Brenda IniguezAmericas ITSM Consulting Director

FrontRange Solutions

Transforming from Help Desk to Service Desk Keys to Lowering TCO

Agenda

� What are today’s Business Drivers?

� ITIL and the clout it gives to the Service Desk

� Service Desk Transformation Concepts

� What is a Service Desk?

� Why a Service Desk?

� Automation as an enabler

� Service Desk TCO highlights

� Service Desk / Service Management KPIs

� Service Desk Transformation – Supplementary Reference Material

What is Driving IT Today?

� Aligning IT with the business

� Improved Efficiency of service delivery

� Corporate Governance, IT Best Practices, SOX, COBIT

� ITIL: what is it and how can it help me?

� Sustained Revenue Growth for the business

� Improved Corporate Information Systems

� Improved Customer Loyalty

Based on survey of over 100 IT executives

Business Drivers: Cost Containment, Efficiency and Customer Satisfaction

Average fully-burdened cost per incident

� Walk Up $29.30

� Phone $27.60

� Email $21.67

� Fax $18.90

� Chat/IM $17.90

� Self Service $13.50

Types of Questions and Call Volume

� “How to” 27-43%

� Password Security 20-35%

� Outage 12-25%

� Break/Fix 10-20%

� Service Request 5-22%

� IMAC 5-18%

Help Desk Institute, Practices and Salary Survey

Gartner, Understanding Service and Support Mix

7%

11%

14%

25%

40%

Top Pressures Driving Need for Increased IT Productivity

Source: Aberdeen Group

Customer demand for more personalized

products & services

Serving customer needs

Growing competition

Globalization to serve new customers and markets

Finding and retaining quality talent

Hottest Priorities

Organizations Maintaining Staff Headcounts

Outsourcing of IT Work Continuing

IT Management ProcessMaturity Model

Chaotic

Reactive

Proactive

Service

Value

LEVEL 0

LEVEL 1

LEVEL 2

LEVEL 3

LEVEL 4

Tool Leverage

Operational Process Engineering

Service Delivery Process Engineering

Service and Account Management

Manage IT as a Business

� Ad hoc

� Undocumented

� Unpredictable

� Multiple help desks

� Minimal IT operations

� User call notification

� Fight fires

� Inventory

� Desktop software distribution

� Initiate problem management process

� Alert and event management

� Measure component availability (up/down)

� Analyze trends

� Set thresholds

� Predict problems

� Measure application availability

� Automate

� Mature problem, configuration, change, asset and performance mgmt. processes

� IT as a service provider

� Define services, classes, pricing

� Understand costs

� Guarantee SLAs

� Measure and report service availability

� Integrate processes

� Capacity management

� IT as a strategic business partner

� IT and business metric linkage

� IT/business collaboration improves business process

� Real-time infrastructure

� Business planning

3%

40%

44%

12%

1%

The Service Support Process Model – Pink Elephant

ManagementTools

DifficultiesQueries, Enquiries

CommunicationUpdates

Work-arounds

Service DeskService Desk

Incidents

Incidents

CMDB

Change ScheduleCAB MinutesChange StatisticsChange ReviewsAudit Reports

ReleasesCIs

RelationshipsProblemsKnown Errors Changes

CMDB ReportsCMDB StatisticsPolicy/StandardsAudit Reports

Release ScheduleRelease StatisticsRelease ReviewsSecure LibraryTesting standardsAudit Reports

Problem StatisticsTrend AnalysisProblem ReportsProblem ReviewsDiagnostic AidsAudit Reports

ProblemProblemService ReportsIncident statisticsAudit Reports

Releases

ReleaseRelease

The Business, Customers & Users

ChangesIncidentIncident

ChangeChange

Incidents

ConfigurationConfiguration

11

ITIL V3 Library

Service Strategy

Service Design Service Transition

Service Operation Continual Service

Improvement

The Official Introduction To The

ITIL® Service Lifecycle+ Complementary Guidance

The 5 “CORE V3” BOOKS

The V3 Lifecycle

CORE

13

Lifecycle ProcessesSERVICE STRATEGY• Service Strategy• Service Portfolio

Management• Financial Management• Demand Management

SERVICE OPERATION• Event Management• Incident Management• Request Fulfillment• Problem Management • Access Management

SERVICE DESIGN• Service Catalog Management• Service Level Management • Supplier Management • Capacity Management • Availability Management• IT Service Continuity

Management• Information Security

Management

SERVICE TRANSITION• Transition Planning and

Support• Change Management• Service Asset & Configuration

Management• Release & Deployment

Management• Service Validation• Evaluation• Knowledge Management

CONTINUAL SERVICE IMPROVEMENT

• Seven Step Improvement

The Support Challenge

� Meet the current, often tactical needs of IT

� Accelerate the evolution of IT

� Step up to new strategic initiatives

� Create a model for future business success

� Turn tactical Help Desk Processes into value-add Service Desk Offerings

� Keys to Lowering the TCO – Overcome the traditional silos of service and systems management in IT– Unlock the value potential in IT by working more closely with the business to

deliver integrated and accelerated business process support

Perception is everything !

� young girl …or old woman ?

It’s all in the Perception

Service Desk Transformation Concepts

What is a Service Desk?

� Single Point of Contact– Provides advice, guidance, and is focused on restoring service in

the shortest possible time

– Routes non technical issues to appropriate organization– Retains ownership of all requests, and is the eyes, ears, and

voice of Customer

� Common Functions of a Service Desk– Receives Calls, First Line Support– Initial Assessment of All Reported Issues

– Monitor Escalation Procedures Relative to Agreed Upon SLAs

– Manages Request Life-cycle of Request from Report to Closure– Communicates Status Updates to Customers

– Assists in Problem Identification

Help Desk vs. Service Desk

� Help Desk– Reactive Incident

Management– Only Address IT

Technical Issues– Focus is on Resolving

Issues (not finding the root cause)

– Key Performance Indicators are:� Call Times

� First Call Resolution� Times Spent on Issues

� Service Desk– Proactive Incident and Problem

Management– Single Point of Contact SPOC

� HR Service Requests� Facilities Requests

� IT Procurement

– Focus is on providing Service Management

– Customer Service is Key Metric in addition to standard SDeskmetrics

Why Service Desk?

� Higher Customer Satisfaction

� Costs are Reduced

� Assists In Identification of Business Opportunities

� Optimizes Investments toward Business Support Services

� Becomes a Strategic Function in Lowering TCO for supporting the IT Infrastructure

� Key Piece in Managing Change Across the Business

� Centralized Data

The Service Desk Workflow

Multiple Avenues to Request Service

To a Single Point of Contact

Requests Are Routed to Proper Teams

Service Desk Owns Communication with Customer until Service Request is Fulfilled

Moving from Help Desk to Service Desk

� Centralize Your Services

� Implement more Proactive Processes (Problem Management)

� Automate Processes

� Make the Right Knowledge Available to the Right People

� Formulate your Service Desk Service Catalog Offerings

� Determine Target Resolution Times & SLAs

� Focus on the Right Metrics; Service Desk KPIs

Be aware of what you can’t SEE !

Read between the lines …in PEOPLE & PROCESSES

Metrics are your Friend

Look Closely !

Service Support KPI’s

Quality

Compliance

# of releases by type that satisfy release management criteria when submitted to Change

# of releases that bypass the process

Ensure production readiness, quality and authorization of new or modified CIs and their planned deployment

Release

Quality

Value

% of CMDB data population and accuracy vs actual, according to scope

% Growth or Change by CI type over an elapsed time period

Identify / control / manage IT resources within a Configuration Management Database

Config.

Quality

Value

# of changes by type / category / Group / Customer. (emergency changes trending down)

# of changes that have resulting incidents, or fail and have to be backed out

Handle changes efficiently while minimizing impact to service delivery

Change

Quality

Value

# of problems identified & root cause determined with solution or workaround.

# of Repeat incidents by category trending downwards

Identify systemic Infrastructure Errors and eliminate them to minimize impact and improve availability

Problem

Quality

Performance

# of Incident by category, priority and resolution type by LOB

# of Incidents restored within SLA Targets

Restore service degradations to expected level ASAPIncident

CategoryExample Core KPIsCore ObjectiveProcess

Service Delivery KPI’s

Compliance% deviation of forecasted versus actual cost of IT services within defined tolerance limits

(% of Deviation $ of Deviation)

Plan for and deliver IT Services within a forecasted budget against actual cost

Finance

Quality

Performance

% of systems that fail recovery test

Time to execute test of plan and recover IT services in a contingency state against expected targets.

Recover IT systems to normal state in an alternate way after a disaster within an expected timeframe

ITSCM

Quality% of components the breach tolerance thresholds in correspondence to planned capacity levels for components and complete IT systems.

Current and future resources are greater than or equal to demand, but excess is planned

Capacity

Quality% of service availability within SLA negotiated requirements.

Define and plan for service availability to meet or exceed stated business requirements through process, technology and people resource planning and implementation

Avail.

Value% Score of customer satisfaction survey trends up over time

i.e. Customer Satisfaction Survey

Define services

Agree on level, scope, quality, performance

Monitor & Manage

SLM

CategoryExample Core KPICore ObjectiveProcess

Transforming the Help Desk “ Deadly Sins”

� Help Desk Deadly Sins – Improvement Areas:– Reduce Call Volume– Decrease Learning Curve– Decrease Customer Escalations– Ensure Consistent Responses– End-to-End Ownership of the Customer Incident to Resolution– Shorten Resolution Times– Reduce the Impact of Employee Turn-Over

� Using Knowledge Management to address Deadly Sins and:– Lower Costs– Increase Customer Satisfaction– Increase Efficiencies

Automation – a key transformation element

Automation is Key to transforming to a Service Desk– Reactive to Proactive– Enables Service Level Monitoring– Automate Repetitive Tasks– Automate Ticket Creation (Auto-ticket Creation)– Automatic Routing for Consolidated Services– Automate Escalation– Ensures Quick Customer Response / Acknowledgement– Ability to do More with Less = Lower Cost

Service Desk - Self-Service Offering: Tips

� Consistent Look & Feel

� Keep it Simple

� Training Users when to Use Self Service

� Leverage the Phone System

� Knowledge Integration

� Make it Easy for Customers to Use

Resulting in:– Lower Cost per call ($13.50 Self Service vs. $27.60 – phone)– Reduced the Load on the Service Desk

� Allows the Service Desk to Focus on Providing Real Value� Reduced Stress on Team

– Increased Customer Satisfaction– Increased Usage by Customers

ITIL and Escalation Process - Prioritizing Issues

543

432

321

Impact

High Medium Low

Urg

ency

Hig

hM

ediu

mLo

wUrgency + Impact = Priority

… don’t forget the Perception Factor

TCO Costs Associated with a Service Desk Tool

� Direct Costs– Yearly Maintenance Fees– Labor Fees

� Indirect Costs– Time it Takes To Upgrade– Configuration Capability– System Up-time

Controlling the Direct Costs

� Yearly Maintenance– Do you have too many licenses?– Can you negotiate your maintenance contract?– Are there tiered levels of Support? – If so, are you subscribing to the best one for your organization

(not necessarily the most expensive)

� Labor– How Many Administrators Are Required to Support the System

Controlling the Indirect Costs

� Upgrading– What does is Take to Begin Utilizing New Features?– What is the Reputation in the Market Place for Upgrading?– Is it Rip & Replace?– Are Configurations and Customizations Preserved?– Is there a Need to Re-program Business Rules after Upgrade?– Does the UI of a New Version Require New Training?

Controlling the Indirect Costs

� Ease of Administration– All Service Desk Implementations Will Have to Be ‘Tweaked’ to

Meet an Organizations Unique Needs� What does it Take to ‘Tweak’� Does it Require a Programmer?� How Long Does it Take? � If it can’t be done quickly, will it ever get done?

– Controlling Administrative Costs will not only lower total cost, but will make the Service Desk More Adaptive to Changes

Controlling the Indirect Costs

� Ongoing Administration– Why do some Tools only require a Part-time Administrator, while

others require one or more Full-time Administrators?– Was the Tool built with Ease of Administration in mind?– Are there GUI’s / Wizards available to help configure?– Are users enabled to automate the simple tasks (i.e.

Reassignment of a work order)?– Is the System stable, and have a reputation for Stability?

TCO Conclusions

� Direct Costs Are Easier to Measure,

� But the Indirect Costs Can be Better Controlled

� When choosing a new Tool, keep the TCO in mind when making a decision– Upgrade History– Stability History– Configurability / Customize Ability

� Keeping the TCO in check is a value add by your Service Desk

Sneak Peak:

What’s New in Service Management?

� What is a SAM anyway ?

� It’s 4:30pm … Do You Know Where Your Assets Are?

Service Management Lifecycle

Software Asset Management

� SAM is NOT– Just about licenses or compliance – Just a tool or piece of software

– Just a simple process or policy

– A silver bullet– A quick fix

“Software Asset Management (SAM) is all of the infrastructure and processes necessary for the effective management, control and protection of the software assets within an organisation,

throughout all stages of their lifecycle.”

ITIL Best Practice guide Software Asset Management

“Every organization can realize between 5% and 35% cost savings

through the implementation of focused software asset practices”

It’s 2:30pm … Do you know where your assets are?

How does your organization stack up in SAM?

How much time do you spend managing your software l icenses? Would one solution that allows you to input your proof of ent itlements and reconcile against the deployed software in your environment be helpful?

How do you track software usage? Would your compan y like to know if it’s buying or renewing software packages that aren’t being use d?

How do you know if users are downloading or bringin g in unauthorized software? How do you find it?

If you were to be audited today, would you pass? Ho w would you prove it?

How do you currently keep track of your software li censes?

Software Asset Management

QuestionBusiness Driver

Software Asset Management Drivers

� Market Interest in SAM is growing rapidly– Vendor led: Compliance

� Microsoft, Adobe, Oracle, Symantec pouring resources into educating the market

� 87% of s/w vendors claim loss of revenue due to non-compliance*

– Vendors estimate 35% of software is illegally installed, resulting in loss of $35 billion worldwide

� Industry groups (BSA, FAST, SIIA) increasing publicity/rewards around piracy

� Audits expected to affect 35% of all customers yearly

– Customer led: Improved controls/reduced costs� Real, tangible benefits for implementing SAM practices

– Reduction in costs, risk mitigation, more efficient IT operations & planning

� 93% of our customers believe license compliance is a priority– 44% overall believe it is a “High priority” (49% of UK customers)

* KPMG Software License Compliance Study

Transforming from Help Desk to Service Desk

� IT as a Strategic Enabler to the Business

� The new model for the Service Desk is here

� The right tools and processes bring efficiencies an d enable your Service Desk Analysts to tangibly contribute t owards improving your business

Brenda IniguezBrendai@frontrange.com

510-262-9925

www.frontrange.com

Start Your Service Desk Transformation Today!

Service Desk Transformation Concepts~ Supplementary Details ~

Help Desk to Service Desk Webinar Series

� Transforming from Help Desk to Service Desk – Introduction– 15 November 2007

� Transforming from Help Desk to Service Desk – Beware of the 7 Deadly Sins of the Help Desk

– 24 January 2008

� Transforming from Help Desk to Service Desk – Essential Process Automation Capabilities

– 21 February 2008

� Transforming from Help Desk to Service Desk – Getting Self-Service Right with Six Simple Steps– 17 April 2008

� Transforming from Help Desk to Service Desk – Three Keys to Lowering Your Total Cost of Ownership– 22 May 2008

Reactive vs. Proactive

� Fighting Fires

� Focused on one incident at a time

� Inefficient

� No Knowledge Capturing

� Solving the Same Issues again and again

� Numerous Systems Capturing Incident Data

� Analyze Trends

� Identify Potential Areas for Improvement

� Recognizing and Solving issues before they happen

� Document Workarounds for known problems

� Centralized Database assists in Problem Identification

Why Automation?� Get the most out of your investment

– Most Users are only using 60% of the Functionality of Current Tool

� Make Your Tool Work For You– Let your staff focus on the important things– Ensure Items Don’t Fall Through the Cracks

– Enforce Your Processes

� Efficiencies, Efficiencies, Efficiencies– Repetitive, Repetitive, Repetitive– Do More With Less

� Can Automation Be Done Without A Programmer?– How Fast, and How Easy Can the Tool Change if Your Process

Changes?

Begin By Automating Escalation Process

1. Develop a Prioritization System

2. Set Target Times to Priorities

3. Develop Service Catalogue

4. Negotiate Service Level Agreements with Users

Focus on Incident and Problem Management

Centralized SPOC Service Desk Service - Benefits

� Higher Customer Satisfaction– One Number to Know

– Better Communication

� Better Accountability– Customer has one place to go to for an update

– Service Desk Pushes Other Internal Organizations to Deliver

– IT Organization Focuses on Business

A New IT Model for Proactive Service Management

� Leverage Voice Communication Mgmt for improved service

� Unlock the Value of Remote Control

� Proactive Application Repair and Installation

� IT Workplace Provisioning

� Integrated Change Management for Compliance and Audit

Determine Target Resolution Times

� Determine Target Resolution Times Based on the Priority of the Service Request– Begins to Set Expectation with Customer

– Sets Goals for Service Desk to Resolve

– Places Rules in Place for When Issue is Escalated to Escalation Teams– Provides Indicators for Reporting

– Assists with Developing Services and Service Level Agreement

– Helps in Problem Identification / Training Opportunities

� Service Catalogue– Defines the Services available to the customer from the IT

Organization

� What is a Service and How Do I Define Services?– Depends on the Organization

– Ask Your Customers What They Perceive as the Services You Provide– Possible to Define Services by:

� Business Process (What Customers Perceive)

-Or-� Infrastructure Services

� Network Services

� Application Services

Develop Service Catalogue Offerings

Usually Invisible to Customer but Essential to Deliver Services to Customer

Negotiate SLAs

� Important Points when Developing SLAs– Ensure Operational Level Agreements and Underpinning

Contracts are Taken into Account

– Don’t Dictate What The Service Levels are Going to Be

– Talk to Your Users, Talk to Your Users, Talk to Your Users� Be Prepared� Consider all Feedback� Seek Agreement (Service Level AGREEMENTS)

– Start with a Pilot (Be Careful to Not Pilot a Problem Area)

– Document Review Dates

Escalations

� Combination of Incident, Problem, Change, and SLM Process provides Framework for Escalation Process

� Major Outages, by Nature of the Problem Management Process, are Escalated Faster

� Escalation Times are Built into SLAs

Measuring the Right KPIs

� Moving to A Service Desk Changes the Key Performance Indicators being Monitored

� Help Desk Metrics Do Not Become Irrelevant– Hold Times (Contributes to Customer Satisfaction)– Number of Calls Received (Used for Trend Analysis, and

Problem Identificaiton)– Call Duration (Identifies Knowledge Deficiencies)

� Metric Focus is On the Customer– Customer Satisfaction is KEY– Meeting Service Level Targets

Growing Call Volumes – a concern

� Why are Growing Call Volumes A Concern?– Average Cost per Incident for Phone Support is costly -

Estimated at approximately $25.

– The Service Desk is First Place Hit with Budget Cuts

– Rapid Increases in Call Volumes Stretch already Thin Resources, Impacting Customer Satisfaction

Automating Repetitive Tasks

� The Tool Should Allow for Automation of a Series of Steps in a Repetitive Task– Reassigning a Task– Quick Incidents (Password Resets)– Standardized Processes

� Simplicity– Provide Functionality to Easily Create Automation– Incorporate Into Workflow to Make Tool Easier to Use– Enable Technicians to Automate Tasks

Auto Ticket Generation

� The Ability to Update or Create Service Requests by Monitoring Email or Using Text Files– Makes the System More Effective– Automates Email Monitoring

� Provides Another Path for Integrations

� Key Part of Automating Processes

� Ensures Your Call Records Are Up To Date With Customer Communication