vast body of knowledge, experience, and skills. The core of Service Management lies in the act of transforming capabilities and resources into valuable Services. An organization without appropriate Service Management in place will not have the required capabilities that can transform resources that by themselves have low intrinsic value for customers. On the other hand, if a Service Providers capabilities are mature, the quality of Service that the customers wants will be produced in a timely and cost-effective manner.

Capabilities: y Take the form of functions and processes for managing Services over a Lifecycle. y Represent an organizations capacity, competency, and confidence for action.

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12


Concept of Service Management

Challenges of Service ManagementSome challenges of Service Management capabilities are: They are intangible in nature. The demand for capability is tightly linked to the assets of the customer. They involve high level of contact for Service producers and consumers. The Service output and Service capacity are perishable.

SpeakingPoints

Some challenges of Service Management capabilities are:

y They are intangible in nature. Capabilities are difficult to measure, control, and validate. y The demand for capability is tightly linked to the assets of the customer. Customers and customer

assets, such as processes, applications, documents, and transactions, arrive with demand and enhance the production of Services.

y They have a high level of contact for Service producers and consumers. The absence of buffer between the creations of the Service Providers Service and the customers consumption of that Service makes Service Management capabilities difficult to achieve.

y The Service output and Service capacity are perishable. Service Providers need to ensure that they provide a steady supply of demand from customers and assure the customers of a consistent and quality Service.

Service Management had its origins in the airlines, banking, hotel, and phone businesses. It is now adopted by IT as a Service-oriented approach to manage applications, infrastructure, and processes.

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Concept of IT Service Management

IT service management (ITSM): The implementation and management of quality IT services that meet the needs of the business. IT service management is performed by IT service providers through an appropriate mix of people, process and information technology.


SpeakingPoints

itsmThe meaning of IT keeps changing depending on the various perspectives of the business and people. As a result, these perspectives need to be recognized and balanced to communicate the value of ITSM and to know the context for how the business looks at the IT organization.

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Concept of IT Service Management

IT Service Management Meanings

IT Service Management

A collection of systems, applications

and infrastructures

An organization with its own set of capabilities and

resources

A category of business assets and

is treated as an investment

A category of services utilized by

business and treated as an expense

SpeakingPoints

Some meanings of ITSM are: y IT is a collection of systems, applications and infrastructures which are components or sub-

assemblies of a larger product. They enable or are embedded in processes and services.

y IT is an organization with its own set of capabilities and resources. IT organizations can be of various types such as business functions, shared services units and enterprise-level core units.

y IT is a category of services utilized by business. The services are typically IT applications and infrastructure that are packaged and offered by internal IT organizations or external service providers. IT costs are treated as business expenses.

y IT is a category of business assets that provide a stream of benefits for their owners, including, but not limited to, revenue, income and profit. IT costs are treated as investments.


Using the principles of Service Management, all IT organizations must act as Service Providers to make sure that organizations deliver the needs of the customers. To carry out ITSM effectively and efficiently, IT Services should be managed from the business perspective.

The IT Service Provider must communicate to the customer if the Services required cannot be delivered according to the agreed level of performance or cost. To know that a good relationship exists between an IT Service Provider and its customers, the IT Service Provider needs to maintain a balance between the three aspects listed below. The aspects are:

y The customer receives an IT Service that meets its needs. y The IT Service is at an acceptable performance level. y The cost of the IT Service is affordable.

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ITIL defines an IT Service Provider as someone who provides IT services to internal or external customers.


A Service Level Agreement (SLA) is used to document agreements between an IT Service Provider and a customer. It lists the IT Services, defines the Service level targets, and identifies the responsibilities of the IT Service Provider and the customer. A single SLA can cover multiple IT Services or customers.

15


Concept of Stakeholders in Service Management

TeamsInternal Stakeholders

Functions, groups, and teams deliver the services within the organization.

Functions

Groups

External StakeholdersCustomers buy goods and services.

Users use IT services directly and on a day-to-day basis.

Suppliers are third parties that supply goods and services.

Customers

Suppliers

Users

SpeakingPoints

Stakeholders in Service ManagementStakeholders are important to an organization, project, or Service. They are interested in the activities, targets, resources, or deliverables from Service Management. Some examples of stakeholders are organizations, Service Providers, customers, consumers, users, partners, employees, shareholders, owners, and suppliers.

Internal stakeholders are functions, groups, and teams that deliver Services.

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External stakeholders are:

Customers y Buy goods or Services. y Define and agree to the Service level targets.

Users y Are people who use the Service every day. y Use IT Services directly. y Are sometimes customers who use these Services.

Suppliers y Are third parties who are responsible for supplying the goods or Services needed for delivering

IT Services. y Examples are commodity hardware and software vendors, network and telecom providers, and

organizations that outsource Services


2.5Processes and Functions

2.4Concept of Service Management

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2.5 Processes And fUnctions

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Processes and Functions

Process: A process is a structured set of activities designed to accomplish a specific objective. A process takes one or more defined inputs and turns them into defined outputs.


SpeakingPoints

Processes are measurable and performance driven. They help managers measure cost, quality, and other variables and help practitioners measure duration and productivity. Processes must also meet the expectations of all internal or external customers. A process exists to deliver a specific, identifiable, and countable result.

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Process Characteristics

Measurable: Performance driven Cost, quality, duration, productivity, and so on

Specific results: Delivery of a specific result Individually identifiable and countable

Customers: Delivery of results to a customer or stakeholder Meeting customer expectations Could be internal or external

Respond to a specific event: Traceable to a specific trigger

SpeakingPoints

Characteristics of ProcessesThe characteristics of processes are:

y They are measurable: A process is driven by performance because managers measure cost, quality, and other variables while practitioners are concerned with duration and productivity.

y They give specific results: A process exists to deliver a specific result that is individually identifiable and countable. However, it is not possible to count the number of completed Service Desks as compared to the number of Changes.

y They are customer-oriented: The result of each process is delivered to a customer or stakeholder, who may be internal or external to the organization. The process must meet the expectations of the customer or stakeholder.

y They respond to specific events: A process whether ongoing or iterative should be traceable to a specific trigger.

Ask the learners to remove all the as from the word masacara, or memorize the phrase Mary Sells Custom Rings, to get essence of the characteristics of processes.

Delivery Notes

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Process Model

Process enablers

Process resourcesProcess resources Process capabilitiesProcess

capabilities

Process control

Process objectivesProcess objectives

Process feedbackProcess feedbackProcess documentationProcess

documentation

Process ownerProcess owner Process policyProcess policy

Including processReports and reviews

Process outputs

Process

Process activitiesProcess activities Process rolesProcess roles

Process improvementsProcess improvementsProcess proceduresProcess procedures

Process work instructionsProcess work instructions

Process metricsProcess metrics

Triggers

Process inputs

Process Model


SpeakingPoints

Process ModelIn the diagram, a process is shown as a set of structured activities designed to accomplish a specific objective. There are clearly defined inputs, activities, and results, along with documented process roles and a continual improvement loop.

A trigger, which may be an input or an Event, initiates a process or an activity within a process. For example, Service failure may trigger the Event Management and Incident Management processes.

To deliver outputs that are reliable, a process can consist of any of the roles, responsibilities, tools, and management controls. Organizations should document and control the processes once you define them. A process that is in control can be repeated and managed. Consequently, you should build measurements and metrics into the process to control and improve it. Organizations should ensure that they incorporate process analysis, results, and metrics regularly in the management reports and process improvements.

In other words, processes are measurable and performance-driven. They help managers measure cost, quality, and other variables and help practitioners measure duration and productivity. Processes must also meet the expectations of all internal or external customers. A process exists to deliver a specific, identifiable, and countable result.

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Functions: Provide structure and stability to organizations. Are self-contained units of organizations, with their own capabilities and resources. Rely on processes for cross-functional coordination and control. Have their own knowledge base, built from experience. Can result in functional silos if there is a lack of coordination or an inward focus.

Function: A function is a team or group of people and the tools they use to perform one or more processes or activities."


SpeakingPoints

According to ITIL, a function is a team or group of people and the tools it uses to perform one or more processes or activities. A function also has the specialized resources needed to generate the desired outcomes. In large organizations, functions maybe divided and performed by several departments and teams, and groups or functions can also be embedded within a single organizational unit, such as the Service Desk. On the other hand, in small organizations, an individual or a group can perform multiple functions, for example, a technical management department performing the functions of a Service Desk.

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Functions GroupPeople performing similar

activities on different technologies into different

organizational structures or different companies

TeamTeam members can work

virtually or in multiple locations towards a mutual

objective but not in the same organization structure

DepartmentBased on hierarchical

reporting structure, where managers are responsible

for the execution of the activities

DivisionComprises of a number of

departments being grouped together, geographically or

product wise

Functions

SpeakingPoints

Different FunctionsFor a successful Service Lifecycle, you should clearly define the roles and responsibilities that are needed to perform the processes and activities in each stage of the Lifecycle. You should establish, manage, and assign roles to individuals and to suitable structures of the organization, such as teams, groups, or functions. The groups, teams, departments, and divisions can be defined as:

group y Are a number of people who have similarities with one another. y Refer to people who perform similar activities although they may work on different technologies

or report into different organizational structures or even different companies.

y Are not formal organizational structures but define common processes across organizations.Team

y Are formally organized and recognized groups. y Are people working together but not in the same organization structure to achieve a common

objective. y Can be co-located or work in multiple locations and operate virtually. y Are useful for collaboration, for dealing with a temporary or transitional situation.

Department y Are formal organizational structures that perform a specific set of defined activities on a continuing

basis. y Have a hierarchical reporting structure with managers being responsible for the execution of

activities and the daily management of departmental staff.

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Division y Refers to a grouped number of departments such as geographical or product line groupings. y Is self-contained generally.

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Change Manager Role

Incident Management

Problem Management

Change Management

SoftwareDevelopment Operations Service Desk Desktop Support

IT Management

ORGANIZATIONAL MATRIX

SpeakingPoints

Only the size, structure, and culture of an organization can actually determine if it is a function, role, activity, or set of processes.

ITIL describes four functions Service Desk, Technical Management, IT Operations Management, and Application Management in detail.

The Service Desk acts as the Single Point of Contact (SPoC) for customers when there is a disruption in Services, for Service Requests, or for Requests for Change (RFCs).

Technical Management provides the detailed technical skills and resources required to support continuing IT Services operation and IT infrastructure management.

IT Operations Management executes the day-to-day live activities that are required to manage IT Services and the supporting IT infrastructure. IT Operations Management also conducts IT operations control and facilities management.

Application Management manages applications throughout their Service Lifecycle. It supports and maintains live applications and plays a crucial role in the design, testing, and improvement of applications that are part of IT Services.

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2.6The RACI Model

2.5Processes and Functions

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The RACI Model

RACIRACI is an example of an authority matrix, which can be used within organizations to indicate roles and responsibilities in relation to processes and activities.

Customer Change Sponsor Service

DeskChange Manager

Change Coordinator CAB ECAB

Change Builder

Change Tester Etc.

1.0 Recordthe RFC R R A

2.0 Review the RFC I A R

3.0 Assess and Evaluate Change

R/A R R C/I I

R = Responsible A = Accountable C = Consulted I = Informed

SpeakingPoints

the rAci modelOrganizations must clearly define all roles when designing a Service or a process. The RACI Model offers a close, succinct, and easy way of tracking who does what in each process and allows speedy and confident decision making.

RACI is an acronym for what the four main roles should be:

y Responsible: The person or people responsible for accurate execution or getting the job done. y Accountable: The person who has ownership of Service quality and the result. Only one person

is accountable for one task.

y Consulted: The people who are consulted and whose opinions are sought. Their involvement is through input of knowledge and information.

y Informed: The people who are kept updated on the progress of a Service. They receive information about process execution and quality.

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ITIL Foundation Royal Case Study Instructor Guide

Documents

Transcript of ITIL Foundation Royal Case Study Instructor Guide