I T I L v3 – Foundation level

ITIL
- most widely adopted set of guidelines for IT Service Management
- it is an integrated set of best-practice* processes for delivering IT service to customers

“Deliver value to the business”

It is popular because :
- it’s vendor-neutral
- it’s non-prescriptive
- best-practices based on thought leadership

*best practices – is an approach or method that has been provide in practice

ITIL - SERVICE LIFECYCLE

- it is based on ITIL’s core concept SERVICE MANAGEMENT and related concepts “Service” &
“Value”
Service management – providing value to customer in the form of service
Service – delivering value to the customer without the ownership of specific cost or risks
Value – it consists two core components: UTILITY & WARRANTY (U-what customer receives, W-
is hoe it is provided)

Internal and external customers

Internal – people or departments who are part of the same organization as the service provider
External – people who are not employed by the organization, or organizations that are separate legal
entities

Functions and processes

Functions – a team or group of people, with particular expertise, who carry out one or more
processes or activities
Processes - a structured set of activities designed to accomplish a defined objective

• The process owner is responsible for the process results (recommending improvements)
• The process manager is responsible for the realization and structure of the process, and reports
to the process owner
• The process practitioners are responsible for defined activities, and these activities are reported
to the process manager

© 2018 - Created by Tomislav Ćorić, OG Consultancy Services, Đakovo

ORGANIZATION STRUCTURE
Roles
- are sets of responsibilities, activities and authorities granted to a person or team.
RACI – responsible, accountable, consulted, informed
• Responsible – The person or people responsible for correct execution – for getting the job done.
• Accountable – The person who has ownership of quality and the end result. Only one person can
be accountable for each task.
• Consulted – The people who are consulted and whose opinions are sought. They have
involvement through input of knowledge and information.
• Informed – The people who are kept up to date on progress. They receive information about
process execution and quality.

Deming Cycle - 4 P
People, process, products and partners – main machinery of the organization, but they only work
well of the machine is oiled : communication

Formal communication structures :

reporting, meeting, on-line facilities (email, chat...), notice boards

• Process – a process is a structured set of activities designed to accomplish a defined objective

• Project – a project is a temporary organization, with people and other assets required to achieve
an objective
• Program – a program consists of a number of projects and activities that are planned and
managed together to achieve an overall set of related objectives
• Portfolio – a portfolio is a set of projects and/or programs, which are not necessarily related,
brought together for the sake of control, coordination and optimization of the portfolio in its totality.

© 2018 - Created by Tomislav Ćorić, OG Consultancy Services, Đakovo

FIVE STAGES OF LIFECYCLE

SERVICE STRATEGY – strategy of delivering and managing service to the customer and adding
value to customer’s business (Service strategy is the axis of the service lifecycle, that
drives all other stages)

SERVICE DESIGN – here we design and plan our services from strategy plans

SERVICE TRANSITION – ensures that service releases are deployed successfully into supported
environments

SERVICE OPERATION – here service provider coordinates and carries out the activities and
processes required to deliver and manage service at agreed levels to business customers

CONTINUAL SERVICE IMPROVEMENT – describes best practice for achieving growing and
widespread improvements in service quality

SERVICE STRATEGY
5 processes :
Strategy Management for IT Services
Service Portfolio Management
Financial Management for IT services
Demand Management
Business Relationship Management

SERVICE DESIGN
8 processes :
Design Coordination
Service Catalog Management
Service Level Management
Availability Management
Capacity Management
IT Service Continuity Management
Information Security Management
Supplier Management

SERVICE TRANSITION
7 processes :
Transition Planning and Support
Change Management
Change Evaluation
Asset and Configuration Management
Release and Deployment Management
Service Validation and Testing
Knowledge Management

© 2018 - Created by Tomislav Ćorić, OG Consultancy Services, Đakovo

SERVICE OPERATION
5 Processes:
Request Fulfillment
Incident Management
Problem Management
Access Management
Event Management
+
4 Functions:
Service Desk
Technical Management
Application Management
IT Operation Management

CONTINUAL SERVICE IMPROVEMENT (CSI)

3 Processes :
Service Measurement
Service Level Management
7 steps to CSI
Service strategy

© 2018 - Created by Tomislav Ćorić, OG Consultancy Services, Đakovo

KEY CONCEPTS

Service
– is a means of delivering value to customer by facilitating outcome the customer want to achieve,
without the ownership of specific costs or risks
- peace of value that you give to customer where you deal with the cost and risks

Process
– a process is a structured set of activities designed to accomplish a defined objective

Service Management
–set of processes that provide a service (set of processes as a services)

Customer
– is someone who buys goods or services. Who defines and agrees the service level targets

User
– is a person who uses the IT servvice on a day-to-day basis. It can be one or many users In
customer organization

Business case
– includes information about costs, benefits, options, issues, risks and possible problems

Configuration item (CI)

– any component or other service asset that needs to be managed in order to deliver an IT service

Configuration management system (CMS)

– a set of tools, data and information that is used to support service asset and configuration
management. Is a part of service knowledge management system (collecting, storing, managing,
updating, analyzing… It may also include information about incidents, problems, changes, known
problems etc.

Event
– typically require IT operations personnel to take actions

Governance
– ensures that policies and strategy are actually implemented, and that required processes are
currently followed (defining roles, measuring and reporting, taking actions...=

Operation level agreement (OLA)

– an agreement between an IT service provider and another part of the same organization

Service catalog
– a database or structured document with information about all live IT services, including those
available for deployment

Service portfolio
– the complete set of services that is managed by a service provider (include three categories :
service pipeline, service catalog and retired services)

© 2018 - Created by Tomislav Ćorić, OG Consultancy Services, Đakovo

Service design package (SDP)
– document(s) defining all aspects of an IT service and its requirements trough each stage of its
lifecycle

Service knowledge management system (SKMS)

– set of tools and database that is used to manage knowledge, information and data (include
configuration management system and other databases and information systems)

Service level agreement (SLA)

– agreement between an IT service provider and a customer. A single agreement may cover multiple
IT services or customers.

Service types
Core service – deliver the basic outcomes desired by one or more customers
Enabling services – are needed in order for a core service to be delivered
Enhancing services – are added to a core service to make it more exciting to customer

Supplier – a third person responsible for supplying goods or services that are required to delivery IT
services (e.g. commodity hardware and software vendors, network provider, outsourcing…)

Underpinning contact – contract between an IT service and a third party that provides goods or
services that supports delivery of IT service to customer.

Workaround – a measure to reduce or eliminate the impact of an incident or problem for witch a full
resolution is not yet available (documented in known error records)

© 2018 - Created by Tomislav Ćorić, OG Consultancy Services, Đakovo

SERVICE STRATEGY
- delivers guidance with designing, developing and implementing service management as a
strategic asset
- it is a critical in the context of all processes along the ITIL service lifecycle
- mission : develop the capacity to achieve and maintain a strategic advantage

Basic concepts

Mintzberg – 4 P
Perspective, position, plan, pattern

Value creation – combination of the effects of utility and warranty (korisnost i jamstvo)

Resources and capabilities – service assets of a service provider

Service providers – organization that supply services to one or more international or external
customers (internal, shared, external)

Processes and other activities

Strategy management for IT services

– the process responsible for developing and maintaining IT strategies from a business point of
view (the purpose is to articulate how a service provider will enable an organization to achieve its
business outcomes)

Service portfolio management(SPM)

– method to manage all service management investments in therm of business value (main objective
– achieve maximum value creation at the same time managing the risks and costs)

The service portfolio, three subsets of service :

Service catalog – visible part of portfolio, for customer.
Service pipeline – consist of all services that are either under consideration or in development for a
specific market or customer (are applied in production via the service transition stage)
Retired services – services that are phased out or withdrawn

Financial management
– anticipates the essential management information in financial terms that is required for the
guarantee of efficient service delivery (cost optimization strategy, integrated component of service
management)
- ensures that the charges for IT services are transparent

- an organization needs to be decide how it will position the IT department in terms of financial
management, will it be profit or cost center?

Profit center – IT is positioned as a department that charges for the services it provides to the rest of
the organization

© 2018 - Created by Tomislav Ćorić, OG Consultancy Services, Đakovo

Cost center – IT is positioned as a department to witch costs are assigned, but witch does not charge
for service provided

Three main processes : like A B C :)

Accounting, Budgeting, Charging
Accounting – calculated the cost of IT service provision, ensures that the actual spend can be
compared with the predicted spend at any time, account for the money spent in IT services for a
given period
Budgeting – predicts the amount of money required to run IT services for a given period
Charging (it is optional) – the activities concerned with payment for IT services

Demand management
– it aims to understand, anticipate and influence customer demand for services
- the main goal is to predict the purchase of products and to balance the demand with the resources
(offer and demand are harmonized)

Business relationship management

– the process that is responsible for the alignment between services and business needs (helps
identify and understand customer need and to ensure of delivering requested services)
- assisting the customer in understanding the value of services

Governance
- is what defines the common directions, policies and rules that both the business and IT to conduct
business (three activities : Evaluate, Direct, Monitor)

© 2018 - Created by Tomislav Ćorić, OG Consultancy Services, Đakovo

SERVICE DESIGN (1.26)
- blueprint of the service you wish to offer
- deals with the design and development of services and their related processes
- main objective : the design of new or charged services for introduction into a test or production
environment

IN organization :
- well preforming organization can quickly and accurately make the right decisions and execute
them successfully
- it is critical that the roles are clearly defined (roles include : process owner, service design
manager, service catalog manager, service level manager, availability manager, security manager)

Service design – five important aspects :

1.The design of service solutions
2.The design of management information system and tools, especially the service portfolio
3.The design of the architecture
4.The design of processes
5.The design of measurement methods and metrics

Service deliver models :

In-sourcing – internal resources are used
Out-sourcing – engaging an external organizations
Co-sourcing – combination of In-sourcing and Out-sourcing in witch various out-sourcing
organization work cooperatively throughout the service lifecycle
Multi-sourcing (or partnership) – multiple organization make formal agreements with the focus on
strategic partnership
Business process outsourcing (BPO) – an external organization provides and manages another
organization’s business processes in another location
Application service provision – computer-based services are offered to the customer over a network
Knowledge process outsourcing (KPO) – provides domain-based processes and business expertise

Service design processes

Design coordination
– supports the entire design stage by providing a single comprehensive coordination process for all
activities in the service design stage

Service catalog management (SCM)

– the goal of SCM is the development and maintenance of a service catalog that includes accurate
details of all services

Service portfolio
– contains information about each service and its status (active and inactive in the various stages of
lifecycle)
Service catalog – is a subset of the service portfolio and only consists of active and approved
services in service operation

© 2018 - Created by Tomislav Ćorić, OG Consultancy Services, Đakovo

Service level management (SLM)
– the goal of SLM is to ensure that the levels of IT service delivery are documented, agreed and
achieved, for both existing services and future services in accordance with the agreed targets

Optional level agreement (OLA) – agreement between an IT service provider and another part of
the same organization
Under-planning contract (UC) – contract with the third party, in support of the delivery of an
agreed IT service to a customer

Availability management
– the goal is to ensure that the availability level of both new and changed services corresponds with
the levels as agreed with the customer

Metrics for measuring availability include :

Mean time between failures (MTBF)
Mean time between service incidents (MTBSI)
Mean time to repair (MTTR)

Two inter-connected levels:

Component availability – this involves all aspects of component availability and unavailibility
Service availability – this involves all aspects of service availability an unavailability and the
impact of component availability

RELIABILITY – of service or component indicates how long it can preform its agreed function
without interruption
MAINTAINABILITY – of service or component indicates how fast it can be restored after failures
SERVICEABILITY – ability of a third party supplier to meet the terms of their contract, which
includes agreed level of reliability, maintainability or availability

Capacity management
– the goal of capacity management is to ensure that the capacity corresponds to both the existing
and future needs of the customer

CAPACITY MANAGEMENT INFORMATION SYSTEM (CMIS) -provides relevant

information on the capacity and performance of services in order to support the capacity
management process

Three sub-processes (they all analyzed the information stored in the CMIS) :
Business capacity management – translate the customer’s requirements into specifications for the
service and IT infrastructure
Service capacity management – identifies and understands the IT services to make them comply
with the defined targets
Component capacity management (CCM) – managers, controls and predicts the performance, use
and capacity of individual IT components

IT service continuity management (ITCM)

– the goal is to support business continuity by ensuring that the required IT facilities can be restored
within the agreed time

© 2018 - Created by Tomislav Ćorić, OG Consultancy Services, Đakovo

The process consists of four stages :
1.Initiation
2.Requirements of strategy
3.Implementation
4.Ongoing operation

Information security management

– the goal is to ensure that the information security policy meets the organization’s overall security
policy

Information security policy – needs to be considered with the overall corporate security framework
and should be supported by top management
Information security management system (ISMS) – represents the basis for cost-effective
development of an information security program that supports the business objectives

Various measures can be taken :

Preventive – prevent effects
Reductive – limit effects
Detective – detect effects
Repressive -suppress effects
Corrective – repair effects

Supplier management
– the goal is to manage all suppliers and contracts in order to support the delivery of services to the
customer

Categorization of suppliers :
Strategic – significant partnering relationship that involve sharing confidential strategic information
facilitate long-term plans (managed by senior management)
Tactical – relationships involving significant commercial activity and business interaction (managed
by middle management)
Operational – for suppliers of operational products or services (junior operational management)
Commodity – for suppliers providing low-value and/or readily available products and services,
witch could be alternatively sourced relatively easily

© 2018 - Created by Tomislav Ćorić, OG Consultancy Services, Đakovo

SERVICE TRANSITION (ST)
- service transition consists of the management and coordination of the processes, system and
functions required for the building, testing and deployment of new and changed services
- it establishes the services as specified in the service design stage, based on the
customer/stakeholder requirements

IN Organization :
- Service transition is actively managed by a service transition manager
- the service transition manager is responsible for the daily management and control of the service
transition teams and their activities

Service transition processes :

Transition planning and support

- ensures the planning and coordination of resources in order to realize the specification of the
service design
Service design package (SDP) – *see in Key Concepts

Three types of release can be defined :

Major release – important deployment of new hardware and software
Minor releases – contain a number of smaller improvements
Emergency release – implemented as a temporary solution for a problem or know error

Change management
– ensures that changes are implemented in a controlled manner (evaluated, prioritized, planned,
tested…)
Request for change (RFC) – is a formal request to change one or more configuration items(CI)
Change advisory board (CAB) – is a consultative body that regularly meets to help the change
manager prioritize and schedule the changes
Post-implementation review (PIR) – should be carried out to determine if the change was successful
and to identify opportunities for implement

Change evaluation
– aimed at ensuring that each important point in the lifecycle of significant change is properly
evaluated
Change evaluation report (CER) – contains a risk profile, a deviations report, a qualification and
validation statement and a recommendation

Service assets and configuration management (SACM)

– manages the service assets and configuration items(CI) in order to support the other service
management processes

Configuration management (CM) – ensures that CI-s are provided with a baseline and that they are
maintained
Configuration Item – is any component or other service asset that is managed in order to deliver an
IT service
Service assets – is any resource or capability of a service provider
Attribute – is a piece of information about CI (e.g. version number, name, location et.)

© 2018 - Created by Tomislav Ćorić, OG Consultancy Services, Đakovo

Configuration structure – shows the relations and hierarchy between CS that comprise a
configuration
Snapshot (“moment in time”, “footprint”) - is the state of a configuration at a certain point in time
Configuration record – contains details of a CI
Configuration management database (CMDB) – is a database used to store configuration records of
CI-s 2018
Defined media library (DML) – is a secure store where the definitive, authorized version of all
media CI-s are stored and monitored
Define spares – are the spare components and assemblies that are maintained at the same level as
the comparative system within the live environment
Software asset management (SAM) – is the process responsible for tracking and reporting the use
and ownership of software assets throughout their lifecycle (it is a part of SACM)

Release and deployment management

– aimed at the building, testing and deploying of the services specified in the service design and
ensures that the client can utilize the service effectively
Release – is one ore more changes to an IT service that are built, tested and deployed together
Release unit – is a part of service or infrastructure that is included in a releases
Release package – is a single release unit or collection of release units that will be built, tested and
deployed together as a single release
V model – convenient tool for mapping out the different configuration levels at witch building and
testing must take place

Service validation and testing

- tests endure that the new or changed services are “fit for purpose” and “fit for use”
- main goal is to ensure the delivery og the added value that is agreed and expected

Service model – describes the structure and dynamics of a service provided by service operation
Test strategy – defines the entire testing approach and the allocation of required resources
Test model – consist of a test plan, the object to be tested and test scripts witch indicate the method
by witch each element must be tested
Service design package (SDP) – defines entry and exit criteria for all test perspectives
Fit for purpose – service does what the client expects of it, so that the service supports the business
Fit for use – addresses such aspects as availability, continuity, capacity and security of the service

Knowledge management
-improves the quality of decision-making by ensuring that reliable and safe information is available
during the service lifecycle
- often is visualized using the DIKW (Data-Information-Knowledge-Wisdom)

© 2018 - Created by Tomislav Ćorić, OG Consultancy Services, Đakovo

SERVICE OPERATION (SO)
- is responsible for the fulfillment of processes that optimized the service cost and quality the
service management lifecycle

Service operation processes :

Request fulfillment
– the process of dealing with service requests from the users, providing a request channel,
information, and fulfillment of the request

Incident management
– focuses on restoring failures of the service as quickly as possible for customers, with a minimal
impact on the business
Incident elements that should be taken into account :
Timescale
Incident models
Impact
Urgency
Priory
Major Incidents

Problem management
– includes all activities needed for a diagnostic of the underlying cause of incidents

Root cause – is the fault in the service component that made the incident occur
Workaround – is a way of reducing or eliminating the impact of an incident or problem for witch a
full resolution is not yet available
Known error – is a problem that has a documented root cause and workaround
Known error database (KEDB) – register for errors that occur in the business

Access management
– the process of allowing authorized users access to a service, while access of unauthorized users is
prevented
Basic concepts :
Access
Identify
Rights
Services or service groups
Directory services

Event management
– surveys all events that occur in the IT infrastructure in order to monitor the regular performance

© 2018 - Created by Tomislav Ćorić, OG Consultancy Services, Đakovo

IT Operations
-is focused on delivering the service as agreed with the customer, the service provider will first have
to manage the tehnical infrastructure that is used to delivery to services

Operation bridge – is a central point of coordination that manages various events and routine
operation activities. It brings together all vital observation points in the IT infrastructure and
combines many activities (console management, event handling, first line network management and
support)

Job Scheduling – IT operations execute standard routines, queries or reports

Backup and restore – is a component of good continuity planning

© 2018 - Created by Tomislav Ćorić, OG Consultancy Services, Đakovo

CONTINUAL SERVICE IMPROVEMENT (CSI)

- IT departments must continually improve their services in order to remain appealing to the
business
- in this stage, measuring and analyzing are essential in identifying the services that are profitable
and those that need improvement
- it can be applied throughout the entire service lifecicle, in all stages

Deaming step-by-step improvement Cycle (approach) : 4 P

Plan -Do -Check -Act

CSI uses the PDCA cycle in two areas :

Implementation of CSI – PLAN, implement (DO), monitor, measure,and evaluate (CHECK) and
adjust(ACT)
Continual improvement of service and processes – this area focuses on the CHECK and ACT stage,
with few activities in the PLAN and DO stage, such as setting goals

Service measurement is crucial element of each improvement initiative

Three type of metric measures in CSI :
Technology metrics – performance and availability of components and applications
Process metrics – performance of service management processes
Service metrics – end service results, measured by component metrics

Define critical success factors (CDF) – elements essential for achiving the business mission

Seven-step improvement process :

- describes how to measure and report on service improvements

Step 1 : Identify the strategy for improvement – must be follow by vision and precede the
assessment of the current situation
Step 2 : Define what you will measure – this step follows from phase 3 of the CSI approach
Step 3 : Gather the data (measure) – it must perform measurement from its vision, mission, goals
and objectives
Step 4 : Process the data – the processing of the data is to determine the right presentation format
appropriate to each audience
Step 5 : Analyze the information and data
Step 6 : Present and use information – the stakeholder is informed whether the goals have been
achieved (it is a still phase 5)
Step 7 : Implement improvement – create improvements, establish a new baseline and start the cycle
from step 1

- this process is closely aligned to the PDCA Cycle and the CSI approach, witch should result a
service improvement plan (SIP)

It is aligned as follows :
Plan = step 1 and 2
Check = step 3 and 4
Do = step 5 and 6
Act = step 7

© 2018 - Created by Tomislav Ćorić, OG Consultancy Services, Đakovo

Various methods and techniques to check whether planned improvements actually produce
measurable improvements :

Effort and cost – improvement initiatives require a business case to consider their cost-effectiveness

Return of investment (ROI) – measuring the result of the cost spent on improvement

Implementation review and evaluation – evaluates whether the improvements procedure the desired
effects

Assessments – compares the performance of a process or organization against a performance

standard, such as an SLA or a maturity standard

Benchmarking – a specific type of assessment: organization compare their processes with the
performance of the same types of processes that are commonly recognized as “best practice”

Gap analysis – determines where the organization is now and the size of the gap with where it was
to be

Balanced scorecard – includes four different perspectives on organization performance : customer,

internal processes, learning and growth, financial

SWOT – looks at the strengths, weaknesses, opportunities and threats of the organization or
components

Rummler-Brache swim-lane diagram – visualizes the relationship between processes and

organizations or departments with “swim lane”

- in most cases, one method or technique is not enough: try to find best mix for your organizations

© 2018 - Created by Tomislav Ćorić, OG Consultancy Services, Đakovo