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IT Service Management
Reference Model
PROCESS GUIDE
Process: Service Planning

Business - IT Alignment Operations Bridge
Service Level Service

Service
Management Planning
Planning
Availability Capacity Cost

Management Management Management
Service Design & Management Service Development & Deployment
Process Definition
The Service Planning process defines, tracks, and controls standard services comprising a complementary
service portfolio which address IT added value and are anticipated to be leveraged across multiple customers.
q “Defines” means developing service plans and designs to satisfy market requirements, to address IT
service portfolio gaps, and to ensure that service direction has been established for all phases (e.g.,
development, deployment, ongoing delivery, and obsolescence) of the service lifecycle. Examples of
these plans and designs include:
q Service Portfolio catalogs for each service the specific contributions to identified market
segment value propositions, its current status and plans for what capabilities are committed to
be developed in the short term, and the projected customer base and revenues which justify the
service development and support investment
q External Design Specification describes the scope and functional requirements of the service
adequately to make the “buy versus build” decision: its service functions and components,
inputs, outputs, and customer deliverables, standard service levels and associated standard
pricing
q Internal Design Specification designs in detail how overall services, specific service functions,
and individual hardware and software components are to be either manufactured in-house or
procured from product/service suppliers and how they will be deployed in the customer’s
production environment
q “Tracks” means ongoing monitoring of aggregated (cross-customer) service performance data and
evaluation of this data against specified service objectives and measures to ensure that service
performance is within pre-defined control limits.
q “Controls” means adjusting plans and designs as guided by external market analysis or by internal
service quality control efforts, and the development of action plans and RFCs to guide continuous
improvement of overall service performance against its objectives and measures, with the ongoing focus
of narrowing the control limits.
© Hewlett-Packard Version: 12 May 1998 Page 1 of 52

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PROCESS GUIDE
Value to IT
Increases market share
q By tailoring service design to anticipate market needs, customers will select services offered by IT as
opposed to other alternatives.
q Provides a robust complementary service portfolio which appeals to more customers with different
business needs.
Provides IT direction and focus
q Identifies how IT will fulfill its value proposition for each market segment.
q Develops cohesive service development plans which provide clear description of how IT will meet the
needs of the business for a specific planning horizon, consolidating IT strategy, current delivery
capabilities, and design targets from the market analysis.
q Specifies clearly the service “what and how”:
q functional design (External Design Specification) that identifies specifically what needs to be
developed or procured for a service
q manufacturing and procurement specifications (Internal Design Specification) that detail how a
service, its service functions and components need to be developed or procured and deployed
(specific process, technology, and people capabilities)
q Determines appropriate pricing based on IT goals (either as a cost center or a profit center) and market
analysis (to achieve competitive, value-based pricing, at a price the customer is willing to pay).
Decreases operational cost
q Avoids non-value-added expenditures not related to the standard service development strategy,
focusing efforts where the greatest payback is.
q Minimizes the effort expended outside of plans by ensuring that resources are focused on formal,
leverageable (across customers and services) development activities, leading to cost-effective service
development and implementation.
Decreases time to market
q Determines which services need to be available to customers when, and plans for service availability
within acceptable timeframes.
Increases service quality
q Conducts continuous standard service improvement by identifying gaps in services as areas where
improvement projects can be targeted. Targeted improvement projects bring service consistency and
improved service quality, benefits which can be leveraged across all customers.
Process Activities
Process Delivery
q Plan for new standard service

Review new service investment decisions made by IT management. Sketch a high level definition of
each service - what benefits, objectives, and deliverables each proposes to deliver, how they contribute
to the identified market segment value propositions, and what projected customer base and revenues
justify the service development and support. Project what service capabilities and infrastructure may
need to be developed (either built in-house, through partnering, or through infrastructure or service
provision acquisitions) in what timeframes to support the service. For each service, ensure it addresses
the complete strategic solution for the full business problem that customers are facing as opposed to

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being a point solution. Ensure that the new services fit within the overall service portfolio and delivery
architecture, and adjust accordingly.
q Conduct service risk analysis
Understand, document, and evaluate the risks associated with developing/modifying and delivering each
service and with the portfolio as a whole. Compare and contrast identified risks with potential benefits.
Revisit the risk analysis periodically to determine whether or not the risks are acceptable as the service
planning progresses.
q Define functional requirements
Document specific service functionality, objectives, and characteristics to meet the service requirements
anticipated for multiple customers in an external design specification. Define and price a finite set of
service levels (led by the Service Level Manager in this process) for standard services by selecting
combinations of service parameter (e.g., turnaround time, availability percentage, performance
threshold) values that address target segment needs. Refine service demand projections detailed in the
service portfolio and split them out by service level, projected over time (e.g., look at the projected
quantity and size of customers, etc. as it might be segmented by service level). Define detailed
specifications (e.g., description of characteristics, visual mock-ups, etc.) of the deliverables produced by
the service for the customer, and define the necessary inputs and outputs between major functional
components within the service to guide the "buy vs. build" decision.
q Analyze capability gaps
Determine and document what IT can deliver now against the specified functional requirements for the
planned service. For example, the infrastructure may already exist to support the new service.
Compare current IT delivery capabilities with proposed service delivery capability needs to determine
what areas need attention.
q Make service buy vs. build decision
Review the functional requirements for a planned service documented in the external design
specification. Ensure that design feedback from Availability, Capacity, and Cost Management gets
incorporated into the external design specification to reflect functional requirement refinements and
additions in their respective areas of expertise. Accept or reject recommendations from Availability
Management and Capacity Management based on whether specific service functions or components
would be better quality and/or less expensive if supplied by product/service suppliers, and which service
functions or components are strategic core competencies that should be developed and delivered in-
house by IT. For "buy" service functions/components, clearly define in the external design specifications
the functional requirements, the hand-offs (inputs/outputs) between IT and supplier processes, the
customer deliverables (quality and quantity) expected, and delivery metrics which the supplier is
expected to meet in order to ensure that IT meets its overall service level objectives to the customer.
Then, clearly define procurement specifications and instructions in the Internal Design Specification for
Service Development and Deployment processes to follow on an ongoing basis. For "build" functions,
the Internal Design Specification describes in detail how these service functions/components are to be
built and deployed.
q Determine ROI on service development
Perform a high-level assessment of the potential development and delivery cost and selling price for the
proposed service (whether new service or modifications to existing services) per service level. Make
projections as to the volume of demand anticipated by current and potential customers (assisted by
Capacity Management and Business Assessment) at each of the defined service levels over a
designated time period. Determine whether the investment will be offset by anticipated demand. This
assessment can be used to make a decision as to whether or how to proceed with further service design
and development (e.g., resource allocation, approach to how and what delivered, etc.).

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q Create Internal Design Specification
Develop detailed design describing how the service functions/components are to be manufactured within
IT or procured by product/service suppliers and how they will be deployed, including:
q service function/component descriptions and requirements
q service data attributes and relationships definition, data structure definitions, data flow
requirements between functions
q delivery process functional design
q enabling technology specifications (functional requirements)
q service/function roles and responsibilities, organizational change requirements, skill
development requirements, staffing requirements, training strategy
q control points or checkpoints and thresholds which need to be put in place
q requirements specification of support guidelines, reference materials, troubleshooting guides,
etc. for support of the service
q deployment requirements, guidelines, constraints
q procurement specifications for service functions/components which are purchased from a
product/service supplier
q Develop strategic alliances
Establish formal partnering agreements with strategic partners to support the entire installed customer
base to ensure the stability and availability of capabilities which complement those provided in-house.
Decide when and how to engage with partners, suppliers, competitors, service providers. Establish
clear responsibilities, handoffs, and modes of interaction, etc. Understand the capabilities needed
across multiple services that require partnerships and choose the general scheme for working with
partners (e.g., integration partners needed worldwide, suppliers must have off-hours support capabilities,
service providers will be located at three centers of expertise, etc.).
q Evaluate portfolio impacts
As services change, determine the impact of their contributions to the fulfillment of IT’s overall value
proposition, and what service positioning changes might need to be made to the changed service or
services which are impacted by the change.
q Update service positioning
To strengthen/align the overall service portfolio value proposition, update individual service positioning
(e.g., obsolete the service, give it greater prominence, transform it into a cash cow by "freezing"
investment, etc.) as necessary and the associated development/support plans in the portfolio
accordingly.
q Keep service current
Triggered by the service review cycle, evaluate the service up for review for potential improvements
which need to be made based on data analysis results from continuous service improvement efforts,
changing business needs, productivity needs and cost management goals of the overall installed base,
as well as on new technology developments and market trends. Develop action plans as necessary and
initiate improvement projects by submitting an RFC.
q Manage service value
Ensure that the service being delivered demonstrates sufficient worth to the customer to justify the price
being charged for that service. When a service no longer delivers value, it is time to evaluate it for
modification or obsolescence.
q Obsolete service
Develop a plan to phase the service out for current customers as contracts are renewed (include
migration planning). De-activate the selling capability for the service by ensuring the removal of service
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details from the service portfolio and marketing material. Analyze the impact of obsoleting the service
on other services in the portfolio, and make modifications to investment plans for these services as
necessary.
Quality Control
q Develop management reports

Report to IT management how this process is contributing to overall service management. Consolidate
metrics data for use as indicators in determining process improvement opportunities, usually on a
periodic basis to ensure that the process is both effective and efficient. Some of the metrics suggested
are:
q actual service design progress versus projected service design timeline
q service completion date versus projected completion date (how well did it meet projected
window of opportunity)
q actual service revenue versus projected revenue
q over time, does the service revenue recoup its original development investment
q how many external design and internal design specifications need to be reworked
q how long it takes to do the external design specifications
q how long it takes to do the internal design specifications (including the design consolidation
activity)
q how many staff-hours it takes to aggregate data and track the end-to-end service performance
q how closely service planning activities are adhering to cost guidelines
Process Relationships
*Examples of Documents :
Configuration Outputs
IT Strategy Customer q Service Portfolio
Development
Business Assessment
Management
Management
q External Design Specification
q Internal Design Specification
q Service Reports
Documents* Inputs
Service
Performance
q IT Architecture
IT Service Market Service

Data CI Attributes
Strategy Portfolio Analysis Portfolio
&DOHQGDU and Trigger
Service External Cost
Portfolio Relationships
Reports Design Data Input (toward process)
Review Specification Output (away from process)
Cycle
Service RFC
Review
Workorder Change
Cycle Service Planning Management
Workorder Status
External
Service Level Design
Management Internal
Specification
Design Design
Capacity Design Cost Specification
Availability Feedback Analysis Feedback Analysis Design
Analysis
Availability Capacity Feedback External Build & Test
Designs External Internal Design External Design
and Plans Design Design and Design Service Specification
Specification Specification Plan Specification Budget
Availability Capacity Cost


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This is a summarized view of the data flow relationships between SERVICE PLANNING and other Reference Model
processes. These relationships can be described as follows:
q Service planning – In response to a "new service" request originating in IT STRATEGY DEVELOPMENT
(via a Workorder from Change Management), use the IT business plan and road map (IT Strategy), and
service demand projections and target segment characterization (Marketing Analysis) to update the
Service Portfolio (e.g., with new capability development project plans and the projected revenues which
are expected to finance them). Refer to the service delivery model (IT Architecture) in the CMDB as
needed to understand new strategic service delivery capability directives and policies which might need
to guide the development of this service. Provide the updated Service Portfolio to CUSTOMER
MANAGEMENT to aid in the selling process, and to BUSINESS ASSESSMENT to ensure that current and
planned capabilities are plugged appropriately into the market analysis/service recommendations
activity. The updated Service Portfolio is stored as a Document in the CMDB for reference by other
processes.
q Service design – The External Design Specification is developed based on customer demand and
financial projections (Service Portfolio), as well as on existing capabilities (CI Attributes and
Relationships) and newly planned (Service Portfolio) functions and infrastructure components.
AVAILABILITY MANAGEMENT and CAPACITY MANAGEMENT use the External Design Specification to develop
"buy vs. build" recommendations for services, service functions, and components related to their
respective areas of expertise (Availability Designs and Plans, Capacity Design and Plan). SERVICE
PLANNING accepts or rejects these recommendations.
COST MANAGEMENT determines overall service costing requirements (accommodating Availability and
Capacity Designs and Plans) and, using revenue estimates based on standard service level pricing and
service level demand projections (detailed in the External Design Specification), develops a Service
Budget. SERVICE PLANNING uses the service costing information received from COST MANAGEMENT to
validate the premise that the standard service level pricing will cover the projected delivery and support
costs.
Adjustments to the External Design Specification are made based on Design Feedback from
AVAILABILITY MANAGEMENT, CAPACITY MANAGEMENT, and COST MANAGEMENT. Their designs and plans
are then incorporated by SERVICE PLANNING into an overall Internal Design Specification, detailing how
the service, service functions and components will be obtained/developed and deployed to support the
overall service plan. New standard service, service function, and component CI Attributes and
Relationships are entered into the CMDB throughout the design process. The refined External Design
Specification is provided to CUSTOMER MANAGEMENT, in order to develop service marketing and selling
collateral, and SERVICE LEVEL MANAGEMENT, in order to develop a standard Service Level Agreement
template to use as a baseline in customer negotiations for this standard service.
q Service monitoring - Triggered by a regular Service Review Cycle, SERVICE PLANNING reviews service
performance data as well as in-depth Availability, Capacity, and Cost Analyses (data is aggregated
across all customers for each service). Service performance data is evaluated for trends that threaten
current or future ability of IT to meet standard design specifications. Any adjustments that need to be
made are determined based on this information (see the following Service changes relationship
description). Service Reports are developed and provided to BUSINESS ASSESSMENT to ensure that
current IT capability, performance, and cost information is continuously factored into the market analysis
and planning effort.
q Service changes – A service change project is initiated either "reactively" in response to a Workorder to
change a service (e.g., reflecting a strategic shift from IT Strategy Development, service enhancement
request from service provider, significant customer feedback, etc.), or "proactively" based on detected
need for service adjustment triggered by continuous service improvement monitoring and analysis. An
RFC is submitted to manage both the design change effort and the development and deployment of
service changes. An evaluation of the impact of the change to the Service Portfolio is performed
(consulting any existing service/function/component relationships via CI Attributes and Relationships
contained in the CMDB), and updates are made as appropriate (stored as a CMDB document). Designs
(External and Internal Design Specifications) for existing services are also updated (stored as CMDB
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documents), as well as are any relevant standard service CI Attributes and Relationships associated
with the designs.
q Portfolio management - Triggered by a regular Portfolio Review Cycle, SERVICE PLANNING reviews
existing services within the Service Portfolio for ongoing value and fit, and makes updates as needed.
SERVICE PLANNING provides the updated Service Portfolio to CUSTOMER MANAGEMENT to aid in the selling
process, and to Business Assessment to ensure that current and planned capabilities are plugged
appropriately into the market analysis/service recommendations activity.
q IT cost tracking – SERVICE PLANNING regularly records Cost Data in the CMDB to track process costs
(e.g., labor, material, service planning, service design, portfolio management costs, etc.) in supporting the
IT service planning and design function. This overhead cost is allocated to service customers and
included in their regular service invoice in order to ensure IT cost recovery.
Inputs
Availability Analysis
Definition
Service performance analysis relating to availability, contingency planning and execution, and
security and based on data aggregated by each service across all customers is referred to as
Availability Analysis. Includes the following types of analysis:
q Uptime Analysis: Evaluation of incident history regarding the duration and frequency of
downtime in a given time period (and the fluctuations over that time period in both duration
and frequency); summarizing the performance against availability metrics; and making
recommendations as to service improvement actions which should be taken from the
availability perspective. Some sample metrics which might be analyzed:
q Minimum availability ratio as percentage over a period of one month
q Maximum number of failures per month
q Mean time between failures (reliability) over the last month
q Mean time to repair over the last month
q Maximum downtime per incident
q Average availability ratio as a moving average over the last quarter
q Duration of periods of downtime (e.g., availability ratio, mean time to repair)
q Standard deviation of failure rate
q Standard deviation of time to repair
q Security Analysis: Regular determination and evaluation of predefined security exposures
as detected from a security monitoring tool, and actions taken to address these
vulnerabilities (virus innoculations, etc.).
On an annual basis, the following would also be included in the Availability Analysis:
q Contingency Planning Rehearsal Analysis: Tests of the contingency plan are carried out to
ensure plan currency and workability, and to test the preparedness of the staff for carrying
out this type of contingency. The contingency rehearsal analysis evaluates and documents
the results of these tests. The results are evaluated against pre-defined criteria such as the
length of time to restore service, how many problems encountered and of what severity, etc.
Recommendations are made regarding changes to the plan, additional staff training, etc.

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Data Flow Overview
Configuration
& DOHQGDU Management
2. Service
Performance
1. Service Data
Review
Cycle
Availability
Management
3.
Availability
Configuration
Analysis Management
4. RFC
Service
Planning
Business
Assessment
4. Service
Change Reports Configuration
Management Management
4. RFC
Change
Management
Explanation
Triggered by the service review cycle (#1 in the diagram above), AVAILABILITY MANAGEMENT pulls
service performance data (#2 above) relating to availability, security, and contingency planning and
execution, aggregated by each service across all customers. With this data A VAILABILITY
MANAGEMENT performs availability analysis (#3 above), and delivers the results to SERVICE
PLANNING, as well as storing it in the CMDB to be referenceable by all other processes. An RFC (#4
above) may be logged to CHANGE MANAGEMENT If it is determined that changes to the service need
to be made from an availability perspective as a result of analyzing the service performance data.
SERVICE PLANNING uses the analysis to determine whether any service adjustments need to be
made, and if so, submits an RFC (#4 above) to CHANGE MANAGEMENT. SERVICE PLANNING uses the
analysis, also, to generate service reports (#4 above), which are given to BUSINESS ASSESSMENT, in
order to communicate current service status and capabilities. The service report (#4 above) is also
submitted to the CMDB, so that it can be referenceable by all processes.
Availability Designs and Plans

Definition
The group of documents representing the details of service availability: 1) how we define whether
the service is up or down, 2) tradeoffs in terms of the cost of keeping the service up versus the risk
of having the service down, 3) the “how” of managing the uptime, 4) how the functionality of service
availability is to be developed and implemented. The designs detail what should be developed or
purchased to support identified availability requirements. The plans define the timeframe within
which (and how) each of the design components is to be developed/purchased, how performance
will be tracked and evaluated, and how to submit service availability improvement recommendations
through the CHANGE MANAGEMENT mechanism. Considerations in this detail include:
q Component and service function requirements and descriptions
q Relationships between components and between service functions (e.g., inputs, outputs)
q Logic/algorithms
q Data structure definitions
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q Enabling technology specifications (including fit within the architecture, tools)
q Organizational implications and changes needed (including roles and responsibilities, skill
development opportunities, new staffing needs)
q Cost impact of implementing availability portions of the design
q Capacity impact of implementing availability portions of the design
q Risk assessment as it applies to availability, security, and contingency planning
q Delivery performance requirements
q Supplier performance requirements
q Metrics (including definition of data collection mechanism)
q Service availability review and improvement procedures
q Buy vs. build recommendations, from an availability perspective, for components and service
functions
Included in Availability Designs and Plans:
q Contingency Design and Plan - Guidance on the measures needed to ensure continued
business continuity (or at least to minimize interruption of services) in the case of a
protracted loss of IT systems. The contingency plan should include
q administrative information on how and when to invoke the plan, the action plans to be
invoked, who is involved, and where the emergency control center is located
q information regarding the IT infrastructure which comprise the replacement system
and/or reorder process, and any details of contracts or agreements entered into in
support of recovery and reorder
q instructions required to enable an IT facility to recommence operations following an
emergency, including any SLA requirements relaxation that apply during a contingency
q contingency site details, such as facilities, security, transport arrangements, personnel
who are to transfer there
q fire and bomb instructions at the home site; information on remote storage and the items
stored there
q dependencies which influence how return to normal can be achieved, and where
possible how this is to be done
q Security Design and Plan - Management and technical policies, IT infrastructure and
process design and plans to ensure a justifiably (recognizing tradeoff between cost and level
of protection) secure IT service. The plan should include justifiable countermeasures to be
put in place to ensure continued IT service within secure parameters (confidentiality,
integrity). The following security considerations must, amongst others, be addressed:
q Security process definition – the flow through which identification is entered, credentials
are authenticated, client issues request, authorization occurs, and data server returns
results
q Authentication models (e.g., 1) third-party trusted host, where authentication is mediated
by a trusted authentication agent every time authentication occurs, or 2) public key,
certificate-based, where a trusted certification authority issues certificates to parties who
can exchange them without further involvement of the certification authority.)
q Authorization types (e.g., centralized, operating system, database, application-level,
based on access control list)
q Selection of security access methodology (e.g., secure single sign-on, which enables
users to log in once from anywhere and gain access to all resources, administrators to
manage all security-related activities from a single point, and the enterprise to keep
auditable and non-repudiable records on all transactions)
q Threats and defenses – specific defenses selected to meet specific threats (e.g.,
masqueradingÈauthentication, eavesdroppingÈencryption, address
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spoofingÈfirewalls, data diddlingÈencrypted message digest, replay attackÈtime-
stamping or sequence numbering, man-in-the-middle attackÈdigital
certificates/signatures, denial of serviceÈservice filtering, etc.)
q Encryption method – Symmetric/secret key or asymmetric/private key
q Firewall architecture – A barrier between the enterprise and the internet that controls
access to and from the internet. Select appropriate type: packet filter, circuit gateway,
application gateway, trusted gateway.
q Selection of secure internet protocols (e.g., IPSEC, PCT, S-HTTP, S/MIME, SKIP, SSL)
q Application development policies enforcing the use of security infrastructure services in
the development of all existing and future applications
q Auditing methodology and frequency (e.g., policy or off-line auditing, event detection real
time auditing, attack simulation or scanners)
q Recoverability of services within secure parameters (i.e., business resumption without
contravening IT Security Policy)
q SLA/OLA development guidelines to ensure that they are drawn up according to the
security doctrine
q Access restriction for product/service suppliers within clearly identifiable parameters
q Ensuring availability of data only to authorized personnel at agreed times as specified in
service level agreements
q Security Risk Analysis - Documented identification and evaluation of risks calculated from
the assessed values of assets and the assessed levels of threats to / vulnerabilities of those
assets. Included in the analysis are countermeasures (with a corresponding justification of
associated expenditures) for the identified risks.
Data Flow Overview
IT Strategy
Development
2. IT
Architecture
Service
Planning 2. External
Design
Specification
Availability
Management
3. Availability Configuration
Designs Management
1. Workorder and Capacity
Management
Plans Cost
Configuration 4. Capacity Design and Plan
Management
Management
Service
Planning
5. Internal
Design Configuration
Specification Management
Build & Test
Availability
Management

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PROCESS GUIDE
Explanation
Triggered by a workorder for a new or updated service (#1 in the diagram above), AVAILABILITY
MANAGEMENT uses the external design specification from SERVICE PLANNING and the IT architecture’s
security policies from IT STRATEGY DEVELOPMENT (#2 above), and develops availability designs and
plans (#3 above) including availability, contingency planning, and security considerations. CAPACITY
MANAGEMENT and COST MANAGEMENT incorporate the requirements from these designs and plans
into their capacity design and plan and service budget (#4 above), respectively, which are used by
SERVICE PLANNING, along with the availability designs and plans, to create an internal design
specification (#5 above). The internal design specification is passed to BUILD & TEST for
manufacturing and to CONFIGURATION MANAGEMENT as a document to be referenceable by all
processes. Availability designs and plans are also stored in the CMDB as a document
referenceable to all processes (#3 above).
Capacity Analysis
Definition
Capacity Analysis involves the evaluation of performance, utilization, and capacity trend data
aggregated by each service across all customers; summarizing the performance against capacity
metrics; and making recommendations as to service improvement actions which should be taken
from the capacity perspective. Sample analysis areas include:
q CPU usage by application, by workload
q Relative resource consumption by workload
q Minimum/maximum transactions per second
q Online response trends
q Batch turnaround times
q Disk space usage trends
q CPU and I/O trend analysis
q Average, minimum, and maximum CPU, channel, controller, and device utilization
percentages
q Average, minimum, and maximum memory usage percentages (including paging and
swapping rates)
q Staff loading (e.g., number of servers per system administrator, number of calls per first-
level support, number of administrative changes per week, etc.)
q User workload (e.g., number of users using a particular service)

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Data Flow Overview
Configuration
& DOHQGDU Management
2. Service
Performance
1. Service Data
Review
Cycle
Capacity
Management
3. Capacity
Configuration
Analysis Management
4. RFC Service
Planning Business
Assessment
4. Service Configuration
Reports Management
Change
Management 4. RFC
Change
Management
Explanation
Triggered by the service review cycle (#1 in the diagram above), CAPACITY MANAGEMENT queries the
CMDB for performance, utilization, and capacity service performance data (#2 above), aggregated
by each service across all customers. With this data CAPACITY MANAGEMENT performs capacity
analysis (#3 above), and delivers the results to S ERVICE PLANNING, as well as storing them in the
CMDB as a document referenceable by other processes. Additionally, if it is determined that a
service change related to capacity needs to be made, an RFC (#4 above) will be submitted to
CHANGE MANAGEMENT by CAPACITY MANAGEMENT. SERVICE PLANNING uses the analysis to determine
whether any service adjustments need to be made, and if so, submits an RFC (#4 above) to CHANGE
MANAGEMENT. SERVICE PLANNING uses the analysis, also, to generate service reports (#4 above),
which are given to BUSINESS ASSESSMENT, in order to communicate current service status and
capabilities. The service report (#4 above) is also submitted to the CMDB, so that it can be
referenceable by all processes.
Capacity Design and Plan

Definition
Capacity Design and Plan represent the details of service capacity which aim to balance demand
and workload: 1) how we determine adequate capacity for a service, 2) making decisions on
tradeoffs between the cost of supplying adequate capacity versus the risk of running short of
capacity, 3) how to manage the capacity, 4) how the functionality related to service capacity is to be
developed and implemented. The design details what should be developed or purchased to support
identified capacity requirements. The plan defines the timeframe within which (and how) each of the
design components is to be developed/purchased, how performance will be tracked and evaluated,
and how to submit service capacity improvement recommendations through the CHANGE
MANAGEMENT mechanism. Technology, staff, and process considerations in this detail include:
q Component and service function requirements and descriptions
q Relationships between components and between service functions (e.g., inputs, outputs)
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q Logic/algorithms
q Data structure definitions
q Enabling technology specifications (including fit within the architecture, tools)
development opportunities, new staffing needs)
q Cost impact of implementing capacity portions of the design
q Availability impact of implementing capacity portions of the design
q Risk assessment as it applies to service capacity, utilization and performance
q Delivery performance requirements
q Supplier performance requirements
q Service capacity review and improvement procedures
q Buy vs. build recommendations, from a capacity perspective, for components and service
functions
q Staff loading (e.g., number of servers per system administrator, number of calls per first-
level support, number of administrative changes per week, etc.)
q User workload (e.g., number of users projected to use a particular service)
Data Flow Overview

Service
Planning IT Strategy
Availability Development
Management
2. External
Design 2. IT
2. Availability Specification Architecture
Designs
and Plans
Change Capacity
Management 1. Workorder Management
3. Capacity
Design
and Configuration
Management
Plan
Cost
Management
Service 4. Service Budget

Planning
5. Internal
Design
Configuration
Specification
Management
Build & Test
Availability
Management
Explanation
Triggered by a workorder for a new or updated service (#1 in the diagram above), CAPACITY
MANAGEMENT uses the external design specification from SERVICE PLANNING, the IT architecture from
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PROCESS GUIDE
IT STRATEGY DEVELOPMENT, and the availability designs and plans from AVAILABILITY MANAGEMENT
(#2 above) to develop a capacity design and plan (#3 above). COST MANAGEMENT incorporates the
requirements from this design and plan into its service budget (#4 above) which is used by SERVICE
PLANNING, along with the capability designs and plans (#3 above), to create an internal design
specification. The internal design specification (#5 above) is passed to BUILD & TEST for
manufacturing and to CONFIGURATION MANAGEMENT as a document to be referenceable by all
processes. The capacity design and plan are also stored in the CMDB (#4 above), as a document
referenceable by all processes.
CI Attributes and Relationships

Definition
Data in the Configuration Management database describing the characteristics and status (e.g.,
new, test, implemented, in production, down, etc.) of a configuration item and its links to other CIs
are collectively referenced as attributes and relationships.
CI attributes include:
q Name of the CI (e.g., system A, box4597, John Doe, high availability service plan, etc.)
q Model or other identifying group (e.g., hp9000, Cisco router, customer X, document, etc.)
q Version or date (e.g., A.01, 19Feb1998, release2, etc.)
q Location (e.g., data center #1, basement, New York, XYZ database, etc.)
q Owner
q Status
q Any other information important to distinguish the CI from other similar CIs
q Cost (purchase, warranty, support, etc.)
q Configuration parameters
Relationships between CIs are usually expressed in hierarchical terms – peers, superiors,
subordinates, etc. – but may be described in any way that facilitates retrieval of data about related
CIs. For example: system A is attached to network X via network interface card (NIC) Y, or server J
is related to 300 CIs identified as “users,” etc.

Reference Model
PROCESS GUIDE
Data Flow Overview
Customer
Management
Change IT Strategy
Management Development
Service
Planning
Service Level
Management Business
1. Workorder
Availability Assessment
Management Customer
Capacity Management
Management 2. CI Attributes
IT Strategy
Cost
and Relationships Development
Management Service
Configuration Planning
Management Configuration Service Level
Build & Test Management Management
Availability
Release to Management
Production 3. CI Attributes Capacity
Management
Operations and Relationships
Management Cost
Management
Change
Management
Build & Test
Release to
Production
Operations
Management
Incident
Management
Problem
Management
Explanation
In response to a workorder (#1 in the diagram above), any one of several processes may need to
update information about a configuration item (#2 above). Examples of these updates follow:
q AVAILABILITY MANAGEMENT – document information about availability designs and plans,
subcontractor terms, availability analysis
q BUILD & TEST – document information about operating procedures, support procedures,
recovery procedures; information about resources modified in the test environment or limited
production environment; status changes for components, service functions, or end-to-end
services; registration of a master blueprint
q CAPACITY MANAGEMENT – document information about capacity design and plan, capacity
analysis
q CONFIGURATION MANAGEMENT – information about the CMDB itself (e.g., the location of
physical representations of logical database entities)
q COST MANAGEMENT – document information about service budgets, costing analysis
q CUSTOMER MANAGEMENT – calendar trigger dates for executive briefing cycle
q IT STRATEGY DEVELOPMENT – funding limits for service investments; document information
for IT Strategy
q OPERATIONS MANAGEMENT – updated information about resources in the production
environment (e.g., production jobs, server configurations, IP address assignments, etc.)

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PROCESS GUIDE
q RELEASE TO PRODUCTION – status changes for components, service functions, or end-to-end
services; information about a production release
q SERVICE LEVEL MANAGEMENT – version information about specific service level agreements;
registration of custom services
q SERVICE PLANNING – document information about external and internal design specifications
for a service, service portfolio, etc.
CI attributes and relationships (#3 above) may be retrieved by one of several processes in the
normal course of process execution. Examples follow:
q AVAILABILITY MANAGEMENT – current and future designs and plans, models, configurations
and relationships; reviewing relationships between service components, service functions,
and end-to-end services
q BUILD & TEST – understanding impact of component, service function and end-to-end service
testing on other services and CI relationships; preparing training materials; documenting
versions
q BUSINESS ASSESSMENT – comparing existing services with market needs
q CAPACITY MANAGEMENT – reviewing relationships between service components; fitting end-
to-end capacity and performance requirements specified in the design
q CHANGE MANAGEMENT – assessing impact of proposed changes on IT services (including
their supporting infrastructure); performing administrative changes
q COST MANAGEMENT – calculate total cost of ownership and other financial analyses (CI
attributes such as purchase cost, support costs, warranty and contract information, etc. are
especially useful)
q CUSTOMER MANAGEMENT – accessing current customer information; updating new customer
information
q INCIDENT MANAGEMENT – reviewing and/or updating status information; determining course of
action when an incident occurs
q IT STRATEGY DEVELOPMENT – reviewing summarized data about CIs to determine future
directions; organizational data (departments/employees) for reorganization efforts,
determining skill categories (e.g., internet, NT, etc.)
q OPERATIONS MANAGEMENT – performing day-to-day processing; obtaining status information,
configuration data, CI relationship information, etc.
q PROBLEM MANAGEMENT – determining course of action for problems; reviewing related
incidents; obtaining status information
q RELEASE TO PRODUCTION – understanding impact of production testing on other services, CI
relationships, dependencies; obtaining status information
q SERVICE LEVEL MANAGEMENT – preparing SLA exhibits; preparing for service performance
reviews
q SERVICE PLANNING – determining fit of existing components, service functions, with
new/modified end-to-end services
Cost Analysis
Definition
The Cost Analysis is an evaluation of actual service delivery cost data in two different ways:
q As triggered by the service review cycle, the data is aggregated by each service across all
customers; cost activity is compared against the service budget; recommendations are
made as to service improvement actions which should be taken from the cost perspective.
Examples of this type of cost analysis include:

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PROCESS GUIDE
q Profit and Loss Account - Aim is to match the cost (or value) of resources consumed in a
financial period with the income earned in that period, with a view to identifying a surplus
or loss for that period.
q Balance Sheet - Statement of the financial position (assets vs. liabilities) of an entity at a
given date disclosing the value of the assets, utilities, etc. The Balance Sheet is
prepared to give a true and fair view of the state of the entity at that date.
q As triggered by the billing cycle, the data is aggregated by each customer across all
services; service usage is determined and appropriate charging allocations are made, and a
service invoice is generated for each customer.
Data Flow Overview
Configuration
Management
& DOHQGDU
1. Billing 2. Service Configuration

Cycle Performance Management
Data
1. Service IT Strategy
Review Development Cost
3. Cost Management
Cycle Cost 4. IT Budget
Management Analysis Service
Planning
Service Level 4. Service Business

Management Reports Assessment
4. RFC Configuration
4. RFC Management
4. Service
Invoice 4. Customer
Change Management
Reports
Change
Management
Configuration
Management
Customer
Management
Customer
(IT Mgmt)
Explanation
Triggered by either the service review cycle or the billing cycle (#1 in the diagram above), COST
MANAGEMENT accesses the CMDB to retrieve actual cost service performance data (#2 above). If
triggered by the service review cycle, the data is aggregated by each service across all customers.
If triggered by the billing cycle, the data is aggregated by each customer across all services. With
this data COST MANAGEMENT performs cost analysis (#3 above), stores the analysis in the CMDB as
a document referenceable to all processes, and if triggered by the billing cycle, uses it to generate
service invoices to deliver to customers (#4 above). This analysis is also delivered to SERVICE LEVEL
MANAGEMENT, for use in developing customer reports (#4 above) for the customer (IT management
level), for CUSTOMER MANAGEMENT to develop executive brief content, and to store in the CMDB.
If triggered by the service review cycle, COST MANAGEMENT stores the analysis in the CMDB as a
document referenceable to all processes, as well as provides the analysis results to SERVICE
PLANNING and IT STRATEGY DEVELOPMENT. Based on the analysis results, COST MANAGEMENT may
issue RFCs to affect changes in a specific service (#4 above). IT STRATEGY DEVELOPMENT uses the
analysis to validate/reconcile its current IT budget, and, if necessary, to refine it (#4 above).
SERVICE PLANNING uses the analysis to determine whether any service adjustments need to be
Reference Model
PROCESS GUIDE
made, and if so, submits an RFC (#4 above) to CHANGE MANAGEMENT. SERVICE PLANNING uses the
analysis, also, to generate service reports (#4 above), which are given to BUSINESS ASSESSMENT, in
order to communicate current service status and capabilities (and stored in the CMDB).
Design Feedback
Definition
Design Feedback is input from Availability Management, Capacity Management, or Cost
Management regarding the External Design Specification, based on preliminary work on their
respective designs and plans. Generally, this input is intended to make the design more feasible,
accurate, effective, or efficient, from their expertise perspective.
Data Flow Overview
Configuration
Management
3. External Service Level
Design Management
Specification Customer
(updated) Management
Service
Planning
2. Design
Feedback 4. Marketing Material
1. External
Design Availability
Specification Management & X V WR P HU([HFX WLYH
Capacity
Management 3. Availability
Cost Designs and Plans
Management
3. Capacity
Design and Plan
3. Service Budget Service

Planning
Explanation
Once SERVICE PLANNING submits the external design specification (#1 in the diagram above) to
AVAILABILITY, CAPACITY, AND COST MANAGEMENT, the three processes begin work on their designs
and plans. During this detail design effort, they uncover flaws, issues, or necessary changes for the
functional design in order to implement their detailed plans and designs, and provide design
feedback (#2 above) back to SERVICE PLANNING.
As AVAILABILITY, CAPACITY, AND COST MANAGEMENT complete their designs and plans (#3 above) for
SERVICE PLANNING, SERVICE PLANNING updates the external design specification (#3 above) and
provides the final version to SERVICE LEVEL MANAGEMENT, CUSTOMER MANAGEMENT, AND
CONFIGURATION MANAGEMENT. SERVICE LEVEL MANAGEMENT develops an SLA template based on the
external design specification and stores it in the CMDB. CUSTOMER MANAGEMENT uses the external
design specification to develop marketing material (#4 above) to use with customers. Additionally
the external design specification is stored in the CMDB, as a document referenceable by all
processes.

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PROCESS GUIDE
Documents
Definition
The aggregate term “Documents” represents configuration items that are typically stored in the
Configuration Management database in electronic form (rather than as a pointer to a physical copy
as in CI Attributes and Relationships).
Note: A major example of documents referenced by this process is IT Architecture (see next item,
Documents – IT Architecture).
Indexed items included in this aggregate term:
q Availability Designs and Plans
q Customer Survey Results
q IT Strategy
q Operating Level Agreement
q Operating Procedures
q P.O. for IT Services
q Proposal
q Recovery Procedures
q Request for Proposal
q Service Level Agreement
q Service Objectives and Measures
q SLA Services and Objectives
q Subcontractor Terms
q User Guides
Examples of documents used as input to this process:
q IT Architecture
Definitions of these documents follow the Documents definition.

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PROCESS GUIDE
Data Flow Overview
Business
Assessment
Customer
Management
IT Strategy *Examples of Documents:
Development
q Marketing Analysis
Service
q Executive Brief
q IT Strategy
Planning
Service Level q Service Plan Business
Management
q Service Level Agreement Assessment
Availability q Availability Designs and Plans Customer
Management q Capacity Design and Plan Management
q Costing Plan
Capacity
Management q Operating Procedures IT Strategy
Development
Cost Service
Management Planning
Build & Test Service Level
2. Documents* Management
1. CI Attributes Availability
and Relationships Management
Capacity
Configuration Management
Management Cost
Management
Change
Management
3. Documents* Build & Test
Release to
Production
Operations
Management
Incident
Management
Problem
Management
Explanation
The CONFIGURATION MANAGEMENT process may receive an electronic document (#2 in the diagram
above) from another process with a request to update attributes or relationships about a
configuration item (#1 above). The document is stored in the Configuration Management database.
The document (#3 above) will be routed electronically or printed and distributed per the query
instructions. Retrieved documents are usually used for reference within a process; therefore, no
specific outputs have been identified as resulting from documents.
Documents - IT Architecture
Definition
The defined and documented orderly arrangement (i.e., structure) of high-level critical elements,
principles, policies and standards related to these strategic architectural aspects of IT service
development and delivery and developed as part of the IT Strategy Development process:
q Process architecture - selecting a process framework such as the ITSM Reference Model,
selecting and adopting ISO quality standards, etc.).

Reference Model
PROCESS GUIDE
q Application architecture - defining, selecting and adopting the application architectural
principles (e.g., all new application code will be developed to maximize re-use), standards
(e.g., we will only use java for all internet-based application development), policies (e.g., all
applications must adhere to n-levels of testing prior to release) that will be used for
application development.
q Technology architecture - defining, selecting and adopting the IT standards and policies for
hardware (e.g., we will only use NT clients and UNIX servers; we will use only HP-supplied
servers), software (e.g., we will only offer MS Office Suite to our customer base), networks
(e.g., all of our networks will be utilize tcp-ip protocols), and security (e.g., all PC clients must
utilize virus detection software; external access to the Internet can only be provided with
firewall-protected internet servers).
q Service architecture - defining, selecting and adopting the IT principles, standards and
policies for establishing the service portfolio and assigning services to the portfolio (e.g., only
services that address the IT services organization value proposition will be selected as
candidates for the service portfolio).
q Service delivery model – defining, selecting, and adopting the IT standards and policies for
service coverage design (e.g., "follow the sun" or shift coverage, target geographies, etc.),
service provision arrangements and support, organizational structures, major changes to the
IT infrastructure, channel partner strategy (e.g., key partners, etc.), make versus buy
strategy for service delivery infrastructure, etc.
q Security architecture – defining the policies, principles, and guidelines that will be used to
ensure logical and physical security throughout the IT environment, for all services and
customers. Incorporates risk management guidelines to ensure justifiably (recognizing
tradeoff between cost and level of protection) secure IT services in the areas of
confidentiality, integrity, and availability.
Several Service Design & Management processes refer to the IT Architecture during the
development of external and internal design specifications in order to ensure interoperability and
compatibility of all components within the infrastructure.

Reference Model
PROCESS GUIDE
Data Flow Overview
&DOHQGDU
Service
Planning
Availability
1. IT Business Planning
4. External Design Management
Review Cycle
Specification Capacity
IT Strategy Management
Development
Cost
Management
2. Market 3. IT Service Level
Analysis Management
2. Service Architecture
Recommendations
Configuration
Management
Business Availability
Assessment Management
Service
4. Availability Designs Planning
and Plans
Capacity
Management
Cost
Management
Capacity
Management
Configuration
Management
4. Capacity Design
and Plan
Service
Configuration Planning
Management
Cost
Management
Configuration
Management
Explanation
Driven by the IT Business Planning Review Cycle (#1 in the diagram above), IT STRATEGY
DEVELOPMENT pulls Market Analysis and Service Recommendations (#2 above) from BUSINESS
ASSESSMENT to develop IT Strategy which is provided (#3 above) to several processes for their use
(as well as stored in the CMDB). The processes use the IT Strategy to develop the following outputs
(all #4 above):
q SERVICE PLANNING - Changes in IT Strategy will be used to shift strategic and tactical service
planning and may drive changes in External Design Specifications.
q AVAILABILITY MANAGEMENT - Changes in IT Strategy will be used to shift strategic and tactical
service planning and may drive changes in Availability Designs and Plans.
q CAPACITY MANAGEMENT - Changes in IT Strategy will be used to shift strategic and tactical
service planning and may drive changes in Capacity Designs and Plans.
IT Strategy
Definition
The aim of IT strategic planning is to provide the business with a framework within which it can plan,
measure and control the value returned for money spent on its long-term IT investment. The IT

Reference Model
PROCESS GUIDE
STRATEGY DEVELOPMENT process derives and establishes the overall value proposition for the IT
services organization by consolidating the various market segment value statements discovered by
BUSINESS ASSESSMENT. This process aligns customer business planning with IT business planning,
articulates the broad plan for achieving its goals and objectives, and enables IT to act decisively.
The IT Strategy is the strategic plan that provides the principles, policies, standards and direction for
IT based on an integration of market segment business needs and IT strategic objectives in the
following areas:
q Financing (IT viewed as an operational cost or an investment)
q Organizational structure (centralizing/de-centralizing ’day-to-day’ management, roles,
responsibilities, and authority)
q Innovation (pioneer/follower with new technology)
IT strategy should include:
q Statement of purpose (mission/vision statement)
q One, three and five year objectives
q Description of customer(s) and channels of distribution
q Description of competition
q Organizational model with roles and responsibilities for all of IT
The IT strategy should also contain a Road Map i.e., a strategic plan showing the evolution of
services in the long term (up to five years). The Road Map is a visionary picture of future services
and the path to get there. Expressed in customer-understandable terms, the Road Map links
required functionality of the services; it specifically avoids technology evolution that does not
contribute to customer value. The Road Map’s purpose is to guide thinking for future direction and
to align expectations of customers, partners, and other IT groups.

Reference Model
PROCESS GUIDE
Data Flow Overview
& DOHQGDU
1. IT Business Planning
Review Cycle
2. Service
Recommendations
Business
Assessment IT Strategy
2. Market Development
Analysis
2. Market
Segment
Value
Propositions Customer
3. IT Strategy Management
4. Marketing
Material,
Executive Brief Customer Executive
Business
Assessment
4. Service
Service Recommendations
Planning
IT Strategy
Configuration Development
Management
4. Service Portfolio
Configuration
Management
Customer
Management
Business
Assessment
Explanation
Driven by the IT business planning review cycle (#1 in the diagram above), IT STRATEGY
DEVELOPMENT obtains market analysis, market segment value propositions, and service
recommendations (#2 above) from BUSINESS ASSESSMENT to develop the IT strategy (#3 above).
Several processes use the IT Strategy to develop the following outputs (#4 above):
q CUSTOMER MANAGEMENT - Uses the road map portion of the IT Strategy to develop
marketing material, to determine marketing timing, and to target customers for a particular
component, service function, or end-to-end service.
q BUSINESS ASSESSMENT - Reviews the road map portion of the IT Strategy in order to
understand existing service plans. Service Recommendations result from the comparison of
market segment opportunities against existing capabilities and future plans.
q SERVICE PLANNING - Changes in IT Strategy will cause Service Planning to update the
service portfolio to incorporate new and updated service investment information and
development plans.

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PROCESS GUIDE
q CONFIGURATION MANAGEMENT - As a document, the IT Strategy is loaded into the CMDB so
that all processes can refer to it in preparing the infrastructure to support upcoming IT
initiatives and service requirements.
Market Analysis
Definition
The Market Analysis is a documented summary of market research for IT, containing market segmentation
information, value-chain information, segment sizing and growth potentials, customer preferences, market
segment value propositions, and the competitive positioning of IT. This document is prepared based on the
IT Business Planning Review Cycle or in reaction to a significant change in the market (external factor
change).
Data Flow Overview

&DOHQGDU
0DUNHW
2. External
1. IT Business Planning Factor Configuration
Review Cycle Change Management
Business
Assessment
Service
Planning
4. Service
Portfolio
3. Market
Analysis Customer
Management
Business
Assessment
IT Strategy
Development
Configuration
Management
4. IT Strategy
Customer
Management
Business
Customer Assessment
Management
Service
Planning
4. Marketing
Material
Configuration
Customer Management
Executive
Explanation
In response to the IT Business Planning Review Cycle (#1 in the above diagram) or some significant
change in a market segment (an external factor change - #2 above), the BUSINESS ASSESSMENT process
performs those activities that result in the development and delivery of a Market Analysis (#3 above).
The Market Analysis is deposited in the CMDB for review by other processes. And it is provided to
SERVICE PLANNING, which uses it to create or update the service portfolio; IT STRATEGY DEVELOPMENT,

Reference Model
PROCESS GUIDE
which uses it to develop an IT strategy; and CUSTOMER MANAGEMENT, which uses it to develop marketing
material.
Service Budget
Definition
The Service Budget consists of forecasts of incomes and expenditures per service level for a given
service, using the standard cost structure so that it can be easily reconciled with the profit and loss
statement for that specific service.
Data Flow Overview
IT Strategy Availability
Development Management
Service Capacity
Planning 2. Availability Management
2. IT
Designs
Budget
and Plans
2. External
2. Capacity
Design
Design
Specification
and Plan
Cost
Configuration Management
Management 1. Workorder
3. Service
Budget
3. Design Service
Feedback Planning 5. Internal Configuration
Design Management
Specification
Build & Test
4. External
Design Availability
Configuration
Management
Service Level
Management
Customer
Management
Explanation
Triggered by a workorder (#1 in the diagram above) to develop a service budget for a new/updated
service, COST MANAGEMENT refers to the external design specification from SERVICE PLANNING, the IT
budget from IT STRATEGY DEVELOPMENT, and the respective designs and plans from AVAILABILITY
MANAGEMENT and CAPACITY MANAGEMENT (#2 above), and develops a service budget (#3 above).
Along with the service budget, design feedback (#3 above) is also generated, which updates pricing
and other design information in the external design specification (#4 above). SERVICE PLANNING
refers to the service budget to ensure it is within cost boundaries in the development of the internal
design specification (#5 above), which is passed to BUILD & TEST for manufacturing, AVAILABILITY
MANAGEMENT for Operating Level Agreement development with suppliers, and to CONFIGURATION
MANAGEMENT as a document to be referenceable by all processes.

Reference Model
PROCESS GUIDE
Service Performance Data

Definition
Service Performance Data are consolidated data related to delivery of a service (e.g., service levels
attained, services delivered, or service components being developed). Components, service
functions, and end-to-end services are designed with data collection capabilities integrated. Data
are grouped by service, and sometimes sorted by customer, for reporting. Certain data (e.g.,
Component Usage Data, Cost Data) needs to be able to be split out by cost units (e.g., business
units) for billing purposes.
Data Flow Overview
Operations
Management
Incident
Management Production
Environment
Problem
Management
1. Component
1. Cost Data Usage Data
1. Service 1. Resource
Metric Data Performance Data
Configuration
Management
Service
2. Service Planning
Performance Service Level

Management 4. Service
Data Reports
Availability Business
Management Assessment
Capacity 4. Customer
Management Reports
Cost 3. Availability
Management Analysis Customer
3. Capacity Management
Analysis
3. Cost Analysis
3. Cost
(service-specific) Customer
Analysis
(IT Mgr)
(customer-specific)
Service Planning
Service Level
Management
Explanation
The CONFIGURATION MANAGEMENT process receives data in many formats (see #1 in the diagram
above).
In response to a query, service performance data (#2 above) are returned to the AVAILABILITY
MANAGEMENT, CAPACITY MANAGEMENT, and COST MANAGEMENT processes for analysis (#3 above),
and to the SERVICE PLANNING and SERVICE LEVEL MANAGEMENT processes for reporting (#4 above),
and ongoing service/component improvement.
Reference Model
PROCESS GUIDE
Outputs
CI Attributes and Relationships

See Inputs section for definition of CI Attributes and Relationships.
Cost Data
Definition
Financial data recorded in processes supporting service provision as service and cross-service
activities are performed are referred to as Cost Data. Intended to be used to evaluate service
performance against a defined standard, some examples of delivery cost data follow:
q Labor hours associated with
q Specific incidents
q Operations tasks
q Planning and design activities
q Construction activities
q Testing
q Change projects
q Analysis activities
q Marketing and selling
q Expenses incurred for supplies
q Number of production scheduling changes completed

Reference Model
PROCESS GUIDE
Data Flow Overview
Business
Assessment
Customer
Management
IT Strategy
Development
Service
Planning
Service Level
Management
Availability
Management
Capacity
Management
Cost
Management
Change
Management
Build & Test
1. Cost Data
Release to
Production Configuration
Operations Management
Management
Incident Service
Management 2. Service Planning
Performance
Problem Data Service Level
Availability
Management
Capacity
Management
Cost
Management
Explanation
Part of the ongoing nature of service management, collection of cost data (#1 in the diagram above)
occurs in all processes. The data is stored in the Configuration Management database and
consolidated with other component, service function, and end-to-end service data related to service
performance (#2 above) when it is reported to the processes in the Service Design & Management
process group.
Documents
See Inputs section for definition of Documents. Examples of documents output by this process
include:
q Service Portfolio
q External Design Specification
q Internal Design Specification
q Service Reports

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PROCESS GUIDE
External Design Specification
Definition
A functional characterization (the “what”) of a service, the External Design Specification defines
specific standard service functionality, objectives, scope, and characteristics to meet the service
requirements anticipated for multiple customers. With its focus on interfaces related to but external
to the service (deliverables, inputs, and outputs as well as service level parameters and pricing),
used to drive the buy vs. build decision, this document typically contains the following:
q Service concept
q Service contribution to the market segment value proposition
q Standard service levels and associated pricing that address target market segment needs,
based on configurable parameters (e.g., service window, turnaround time goal, performance
threshold)
q Service measures (e.g., cost, end-to-end availability, response times)
q Detailed specifications (e.g., description of characteristics, visual mock-ups, format,
recipient, timing and frequency, etc.) of the deliverables produced by the service for the
customer
q Necessary inputs and outputs between major service functions and components to guide the
"buy vs. build" decision
q Infrastructure environments against which the service will be applied
q Service boundaries (i.e., is/is not)
q Service interfaces and integration (for existing and planned services)
q Service dependencies and assumptions
q Refined service demand projections split out by service level, projected over time (e.g.,
projected quantity and size of customers, etc. as it might be segmented by service level)
Data Flow Overview
Configuration
Change Management IT Strategy
2. Service
Portfolio 2. IT Strategy
&DOHQGDU 1. Workorder
1. Service Service
5. Designs and Plans
Review Planning
Availability
Cycle 4. Design Feedback Management
Capacity
3. External Management
Design Cost
Service Level Configuration Customer

6. Marketing
Materials
&XVWRPHU([HFXWLYH

Reference Model
PROCESS GUIDE
Explanation
At regular intervals described in the service review cycle or in response to a workorder (both are #1
in the diagram above), the SERVICE PLANNING process references the service portfolio and IT
strategy (#2 above) to create or modify the detail service functionality called the external design
specification (#3 above). The AVAILABILITY MANAGEMENT, CAPACITY MANAGEMENT, and COST
MANAGEMENT processes receiving the external design specification submit design feedback (#4
above) prior to its finalization. Once final, the external design specification is stored in the
Configuration Management database and converted into designs and plans (#5 above). The
external design specification is used by the S ERVICE LEVEL MANAGEMENT process to create SLA
templates, a tool used in documenting service level agreements. The CUSTOMER MANAGEMENT
process uses the external design specification to create marketing materials (#6 above) for delivery
to customer executives.
Internal Design Specification

Definition
Detailed instructions showing how IT will manufacture, obtain, and deploy a component, service
function or end-to-end service are referred to as an Internal Design Specification. This document
incorporates plans and designs (constrained by the service budget) developed by the AVAILABILITY
MANAGEMENT, CAPACITY MANAGEMENT and COST MANAGEMENT processes. It contains:
q Component and service function development decisions, directives, and specifications
q Relationships between components and service functions (e.g., media management tool
must handle specified backup and restore media)
q Service data attributes and relationships definition (designing the types of data needed to
support the service, necessary data characteristics, and linkages to other data), data
structure definitions, data flow requirements between functions
q Delivery process functional design
q Enabling technology specifications (including fit within the architecture, tools), including
logic/algorithms (e.g., calendar functions that will survive the year 2000, how to calculate
leap year, etc.)
development requirements, staffing requirements)
q Training strategy - identifying for the long-term the projected skills required by IT staff,
customers and suppliers; determining the methods of delivering this education (in-house,
external, a combination); specifying who needs to be trained when, how often training should
occur, how it will be paid for, how people skills will be kept current, how to handle staffing
and changes, appropriate certification programs (e.g., ITIL, NT), etc.
q Risk mitigation factors
q Procedures for development and deployment
q Procurement specifications/instructions for service functions/components which are
purchased from a product/service supplier
q Performance requirements
q Network topologies, including bandwidth, carrier, redundancy
q Control points or checkpoints and thresholds that need to be put in place (via system and
network management systems) to provide regular feedback about whether or not critical
elements in the infrastructure or service are working as expected
q Requirements specification of support guidelines, reference materials, troubleshooting
guides, and other documentation for support of the infrastructure and/or service which need
to be developed Deployment requirements, guidelines, constraints

Reference Model
PROCESS GUIDE
Data Flow Overview
Cost
Management
Capacity
Management IT Strategy
5. Design
Availability Development
Feedback
Management
4. Designs
and Plans
2. Service
3. External Portfolio
Design Configuration
2. CI Attributes and
Relationships
Change
1. Workorder Service
Management Planning
6. Internal Design
Specification
Build & Test
8. Training
Design and
9. Master
Plan
Blueprint
7. Training
Materials
Release to
Production
Explanation
Upon receipt of a workorder (#1 in the above diagram) to begin the detailed planning required for
services, The SERVICE PLANNING process transforms the thumbnail sketch of a service description
contained in the service portfolio (#2 above) into the detailed service description and functional
requirements specification contained in the external design specification (#3 above), which is passed
to Availability Management, Capacity Management, and Cost Management.
These processes use the external design specification to make recommendations regarding the
service buy vs. build decision in their areas of expertise, then return to SERVICE PLANNING the
designs and plans (#4 above) outlining these recommendations and the manufacturing requirements
for service functionality that IT will build internally. These processes also provide design feedback
that Service Planning may incorporate into the external design specification (#5 above).
SERVICE PLANNING consolidates the designs and plans and prepares an internal design specification
(#6 above), which details for BUILD & TEST what needs to be developed and assembled for the
required component, service function or end-to-end service. With this guidance, BUILD & TEST
provides RELEASE TO PRODUCTION a training design and plan (#7 above), develops or purchases
training material (8 above), and documents a master blueprint for replication purposes (#9 above).

Reference Model
PROCESS GUIDE
Request for Change (“RFC”)
Definition
A form (electronic or hardcopy) containing details about an opportunity to create or improve a
component, service function, or end-to-end service is referred to as a Request for Change. The
scope of an RFC may vary from minor, day-to-day, operational changes (also known as
administrative requests) to significant, multiple month, design and development changes (e.g.,
creating a new service).
Data Flow Overview
Customer
Management
IT Strategy
Development
Service
Planning
Service Level
Management
Availability
Management
Capacity
Management
Cost Customer
Management 1. Request Management
Build & Test for Change IT Strategy
Development
("RFC")
Release to Service
Production Planning
Operations Change Service Level
Incident Availability
Problem Capacity
Management 2. Change 2. Workorder Management
Record
Configuration Cost
Build & Test
Configuration
Management Release to
Production
Operations
Management
Configuration
Management
Explanation
In the course of normal activities of most processes, opportunities for change may be identified.
Once identified, an RFC (#1 in the diagram above) is submitted for evaluation and disposition. The
CHANGE MANAGEMENT process evaluates each RFC for need, timing, fit with infrastructure, impact,
complexity, etc. If the RFC is rejected, the requester is notified and no further action is taken. If
appropriate, the RFC is approved. At this point, a change record is logged and workorders are
generated (#2 above).
Some of the circumstances which may result in RFCs are listed below:
q AVAILABILITY MANAGEMENT – component, service function, or end-to-end service design
deficiency; alteration in a supplier relationship; service or component plan changes

Reference Model
PROCESS GUIDE
q BUILD & TEST – technology becomes available that can improve component, service
function, or end-to-end service design; supplier capability changes; opportunities for greater
effectiveness or efficiency are discovered during construction and testing
q BUSINESS ASSESSMENT – competitor information or market demand suggests modification of
an existing service
q CAPACITY MANAGEMENT – component, service function, or end-to-end design deficiency;
service or component plan changes; sizing adjustments of application, service, or
infrastructure; modified workload forecast; enhanced understanding of end user behavior
resulting in an opportunity to update demand management practices (e.g., end users storing
excessive e-mail messages on the host server)
q CONFIGURATION MANAGEMENT – regular audit of configuration items shows a mismatch of the
data in the Configuration Management database and actual production environment
q COST MANAGEMENT – component, service function, or end-to-end design deficiency; service
or component plan changes; accounting policy changes; modification of charging scheme;
unexpected spike or dip in delivery costs
q CUSTOMER MANAGEMENT – action items identified for a specific customer
q INCIDENT MANAGEMENT – identified opportunity to streamline operating procedures; failure of
scripted information to resolve incident; dissatisfied end users
q IT STRATEGY DEVELOPMENT – new service opportunities identified
q OPERATIONS MANAGEMENT – identification of unfiltered resource status; identified opportunity
to streamline operating procedures
q PROBLEM MANAGEMENT – resolution of a problem; identification of a known error
q RELEASE TO PRODUCTION – identified opportunity to streamline implementation procedures;
difficulty in assembling, integrating, or implementing a component, service function, or end-
to-end service based on a master blueprint; customization of a controlled release for a
specific customer; more software licenses are needed
q SERVICE LEVEL MANAGEMENT – customer service levels are renegotiated; new Service Level
Agreement signed; existing Service Level Agreement terminated
q SERVICE PLANNING – need to design service components per internal specification; service or
component deficiency in design or execution; need additional portfolio funding
Service Portfolio
Definition
The set of services managed within IT across all market segments is referred to as the Service
Portfolio. It consists of:
q Portfolio objectives and measures
q Service names, descriptions, objectives and measures
q Service contributions (including projected revenues and investments) rolled up into the IT
value proposition
q Service timelines

Reference Model
PROCESS GUIDE
Data Flow Overview
&XVWRPHU
([HFXWLYH
Business
IT Strategy Assessment
Development
4. Marketing
Customer
Materials Management
Customer
2. IT Strategy Management IT Strategy
4. Market Development
2. Market Analysis Analysis
Business Service
1. Portfolio Assessment Planning
Review 3. Service
&DOHQGDU Cycle Portfolio
Configuration
Service Configuration Management
Planning Management
4. Service
Recommendations
5. External
Design IT Strategy
Development
Specification Availability
Management
Capacity
Management
Cost
Management
Service Level
Management
Customer
Management
Explanation
Based on the service portfolio review cycle (#1 in the above diagram), Service Planning pulls the IT
strategy (#2 above) and market analysis (also #2 above) for review prior to creating/updating the
service portfolio which is then provided to Customer Management, Business Assessment and stored
as a document in Configuration Management (#3 above). Value propositions, service
recommendations contributing to IT value, and preliminary portfolio updates (#1 in the diagram
above) are consolidated into the Service Portfolio.
Customer Management uses the service portfolio to develop marketing materials; Business
Assessment uses it to compare against future market findings, and in the development of service
recommendations (all #4 above).
The portfolio is used, in turn, to detail service functionality in the external design specification (#5
above).
A number of processes may refer to the service objectives and measures portion of the portfolio.
Some examples of the use of this data follow:
q AVAILABILITY MANAGEMENT, CAPACITY MANAGEMENT, COST MANAGEMENT – these processes
focus their portions of the internal design specification on achieving service objectives and
incorporating service measures
q SERVICE LEVEL MANAGEMENT – this document is used as a guideline for customer-specific
performance commitments and measurements in SLA negotiation
q CUSTOMER MANAGEMENT – this document is used as reference in preparing customer briefs
Service Reports
Definition
Summarized and graphical management presentation of analyzed data on aggregated standard
service (across customers) performance, and recommendations for service improvements, when
necessary. Data analysis includes identifying potential new service opportunities and identifying
Reference Model
PROCESS GUIDE
potential service quality issues to help Service Planning target standard and custom service
enhancement/growth needs. Analysis also includes evaluation of custom services and viability for
their enhancement/growth.
Business Assessment reviews the Service Reports to understand existing service capabilities and IT
service recommendations when conducting a competitive analysis and making recommendations for
service improvements and/or new services.
Data Flow Overview
Configuration
Management
Capacity
Management 2. Service
Performance
Data
1. Capacity
Analysis
Availability 1. Availability Service Planning

Management Analysis
3. Service
1. Cost Reports
Analysis Business
Assessment 4. Market
Cost Analysis
Management Configuration
Management 4. Service IT Strategy
Recommendations Development
Configuration
Management
Explanation
Service Planning obtains the analyses (#1 in the diagram above) generated by AVAILABILITY
MANAGEMENT, CAPACITY MANAGEMENT, and COST MANAGEMENT and also accesses additional service
performance data (#2 above). Based on the results of this reviewing effort, S ERVICE PLANNING
generates service reports (#3 above) and provides them to BUSINESS ASSESSMENT. They are used
by Business Assessment to understand current service capabilities when conducting competitive
marketing analysis and when making service recommendations (#4 above) to IT STRATEGY
DEVELOPMENT. Note that these reports are also loaded into the CMDB as reference documents.
Workorder Status
Definition
Data reflecting the progress of a workorder. Each process receiving a workorder is responsible for
updating workorder status as tasks are completed against that workorder. In addition to state
change data (e.g., “New”, “Phase 1”, “Test”, “Controlled Release”, etc.) workorder status may have
version information and other details regarding the tasks under way or completed.

Reference Model
PROCESS GUIDE
Data Flow Overview
IT Strategy
Development
Service
Planning
Change Service Level

Availability
Management
1. Workorder Capacity
Management
Cost
Management
Build & Test
2. Workorder
Release to
Production
Status
Operations
Management Change
Incident Management
Management
Problem
Management 3. Change
Schedule
Incident
Management
Explanation
The CHANGE MANAGEMENT process generates workorders (#1 in the diagram above) and receives
workorder status (#2 above) as tasks are completed. This is how workorder progress is tracked.
For administrative changes, when workorder status indicates the tasks are complete (including
documentation and customer notification), the workorder can be closed. For change projects, each
status change will trigger a review of the overall project status with follow-on project management
activities as necessary. When workorder status indicates a variation in change project timelines, the
change schedule is updated (#3 above). End users are notified of change events in the change
schedule by the INCIDENT MANAGEMENT process.
Triggers
Portfolio Review Cycle

Definition
Portfolio Review Cycle is a calendar-based trigger informing SERVICE PLANNING that it is time to
review the set of existing services in the service portfolio as a whole for ongoing value and fit,
making updates as needed. This review cycle should be aligned with either financial periods or with
the IT Business Planning Cycle.

Reference Model
PROCESS GUIDE
Data Flow Overview
Configuration IT Strategy
& DOHQGDU
Business
2. Service 2. IT Assessment
Portfolio Strategy 2. Market
Analysis
1. Portfolio
Review
3. RFC Change
Cycle Management
Service
4. Workorder
Planning
5. Service Portfolio
(Updated) Business
Assessment
Customer
Management
Configuration
Management
Explanation
Triggered by a regular portfolio review cycle (#1 in the diagram above) SERVICE PLANNING pulls the
current service portfolio (#2 above) from the CMDB, the current IT strategy (#2 above) from IT
STRATEGY DEVELOPMENT, and the latest market analysis (#2 above) from BUSINESS ASSESSMENT.
With this information, SERVICE PLANNING determines what overall portfolio changes need to be made
in order to align with market/IT strategy changes, logs an RFC (#3 above) with CHANGE
MANAGEMENT for the entire portfolio change project (which will issue a series of workorders to
various processes), receives a workorder (#4 above) for the portfolio changes themselves (the first
workorder in a series for that change portfolio project), and updates the service (#5 above) as
necessary to be delivered to the processes (see above diagram) which primarily rely on the portfolio
documentation, as well as to be stored in the CMDB as a document referenceable by all processes.
Service Review Cycle

Definition
Service Review Cycle is a calendar-based trigger informing SERVICE PLANNING that it is time to
review specific services in depth to evaluate what types of improvements might be necessary to plan
for and to act upon at this time. This review cycle occurs biannually through all stages of the service
lifecycle, or as events require it to be triggered.

Reference Model
PROCESS GUIDE
Data Flow Overview
Configuration
Management
IT Strategy
& DOHQGDU Development
2. Service
Portfolio
2. External
Design 2. IT Strategy
1. Service Specification
Review
Cycle Change
Service 3. RFC Management
Planning
4. Workorder
5. External
5. Service
Design
Portfolio
Specification Customer
(updated)
(updated) Management
Availability
Management Business
Capacity Assessment
Management Configuration
Cost Management
Management
Service Level
Management
Customer
Management
Configuration
Management
Explanation
Triggered by a regular service review cycle (#1 in the diagram above) SERVICE PLANNING pulls from
the CMDB the current service portfolio and the external design specification (#2 above) for the
specific service under review, and obtains the current IT strategy (#2 above) from IT S TRATEGY
DEVELOPMENT. SERVICE PLANNING reviews the service in detail, looking for changes which may need
to be made to align with market/IT strategy changes, and if changes need to be made, logs an RFC
(#3 above) with CHANGE MANAGEMENT for the entire service change project (which will issue a series
of workorders to various processes), receives a workorder (#4 above) for the design changes for
that service (the first workorder in a series for that change service project), and updates the service
portfolio and external design specification (#5 above) as necessary to be delivered to the processes
(see above diagram) which primarily rely on these documents, as well as to be stored in the CMDB
as documents referenceable by all processes.

Reference Model
PROCESS GUIDE
Workorder
Definition
Specific to an administrative change or change project, a workorder consists of tasks to be
performed. The tasks are finite and associated with changing a component, service function or end-
to-end service. An administrative change would be expected to have one corresponding workorder;
a change project would be expected to result in multiple workorders.
Data Flow Overview
Business
Assessment
Customer
Management
IT Strategy
Development
Service
Planning
Service Level
Management
Availability
Management
Capacity
Management
Cost Customer
Build & Test 1. Request for Change IT Strategy
("RFC") Development
Release to Service
Production Planning
Operations Change Service Level
Incident Availability
Problem
2. Workorder Capacity
Configuration Cost
Build & Test
Release to
Production
Operations
Management
Configuration
Management
Explanation
The CHANGE MANAGEMENT process can receive a request for change (#1 in the diagram above) from
any one of many other processes. Once approved, the RFC is converted into one or more
workorders (#2 above). The workorders, in turn, trigger various process activities. In this diagram,
the outputs of those activities have been simplified to show some significant outputs.
Some examples of changes brought about by workorders follow:
q AVAILABILITY MANAGEMENT – availability design changes for a components, service functions,
or end-to-end services; contingency plans, risk analyses, supplier contracts (OLAs), CI
changes

Reference Model
PROCESS GUIDE
q BUILD & TEST – selection or development of a component, service function or end-to-end
service; unit test, modification of a master blueprint, infrastructure changes, CI changes
q CAPACITY MANAGEMENT – capacity design changes for a component, service function, or
end-to-end service; CI changes
q CONFIGURATION MANAGEMENT – load CI data
q CUSTOMER MANAGEMENT – build executive briefing cycle
q COST MANAGEMENT – costing structure changes; component, service function, or end-to-end
service design changes; CI changes
q IT STRATEGY DEVELOPMENT – get funding based on request by SERVICE PLANNING for
additional portfolio investments
q OPERATIONS MANAGEMENT – predefined administrative changes and CI changes in areas
such as:
q Production scheduling and processing
q Client/server administration
q LAN/WAN administration
q IP address administration
q Database administration
q RELEASE TO PRODUCTION – component, service function, or end-to-end service
implementation
q SERVICE LEVEL MANAGEMENT – SLA negotiation, service level design, build custom design
specification, build service performance review cycle
q SERVICE PLANNING – create or update service specifications (both external and internal
design specifications), modify service delivery model, modify service portfolio
Process Roles and Responsibilities

NOTE: This section is intended as a guide to understanding the possible roles required for managing the
distributed IT environment. Actual job titles and responsibilities implemented by any IT organization will vary, as
will the decisions regarding whether particular job responsibilities should belong to one person or be shared by
many.
Portfolio Manager
SERVICE PLANNING
q Manages overall service portfolio
q Participates in the planning effort for a new standard service, keeping an eye on the overall
portfolio mix, upcoming service investments, and what service characteristics would best
complement the suite of offerings
q Documents new portfolio entries for new standard services based on the planning effort
q Participates in the risk analysis performed on new/updated standard services to understand
their potential impact, negative or positive, on service delivery (or other aspects) of other
services in the portfolio
q Determines the impact of new/updated services to the fulfillment of IT’s overall value
proposition and ensure that the value proposition provided by the service complements the
overall portfolio.
q Updates service positioning as necessary to maintain overall portfolio performance and/or
investment balance. Makes recommendations to the Service Manager to obsolete a service
as deemed appropriate in the portfolio management activity.
q Develops and manages strategic alliances supporting multiple standard services

Reference Model
PROCESS GUIDE
Service Designer
SERVICE PLANNING
q Participates as the technical lead in functional design activities
q Participates in the capability gap analysis for new/updated services
q Develops the Internal Design Specification incorporating designs and plans from Availability
Management and Capacity Management, and aligning with Cost Management’s service
budget constraints
SERVICE LEVEL MANAGEMENT
q Participates as the technical lead in functional design activities for a custom design
q Participates in the capability gap analysis for new/updated custom services
q Develops the Custom Design Specification
Service Manager
(Process Owner: SERVICE PLANNING)
SERVICE PLANNING
q Manages a standard service end-to-end
q Leads the planning effort for a new standard service
q Develops the unique value proposition offered by the service to the target market segment
q Develops initial service customer base, revenue, and cost projections
q Identifies functional requirements and leads functional design activity for new/updated
standard services
q Develops refined customer base, revenue, and cost projections by service level
q Leads the capability gap analysis for new/updated services
q Conducts an ROI on each service to be developed to ensure it is a sound investment for IT
q Leads the risk analysis on new/updated standard services to understand risks (and benefits)
associated with developing and delivering them
q Makes the buy versus build decision for the service, for service functions and for
components
q Develops and manages product/service supplier alliances for specific services across
customers
q Manages obsolescence of a service
AVAILABILITY MANAGEMENT
q Ensures that availability requirements and design feedback are incorporated into the service
design
CAPACITY MANAGEMENT
q Ensures that capacity requirements and design feedback are incorporated into the service
design
COST MANAGEMENT
q Ensures that cost requirements, design feedback, service budget constraints, and pricing
recommendations per service level are incorporated into the service design
Service Level Manager

(Process Owner: SERVICE LEVEL MANAGEMENT)

Reference Model
PROCESS GUIDE
q Defines and negotiates the levels of user service for a specific customer, documenting them
in a Service Level Agreement (SLA)
q Determines fit of standard services based on a customer’s service level requirements, and
designs custom services as necessary, to be built and implemented by Service
Development and Deployment
q Monitors, reports, and reviews the achievement of service levels
q Collects customer-specific service data, analyzes all aspects of service achievements and
regularly reviews the results with the customer
q Initiates actions (e.g., RFC and/or service improvement projects) to overcome problems
identified in meeting service levels, or in other cases where service or SLA change is
warranted
q Meets with customers to review and update SLAs to reflect changing business needs and
customer requirements
SERVICE PLANNING
q Defines and validates the service levels for standard services which are incorporated into
the external design specification
q Develops service level agreement (SLA) templates for standard service levels, to use as the
start of negotiations with customers
q Monitors, evaluates, and passes on via an RFC any operational feedback/data shared
across multiple customers or from strategic customers which may be useful in developing
additional service requirements for an existing standard service
COST MANAGEMENT
q Clarifies service level definition which needs to be costed and priced for the service budget
BUILD & TEST
q Be involved in an advisory role during the custom BUILD & TEST project; clarify custom
internal design specification, as needed, for BUILD & TEST projects.
CHANGE MANAGEMENT
q Assists customers in articulating service change requests
OPERATIONS MANAGEMENT
q Provides SLA requirements for operations
RELEASE TO PRODUCTION
q Clarifies custom internal design specification, as needed, for RELEASE TO PRODUCTION
projects
q Upon service activation, ensures that regular billing and service performance reporting
cycles associated with the activated customer are begun
Interface Roles and Responsibilities
Availability Manager
(Process Owner: AVAILABILITY MANAGEMENT)
q Advises on the availability requirements of new standard services in relation to obtaining the
proper cost/quality balance
q Ensures that the availability criteria of standard service levels are met

Reference Model
PROCESS GUIDE
q Ensures that availability requirements of new IT services can be met by determining the
reliability, maintainability and serviceability requirements from the functional design
q Evaluates the impact of proposed changes on availability designs and plans
q Incorporates uptime, security, and contingency planning considerations in the production of
Availability Designs & Plans discussing the ability of the IT infrastructure to meet the
availability requirements of the business
q Specifies the availability operating guidelines for each component/service function
q Leads the negotiation and development of Operating Level Agreements (OLAs) with
suppliers to ensure that supplier performance enables IT to fulfill its standard and custom
service levels
q Ensures that supplier performance is evaluated regularly and that it conforms to OLA
agreements supporting standard and custom services
q Specifies and maintains all procedures required for the availability management function
q Ensures that service performance data involving uptime, security, and contingency
planning/rehearsal is collected and analyzed on a regular basis
q Initiates changes to ensure that availability requirements are met and to improve availability
level within cost constraints
SERVICE PLANNING
q Supplies availability designs and plans for incorporation into the internal design specification
q Supplies standard service availability analysis as input to the standard service review cycle
q Supplies design feedback on the external design specification as necessary from an
availability perspective
q Negotiates and monitors product/service supplier contracts in order to stabilize standard
service levels
CAPACITY MANAGEMENT
q Supplies availability designs and plans for incorporation into capacity designs and plans
CHANGE MANAGEMENT
q Assesses the impact of Requests for Change (RFCs) on availability and attends Change
Advisory Board (CAB) meetings, when appropriate
COST MANAGEMENT
q Supplies availability designs and plans to provide cost requirements in developing the
service budget
q Develops availability designs and plans for custom services
Capacity Manager
(Process Owner: CAPACITY MANAGEMENT)
CAPACITY MANAGEMENT
q Advises on the capacity requirements of new standard services in relation to obtaining the
proper cost/quality balance
q Ensures that the performance and capacity criteria of standard service levels are met
q Ensures that performance requirements of new IT services can be met by determining the
capacity requirements from the functional design
q Evaluates the impact of proposed changes on the capacity design and plan
q Produces a capacity design and plan discussing the ability of the IT infrastructure to meet
the performance and capacity requirements of the business

Reference Model
PROCESS GUIDE
q Specifies the capacity operating guidelines for each component/service function
q Specifies and maintains all procedures required for the capacity management function
q Collects and analyzes service performance data involving response time, throughput, and
utilization across all customers for standard services to detect trends and to generate
forecasts of capacity growth
q Initiates changes to ensure that capacity requirements are met and to improve the
performance level within cost constraints
q Recommends tuning, where practical, and makes recommendations to IT management
customers on the design and use of systems to help ensure optimum use is made of all
hardware and operating software resources
q Recommends resolutions to performance problems
q Recommends to IT management when to employ demand management techniques (to
dampen user demands on the systems)
q Sizes proposed new systems, including for example business applications, packages,
decision support systems, and office systems with respect to the computer and network
resources required, to determine hardware utilizations, performance service levels and cost
implications
q Ensures that there is adequate IT capacity to meet the required levels of
availability/continuity by identifying when new hardware/software purchases are required
q Provides scenarios for upgrading/downgrading of hardware, software, and the network
q Enables sizing of a replacement system to process critical business applications. Manages
capacity at the contingency site.
q Provide operational service delivery guidelines related to capacity
SERVICE PLANNING
q Supplies the capacity design and plan for incorporation into the internal design specification
for a standard service
q Supplies standard service capacity analysis as input to the standard service review cycle
q Supplies design feedback on the external design specification as necessary from a capacity
perspective
CHANGE MANAGEMENT
q Assesses the impact of Requests for Change (RFCs) on capacity and attends Change
COST MANAGEMENT
q Supplies capacity design and plan to provide cost requirements in developing the service
budget
q Develops capacity design and plan for custom services
Cost Manager
(Process Owner: COST MANAGEMENT)
COST MANAGEMENT
q Establishes charging goals and policies
q Responsible for the production of cost recovery plans and charging algorithms.

Reference Model
PROCESS GUIDE
q Leads the development of cost and charging allocation structures for the IT business (across
all services)
q Leads the cost projection effort for new services
q Ensures that projected revenues for new services are analyzed and validated
q Develops service budgets
q Analyzes and reviews the cost management system on a regular basis to ensure its
effectiveness and to recommend improvements where needed.
q Produces regular reports about the effectiveness of the system for IT Management.
q Publicizes the cost management system to the organization, ensures that all users are
familiar with procedures and are satisfied with the day-to-day operation of the system.
q Specifies, initiates and maintains the cost management system and information structure
including cost centers and classifications of workload and equipment requirements.
q Supervises the collation of all costs associated with the provision of IT services.
q Supervises the monitoring of IT service costs to ensure that business objectives (including
the creation of profits from IT service provision, where appropriate) are achieved.
q Ensures that total cost of ownership is tracked and reported
q Ensures that financial assets are managed appropriately
SERVICE PLANNING
q Provides a service budget and design feedback so that appropriate standard service pricing
can be established per service level.
q Supplies service budget to provide cost guidelines for internal design specification
q Supplies standard service cost analysis as input to the standard service review cycle
q Provides cost implications of the various scenerios for availability improvement
q Ensures that cost requirements for availability designs and plans are incorporated into the
service budget.
CHANGE MANAGEMENT
q Assesses the impact of Requests for Change (RFCs) on service cost and attends Change
q Provides operational service delivery guidelines related to cost
CAPACITY MANAGEMENT
q Provides cost implications of the various scenerios for capacity improvement
q Provides cost information to cost capacity improvements to the infrastructure so that the ROI
can be calculated to justify the IT investment.
q Ensures that cost requirements for capacity designs and plans are incorporated into the
service budget.
q Provides actual customer-specific cost analysis to the Service Level Manager so that
customer reports can be developed, and so that service delivery efficiency can be evaluated,
and improved, if necessary.
q Develops service budget for custom services
Workorder Project Manager
All Processes Receiving a Workorder
q Manage workorder projects
Reference Model
PROCESS GUIDE
q Coordinate workorder project team members
q Coordinates workorder tasks within a workorder project
q Progresses workorders
q Ensure workorder status is reported
CHANGE MANAGEMENT
q Builds and manages workorder project plans, timelines, tasks, etc.
Process Technology / Tool Requirements

CMDB Data Entry Tool
Definition
Applicable to configuration item owners, workorder project team members, and others who have a
need to update Configuration Management data, this tool should provide the following features:
q Permit entry of CI registration data
q Review existing CMDB data based on key (e.g., CI name, workorder number, RFC number,
etc.)
q Update only that data which has changed leaving other data as is
q Require context-dependent data be entered and consistent
q Apply changes to all physical repositories of data referred to by the logical CMDB entry
Following are examples of the kinds of specific tools that might be useful for entering CMDB data:
q Request for Change Data Entry Tool
As an example, entry of RFCs by any IT staff member or customer should be allowed by this
tool. The user’s basic information (e.g., name, phone number, organization, etc.) should be
automatically supplied. The interface should be available from any location at any time; it
should not be dependent on the customer’s agreed service levels.
q Workorder Status Data Entry Tool
This tool should let individuals record information about a workorder (e.g., progress,
timeframe, resources, issues, etc.). Preferably, the tool should require progress and
timeframe updates. Ideally, the tool should prompt the owner of a workorder for status on a
periodic basis.
Used in the Following Processes:
X Availability Management X Configuration Management X Operations Management
X Build & Test X Cost Management X Problem Management
X Business Assessment X Customer Management X Release to Production
X Capacity Management X Incident Management X Service Level Management
X Change Management X IT Strategy Development X Service Planning
CMDB Query Tool

Definition
Ideally an online tool, query capability should provide authorized retrieval of Configuration
Management Database (CMDB) data by various key items. CMDB data includes:

Reference Model
PROCESS GUIDE
q configuration item (CI) records (includes entries for hardware, software, and documents
along with the physical documents themselves, and change, incident, and problem records)
q CI attributes and relationships (name, model, version, location, owner, status, cost,
configuration parameters, hierarchical relationships with other CIs)
q service performance data (component usage data, resource performance data, cost data,
service metric data), which needs to be able to be queriable by cost unit (e.g., business unit)
Since CMDB data are dispersed among many repositories, the query tool must have the following
capabilities:
q Locate requested data
q Ensure the requestor is authorized to access the data
q Retrieve requested data
q Organize the data (e.g., sort, tally, group, etc.)
q Package data as requested (e.g., report format, data dump, hardcopy, electronic files, etc.)
q Place query results in a location specified as part of the query
X Availability Management X Configuration Management X Operations Management
X Build & Test X Cost Management X Problem Management
X Business Assessment X Customer Management X Release to Production
X Capacity Management X Incident Management X Service Level Management
X Change Management X IT Strategy Development X Service Planning
Data Manipulation and Reporting Tool

Definition
This tool manipulates, organizes and formats service data in the CMDB for presentation and
consolidated reporting purposes. Interactive database query tools can be used, provided that they
have sufficient functionality to perform basic mathematical and statistical operations.
A fourth generation or SQL language or reporting package that allows data to be stored, retrieved,
manipulated, displayed in graphical form and reported in a flexible, ad-hoc manner is essential for
the reporting aspect of the tool.
X Availability Management Configuration Management Operations Management

X Build & Test X Cost Management Problem Management
X Business Assessment X Customer Management Release to Production
X Capacity Management Incident Management X Service Level Management
Change Management X IT Strategy Development X Service Planning
Project Management Methodology

Definition
A project management methodology refers to project management tools, templates, project
lifecycles, project scheduling software, etc. Where the size of the task warrants it, a project
management system can be used to review and control the development of the plan.

Reference Model
PROCESS GUIDE
Availability Management Configuration Management Operations Management
X Build & Test Cost Management Problem Management
Business Assessment Customer Management X Release to Production
Capacity Management Incident Management X Service Level Management
X Change Management IT Strategy Development X Service Planning
Service Design Templates

Definition
Templates that walk the user through the following service design activities:
q functional requirements definition (e.g., External Design Specification)
q specific service functionality requirements, objectives, and characteristics
q service level definition and pricing for specified target market segments
q service demand projections per service level, projected over time
q detailed specifications of inputs, outputs, and customer deliverables
q manufacturing/procurement design (e.g., Internal Design Specification)
q service function/component descriptions and requirements
q service data attributes and relationships definition, data structure definitions, data flow
requirements between functions
q delivery process functional design
q enabling technology specifications (functional requirements)
q service/function roles and responsibilities, organizational change requirements, skill
development requirements, staffing requirements, training strategy
q control points or checkpoints and thresholds which need to be put in place
q requirements specification of support guidelines, reference materials, troubleshooting
guides, etc. for support of the service
q deployment requirements, guidelines, constraints
q procurement specifications for service functions/components which are purchased from
a product/service supplier
Build & Test Cost Management Problem Management
Business Assessment Customer Management Release to Production
Change Management IT Strategy Development X Service Planning
Service Improvement Methodology

Definition
Service Improvement Methodology is an integrated set of process and tools which facilitates a
continuous improvement cycle on services, largely based on the total quality control approach. The

Reference Model
PROCESS GUIDE
methodology supports the objective of making sound business decisions based on actual service
performance data by promoting the plan/do/check/act approach. Once an issue is selected which
substantially impacts the performance of a particular service, the current situation is defined,
targetted data is collected and analyzed, a root cause is identified, possible solutions are evaluated
and the best choice is selected, the solution is developed and implemented, and monitoring is
established to validate that the solution addressed the root cause.
Service Improvement Methodology components include:
q Issue selection and development process
q Cause and effect development process and diagram template (fishbone)
q Data collection/monitoring process and enabling tools
q Data analysis process and statistical tools (pareto, control charts, histogram, scattergram,
time-series plot)
q TQC storyboard template
Build & Test X Cost Management Problem Management
Service Life Cycle

Definition
Concurrently with the Service Planning process, a service life cycle should be started for each
service identified in the service plan. Consisting of checklists and various phases, the life cycle is a
tool for managing a service.
Capacity Management Incident Management Service Level Management
Service Planning Templates

Definition
Templates that walk the user through the following service planning activities:
q new/updated service value proposition development
q value delivery system development
q revenue and cost projection development
Reference Model
PROCESS GUIDE
q service risk analysis
q capability gap analysis
q buy versus build decision
q ROI on service development
q new capability development project planning
q portfolio impact evaluation
q service positioning
Service Pricing Tool

Definition
An electronic tool used to automate the standard and custom service pricing efforts, incorporating
service delivery cost structure, service level options, profit uplifts, value-based pricing index, etc.
Word Processing, Spreadsheet, and Graphic Presentation Software

Definition
These PC-based tools are used to produce and publish models, plans, reports, and studies. They
should be able to read data from the CMDB and place documents in the CMDB. They should allow
for the creation and use of templates for speed and consistency of output. They should be able to
track revisions. They should allow collaborative work on a document.
Build & Test X Cost Management Problem Management
Reference Model
PROCESS GUIDE
Process Variances from ITIL

In the ITIL guide Planning and Control for IT Services, ideas relating to HP’s ITSM Service Planning process are
touched upon, but currently no such process exists in the ITIL library.
HP has dedicated a separate, distinct process to the concepts ITIL has covered incompletely and only briefly,
because HP understands the importance of:
q Investing in the definition, design and development of a standard service which can be leveraged across
multiple customers efficiently and effectively
q Planning as a service management discipline
q Providing a linkage between market input, IT strategy, and effective service design in order to add value
to customer businesses
q Overall service portfolio alignment, optimization and management
This process includes refinement of the service design, breaking down the service definition into appropriate
service functions and components, providing the granularity necessary to develop specifications which guide the
purchase or development in-house and deployment of capabilities needed to support the service.
Service Planning includes, as part of its scope, the design of business application services (applications are
often a component of an IT service). ITIL does not include business applications as components within an IT
service (it only includes the IT infrastructure applications which support business applications).
Supporting ITIL References

q Planning and Control for IT Services (1994)

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IT Service Management

Process: Service Planning

Service Level Service

Availability Capacity Cost

Service Design & Management Service Development & Deployment

© Hewlett-Packard Version: 12 May 1998 Page 1 of 52

q Plan for new standard service

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q Develop management reports

IT Service Market Service

Availability Capacity Cost

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Availability Designs and Plans

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Data Flow Overview

Capacity Design and Plan

Data Flow Overview

Service 4. Service Budget

CI Attributes and Relationships

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Data Flow Overview

1. Billing 2. Service Configuration

Service Level 4. Service Business

3. Service Budget Service

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Data Flow Overview

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Service Performance Data

Performance Service Level

CI Attributes and Relationships

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Service Level Configuration Customer

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Internal Design Specification

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Build & Test

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Availability 1. Availability Service Planning

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Change Service Level

Portfolio Review Cycle

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Service Review Cycle

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Process Roles and Responsibilities

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