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(Ivanka Menken, Claire Engle, Jackie Brewster) ITI PDF
(Ivanka Menken, Claire Engle, Jackie Brewster) ITI PDF
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Table of Contents
1 INTRODUCTION ......................................................................................................................... 5
5.1 MANAGING – PLAN AND INITIATE THE KEY ACTIVITIES FOR THE SLM AND FMIT
PRACTICES ........................................................................................................................................... 55
5.2 MANAGING – PLAN THE EXCHANGE OF APPROPRIATE INFORMATION RELEVANT TO
MANAGING THE SLM AND FMIT PROCESSES .................................................................................... 61
5.3 MANAGING – REPORT ON THE EFFECTIVENESS AND EFFICIENCY OF THE ACTIVITIES SLM
AND FMIT PROCESSES ........................................................................................................................ 65
5.4 ORGANIZING – ORGANIZE THE EXCHANGE OF APPROPRIATE INFORMATION WITH
CUSTOMERS, END-USERS AND SUPPLIERS ......................................................................................... 71
5.5 ORGANIZING – DEVELOP AND MAINTAIN THE PROCEDURES OF THE SLM AND FMIT....... 75
5.6 ORGANIZING – DEFINE SERVICES AND MAINTAIN SERVICE CATALOGUE ............................ 77
5.7 ORGANIZING – PREPARE THE NEGOTIATION, AGREEMENT AND MAINTENANCE OF VARIOUS
AGREEMENTS (SLA, OLA, UC).......................................................................................................... 83
5.8 ORGANIZING – PARTICIPATE IN THE BUDGETING ACTIVITY ............................................... 105
5.9 ORGANIZING – PARTICIPATE IN THE DEVELOPMENT OF THE IT ACCOUNTING SYSTEM .. 109
5.10 ORGANIZING – PARTICIPATE IN THE DEVELOPMENT OF THE CHARGING SYSTEM ......... 117
5.11 ORGANIZING – PARTICIPATE IN THE CREATION OF THE FINANCIAL REPORTS ............... 127
5.12 OPTIMIZING – MONITOR AND OPTIMIZE THE SLM & FMIT PROCESSES ......................... 131
5.13 OPTIMIZING – PROPOSE SERVICE AND PROCESS IMPROVEMENTS, BASED ON RESULTS
OF MONITORING AND REVIEWS .......................................................................................................... 135
5.14 OPTIMIZING – CONDUCT AUDITS OF THE SLM AND FMIT PROCESSES .......................... 145
5.15 OPTIMIZING – MANAGE THE ONGOING FINANCIAL OPERATIONS AND PERFORMANCE ... 151
5.16 OPTIMIZING – PARTICIPATE IN ONGOING SERVICE MANAGEMENT THROUGH THE SERVICE
REVIEW MEETINGS.............................................................................................................................. 157
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ITIL Practitioner: Agree and Define
4
ITIL Practitioner: Agree and Define
1 INTRODUCTION
This program is fully accredited by the globally recognized accreditation agency for
IT Service Management programs – EXIN.
The program has been developed and accredited in accordance with guidelines
provided by EXIN.
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ITIL Practitioner: Agree and Define
The ITIL Practitioner Agree and Define is intended for professionals who will
participate in managing, organizing, and optimizing, the operations of the Agree and
Define processes in an IT Service organization.
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ITIL Practitioner: Agree and Define
The starting point for IT Service Management (ITSM) and the ITIL Framework is not
the technology, not the processes; it is the organizational objectives.
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ITIL Practitioner: Agree and Define
The core set of material is the following set of tightly coupled areas:
Service Delivery
Service Support
Security Management
Business Perspective: The IS View on Delivering Services to the Business
(Vol I)
Applications Management
ICT Infrastructure Management
Planning to implement Service Management
Software Asset Management
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ITIL Practitioner: Agree and Define
APMG: In 2006 APMG won the tender to own the rights for accreditation and
certification of the ITIL courses. EXIN and ISEB used to be independent bodies, but
now sublicense through APMG.
Tool Vendors: (HP, Infra, Remedy, HEAT, etc…) provide technical solutions for
customers trying to implement ITIL/IT service management.
There is no such thing as ITIL certified tools. Only people can be ITIL certified.
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ITIL Practitioner: Agree and Define
continued…
ITSMF: (IT Service Management Forum) is the only internationally recognized and
independent organization dedicated to ITSM.
Accredited Vendors: (E.g. The Art of Service) Only accredited vendors can provide
ITIL training.
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ITIL Practitioner: Agree and Define
Foundation = understanding
Practitioner = doing
Manager = implementing
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This slide demonstrates the learning pathways that can be taken in developing your
knowledge and skills for ITSM. The Art of Service provides world-class accredited
programs for all ITIL certification levels as described above.
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Y2K and the after effects of the dot com crash of the late 90s.
Microsoft also introduced MOF which is based on and adapted from ITIL but with a
prescriptive Microsoft flavour. . As Microsoft is a giant player in the IT industry, their
acknowledgement of the strengths of ITIL was a major influence in ITIL’s promotion.
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Notes:
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Notes:
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Balanced score cards (BSC) - one of the most common methods of measurement.
This method uses the objectives of the organization or process to define Critical
Success Factors (CSF’s).
Critical Success Factors (CSF’s) - are defined for a number of areas of interest or
perspectives: customer/market, business processes, personnel/innovation and
finance.
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continued…
Process Manager – is responsible for the realization and structure of the process,
and the reports to the process owner.
Function - a team or group of people and the tools they use to carry out one or more
Processes or Activities. Functions provide units of organization responsible for
specific outcomes. E.g. The Service Desk function is responsible for performing
activities from the other ITIL processes including Incident Management, Event
Management, Request Fulfilment etc.
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ITIL Practitioner: Agree and Define
More and more people see the importance of Processes (the primary purpose of
this program is studying some of these in detail).
The Organizational Perspective issue ensures that we align the vision, strategy
and goals of the business with the delivery of IT services.
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ITIL Practitioner: Agree and Define
The policy of the organization is the combination of all decisions and measures taken
to define and realize the objectives. Implementing policies in the form of specific
activities requires planning.
There is a danger, that after time, the mission, objectives and policies will be
forgotten by the organization. This why it is so important to measure at every stage
of the organizations maturity, to ensure remedial action is taken when necessary.
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So if we accept that the objectives are the starting point for the provision of IT
Services, how can we position the delivery of services and the utilization of the ITIL
Framework?
The objective tree is a very powerful tool not only in showing the benefit and
alignment of IT and Service Management principals to the business, but also in
being able to effectively sell the concepts as well.
See if you can follow along in the following paragraphs and match the sentences to
the above objective tree.
Each of the units involved in these business processes needs one or more services
(e.g. CRM application, e-mail, word processing, financial tools).
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continued…
Proper management of IT Infrastructure will ensure that the services required by the
business processes are available, so that the organizational objectives can be met.
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The questions raised on the left hand side of this diagram arise constantly in the
process-based approach typical of modern IT Service Management. The tools to
answer these questions are shown on the right hand side of the diagram.
The standards for the output of each process have to be defined in such a way that
the complete chain of processes that meets the corporate objective, if each process
complies with its process standard. If the result of a process meets the defined
standard, then the process is effective. If the activities in the process are also
carried out with the minimum required effort and cost, then the process is efficient.
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GQM = Goals/Questions/Metrics
The first and most important question that needs to be answered is whether the
“initiative” or adoption of a CSIP (Continuous Service Improvement Program) will
deliver sufficient revenue/savings to justify the expense. The principle challenge is
that much of the benefit cannot be quantified (eg. quality, flexibility, service
satisfaction).
With regards to Risk Management we must remember that this initiative is not the
only one competing for organizational budget. What is the effect on other initiatives if
this IT initiative is successful at attracting funds? Also what risks will be faced after
the program has begun? The salient point is that risks will always be present, so
don’t attempt to eliminate them – simply get to understand them.
The Gap analysis is generally an opportunity to use “scores” to measure current and
future expected levels of maturity. For example a 5 level model of maturity is defined
in the OGC “Planning to Implement Service Management” text (Initial, Repeatable,
Defined, Managed, and Optimized).
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To move from one stage to the next requires management and control over people,
processes, technology, steering, attitude and changing relationships between the
business and the IT organization.
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The most important aspect of the communication plan is that it needs to be ongoing
and not just given enthusiastic support at the outset of the CSIP initiative. Under the
banner of managing organizational change; it simply isn’t enough to get a group of
people together that have project management and ITIL skills and experience. There
is a multitude of issues that have to be considered and addressed (including
resistance, gaining and keeping commitment, involvement and communication).
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continued…
As people are an integral part of the CSIP there is a need to provide appropriate
levels of education, the critical element being timing of delivery. All too often we see
education programs delivered only to witness a lack of follow up activity that gives
the participant an opportunity to put the theory into practice.
Finally, tools. The raging debate is which comes first. Tools or process? In reality,
most organizations have a variety of IT Service Management tools already. It is not
the place of this program to suggest that existing tools are a wasted investment;
however, the commonly accepted principle is that the processes should be
supported by the tools and not the other way around.
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CSFs are quite simply the things that we have to be able to do. They tell us in
qualitative terms the basic objective for a process (eg. the CSFs for Change
Management can be (a) a repeatable change process, (b) ability to deliver change
quickly, (c) deliver organizational benefits via change management).
KPIs can be considered the quantitative elements of a process that give us a guide
to the process efficiency (eg. the KPIs for Change Management can be (a) the
number of rejected RFCs, (b) the size of the change backlog, (c) quantity of changes
delivered according to RFC schedule). Note that there are generally a lot more KPIs
than CSFs for a given process.
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continued…
Organizational drivers are the points that are raised by “business people” as their
“wish list” for the IT department. There have been many surveys conducted over
many years, but the essence of what business people want from their IT
departments can be condensed down into several points. These include support
business operation, facilitate delivery of electronic services, and help to deliver
business strategies, enable change to match pace with required business change.
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Quick wins should be used to help drive more change that is medium to long term.
Also consider what your legacy of change will be. Consider in 10 years time when all
current staff have moved on or been replaced. When asked why certain activities are
done the way they are – what will be the response? That is the way it’s done
around here. Perhaps that could be considered a good legacy, provided that part of
“the way it’s done around here” involves continual monitoring and reviews.
The real essence of a CSIP is the first word of the acronym. Continuous! The way to
create continuity is to go back to the start and begin again. Remember it begins with
the VISION. The vision must essentially promote business and IT alignment.
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continued…
Knowledge management is another way to ensure the legacy of the work you do is
not lost. The rate of change, staff turnover, expectations of performance and market
place competition are all heading in an upwards direction. With these trends the
organization cannot afford not to retain knowledge and not learn from previous
mistakes and lessons. The CSIP must include in its overall design elements
consideration for the gathering, organizing and accessibility of
data/information/knowledge.
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Most businesses are hierarchically arranged. They have departments, which are
responsible for a group of employees. There are various ways of structuring
departments, for example by customer, product, region or discipline.
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EXAMPLE PROCESS
What are the inputs? The ingredients (eggs, milk, flour, sugar, butter, chocolate) plus
equipment such as pans, mixers etc.
What are the activities? Mix, pre-heat oven, bake, cool, decorate etc.
What are the measures? How much ingredients, how long to bake, at what
temperature etc.
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continued…
In this example, baking a specific cake (eg. a birthday cake for Jane) is a project.
The goals, activities, inputs, outputs, goals, measures and norms defined makes up
the process for baking cakes.
Question: What is the process owner (eg. head chef in a kitchen) responsible for?
The output of the process, e.g. the cake itself
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ITIL Practitioner: Agree and Define
The ARCI model helps show how a process actually does work end to end
across several functional groups.
A – Accountability (is made accountable for ensuring that the action takes place,
even if they might not do it themselves).
R – Responsibility (actually does the work for that activity but is responsible to the
function or position that has an “A” against it.
I – Inform (the function or position that is told about the event after it has
happened).
General Rules:
Only 1 “A” per Row (ensures accountability, more than one “A” would confuse this)
At least 1 “R” per Row (shows that actions are taking place)
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Notes:
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The success of SLM is very dependent on the quality of the Service Catalogue and
its contents, because it provides the necessary information on the services to be
managed within the SLM process.
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Notes:
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Notes:
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It is important SLM ensures that all internal and external parties (including end users)
are made aware of the details within the SLA. This communication enables a
thorough understanding of the overall aims and objectives as well as the benefits
and service targets of the SLA.
All relevant services are described within the Service Level Agreement. The
descriptions of each of these services should include:
Key Business Functions
Deliverables
All other relevant information to describe the service and its scale, impact and priority
for the business.
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Service Catalogue. You need to know what you can do first, and then we can map
the customer requirements to the Service Catalogue.
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Notes:
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Notes:
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Using FMIT to provide services with cost transparency (e.g. via service catalogue)
clearly understood by the business and then rolled into the planning process for
demand modeling and funding is a powerful benefit.
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ITIL Practitioner: Agree and Define
3 Fundamental Activities
Budgeting: Predicting the expected future requirements for funds to deliver the
agreed upon services.
IT Accounting: Enables the IT organization to account fully for the way its money is
spent. Identify costs by Customer, by service, by activity.
Charging (optional activity): Required to bill the Customers for the services
supplied to them.
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Cost Types – these are higher level expenses such as hardware, software, labor,
administration etc
Cost Classifications – there are also classifications within services that designate
the end purpose of the cost. This includes classifications such as:
Cost Units – a cost unit is the identified unit of consumption that is accounted for a
particular service or service asset.
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continued…
Fixed/Variable –The strategic issue around this classification is that the business
should seek to optimize fixed service costs and minimize the variable in order to
maximize predictability and stability.
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Notes:
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5.1 MANAGING – Plan and initiate the key activities for the SLM and FMIT
practices
Notes:
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An awareness campaign is a great way to win support and advise all parties how
and when they might be affected.
It is also critical that current monitoring tools and techniques are reviewed and
improved as necessary to ensure there are adequate capabilities for monitoring
SLA’s.
SLM will plan to review and implement Operational Agreements with internal
suppliers and Underpinning Contracts with external suppliers the support SLA
targets.
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In addition, at this stage, setting and agreeing Incident priority levels and escalation
paths, with Customers, and internal and external providers (in conjunction with
Service Desk and Problem Management) would be appropriate.
These activities may be incorporated with a formal project and managed via a
recognized project management method e.g. PRINCE2.
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Notes:
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The SLM process involves assessing impact of Changes upon the service quality
and SLA’s, both when Changes are proposed and after they have implemented.
Some of the most important targets set in the SLA’s will relate to service availability
and thus require Incident resolution within agreed time periods.
Therefore it is essential that SLM holds good communication links with the other
processes, and plans the exchange of appropriate information to ensure their
success.
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ITIL Practitioner: Agree and Define
Capacity Management – Cost information can be used to estimate the costs of the
desired Capacity and Availability of the system. In planning the Capacity it may be
necessary to discuss the costs with individual customers or the organization as a
whole. Data that is collected so that costs can be determined may also be relevant
to Capacity assessments, e.g. staff effort, machine usage.
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ITIL Practitioner: Agree and Define
continued…
Configuration Management – FMIT requires asset and cost information that may
be managed by large organization-wide systems. Configuration Management is
responsible for managing the data relating to assets (C.I’s) and their attributes e.g.
costs.
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Notes:
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Periodic reviews must be held on a regular basis with customers, to review the
service achievement in the last period and to preview any issues from the coming
period.
We will look at Service Review Meetings in more details later (Optimizing section).
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Notes:
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Notes:
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Notes:
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Service Level Management is not about providing a cushion for customer complaints
or a process for passing blame around and avoiding responsibility.
Service Level Managers should aim to build partnerships with customers built on a
shared vision or strategy that unites them in their goal for attainable and successful
managed services.
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They key indicators of successful Service Level Management are the continuous
successful mapping of services to the ever changing customer requirements, the
sustained provision of services, and a mutually beneficial customer/provider
relationship under the umbrella of a shared strategy.
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5.5 ORGANIZING – Develop and maintain the procedures of the SLM and
FMIT
Notes:
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The Service Operating Procedures (SOP’s) are recorded in a document that details
every business activity and process.
As there is a great deal of planning that is required before SOP’s can be organized,
SLM will play a leading role in this process.
SOP’s can be used as benchmarks for performance reviews, training aids, or in the
case of quality standards, a starting point for improvement.
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Notes:
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In defining the services the organization actually provides, a hierarchy of services will
generally emerge as the basis for the Service Catalogue.
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Notes:
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Notes:
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Notes:
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Determining and documenting a true set of service level requirements which can
then be made into a SLA is far from simple.
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Notes:
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Service Level Agreements allow customers to be flexible and ask for changes or
additions to the services currently on offer. These changes and additions are
complex and need to be managed by the SLM, to ensure their workload is
coordinated effectively and efficiently.
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To gain the full three-sixty degree view, perceptions should be gathered and
evaluated at both the User and Management levels within the Customer community
and the Service Provider.
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ITIL Practitioner: Agree and Define
It is important SLM ensures that all internal and external parties (including end users)
are made aware of the details within the SLA. This communication enables a
thorough understanding of the overall aims and objectives as well as the benefits
and service targets of the SLA.
All relevant services are described within the Service Level Agreement. The
descriptions of each of these services should include:
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Notes:
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1. Service Based:
Benefits:
Challenges:
2. Customer Based:
Benefits:
Challenges:
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continued…
3. Multi-Level Based:
Benefits:
Challenges:
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Notes:
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Notes:
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Notes:
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Notes:
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Notes:
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Notes:
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The fact is customers ‘can’ be unrealistic about their expectations. More often than
not, IT service providers are saying ‘yes’ to delivering services based on unrealistic
or excessive demands by customers. Although the service provider may be well
intentioned in agreeing to these demands, inevitably the outcome is not – ‘poor
customer service’.
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Define:
Specify:
Negotiate:
Monitor:
Report:
Review:
Evaluate:
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E.g. Customer calls and explains that they have requirements for certain types of
services. We refer to our Service Catalogue to see if we provide these or not. If we
do, we can IDENTIFY the service name and then move into the CONTRACT stage
with the customer. If the service doesn’t exist then we need to more clearly DEFINE
the customer requirements.
Note: in the DEFINE stage we may uncover new services that are not part of the
current Service Catalogue or require modifications to existing entries in the
catalogue/spec sheets.
We do not re-create the Service Catalogue and Spec Sheets each time we go
through the activities of SLM. The Service Catalogue and Spec Sheets are created
once and then modified (this relates to the “Mods to” in the slide above).
In the CONTRACT stage we create our OLA, UC’s and SLA’s as required.
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continued…
In the REPORT stage Service Level Reports are about specific SLA’s. Remember
that a report does not need to be a written document – it can be a series of numbers,
a “health meter” or other form of representation.
Finally in the REVIEW stage the Service Quality Plan helps us to define the SLM
activity. How the process works and how it should interact with other process areas.
The SQP is like a central point for the Service Manager to define their view of the
entire ITSM approach.
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Notes:
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Notes:
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Types of budgeting:
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The final budget agreed for an IT organization may include financial disciplines
imposed by the organization, including:
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Notes:
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The basic IT Accounting principles and implementation (why do it, what to do and
who it affects) are common to all business processes.
But the details of what to cost and how to cost it depend upon the type of service
being provided.
IT Accounting can be very complex and if implemented at too high a level of detail,
may cost more than the benefits realized. The IT Accounting system described
below should enable an organization to:
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Costing models are used to analyze the incurred costs for IT service provision.
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Notes:
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Notes:
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Based on previous Cost Model (by customer), you can calculate the costs for a
specific service. The basic approach is similar:
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FYI
http://ids.csom.umn.edu/faculty/kauffman/courses/8420s98/Project/TCO/tco.gif
Gartner, Inc. (NYSE: IT) is the world’s leading information technology research and
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Through the resources of Gartner Research, Gartner Consulting and Gartner Events,
work with every client to research, analyze and interpret the business of IT within the
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Notes:
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Such a system controls IT Service costs and influences the proper use of IT
resources, so that these scarce resources are used in the manner that best reflects
business need.
To calculate the charge for providing IT Services internally, or between (or to)
subsidiaries, an organization must decide, prior to implementation, what it is hoping
to achieve. One key factor is to analyze the motivational aspects of Charging,
considering both the effects upon the provider and the customer of the service. The
objective is to optimize the behavior of both parties in achieving the organization’s
aims.
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Charging Policy (ie decision to charge) set by the business, not IT.
Cost-plus Price = calculated cost + % to cover for aspects like R&D and training
Going rate Price is comparable with other similar internal departments’ costs (e.g.
price per seat)
Fixed price A set price is agreed (for a set period of time) with the customer (e.g.
customer does not pay for the full development costs of software, but an agreed part
ie negotiated contract price)
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continued…
Fair Charges should recover the costs without biasing any ONE customer
Realistic: The cost of implementing charging should not exceed the benefits
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Fair: The system must be fair and realistic, services which are not cost-effective
need to be reviewed and hard decisions taken. Each business should pay the same
money for the same service.
The image of the IT Service organization is likely to change; they may be seen
initially as demanding money without providing the required service, as having
become bureaucratic and focused on trivial accounting. To limit this risk, IT
organization considering the implementation of charging should:
Publicize the program and work with the businesses to define charging policy
Ensure that Service Level Agreements are in place and representative of actual
service.
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Notes:
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Often the first two options above lead to the introduction of Full Charging. Whatever
approach is followed, the presentation of the information to the customer must be
simple, understandable and honest.
Notional Charging is useful when a Charging system is being introduced for the first
time. Notional Charging allows the IT Services organization to gain experience and
time to correct errors in the Charging formulae or cost recovery plans and
familiarizes customers with the concept of being charged for using IT resources.
Notional Charging is not recommended for long-term use unless the organization
does not intend to move to a real Charging system, because the incentive to become
cost conscious is lessened when money does not change hands.
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continued…
If Full Charging is introduced, the organization must ensure they are able to manage
cash flow. If a bill is only paid annually, the organization may have to account for the
gap between revenues and expenditure in the same way that a separate company
would have to manage its cash flow.
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Notes:
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continued…
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Customers usually expect IT Services to manage this without additional cost, but
there may be no IT budget available. The likely effect is a stretching of resources,
which impacts all service levels; hence SLM must be involved in any decisions to
provide chargeable service in excess of agreed budgets.
As no IT organization can actually afford to just stop, it is critical that the FMIT tracks
customer budgets to be able to identify over-runs before they occur.
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5.12 OPTIMIZING – Monitor and optimize the SLM & FMIT processes
Notes:
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Periodic reports should be issued to customers a few days in advance of the SLA
reviews, so any queries or disagreements can be resolved ahead of the review
meeting. This stops the meeting from being diverted by such issues.
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The resources required to produce and verify reports should not be underestimated.
It can be extremely time consuming and if reports do not reflect the customers own
perception of service quality accurately, they can add insult to injury.
SLM will take into account the specific reporting needs and automate production of
these reports, so far as possible. The extent, accuracy and ease with which
automate reports can be produced should form part of the selection criteria for
integrated support tools.
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Notes:
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Notes:
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ITIL Practitioner: Agree and Define
Notes:
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Notes:
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Notes:
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Yes/Why Questions:
From this we can investigate where the process is deficient and begin a plan for
improvement. Communicating this to the business also gives them a better
understanding of the complexity of providing the services and more importantly
allows the business to be actively involved with assessing the costs, risks and
plausibility of will be needed in order to bridge the gap.
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continued…
From this we can communicate to the business the reasons we were successful and
thereby market the value of IT to the business.
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Notes:
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ITIL Practitioner: Agree and Define
Notes:
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ITIL Practitioner: Agree and Define
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Notes:
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Periodic reviews of the IT Accounting and Charging systems should check they are
working effectively. They also ensure that FMIT is continually reviewing the system
and that all identified deficiencies are corrected at source to prevent recurrence.
FMIT should perform their own audits and checks to reassure management that the
systems runs properly and is policed effectively. Independent audit should confirm
this and also provide comparison with other organizations.
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Notes:
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There can often be a trade off between capital investment and running cost
expenditure. Capital investment decisions are essentially longer-term decisions,
therefore it is more difficult to hold management responsible for such decisions.
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Notes:
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The day-to-day operation of the IT Accounting system includes both the production
of cost and Charging data and the checking of its accuracy.
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Notes:
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Changes at agreed SLA reviews must also be reported. SLA changes are normally
aligned to annual budget negotiations but IT Services Management may delegate to
SLM the powers to vary SLA’s within agreed bounds during the year.
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Cost Variances: Costs for Cost Units are the basis of the budgeted costs of IT
Services. If they have been miscalculated, they affect the overall recovery of costs
(i.e. Charges) and this has to be addressed by recalculation ASAP. If there has
been some change in the expenditure required to purchase or maintain the IT
Services, it may be possible to pass this on to the customer, with their agreement.
Particularly if the costs are clearly attributable to a single customer; an example of
this might be increases in software or hardware maintenance.
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continued…
Revenue Variances: Although the organization may decide to run the IT Services
at a profit, it is possible that monitoring reveals either too great a profit or a shortfall.
Where too much revenue is generated the cause must be identified and justified or
corrected; unless absolutely necessary the charges must not be altered. Some of
the reasons for generating excessive revenue include: a) workload has grown faster
than forecast and flexible Charging has resulted in increased charges, although
sufficient Capacity was available without the IT organization incurring additional
costs b) customers are being forced to buy more IT resource than they anticipated
possibly because there is insufficient Capacity or inefficient service c) charges really
excessive.
Where the problem is identified as a poor service, the underlying cause must be
identified. When workload growth is the problem, forecasts must be revised and it
may become necessary to make a case to procure additional capacity.
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Notes:
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Notes:
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Notes:
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Notes:
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Notes:
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Notes:
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Notes:
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Notes:
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Notes:
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The SLM process must be ‘owned’ in order to be effective and achieve successfully
the benefits of implementation. This does not mean it should be undertaken by a
single person, unless that is appropriate within the organization.
However, if the role is split, it is important to avoid giving tasks to people in ‘fire
fighting’ type roles, as they will not be able to mange the majority of the required
tasks pro-actively.
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Notes:
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Notes:
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Notes:
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SLAs should give the IT service provider the freedom to alter the content of their
services; only the scope and boundaries should be pinned down in an SLA. (The
customer and IT service provider agree upon the outcome of the services, not the
content)
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Notes:
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Notes:
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This includes staff directly working in these areas and Operations or other staff
involved in the data collection.
Some of these tools are also required for other Service Management processes.
Once costs are visible, the demand for some services may fall. This results in
reduced revenue but is not really a cost of implementation, as it is in the
organization’s interest to identify and reduce use if IT resource.
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Notes:
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Notes:
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6 ASSIGNMENTS
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Define
(Service
Catal.)
Refine
(SLRs)
Agree &
Negotiate
Monitor
Report &
review
Evaluate
(SIP)
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Task b) Create a Charging model that is fair and realistic to be implemented with
Rece shoes. In addition consider the potential challenges and risks that will need to
be considered. Your findings will need to be included in Task D – Final Presentation.
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Task a) Read and discuss the issues raised within the case study and especially
within the complaint letter.
Task b) Organize a letter responding to the customer complaint letter, addressing all
the issues and explaining how you intend to improve the current service, with
specific and realistic targets.
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7 ASSIGNMENT RESOURCES
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I am writing to complain about the lack of communication and general support from
your organization.
I recently received a report, sent from your office, that I assume was intended to
update me on the current status of our Service Level Agreement. I have been
unable to ascertain any helpful information from this report as it written with a
technical ‘IT’ focus and not a customer focus I had expected. My current view is that
I am spending a lot of money, but have little idea what I am paying for.
In a recent meeting, I was informed that the previous issues that have affected the
targets agreed within the SLA had been identified and improvements would be
implemented ASAP to avoid further dissatisfaction. However, since this meeting I
have had no further communication with regard to any improved services or, more
importantly, what they have cost.
I have attempted to call on several occasions, but have been unable to make any
progress as every member of staff I have spoken to seems to repel accountability
and responsibility.
As I am sure you are aware, the retail operations of this company are essential to
our continued success and growth. Without the support of the IT division we are left
floundering and unable to satisfy our customer needs.
I am sure that you will agree that this is not the service we signed up for, and would
like to hear your thoughts on this current performance. I expect a response in writing
ASAP.
Sincerely,
Mrs G. Rumpipants
Retail Operations Manager
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Rece
Couture Shoe Design
For the love of
craftsmanship
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Introduction
Rece has grown rapidly to become one of the leading shoe retailers of the world.
During recent years Rece has expanded substantially to reach in 2004 the third most
favoured designer shoe label. The company has also expanded the product line with
the introduction of an accessory line. Such spectacular growth has been achieved
internally and not through acquisition or merger.
Rece is a company that has major operations centres in New York, Paris, Milan,
Hong Kong and Melbourne, as well as 150 retail outlets worldwide (Rece stores and
concessions in major department store locations).
In addition, Rece operates an online store with the capacity to accept in excess of
5000 online orders per day.
Rece provides an unparalleled service network via dedicated own offices throughout
the world and remains a truly independent and private Company able to respond
quickly to market changes and implement long term plans, without unnecessary
interference or delay.
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Vision
Rece vision is to enhance its position as the leading designer shoe design and
retailer in the world.
To realise this vision and prepare for competition, Rece has adopted a four-part
growth strategy, entailing:
The organization is virtually identical at each of the head offices. For example, each
head office will have the following departments:
Each manager for the listed departments will report directly to the director of that that
local office.
The CEO of the company and her managing directors are located in Head Office in
London, England.
Logistics
The logistics department’s main responsibility is to ensure that all goods being
shipped by sea or land are loaded to the appropriate carrier. This is to ensure that
Rece can fulfil their obligations regarding paid orders from their customers.
The logistics department works very closely with both the Sales and the
Manufacturing departments. The logistics departments will organise the loading and
consignment of the goods, but it needs to also ensure that appropriate crews have
already been notified and that there is an availability of transport.
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arise. In the event that it becomes difficult to ascertain the nature or the solution for
the issues, the Logistics department will be given priority to manage the issue to
resolution. The Logistics department will therefore have the final authority in these
decisions.
Maintenance
Rece operates a number of large container workshops around the world, so that
maintenance can be carried out more efficiently.
Sales
The sales department is responsible for obtaining orders for international company
chains and stores requiring Rece concession stock. They are also responsible for
the online orders made via the Rece website.
Rece operates a total of 350 dedicated sales offices across the entire globe, and
employs approximately 8,000 sales staff.
Because of such a large volume of people each regional head office will have a
Sales Director which will look after the sales offices within that region.
Accounts Department
The Accounts Department takes care of the head office's financial accounts,
including the management of the accounts payable and accounts receivable ledgers.
The Accounts Department also takes care of the payment of salary to staff members
and any contractors.
There will also be small Accounts Departments at each key location across the
globe. The managers of these departments will report directory to the manager at the
head office for that region. As a general rule, there is not more than four Accounts
Departments per region.
The Accounts Departments work very closely with the Sales Departments. The Sales
departments will interface into the computer systems controlled by the Accounts
Department.
Human Resources
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Rece sees this function as being critical to their organization. Sales, Design and
some Manufacturing staff are required to travel on a regular basis, sometimes at
short notice for extended periods of time. This can place a serious strain on staff and
their families, and as a result Rece wishes to ensure the well being of its staff
members as it is recognises that they are integral to the organization. Rece does this
through medical and mental assistance programs, and by offering generous product
discount and annual leave packages.
ICT Department
Each head office around the world employees a small team of IT personnel to help
deliver and support IT Services for their specific regions. For all intents, these groups
run fairly autonomously, having their own support teams, including their own Service
Desks.
However, in London, there is a central ICT Department that provides IT Support for
all the store and online requirements.
General
The computerisation of Rece’s information systems has not been fully completed at
this stage. However, there are certain aspects that can be considered fairly mature.
A large part of the financial accounts of the entire Rece organization have been
computerised. Due to the geography that exists between the various head offices,
there had been identified a need for a virtually identical computerisation standard at
these offices.
However, unfortunately a large part of the handling of orders and planning processes
has not been as well computerised as possible. This is generally due to local
constraints being enforced by the relevant government organizations within the
various regions that Rece operates.
Resolution of this is being seen as a key aspect of the success of the Rece
organization.
Systems
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Due to the need for various head offices to comply with the local laws regarding
finances, the FINANCE system has evolved to be the most diverse system in the
organization, being virtually different at each head office.
PAYPOINT is the companies’ point of sale system. This is ready for an up date.
The technology being used is out of date and not to the standard represented by the
company, who want to be state of the art but at the right cost!
STOCK is the Rece Inventory Management system. It holds list of goods and
materials themselves, held available in stock by a business. The inventory is held in
order to manage and hide from the customer the fact that manufacture/supply delay
is longer than delivery delay, and also to ease the effect of imperfections in the
manufacturing process that lower production efficiencies if production capacity
stands idle for lack of materials.
FOCUS is the companies CRM system that manages their relationships with
customers, including the capture, storage and analysis of customer, vendor, partner,
and internal process information.
There are three aspects to the FOCUS system:
General Systems
There is also a general suite of applications, mainly Microsoft, with some Lotus
Notes, which includes an e-mail, word processor, spreadsheet application,
appointment calendars & scheduling software and the Human Resources
applications...
These suites of applications are offered via local networks. The links between local
networks and the links between desktop computers are completely transparent to the
users.
This software is stored centrally on the main servers within the ICT Department in
London, which allows remote users to download them as needed. However, each
head office around the world, local versions are kept as this allows for easier
management of the local standard operating environments.
Hardware
Each of the head offices uses a series of UNIX based servers for capturing and
recording their information. These servers have direct data links back to the head
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ITIL Practitioner: Agree and Define
office in London, where the information is then stored on a central mainframe. The
mainframe is equipped with disk and tape storage facilities.
However, across the organization the network structure is fairly similar at each of the
head offices. This allows for easier deployment of applications across the entire
organization.
The wide area network has been outsourced. The outsourcer in this situation is
managing and coordinating the leasing of the necessary network infrastructure. The
outsourcer is responsible for providing monitoring information regarding the
availability of the wide area network.
The cost of the organization maintaining the WAN infrastructure was considered too
great. However, recently it is being seen by the organization that the infrastructure
may not be as stable as proposed and are looking at the IT Departments to manage
this in a more structure manner. This has resulted in incomplete transactions being
fed back into the central mainframe, potentially costing the organization millions of
dollars.
IT Organization
However, policy and objectives for IT are created and managed from the London
office. London is seen as the central IT Department. However, autonomy is provided
to the other head offices to manage, deliver and support IT Services as they need.
As such, each head office has a Chief Information Officer (CIO), who reports into the
Group Managing Director, Network and Technology.
All CIO’s have a monthly video conference call, with a bi-annual face to face
meeting. At the bi-annual meeting, strategy and policies for Information Services and
Information Technology are discussed and agreed upon. This meeting is chaired by
the Group Managing Director, Network and Technology.
In addition to this, there are regular consultations between the head offices regarding
technical matters. Telephone and e-mail are the means most commonly used for this
with the occasional video conference.
There is however a general consensus amongst the senior IT Managers that the IT
functions within Rece could probably contribute more to the business objectives of
the company. However, they still all agree that in general terms the deployment and
organization of its IT resources is reasonably good:
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London
London uses a Fujitsu 8500 series mainframe as its central computer. The
mainframe serves as a way of centralizing all the data from the other various head
offices. The mainframe has approximately 3000 GB of disk storage.
Due to the large nature of the organization, it was determined that there also needed
to be a development mainframe, although scaled down in size. At this stage the
organization does not have a testing mainframe and as such, most of the testing is
carried in the development environment.
The remote head offices can access the mainframe via deployed client applications
and for some specific uses, via the World Wide Web.
Sales Offices
The following IT components have been installed at each local sales office:
• Personal Computers
• Operating System: Windows 2000
• No CD ROMs
• No Floppy Disk Drives
• Pentium III – 500Mhz
• At least 1 Server –
• Operating System: Windows 2000 Server
This allows individual sales offices to enter shipping orders into the system, as well
as create and distribute information via email for their local regions. This is seen as a
key aspect, as each sales office is responsible for generating their revenue.
At certain times and for certain parts of the infrastructure, development and
maintenance of this is contracted out to various suppliers with whom a maintenance
agreement has been signed.
At this stage Rece does not have any reciprocal arrangements with any other
company in the event of a disaster.
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ITIL Practitioner: Agree and Define
In addition to this, there is a group of roving engineers who travel their local region
and are trained to solve the most commonly occurring problems independently. If
he/she is unable to do this, the head office is contacted. The call will then be routed
through to the local head office, if resolution is not possible then the assistance of
suppliers who are able to solve the problems are called in.
Policy
The current services delivered by Rece are under pressure. With the opening up of
global trade agreements, customers are placing greater and more stringent demands
on Rece’s services.
The Group Managing Directors are seeing certain opportunities arise within the
global community which they wish to capitalize on. As a result of this they have
formulated the following objectives:
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Given the above objectives and Rece’s existing Information Technology, the
Managing Directors believe that with its present level of technology within the IT
Infrastructure they will be able to meet its objectives. However, the management,
delivery and support of the IT Services may require some restructuring. There is a
belief that third parties will be increasingly called upon to help manage and
implement planned projects.
This option raises a number of alarms with regards to cost and security issues. The
Managing Directors believe the talent exists within the organization and will be
looking for them for recommendations. The IT Departments across the various head
offices see the reliance on external suppliers as a direct threat to their job security.
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ITIL Practitioner: Agree and Define
8 EXAM PREPARATION
QUESTION 1
As the financial controller for the IT Department of a large organization with who
would you normally negotiate with regarding the amount of funds required for the IT
Service Delivery budget?
QUESTION 2
How can Service Level Management use data from the incident register at the
service desk? Service Level Management uses this data:
QUESTION 3
2. A service level agreement (SLA) guarantees the users the most important
applications will always be available.
QUESTION 4
Which two processes along with Service Level Management are used to instigate a
Service Improvement Program (SIP)?
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ITIL Practitioner: Agree and Define
QUESTION 5
All but one of the following are costs we are interested in tracking.
a) Meeting costs
b) External service costs
c) Hardware costs
d) Accommodating costs
e) Transfer costs
f) Software costs
g) People costs
QUESTION 6
QUESTION 7
As the Financial Manager for your IT organization, you want to demonstrate the
effectiveness of the IT accounting systems established.
a) The actual costs for every budget item can be accurately tracked
b) A reduction in the number of budget variances and adjustments
c) The IT financial objective of either break-even or profit is being met
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ITIL Practitioner: Agree and Define
QUESTION 8
QUESTION 9
One day, one of your colleagues in the Technical Management department hears
about your activities as the Service Level Manager in relation to SLAs. He says he
can record the SLAs in the chosen Service Management tool. He shows you an
entry screen for SLAs.
QUESTION 10
According to ITIL best practice, which of the following information should NOT be
included in an SLA?
QUESTION 11
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ITIL Practitioner: Agree and Define
QUESTION 12
In recent discussion it has been decided that Desktop Publishing be a part of the
Service Catalogue. No agreements have been reached at all yet for this service. In
fact, for the sake of convenience you have simply omitted this service from the
Service Catalogue.
When you discuss this with the branch directors, you hear all kinds of different
opinions on the direction things should go with DTP. Good agreements on
development and operations are not yet possible.
QUESTION 13
The goal of Financial Management for IT Services for an in-house organization is:
"To provide cost effective Stewardship of the IT assets and resources used in
providing IT services."
QUESTION 14
According to ITIL Best practice, which of the following would NOT be considered a
proper Cost Type?
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QUESTION 15
As the Service Level Manager, you want all parties to make clear agreements on
periodic batch processing, for reports that the IT department is to produce
concerning the XYZ service.
You examine the following service parameters: frequency, simultaneous users, time
completed, method of distributing reports.
QUESTION 16
a) Both head office and the branches. They are the users of the service. It is not
only about hierarchical authority.
b) With the board of management. It wants to be strategically involved. If it
agrees, the rest will have to conform to it too.
c) Only with the head office. It is the owner and determines how the system is to
be. In view of the functional relationship, the working method is imposed on
the branches.
QUESTION 17
The senior management of your organization is concerned about the time, effort and
costs that are required for setting up a Service Catalogue (SC).
In order easily justify the cost and effort of an SC you make the suggestion that the
Service Catalogue be created in conjunction with a Business Impact Analysis (BIA)
due to be performed in a few weeks by Availability Management.
Which of the following statements best justifies the cost and effort of creating a
Service Catalogue in conjunction with a Business Impact Analysis?
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a) It will allow better understanding of the 3rd parties required to keep services
running and therefore ensure a better level of service.
b) Creating the Service Catalogue in conjunction with a BIA ensures that the
most important services to the organization are covered first and therefore the
first SLAs created will be on business critical services.
c) It will foster a better relationship between the ITIL process managers and lead
to better overall service delivery through a better understanding of outside
factors and internal issues of delivering services.
QUESTION 18
The Service Catalogue is finished and has been accepted, and there is a structure
and set-up for SLAs. You have a fair idea of what IT now delivers. Now it is
necessary to conclude SLAs for each service and with each department.
You want to prepare your meetings properly with the departments, in order to
achieve clarity in the Service Level Requirements.
a) You formulate a number of open questions in order to steer the meeting. You
want to leave the customers to talk as much as possible and say what they
think is important.
b) You want concrete agreements, so you prepare a comprehensive list of
detailed questions
c) Everyone has a PC at home and knows quite a bit already about IT. The more
the customer specifies
QUESTION 19
a) None of them are correct – they are not defined in a smart way. You can’t
measure them per time unit
b) 1, 3, 4 are process KPIs; the others are delivery KPIs
c) All of the KPIs are correct
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ITIL Practitioner: Agree and Define
QUESTION 20
QUESTION 21
Mr. Savage wants you to put together a Service Catalogue for the services that the
IT department currently provides.
You start by identifying the services provided by the IT department. For this purpose
you have meetings with the heads of the IT Management departments.
Each of them has his own views on how the services should be described in a
Service Catalogue.
a) Making available and maintaining the PZS application, version 2.1.5, running
on server XYZ under MVS
b) Undertaking service support and delivery processes for the PZS application
and all components on which this application depends
c) Supporting the provision of information for personnel management with the
aid of the automated information system PZS
QUESTION 22
As part of the implementation of Service Level Management, you are asked to create
a clear role definition of the process manager role, as opposed to that of the process
owner.
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ITIL Practitioner: Agree and Define
QUESTION 23
QUESTION 24
Which of the following Key Performance Indicators (KPIs) does not reflect an
improvement in the effectiveness and efficiency of the Agree and Define Processes?
QUESTION 25
In the OLAs with the IT Management departments, you have agreed to the following
escalation procedure when norms are exceeded.
a) Yes
b) C. No, examining reason why the norm is exceeded is the task of the Service
Level Manager, not the IT Management department itself
c) B. No, the IT Management department must warn the Service Level Manager
immediately if there is a danger that a norm will be exceeded
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ITIL Practitioner: Agree and Define
QUESTION 26
QUESTION 27
Which of the following Key Performance Indicators (KPIs) does not reflect an
improvement in the effectiveness and efficiency of the Agree and Define Processes?
QUESTION 28
QUESTION 29
When estimating the costs of budget items it is important to consider all costs
associated to the items in question.
In addition to cost types and cost elements, which additional information should be
used to properly estimate the costs of budget items?
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ITIL Practitioner: Agree and Define
QUESTION 30
You have recently completed a Service Catalogue for the services that IT can
provide and begin with the next step. For each service in the Service Catalogue, you
want to draw up a SLA with the departments who are to use these services. You
know that first you must concentrate first on a general set-up for the structure of the
SLA.
After meeting with your organization it is decided that for the LAN service, it is best to
have an SLA that allows the least amount of duplication from customer to customer
but still enough flexibility for some silos to have some customizations to critical
services. This will make the consistency in the delivery of that service easier to
deliver and measure.
Based on this criteria, which of the following is the correct structure of SLAs to
chose?
QUESTION 31
What would be the most feasible approach to recover the IT Infrastructure costs that
is perceived to be fair, equitable and simple?
QUESTION 32
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ITIL Practitioner: Agree and Define
QUESTION 33
You have finished the Service Level Report for the Basic Workplace service (SLA
concluded with the Board of Management) and are about to distribute it. You send
the report to the secretary of Messrs Duur and Reinaard.
Is this sufficient?
a) No, it is better to put the report on the Intranet. Each user has a workplace
and therefore must be able to view the reports
b) Yes, the report will be discussed in the board meeting, which is also attended
by the Finance, Purchasing, Architecture and Personnel Managers.
c) No, you must send the report to the branch directors at the very least.
QUESTION 34
In the SLAs, you have agreed to produce a report each month on the service levels
realized. Each week you receive from the Technical Management department the
following information about IIS on the mainframe:
Which column is practicable for reporting on the service supplied to the users
concerning the performance and the use of IIS?
QUESTION 35
When cost elements are identified they should be put into classifications. According
to best practice what are the two minimum classifications that should be created for
cost elements once they have been identified?
209
ITIL Practitioner: Agree and Define
QUESTION 36
It appears that there is confusion about the level of support by IT for functional
questions on the Basic Workplace (how do I use Word?). Both the users and the
Functional Management staff become irritated about this and the time agreements
are not met. You decided to start up a number of actions for improvement.
QUESTION 37
You are the sole Service Level Manager and you realize that you are short of time.
Managing the current process in particular is a heavy burden. You hardly have any
time for improvement actions. This is reflected in the service levels that are not met.
QUESTION 38
The service levels for the services to the branches are met each month, but even so
the IT department is given only just a satisfactory score during the annual user
satisfaction survey. This was not what you had expected. You had made clear
agreements, after all.
a) Yes, the Service Desk staff and the users do not speak politely to the users.
This means that while the service levels are good, the feeling is not.
b) No
c) Yes, you must visit the branch managers more often to discuss service levels.
Certain expectations are not expressed.
210
ITIL Practitioner: Agree and Define
QUESTION 39
In the SLA for the email service, the opening times of the service have been set from
Sunday to Friday from 7.00am to 11.00pm. The marketing departments want to
produce a Sunday edition of their magazine in the near future, and therefore ask to
be able to work on Saturdays too. You have to adjust the service and do this by
following these steps:
Step 3: Modify the service in accordance with the desired service levels
Is this correct?
QUESTION 40
The financial approval of an RFC indicates that the cost of a Change has been
assessed and that it meets one of the two criteria. The first is that it meets the cost-
benefit criteria.
211
ITIL Practitioner: Agree and Define
212
ITIL Practitioner: Agree and Define
9 FURTHER READING
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