Assessment report of sourced IT Services by Cegeka for Van

Report
ITIL from a business perspective
What’s its value and what to focus on
Executive summary
There is at least 25% savings and improvement potential in any
IT organization
 ITIL is acknowledged as the global standard for the process design and running of IT delivery
organizations. Although moving towards the domain of application development, its core
value is in IT infrastructure (data center) services
 Key asset 1 Service catalog: design of services that are recognized by and have value to the
“customer”. It breaks down in components that need to be managed, maintained and
innovated by IT to deliver sustainable value
 Key asset 2 Continual Service Improvement (Lean SixSigma): a structured approach for
incremental improvement of both delivered value and cost effectiveness of the IT
organization
 As a prerequisite to the above the following needs to be in place:
 Incident Management
 Request fulfillment
 Change Management
 Problem management
 Configuration Management, and
 A common Service Management tool (you can’t improve what you don’t measure)
2
Agenda
 Introduction
 Services
 Improvement
 Conclusions and recommendations
3
Quint Wellington Redwood
 Independent Management Consulting & Education Group
 Founded in 1992
 > 200 consultants globally
 Servicing global & local clients operating in more than 49 countries and across all
continents
 Focusing on organizational IT-management challenges across 5 consulting
practices and 1 education practice
 Extensive knowledge and insight into the IT and Sourcing marketplace gained
through continual market research and well-established relationships with
partners (i.e. APMG, ISACA, IAOP) and service providers.
 Proven IP, methodologies and tools. Recognized ‘Thought Leader’ in the industry.
4
Global Coverage
Amsterdam
Brussels
Paris
Milan
Madrid
Rome
Athens
New York
San Diego
Miami
Tokyo
Riyadh
Dubai
Hong Kong
Delhi
Mumbai
Bangalore
Sao Paulo
5
Kuala Lumpur
Client Examples – Cross Industries
6
Quint Consulting Services
Government &
Healthcare
Finance
Trade,
Transport &
Industry
Retail &
Services
Utilities
Telco
Business
Information Mgt
Architecture &
Innovation
Sourcing &
Benchmarking
Sourcing & IT
Governance
IT Performance &
Quality Mgt
• Market Orientation
• Strategy
• Design
• Improvement
• Audit
• Strategy
• Assessment
• Second opinion
• Application
rationalization
• Transformation Mgt
• Strategy
• Deal making
• Contracting
• Mediation
• Benchmarking
• Sourcing &
Transition Mgt
• Strategy
• Assessment
• Design
• Improvement
• Co-sourcing
• Strategy
• Assessment
• Design
• Improvement
• IT Auditing
• Lean
7
Our way of working: “Dare to challenge”
IT Service Management defined
 IT Service Management definition:
“A set of specialized organizational capabilities for providing value to
Customers in the form of Services” ( Service Design, p. 11)
 Another definition:
“IT Service Management is the effective and efficient, process driven
management of quality IT Services”
 A professional practice supported by knowledge, experience, and
skills, focusing on a Service-oriented approach
9
The ITILv3 Service Lifecycle encompasses all
processes for successful service delivery…
©OGC
10
… which is successful for various reasons
 ITIL embraces a practical approach to service by adapting a common framework of
practices that unite all areas of IT service provision towards a single aim – that of
delivering value to the business.
 Vendor-neutral ITIL service management practices are applicable in any IT
organization because they are not based on any particular technology platform or
industry type. ITIL is owned by UK government and is not tied to any commercial
proprietary practice or solution
 Non-prescriptive ITIL offers robust, mature and time-tested practices that have
applicability to all types of service organizations. It continues to be useful and
relevant in public and private sectors, internal and external service providers,
small, medium and large enterprises, and within any technical environment.
 Best practice ITIL represents the learning experiences and though leadership of
the world’s best-in-class service providers
11
ITIL v3 contains various processes and Functions
From ITIL V2
IT Operations Mgmt
(Function)
New in ITIL v3
Applications Mgmt
(Function)
Functions
Supplier Mgmt.
Knowledge Mgmt.
Evaluation
Service Catalog Mgmt.
Info Security Mgmt.
Strategy Generation
IT Service Cont. Mgmt.
Service Validation
and Testing
Transition Planning
and Support
Release and
Deployment Mgmt.
Technical Mgmt
(Function)
Request Fulfillment
Event Management
Access Management
Problem Management
Demand Mgmt.
Capacity Mgmt.
Service Portfolio
Mgmt.
Availability Mgmt.
Service Asset
and Config. Mgmt.
Incident Management
Financial Mgmt.
Service Level Mgmt.
Change Mgmt.
Service Desk
(Function)
Service
Strategy
Service
Design
Service
Transition
Service
Operation
Continual Service Improvement
7-Step Improvement Process, Deming Cycle, CSI Model
Service Reporting
Service Measurement
slide 12
Agenda
 Introduction
 Services
 Improvement
 Conclusions and recommendations
13
An IT Service enables business services and
consists of IT Assets and Resources
Definition of a Service:
Business Service A
Business
Process 1
IT Service X
Business
Process 2
Business
Process 3
IT Service Y
IT Assets & Resources
“ Services are a means
of delivering value to
Customers by
facilitating the
outcomes Customers
want to achieve
without the
ownership of specific
costs and risks".
slide 14
Service Value can be defined by Utility and
Warranty
 Service Value = Utility + Warranty
Performance supported?
Fit for purpose?
Utility
Constraints removed?
Value
Available enough?
Capacity enough?
Warranty
Continuous enough?
Fit for use?
Secure enough?
Slide 15
Service Catalog Management
The Service Catalogue
Business
Process1
Business
Process2
Business
Process3
Business Service Catalogue
Service A
Service B
Service C
Service D
Service E
Technical Service Catalogue
Support
Services
Hardware
Software
Applications
Data
Slide 16
Service Level Management
Customer
Service Level
Requirements
SLR
SLA
Service Level
Agreement
IT Organization
Underpinning
Contract
UC
External Providers
(Suppliers)
OLA
Operational Level
Agreement
Internal Providers
(Departments)
Slide 17
Prerequisites for implementing Service Catalog
 Operational processes





Incident management
Service Request Management
Change Management
Problem Management
Configuration Management
 Tooling
 Common Service Management tooling
 Systems management tooling (preferably)
Slide 18
IPW
Red – Production time in the business
Light Green – Changes and projects
Yellow – Proactive IT
Strategic
business
processes
ICT
Value
Information
Mgnt.
Dark Green –Financial Performance
Dark Blue – IT Continuity
Commercial
Policy
HRM
Strategy Architecture
Finance
Supplier
Strategic
Sourcing
Portfolio Mgnt.
Strategic
supplier
processes
Relationship Management
Service Level Management
Service
Development
Business
planning
Functional
Mgnt.
Demand
Mgnt.
Service
Build &
Test
Service
Design
Service Planning
Financial
Mgnt.
Security
Mgnt.
Supplier
planning
Supply
Mgnt.
Continuity
Mgnt.
Availability
Mgnt.
Contract
Mgnt.
Capacity
Mgnt.
Change
Mgnt.
Business
Support
Application
Mgnt.
Incident
Mgnt.
Business
operations
Service
Operations
Purchase
Mgnt.
Problem
Mgnt.
Configuration
Mgnt.
Operations
Mgnt.
Operations
Support
Supplier
operations
Release
Mgnt.
SITA
BITA
Service desk
Business Domain
ICT Domain
Supplier Domain
Agenda
 Introduction
 Services
 Improvement
 Conclusions and recommendations
20
IT Management Agenda Topics
“How can my IT Organization
improve its Performance
towards the Business?”
“My customers do not recognize
the added value of my IT
Organization”
“How do I get the most out
of my current IT organization?”
“How do I get my IT Organization
to be customer focused?”
“My customers think the
Time-to-Market of new services
is too long”
“Does my IT organization have
the right size/cost level?”
“What is the added value of
compliancy?”
The “traditional” ITIL implementation
Process-based Implementation
 Key Unit of planning: Process Maturity
 Key Success Indicator: Maturity improvement
 Best suits organizations that:




Are geographically widespread
Do not have a (basic) common tool
Have diverse backgrounds (unconsolidated M&A’s)
Have been given enough time to sort out the problems
 Potential pitfalls:







Non optimized performance
Parochial: not customer focused
Focus on individual processes with a lack of integral overview
No link between processes and functions
Too many KPIs
No clear goals
Processes compliant but customers still not satisfied
The “performance based” ITIL implementation
Value driven Implementation





Key Unit of planning: Value Drivers
Key Success Indicator: Measured improvement
Best suits organizations that require rapid results in:
 Reducing lost production hours due to IT
 Improving Time to Market
 Improving relationship between Business and IT
 Better anticipate future developments
Have a (basic) common tool (required)
Have basic processes already implemented (required)
Principles of serving our IT customers
IT Services and Value Drivers
Manage Execution
Value Driver
Trend
Lost Production Hours
Time to Market of Changes
Effectiveness of Changes
Quality of Plans
Number of Proactive Changes
Management Imperative:
Communication with the (IT) Customer
Basic IT Services
No IT Outages
New Use of IT
Quick
Time to Market
Of Changes
“Maintain current
functionality”
Lost Production Hours
How does this relate to ITIL and in particular to
Incident Management?
 What is an Incident?
 Any event not part of the standard operation of a service which (may)
cause an interruption to, or a reduction in, the quality of that service
 Goals of Incident Management process:
 Restore normal service operation as quickly as possible
 Minimize the adverse impact on the business operations
 Ensuring that the best possible levels of service quality and availability are
maintained according to SLAs
Incident Management Process
Incident Detection
And Recording
Tracking
Ownership
Communication
Classification and
Initial Support
Service
Request?
No
Investigation
And
Diagnosis
Monitoring
Resolution
And
Recovery
Incident
Closure
Yes
Service
Request
Procedure
Lost Production Hours
IT Downtime can be an expensive business
A.
No. of incidents and
resolution times

B.
Time that
incidents
are open

D.
Excess cost
and lost
revenue
Total number
Average time to
repair (days)
Number of
users
affected
Critical
1042
0.7
20
14,227
€ 240
50 %
7,113
€ 1,707,213
5000
€ 3,556,695
High
2796
5.4
10
149,634
€ 240
40 %
59,853
€ 14,364,817
1000
€ 14,963,351
12196
10.3
4
500,948
€ 240
30 %
150,284
€ 36,068,234
500
€ 62,618,462
376
9.8
1
3,699
€ 240
20 %
740
€ 177,556
100
€ 369,908
217,991
€ 52,317,820
Priority
Medium
Low
16410
Gross lost
production
days

C.
Time that IT
customers
cannot work
668,507
Cost per
day
Dependancy
Net Lost
production days
Net costs
Costs per day
to business
per incident
Total cost to the
business
€ 81,508,415
Earning and burning capacity
Performance Based Implementation
Management dashboards
Weekly KPI
Dashboard
Weekly Team
Dashboard
Daily Team
Dashboard
M4 Management Level
• Lost Production Hours
• Standardization Rate
• Workload KPIs
• …
M5 Management Level
• Lost Production Hours
• Average Case Turnaround
• SLA Cases by Team
• Workload
• …
M6 Management Level
• Lost Production Hours
• Actual Workload
• Resolved Cases
• SLA per Customer
• …
Lean IT Principles
34
Consistency triangle
35
Implementation focussed on performance
Improvement
Bi-weekly Action Cycle
PBSM ROI Study (based on client data)
Agenda
 Introduction
 Services
 Improvement
 Conclusions and recommendations
38
Conclusions and recommendations
1.
2.
3.
4.
5.
Establish a baseline for process maturity and performance
Fortify operational processes and Service Management Tooling where needed
Implement Service Catalog and Service Level Management
Develop a leadership team to drive CSI through the organization
Initiate CSI programs
39

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