Service Management – Services and Information · PDF fileService Management –...

Service Management – Services and Information Systems Univ.-Prof. Dr.-Ing. Wolfgang Maass Chair in Economics – Information and Service Systems (ISS) Saarland University, Saarbrücken, Germany WS 2011/2012 Thursdays, 8:00 – 10:00 a.m. Room HS 024, B4 1

Univ.-Prof. Dr.-Ing. Wolfgang Maass

18.01.12 Slide 2

General Agenda

1.  Introduction 2.  Service Strategy 3.  New Service Development (NSD) 4.  Service Quality 5.  Supporting Facility 6.  Forecasting Demand for Services 7.  Managing Demand 8.  Managing Capacity 9.  Managing Queues 10. Capacity Planning and Queuing Models 11.  Services and Information Systems 12.  ITIL Service Design 13.  IT Service Infrastructures 14.  Summary and Outlook


18.01.12 Slide 3

A Pile of Headless Chicken …

IT seen as black box •  Business lacks visibility •  Poor customer satisfaction

Demand hard to manage •  Unstructured capture of requests and

ideas •  No formal process for prioritization and

trade-offs •  Reactive vs. proactive

Disparate systems in IT •  not integrated •  not scalable •  Processes not repeatable

(Kaiser, 2007)


18.01.12 Slide 4

Sweet Spot

•  Connection between business and IT = process of IT Governance

•  Evaluating project and service requests in systematic way -- allows quick adaptation to changes in business environment

IT Service Management (ITSM) •  delivering/supporting IT services appropriate to

business requirements of organization •  Services = means of delivering value to

customers by facilitating outcomes customers want to achieve without specific costs and risks (Kaiser, 2007;

Budiman, 2008)


18.01.12 Slide 5

IT Infrastructure Library® (ITIL)

•  ITIL = de facto global standard for IT Service Management; in use for over 20 years; has reached a global scale

•  Framework to optimize IT service support and service delivery; Focus: aligning IT services with needs of business

•  Aligns to the ISO/IEC 20000 standard for quality IT Service Management (portfolio of service management processes)

•  Published in a series of five core publications; current version: ITIL V3 (2007; small release in 2011)

“The IT Infrastructure Library® (ITIL) is the most widely accepted approach to IT service management in the world. ITIL is a cohesive best practice framework, drawn from the public and private sectors internationally. It describes the organization of IT resources to deliver business value, and documents processes, functions and roles in IT Service Management (ITSM).” (UK Office of Government Commerce (OGC))

(OGC, 2011; Kaiser, 2007; Budiman, 2008)


18.01.12 Slide 6

IT Infrastructure Library® (ITIL)

•  History –  1980’s: British government assigned Office for Government Commerce (OGC)

(aka Central Computer and Telecommunications Agency (CCTA)) to develop a framework for efficient and financially responsible use of IT resources -- joint effort between government and private sector experts

–  2001: Version 2 of ITIL was released –  2007: Version 3 of ITIL was released that adopts a lifecycle approach to

Service Management with better emphasis on IT-Business integration

Business processes

to be supported by IT

Coordination of business and IT

Required methods to achieve optimal support of business processes by IT

organization

Management concept for service-oriented architecture of information and communication technology SOA

Business Process Management

Business Service Management

IT Service Management (de-facto standard ITIL)


18.01.12 Slide 7

ITIL Service Lifecycle (ITIL V3)

Service strategy -- start of service lifecycle: sets service management objectives, policies, and guidelines toward serving customers and market spaces

•  ITIL framework = set of specialized organizational capabilities for providing value to customers in the form of services

•  Capabilities = functions and processes for managing services over a lifecycle

•  service lifecycle emphasizes control of functions and processes

Service design -- design of innovative services, processes, measurements, metrics, technology including their architecture according to business objectives

(OGC, 2011)


18.01.12 Slide 8

ITIL Service Lifecycle (ITIL V3)

Service transition -- Planning and management of service changes; Deployment of service releases into operations; validation of Service Strategy business requirements and Service Design functional requirements

Service operation – Achievement of efficiency and effectiveness in delivery of managed services

Continual service improvement -- R e v i e w , a n a l y z e , a n d m a k e recommendations on improvement opportunities in each lifecycle phase concerning (1) IT service quality, (2) efficiency and effectiveness of enabling ITSM p rocesses , and (3 ) cos t -effectiveness of delivering IT services

Today Next

lecture

(OGC, 2011)


18.01.12 Slide 9

Shifting Focus

Today’s IT organizations Tomorrow’s IT organizations

Focused on technology

Focused on customer outcomes

Firefighting mode

Demand-driven

Organizational “stovepipes”

Enterprise services and processes

Unknown Costs

Financial transparency

Technical metrics

Business value

Objective of ITIL

(Spaulding, 2007)


18.01.12 Slide 10

ITIL Service Strategy

•  Objective: -  Understanding of what strategy is -  Clear definition of services and customers who use them -  Ability to define how value is created and delivered -  Means to identify opportunities to provide services and how to exploit them -  Clear service provision model (How will services be delivered? To whom and

for what purpose?) -  Means to understand organizational capabilities required to deliver strategy -  Documentation and coordination of how service assets are used to deliver

strategy -  Processes that define the strategy of the organization

(OGC, 2011)


18.01.12 Slide 11

Assets, Service Package, Portfolio … -- Some Clarifications

Service Package

Core Service

Enabling Service

Enhancing Service

Differentiation in service package = service options offered as service level packages

Service provider

organization (internal or external)

Customer (buying service)

User (that uses services)

Suppliers (third parties required

to deliver IT services)

Stakeholders in service management Asset

Customer asset (used by customer to achieve business outcome)

Service asset (used by service provider to deliver

services)

Resource, e.g., financial capital, information, infrastructure

Capability, e.g., management, knowledge, skills

or

(OGC, 2011)


18.01.12 Slide 12


(OGC, 2011)

Service portfolio = complete set of services managed by service provider (can include third-party services) Database or document consisting of 3 parts: •  Service pipeline – services under

consideration or development; not available for customers; business view of possible future services

•  Service catalogue – all live IT services; also those ready for deployment

•  Retired services – services phased out


18.01.12 Slide 13


Service Strategy (Generation)

Service Portfolio

Management Demand

Management Financial

Management

•  Characteristic of processes in ITIL: -  Measurability – performance-driven -  Deliver specific result -  Deliver to customers or stakeholders in general -  Traceable to a specific trigger

Processes in ITIL Service Strategy

•  Services create value through combination of 2 primary elements

•  Utility – service meet particular need; “what service does”

•  Warranty – service will meet its agreed requirements; “how service is delivered”

Value

(OG

C, 2011)


18.01.12 Slide 14

ITIL Service Strategy – Strategy Management Process

(OG

C, 2011)


18.01.12 Slide 15

ITIL Service Strategy – Strategic Assessment

(OG

C, 2011)

①  Analysis of internal factors (e.g., human resources, existing services) and external factors (e.g., customers, technology, industry and market)

②  Definition of market spaces •  defined by a set of business outcomes, that can be facilitated

by a service, e.g., e-commerce website is linked to warehouse management system

③  Identify strategic industry factors, e.g., cloud computing infrastructure (resource)

•  Defined in terms of capabilities and resources •  Dynamic key determinants of success; basis for competition

④  Establish objectives •  Results the service provider expects to achieve by pursuing a

strategy


18.01.12 Slide 16

ITIL Service Strategy – Strategic Assessment

(OG

C, 2011)


18.01.12 Slide 17

ITIL Service Strategy – Strategy Generation

(OG

C, 2011)

•  4 Ps of strategy (Mintzberg, 1994)

①  Determine perspective that means vision of organization, e.g., “The IT organization contributes to the competitive advantage of company X by delivering IT services that meet defined business outcomes of other business units.”

②  Form a position that means how service provider will be differentiated from other service providers in industry


18.01.12 Slide 18

ITIL Service Strategy – Strategy Generation - Positioning

(OG

C, 2011)

Variety-based positioning Needs-based positioning Access-based positioning (customers have something

in common)

Combination of variety-, needs-

and access-based positioning


18.01.12 Slide 19

ITIL Service Strategy – Strategy Generation

(OG

C, 2011)

③  Craft a plan to identify how to achieve the objectives, vision and position; plan consists of situation analysis, vision, objectives, key milestones etc.

④  Adoption of patterns that describe repeatable actions

⑤  Documentation of service strategy


18.01.12 Slide 20

ITIL Service Strategy – Strategy Generation - Patterns

(OG

C, 2011)


18.01.12 Slide 21

ITIL Service Strategy – Strategy Execution

(OG

C, 2011)

①  (Other) service management processes; e.g., provision of system that formalizes management of services

②  Align assets with customer outcomes in a continuous way ③  Optimize critical success factors, e.g., specific skills, tools; any

aspects that enable to achieve the strategic industry factors ④  Prioritize investments based on customer needs


18.01.12 Slide 22

Outlook

1.  Introduction 2.  Service Strategy 3.  New Service Development (NSD) 4.  Service Quality 5.  Supporting Facility 6.  Forecasting Demand for Services 7.  Managing Demand 8.  Managing Capacity 9.  Managing Queues 10. Capacity Planning and Queuing Models 11.  Services and Information Systems 12.  ITIL Service Design 13.  IT Service Infrastructures 14.  Summary and Outlook


18.01.12 Slide 23

Literature

•  Budiman, L. "Introduction to ITIL for Project Managers", PPT, 2008. •  Kaiser, T. "ITIL: What is it? Why you should use it? How to use it?", PPT, 2007. •  Mintzberg, H. The Rise and Fall of Strategic Planning, Prentice-Hall, 1994. •  Office of Government Commerce (OGC), ITIL Service Strategy, The Stationery Office (TSO), London,

2011. •  Spaulding, G. "What’s New in ITIL v3", PPT, 2007.


Univ.-Prof. Dr.-Ing. Wolfgang Maass Chair in Information and Service Systems Saarland University, Germany

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