A few days ago I published the first in a series of preparation notes as I study for my IT Infrastructure Library (ITIL®) Foundation certification. Part 1 was an overview/introduction. This post continues by looking at the topic of the first stage in the ITIL service lifecycle: service strategy.

Service Strategy

“The purpose of the service strategy stage is to define the perspective, position, plans and patterns that a service provider needs to be able to execute in order to meet an organisation’s business outcomes”

“Strategy is a complex set of planning activities in which an organisation seeks to move from one situation to another in response to a number of internal and external variables.”

Henry Mintzberg defined 5 Ps of strategy. ITIL uses 4:

• Perspective – view of selves, vision and direction.
• Position – where we are in relation to the rest of the market.
• Plans – details for supporting and enhancing perspective and position.
• Patterns – define the conditions and actions that need to be in place, and need to be repeatable to meet the objectives of the organization.
• Ploy is the 5th P, not used in ITIL.

Customer perception and preferences drive expectations. Quality of product, ambience, etc. affect service value.

Utility + Warranty = Value

• Utility is about “fit for purpose” – support performance, remove constraints.
• Warranty is about fit for use – availability, continuity, capacity, security.

ITIL defines the following Service Strategy processes, which are expanded upon in the rest of this post:

• Service portfolio management.
• Business relationship management.
• Financial management.

There are two more processes that are not discussed at ITIL foundation level:

• Demand management.
• IT strategy.

Service Packages, Service Level Packages and Service Assets

Service packages are the things that we offer to our customers:

• The Core Service Package provides what the customer desires – the basic outcome.
• Enabling services allow the core service to be provided.
• Enhancing services are the extras that aren’t necessary to deliver the core service but make the core service more exciting or enticing.

Sometimes customers want more warranty or more utility – Service Level Packages provide choice:

• Warranty:
  • Availability levels.
  • Continuity levels.
  • Capacity levels.
  • Security levels.
• Utility:
  • Features of the service.
  • Support of the service.

Levels will relate to price.

Service Assets:

“A resource or capability used in the provision of services in order to create value in the forms of goods and services for the customer.”

• Resources are tangible (e.g. inputs to a process) – boxes, method of taking payment, etc.
• Capabilities are intangible – people with knowledge, behaviours, processes, etc.

Service Portfolio Management

Service Portfolio Management is about managing the service portfolio – not the services, processes, assets, etc.:

“To ensure that the service provider has the right mix of services and the investment in IT with the ability to manage or meet your business outcomes.”

Service portfolio is a database of services managed by a service provider – the complete set of services, including:

• Service Pipeline – IT services of the future; being developed, not available to customers (yet).
• Service Catalogue – database or document of current IT services – customer-facing or support services (internal IT).
• Retired services – all IT services that are no longer useful for customers or internal organisation,

When looking at service portfolio, may need to consider service investments:

• Transform the business (TTB): new market, ventures, high risk.
• Grow the business (GTB): gain more customers, increase value, capture more market space (moderate risk).
• Run the business (RTB): status quo, focus on core services (low risk).

Service portfolio management is about establishing or including services – 4 phases:

• Define – document and understand existing and new services to make sure each has a documented business case.
• Analyse – indicate if the service will optimise value and to understand supply and demand.
• Approve – make sure that we have enough money to offer this service (retain, rebuild, refactor, renew or retire).
• Charter – authorise the work to begin on a project.

Financial Management

Balances requirements between IT and business requirements: balance cost of service against the quality of the service. Looking for highest quality for lowest cost.

• Budgeting – about the future (for things in pipeline, and for current services).
• IT Accounting – make sure we know where we are spending our money. Group costs to see what part of service provision is costing most, rebalance/adjust as necessary “the process responsible for identifying the actual cost pf delivering the IT services compared with the costs in managing variance”. EV-AC=CV (expected value – accumulated cost = current value).
• Chargeback – charge customers for use of IT services. Notional accounting where no money changes hands (e.g. internal showback).

Service valuation is about charging an appropriate price for a service based upon costs.

Business case to justify costs, benefits, risks, etc. with methods, assumptions, business impact, etc. (or a business impact analysis – BIA – i.e. what is the implication if we don’t offer the service).

Business Relationship Management

“To establish and maintain a business relationship between the service provider and the customer based on understanding the customer and their business needs.”

“To identify customer needs and ensure that the service provide is able to meet these needs as business needs change over time and between circumstances. BRM ensures that the service provider understands the changing needs. BRM also assists the business in articulating the value of a service. Put another way, BRM ensures that customer expectations to not exceed what they are willing to pay for and that the service provider is able to meet the customer’s expectations before agreeing to deliver the service.”

Service Level Management deals with service level agreements (SLAs) cf. BRM is concerned with understanding business needs – goal is customer satisfaction for both but measured in different ways. For BRM measured in improvement or recommendation of services.  BRM is about a positive relationship and defines the service catalogue.

Different types of relationship:

1. Internal service provider.
2. Shared service provider – to more than one business unit (still internal).
3. External service provider – to external customers. Business Relations Manager talks to clients.

Business Relationship Manager will use:

• Customer portfolio – database of information about customers and potential customers who will consume a service (commitments, investments, etc.).
• Customer agreement portfolio – database of current contracts with clients (services delivering, with SLAs).

Activities include:

• Marketing, selling and delivery.
• Working with Service Portfolio Management to properly respond to customer requirements.

Wrap-up

The next post in this series will follow soon, looking at service design.

These notes were written and published prior to sitting the exam (so this post doesn’t breach any NDA). They are intended as an aid and no guarantee is given or implied as to their suitability for others hoping to pass the exam.

ITIL® is a registered trademark of Axelos limited.

Being able to “talk service” is an important part of the role of an IT architect so I’m currently studying for my IT Infrastructure Library (ITIL®) Foundation certification.

At the time of writing, I haven’t yet sat the exam (so this post doesn’t breach any NDA) but the notes that follow were taken as I studied.

About ITIL

There are various ITIL introductions on the Internet – this video is the one from Axelos, the joint venture between Capita and the UK Cabinet Office, who administer ITIL (and PRINCE) and it’s really just an advert…

https://www.youtube.com/watch?v=s4VH0A687lg

For a better understanding of what ITIL is, try this:

Certification

ITIL certification is available at several levels (foundation, practitioner, intermediate, expert and master) with foundation being the entry level. The ITIL Foundation syllabus details the information that candidates are expected to demonstrate to be successful in the exam.

Axelos has published three “top tips” articles around the ITIL Foundation certification:

• Part 1: How to prepare.
• Part 2: During the Exam.
• Part 3: After the Exam.

There are also sample exam papers available as well as an Official ITIL Exam app available for testing your knowledge.

ITIL Overview

IT Service Management is:

“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.”

ITIL is an IT Management framework showing best practices for IT Service Management. It’s a library of 5 books (and other resources):

• Service Strategy.
• Service Design.
• Service Transition.
• Service Operation.
• Continual Service Improvement (CSI).

There is also complementary guidance (e.g. release control and validation) – broken out by industry vertical (e.g. health, government) or by technology architecture (e.g. cloud, networking, software).

Basic terminology

• Baselines – starting points/reference point. Used to look back or get back:
  • ITSM Baseline – measure service improvement plan (SIP).
  • Configuration Baseline – used for remediation/back-out from change.
  • Performance Baseline – response before made service improvement.
• Business case – justification for spending money (planning tool):
  • Costs.
  • Benefits.
  • Risk.
  • Potential problems.
• Capabilities – ability to carry out activities (functions and processes)
• Functions – team of people and tools carrying out activities:
  • Who will do something – e.g.:
    • Service Desk.
    • Technical Management.
    • Application Management.
    • IT Operations Management.
• IT Service Management – capabilities providing value to customers in the form of services.
• Process – co-ordinated activities to produce an outcome that provides value:
  • How to do something.
• Process Owner vs. Manager
  • Owner is responsible and accountable for making sure process does what it should.
  • Manager is responsible for operational management of the process (reports to the owner).
• Resources:
  • IT infrastructure.
  • People.
  • Money.
  • Tangible assets (used to deliver service, cf. capabilities which are intangible).
• Service – means to deliver value
  • Manage costs on the provider side whilst delivering value to the customer.
  • Service will have a service strategy.
• Service owner – responsible for delivering the service. Also responsible for CSI.

ITSM and Services

• Organisation has strategic goals, objectives
• Core business processes are the activities that produce results for the organisation (reliant on vision)
• IT service organisation – to execute on core business processes.
• IT service management – repeatable, managed and controlled processes to deliver service
• IT technical – computers, networking, etc.

Each layer supports the levels above.

Services:

“A means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs or risks”

Processes and Functions

Processes:

“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.”

• Trigger.
• Activity.
• Dependency.
• Sequence.

Processes:

1. Are measured.
2. Have specific results.
3. Meet expectations.
4. Trigger change.

Processes have practitioners, managers and owners (accountable for making sure the process is fit for purpose, including definition of the process).

Functions:

“Grouping of roles that are responsible for performing a defined process or activity.”

• Service Desk.
• Technical Management.
• Applications Management.
• Facilities Management.
• IT Operations Control.

Functions interact and have dependencies.

Responsibility Assignment Matrix (RAM chart) – e.g. RACI:

• Responsible.
• Accountable.
• Consult.
• Inform.

Map processes and roles.

ITIL Service Lifecycle

Earlier versions of ITIL used to focus on the processes. Version 3 focuses on why those processes are necessary. For foundation level, candidates need to know the objectives, rather than the detail.

The idea to provide a service will be conceptualized, then it will be designed, it will transition, and be maintained through operation. Always looking for ways to improve a process or service for customers (and deliver more value).

Services will be born and also retired (death).

The service catalogue details the things on offer, together with service levels.

The table below shows the processes for each stage within the ITIL service lifecycle:

The next post in this series will follow soon, looking at service strategy.

These notes were written and published prior to sitting the exam (so this post doesn’t breach any NDA). They are intended as an aid and no guarantee is given or implied as to their suitability for others hoping to pass the exam.

ITIL® is a registered trademark of Axelos limited.