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IT Infrastructure Services
ITIL Foundation Level - Certification Guide

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Table of Contents

1.0 Goal of the Course: 6


1.1 Features 6
1.2 TOPICS 6
1.2.1 ITIL IT Service Management Processes 6
1.2.2 ITIL Service Support Processes: 6
1.2.3 ITIL Service Delivery Processes: 7
2.0 Introduction 8

3.0 IT Service Management 11


3.1 IT Service Management – Background 11
3.2 Services and Quality 13
3.2.1 Quality Assurance 14
3.2.2 Human Resource Management 23
4.0 Introduction to ITIL 28
4.1 Background 28
4.2 Advantages to the Customer/End User: 29
4.3 Advantages to the IT Organization: 29
4.4 Potential disadvantages: 30
4.5 Organizations 31

5.0 Service Desk 43


5.1 Introduction 43
5.2 Objective 43
5.3 Process Description 44
5.4 Activities 44

6.0 Activities 44
6.1 Roles 45
6.2 Relationships 46
6.3 Benefits 47
6.4 Summary 48
6.5 Common Problems 49
6.6 Metrics 50
6.7 Service Desk Structure - Best Practice 50
6.7.1 Virtual Service Desk 53
6.8 Essential Terms 54

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7.0 Incident Management 56


7.1 Introduction 56
7.2 Objective 56
7.3 Process Description 57
7.4 Activities 57
7.4.1 Incident detection and recording 58
7.4.2 Classification and initial support 58
7.4.3 Investigation and diagnosis 59
7.4.4 Resolution and recovery 59
7.4.5 Incident closure 59
7.4.6 Incident ownership, monitoring, tracking and communication 60
7.5 Roles 60
7.6 Relationships 60
7.6.1 Configuration management: 60
7.6.2 Problem Management 61
7.6.3 Change Management 61
7.6.4 Service Delivery Processes 61
7.7 Benefits 62
7.8 Common Problems 62
7.9 Metrics 63
7.10 Best practice 63
7.10.1 Incident Management tools: 63
7.10.2 Different types of escalation 64
7.10.3 Interesting Websites 64
7.11 Essential Terms 65

8.0 Problem Management 67


8.1 Introduction 67
8.2 Objective 68
8.3 Process Description 68
8.4 Activities 71
8.5 Roles 75
8.6 Benefits 77
8.7 Common Problems 78
8.8 Metrics 78
8.9 Best practices 79
8.10 Essential Terms 80

9.0 Change Management 81


9.1 Introduction 81
9.2 Objective 82

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9.3 Process Description 82


9.4 Activities 84
9.4.1 Recording 84
9.4.2 Accepting (Rejecting) 84
9.4.3 Classifying 84
9.4.4 Planning 84
9.4.5 Coordination 84
9.4.6 Evaluating 85
9.5 Roles 85
9.5.1 Change Manager 85
9.5.2 Change Advisory Board (CAB) 86
9.5.3 Change Advisory Board/Emergency Committee (CAB/EC) 86
9.6 Relationships 86
9.7 Benefits 88
9.8 Common Problems 88
9.9 Metrics 89
9.10 Best practices 89
9.10.1 Interesting websites 89
9.11 Essential Terms 90

10.0 Configuration Management 91


10.1 Introduction 91
10.2 Objective 91
10.3 Process Description 92
10.4 Activities 93
10.4.1 Planning: 94
10.4.2 Identification: 95
10.4.3 Status accounting 95
10.4.4 Verification and audit 96
10.5 Roles 96
10.6 Relationships 97
10.7 Benefits 97
10.8 Common Problems 98
10.9 Metrics 99
10.9.1 Key performance indicators 99
10.10 Best practices 100
10.10.1 The CMDB 100
10.10.2 Interesting Websites 101
10.11 Essential Terms 101

11.0 Release Management 104


11.1 Introduction 104
11.2 Objective 104

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11.3 Process Description 105


11.4 Activities 106
11.5 Roles 110
11.6 Relationships 110
11.7 Benefits 112
11.8 Common Problems 113
11.9 Metrics 113
11.10 Best practices 114
11.10.1 Interesting web sites 115
11.11 Essential Terms 115

12.0 Service Level Management 118


12.1 Introduction 118

13.0 Financial Management 135

14.0 Availability Manageme nt 151


14.1 Introduction 151
14.2 Objective 152
14.3 Process Description 153
14.4 Activities 155
14.5 Roles 158
14.6 Relationships 158
14.7 Benefits 160
14.8 Common Problems 161
14.9 Metrics 162
14.10 Best practices 162
14.11 Essentials (terminology) 163

15.0 Capacity Management 165


15.1 Introduction 165
15.2 Objective 165
15.3 Process Description 166
15.4 Activities 168
15.5 Roles 169
15.6 Relationships 170
15.7 Common Problems 172
15.8 Essentials (terminology) 176

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16.0 IT Service Continuity Management 177


16.1 Introduction 177
16.2 Objective 178
16.3 Process Description 179
16.4 Activities 181
16.5 Roles 185
16.6 Relationships 185
16.7 Benefits 187
16.8 Common Problems 188
16.9 Metrics 189
16.10 Best practices 190
16.11 Essentials (terminology) 191

17.0 Security Management 193


17.1 Introduction 193
17.2 Objective 195
17.3 Process Description 196
17.4 Activities 197
17.5 Roles 198
17.6 Relationships 198
17.7 Benefits 199
17.8 Common Problems 200
17.9 Metrics 201
17.10 Best practices 201
17.11 Essentials (terminology) 200

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1.0 Goal of the Course:

The Art of Service’s ITIL IT Service Management Essentials Online is a Web-based training course
for IT Service Management good practice.

The course provides participants with a customer-focused, process-oriented approach to IT Service


Management and prepares students to take the the EXIN exan 'Foundation Certificate in IT Service
Management'.

The course delivers:


? An introduction to IT Service Management and ITIL

? Understanding of the Structure of the ITIL 'library'

? ITIL’s key concepts and objectives

1.1 Features
The IT Service Management Essentials Online course is an online presentation with added
features including:

• Chat room

• Bulletin Board

• Progress reports

• Short tests

• 40 question mock exam

• Glossary, FAQs, Bookmarks, Searching, Notes and more

1.2 TOPICS
1.2.1 ITIL IT Service Management Processes

• Service Desk: Understanding its role and function in the IT infrastructure and its relationship
with

1.2.2 ITIL Service Support Processes:

• Incident Management: Definition of an incident, description of Incident Control (including


recording, classification, co-ordination, matching and resolution)

• Problem Management: Definition of a problem and known error, proactive problem


management (identification of problems and prevention of further incidents)

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• Configuration Management: Defining a configuration item and the configuration management


database; impact of Configuration Management on other IT processes.

• Change Management: Definition of a change and request for change (RFC); description of
change control and change procedures; role of the change advisory board (CAB) and
CAB/EC (for handling urgent changes).

• Release Management: Scope and concepts; definition of definitive software library(DSL) and
definitive hardware store (DHS); description of planning, testing and implementing.

1.2.3 ITIL Service Delivery Processes:

• Service Level Management: Definition of a service catalogue; identifying, negotiating,


monitoring and reviewing service level agreements (SLAs).

• Financial Management for IT Services: Reviews of budgeting, charging and IT accounting;


analysis of running costs and charging policies.

• Availability Management: Review of reliability, availability, resilience, maintainability and


serviceability, calculating availability, review of planning, monitoring and reporting.

• Capacity Management: Review of application sizing, workload, performance, demand and


resource management and their inputs to modelling, definition of the capacity management
database and contents of the capacity plan.

• IT Service Continuity Management: Re-view of business continuity, risk analysis and risk
management, defining assets, threats, vulnerabilities and countermeasures (protection and
recovery), development, testing and maintenance of the IT Service Continuity Plan, IT
recovery options and management roles.

• ..underpinned by Security Management

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2.0 Introduction

In recent decades IT developments have changed the way that most businesses operate. The
changes are most evident in the various business processes of any organization. Examples of
business processes are "the sales process" (eg. Marketing generates leads and sends through to
Sales, Sales develops relationships and prepares proposals, Administration prints and sends the
material to the client and ensures that there is an action against the sales person to follow up the
proposal, etc. etc.). All of these business processes rely a great deal on computer based tools and
the underlying technology.

Since the introduction of the PC, LAN, client/server technology and the Internet, organizations can
bring their products and services to markets faster than ever before. These developments are
responsible for the transition from the industrial to the information age. In the information age,
everything has become faster and more dynamic.

Traditional hierarchical organizations often find it difficult to respond to rapidly changing markets,
and therefore there is now a trend towards less hierarchical and more flexible organizations. The
emphasis is now on horizontal processes, and decision-making authority is increasingly granted to
personnel at a lower level. IT Service Management operating & tactical processes were developed
against this background - where the process is paramount and the focus moves away from the
"silo" departmental or functional structure.

In the 1980s, the quality of the IT services provided to the British government lead the CCTA (Central
Computer and Telecommunications Agency as it was referred to - now the Office of Government
Commerce, OGC) was instructed to develop an approach for efficient and financially effective use of
IT resources by ministries and other British public sector organizations. The aim was to develop a
framework/methodology/approach that was vendor/supplier independent. This resulted in the
Information Technology Infrastructure Library™ (ITIL). ITIL v1 grew from a collection of best practices
observed in the IT service industry.

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The ITIL framework provides a detailed description of a number of important IT practices, with
comprehensive checklists, tasks, procedures and responsibilities which can be tailored to any IT
organization. Where possible, these practices have been defined as processes covering the major
activities of IT service organizations. The broad subject area covered by the ITIL publications makes
it useful to refer to them regularly and to use them to set new improvement objectives for the IT
organization. The organization can grow and mature with them.

A number of other IT Service Management frameworks have been developed on the basis of ITIL,
generally by commercial organizations. This is one of the reasons why ITIL has become the de
facto standard for describing a number of fundamental processes in IT Service Management.

Special note: The most widely known "other frameworks" that have been based on ITIL is the
Microsoft Operations Framework. Microsoft do not try and conceal their proprietary framework has
it's basis in ITIL. They in fact praise ITIL as an excellent starting point for organizations with
Microsoft Environments. What Microsoft have done however, is extend ITIL and create a series of
other processes and specific concepts.

ITIL is often referred to as Best Practice, although the relatively new term of "good practice" is
starting to be widely used.

Note: The term "best practice" will often spark heated debate among some IT professionals. If you
are not certain then the term "good practice" may be a safer option to use. The ITIL material claims
that it is Best Practice.

The broader adoption of ITIL has been hampered by the lack of a basic, but effective introductory
textbook. This course is the electronic version of this missing text. The course is beneficial for
anyone involved in IT Service Management.

This edition of this Course is based upon The Art of Service's Course material, developed as an
introduction to IT Service Management. That work was based on management summaries and
descriptions in official ITIL publications. Given the desire for a broad consensus in the ITIL field, new
developments, additional material and contributions from ITIL professionals are welcome. They will
be discussed by the editors and where appropriate incorporated into new editions.

Given the rapid changes in this field, the ITIL books do not always describe the latest developments.
This is because ITIL is primarily a collection of best practices taken from a variety of people in a

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wide cross section of industry. When writing this Course we aimed to incorporate current
developments in the field, without substantially diverting from the ITIL publications.

Therefore the course can be used both to prepare for the official ITIL Service Management
Foundation exam and as a general introduction to the broader area of IT Service Management.

This course does not address the planning and implementation of ITIL processes. In chapter 2 ‘IT
Service Management’ it does however address, in a more general way, relevant matters in IT Service
Management, in terms of quality, processes and policies.

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3.0 IT Service Management

3.1 IT Service Management – Background


In this section we will look at services, quality, organization, policy and process management. All
these topics provide the background for the development of a systematic approach to IT Service
Management.

The IT Service Management processes described in this course (also referred to as IT


Management) are best understood against the background of the concepts about organizations,
quality and services which influenced the development of the discipline. Familiarity with these
terms also helps to understand the links between the various elements of the IT Infrastructure
Library (ITIL). ITIL is by far the best known description of IT Service Management and is therefore
used as the foundation for this Course.

The Objective Tree

The objective tree is used to help all members of the organization understand the benefits of
ITSM. Starting at the top of the tree, the most important consideration for any business is that the
Organization’s Objectives are met (eg. Increased market share, lower costs and higher customer
satisfaction).

Failure to meet the overall objectives means that the organization ceases to function (no matter
how well the IT department is run). In order for the organization’s objectives to be met, there must
be a series of business departments working together in Business Processes. An example of a
business process is the "enrollment process" in a University. The "enrollment process" involves
Admissions (to capture basic student details), Security (to issue id-card), Library (to provide
required book lists), etc.

Each of these business processes needs a variety of services (IT Service Provision in our
Objective Tree) in order to work. In our University example the Admissions department has a
Student system, Security has it's Security system and the Library has a Library system (hopefully
all share a common repository of student information, but they all exist for a different reason).

The next branch of the Objective Tree is Service Management. It is at this layer that IT
professionals must consider how they need to manage all the infrastructure (including hardware,
software, tools, etc.) in order to make the required Services available, to the Business Processes
so that the Organization Objectives can be met.

Getting this right earns everyone a medal!

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This chapter introduces the following subjects:

• The section on the provision of services and quality addresses the relationship between
the quality experienced by the customer's organizational end users, and quality
management by the provider of the IT services.
• The section on organization and policies addresses concepts such as vision, objectives,
and policies and discusses issues such as planning, corporate culture and Human
Resource Management. This section also discusses the coordination between the
business processes of a company and the IT activities.
• The section on process management looks at the control of IT service processes

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3.2 Services and Quality


Organizations are often highly dependent on their IT services and expect the IT services not only to
support the organization, but also to present new options to achieve the objectives of the
organization. Furthermore, the high expectations of customers on IT Services tend to change
significantly over time (usually in a downgrading of expectations).

Providers of IT services can no longer afford to focus on technology. They now have to consider the
quality of the services they provide and focus on the relationship with their customers.

The provision of IT services refers to the full management of the IT infrastructure. Hardware,
software, tools and relationships.

Before buying a product in a shop, we normally assess the quality such as the appearance,
usefulness for the task and robustness. In a shop, the customer has few opportunities to influence
the product quality. This is because the product is produced in a factory. By effectively controlling
the production plant, the manufacturer will try to deliver a fairly constant quality. In this example,
manufacture, sales and consumption of the product are quite separate.

However, services are provided through interaction with the customer. Services cannot be
assessed in advance, but only when they are provided. The quality of a service depends to some
extent on the way in which the service provider and the customer interact. In contrast to the
manufacturing process, customer and provider can still makes changes when the services are
being delivered. How the customer perceives the service and what the provider thinks they supply,
both depend largely on their personal experiences and expectations.

The process of providing a service is a combination of production and use, in which the provider
and customer participate simultaneously.

The perception of the customer is essential in the provision of services. Customers will generally
use the following questions to assess the quality of the service:

• Does the service align with my expectations?

• Can I expect a similar service the next time?

• Is the service provided at a reasonable cost?

Whether or not the service fulfils the expectations depends primarily on how effectively the
deliverables were agreed on in the first place, even more so than on how well the supplier provides
the service.

A continuing dialogue with the customer is essential to refine the services and to ensure that
both the customer and the supplier know what is expected of the service. In a restaurant, the
waiter will first explain the menu, and ask if everything is all right when serving a new course.

The waiter actively coordinates supply and demand throughout the meal. This experience with
customers is then used to improve future customer contact.

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The quality of a service refers to the extent to which the service fulfils the requirements and
expectations of the customer. To be able to provide quality, the supplier should continuously
assess how the service is perceived and what the customer expects in the future.

Another customer may well consider what one customer considers normal as a special
requirement.

Eventually a customer will get used to something considered special at the start. The results of
the assessment can be used to determine if the service should be modified, if the customer should
be provided with more information, or if the price should be changed.

Quality is the totality of characteristics of a product or service that bear on its ability to satisfy
stated and implied needs (ISO-8402).

Reasonable costs may be considered as a derived requirement. Once it has been agreed on what
is to be expected of the service, the next step is to agree on what it may cost. At this stage the
service provider has to be aware of the costs they incur, and the current market rates for
comparable services.

A customer will be dissatisfied about a service provider who occasionally exceeds the
expectations but disappoints at other times. Providing a constant quality is one of the most
important, but also one of the most difficult aspects of the service industry.

For example, a restaurant will have to purchase fresh ingredients, the chefs will have to work
together to provide consistent results, and hopefully there are no major differences in style among
the waiting staff. A restaurant will only be awarded three Michelin Stars when it manages to
provide the same high quality over an extended period. This does not often happen: there are
changes among the waiting staff, a successful approach may not last, and chefs leave to open
their own restaurants. Providing a constant high quality also means that the component activities
have to be coordinated: the more efficiently the kitchen operates, the more quickly the guests can
be served.

Therefore, when providing a service, the overall quality is the result of the quality of a number of
component processes that together form the overall service. These component processes formed
a chain; a series of linked activities. Effective coordination of the component processes requires
not only high quality at each stage, but also consistent quality.

3.2.1 Quality Assurance

Supplying products or services requires activities. The quality of the product or service depends
largely on the way in which these activities are organized. Deming’s quality life cycle provides a
simple and effective model to address quality. The model assumes that to provide appropriate
quality, the following steps must be undertaken repeatedly:

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• Plan: Who should do what, when, how, using what?

• Do: Implementation of the planned activities.

• Check: Determine if the activities provided the expected result.

• Act: Adjust the plans based on information gathered while checking.

To be able to make use of this life-cycle approach, the activities of supplying products and
services must be divided into processes, each with their own plans and opportunities for
conducting checks. It must be clear who is responsible in the organization and what authority they
have to change plans and procedures, not for only for each of the activities, but also for each of the
processes.

Quality management is the responsibility of everyone working in the organization providing the
service. Every employee has to be aware of how their contribution to the organization affects the
quality of the work provided by their colleagues, and eventually the services provided by the
organization as a whole. Quality management also means continuously looking for opportunities to
improve the organization and implementing quality improvement activities.

Quality assurance is a policy matter within the organization. It is the whole of the measures and
procedures, which the organization uses to ensure that the services provided, continue to fulfill the
expectations of the customer and the relevant agreements. Quality assurance ensures that
improvements resulting from quality management are maintained.

A quality system is the organizational structure related to responsibilities, procedures and


resources for implementing quality management.

The ISO 9000 series of standards is often used to develop, define, assess and improve quality
systems.

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Dr. Edward Deming was an American statistician brought to Japan by general Douglas MacArthur
after the Second World War to help rebuild the destroyed economy. He had developed theories
about the best possible use of expertise and creativity in organizations in the United States in the
1930s, but because of the Depression his ideas were not accepted in the US. However, his
optimization methods were successfully adopted in Japan.

Some of Deming’s typical statements:

• ‘The customer is the most important part of the production line.’

• ‘It is not enough to have satisfied customers, the profit comes from returning customers
and those who praise your product or service to friends and acquaintances.’

• ‘The key to quality is to reduce variance.’

• ‘Break down barriers between departments.’

• ‘Managers should learn to take responsibility and provide leadership’

• ‘Improve constantly.’

• ‘Institute a vigorous program of education and self-improvement.’

• ‘Institute training on the job.’

• ‘The transformation is everybody's job.’

ISO-9000

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Some organizations require their suppliers to hold an ISO 9001 or ISO 9002 certificate. Such a
certificate proves that the supplier has an adequate quality system whose effectiveness is
regularly assessed by an independent auditor.

ISO is the International Standards Organization. A quality system that complies with the ISO
standard testifies that the supplier has taken measures to be able to provide the quality required
by their customers;

• the management regularly assesses the operation of the quality system, and uses the
results of internal audits to implement improvement measures where necessary;

• the suppliers’ procedures are documented and communicated to those affected by them;

• customer complaints are recorded, dealt with in a reasonable time, and used to improve the
service where possible;

• the supplier controls the production processes and can improve them.

An ISO certificate does not provide an absolute guarantee about the quality of the service provided,
however, it does indicate that the supplier takes quality assurance seriously and is prepared to
discuss it.

The new ISO 9000 series of standards, ISO-9000-2000, puts even greater emphasis than the
previous standard on the ability of an organization to learn from experience and to implement
continuous quality improvement.

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Organizational Maturity

Experience with improving the quality of IT services has shown that it is rarely sufficient to simply
define current practices. The causes of a mismatch between the service provided and the
customer’s requirements are often related to the way in which the IT organization is managed. A
permanent quality improvement focus demands a certain degree of maturity of the organization.

The European Foundation for Quality Management (EFQM) model can be useful in determining the
maturity of an organization. It identifies the major areas to be considered when managing an
organization.

Deming’s Quality Life-Cycle is incorporated in the EFQM model. Based on the outcomes from
"result areas" actions are taken (strategy, policies). These actions serve to underpin the planning
(e.g. the structure of the processes), that should lead to the desired results. The EFQM identifies
nine areas.

In 1988 fourteen large European companies, with the support of the European Commission, set up
the European Foundation for Quality Management.

The objective of the EFQM is to promote Total Quality Management, aimed at excelling in
customer satisfaction, employee satisfaction and appreciation by society, and performance
results.

The EFQM ‘Model of Business Excellence’, generally known simply as the EFQM model, is widely
accepted as the major strategic framework for managing an organization aimed at the balanced,
continuing improvement of all aspects relevant to the business.

Over 600 European businesses and research organizations have now joined the EFQM. For further
information: http://www.efqm.org.

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CMM

In the IT industry, the process maturity improvement process is best known in the context of the
Capability Maturity Model (CMM). The Software Engineering Institute (SEI) of Carnegie Mellon
University developed this process improvement method. CMM is concerned with improving the
maturity of a software creation processes. CMM includes the following levels:

• Initial - the processes occur ad hoc.

• Repeatable - the processes have been designed such that the service quality should be
repeatable.

• Defined - the processes have been documented, standardized and integrated.

• Managed - the organization measures the results and consciously uses them to improve
the quality of its services.

• Optimizing - the organization consciously optimizes the design of its processes to


improve the quality of its services, or to develop new technology or services.

Maturity models based on the CMM levels of maturity have also been developed for IT Service
Management.

When assessing the maturity of an organization, we cannot restrict ourselves to the service
provider. The level of maturity of the customer is also important. If there are large differences in
maturity between the supplier and the customer, then these will have to be considered to prevent a
mismatch in the approach, methods and mutual expectations.

Specifically, this affects the communication between the customer and the supplier. It is advisable
to bring both organizations to the same level of development, and to operate at that level, or to
adjust the communication in line with the lower level.

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Organization and Policies


We know that service quality is closely associated with the quality of an organization and its
policies.

This section will discuss several important aspects of the organization and policies that
are relevant to process management.

Vision, objectives and policies


An organization is a form of cooperation between people. Any organization, from a darts club to a
multinational company, depends on a concept of why it is worth cooperating in the organization.
The shared vision might be that you can make money selling or you can improve the environment.
However, to be attractive to all stakeholders (e.g. customers, investors, personnel) as an
organization it has to be communicated to clients why they should do business with you. For
example because you are the best, cheapest or most fun. You will want to build up a suitable
image. Think of the things that stick in your mind – “Just Do It” (Nike).

To communicate the vision, the organization creates a Mission Statement. The mission
statement is a short, clear description of the objectives of the organization and the values it
believes in.

The objectives of the organization describe in greater detail what it wants to accomplish. Good
objectives have five essential elements: they have to be Specific, Measurable, Appropriate,
Realistic and Time-bound (SMART).

The policy of the organization is the combination of all decisions and measures taken to define
and realize the objectives. In its policies, the organization will priorities objectives and decide how
the objectives will be reached. Of course, priorities may change over time, depending on the
circumstances. The clearer the organization’s policies are to all stakeholders, the less needs to
be defined about how personnel are supposed to do their work. Instead of detailed procedures,
personnel can independently use the policies as their guideline. Clearly formulated policies
contribute to a flexible organization, as all levels in the organization can respond more quickly to
changing circumstances.

Implementing policies in the form of specific activities requires planning. Plans are usually divided
into stages to provide milestones where progress can be monitored. For example, the policies can
be used to draw up an annual plan, which is then used to develop the budgets. An organizational
annual plan can be further developed into greater detail as departmental plans, quarterly plans or
project plans. Each of these plans contains a number of elements: an activity schedule, the
required resources, and agreements about the quality and quantity of the products or services to

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be delivered.

Realization of the planned activities requires action. Actions are allocated to personnel as tasks,
or outsourced to external organizations.

When translating the mission of the organization into objectives, policies, planning and tasks,
there is the risk that after some time, the mission, objectives or policies are forgotten. It is
therefore important that at every stage we measure if the organization is still moving in the right
direction, and remedial action is taken where necessary.

We have to measure if the organization or processes fulfill the objectives, and there are various
methods available for this. One of the most common methods in business is the Balanced Score
Card, or BSC. In this method, the objectives of the organization or process are used to define
Critical Success Factors (CSF). CSFs are defined for a number of areas of interest or
perspectives: customers/market, business processes, personnel/innovation and finance. The
parameters used to measure if the CSFs meet the standards are known as Key Performance
Indicators (KPI). Where necessary, these can be subdivided into Performance Indicators (PI).

Key performance indicators, or KPIs, are parameters for measuring progress relative to key
objectives or Critical Success Factors (CSF) in the organization.

The outcome of the measurements and changing circumstances can lead to modification of the
processes, tasks, plans, and policies, and even to a change in the objectives, mission and vision
of the organization. The more mature an organization is, the better it deals with such changes.

If the IT department supports the interests of the business, the objectives of the IT department will
be derived from the business objectives. The IT department, for example, might have the following
objective: ‘To contribute to the competitive strength of the business’. The specific objectives of the
IT department will then be developed on the basis of this general objective.

Depending on the nature of the business, objectives will be defined for the IT department with
respect to safety, accessibility, response speed, technical sophistication and so on.

Planning Horizon

When considering the policies and planning of an IT department, we should be aware of the links
between planning for the business as a whole and the application systems and the technical
infrastructure used by the business. When planning the network and applications of a business,
the IT department will have to stay ahead of the overall planning to ensure that the business has
an IT infrastructure in which it can develop and grow into. The figure below gives an example of the
links between the various plans.

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Technical infrastructure has the longest planning horizon and in its support role it has fewer
clear links with the substantive business activities. It takes time to develop a technical
infrastructure and the fact that information systems and the business depend on the technical
infrastructure, limits the speed at which changes can be implemented. Furthermore, developing a
technical infrastructure demands significant investment and the period over which it can be
depreciated has to be considered.

The planning horizon is shorter for applications as they are designed for specific business
purposes. Application life cycle planning is primarily based on the business functions to be
provided by the system, after which the underlying technology is considered.

Business plans, based on the organization’s strategy, normally cover one calendar or financial
year. Budgets, planning and progress reports all fall within this period. In some markets, the
planning cycle time has become even shorter as the cycle time for product development has also
decreased.

Planning should address four elements:

• Time - this is the easiest factor to determine. It is defined by a starting date and ending date,
and is often divided into stages.

• Quantity - the objectives have to be made measurable to monitor progress. Terms such as
‘improved’ and ‘quicker’ are insufficient for planning purposes.

• Quality - the quality of the deliverables (results) should be appropriate for the objective.

• Costs and revenues - the deliverables must be in proportion to the expected costs, efforts and
revenues.

Differences between the planning horizons occur not only between areas, but also between the
various levels of activities and processes (strategic, tactic and operational).

Culture

Organizations that want to change (for example to improve the quality of their services) will
eventually be confronted with the current organizational culture. The organizational culture, or

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corporate culture, refers to the way in which people deal with each other in the organization; the
way in which decisions are made and implemented; and the attitude of employees to their work,
customers, suppliers, superiors and colleagues.

Culture, which depends on the standards and values of the people in the organization, cannot be
changed, but it can be influenced. Influencing the culture of an organization requires leadership in
the form of a clear and consistent policies and a supportive personnel policy.

The corporate culture can have a major influence on the provision of IT services. This is due to the
fact that businesses value innovation in different ways. In a stable organization, where the culture
places little value on innovation, it will be difficult to adjust the IT services in line with changes in
the organization. If the IT department is unstable, then a culture that values change can pose a
serious threat to the quality of its services. In that case, a free for all can develop where many
uncontrolled changes lead to a large number of faults.

3.2.2 Human Resource Management

Personnel policy plays an important and strategic role in fulfilling the long-term objectives of an
organization (see also the EFQM model). It can also be used as an instrument to change the
corporate culture. The objective of modern personnel management is to optimize the performance
of all personnel in the organization. A variety of instruments such as recruitment and selection,
training and career development, motivation and reward are used.

Human Resource Management (HRM) is the major form of modern personnel management.

Human Resource Management is based on two premises:

• Personnel management should contribute to the objectives of the organization. If organizations


have to respond better and more quickly in an environment which changes ever more quickly, then
this will affect the deployment, quality and number of personnel.

• Giving employees in the organization the opportunity to develop and use their skills will benefit
the organization.

There are three approaches to HRM:

• The hard approach sees human resources as means of production, which have to be
organized as effectively and efficiently as possible. As the corporate strategy is determined by
economic, technical and market factors, the same applies to personnel policy. This approach
places different values on employees. Some core employees are strategically more important than
peripheral employees who are easily replaceable. For example, a company might choose to
permanently employ only core personnel, and for the rest use a pool of flexible personnel.

• The soft approach emphasizes that making the best possible use of human potential and
opportunities will benefit the business. Modern employees are highly educated, ambitious and
prepared to invest a lot in their work. For this reason, their potential must be identified early and
developed continuously (career development, training policy). When selecting its strategy and
policy, the business must base its choices on the talent and potential of its employees.

• The integrated approach looks at the shared interests of personnel and management in an
organization. To reach the objectives of the organization there will have to be good inflow,
movement and outflow of personnel. Changes in the market and the organization (e.g.
developments in technology) lead to constant changes in the need for skills.

All aspects of personnel policy have to be carefully coordinated. The movement of employees in

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the organization, determining and developing skills (competence) and promoting mobility in the
internal labour market is becoming increasingly important in organizations.

The quality of service provided by an organization benefits if the best use is made of the potential
of its employees. This facilitates continuous improvement. Instruments for quality management in
personnel policy include:

• Policy Deployment - communicating to each employee how and to what extent their task
contributes to realizing the objectives of the organization. An important condition for the success
of policy deployment is that it also extends to all layers of management.

• Empowerment - giving employees the opportunity to organize and implement their task in
consultation with the organization. The degree of empowerment determines the extent to which
employees can be held responsible for the quality of the work they provide.

• Accountability - which may be the result of policy deployment and empowerment. If an


employee has had an explanation of what is expected of them, and if they have had the
opportunity to arrange and implement the task as they wanted, then they can be held accountable
for it.

This could be used as a basis for assessing and rewarding employees. The reward may be
material (salary) or immaterial, for example appreciation, new opportunities for development and
career opportunities.

• Competence Management - this is both a method to use the competency available in an


organization as effectively as possible, and as a way to systematically develop the competence
the organization needs. This approach charts the competence required by the processes and
projects as well as the competence of the employees. When organizing employees, the focus is
not only on obtaining a good match between the required and available competence, but also on
the opportunities to develop competence, transfer expertise, and learn skills. Mentors or coaches
may support employees. Setting up skills groups can also support the exchange of experience
and encourage the development of new competence.

IT Customer Relationship Management

The quality of IT services largely depends on good relationships with the customers of the IT
organization. These relationships provide the basis for making and updating agreements. IT
Customer Relationship Management addresses maintaining a relationship with customers and
coordinating with customer organizations, at the strategic, tactic and operational levels.

In IT Customer Relationship Management, the major challenge is to ensure that there are good
and effective relationships between the IT organization and the customer organization at all levels.
However, the extent of IT Customer Relationship Management will be different at each level. One of
the elements in customer relationships is the Service Desk, and the control of the Service Levels
can be based on Service Level Management. In these areas, IT Customer Relationship
Management will primarily play a supportive role, for example, by organizing surveys among
customers and users, providing information, and so forth.

The user is the person behind the PC, the employee who uses IT services for their routine
activities.

The customer is the person who is authorized to conclude an agreement with the IT organization
about the provision of IT services (for example a Service Level Agreement, SLA) and who is
responsible for ensuring that the IT services are paid for.

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IT Customer Relationship Management plays an important role in developing the Strategic


Alignment between the IT organization and the organization purchasing the IT services. In practice,
this is primarily a matter of staying in touch with the customer organization, and exploring the
options for linking the strategic objectives of both organizations. This can provide the basis for a
long-term relationship, in which the IT organization focuses on the customer and proposes IT
solutions that the help the customer reach their business objectives.

Given the dynamic nature of both the customer organization and the IT organization, the rate of
change in both organizations should also be coordinated.

The agreements with the customer about the services to be provided are then developed into
service level proposals through Service Level Management. For example, if the customer wants to
introduce an intranet, then the availability, user support, implementation of change requests and
cost all have to be agreed. These agreements are laid down in a Service Level Agreement (SLA).

If the customer organization wants changes (expansion or modification) to the IT services that fall
within the agreements laid down in the SLA, then a Request for Change will be submitted.
Change Management then processes the request. Changes outside the current agreements are
introduced into the Service Level Management process.

In most cases, users can contact a Service Desk for operational requests and questions, and to
report problems.

Coordination at a strategic level has a planning horizon of several years. Service Level
Management concerns agreements at the tactical level, with a planning horizon of approximately
one year. Change Management, Service Desk and Incident Management all concern the
operational level, with a planning horizon of months or even weeks.

Processes
When arranging activities into processes, we do not use the existing allocation of tasks, or any
existing departmental (functional) divisions. This is a conscious choice. By opting for a process
structure, we can often show that the certain activities in the organization are uncoordinated,
duplicated, neglected, or unnecessary.

A process is a logically related series of activities for the benefit of a defined objective.

Instead, we look at the objective of each process and its relationships with other processes. A
process is a series of activities carried out to convert an input into an output. We can label the
input and output of each of the processes with quality characteristics and standards (that is,

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what is expected to go into and what is expected to come out of the particular process). These
characteristics and standards provide information about the results expected of the process. We
end up with linked chains of processes, which show what goes into the organization and what the
result is. As well as this we can describe monitoring points in the chains to assess the quality of
the products and services provided by the organization.

The standards for the output of each process have to be defined so that the complete chain of
processes meets the corporate objective/s, if each process complies with its process standard. If
the result of a process meets the defined standard, then the process can be said to be effective.
If the activities in the process are also carried out with the minimum required effort and cost, then
the process can be called efficient. The aim of process management is to use planning and
control to ensure that all processes are effective and efficient.

We can study each process separately to optimize its performance. The process owner is
responsible for the process results. The process manager is responsible for the realization and
structure of the process, and reports to the process owner. The process operatives are
responsible for defined activities, and report to the process manager.

The logical combination of activities results in clear points where the quality of processes can be
monitored. In a restaurant for example, we can separate responsibility for purchasing and cooking;
chefs may not have the authority to purchase anything as experience may show that they tend to
spend too much on fresh ingredients that do not add value.

The management of the organization can exercise control on the basis of the quality of the
process as demonstrated by data from the results of each process. In most cases, the relevant
performance indicators and standards will already be agreed. The day-to-day control of the
process can then be left to the process manager. The process owner will assess the results
based on a report of performance indicators and whether they meet the agreed standard.

Without clear indicators, it would be difficult for a process owner to determine whether the process
is under control, and if planned improvements are being implemented.

Processes are often described using procedures and work instructions.

A procedure is a description of logically related activities, and who they are carried out by. A
procedure may include stages from different processes. A procedure defines who does what, and
varies depending on the organization.

A set of work instructions defines how one or more activities in a procedure should be carried
out.

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Processes and departments

Most businesses are organized in a hierarchy. They have departments, which are responsible for a
group of employees. There are various ways of structuring departments, for example by customer,
product, region or discipline. IT services generally depend on several departments, customers or
disciplines. In a hierarchical organization if there is an IT service to provide users with access to an
accounting program on a central computer it will generally involve several departments.

In this example, the computer centre has to make the program and database accessible, the data
and telecommunications department has to make the computer centre accessible, and the PC
support department has to provide users with an interface to access the application.

Processes that span several departments can monitor the quality of a service by monitoring
certain aspects of quality, such as availability, capacity, cost and stability. A service organization
will then try to match these quality aspects with the customer’s demands. The structure of such
processes can ensure that good data is available about the provision of services, so that the
planning and control can be improved.

IT Service Management
IT Service Management is primarily known as the process and service-focused approach of what
was initially known as IT Management. In this chapter we have explained that processes should
always have a defined objective. The objective of IT Service Management processes is to contribute
to the quality of the IT services. Quality management and process control form part of the
organization and its policies.

In a process-focused approach we also have to consider the situation within an organization


(policies, culture, size, etc.).

ITIL, the best known approach to IT Service Management, does not dictate how an organization
should be structured. ITIL cleverly describes the relationships between the activities in processes,
which are relevant to any organization. ITIL also provides a framework that allows experiences to be
shared in different organizations, as it is a common language.

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4.0 Introduction to ITIL

This chapter describes the structure and objectives of the IT Infrastructure Library (ITIL) and the
organizations that contribute to maintaining ITIL as the best practice standard for IT Service
Management.

4.1 Background

ITIL was developed due to the fact that a growing number of organizations are becoming
increasingly dependent on IT to help fulfill their corporate objectives. This increasing dependence
has resulted in a growing need for IT services of a quality corresponding to the objectives of the
organization, and which meet the requirements and expectations of the customer. Over the years,
the emphasis has shifted from the development of IT applications to the management of IT
services. An IT application (sometimes referred to as an information system) only contributes to
realizing corporate objectives if the system is available to users and, in the event of fault or
necessary modifications; it is supported by maintenance and operations.

In the overall life cycle of IT products, the operations phase expenditure amounts to about 70 to
80% of the overall time and cost, the rest is spent on product development (or procurement).
Effective and efficient IT Service Management are essential to the success of IT applications.

This applies to any type of organization, large or small, public or private, with centralized or
decentralized IT services, with internal or outsourced IT services. In all cases, the service has to
be reliable, consistent, of a high quality, and at an acceptable cost.

IT Service Management addresses the provision and support of IT services tailored to the needs of
the organization. ITIL was developed to disseminate IT Service Management best practices
systematically and cohesively. The approach is based on service quality and developing effective
and efficient processes.

ITIL offers a common framework for all the activities of the IT department, as part of the provision of
services, based on the IT infrastructure. These activities are divided into processes, which provide
an effective framework for further enhancement of IT Service Management. Each of these
processes covers one or more tasks of the IT department, such as service development,

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infrastructure management, and supplying and supporting the services.

This process approach makes it possible to describe the IT Service Management best practices
independently from the actual organizational structure of the department.

Many of these best practices are clearly identifiable and are indeed used, to some extent, in most
IT organizations. ITIL presents these best practices coherently. The ITIL books describe how these
processes (which have sometimes already been identified) can be optimized, and how the
coordination between them can be improved. The books also explain how the processes can be
formalized within an organization. They provide a frame of reference within the organization for the
relevant terminology, and help to define the objectives and to determine the required effort.

By using a process approach, ITIL primarily describes what must be included in IT Service
Management to provide IT services of the required quality. The structure and allocation of tasks
and responsibilities between functions and departments depends on the type of organization, and
these structures often change. The description of the process structure can help maintain the
quality of IT services during and after reorganizations.

The list below identifies some advantages and disadvantages of ITIL. It does not claim to be a
definitive list. Any attempt to supplement it often leads to an interesting discussion about the
advantages of disadvantages of ITIL and about the way in which organizations actually use ITIL.

4.2 Advantages to the Customer/End User:

• The provision of IT services becomes more customer-focused and agreements about service
quality improve the relationship.

• The services are better described, and in greater detail.

• The quality and cost of the services are managed better.

• Communication with the IT organization is improved by agreeing on the points of contact.

4.3 Advantages to the IT Organization:

• The IT organization develops a clearer structure, becomes more efficient, and more focused on
the corporate objectives.

• The management is more in control and changes become easier to manage.

• An effective process structure provides a framework for the effective outsourcing of elements of

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the IT services.

• Following the ITIL best practices encourages a cultural change towards providing service, and
supports the introduction of a quality management system based on the ISO-9000 series.

• ITIL provides a uniform frame of reference for internal communication, standardization and
identification of procedures.

4.4 Potential disadvantages:

• The introduction can take a long time and significant effort, and requires a change of culture in
the organization. An over ambitious introduction can lead to frustration because objectives are
never met.

• If process structures become an objective in themselves, the service quality may be adversely
affected. In that case, procedures become bureaucratic (obstacles that are avoided where
possible).

• There is no improvement due a lack of understanding about what processes should provide, what
the performance indicators are, and how processes can be controlled.

• Improvement in the provision of services and cost reductions are not visible.

• A successful implementation requires the involvement and commitment of personnel at all levels
in the organization. Leaving the development of the process structures to a specialist department
may isolate that department in the organization and it may set a direction that is not accepted by
other departments.

• If there is insufficient investment in support tools, the processes will not be done justice and the
service will not be improved. Additional resources and personnel may be needed if the organization
is already overloaded by routine IT Service Management activities.

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ITIL was obviously developed to capitalize on the advantages. It is appropriate to recognize and
acknowledged that there can be problems with an adoption of ITIL practices. However, the ITIL
Framework itself provides a lot of suggestions on recognizing and therefore preventing such
problems, or how to solve them should they occur.

4.5 Organizations

OGC (CCTA)

ITIL was originally a CCTA product. CCTA was the Central Computer and Telecommunications
Agency of the British government. On the 1st April 2001, the CCTA was amalgamated with the
OGC (Office of Government Commerce), which is now the new "owner" of ITIL. The objective of the
OGC is to help its customers in the British public sector update their procurement activities and
improve their services by making the best possible use of IT and other instruments. ‘OGC aims to
modernize procurement in government, and deliver substantial value for money improvements.’ The
OGC promotes the use of ‘best practices’ in many areas (e.g. project management, procurement
and IT Service Management). The OGC publishes several series (libraries) of books written by
British and international experts from a range of companies and organizations.

The OGC IT Infrastructure Library consists of a number of clear and thorough ‘Codes of Practice’ to
promote and provide efficient and effective IT services.

ITSMF
The Information Technology Service Management Forum (ITSMF), originally known as the
Information Technology Infrastructure Management Forum (ITIMF), was set up in the UK in 1991.
The Dutch ITSMF (ITSMF Netherlands) was the next chapter, set up in November 1993. In 2001 it
had over 500 members organizations, both suppliers and user groups. There are now ITSMF
chapters in countries such as South Africa, Belgium, Germany, Austria, Switzerland, the United
States, and Australia, who participate in the ITSMF International group.

The itSMF promotes the exchange of information and experiences that enable IT organizations to
improve the services they provide. It organizes symposiums, congresses, special subject
evenings, and other events about current IT Service Management subjects.

Working parties also contribute to the development of the subject. The association publishes a
newsletter and operates a web site with information about its activities

(http://www.itsmf.com).

EXIN and ISEB


The Dutch foundation EXameninstituut voor INformatica (EXIN) and the UK Information Systems
Examination Board (ISEB) jointly developed a professional certification system for ITIL. This was
done in close cooperation with the OGC and ITSMF. EXIN and ISEB are nonprofit organizations
which cooperate to offer a full range of ITIL qualifications at three levels:

• Foundation Certificate in IT Service Management

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• Practitioner Certificate in IT Service Management

• Manager Certificate in IT Service Management

The certification system is based on the requirements for effectively fulfilling the relevant role within
an IT organization. To date, certificates have been awarded to over 30,000 IT professionals in over
30 countries.

The Foundation Certificate is intended for all personnel who have to be aware of the major tasks in
the IT organization, and the connections between them. After obtaining the Foundation Certificate,
the Practitioner and Manager exams can be taken. Practitioners are trained to undertake specific
ITIL processes or tasks in such processes, such as Incident Management, Change Management
and/or Service Level Management. Managers are trained to be able to control these processes, to
advise about the structure and optimization of the processes, and to implement them.

By now, ITIL represents much more than a series of useful books on IT Service Management.

The framework of best practice in IT Service Management is promoted and further developed by
consultants, trainers and tool suppliers. Since the 1990s, ITIL has stood not just for the
framework, but also the approach and philosophy shared by those using ITIL best practices in their
work. A range of organizations are now cooperating internationally to promote ITIL as the de facto
standard in IT Service Management.

The ITIL community also allows for organizations involved to provide feedback so that the reality of
current best practice is quickly reflected and incorporated into the ITIL theory.

Furthermore, extensions and alternatives have been developed, some of which may be considered
as IT Service Management methods in their own right. These alternatives often address the needs
of certain groups or organizations whose specific problems are not adequately covered by ITIL.

The unique aspect of ITIL is that it offers a generic framework based on the practical experience of
a global infrastructure of professional users.

ITIL (IT Infrastructure Library)


ITIL is a series of books. As the name suggests it is a Library (IT Infrastructure Library). This
section will describe the various components of the library.

Each of the ITIL books addresses part of the overall ITIL framework. For the ITIL purist we
acknowledge that ITIL is a library of many books. This course is centred on the Service Delivery
and Service Support books. We use ITIL as the description of these two books throughout the
course.
ITIL defines the objectives and activities, and input and output of each of the processes found in an
IT organization. However, ITIL does not give a specific description of how these activities should be
implemented, as this will be different in every organization. The emphasis is on an approach that
has been proven in practice, but (depending on the circumstances) may be implemented in a
number of ways. ITIL is not a method, instead it offers a framework for planning the most common

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processes, roles and activities, indicating the links between them and what lines of
communication are necessary.

ITIL is based on the need to supply high-quality services, with an emphasis on customer service
and relationships. The IT organization has to fulfill "customer" requirements, which means
maintaining good relationships with them and associated partners such as suppliers.

Part of the ITIL philosophy is based on quality systems, such the ISO-9000 series, and Total
Quality frameworks, such as that of the EFQM. ITIL supports such quality systems with a clear
description of the processes and best practices in IT Service Management. This can significantly
reduce the time required to obtain ISO certification.

Originally, ITIL consisted of a large number of sets of books, each of which described a specific
area of the maintenance and operation of IT infrastructure. Ten books describing Service Support
and Service Delivery were considered as the core of ITIL. There were approximately 40 other books
on complementary subjects related to IT Service Management, from cabling to managing customer
relationships. However, the original series of books in the Infrastructure Library mostly approached
IT Service Management from the IT perspective.

The Business Perspective Set was introduced to bridge the divide between the business and the IT
organization. Even so, certain aspects of ITIL still had a slightly dated approach.

The "core" ITIL books have now been revised and published as two books, one on Service Support,
and one on Service Delivery. This has eliminated significant overlap and occasional
inconsistencies in the earlier series and has improved cohesion. They also support the vision of IT
Service Management more thoroughly.

The ITIL puzzle shows the main elements addressed by the ITIL books. Each of these elements
interfaces with the others, and overlaps them to some extent.

The elements are:

• The Business Perspective

• Service Delivery

• Service Support

• ICT Infrastructure Management

• Applications Management

• Planning to Implement Service Management

In this chapter, we will introduce the ITIL series of publications using the main elements of the ITIL
puzzle. By the end of 2002 the original set of books, each on a specific aspect of IT Service
Management, should have been replaced by six new ITIL books, as have the books on Service
Support and Service Delivery. However, many of the best practices to be described in the new
books are also included in the current ITIL series. For more information www.itil.co.uk

Business Perspective

The ITIL books in the Business Perspective Set describe many issues related to understanding
and appreciating IT services as an integrated aspect of managing a business.

The Business Perspective Set, and the Business Perspective book, which will eventually replace

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the set, addresses:

• Business Continuity Management

• Partnerships and outsourcing

• Surviving changes

• Adapting the business to radical changes

Other ITIL books address some of these topics, in addition to those in the Business Perspective
Set.

Managing Facilities Management

"Managing Facilities Management" addresses the management of contracts between the IT


organization and Facilities Management companies. The Facilities Management suppliers may be
responsible for the operation of all or part of the IT infrastructure. However, the IT organization
bears the ultimate responsibility for the services provided to the customer. This book describes
what measures the IT organization can take to accept responsibility for agreements about Service
Levels and how to monitor the services provided by the facilities suppliers.

Managing Supplier Relationships

To some extent, "Managing Supplier Relationships" is similar to Customer Relationship


Management, but now covering the relationship between the IT organization and its suppliers. A
good relationship with suppliers is not just a matter of contractual agreements and contacts. The
primary concerns are business like forms of cooperation that contribute to the current and future
provision of IT services and fulfilling the objectives of the IT organization.

Relationships with suppliers can be characterised by the nature and content of the contacts.
These may be to discuss the long-term prospects of existing relationships, to promote
communication, or to investigate the range offered by various suppliers.

The major tasks of the Managing Supplier Relationships process include selecting suppliers,
assessing the performance of suppliers, and determining the way in which the IT organization
handles supplier contracts.

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Service Delivery

As indicated above, Service Support and Service Delivery are considered to be at the heart of the
ITIL framework for IT Service Management. The ITIL book on Service Delivery describes the
services the customer needs, and what is needed to provide these services.

The following subjects are addressed:

• Service Level Management

• Financial Management for IT Services

• Capacity Management

• Availability Management

• IT Service Continuity Management

• Security Management (with reference to the ITIL book on Security Management)

There is continual reference to how these areas also integrate the essential element of Client
Relationship Management.

The complex interrelationship between the processes described in the books on Service Support
and Service Delivery is almost impossible to show in a diagram. We will briefly describe each of
these areas now:

IT Customer Relationship Management

Most organizations appreciate the need to apply cohesion and structure to relationships within the
customer organization at several levels. The IT Customer Relationship Management activities
involve several processes. The Service Desk is the first point of contact for most "users". However,
the "customer", who has commissioned and paid for the service, will initially contact IT Customer
Relationship Management. IT Customer Relationship Management provides a bridge between the
IT organization, which has traditionally taken a technical approach, and the customers who want
to fulfill their business objectives.

Service Level Management

The objective of Service Level Management is to make clear agreements with the customer about
the IT services required, and to implement these agreements. Consequently, Service Level
Management needs information about the customer needs, facilities provided by the IT
organization, and the financial resources available.

Service Level Management addresses the service provided to the customer (Customer Focus).

By analysing the information needs of the customer (Information Pull) rather than what is
technically feasible (Technology Push), the IT organization can improve customer satisfaction.

The chapter on Service Level Management in the Delivery book describes:

How, by clearly defining, a Service Level Agreement can optimise the IT services at a cost that
can be justified to the customer.

How the service can be monitored and discussed.

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Underpinning Contracts support the service with sub-suppliers/sub-contractors.

Financial Management for IT Services

Financial Management addresses the prudent provision of IT services. For example, Financial
Management provides information about the costs incurred while providing IT services. This
enables a proper consideration of costs and benefits (price and performance) when deciding on
changes to the IT infrastructure or IT services. The identification, allocation, forecasting and
monitoring of the costs, as discussed in the chapter on Financial Management in the Service
Delivery book, are all covered by the term ‘costing’. These activities support cost awareness (what
cost is incurred where?) and can also be used in drawing up budgets. With respect to the revenue
stream of the IT organization, this ITIL book describes various charging methods.

Capacity Management

Capacity Management is the process of optimizing the deployment of IT resources, to support the
agreements made with the customer. Capacity Management addresses resource management,
performance management, demand management, modeling, capacity planning, load management
and application sizing. Capacity Management promotes planning to ensure that the agreed Service
Levels can also be fulfilled; now and in the future.

Availability Management

Availability Management is the process of ensuring the appropriate deployment of resources to


support the availability of IT services agreed with the customer. Availability Management
addresses issues such as optimizing maintenance, and design measures to minimise the number
of incidents.

IT Service Continuity Management

This process addresses the preparation and planning of disaster recovery measures for IT
services. Other common names are Contingency Planning and Disaster Recovery Planning. The
starting emphasis for IT Service Continuity Management is the requirement to safeguard the
continuity of the customer organization in the event of a disaster (this means that the IT
organization must be aware of the "Business Continuity Plan"). IT Service Continuity Management
is the process of planning and coordinating the technical, financial and management resources
needed to ensure continuity of service after a "disaster", as agreed with the customer.

Security Management

The objective of Security Management is to protect the IT infrastructure against unauthorized use
(such as unauthorized access to data). This is based on security requirements laid down in
Service Level Agreements, contractual requirements, legislation, and policy. When updating the
Service Delivery part of ITIL it was decided that the recently published book on Security
Management did not have to be replaced. The ITIL book on Service Delivery does not address
security management directly but refers to the Security Management book.

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Service Support

The ITIL book on Service Support describes how a customer can get access to the appropriate
services to support their business.

This book covers the following subjects:

• Service Desk

• Incident Management

• Problem Management

• Configuration Management

• Change Management

• Release Management

Service Desk

The Service Desk is the initial point of contact with the IT organization for users. Previously, the
ITIL books referred to it as the Help Desk. The major task of the Help Desk was recording,
resolving and monitoring problems. A Service Desk can have a broader role (for example receiving
Requests for Change) and it can carry out activities belonging to several processes.

The new book on Service Support now distinguishes between the Service Desk (i.e. as a function
or organizational unit), and processes such as Incident Management, Configuration Management
and Change Management.

Incident Management

The distinction between "incidents" and "problems" is possibly one of the best-known discussion
points in the ITIL field. There are clear differences and by understanding both processes the
reasons become very clear.

Although the difference may be confusing there is a major advantage in that a distinction is made
between the rapid return of the service (the goal of incident management) and identifying and
remedying the cause of an incident (the goal of problem management)

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Incident Management aims to resolve the incident and restore service quickly.

Incidents are recorded, and the quality of the incident records determines the effectiveness of a
number of other processes.

Problem Management

If a problem is suspected within the IT infrastructure, Problem Management aims to identify the
underlying cause. A problem may be when there are multiple occurring and seemingly related
incidents. The intention of problem management is to eliminate these re-occurring incidents.

Once the cause of a series of re-occurring incidents has been identified (Known Errors), a
business decision is taken whether to make permanent improvements to the infrastructure to
prevent new incidents. Submitting a Request for Change makes this improvement.

By creating the Incident Management process in the Service Support book, Problem Management
is neatly split off and is not a part of solving incidents.

Note that your end users may still refer to what they experience as a "problem". It may not be
appropriate to educate your users that what they are experiencing is in fact an "incident". This is a
classic example of when the framework needs to be interpreted sensibly.

Configuration Management

Configuration Management addresses the control of a changing IT infrastructure (standardization


and status monitoring), identifying configuration items (inventory, mutual links, verification and
registration), collecting and managing documentation about the IT infrastructure and providing
information about the IT infrastructure to all other processes.

Change Management

Change Management addresses the controlled implementation of changes to the IT infrastructure.


The objective of the process is to determine the required changes, and how they can be
implemented with a minimum adverse impact on the IT services, by effective consultation and
coordination throughout the organization. Changes are made in consultation with the status
monitoring activities of Configuration Management, the customer organization, Problem
Management and several other processes. Changes are implemented by following a path of
definition, planning, building and testing, accepting, implementing and evaluating.

Release Management

The actual implementation of changes is often carried out through Release Management activities.
Both hardware and software (central processing, data communications and clients) changes are
often planned on the basis of releases. The main objective of Release Management is to control
the distribution of hardware and software, including integration, testing and storage.

Release Management ensures that only tested and correct versions of authorized software and
hardware are provided. Release Management is closely related to Configuration Management and
Change Management activities.

IT Infrastructure Management

Eventually, technical operational management processes will be addressed in a new ITIL book on
IT Infrastructure Management. This book will cover:

• Network Service Management

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• Operations Management

• Management of Local Processors

• Computer Installation and Acceptance

• Systems Management

IT Infrastructure Management also includes Environmental Management.

Network Services Management

The Network Services Management process addresses planning and controlling communications
networks. These include telephone systems, LAN and WAN networks.

The ITIL module for Network Services Management also addresses the long-term communications
needs of the organization. In essence, it describes how the ITIL best practices can be applied in a
network environment.

Operations Management

Computer Operations Management (Computer Operations) addresses the management of


computer hardware and systems software, including mainframes and midrange systems, but also
file servers, to ensure that the agreed Service Levels are provided. The ITIL book of the same title
concentrates on production tasks in an environment of large computer systems.

Management of Local Processors

The Management of Local Processors process addresses management operations at


decentralized sites. The objective is to support the provision of IT services at the user site. This
specifically includes making agreements about the activities of various processes (especially the
processes to support IT services) when IT services are provided at multiple locations. A good
definition of responsibilities is important to optimize the service.

Computer Installation and Acceptance

Computer Installation and Acceptance primarily concerns guidelines for planning the acceptance,
installation and eventual removal of large computer hardware in the IT infrastructure. These
guidelines are a development/extension of the activities in the Change Management and Release
Management processes.

Systems Management

To date, the ITIL Books have not covered Systems Management. In future a new book on IT
Infrastructure Management will cover it.

Environmental Management

Environmental Management concerns managing the environment of the IT infrastructure (power


supply, cooling, etc.). One of the tasks of this process is to set up and maintain climate controlled
computer and network rooms.

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Applications Management

The ITIL book on Applications Management will address the relationship between management
and the software lifecycle. This includes issues such as Software Lifecycle Support and testing IT
services. A major issue in Applications Management is effectively responding to changes in the
business. Clearly defining the requirements and implementing a solution that meets the needs of
the customer organization is paramount.

Software Lifecycle Support

Software Lifecycle Support aims to define the approach for supporting the entire software lifecycle,
in consultation with those responsible for software development. The way in which software is
designed, built, tested, introduced, operated, maintained, and eventually decommissioned, is
extremely important in IT services. In every stage of the software lifecycle, there have to be
agreements between those developing and those operating the IT infrastructure. The selection of
Software Lifecycle models can have a significant impact on the IT services.

Testing an IT Service for Operational Use

The objective of testing an IT Service for Operational Use is to ensure that the proper operation of
new or modified IT services is tested before they enter operations. A system test, installation test
and acceptance test are undertaken to determine if the developed application works, is correctly
installed, interfaces with the rest of the IT infrastructure, and offers the "users" the functions
agreed with the "customer".

Management and Organization

The ITIL series also includes some books on subjects at the strategic level, the Managers Set.

Developing policies and long-term planning of IT services are specifically addressed in the books
on Quality Management, IT Service Organization and Planning and Control for IT Services.

Quality Management for IT Services

Quality Management for IT Services addresses setting up and maintaining a coherent quality
system, based on the IT Service Management processes described in other ITIL books. This book
describes the introduction of a quality management system (based on the ISO-9000 series of
standards) in an IT organization, and the evaluation of an existing quality management system.
The relationship between the ISO standards and ITIL modules is also identified.

Quality Management activities include defining and implementing the quality policy and managing
the quality system, including audits.

IT Services Organization

IT Services Organization addresses the structure of the IT organization. This ITIL book describes
how the organization can be analyzed and assessed, particularly in terms of tasks, authority and
responsibility. A framework is provided for dealing with organizational changes, based on the
process descriptions in the other ITIL books. Major activities in this process include determining
and defining the organizational structure and role and function descriptions.

Planning and Control for IT Services

Planning and Control for IT Services aims to provide a coherent system of planning, reporting and

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control for the IT organization, to ensure that the organization fulfils the objectives and
requirements based on the business strategy and the strategy of the IT organization. This includes
coordinating the planning and reporting of the various IT Service Management processes (for
example in the form of annual plans and quarterly reports).

Planning and Implementation

There is now much experience throughout the world with planning and implementing programmes
to optimize IT Service Management. A recent ITIL book is devoted to this subject.

In essence, the concept of planning and implementing changes in IT Service Management


processes is shown in the process improvement model. In practice, the situation illustrated by this
model is often obscured by the way in which important decisions are taken in organizations, which
may be affected by historical and political issues. It is therefore necessary for management to
commit to the improvement programme (Management Commitment), and for them to understand
the organizational culture. You should also be aware that there will generally already be processes
that meet the needs of the organization, albeit only partly.

Lack of commitment will create resistance from the very people needed to align these processes
with the business needs. And alignment is at the very heart of benefits gained in a process driven
approach for IT Service Management.

Analyzing the needs of the organization and implementing the required solution could require the
creation of a temporary organization. This could be considered as a one project, or as a series of
projects in an improvement programme. One advantage is that it will provide the organization with
clear decision points where it can decide to terminate, continue, or modify the project. In this
context, the ITIL books recommend the adoption of PRINCE2 (Projects IN Controlled
Environments) as a Project Management methodology.

Each project is based on an analysis of the current situation, the desired situation, and the path in
between. In most cases, the alternatives will be compared on the basis of:

• Advantages to the organization

• Risks, obstacles and potential problems

• Transition costs and long-term costs

• Costs of continuing the current approach

Identifying the potential alternatives may well be a project in itself.

You should be aware that ITIL is no magic formula. Do not expect miracles. You should be
particularly wary of so-called ITIL implementation projects that have a hidden agenda, such as a
reorganization or merger. ITIL describes the best practice for improving IT Service Management; it
is not an organizational handbook. ITIL primarily provides a frame of reference for process
structures in the IT organization and, to a much lesser extent, a guideline for the structure of that
organization. If a project aims to improve the IT organization along these lines, then it is wise to
seek out experts in this field (a good starting point is outside consultants who are certified IT

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Service Managers (according to the certification requirements laid down by Exin or the ISEB).

A baseline measurement or health check can provide a good start for process improvements.
Such an assessment of the IT Service Management processes can help identify the strengths and
weaknesses of the organization, and define clear objectives for an improvement project.

After some time the measurement can be repeated to show the progress of the project or
programme.

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5.0 Service Desk

5.1 Introduction

Here is a familiar situation.....

You have just started a complicated job, which requires all your concentration. The phone
rings....Someone is facing computer difficulty!!! The printer is not working. You solve the issue and
just when you are back into the job …

Someone walks into your office asking when his or her expected upgrade will be done.

1 hour later you still haven’t started your job…..

Wouldn’t it be great if you could complete this job without interruption?

It is the role of the Service Desk to act as the single contact point between the customer and the
IT Service Provider.

They will handle all incoming calls and only direct them through to the second or third level support
when necessary. For the customer the advantage is that they don’t have to ring around, before
finding the right person to solve their problem and for IT personnel it means that they only have to
deal with issues that are related to their skills or area of responsibility.

5.2 Objective

The Service Desk offers "first line" support to users. Users need help if they are not sure
how to behave in a specific situation when using IT services or when they need assistance to
solve a particular issue involving IT.

As well, the Service Desk is the central point of contact where incidents or inaccuracies in IT
systems can be reported. The Service Desk is the face of the IT department to the clients.
Furthermore, the Service Desk is an important source of management information.

Objectives of the Service Desk:

? To provide a single point of contact for Customers

? To facilitate the restoration of normal operation service with minimal business impact on the
Customer within agreed service levels and business priorities

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5.3 Process Description

The Service Desk is not regarded as a process within ITIL but as a function.

As IT has become a greater part of business over the years the role of the Service Desk has
become crucial. Businesses relies on there IT service to stay on top of the market and be
competitive. The service provided by the Service Desk tends to be broader then just the IT part of
business hence the change in name from Helpdesk (which was more IT related) into Service Desk.

It plays a vital role in IT Service management as from a customer point of view the service desk is
the IT Service Provider and therefore plays a critical part in how the customers perceives the IT
organization as a whole.
Among the activities performed by the Service Desk are Incident recording and Incident Control.
This used to be part of the Helpdesk Process but is now included in the process called Incident
Management (covered in a later module).

5.4 Activities

The Service Desk has a number of primary responsibilities. These are:

• To provide a single point of contact for the customers;

• To facilitate the restoration of normal operational service (with minimal business impact on
the Customer) to the agreed service levels and according to the business priorities.

6.0 Activities

1. Keep users informed by....

2. Providing information, in the form of:

? The status of their incident

? Planned changes in IT Service

? Likely disruptions in the IT Service

? Any changes or additions in the services that are provided or the service levels.

The obvious benefits in proactively providing service information is that:

If the customers know before hand that a specific service (e.g. email) will be unavailable during
the lunch hours you (a) reduce the amount of calls being received but also (b) reduce the impact
of the disruption. The end result will be fewer angry or annoyed customers.

3. Provide management information

By logging all calls the Service desk can provide information to Management about, the amount off
calls per category, the amount of calls as a result of a change etc. But also in case of a disruption
in the IT Service they are likely to be the first to know. This makes the Service Desk an excellent

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First Point of contact for users, customers and management alike.

The objective is to produce reports from which management can make decisions and measure
performance based on agreed service levels and deliverables.

4. Conduct customer satisfaction analysis and surveys

5. Recording and controlling of incidents

Incident control

The Service Desk is responsible for recording all incidents and then controlling them. The Service
desk can use different ways in recording the incidents:

• Phone

• E-mail

• Internet

• Fax

• Personal visit

By making use of different ways of recording incidents and even automating the solution then the
workload of the service desk will be reduced and by association so will the costs.
Think about how much time it costs to reset a password for a user and how often that is required.
If by sending an email a set of actions would be started including: creating the incident, resetting
the password, informing the customer and closing the incident a great deal of time could be
saved.

6.1 Roles

The new Service Desk tends to be more then the just the place to lodge calls related to IT. It has
a role to provide and improve the service to the business in general. The changing role is that the
Service Desk is a more customer focused, whereas the traditional Help Desk tended to be more
technical in nature.

As there are different types of Service Desk models the skills required by the Service Desk staff
also must be carefully analyzed.

Interpersonal skills are one of the more important ones. Technical skills become more important
when the Service Desk becomes more skilled and aims to solve most of the incidents without
rerouting them to higher levels of support.

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6.2 Relationships

Being the single point of contact for IT Service, the Service Desk has a link with all processes
within ITIL. With some processes the link is a clearer than others.

The Service Desk is, in fact, an operational aspect of the important process of Incident
Management, e.g. incident control. The Service Desk registers and "controls" Incidents.

Incidents can be related to Configuration Items. If this link is supported by software, a powerful aid
in mapping/identifying weak links in the IT infrastructure evolves.

This allows the Service Desk staff to quickly solve incidents by searching on a Configuration Item,
category and/or error code and applying a previously used solution.

Note: A Configuration Item (or C.I.) is discussed in the Configuration Management process
section. A C.I. is an item that we want to store information about.

In some cases the Service desk does some minor changes and so has a link with Change
Management and Release Management.

The link between the Service Desk and Service Level Management can be illustrated as a result of
the Service Desk monitoring Incident levels and reporting whether the IT service is restored within
the limits defined in Service Level Agreements (SLA's). Service Desk will report to Service Level
Management if IT Service is not restored within time frames and escalation procedures are properly
defined and adhered to.

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6.3 Benefits

The benefits from a properly implemented Service Desk flow across Users, Customers, IT Staff
and the business as a whole.

Note: The difference between a Customer and a User should be explained. A Customer is the
person who may often be the representative of the business for the service provided and/or the
person who funds the service. The user is the ultimate end user of the service provided.

Benefits for the Customer

• Easily defined metrics for measuring performance

Benefits for Users

• Single point for all queries

• Better informed

• Quicker turn around of request, queries and incidents

Benefits for IT staff

• Being able to focus more on the job

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• Greater efficiency

• Better use of the skills the staff has resulting in motivated personnel

• Improved team work

Benefits for the business

• Source of useful management information

• Internal cost savings and productivity efficiencies

• Meet customers business support requirements with responsiveness at all times when and
wherever it is needed

• Better use of available resources

6.4 Summary
An effective Service Desk will deliver overall cost reduction and increases in staff morale, service
reliability and identification of business opportunities. All this leads to increases in Customer
satisfaction ratings, with the associated improvement in perception this brings.

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6.5 Common Problems

There is no doubt in denying that along with any move towards improvement there will be problems
and barriers to success. Recognizing this in advance goes a long way to solving the problem when
(not "if") it comes up.

• Users do not call the Service Desk, but try to go around it to the person they know, the one
who helped them so well the last time.

The Service Desk needs to be easily accessible, easy to remember phone number, out of office
process established, after hours process established, low waiting times and different ways of
communicating/interfacing. Processes for dealing with different levels of staff within the
organization (eg. creating a group of "Critical Users") will also ensure that Service Desk staff
realistically deal with those in highly critical roles as a top priority.

All Customers must be redirected to the Service Desk if they try to contact someone directly. This
can be done politely and does not have to be used as a threat (eg. "if you don't contact the Service
Desk, we won't help you" versus "if you can contact the Service Desk it will mean that we properly
track and fix your problem").

Users who wish to circumvent the proper procedure will be annoyed and cause disruption.
However, this short term problem should be ridden out, rather than "giving in". In time, all users
will become accustomed to change and eventually start to accept and see the benefits (refer to
SD Benefits).

• Not aware what the needs of the business and/or users are.

If the Service provided by the Service Desk (IT Service Provider) is not the one needed by the
business or the user then it matters little that the service is perfect.
If a business is only operating between 9 am and 4 pm, having a Service Desk that’s is open
24 hours a day, is not very useful and might result in under staffing of the Service Desk during
the business hours.

• Not all parties involved are informed about the Service provided and the Service Levels
agreed upon, resulting in unrealistic expectations.

This is a simple case of communication and making sure that that all procedures, Service levels
etc are well documented and available to all parties involved. Also periodically revisiting and re-
educating involved staff, BEFORE issues arise.

This is not to say that staff will use this information against users who require service, it simply
means that users approach the Service Desk with realistic expectations. Naturally, everyone's
problem is critical when it happens - when a user is irate or stressed it is not appropriate to point
out that the agreed service levels allow for a 48 hour response. This highlights the people skills
that Service Desk staff need to have.

A well-marketed Service Desk is only half the job.


Involve key customers in the process of implementing the Service Desk and reap the rewards from
having their support in times of crisis.

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6.6 Metrics

Metrics are essential in monitoring any IT Service provided. The Service Desk as a service for
users is no different in this regard.

Day to day reports can provide information on Calls and Incidents. For instance;

• How many and what kinds of incidents (classifications) the Service Desk solves at first
point of call.

• How long calls last, how many there are and how long the waiting time is before a call is
answered. This information can be extracted from appropriate tools or from PABX records.

If standards are set before the Service Desk starts operating one can monitor the progress of the
Service Desk. The crucial factor is in defining what it is that should be measured. It is realistic to
start with a very simple set of metrics and possibly this is a better approach as it means that there
is no time lost in creating a long series of reports that add no value to a customer.

The easiest way to begin to define what metrics are required is to look to the Service Level
Agreements (SLA's) that should define the response times, etc. for the Service Desk from the
Customer perspective.
However, even if all Service Levels are met the most important measurement for any Service
organization is the perception of the Customers of the service provided. Therefore Customer
satisfaction should be measured regularly.

6.7 Service Desk Structure - Best Practice

Structure of a Service Desk


A Service desk can be structured in one of three ways:

• The Local Service Desk

• Centralized Service Desk

• Virtual Service Desk

The "hybrid" model is also a genuine Service Desk structure that uses a combination of two or
more Service Desk structures.

Local Service Desk

Very "visible" to the organization. The Service Desk is most probably in the same building or
locality as the users of the IT Services. The advantage of this concept is the fact that Service
Desk staff are very well versed with the local situation and local conditions.

However, be aware of the fact that, if the organization is spread out over various locations with their
own local service desks (ie multiple "local"), a high standard of process adherence should be
apparent. All Service Desk staff should follow the same processes and procedures to prevent
differences between the different Service Desk operations.

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Centralized Service Desk

A centralized Service Desk is a physical point in one location. All users from the different sites
contact this one Service Desk.

This model leads to a reduction in operational costs, easier management of the IT Service and
better use of Resources.

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6.7.1 Virtual Service Desk

Due to advanced network and telecom technologies it is now possible to have a Service Desk that
has no physical location as far as the user is concerned. It might be staffed in different locations at
different times during a day resulting in a 24 hour Service Desk.

The issue to consider is the need for a physical engineer at the various locations to solve local
incidents. Also time differences have to be taken in consideration when setting up Service Level
Agreements.

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Virtual Service Desk

Hybrid models combine two or more of these particular structures into a customized solution for a
particular organization. This is a genuine structure as the ITIL Framework provides guidelines only
for structure and is not a prescriptive solution book.

Interesting websites:
? http://openview.hp.com/products/servicedesk/

? http://www.interpromusa.com/hdicerti.htm

? http://www.interpromusa.com/The Integrated Service Desk.pdf

? http://www.itilworld.com/n-america/service-support_helpdesk.htm

? http://www.itil-service-support-management.com/Pages/Service support/Service
Desk/Service_Desk_scope.htm

? http://www.itil.co.uk/online_ordering/serv_supp_graphs/serv_desk.htm

6.8 Essential Terms

Escalation:

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When the time limit for resolving an incident has passed, the incident escalates into a problem
(depending on the priority and impact of the incident) and a different level of support (Problem
Management) comes into force and this:

• Edits the problem if necessary

• Determines the impact on the service delivery and with that, the priority. The Service Desk
continually informs clients about the progress of their calls.

Routing:
An incident is deposited at the second line support because no specialist knowledge for the
solution is available at the Service Desk

Incident:
An incident is every operational event that is not part of the standard operation of an IT service. An
incident influences the service delivery, although it can be small and in some cases even
transparent (not noticeable) for the user.

Problem:
A problem is the as yet unknown cause of the occurrence of one or more incidents.

Known error:
This is the situation where a successful diagnosis of a problem has shown what the cause is and
which CI is at fault. A possible solution may also be found as to how the problem can be avoided.

Expert or Super user:


Some organizations may use “expert” users to solve some first line support queries, depending on
the structure of the organization. This can solve some short term people resource issues.

Call
Each time the user contacts the service desk.

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7.0 Incident Management

7.1 Introduction

The Incident Management process contains activities that are aimed at restoring an IT service
following a disruption. The Service Desk is usually the owner for this process however all support
groups across an IT organization will play their part.

Disruption of an IT service, questions about the functionality of an application or requests for advice
are all regarded as Incidents that are dealt with by this process.

Requests for Change are handled in a similar way as Incidents so they can also fall under Incident
Management. A business may decide however to describe the handling of RFC’s in a special
procedure in order to keep the Incidents and RFC’s separated.

Note: An RFC is a Request for Change and will be dealt with in the Change Management process
area. An RFC is the "trigger" that begins the Change Management process.

7.2 Objective

The objective of Incident Management is to restore normal operations as quickly as possible with
the least possible impact on either the business or the user, and at a cost-effective price.

The definition of how quickly is quickly should not subject to interpretation. The timeframes for
Incident resolution should be defined in the Service Level Agreements (SLAs) that exist between
the IT Department and the customer.

The speed of resolution will affect the cost. It is this cost-to-speed ratio that is often forgotten when
a user faces problems. Issues that are low priority during negotiations are "somehow" escalated to
the status of requiring high levels of attention when the issue occurs.

Often support staff will simply respond to user pressure in such situations and immediately the
expectation is adjusted and anything less than immediate response to this otherwise low priority

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issue is considered as poor service (the IT Support dilemma!)

7.3 Process Description

As with every process there is an Input and an Output.

The main input to this process are incidents. As shown in below Incidents can come from many
sources like users, management Information or infrastructure monitoring tools.

The Input for Incident Management mostly comes from users, but can have other sources as well
like management Information or Detection Systems.

The outputs of the process are RFC’s, resolved and closed Incidents, management information
and communication to the customer.

This concept is illustrated in the following diagram. The centre diamond shows the activities of
Incident Management.

7.4 Activities

The activities included in Incident Management are:

• Incident detection and recording

• Classification and initial support

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• Investigation and diagnosis

• Resolution and recovery

• Incident closure Incident ownership, monitoring, tracking and communication

7.4.1 Incident detection and recording

Throughout an Incident lifecycle specialist IT groups will handle the incident at different stages. To
do this efficiently and effectively a formal approach is required, which will facilitate the timely
restoration of service following an incident.

As shown incidents come from many sources. The Service Desk (more commonly known as a
Help Desk) is the primary point for recording incidents, although other IT staff can play this role as
well. The Service Desk is the single point of contact between service providers and users, or their
representatives, on a day-to-day basis and typically the owner of the Incident Management
process.

Incident tracking is highly recommended. Information about incidents should be held in the same
Service Management tool as problem, known error and change records. Records should be cross-
linked to eliminate the need for re-keying data. This improves information interfaces and makes
data interrogation and reporting far easier.

Incident priorities and escalation procedures need to be agreed as part of the Service Level
Management process and documented in SLAs.

7.4.2 Classification and initial support

Incidents should be classified according to three criteria (Priority, Impact & Urgency).

Priority
One of the important aspects of managing an Incident is to define its priority. How important is it
and what is the impact on the business? The responsibility for this definition lies with the Service
Level Management process. The priority with which Incidents need to be resolved, and therefore
the amount of effort put into the resolution of and recovery from Incidents, will depend upon:

o The impact on the business

o The urgency to the business

o The size, scope and complexity of the Incident

o The resources availability for coping in the meantime and for correcting the fault.

Impact
'Impact' is a measure of the business criticality of an Incident or Problem. Often this equates to
the extent to which an Incident can lead to degradation of agreed service levels. Impact is often
measured by the number of people or systems affected. Criteria for assigning impact should be
set up in consultation with the business managers and formalized in SLAs.

When determining impact, information in the Configuration Management Database (CMDB) should
be assessed to detect how many users will suffer as a result of the technical failure of, for
example, a hardware component. The Service Desk should have access to tools that enable it
rapidly to:

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o Assess the impact on users of significant equipment failures

o Identify users affected by equipment failure

o Establish contact to make them aware of the issue

o Give a prognosis

o Alert second-line (specialist) support groups, if appropriate

Urgency
'Urgency' is about the necessary speed in solving an Incident of a certain impact. A high-impact
Incident does not, by default, have to be solved immediately. For example a User having
operational difficulties with his workstation (impact 'high') can have the fault registered with urgency
'low' if he is leaving the office for a fortnight's holiday directly after reporting the Incident.

Urgency is seen as to what degree the service is affected (stopped, partially affected, functionally
changed). If a user calls with an Incident and they can’t work (service stopped) then it is of greater
urgency than a user calling to request a functionality change.

7.4.3 Investigation and diagnosis

Once logged the activity of investigation and diagnosis will take place. If the Service Desk can’t
solve an Incident it will be assigned to other support levels. They will then investigate the Incident
using the available skills sets and tools such as a knowledge base of Known errors etc, and
diagnose the problem. It is important that all parties that work on the Incident keep record of their
actions by updating the Incident record.

7.4.4 Resolution and recovery

Once a "work-around" or a solution to the incident is found it will be implemented. If a change is


needed an RFC will be submitted to Change Management.

7.4.5 Incident closure

For the Incident Management process to be effective it is necessary that the Incidents closure be
done properly. This step includes:

o Updating Incident details

o Communication with the user about solution

To ensure the solution provided meets the user needs they are the only person that can give the
authority to close an Incident. The Incident record in the Service Desk tool should be ‘closed’ so
that accurate reporting can be carried out.

An Incident will be closed as soon as the agreed service is restored.

In some cases the Incident record is closed but a Problem record is still open (Refer to Problem
Management for more information about a Problem record).

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7.4.6 Incident ownership, monitoring, tracking and


communication

Whilst an Incident may be passed across different IT groups during investigation and diagnosis the
Service Desk remain the owner of the Incident (in terms of tracking through to closure). They will
monitor the progress of the Incident in light of service levels and maintain/manage communication
with the user. If the Incident is not progressing appropriately then the Service Desk may trigger
either a functional or hierarchical escalation. These different types of escalation are covered in the
Best Practices section.

7.5 Roles

The role of Incident Manager in most organizations is assigned to the Service Desk Manager.

The Incident Manager role includes responsibility for:

• Monitoring the effectiveness and efficiency of the process

• Controlling the work of the support groups

• Making recommendations for improvement

• Developing and maintaining the Incident Management system

• Reporting to management and other process areas

Support roles:

First line support will be done by the Service Desk and includes the recording, classifying,
matching, routing, resolving and closing incidents.

Second and third level support is responsible for in investigation, diagnosis, and recovery from
incidents.

7.6 Relationships

Incident Management has a close relationship with other ITIL processes. Some of these inter-
process relationships are described here.

7.6.1 Configuration management:

Every Incident is connected to a Configuration Item (C.I.) stored in the CMDB. An incident will
typically involve more than one C.I.

The CMDB provides information about CI’s and the parent/child relationships between them. This
helps to determine the cause, solution and routing of an incident by tracing a fault back through
the C.I. relationships. For example, if a user cannot access the Internet, by looking back through
the parent/child relationships of that users PC could find that a Hub that the user connects to
(parent of the child PC) is a potential C.I. that should be investigated.

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7.6.2 Problem Management

Incidents with unknown causes are routed to Problem Management where they are processed.

Known Errors, Work-arounds, Quick Fixes is given to Incident Management by Problem


Management.

7.6.3 Change Management

This process can be the cause of Incidents if a Change is not implemented correctly. Therefore it
is very important that Incident Management knows all planned changes so they can relate
Incidents to a change and notify the Change Management process so that roll-back plans can be
implemented if necessary.

On the other hand some Incidents will be solved by a Change, as will be the case when faulty
equipment is replaced.

7.6.4 Service Delivery Processes

Incident Management provides and gets information from all the Service Delivery processes.
Service Level Management, for example, is responsible for establishing service levels that relate to
work done within the Incident Management process. The Service Desk will then report against
these service levels.

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7.7 Benefits

A well implemented Incident Management process will have easily visible benefits. Unlike some
other ITIL processes where benefits may be hard for end users to identify, the benefits of good
incident management will be felt by them directly.

For customers

• Quick restoration of Service following an Incident

• Incidents are not lost or forgotten

• Up to date status of their Incident provided

For IT Organization

• Remove the problem of duplication of effort (once an Incident is solved the resolution will be
easily found and can be applied to future incidents if the re-occur or the resolution can be a
starting point for a different but related incident).

• Clear view of the status and priorities of the Incidents

• Possibility to measure performance against SLA’s.

• Higher user and customer satisfaction

For the business

• Prioritization - the high impact, high urgency, incidents are the ones that jump to the front
of the queue. Resulting in the least possible impact on the business activities.

• Quicker resolution of Incidents leading (productivity gains).

• Management information is provided.

Defining benefits is relatively easy. Realising benefits is difficult as during times of incident a lot of
end users will not want to be convinced that their incident is not a high impact/high priority task
and that there are other incidents demanding attention ahead of them.

This is where the communication skill of IT Staff must be at it's highest (and most tactful).
Carefully selecting the words used to convey this message can be learnt. For instance
acknowledging the frustration they are facing and providing a very brief overview of the things ahead
of them in the queue. This way the person can (hopefully) understand that there are more pressing
issues ahead of theirs. Not dismissing their call as "unimportant" or "I'm busy with other people" or
"You'll have to wait".

7.8 Common Problems

We know there are many benefits of a good incident management process. Likewise, there can be
some real "show stoppers". The following major obstacles if not dealt with will mean the process
will be inefficient and ultimately unsuccessful.

Critical Success factors for successful Incident Management:

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• A CMDB needs to be set up before Incident Management is implemented. This makes the
determination of impact and urgency a lot faster. The CMDB will ideally be an electronic
system, but it can be a manual system.

Note: The CMDB is the Configuration Management Data Base. The CMDB is covered in the
Configuration Management process chapter. The CMDB holds information about C.I.'s
(Configuration Items).

• A knowledge database. This database will hold Known errors, work arounds and
resolutions. This will help Incidents to be resolved much faster and with less effort.

• An Incident Management tool to record and monitor Incidents easily. (Preferably this tool is
part of a complete Service Management tool that integrates the tools from all processes).

The challenge in the implementation of these tools and databases is not to let the work of setting
up the system stand in the way of making progress.

Any ITIL process can be started in a very simple form. The biggest challenge facing IT
professionals is that it takes "discipline" to use the tools and procedures. The sooner the
discipline of logging information, searching for solutions rather than re-working solutions can begin,
the better.

If people start to use the tools and start to see benefits in doing so, then so the proper "habits"
are formed. It is then a relatively easy task to modify behaviours to use a different tool or introduce
new features/functionality as tool development or tool selection progresses.

7.9 Metrics

Many metrics can be obtained from this process, some of the more notable and useful are:
• Number of Incidents per time period
• Number of Incidents per category
• Number of Incidents per priority level
• Incident resolution performance against service levels
• Number of closed Incidents per time period

7.10 Best practice

7.10.1 Incident Management tools:

There are many Service Management tools on the market that now align and provide functionality
to support ITIL processes. These tools have many features, which assist in automating the
process such as:
• Quick Call Logging (one click to log a call)
• Auto population of data
• Automated alerts from infrastructure devices and applications that automatically generate
an Incident record
• Advanced knowledge bases
• Customizable reporting
7.10.2

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Different types of escalation


In a functional escalation environment, the physical escalation of an incident usually takes place
because of either a lack of expertise at a specific level or due to service levels being breached.

Hierarchical escalation occurs usually more proactively (e.g. when the service desk identifies
early that there is the likelihood of a breach and escalates manually rather than waiting for the
time lapse).

Incident life Cycle


The following diagram shows the activities throughout the Incident Management process and the
status that each activity can be set at. Throughout the activities the continual issue surrounding
ownership, monitoring and tracking must also be considered.

7.10.3 Interesting Websites

• http://www.helpdeskinst.com/publications/practices.asp

• http://www.itil-service-support-management.com/Pages/Service support/Incident
management/Incident_mgmt.htm

• http://www1.worldcom.com/au/resources/whitepapers/pdf/WorldCom_White_Paper_On_eC
RM.pdf

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• http://www.itil.co.uk/online_ordering/serv_supp_graphs/incident_mngt.htm

• http://tools2manage-it.com/serv_mgt.php

7.11 Essential Terms

Incident

"Any event that deviates from the (expected) standard operation of a system."

An incident is often simply a user requesting help for something that is not working. For example
“I can’t see my network drive”, “I can’t access the Internet”, “I can’t send email”. It is any situation
where something does not work and the specific details are not known.

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Work around

It is possible for Problem Management to identify “work-around” in the investigation of problems.


These should be made known to Incident Management so that they can be passed to the user until
the permanent fix is implemented.

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8.0 Problem Management

8.1 Introduction

Problems have a tendancy to always happen !!. No matter how well things are running. Even with
the most reliable IT, the service delivery will be troubled by disruptions that cannot always be
avoided.

We have learnt that an incident is a deviation from standard operation. This means that users can
face many incidents and a lot of the time they will face the same incident many times.

A user calls with an "incident" - the Service Desk captures the call and gives great Incident
Management support : "re-boot your PC and see if that fixes it". It does. The user is happy. The
next day the same user calls with the same incident, with the same great incident support. "Re-
boot your PC". On the third day the user does not call again, they just re-boot their PC and start
to live with the issue. Then they start to tell other users - just re-boot your PC that'll fix it. All of a
sudden we have a plague of PC re-booting users !!!

So how do we avoid the plague? By introducing Problem Management. The first incident that was
fixed by re-booting the PC should have been passed to Problem Management.

An example where Problem Management can make a difference:


In an organization a user calls the Service Desk with the complaint that his document is not
printing. The Service Desk investigates the incident and sees that the print queue has the status
‘On Hold’. The Service Desk releases the queue, the document is printed and the Incident
closed. A few minutes later another users calls the Service Desk … Their document is not printing
.. As this is a different person answering the phone he investigates the Incident and sees that the
queue is on Hold, releases the queue and the incident is closed..

In the mean time users print their documents over and over again as they think they’ve done
something wrong. The next day users still call with the same problem, the document still not
printing … The Service Desk releases the queue when applicable, the document is printed and
Incident is closed.

If Problem Management were in place a problem would have been identified and recorded. The
"Known Error" related to this problem would be found in the configuration of the Printer. The
solution, to reconfigure the printer so the queue is automatically released, would be found and
implemented. The stream of Incidents regarding this printer would cease.

The releasing of the queue by the Service Desk would be used as a workaround to restore the IT
service in the event of the printer facing a similar issue in the future.

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8.2 Objective

The objective of Problem Management is to minimize the total impact of problems on the
organization. Problem Management plays an important role in the detection and repair of
problems to prevent their reoccurrence.

The following slide says this in a different way but also introduces the crucial element of proactive
problem management.

8.3 Process Description

The Problem Management process is focused on finding weaknesses in the IT infrastructure and
through the use of Change Management removing them so that future disruptions do not occur.

The process focuses on finding patterns between incidents, problems and known errors. These
three areas are key things to understand in this "root cause analysis". The basic principle is
starting with many possibilities and narrowing down to a final root cause.

Note: "Root Cause analysis" is often used interchangeably with Problem Management. The ITIL
Framework doesn't prescribe what a process area should be called and Root Cause Analysis is
fine. However, Root Cause Analysis is typically a reactionary exercise. ITIL's Problem
Management caters for reactive work, but more importantly recognizes the value of proactive
problem management. We use Root cause analysis interchangeably with Problem Management.

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Incidents:

An incident is defined as a deviation from the standard expected operation of a service. It is a


general description of something that has gone wrong. It is not known what the exact cause is at
this stage. For example users will call a Help Desk and say, “I can’t print”, “I can’t access the
Internet”, “I can’t see my network drive”. They expected to be able to do these things yet could
not, so these are "incidents".

Problem:

A problem is the “unknown underlying cause of one or more incidents”. This is the second stage
of "root cause analysis"/problem management. From the general incidents, more investigation will
uncover an underlying cause of these incidents. A “network problem” is a good example of a
problem definition in this case. Users don't call saying I have a "network problem", they call and
say "I can't save to my H: drive" or "I can't print or surf the web". IT staff then piece all these
incidents together and identify that we are facing a "network problem".

Root cause analysis has taken us closer to finding the root cause but not completely. A problem
is then a more specific definition.

Known Error:

A Known Error is the final step in the root cause analysis process. A Known Error can be defined
as, “when the root cause of the problem is known”. In our network problem example it is where
the faulty equipment or system has been identified.

This is the end of the root cause analysis process. Following the above example the Known error
would be “Router x is faulty”.

From the above we see the initial general issues being faced through to the final definition of the
root cause. The following diagram illustrates this flow.

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The process of Problem Management requires the following inputs:

• Incident records and details about Incidents

• Known Errors

• Information about C.I.’s from the CMDB

• Information from other processes (eg. Service Level Management provides information about
required timeframes, Change Management provides information about recent changes that
may be part of identifying the known error).

The outputs of the process are:

• RFC’s (Request for Change) to start the change process to solve the Known Errors.

• Management Information

• Work arounds

• Known Errors

• Update Problem records and solved problems records if the known error is solved.

The following picture summarizes this. The center diamond highlights the Problem Management
activities which we will look at in the next module.

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8.4 Activities

The ITIL Problem Management has four primary activities as follows:

• Problem Control

• Error Control

• Proactive Problem management

• Completion of Major Problem Reviews

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Problem Control

The Main activities within Problem Control are:

• Identification and recording of Problems

o Some problems can be identified by processes outside Problem Management (eg.


Capacity Management).

o It is also wise to note that the time, effort and cost that goes into fixing problems
must be weighed up against the benefits of doing so. If costs outweigh benefits a
simple Problem record can be created that links all affected C.I.'s, RFC's and
Incidents.

• Classification of Problems

o This activity centres on understanding what the impact on agreed service levels is
of the problem. Classification of problems is similar to Incident classification
(impact, urgency, priority).

• Investigation and diagnosis of Problems

o This is the step where we get to understand what it is that is causing the problem.
This step is vastly different from Incident Management investigation where the focus
is "rapid restoration" of service.

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Error Control

Error Control is the process in which the Known Errors are researched and corrected. The request
for change comes from this sub-activity and is submitted to Change Management and then
following approval the change is actioned.

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Proactive Problem Management

The best problems are the ones that never happen. !

Proactive Problem Management focuses the analysis of data gathered from other processes and
the goal is to define “Problems”. These problems are then passed off to Problem and Error Control
procedures, as if they had happened.

The activity includes:

• Trend analysis

• Using data to highlight potentially weak components.

• Targeting preventative action

• Trend analysis can lead to identifying general problem areas.

The aim of proactive Problem Management is to redirect efforts away from always being reactive,
to proactively preventing incidents occurring in the first place.

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Completion of Major Problem reviews

At the end of a major problem cycle, there should be a review to learn:

1. What things were done right?

2. What things should we have done differently?

3. What lessons do we take away from solving this problem?

8.5 Roles

Problem Manager Role

The role of Problem Manager is responsible for:

• Developing and maintaining Problem Control and Error Control

• Assessing the efficiency and effectiveness of Problem Control and Error Control

• Providing management information

• Managing Problem Management personnel

• Obtaining the resources for the required activities

• Developing and improving Problem Control and Error Control systems

• Analyzing and evaluating the effectiveness of Proactive Problem Management

Problem Support role

The Problem Support team is responsible for:

• Identification of Problems

• Investigation of Problems leading to the Known Errors

• Monitoring the Process of eliminating Known Errors

• Raise RFC’s when necessary

• Identify trends

• Communicate Work arounds and quick fixes to Incident Management

Relationships

The Problem Management process has a close connection with the following ITIL processes"

Incident Management:

A very close and obvious link as we have learnt. Problem management aims to solve the root
cause for the Incidents that are recorded by Incident Management. It is important that Incident

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Control provides accurate information so that Problem Control can solve the Known Errors easier.

Problem management will supply Incident Management with workarounds and quick fixes where
possible.

Change Management:

If Problem Management finds the solution to a Known Error they have to submit a RFC for the
Change. Change Management is responsible for the implementation of the Change. When it is
implemented they, together with Problem Management, review the Problem to verify that it is
solved by the Change. This is called a Post Implementation Review after which Problem
Management can close the problem record.

Configuration Management:

The information that is provided by Configuration Management is important in diagnosing


problems. It includes information about C.I.’s and relationships with other C.I.’s.

Other processes:

Service Level management, Configuration Management and Availability management all provide
Problem Management with information, which help to define and determine the impact of
problems. In return Problem Management provide these and the other process with relevant
information, for example, to SLM if a problem causes a IT Service to operate outside the Agreed
Service levels or to Capacity Management if a certain hard disk is the cause of a Problem.

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8.6 Benefits

Problem Management improves the IT service quality by resolving the root cause of incident(s).
This leads to lower amounts of Incidents - benefiting users, customers, the organization and the IT
department:

Advantages are:

• Better quality of IT Service Management

• Reliable IT Service results in a better reputation of the IT service

• Ability to learn from the past

• IT staff will be more productive

• Higher resolution rate for Incidents at the Service Desk first time around

• Less Incidents

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8.7 Common Problems

Common problems for Problem Management include:


1. Incident Management and Problem Management don’t have well defined interfaces with
each other.
2. Known Errors are not communicated to Service Desk/Incident Management
3. No Commitment from Management
4. Unrealistic expectations of the Problem Management process.
The following slide raise these and other points of attention that have to be considered.

8.8 Metrics

Successful Problem Management can be measured by:

• Reduction in Incidents because the underlying causes are removed

• The time that is needed to resolve Problems

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• The other costs that are incurred associated with the resolution

Within Problem management there is lot that can be measured. It depends on the scope of
Problem management as to what is relevant.

Some examples are:

• Time spent per organizational unit fixing problems

• Number of RFC's raised

• Ratio of proactive to reactive problem management

8.9 Best practices

Considerations for Problem Management, a high-pressure area for IT.

The variety, complexity, volume and difficulty of problems facing Support teams today compared to
the "early days" (those of a decade ago) seem child's play. Why? Increases in user demand have
led to vast numbers of PCs; distributed Client/Server networks; multi-site, multi-platform systems;
cheap but complex software packages; all in addition to the traditional mainframe systems, and all
needing the same high levels of technical support, and all to be delivered with a sensitive
'customer care' attitude.

This increasing workload is threatening the whole stability of IT. If we don't find a lateral solution for
managing it, demand will simply continue to grow at its present rate. The result? Support functions
will soon dwarf the rest of IT in terms of number of personnel, running costs, and quality of
expertise. And ignoring the problem, in the vain hope that it will go away, is even worse.

Demand must be managed down, resources re-allocated, recurring problems eliminated, and
difficulties anticipated and addressed before they become problems. Aggressive, effective and

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financially viable Problem Management is an integral step in achieving this. Otherwise IT will
simply grind to a halt, grid locked and unable to function.

Note: the following web links provide some additional research material. The Kepner-Tregoe link is
an interesting one. KT Analysis is a long serving tool that can be very useful in carrying out the
Problem Management process activities.

Interesting Websites

• http://www.itilworld.com/n-america/service-support_probmanage.htm

• http://www.kepner-tregoe.com

• http://www.itil-service-support-management.com/Pages/Service support/Problem
management/Problem_mgmt.htm

• http://www.itil.co.uk/online_ordering/serv_supp_graphs/problem_mngt.htm

8.10 Essential Terms

Work Around:

A "quick-fix" solution to an incident, which will produce an acceptable outcome for a limited period.

Proactive Problem Management:

Activities aimed at removal of errors while the errors are in a state of inactivity.

Key success factors in Problem Management:

• Automated registration of incidents with correct classification.

• Setting attainable objectives of the Process. Depending on the size of the operation, not
even treating this as a full time role.

• Good inter-process co-operation (especially Incident and Change).

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9.0 Change Management

9.1 Introduction

As organizations become more dependent on IT services and technology changes rapidly succeed
one another, the need for proper management and control of change grows with it. Many problems
in the quality of IT Service Support emerge from changes in existing IT systems. The ITIL Change
Management process is designed to act as a planning and control process. Proper planning and
control ensures the implementation of change can take place without interrupting the operational IT
service delivery.

It is Monday July 1st. End of financial year. For many organizations it is the time of the year to
close out and get final figures for the previous 12 months. Lots of reports being run, lots of heavier
than normal requests on systems, lots of printing, etc.

Imagine then a Service Desk where the phones start ringing at the start of the day. “My report is
not showing any figures.” “I can’t find any details of last year.” “All figures for last year are lost.”

Mild panic quickly escalates to all out concern as no-one really knows what has happened. They
all individually try and solve the incident of each user by investigating the software etc. Nothing
seems to be wrong, with the system functionality, it's just that the reports are all blank !

By now the IT Director is looking for some answers from his staff. He has to report to the
business manager on what has happened and why should he keep his job !

Then one of the Service Desk staff strolls in. He's had a late start as he worked back last night.
He notices the panic and asks what is wrong. When he hears the story he turns red and tells them
about the change they made the night before. You can hear a pin drop !

He thinks he may have caused the problem. They look into it and it seems it is the problem so
the staffer is asked to roll-back the change. Only trouble is no-one seems to have kept a copy of
the configuration prior to the change. So, the only way to solve this issue is to correct the problem
in the change. At the end of the day the problem is fixed and the figures for last year are back.
Things start to go back to normal at the Service Desk …

But the IT Director stills feels the wrath of the business people, along with the known business
cost of the lost hours of productivity and still considers finding another role !

This is a situation that you want to avoid and with a good Change Management process it is
possible!
In our example, with ITIL Change Management in place:

• The Service Desk would have known about a change being done the night before so they
could have made the connection between problem and change a lot earlier.

• The change wouldn’t be scheduled prior to such an important day in this organization
because of the risks involved.

• The Change would have been tested properly so the whole issue might have been avoided.

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• A proper roll-back would be in place resulting in a quicker solution of the problem.

9.2 Objective

For an effective and efficient IT service delivery it is necessary to have the capability to implement
many changes correctly. Changes in reality often lead to (implementation) problems.

The created problems are subsequently resolved by the implementation of a change, which in turn
leads to more problems. Breaking this negative spiral is an important task for Change
Management.

ITIL's goal statement for Change Management is...

"Assuring that standardized methods and procedures are in use for the efficient and
timely implementation of all changes, in order to minimize the impact of change related
problems on the quality of the IT service delivery".

The goal also build an internal understanding of the "how and why" for the process (how =
standardized methods and procedures, why = to minimize impact).

Remember....
"Not every Change is an improvement but every improvement requires a change"

9.3 Process Description

The common trigger for Change Management is a Request for Change (RFC). RFC's come from
within the IT organization as well as from the Customers.

Another trigger for change can be the Forward Schedule of Changes (FSC). This schedule is
drawn up in advance in agreement with the customer. The FSC documents known change events
or agreed windows of change, that can be used for unforeseen (non-urgent) changes.

Other inputs for the process is CMDB information about the affected Configuration Items
(C.I.’s) and the relationships that exist between the affected CI's. This vital information contributes
to the assessment that the Change Management process has to make about the impact (potential
or otherwise) or a proposed change.

The output of the process includes reports regarding the changes, triggers for Configuration
Management to change the CMDB, triggers for Release Management to release, develop or
implement new software or hardware and Change Advisory Board (CAB) agenda and planned
actions.

Note: The CMDB (Configuration Management Data Base) is discussed in the Configuration
Management chapter. Change records can be held in the CMDB, which allows them to be "linked"
to affected CI's or Configuration Items.

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The Scope of Change Management is determined along with defining the scope of Configuration
Management.

If the Configuration Management process is to track details of hard disks and floppy drives, then
replacing a hard disk counts as a change (albeit a "minor change").

Determining the scope is a dynamic activity, as the scope can change and therefore the need for
information needed from the CMDB can change as well. Reviewing the scope on a regular basis is
important.

It is not necessary that not all changes are controlled by the Change Management process. For
example minor changes, such as resetting a password etc can be done by the Service Desk
(following set procedures) but doesn’t need to be controlled by Change Management. To do so,
would lead to increased workload, frustration and "by-passing" the process.

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9.4 Activities

The Change Management process includes the following activities:

• Recording

• Accepting

• Classifying

• Planning

• Co-ordination of activities

• Implementing

• Evaluating

9.4.1 Recording

Although this activity is not carried out by Change Management itself, it is the responsibility of
Change Management to make sure all Changes are recorded correctly.

9.4.2 Accepting (Rejecting)

At this stage RFC’s will be reviewed and accepted or rejected. Any rejection should always be
communicated and explained. A reason for the rejection of an RFC might be that it is incomplete
or illogical. Accepted RFC's then be classified.

9.4.3 Classifying

In this stage the RFC will be categorized and a prioritized. The category depends on the impact
the change has and the resources needed to do the change.

The priority is derived form the urgency and the impact of the change, along with knowledge that
the Change Management process may have from other process areas, that the change requestor
is not aware of.

9.4.4 Planning

The change will be planned and put on the Forward Schedule of Change (FSC), if appropriate. The
Change Advisory Board (CAB) meets to review the FSC. The FSC will consist of:

? Planning in time, people, and budget


? Indication of consequences for other changes
? Advice on whether the change should be a go or no-go

9.4.5 Coordination

If approved the change must be built, tested and implemented. Change Management doesn't do

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this work, but it co-ordinates the activities to ensure progress is made. Change Management will
also verify that a back out plan has also been developed and submitted for approval.

9.4.6 Evaluating

Each change (except minor standard changes) should be evaluated to see if the changes had the
desired effect. The effort put into a post change evaluation will be dependant on the size of the
change and the impact it had on the organization (good or bad, what lessons can be learnt).

9.5 Roles

9.5.1 Change Manager

The Change Manger is responsible for:

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• Processing of the RFC’s, including filtering, accepting and classifying them.

• Planning, coordinating (with all parties) and the implementation of the Changes.

• Closure of RFC's

• Authorization, after advice from the CAB or the CAB/EC

• Where appropriate, to obtain authority for Changes to proceed (the level of authority
required will depend on the impact that the change is expected to have, it's cost and it's
urgency).

• To issue the FSC's (Forward Schedule of Changes) via the Service Desk

9.5.2 Change Advisory Board (CAB)

This board should to be made up of representatives from all areas within IT and representatives from
business units. The CAB can have an element of flexibility so if there are no changes on the
Agenda that effect a specific business perhaps they don’t have to be present at the CAB Meeting.

The CAB assess and plans the major changes.

9.5.3 Change Advisory Board/Emergency


Committee (CAB/EC)

A sub-set of the CAB that can meet at short notice to consider Emergency changes.

9.6 Relationships

The Change Management process depends on the accuracy of the configuration data to ensure
the full impact of making changes is known. There is a very close relationship between
Configuration Management, Release Management and Change Management.

The following diagram illustrates some of the major process relationships.

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Advising the Service Desk of changes is crucial. Changes are nearly always first "discovered" in
the Incident Management process, via the Service Desk.

Also the Problem Management process can submit RFC’s to solve Known Errors and sometimes
this can cause a snow-ball effect, if the Configuration Management process is unable to explain
what the affected components will be as a result of the change (including hardware, software,
SLA's).

Note: SLA's (Service Level Agreements) are discussed in the Service Level Management process.
It is possible to store information about an SLA in the Configuration Management Database
(CMDB). By doing this relationships can be created between hardware or software components
and the SLA. So when a change is proposed to a component the linked SLA can be investigated
to determine if the change will breach the SLA.

The others processes are also linked to Change Management in the sense that they either request
changes (Availability Management) or they will be consulted to determine the impact of changes
(IT Service Continuity Management, Service Level Management and Capacity Management).

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9.7 Benefits

Change Management is one of the ITIL processes that can often be not really liked. IT Staff have a
tendancy to think that "it's only a small change, no-one will be affected".

It is in these situations that most damage is often done. Discipline is required to adhere to the
process. As an IT support person if you are told to implement the change without following the
process, ask for the directive in writing, that way there can be no mis-understanding when
problems come up.

Remember that low impact, low risk changes can be covered by creating a change request that is
open-ended and approved. For example, hard disk archiving. Provided the change is documented,
the affected parties listed and the RFC is closed, reviewed and re-opened on a periodic basis then
there is no need to create a seperate RFC every time the change is required.

The concrete advantages of Change Management are:

• Less impact of changes on the quality of the IT service delivery and the Service Level
Agreements (SLA's).

• Through structured planning, the cost of a change can be estimated more accurately

• Fewer changes need to be reversed, but if the need arises it is a simpler process

• Collection of management information is possible on changes.

• Increase in productivity of the user because of a reduction of service interruptions.

• Increase in productivity of IT staff (less time lost of fixing changes).

9.8 Common Problems

Along with the benefits of the any process, we have to acknowledge the inherent problems as well.
Change Management is a highly visible process, both within the IT Department and the business
users and business customers.

Note: The distinction between Customer and User is straightforward. The customer is the one
paying for the service. The User is the ultimate end-user of the service.

Tool Selection

You need an appropriate tool to support the Change Management process. Ideally, a single tool
will be able to accommodate the activities of a number of ITIL processes. With Change
Management, it would be almost essential that the same tool be used as the Configuration
Management Data Base.

Defining the Scope

If the changes that are controlled by Change Management are too wide (eg it includes password
rests) the workload will become to high and people will try to bypass the process.

Commitment
IT staff might be reluctant to follow procedures because Change Management will be involved in so

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many aspects. It is important to make the IT Staff aware of the positive effect the Change
Management process will have on the IT Service as a whole. It is also necessary to ensure that
the team designing the process do not over engineer a solution. Start simple and build up
complexity if it's (a) necessary and (b) value-adding.

9.9 Metrics

The beauty of all ITIL processes is that they can be measured. Measurement allows baseline
setting and targets to be set for improvement.

Change Management is no different in this regard and the following indicators are common for
measuring this process.

• Number of Incidents recorded as a result of a change

• Time taken to implement a change successfully

• Number of Changes that required a roll-back

• Number of Urgent/Emergency changes

• Number of RFC's submitted for consideration

• RFC rejection count

• Change back-log

• Changes by business unit/areas/department

9.10 Best practices

The following list of sites provide some excellent background reading on Change Management.

9.10.1 Interesting websites

• http://www.itil-service-support-
management.com/Pages/Service%20support/Change%20management/Change_mgmt.htm

• http://www.itilworld.com/n-america/service-support_changeman.htm

• http://www.infra.com.au/TuDelft.htm

• http://www.itil.co.uk/online_ordering/serv_supp_graphs/sschange.htm

• http://www.microsoft.com/technet/treeview/default.asp?url=/technet/itsolutions/ecommerce/
maintain/operate/rmdotcom.asp

• http://www.atlsysguild.com/

• http://www.guild.demon.co.uk/SpecTemplate8.pdf

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• http://www.guild.demon.co.uk/SpecTemplate8.rtf..zip

• http://www.atlsysguild.com/GuildSite/Robs/Template.html

9.11 Essential Terms

Change

Change to a system or service.

CAB

Representative group of stakeholders, who assess the change requests. The Change Advisory
Board advises the change manager on whether the change should be accepted or rejected.

Request for Change (RFC)


All requests for modification of the managed infrastructure that are not Service Requests.

Service Request

Fully defined and approved changes, which are individually recorded, but not individually assessed
by Change Management. These changes are made routinely.

Forward Schedule of Change (FSC)

A change schedule, which contains all the planned changes for a certain period of time.

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10.0 Configuration Management

10.1 Introduction

Through the storage and management of data regarding the IT infrastructure the Configuration
Management process gives the IT organization greater control over all the IT assets. The more
dependent on their IT systems organizations become, the more important Configuration
Management becomes.

It is, therefore, necessary to keep a register of all Configuration Items (C.I.'s) (IT Assets) within the
IT infrastructure. Configuration Management aims to provide a "logical model" of the IT infrastructure
by identifying, controlling, maintaining and verifying the versions of all C.I.'s.

10.2 Objective

The main objectives of the Configuration Management process are to:

• Provide IT Management with greater control over the C.I.s (IT Assets) of the organization.

• Provide accurate information to other ITIL processes.

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• Create and maintain a reliable Configuration Management Database (CMDB).

Note: The keyword in the following slide that defines the difference between asset management
and configuration management is "relationships". Traditional asset management provides a list of
items (typically hardware and software). Configuration Management defines relationships between
all C.I.'s.

Note: In the earlier Change Management process chapter we discussed the importance of getting
accurate information from the Configuration Management process.

10.3 Process Description

The Configuration Management Process could almost be considered as a pivotal process for all
other (especially the Service Support) processes. Configuration Management is considered central
and supportive to the other ITIL processes by providing information about the IT Infrastructure.

Reminder Note:

• Service Support processes = Incident, Problem, Change, Configuration, Release

• Service Delivery processes = Service Level Management, Availability, Capacity, Financial, Continuity

o Service Desk is a function and Security Management has an active part in all processes.

A major input into the Process is from Change Management either requesting information about
items that will be affected or advising the status of changed items.

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The process starts with the design, populating and implementing of the CMDB (Configuration
Management Data Base)

It is the responsibility of Configuration Management to maintain the CMDB. Populating the CMDB
can be a costly and lengthy exercise depending on the scope of IT infrastructure that is to be
managed and the depth of detail about each item required (automated tools can play a large part
here).

The Outputs of the Process are reports to IT management and also the constant availability of
Information that can be supplied from the CMDB to other processes.

10.4 Activities

The activities of the Configuration Management process are:

• Planning

• Identification

• Control

• Status accounting

• Verification and Audit

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10.4.1 Planning:

This includes setting up the process "boundaries" like the goal, scope, objectives, policies,
procedures and interaction expected with other processes.

It is the task of the Configuration Manager to determine what can be achieved, at what cost -
balanced against the business requirements. This combination affects the level of detail and how
many C.I.'s will be specified.

Scope:

The scope of the process must be decided. This essentially answers the question: What will and
will not be included within the process? For example some IT organizations will manage the
PABX and phone systems, in this case these infrastructure items would be within the scope of the
process.

CI Level:

The CI Level refers to the amount of detail that will be captured for each CI. For example is a PC
considered enough detail or is it necessary to capture the hard disk, network card and memory
details. The decision about the level of detail required should depend upon how the information will
be used. A lot of detail requires extra work to keep updated, while too little detail defeats the
purpose of the process and does not contribute towards good decision making.

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10.4.2 Identification:

The identification activity involves the gathering of all C.I. information within the scope of the
process. C.I. information is gathered either manually and/or by the use of automated tools. At the
time of gathering this data each CI should be labeled for reference and control purposes.

Note: The labeling of IT Infrastructure can be incorporated into the Security Management process.
Labeling techniques include visible labels, that include common contact numbers (eg. Service
Desk), reference numbers and even hidden labeling (security paint that shows up under "black
lights" and microchip identifiers that are not visible to the human eye).

The information gathered will be governed by the scope, C.I. level and attributes decided upon.

Note: The attributes of a C.I. are the "things" about that C.I. that we want to record (eg. the
attributes of a Personal Computer can be hard disk size, processor type, processor speed,
Operating system version).

Values are the quantifiable measurement of attributes (eg. the value of a hard disk size can be
3Gig or 8Gig, the value of a processor speed can be 1 GigaHertz or 10 GigaHertz)

Before gathering any information control procedures and the Change Management
process should be in place so that after information is gathered and populated into the
CMDB changes to the infrastructure don’t make it redundant.

Note: The gathering of data can take several weeks or months.

Control

Before the CMDB is populated control procedures should be in place. It is vital that changes to
the CMDB and the CI’s within are only made with the proper authorization. Procedures need to be
set up so that all changes are always documented, for example with authorized RFC’s. We can
start to see the very strong relationship that Change and Configuration Management share.

10.4.3 Status accounting

Status accounting is the activity that records the current and historical states of a C.I. so every
change to a C.I. is traceable. Status levels can be defined as part of the planning process (eg. On
order, In use, Out of order, Under repair, Retired).

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10.4.4 Verification and audit

By conducting regular audits an organization can verify that all C.I.’s are recorded correctly.

The first audit should be held right after the CMDB has been implemented to be make sure it is a
correct representation of the actually IT infrastructure.

Other times for audits can be after disasters, major changes and following a pre-defined timetable.

The degree of audit will again need to take into consideration the value that will be derived from the
audit and the size (and therefore cost) of doing the audit. Partial audits, spot audit checks are all
feasible strategies to "get a feeling" about the level of C.I. accuracy.

10.5 Roles

The Configuration Manager will assist in determining the scope and level of detail required in the
process, implement procedures for interaction with other processes and take responsibility for the
planning and population of the CMDB.

The Configuration Librarian is the person who controls access to master copies of software and
documentation. Like any librarian the focus is on physical items. These items will be held in the
"definitive software library" (DSL).

Note: In small organizations the role of the Configuration Manager and the Change manager can
be combined.

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10.6 Relationships

As indicated, the IT infrastructure forms the foundation of the IT organization. All processes within
ITIL therefore have links with Configuration Management or retrieve information from the
Configuration Management Database.

Change Management and Release Management however, have the closest relationship to
Configuration Management and could even be considered as an integral part of it. The flow chart
shows the relationships between the 3 processes and how the flows between the processes occur
at every stage.

10.7 Benefits

Some of the benefits that come from implementing Configuration Management include:

• ability to provide Information to the other processes about C.I.’s and the relationships that
exist between them.

• contribution to IT Service Continuity planning

• control of the IT Infrastructure. Knowing where a C.I. is and who’s responsible for it.

• efficient and effective Problem management

• efficient and effective processing of Changes

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• as an insurance that legal obligations are being met

• optimal support on security issues

The following slide restates some of these benefits and introduces some new ones.

10.8 Common Problems

Problems that can prevent an effective implementation of Configuration Management are:

• Level of detail for the CI’s is not right. If the level is too deep too much information is
recorded which will take to much time, money and effort to maintain. However, if the level of
detail is not detailed enough parts of a C.I. can be changed without anyone knowing.
This can result in increased incidents and problems due to the difficulty in tracing the faulty
component.

• Urgent Changes. Emergency changes often happen outside normal hours of operation.
There may be no authorized person to record the changes in the CMDB. This can be
combated through a solid procedure of post-change updating. Otherwise the overall
reliability of the CMDB is compromised.

• Commitment: There needs to be a firm commitment from Management to implement this


process, as it can be a high activity process. Discipline is required from IT Staff to ensure
that changes to the infrastructure follow the appropriate steps to keep the CMDB accurate.

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• Interaction with other processes. As Configuration Management relies on Change and


Release Management to a large degree it is wise to implement these processes at the
same time. Failing to do so might result in a non-reliable CMDB and an ineffective process.

• Control. There needs to be a process in place that secures the validity of the CMDB. For
example users who can purchase software themselves via the Internet may create incidents
that are difficult to solve due to unknown configuration changes (the typical "I didn't change
anything !!")

10.9 Metrics

10.9.1 Key performance indicators

The measurement of the Configuration Management process has many potential KPI's that can be
analysed. To measure the effectiveness of Configuration management, realistic targets should be
set. The targets can be changed over time to ensure improvement of the process.

• Result of audits. Number of unauthorized C.I.’s, C.I.’s not in use

• Number of changes that due to wrong Configuration information cause incidents or


problems

• RFC’s that were not completed successfully because of poor impact assessment, incorrect
data in the CMDB, or poor version control

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• The time a change takes from start to finish

• Software licenses that have been wasted or not put into use

Other Indicators could include:

• The amount of calls per month that are solved whilst the User is on the phone using
information from the CMDB.

• Reduction in Incidents and problems over time and the change in impact they have on the
business

• Improvement in the time needed to resolve Incident and Problems that can’t be fixed
immediately

• The number of changes to the CMDB per month because of identified errors in the CMDB.

• Time needed to record a C.I.

10.10 Best practices

10.10.1 The CMDB

Most organizations already use some sort of CMDB, in a spreadsheet or paper based. In most
cases the CMDB is based on database technologies, which makes gathering information more
user friendly. Information that can be gathered from a CMDB include:

• Information about C.I.'s

• List of C.I.s affected by a scheduled a Change

• All Requests for Change relating to one C.I.

• The history of a particular C.I.

• List of change and problem records associated with a C.I.

• List of C.I.'s affected by a Problem.

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A CMDB also contains information on relationships between Incidents, Problems, Known Errors,
Changes, Releases and C.I.'s. The CMDB can aid as a support tool in the creation and on-going
maintenance of legal contracts.

Note: Examples of "relationships" that can be defined are:

• Relies on....

o SLA "Provision of Banking Services" relies on Server 2

o SLA "Provision of Banking Services" relies on Printer 9

• Is part of....

o Hard disk 12 is part of Server 2

• Affects....

o SLA "Provision of Banking Services" affects Customer 11

o SLA "Provision of Banking Services" affects Customer 12

• Is linked to...

o Banking system is linked to Admin system

• Had ......

o Printer 9 had RFC 0013 applied

o Printer 9 had RFC 0035 applied

An additional bonus is the use of the CMDB to cover the legal aspects associated with the
maintenance of licenses and contracts.

The Definitive Software Library (DSL) is a storage place where all software versions are kept
secure. New releases will be built on copies of the software from the DSL, not from the software
that is being used in the production environment. The DSL is plays an important part in the
Release management process and is discussed in more detail in that chapter.

10.10.2 Interesting Websites

• http://www.itilworld.com/n-america/service-support_configman.htm

• http://www.itil-service-support-management.com/Pages/Service support/Configuration
management/Configuration_mgmt.htm

• http://www.itil.co.uk/online_ordering/serv_supp_graphs/ssconfiguration.htm

10.11 Essential Terms

IT infrastructure:

All parts of importance to the provision of IT services. These include: hardware, software, network
and components, documentation, manuals, procedures, air-conditioning, cooling, organization etc

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etc. Staff, however, is not a C.I. (according to ITIL, many organizations choose to include staff into
their CMDB as soon as the organization is mature enough to handle this).

Configuration item (CI):

The IT infrastructure is built from components. Every component of the infrastructure, under the
management of the IT organization, is called configuration item (C.I.). A C.I. may have any form of
complexity or size and may vary from a complete mainframe to, for instance, a PC as well as a
monitor, keyboard or a floppy disk drive.

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Attribute:

An attribute is a characteristic that is recorded about a C.I. Examples of this are: identification
number, colour, type, size, manager, user, price, depreciation, supplier, serial number, version,
status, etc.

Values:

A value is the quantifiable part of an attribute. (examples of values are "red", "10", "E9", "critical")

Links/Relations:

All relationships are normally recorded in a hierarchical structure (such as a parent-child relation).
Other relationships are "is linked to" or "is used by". These relationships should be made
between C.I.s in the CMDB.

Configuration Control:

Ensures C.I.’s are only changed with the appropriate documentation and that C.I.’s are tracked
from procurement to disposal.

Asset Management:

The difference between Asset Management and Configuration Management is that Asset
Management has a list of assets and Configuration Management has a database with
relationships between C.I.s.

Configuration baseline

A Configuration baseline is the configuration of a product or system established at a specific point


in time, which captures both the structure and details of a configuration. It serves as reference for
further activities.

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11.0 Release Management

11.1 Introduction
With the increasing complexity of systems and a greater need for IT organizations to provide a
stable environment, the release of new software and hardware into the business must be closely
controlled. Quite often however a poor release strategy leads to the very thing that others in the IT
organization are working hard to avoid; downtime and loss of infrastructure stability.

The "Catch 22" however is that there in an ever increasing pressure to “have the release sooner”,
as it will deliver immediate “benefits” to the organization. External forces often drive the demand to
get the latest hardware of software into production as businesses strive to be first to market or to
help them gain a competitive edge.

This process within ITIL aims to provide a structured approach to the management of releases into
the infrastructure from release planning through to actual installation. The relationships with
Change Management and Configuration Management are key for this process as all three are very
closely related.

Release Management provides the physical management of software and hardware. Information
about the software and hardware components of the IT and their relationships with one another are
stored in the Configuration Management Database (CMDB). Release Management manages the
planned and applied changes to software and hardware in the IT infrastructure.

To support Change Management and Configuration Management, Release Management utilizes


the Definitive Software Library (DSL) and the Definitive Hardware Storage (DHS).

These secured libraries provide the physical storage location of all software Configuration
Items (CI's) (DSL) and spare parts for hardware (DHS).

Software comes in various forms such as source codes, loads, libraries and executables. The
different versions of the same software held in the DSL have been through authorization and quality
controls and are used for the construction and implementation of releases.

Spare hardware held will be dependant on a risk assessment (looking at the assets of the
organization and then the threats and vulnerabilities), as well as third party involvement regarding
support contracts (Underpinning Contracts). Changes to the production hardware environment
must flow through to the DHS, so that any held spares can be compatible with latest production
hardware.

11.2 Objective
Release Management is the process that "protects" the live or production environment. Protection
comes in the form of formal procedures and extensive testing regarding proposed changes to
software or hardware within the production environment.

Note: The use of the term "Production Environment" conjures up images of a factory or
manufacturing facility. However, it is a generic term applied to all areas of infrastructure in use that
contribute towards the realization of organizational objectives.

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Note: It is the use of this term Production Environment that probably provides an answer to a
question that gets raised a lot regarding the ITIL framework. Can the (ITIL) framework be used in
other business areas, other than IT ?

The answer is most definitely yes. The framework is not a prescriptive set of processes that lack
flexibility. They are a set of generic guidelines that, with the right perspective, can be applied just
as easily to manufacturing & engineering disciplines.

Objectives of Release Management process include:

• To manage, distribute and implement approved hardware and software items.

• Provision for physical and secure storage of approved hardware and software items in the
Definitive Hardware Store (DHS) and Definitive Software Library (DSL)

• Ensuring that only authorized and quality controlled software & hardware versions are used
in the test and production environments.

Note: Even the test environment can be subject to the Release Management process. Many
businesses have a very high reliance on their test centres and cannot afford uncontrolled actions,
simply because the environment is not the front line of the business.

11.3 Process Description

The main components controlled under a good Release Management process include:

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• In-house developed applications,

• Purchased software and custom built software,

• Utility applications,

• Software provided by suppliers for use on specialist systems,

• Hardware and hardware rollouts

• Instructions and user manuals

Release Management manages all software and hardware from purchase or development until
testing and the eventual migration into production.

The process starts with the planning of a new release, be it for hardware or software and ends with
a well documented, securely stored, implemented new release with the lowest possible impact on
the organizations day-to-day activities.

The following diagram illustrates some of the basic before and after situations surrounding the
Release Management process.

11.4 Activities
The following diagram shows the activities of Release Management and their relationships with the
Configuration Management Database (CMDB):

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In a list format the activities described in the picture include:

• Planning and describing the Release Policy of a Release

• The design, building and configuration of Releases

• Testing and signing off of new releases

• Planning the rollout of releases

• Communication, preparation and training

• Release , distribution and the installation

Planning and describing the Release Policy

The Release Policy will document how the organization will approach the release of new hardware
and software in to the infrastructure. Specified in this policy will be items such as:

• The frequency of releases that is acceptable to the business

• A policy on how to issue emergency releases

• A policy on testing and subsequent release into production

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• The scope of the Release Management process ie. What level of control and what parts of
the infrastructure will be under the control of the process

• Naming conventions for releases?

Preparation for any release requires a structured planning approach to increase the chance of
success. The use of a formal project management methodology like PRINCE2 will assist in this
to define items such as:

• Contents of the Release

• A release schedule

• Resource requirements

• Roles and responsibilities

• Project Approach

• Definition of the release components

• Back up plan

• Quality plan

• Acceptance plan

Note: PRINCE2 is an acronym for Projects IN Controlled Environments. Like ITIL PRINCE2 is a
methodology or framework, not a tool for Project Management.

PRINCE2 is published by the same body that publishes ITIL (the Office of Government Commerce
(OGC) in the UK). And like ITIL it is a widely accepted framework for best practice.

You can find extra information on PRINCE2 at: http://www.ogc.gov.uk/prince/

The Design, Building and Configuration of Releases

This activity within Release Management can be considered as the technical stage of the process.
All the actions associated with designing, configuration and building are completed by relevant
staff, in a "controlled" manner.

Note: The term "controlled" is not intended to create an image of bureaucracy. Controlled
environments are reproducible and that is the critical issue here.

At the end of this stage a Back-Out Plan should also have been created. Back-Out plans can be
aimed at restoring all services to their state before any change OR to restore as close to the pre-
change state as is feasible given the nature of the change.

The suitability and content of the Back-Out plan will be assessed during the Change Management
process.

The output of this activity should be a release complete with instructions on its installation, a test
plan and a backout plan.

Testing and Signing-Off of New Releases

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Lack of adequate testing is the most common cause of failure of all (changes) releases.

Testing should not only be done on the release expected end result but also on the
implementation activities and the back out procedure.

Representatives of the Business should test for expected functionality. This is referred to as "User
Acceptance Testing" (UAT). IT staff perform technical tests including the test of the installation
(ideally the test staff will not be the build staff).

Each of these stages should be signed off separately.

Release acceptance should be performed in a controlled test environment that can be reset to
known configurations of both software and hardware. These configurations should be described in
the Release definitions and stored in the CMDB, along with any other related CI’s.

Planning the Rollout of Releases

The overall release plan that was originally created must now be enhanced with detailed
information on the rollout of the release. This will include:

• Task list and resources needed for the task

• A list of all the CI’s to be installed and decommissioned

• In case of multiple sites: action plans for the separate sites taking local differences into
consideration.

• Communications to all involved (users, IT staff)

• Plans for the release rollout purchases (if any)

• Acquiring hardware and software. The rollout plan should include the procedures to be
followed for their secure storage prior to rollout and the mechanisms to trace their
deployment during the implementation.

• Scheduling meetings for managing staff and groups involved in the Release.

Communication, Preparation and Training

It is important to communicate with all parties involved in order to increase the acceptance and
success of the release. This might involve several meetings/training sessions with user groups, IT
staff and Managers.

The timing of any training and/or communication must be planned in accordance with the expected
actual release date.

The Service Desk is a key area that must be informed about the release, any known issues (or
workarounds) that have been established during testing and generally how the new release should
be supported.

The release plan should be made public in case of a large release so users know what to expect
and when.

Release, Distribution and the Installation

Release Management will be responsible for the process of purchase, storage, transport, delivery,

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and hand-over of hardware and/or software.

Distribution and installation are seen as different activities. Often a release will be distributed and
(in the case of software) not "go live" until a log-on script is changed and the release activated.

Following the distribution of the release installation will take place making it available to the user
community.

Release Management must work closely with the other processes (mainly Change Management
and Configuration Management) to maximize the success of the release.

The CMDB should be updated with the new Release details and all old C.I.s should be
decommissioned and appropriately marked in the CMDB (retired, decommissioned, etc.)

11.5 Roles

The main role within the Release Management process is that of the Release Manager.

This person is responsible for defining and maintaining the definition of the release policy and
controlling the activities within the process. The Release Manager will have a good technical
background and a good knowledge regarding latest utilities and support tools.

The combination of roles is permissible for certain ITIL processes. In smaller IT organizations the
combination of the Release Manager, Change Management and Configuration Management
processes is realistic.

Release Management staff will need to receive technical training for development, software
maintenance and hardware build skills.

Project Management is another essential characteristic that is evident in a Release Management


environment.

11.6 Relationships

Release Management is very closely linked with Change Management and Configuration
Management. Change Management controls all the changes and determines when a new release
will be implemented and what changes will be in any release. In most major organizations a
representative for the Release Management process will have a representative in the Change
Advisory Board (CAB).

Note: The CAB is the authorizing body for changes to proceed. Can you remember the term given
to the group of people who approve Emergency Changes?

Configuration Management needs to be informed by Release Management about every change to


a Configuration Item (C.I.) so they can update the CMDB. They also need to make sure that new
versions of software and hardware are being stored in the DSL or DHS. Release Management will
use Configuration Management to get information about C.I.'s that may be affected by a new
release and importantly their relationship with other C.I.s.

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11.7 Benefits

Implementation of the ITIL Release Management process provides the following advantages:

• Software is being released for testing and production in a controlled manner, reducing the
chance of errors.

• The software (source, loads and executables) of the organization is held in a secure
location (the Definitive Software Library (DSL)).

• Ability to implement many concurrent changes in the software being used in the production
environment without adversely affecting the quality of the IT environment.

• Software in remote locations can be managed effectively and economically from a central
point.

• The possibility of the use of illegal copies is dramatically reduced.

• The impact of new hardware is tested prior to installation in the infrastructure.

• With end users more informed of new releases and involved in testing the new releases the
risk of resistance will be reduced significantly.

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11.8 Common Problems

In order for Release Management to be successful the following issues need to be taken in
consideration as they may cause problems:

• Lack of Commitment: End Users might be reluctant at first to be told by this process how
to act in case of a new release. The advantage of this process needs to be communicated
before the process is implemented.

• Urgent fixes. Procedures need to be in place to make sure that they are dealt with correctly
and don’t compromise the accuracy of the CMDB, DSL or DHS.

• Testing. A proper tests environment needs to be available in order to assess the impact and
reduce the risk of a new release.

• Bypassing of the process my cause illegal software or viruses to enter the IT Infrastructure.
Regular audits can help to minimize this potential issue.

11.9 Metrics

In order to assess the effectiveness of the Release Management process a number of key
performance indicators (KPI’s) should be monitored.

Examples of possible indicators are:

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• Releases built and implemented on schedule, and within budgeted resources

• Number of Releases that result in a back out due to unacceptable errors

• Number of Incidents caused by the release

• Outcome of audits of the DSL and the DHS. Security - all software can be accounted for
etc.

• Proper use of the DSL for software development

• Compliance with all legal restrictions relating to purchased software

• Accurate and timely recording of all build, distribution and implementation activities within
the CMDB

11.10 Best practices

Different Types of Releases


ITIL defines three different release types as described.
Delta release

Includes only those CI’s within the release unit that have actually changed or are new since the
last full or package release. For example: In a word processing package the help file has a bug
and requires an update. Only the help file module is updated whilst the rest of the program
remains the same. The same analogy could be used with the word processing package as a part
of the whole office automation suite.

Full release

In a full release all components of the release are updated. For example: An update is made to
the whole office automation suite including the word processing package, spreadsheet database
etc.

Package release

The Package release includes all previous delta and full releases. These releases are generally
implemented less frequently and therefore allow for longer periods of stability for the live
environment. An example of a Package Release might be an SOE (Standard Operating
Environment) for a desktop PC that includes the hardware, office automation and business
applications.

Types of relevant environments

• Development. Only here can new software be developed. Newer versions will be based on a
copy of the software in the DSL. Each new version will cause an increased version number.

• Testing. Should be a replication of the live environment in order to reduce risks of the
implementation. Developers do not work in this area.

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• Production. Where the software/hardware is in production. Developers do not work in this


area.

• Archiving. Old release versions that are no longer in use

11.10.1 Interesting web sites

• http://www.itil-service-support-management.com/Pages/Service support/Release
management/Release_mgmt.htm

• http://www.itil.co.uk/online_ordering/serv_supp_graphs/release_mngt.htm

• http://www.microsoft.com/technet/treeview/default.asp?url=/technet/itsolutions/ecommerce/
maintain/operate/rmdotcom.asp

11.11 Essential Terms

Definitive Software Library:

A library, which stores in their definitive, accepted form, all the versions of software configuration
items that have been accepted from the developer or supplier. This logical library can be physically
present in several locations.

Definitive Hardware Store:

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A physical secure storage of definitive hardware spares. These are spare components and
assemblies that are maintained at the same level as the comparative systems within the live
environment.

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Release:

A software CI introduced into the test environment and subsequently into the production
environment. In most cases documentation and accompanying hardware also are part of the
release.

Release Unit:

A Release Unit includes the CI’s that can be released together.

Type of Releases:

Full Release: all components of a release unit are built, tested, distributed and implemented
together.

Delta Release: or partial release, only those CI's in the Release Unit that have actually changed
since the last delta or full release.

Package Release: combination of full releases and delta releases (helps to reduce the risk of
incompatible releases, by changing many systems concurrently).

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12.0 Service Level Management

12.1 Introduction

Imagine the following situation:

The Managing Director (MD) announces to the Chief Information Officer (CIO) that the
company is thinking about outsourcing the IT Organization. Over the last two years there
have been numerous and major complaints about the current IT services by the business.
The customers say it doesn’t do what it should, it is not working properly etc.

The CIO is puzzled to say the least. He had no idea that they were doing so badly. They actually
thought they were doing well. The services were up and running for most of the time. They resolve
incidents quickly and didn’t get many complaints from the users that they were aware of.

His staff have been putting in an enormous amount of effort to upgrade the server that the payroll
system has been running on.

How could we have done any better?

See the problem?

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1. The IT Organization thinks it is delivering services of a high standard but they have no
figures to back that up. The loosely defined "up and running most of the time" didn't take
into account the outages during critical times.

2. The effort on upgrading the server is commendable, but of no benefit as the business
recently decided to outsource the company payroll activities.

3. There probably is no official procedure in place to ask for the Customers opinion or a how
to make a complaint so how could they have know about the perception of the customer
regarding there services?
Implementing the Service Level Management process will solve the main problems in
this situation. The most widely known element of Service Level Management are Service
Level Agreements (SLA's). SLA's allow the IT organization and the customer to come to
agreement about which services are been provided, the availability required of them and
their costs. These levels would be measurable so both sides can verify if the levels are
being met.

Service Level Management is the process that forms the link between the IT organization and the
customers. Implementing Service Level Management can only be completely successful when the
other ITIL processes are implemented as well.

The main aim of SLM is to ensure the quality of the IT services provided, at a cost acceptable to
the business.

Note: There are some who feel that Service Level Management is the single most important
process within ITIL. This is a difficult argument to defend. By its very nature of processes within
ITIL are of equal standing. It is true that SLM has more of a 'customer focus' than most other
processes, but without those other processes, there is nothing to see the customer about!

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Objective

The Service Level Management process manages the quality of IT service delivery according to a
written agreement between the users and IT department called the Service Level Agreements
(SLAs).

The goal for SLM is to maintain and improve on service quality through a constant cycle of agreeing,
monitoring, reporting and improving the current levels of service. It is strategically focused on the
business and maintaining the alignment between the business and IT.

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Process Description

In order to understand the Service Level Management process it is necessary to understand some
basic concepts that are used, we will be explaining them here so the process is easier to
understand.

Service Level Requirements (SLR)

This is a document that contains customer requirements regarding which IT services they want
and the availability/performance they need for those services. This is the starting point of setting
up the Service Level Agreements.

Service Specifications

The IT organization draws up the Service Specifications based on the SLR. This is the translation
of the customer requirements into "how" the IT organization is going to provide these services.
What are the technical needs? It also will show relationships between the SLAs, the third parties
and IT the organization itself.

Service Level Agreement (SLA)

The SLA is a document that defines agreed service levels between the customer and provider, i.e.
between IT and the business. SLAs should be written in language that the business understands
(clear, concise and free of jargon). SLAs should not include detailed procedure diagrams for other
processes or content such as technical information that the business will not understand.

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Underpinning Contracts (UPCs or UCs)

With the an external supplier or third party is involved in the delivery of IT Services then a contract
has to be drawn up to ensure that they provide their service within a certain agreed time, cost,
level, etc. The IT organization passes through the business requirements to external suppliers.

This document will be reflective of the service levels defined in SLAs. For example, if the SLA
states a fix of a printer in 5 days then the UC with the third party should support this i.e. Fix printer
and return to organization in 3 days.

Operational Level Agreement (OLA) or Service Provisioning Agreement (SPA)

Some IT services depend on other service being provided from within the IT organization. For
example a service to provide a program that runs via the network depends on the availability of the
network. Agreements about the availability of the network will be drawn up in an Operational Level
Agreement or SPA. As with the UPC these internal "contracts" will support the SLAs in the same
manner except the focus is towards the internal IT organization.

Service Quality Plan (SQP)

This plan will contain information about performance indicators for the IT organization to measure
the Services. It will contain performance indicators for each of the processes that are implemented
in the organization. It is important to also include the performance indicators in the UCs and OLAs
as they contribute to the IT service as a whole.

Service Catalogue

This is a document that contains all the Services that are provided, a description of the service,
service levels, cost of the service, the customer and the person/department responsible for the
maintenance of the service. The content of a Service Catalogue will vary depending on the
requirements of the IT organization.

Service Specification sheets often form part of the Service Catalog.

Note: Be sure to understand the principal difference between an Underpinning Contract and an
Operational Level Agreement.

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Activities

The main activities of Service Level Management consist of:

• Composing a Service Catalogue

• Negotiating with clients over the possibilities and price of automation and drafting

• Securing and maintaining the Service Level Agreement (SLA).

This is done trough a continuous cycle of the following actions:

• Identifying

• Defining

• Negotiating

• Monitoring

• Reporting

• Reviewing

Identifying

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Within this activity the IT organization will need to define the services it provides within a Service
Catalogue. The Service Catalogue is like a menu of services that will clarify for IT what is on offer
and the components of these services.

In this stage the relationship between the IT organization and the customer is built or maintained.
The aim is to find out the customer requirements with regard to IT services. As part of this activity
the SLR document is written documenting the customer requirements. This document should be
signed off by both parties to ensure that a clear understanding is achieved by IT and the business
regarding requirements.

Defining

The results of this activity the first time around will be the delivering of the SLR, the service specs
and the SQP.

On an ongoing basis this activity will include taking the SLRs as well as the content of the Service
Catalogue and defining a draft SLA that aligns both into acceptable service levels. During the
creation of this document consideration of the UCs and OLAs is critical as these documents
support the SLA.

Later on the needs of the customer and the specs need to be verified on a regular basis as they
might change. The needs of the customer might change due to a change in the business
procedures and the specs made need changing as a result of the changed Requirements or the
introduction of advanced technology.

Negotiating

Once the draft SLA is formulated negotiation is carried out to gain agreement, acceptance and a
signature for the following documents.

• Service Level Agreement

• Underpinning Contracts

• Operational Level Agreements

It is critical that the above documents are negotiated and signed off.

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Monitoring

If service levels cannot be measured and monitored their value is substantially reduced. Why set
service levels if you do not know if they are being met?

In order to be able to measure the service levels they need to be clear and have to be objective.

It is not enough to define how much time a service can be unavailable, one also needs to define
when a service is said to be available again. Is it when the IT organization restored the service or
when the users are aware of it?

In order to monitor the performance, availability and support service levels other processes such as
Capacity, Availability and Incident Management should be in place. These processes will manage
and report on service levels reporting back to the Service Level Management process.

Reporting

The reports should show the figures about the service levels that are required and the actually
measured service levels.

Subjects that can be included are:

• Time needed to resolve Incidents

• Down time of the network and any other occasion where the service levels have not been
met.

• Time needed for a change.

• All major disruptions to the IT service in detail.

• Use of the capacity (minimum and maximum)

• Amount of interactions with various services

Reviewing

Reviewing the Service with the Customers on a regular basis will help discover opportunities to
improve the IT service that is provided. With the help of a Service Improvement Plan (SIP) this can
be achieved.

Once the Service Level Agreements are documented is it not end of the process it is the start!

It is also important to regularly review how the process itself operates and update where
necessary.

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Roles

Service Level Manager Role

The Service Level Manager is responsible for the implementing of the process and maintaining or
improving the Service Levels by initiating improvement actions. The role requires a position that
allows the person to negotiate the service levels with the customers on behalf of the IT
organization.

The Service Level Manger oversees the steps that result in the following official documents:

• Service Level Requirements

• Service Specs

• Service Level Agreement

• Underpinning contract

• Operational Level Agreements

• Service Quality plan

• Service Improvement plan

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Relationships

Service Level Management is at once the basis and, the result of, the implementation of Service
Management processes. Service Level Management is related to every other module within
Service Management.
You can’t implement Service Level Management to a full maturity without the other nine processes
and the Service Desk function, due to the holistic approach required for Service Management.

The Service Support processes - Incident and Problem and the Service Desk - aim to restore the
services as soon as possible when there is a breach within the Service Levels. They provide SLM
with valuable information as the customer’s perception of the Service Levels.

The Service Delivery processes are more focussed on keeping the services running within the
parameters defined in the SLAs. They get information from SLM about the required levels and give
information about the actual levels and advice about the impact of new or changed services.

Note: Remember the Service Support Processes are:

o Incident Management

o Problem Management

o Change Management

o Release Management

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o Configuration Management

Benefits

Introducing Service Level Management will have the following benefits for the Business and the IT
organization:

• The IT service will be of a higher quality and will cause less interruption. Hence the
productivity of the IT customers will improve as well.

• The resources of IT staff will be used more efficiently.

• The IT organization will provide services that meet the expectations of the customers.

• The service provided can be measured.

• The perception of the IT organization will improve.

• Cost reduction.

• The services provided by the third parties is more manageable with the underpinning
contracts in place and therefore any possibility of negative influence on the IT service
provided is reduced.

• Monitoring the service make it possible to identify week spots that can be improved.

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Common Problems

The following issues need to be addressed in order to ensure a successful Service Level
Management process:

• The service levels set out in the SLAs must be achievable for the IT Organization in the first
place.

• UCs and or OLAs much be set up properly otherwise external suppliers or internal parties
may inadvertently create a breach of the agreed Service Levels.

• The services need to be measurable and objective for IT Customers and the IT organization.

• There needs to be a commitment to negotiate the Service Levels required and in the
drawing up Service Level Agreements. This must be backed with a commitment to conduct
regular reviews and not simply let the agreements get outdated.

Note: A useful acronym when thinking about Service Level Agreements (or any contract) is
SMART

• Simple

• Measurable

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• Achievable

• Realistic

• Time driven

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Metrics

The following question will help determine if the Service Level Management process is effective and
efficient:

• Are all services covered by SLAs?

• Do the services within the SLAs have the necessary UCs and or OLAs?

• Is there an improvement in the Service Levels?

• Are the actual Service Levels measured?

• Is the perception of the IT organization improving?

Best practices

Interesting websites:

Assessment

http://www.itil.co.uk/online_ordering/serv_del_graphs/servlevel_mngt.htm

White papers

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http://www.interpromusa.com/SLA Challenges for ASPs.pdf

Books

http://www3.gartner.com/1_researchanalysis/focus/entmgmt013002.html

More theory

http://www.microsoft.com/technet/treeview/default.asp?url=/TechNet/prodtechnol/windo
ws2000serv/maintain/opsguide/cfgmgtog.asp

Essentials (terminology)

Service Level Management:

The process of negotiating, defining, drafting, securing and revising a demanded and cost justified
level of service delivery to the user.

Service Level Requirements

Business demands and requirements for service levels. Examples are: downtime, availability %
and opening hours of the helpdesk. Together with the service catalogue they can be input for the
SLA negotiations.

Service Catalogue

Overview of all current services as delivered by IT. May have a price list attached.
SIP = Service Improvement Program / Plan
Actions, phases and due dates for the improvement of the services
SQP = Service Quality Program / Plan
A document that contains all the information for the managers, including the Performance
Indicators for the other ITIL processes.

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13.0 Financial Management

Introduction

Over recent years modern businesses have become more and more dependent on IT to operate
their business processes efficiently. As a consequence the number of end users drastically
increased and so did the total amount of money spent on IT (the IT budgets).

All too often customers of IT organizations and senior managers often perceive that there is too
much money spent on IT. This has, therefore, led to a demand for increasingly higher quality and
cost-effectiveness of the provided services.

The IT organization on the other hand is often under the impression that they are doing ‘a good
job’, but find it very difficult to clearly explain in business language what the real costs and benefits
are of the provided IT Services.

Organizations (the Customers and senior managers) are reluctant to spend money on improving IT
services if they don’t have a clear picture of the costs involved and the benefits it has for the
business. Financial Management for IT Services can make the costs clear, set up a charging
method and give customers an idea about the quality / price relation. In other words, Financial
Management for IT Services promotes the running of IT Services as a business operation.

The slide below shows some common thoughts and remarks often heard in organizations through
out the world.

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Objective

The objective of the Financial Management for IT Services process for an in-house IT organization
should be:

• ‘to provide cost-effective stewardship of the IT assets and resources used in providing IT
Services.’

In a commercial environment, there may be additional statements that reflects the profit-making
and marketing aims of the organization, but for any IT Services organization the objectives should
include:

• ‘to be able to account fully for the spend on IT Services and to attribute these costs to the
services delivered to the organization’s Customers.’

• ‘to assist management decisions on IT investments by providing detailed business cases


for Changes to IT Services.’
The main focus of this process, therefore, is on understanding the costs involved in delivering IT
Services (by attributing the costs to each specific IT Service and Customer). This awareness of
costs improves the quality of all decisions made in regards to IT expenditure. Charging (notional or
by sending real bills) the costs to the Customers is optional.

Process Description

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Financial Management for IT Services consists of the following three sub-processes:

Budgeting (mandatory)

Budgeting is the process of predicting and controlling the spending of money within the
organization and consists of a periodic negotiation cycle to set budgets (usually annual) and the
day-to-day monitoring of current budgets.

Budgeting ensures that the correct finance is available for the provision of IT Services and that
during the budget period they are not over-spent. All organizations have a periodic (e.g. annual)
round of negotiations between the business departments and the IT organization covering
expenditure plans and agreed investment programs which ultimately sets the budgets for IT.

IT Accounting (mandatory)

IT Accounting is the set of processes that enable the IT organization to account fully for the way
its money is spent (particularly the ability to identify costs by Customer, by service and by
activity). It is in this regard more important to understand the costs than to know up to the dollar
cent how much something costs.

Charging (optional)
Charging is the set of processes required to bill Customers for the services supplied to
them. This requires sound IT Accounting and needs to be done in a simple, fair and
accurate way.

Within organizations there are two distinct cycles associated with Budgeting, IT
Accounting and Charging:

• A planning cycle (annual) where cost projections and workload forecasting form a basis for
cost calculations and price setting.

• An operational cycle (monthly or quarterly) where costs are monitored and checked against
budgets, bills are issued and revenue collected.

All these processes are discussed in more detail in the following chapter.

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Activities

Each of the three sub-processes of Financial Management for IT Services consist of a set of
activities, which will be discussed in this chapter.

Budgeting

• Determine the budget method:

o Incremental budgeting
Last year’s figures are used as the foundations for this year’s budget

o Zero-based budgeting
A fresh start: Called the Zero base. The purpose and need of every expense needs
to be determined, together with the actual amount.

• Determine the budget period

In most cases this will be the period of a financial (fiscal) year which can we subdivided in smaller
periods.

• Set up the budget

Determine all the categories available and estimate the costs for the next budget period. Take in
consideration that demand might increase over time. Some costs might need to be estimated.

IT Accounting

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IT Accounting aims to provide the information about what the money was spent on. All
Configuration Items necessary to deliver an IT Service to the Customer bear a certain cost. These
costs together add up to the total costs necessary for IT Service delivery. In order to understand
costs we need to discuss costs in a general way.

Direct or Indirect costs.

Direct costs are costs that can be assigned to specific services. For example the cost of a printer
that is used by one department only can be seen direct costs. Indirect costs are costs that can’t
be related to a certain service. For example the electricity of the IT department they are also called
shared costs.

Capital versus Operational costs

Capital costs are costs involved with the purchasing of items that will be used over a few years and
need to be depreciated. (The depreciation amount is part of the total costs). Operational costs are
those resulting from the day-to-day running of the IT Services organization (e.g. staff costs,
electricity, hardware maintenance) and relate to repeating payments whose effects can be
measured within a short timeframe (usually less than 12 months).

Fixed or variable costs

Fixed costs are costs that stay the same regardless. The rent of a building is an example of fixed
costs. Variable costs change with the use of the service. If you take a telephone service as an
example the line rental costs are fixed, as they will be the same each month regardless how many

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calls you make. The costs for the calls are variable costs as they depend on the amount of calls
are made.

Cost types

Cost types need to be determined (they are also used in the budgeting activity). The main cost
types are Hardware, Software, People, Accommodation, Transfer and External Service costs.

Depreciation methods

Capital costs are depreciated over the useful live of the fixed asset (e.g. desktops in three years,
the mainframe in ten years). There are three methods of depreciation:

• Straight-line method.
An equal amount is written off the value of the asset each year.

• Reducing balance method.


A percentage of the capital cost is written off the net book value each year.

• Depreciation by usage
The Depreciation is written-off to the extent of usage during a period.

In most cases there already will be an accounting model in place for the rest of the business. It is
important to define a Cost Model that complies with the overall business accounting model.

Charging

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In a Profit Centre the objective is to recover, through Charging, an amount greater than the costs
incurred. For an in-house IT organization the aim could be to recover the costs back in a fair and
simple way. But it could also be just to influence the behaviour of the Customers and end users.
That is, via Charging the IT organization can influence the demand and actual usage of IT Services,
and the way the service are provided.

Before Charging can take place a few decisions need to be made regarding the Charging policy,
Cost Units and Pricing.

A Charging policy needs to be chosen:

• Communication of information
Only the actual costs will be calculated, reported and charged to the customer (plus
specific amounts, if this is agreed with the customer).

• Pricing flexibility
Establish and charge the prices each year. This method gives the option to influence
excessive use.

• Notional charging
All costs are invoiced, but the customer doesn’t have to pay the physical dollars. This
method is used to gain experience and eliminate mistakes.

In order to be able to charge the costs to the IT customers Cost Units or chargeable items need to
be set up. These have to be clear, so they can be checked and are understood by the Customer.
Examples would the PC they use, the amount of print jobs they request.

Pricing moves the budget responsibility from the IT department to the user organization. A good
pricing system gives the client the sense that they get value for their money.

A pricing method (or a combination) need to be chosen:

• Cost price

• Cost price plus (to cover expenses made for R&D and overhead)

• Market prices, the price that is charged for the service on an outside market

• Going rate. Rate that is also used in similar organization or other departments within the
business.

• Fixed price. The price is negotiated with the customer beforehand

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Roles

The IT Finance Manager can be a person from the IT organization or the Finance department. An
alternative would be that the tasks, associated with this role, are shared between both. The main
responsibilities are:

• To oversee the implementation of the Financial Management for IT Services process and
their sub processes (Budgeting, IT Accounting and Charging).

• Assist in setting up the budgets and the accounting plans.

• To work, at an appropriate level, with representatives of the organization management and


the Finance Department, to develop the policies of Budgeting, IT Accounting and Charging.

If the IT Finance Manger is from the IT organization maintaining a close relationship with the
Finance Department becomes one of the responsibilities.

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Relationships

Financial Management for IT Services provides (depending on which pricing system has been
chosen within the organization), important information to Service Level Management about the
introduced costing, pricing and charging strategies.

As well as this the Financial Management process analyses which level of service delivery is
technically cost realistic for the business.

Financial Management for IT services can, together with Capacity Management and Availability
Management, develop pricing strategies. These strategies can realize an optimal spread of the
workload within an organization, which will result in optimal use of resources. It can also use asset
and cost information from Configuration Management to analyze different scenarios of equipment
(different costs for different configurations).

Benefits

The benefits of implementing the Financial Management for IT Services process include:

• Increased confidence in setting and managing budgets.

• A more efficient use of IT resources throughout the organization.

• Higher satisfaction of Customers as they know what they are paying for.

• Investment decisions can be made on accurate information.

• Increased professionalism of staff within the IT organization.

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Divided per sub process the benefits will be:


For budgeting:

• Ability to estimate the total costs needed to run the IT organization.

• Reducing the risk of spending more money then is available.

• The ability to verify if the actual costs compare to the estimate costs.

• The guarantee that the money resources are available to run the IT organization within the
agreed Service Levels.

For IT Accounting:

• Availability of management information on the costs of providing IT Services.

• IT and Business managers make better decisions, which ensures that the IT Services
organization runs in a cost-effective manner.

• Ability to accurately account for all the expenses made by the IT organization.

• Demonstrate under- or over-consumption of services in financial terms.

• Maximizing the value for money of the provided IT services.

• The possibility to determine the costs of NOT making a specific investment.

• Form the basis to implement Charging.

For Charging:

• Providing a sound business method of balancing the shape and quantity of IT Services with
the needs and resources of the Customer.

• The ability to recover IT costs in a fair manner.

• Influence the demand for the provided IT Services; hence influence the behaviour of the
Customer.

Common Problems

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In order for the process to work effective and efficiently the following issues should be addressed
as they are typical areas that can cause problems in this process area;

• Cost Models that are used for IT Accounting are too detailed, creating too much
administrative overhead.

• Not enough commitment from senior IT and Business management.

• Financial Management for IT Services is not in alignment with the way the overall
organization manages its finances.

• Charging policies are not well communicated to customers possibly causing unwanted
behaviour (eg. actions by users/customers to try to avoid incurring charges).

Note: The area of Financial Management for IT Services is often glossed over. Typically,
customers agree to charges at a point in time, but when the actual charges are levied the
challenges begin. To offset this, it is wise to quite often ensure that your customer has had their
expectations set, so that levied charges do not come as a shock.

Metrics

Key performance indicators to report on the process are:

• Accurate cost–benefit analysis of the services provided

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• Customers consider the charging methods reasonable

• The IT organization meets its financial targets

• The use of the services by the customer changes

• Timely reporting to Service Level Management

Other issues that can be reported on are:

• Creditor / Debtor management

• Other specialized accounting measurements (eg. liquidity of assets)

Note: Accountancy is a respected profession around the world. It is very unlikely that this process
can be properly implemented without some specific expertise in accounting.

Best practices

Interesting websites:

Assessment

http://www.itil.co.uk/online_ordering/serv_del_graphs/financial_mngt.htm

White paper

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http://www.interpromusa.com/IT Cost Charging Challenges. PDF

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More theory

http://www.microsoft.com/technet/treeview/default.asp?url=/TechNet/prodtechnol/windows2000serv
/maintain/opsguide/cfgmgtog.asp

Essentials (terminology)

Financial Management for IT services:


The implementation of Financial Management for IT services is the foundation for an independent IT
organization, which is not only aware of costs, but is also oriented on future investments.

Budgeting:
The process of predicting and controlling the spending of money within the organization and
consists of a periodic negotiation cycle to set budgets and the day-to-day monitoring of the current
budgets.

IT Accounting:
The set of processes that enables the IT organization to account fully for the way its money is
spent.

Cost Model:
A framework in which all known costs can be recorded and allocated to specific Customers,
activities, or other category. Most Cost Models are based on calculating the cost for each
Customer, but other models can be developed to show the cost for each service or the cost for
each location. The calculation of Costs-by-Customers is the usual start-point if a Charging system
is to be introduced.

Depreciation:
The measure of the wearing out, consumption or other reduction in the useful economic life of a
fixed asset, whether from use, passage of time, or obsolescence through technological or market
changes.

Charging:
The set of processes required to bill customers for the service supplied to them. This requires
sound IT accounting.

Pricing:
Pricing is just one element of the marketing quartet – ‘product, pricing, promotion, place’. Deciding
upon the appropriate charge/price is, therefore, not merely a question of cost recovery but also of
its impact upon the demand for the product.

Billing:
Passing on charging information to managers to make them aware of the cost of the resources
used by their business. This can be done with a real transfer of money (Full Charging) or without
(No Charging or Notional Charging).

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TCO
Total Cost of Ownership, a method of calculating the cost of a product or service as promoted by
Gartner.

ROI
Return on investment (= average increase in profit / investment)

ROCE
Return on capital employed (= net profit before tax and interest / total assets less current
liabilities)

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14.0 Availability Management

14.1 Introduction

Organizations are increasingly dependent on IT services, when they are unavailable, in most cases
the business stops as well. There is also an increasing demand for 7 days per week 24 hrs a day
availability of IT services.

It is therefore vital for the IT organization to manage and control the availability of the IT Services.
This is done by defining the requirements from the business regarding the availability of the IT
services and then matching them with the possibilities of the IT organization.

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14.2 Objective

The objective of Availability Management is to get a clear picture of business requirements


regarding IT Services availability and then optimize infrastructure capabilities to align with these
needs.

Or one can put it this way:

To ensure the highest availability possible of the IT services as required by the business to reach
its goals.

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14.3 Process Description

Availability Management depends on a lot of inputs to be able to function well.

Among the inputs are:

• The requirements regarding the availability of the business

• Information regarding reliability, maintainability, recoverability and serviceability of the CI’s

• Information from the other processes, Incidents, Problems, SLAs and achieved service
levels

The outputs of the process are:

• Recommendation regarding the IT infrastructure to ensure the resilience of the IT


infrastructure

• Reports about the availability of the services

• Procedures to ensure availability and recovery are dealt with for every new or improved IT
service.

• Plans to improve the Availability of the IT services

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Key terminology and actions that form the basis of this process are:

Availability:
The availability and flexibility of components of the infrastructure. This is expressed in the following
formula:

A = (ST - DT)/ST x 100, whereby A - Availability, ST = agreed Service Time and DT = Down Time.

Availability is defined as:

“Availability of a IT Service or component to perform its required function at a stated instant or


over a stated period’ (ITIL Service Delivery Book, OGC,2001)

Reliability:
The reliability of components of the infrastructure. In this case the Mean Time Between Failures
(MTBF) can be used as a measuring tool.

Reliability is defined as:

“…freedom from operational failure” (ITIL Service Delivery Book, OGC, 2001)

Resilience is a key aspect of reliability

Resilience is defined as:

“The ability of an IT component to continue to operate even though one or more of its sub
components has failed”

Maintainability:
The capability to maintain or restore a service or component of the infrastructure at a certain level,
so that the required functionality can be delivered. Some services or indeed components of the
infrastructure are easier to maintain and/or restore to service in the event of a failure. For example,
an application has been developed that requires daily housekeeping to ensure its operation and a
highly qualified Database Administrator can only do this. This application is not easy to maintain.
The maintainability of C.I.'s within the infrastructure is an important consideration as the speed of
recovery and the ease of maintenance will impact the uptime and hence availability of services.

Operational Level agreements (OLA's) within the Service Level Management process tie in here.

Note: Remember that C.I. = Configuration Item

Serviceability:
Serviceability refers to the agreements that are held with third parties providing services to the IT
organization. These contracts will define how these external parties will perform to ensure the
availability of the services they interface with. For example, how will they ensure resilience, how
will they maintain the infrastructure they are responsible for.

Underpinning Contracts within Service Level Management tie in here.

Security:
This is divided into confidentiality, integrity and availability (CIA). It can be desirable (for security
reasons, which might endanger the availability) not to make certain components of the infrastructure
available, logically or physically.

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Security is of great concern to most organizations these days and it is important to ensure that IT
services are made available to the organization in a secure way. That means that services and
information is available to the right people. It is also important to ensure that services are not so
secure that it impedes that ability of the organization to use these services.

14.4 Activities

The activities within the process can be divided in three main activities, which will be discussed in
detail in the remainder of this chapter:

• Planning

• Improving

• Measuring and reporting

Planning

Planning involves the following activities:

Determine the Availability Requirements

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It is important not only to find out the requirements but also to find out if and how the IT
organization can meet these requirements. The Service Level Management process maintains
contact with the business and will be able to provi de the availability expectations to the Availability
Management process. The business may have unrealistic expectations with respect to availability
without understanding what this means in real terms.

For example, they may want 99.9% availability yet not realize that this will cost five times more
than providing 98% availability, for their organizations infrastructure. It is the responsibility of
Service Level Management and the Availability Management process to manage expectations.

Design

When considering the design of the infrastructure the IT organization can either design for
“availability” or “recovery”.

Design for Availability

When the business cannot afford for particular service/s to have downtime for any length of time
designing the infrastructure for availability should be the approach. In this instance the IT
organization will need to build resilience into the infrastructure and ensure that preventative
maintenance can be performed to maintain services in operation. In many cases building “extra
availability” into the infrastructure is an expensive task that must be justified by business need.

Designing for Availability is considered a pro-active approach to avoiding downtime in IT services.

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Design for Recovery

When the business can tolerate some downtime of services or the cost justification cannot be
made for building in additional resilience into the infrastructure then designing for recovery is the
appropriate approach. In this approach the infrastructure will be designed such that in the event of
a service failure recovery will be as fast as possible. Spare part for example will assist in the
speedy of infrastructure components that fail.

Designing for recovery can be seen as more reactive management of availability.

The processes (like Incident Management) need to be in place to recover as soon as possible in
case of a service interruption.

Other Considerations

• Security issues

Define the security areas and the impact they might have on the availability of services. Make sure
it is clear who has access to what and where.

• Maintenance management

This is a maintenance window that is agreed upon and known to the customers in which the IT
organization can do the maintenance and repairs. This way the impact on the IT service of the
maintenance and repairs will be reduced.

Improving

Developing the Availability Plan

The Availability Plan will look into the future (for example 12 months) and document what
measures will be put in place to ensure that the infrastructure and IT services will be available to
meet business requirements.

Input from monitoring and other processes, such as Service Level Management, will provide the
basis for decisions on what “availability” measures will be put in place. All plans must be cost
justifiable and aligned with business needs.

Measuring and reporting

This involves reporting about the availability of each service, the down times and recovery times.
These reports will often go to the Service Level Management process to use in reporting
comparisons (planned versus actual) on service levels back to the customer.

It is also important to measure and report on the perception of the customers on the availability of
the IT service.

You can use many ways to identify (un-) availability and potential problems. The following are a
few mentioned by the OGC:
CFIA
Component Failure Impact Assessment can be used to predict and evaluate the impact
on IT Service arising from component failures within the IT infrastructure.

FTA

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Fault Tree Analysis is a technique that can be used to determine the chain of events that
causes a disruption to IT services.

CRAMM
CCTA Risk Analysis and Management Methodology can be used to identify new risks and provide
appropriate countermeasures associated with any change to the business availability requirements
and revised IT infrastructure design.

SOA
Systems Outage Analysis is a technique designed to provide a structured approach to identifying
the underlying causes of service interruption to the user.

14.5 Roles
The Availability Manager

The Availability Manager has a guiding role and has a general, yet sound knowledge of the IT
infrastructure. They will assemble and analyze data from processes like Problem Management,
Change Management, Service Desk and Capacity Management to assist in management and
planning with regard to availability.

Using the results of this data they steer other Service Management processes in order to
guarantee the agreed availability, thus helping to prevent problems. For example they may attend
Change Advisory Board meetings within Change Management.

The Availability Manager communicates their findings to the Service Level Manager and, through
that, makes an important contribution to the establishment of the SLAs. They implement the
policies of Security Management in relation to the security of data.

14.6 Relationships
The introduction of Availability Management without the other processes in place is likely to fail,
as without the support of the other processes it can’t deliver the agreed availability.

Incident Management and Problem Management provide a key input to ensure the appropriate
corrective actions are being progressed.
The measurements and reporting of IT availability ensures that the level of availability delivered,
meets the Service Level Agreement (SLA). Availability Management supports the Service Level
Management process in providing measurements and reporting to support service reviews.

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14.7 Benefits

The main benefit is:

Optimal use of the capability of the IT Infrastructure and delivering the availability of the IT services
that is according the agreed requirements of the customers.

Other benefits include:

• Constant striving to improve the availability

• Higher Customer Satisfaction

• In case of a disruption corrective action will be undertaken

• Higher availability of the IT service

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14.8 Common Problems

As with every process there are some issues that need to be addressed as they can make or
break the success of the process.

For Availability management they are:

• Unclear requirements from the business regarding the availability expected of the IT service

• No official contract is drawn up to specify the agreed availability of each service. (Risk of
conflict and arguments at a later stage)

• Commitment to the process

The business and the IT organization must share a common understanding on the definition of
availability and the definition of downtime.

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14.9 Metrics
By reporting on the following items the effectiveness and efficiency of the process can be
measured:

• The total downtime per service

• Time it takes to recover from an incident

• The availability of the services

• The improvement of the availability of the IT services

Note: Check the AV Essentials section for defined availability terms (eg. MTBF, MTTR, etc.)

14.10 Best practices


Interesting websites:

Assessment

http://www.itil.co.uk/online_ordering/serv_del_graphs/avail_mngt.htm

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14.11 Essentials (terminology)

Down time:
The total period during which an IT service is not operational within the agreed service times.

Mean Time Between Failures (MTBF):


The average period between the first moment the service is fully operational and the moment that
this service is no longer operational.

Mean Time To Repair (MTTR):


The average period between commencement of an incident and its solution.

Mean Time to Restore Services (MTRS):


The average period between the commencement of an incident and the restoration of the service
delivery.

Fault, Failure:
The moment at which a functional unit no longer provides the required function.

High Availability
A characteristic of the IT Service that masks the effects of IT component failure to the user.

Continuous Operation
A characteristic of the IT operation that masks the effects of planned downtime to the user.

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Continuous Availability
A characteristic of the IT Service that minimizes or masks the effects of all failures and planned
downtime to the user.

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15.0 Capacity Management

15.1 Introduction

The Capacity Management process is designed to ensure that the capacity of the IT infrastructure
is aligned to business needs.

The main purpose of Capacity Management is to understand and maintain the required level of
service delivery (via the appropriate capacity) - at an acceptable cost.

Through gathering business and technical capacity data this process plans for and delivers the,
cost justified, capacity requirements of the business. The Capacity plan is the core document that
describes how this will take place over the coming period.

15.2 Objective
The main objective of Capacity Management is to understand the business’s capacity requirements
and deliver against them both in the present and the future.

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Capacity Management is also responsible for understanding potential advantages new technology
could have and assessing its suitability for the organization.

15.3 Process Description


The Capacity Management process breaks down into three sub-processes listed below:

Business Capacity Management

This sub process has the focus on the long term. It is responsible for ensuring that the future
business requirements are taken into consideration then planned and implemented as necessary.

Service Capacity Management

Is responsible for ensuring that the performance of all current IT services falls within the
parameters detailed as targets within SLA’s.

Resource Capacity Management

Is responsible for the management of the individual components within the infrastructure. Resource
capacity management has more of a technical focus.

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15.4 Activities

Each of the sub process mentioned before involve, to a higher or lesser degree, the following
activities:

• Iterative Activities

• Storage of Capacity Management Data

• Demand management

• Application Sizing

• Modeling

• Capacity Plan

• Reporting

Iterative Activities

The following iterative activities take place within Capacity Management:

• Monitoring; checking if all the service levels are being met.

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• Analysis; the data collected by monitoring needs to be analysed and predictions been
made for the future

• Tuning; implement the outcomes and results of the 2 previous steps to ensure optimal use
of the infrastructure for now and in the future.

• Implementation; to actual implement new capacity or changed capacity with Change


Management.

Storage of Capacity Management Data


The Capacity Database (CDB) is the cornerstone of the process. It is used to form the basis of the
reports for this process and contains technical, business and relevant information for capacity
Management. As well, the information contained here provides the other processes with the data
necessary for their analysis.

Demand management:
Demand Management is responsible for the management or workload in the infrastructure to better
utilize the current capacity rather than increasing capacity. User behaviour is influenced to shift
workload, for example to another time of the day to relieve capacity shortages.

Application Sizing:
Application Sizing related to the assessment of the capacity requirements of applications during
their planning and development. The capacity requirements of a new application will be
understood and the infrastructure can be tuned as necessary to meet the new requirements.

Modeling:
By simulation or with assistance of mathematical models modeling allows for the prediction of
future capacity requirements. The results from this can be used as an input into the Capacity
Plan.
Capacity Plan

Capacity Plan, this plan is drafted on the basis of data from the CDB (Capacity Database),
financial data, business data, technical data, etc. The plan is future oriented and covers a period of
at least 12 months.

Reporting

Reporting entails the reporting of capacity performance over any given period. Reporting for
example could be (but not limited to) against the capacity metrics in SLAs.

15.5 Roles
The Capacity Manager

The main responsibilities of the capacity manager are:

• To develop and maintain the Capacity plan

• Manage the process

• Make sure the Capacity database is up to date.

To do this, the manager must be involved in evaluating all changes, to establish the effect on

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capacity and performance. This should happen both when changes are proposed and after they
are implemented. They pay particular attention to the cumulative effect of changes over a period of
time. The cumulative effects of single changes can often cause degraded response times, file
storage problems, and excess demand for processing capacity.

Other roles within Capacity Management are the roles of the network manager, application and
system manger. They are responsible for translating the business requirements in to required
capacity to be able to meet these requirements and to optimize the performance.

15.6 Relationships
Capacity Management is part of Service Delivery and is directly related to the business
requirements. It is not simply about the performance of the system’s components, individually or
collectively.

Service Desk, Incident Management and Problem Management.


These processes will provide Capacity Management with information about incidents and problems
related to Capacity. Capacity Management will support the processes with solving the incidents
and or problems and also provide them with information about the capacity performance.

Change Management and Release Management

Capacity Management activities will raise Request for Changes (RFC's) in order to ensure that the
appropriate capacity is available. These are subject to the Change Management process, and

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implementation may affect several Configuration Items (C.I.'s), including hardware, software and
documentation, and will require effective Release Management.

Availability Management

The link between Capacity Management and Availability Management is strong, as the availability
that is needed requires a certain amount of capacity within the configuration items. Without
enough capacity, you will never have enough availability. Furthermore, the values measured by
Capacity Management are of importance to Availability Management in relation to availability and
reliability.

Service Level Management

Both Capacity Management and Availability Management need to provide the service level manager
with input for effective SLA negotiations. Capacity Management informs Service Level Management
about the result levels that can be provided to the client.
Financial Management
The drafted capacity plan delivers important input for Financial Management, which on this basis
can draft a very accurate investment plan capacity Management gets information in return about the
available budget.
IT Service Continuity Management
Capacity Management provide ITSCM with the information about the minimum required Capacity
needed for recovery. It is important to consider the impact (for needed capacity) of changes to the
IT services on the ITSCM procedures.

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Benefits

Implementation of Capacity Management offers the following benefits:

• An actual overview of the current capacity in place

• The possibility to plan capacity in advance.

• Being able to estimate the impact of new applications or modifications

• Cost savings

• Better service that is in tune with the requirements of the Business.

15.7 Common Problems


Common problems that can be encountered while the process is already implemented include:

• Capacity information from suppliers is not available or is too general and can be misleading
for infrastructure components.

• The expectation to what Capacity Management can do is over estimated. If an application


is poorly designed, more capacity won’t fix the problem.

• The detail of monitoring can be to deep causing the process to be too expensive.

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• Information is difficult to obtain. It is not always easy to predict what future capacity is
required before you build an application.

Note: This final point is important. All too often end users and customers are interviewed at length
about their expected capacity requirements, only to demand more as soon as the new application
goes live. It is up to the IT professionals to have built in the ability for the application to scale to
match any new requirements.

Metrics

To verify if the process is operating within it goals one should check:

• If the forecast is in line with the actual demand at that time?

• If the Capacity plan is correct?

• Are the requirements being met?

• Is capacity not a cause for the breach of Service Levels, Incidents or Problems?

• Are ad hoc expenses being reduced because better planning is in place?

• Performance against SLAs

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Best practices

Why a Capacity Plan?

With cheap hardware prices, capacity planning may seem unimportant; you can always upgrade
later. A simple guess of the capacity requirements should be sufficient, right? Why give this
subject any more thought?

There are two main issues that make capacity planning critical.

The first is the rate of technical change. We now measure progress in "Internet years" -- equivalent
to about 90 days of a calendar year.

The second is with Internet/Intranet at the helm. Today’s systems are primarily being developed
within a 3-tier architecture. This rapid change, coupled with the increase in complexity of 3-tier
architecture, is causing system designers to pay closer attention to capacity. Five years ago, a
designer could roll out a new system with a rough estimate of capacity and performance. The
system could then be tuned or more capacity added before all of the users had been converted to
the new system. The process was reasonable because the systems were typically not mission-
critical.

Today, there’s no time for this approach. Once systems are in place they become an integral part
of the overall design. Downing the system for upgrades becomes increasingly expensive in both
time and resources. In addition, the added complexity of the environment typically requires more
care, due to the interdependency between various application components.

Capacity planning is driven purely by financial considerations. Proper capacity planning can
significantly reduce the overall cost of ownership of a system. Although formal capacity planning
takes time, internal and external staff resources, software and hardware tools, the potential losses
incurred without capacity planning are staggering. Lost productivity of end users in critical
business functions, overpaying for network equipment or services and the costs of upgrading
systems already in production more than justify the cost of capacity planning.

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Interesting websites:

http://www.capacityplanning.com/

Assessment

http://www.itil.co.uk/online_ordering/serv_del_graphs/capacity_mngt.htm
White Papers
http://www.interpromusa.com/ASPs and Application Performance Mgmt.pdf

http://www.iccmforum.com/iccm.asp?r=Capacity&s=CPUResource
Tools

http://regions.cmg.org/regions/cmgarmw/shortarm.html

http://www.iccmforum.com/iccm.asp?r=Tutorial&s=Benchmarks&t=Standard

http://www.iccmforum.com/iccm.asp?r=Tutorial&s=Benchmarks&t=ZiffDavis

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15.8 Essentials (terminology)


Capacity Plan,

A plan that is drafted on the basis of data from the CDB, financial data, business data, technical
data, etc. The plan is future oriented and looks forward for a period of at least two years.

Performance Management

This is the monitoring of results, signaling of trends, analysis of information and tuning (e.g. by
spread of workloads).

Workload Management

The identification and registration of use of resources of each workload and the detection of peaks
and patterns.

Resource Management

The optimization of the use of resources.

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16.0 IT Service Continuity Management

16.1 Introduction

There are still quite a few managers that see IT Servi ce Continuity Management (ITSCM) as a
luxury for which they do not have to allocate any resources. However, statistics show that
disasters regularly occur. Causes of such disasters are events like fire, lighting, flood, burglary,
vandalism, power failure or even terrorist attacks. Thinking about - and actually establishing - a
Business Continuity Plan could have saved affected companies a lot of troubles or even their
business itself.

As businesses are becoming increasingly dependent on IT, the impact of the unavailability of IT
Services has drastically increased. Every time the availability or performance of a service is
reduced, the users cannot continue with their normal work. This trend towards dependency on IT
will continue and will increasingly influence users, managers and decision-makers. That is why it
is important, that the impact of a total or partial loss of the IT Services is estimated and Continuity
Plans established to ensure that the business will always be able to continue.

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16.2 Objective

The objective of the ITSCM process is to support the overall Business Continuity Management
(BCM) process by ensuring that the required IT technical and services facilities can be recovered
within required and agreed business time-scales.

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16.3 Process Description


ITSCM is concerned with managing an organization’s ability to continue to provide a pre-determined
and agreed level of IT services to support the minimum business requirements, following an
interruption to the business. This includes:

• Ensuring business survival by reducing the impact of a disaster or major failure.

• Reducing the vulnerability and risk to the business by effective risk analysis and risk
management.

• Preventing the loss of Customer and User confidence.

• Producing IT recovery plans that are integrated with and fully support the organization’s
overall Business Continuity Management (BCM) Plan.

ITSCM should be closely aligned with and driven by the overall BCM process, as a sub-set of this
process. BCM manages risks to ensure that the organization can continue to operate at a specified
minimum level in case of a disaster. ITSCM is focused on the IT Services and ensures that the
minimum of IT Services can be provided in case of disaster. One won’t work with out the other.

If the BCM process has a solid plan to evacuate part of the business process and continue to work
in a separate building, but there is no IT infrastructure ready, the plan is of no use. The same apply

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if you do have plans which enable the IT organization to provided the IT Service elsewhere if the
business process can’t be continued because there’s is no contingency plan in place for that.

The process can be divided in 4 stages, which will be described in the next chapter in detail:

• Initiation

• Requirements and strategy

• Implementation

• Operational Management

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16.4 Activities

Each of the stages has its own activities, which will be described in more detail throughout this
chapter.

Initiation

• Initiate BCM

The initiation process covers the whole of the organization. The policies around BCM and ITSCM
are defined, the scope of the process and the terms of reference determined, resources allocated
and a project plan established.

Requirements and strategy

• Business Impact Analysis

The impact of a disaster on the business will be investigated. Questions that can be asked are:
Can the business still operate in case of a disaster? For how long can it survive? Does it rely on
the IT services to be able to operate?
How much the organization stands to lose as a result of a disaster or other service disruption and
the speed of escalation of these losses will be assess by:

o Identifying the critical business processes

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o Identifying the potential damage or loss that may be caused to the organization as
a result of a disruption to critical business processes.

• Risk Assessment
This activity analyses the likelihood that a disaster or other serious service disruption will actually
occur. This is an assessment of the level of threat and the extent to which an organization is
vulnerable to that threat. Risk Assessment consists of two parts:

o Risk Analysis is focused on identifying the risks by analyzing the vulnerabilities of


and the threats to all critical assets.

o Risk Management is about identifying countermeasures to keep those risks under


control. These can either be actions to reduce the impact or likelihood of the risk,
or the development of plans (Recovery Plans), which detail how to handle when the
risk eventuates.

• Business Continuity Strategy

An appropriate strategy needs to be developed with contains an optimal balance of risk reduction
and recovery options. The actual balance will very much depend on the nature of the business and
the dependency on IT Services (e.g. a stockbroker will focus on risk reduction, while the local
bakery can probably afford the time involved in recovering a failed system).

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In case of a Recovery Plan decisions have to made on how to recover. The options are:

o No contingency.
This choice can be made if a risk analysis suggests that the failure of (a part of)
the IT service delivery does not irretrievably affect business. It may be sensible
however, to confirm in writing, that in case of a calamity no concrete contingency
plan is available.

o Administrative procedures.
If the infrastructure is no longer available, a switch is made to administrative
procedures. Disadvantage is, that when the availability of the IT infrastructure is
restored a catch-up activity must be performed.

o Fortification strategy.
In this approach, one chooses a security method where, in fact, nothing can
happen. The costs of such are high and if, despite this, something does go wrong,
no alternatives are available.

o Reciprocal agreements.
In the case of a calamity, organizations make (parts of the) infrastructure available
to each other. Disadvantage is reciprocal dependency and confidentiality of data.

o Gradual Recovery (Cold stand-by) permanent or portable.


In this strategy the organization itself has a space available with infrastructure such
as electricity, telephone connections and air-conditioning, where appliances can be
"brought in", after which the service level can be restored. This space could also be
located or erected on site (Porto cabin).

o Intermediate Recovery (Warm stand-by) internal/external/mobile.


In this scenario a completely fitted evacuation facility is available, hired, or brought
in. Examples are the Computer Evacuation Centre or the IBM truck. The last option
is only feasible for mid range systems. The internal warm start means having an
evacuation facility available within the organization.

o Immediate Recovery (Hot stand-by).


This is normally an extension of the Intermediate Recovery options provided by
third party suppliers. This usually covers extremely critical services that can affect
the survivability of the organization or, at least such an impact that would stop the
organization from making money or other significant long-term effects.

Implementation

• Organization and implementation planning

Several plans need to be set up in order to be able to Implement the ITSCM process. These plans
address issues like, emergency procedures, damage assessment, what to do with data, recovery
plans etc.

• Implement stand-by arrangements and risk reduction measure

The risk reduction measures need be implemented. In most cases this will be done with help of

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the Availability process. Also stand-by procedures will have to be put in place. For example setting
up an agreement with a third party to supply goods in case of a disaster without having to go
through the proper channels.

• Develop ITSCM plans and procedures

The Recovery Plan (or Continuity plan) has to be set up. The plan should cover at least the
following subjects:

o How it is going to be updated

o Routing list to specify which section has to go to which group?

o Recovery initiation

o Specialist sections to cover the actions and responsibilities of these sections


individually. Sections are Administration, IT infrastructure, personnel, security,
recovery sites and restoration.

• Perform initial testing

Testing is a critical part of the overall ITSCM process and is the only way of ensuring that the
selected strategy, stand-by arrangements, logistics, business recovery plans and procedures will
work in practice.

Operational Management

• Education, training and awareness

These are essential issues that need to be taken care of in order for the ITSCM process to be
successful. This ensures that all staff are aware of the implications of Business Continuity and of
IT Service Continuity and consider these as part of their normal working routine and budget.

• Review and audit

It is necessary to review and audit the plans on a regular basis to make sure they are still up to
date.

• Testing

By testing on a regular basis not only can the effectiveness of the plan be tested but also people
will know what happens, where the plan is and what is in it.

• Change Management

Following tests and reviews and in response to day-to-day Changes, there is a need for the ITSCM
plans to be updated. ITSCM must be included as part of the Change Management process to
ensure that any Changes to the IT infrastructure are reflected in the contingency arrangements
provided by IT or third parties.

• Assurance

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The quality of the process is verified to assure that the business requirements can be met and that
the operational management processes are working satisfactorily.

16.5 Roles
A distinction can be made in roles and responsibilities in and outside crisis times. Different levels
within this process can be defined, starting with the board followed by senior management,
management, team leaders and their team members. It is vital to document the responsibilities of
each and every role.

The main responsibilities of the ITSCM manager include:

• Develop and manage the ITSCM Plan to ensure that, at all times, the recovery objectives of
the business can be achieved.

• Ensure that all IT Service areas are prepared and able to respond to an invocation of the
Continuity Plans.

• Maintain a comprehensive IT testing schedule.

• Communicate and maintain awareness of ITSCM objectives within the business areas
supported and the IT Service areas.

• Manage the IT Service delivery during times of crisis.

16.6 Relationships
ITSCM has a close relationship with all the other ITIL processes and the business in general. The
relationship with some of the processes is described in more detail.

Service Level Management

Service Level Management provides the ITSCM process with information about the required service
levels.
Availability Management Availability Management has more a supportive role and helps the
ITSCM process to prevent and reduce the risk of disasters by delivering / implementing risk
reduction measures.

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Configuration Management Configuration Management provides information about Configuration


Items that are needed in order to be able to restore the IT service
after a disaster.
Change Management Change Management needs to make sure that the ITSCM is aware of the
impact of the Changes on the Continuity and Recovery Plans, so the plans are updated if
necessary.

Capacity Management

Capacity Management makes sure the appropriate infrastructure can support the business
requirements.

Service Desk & Incident Management

Service Desk in combination with Incident Management provides the ITSCM process with historical
data (statistics).

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16.7 Benefits

ITSCM supports the BCM process and delivers the required IT Infrastructure and Services to
enable the business to continue to operate following a service disruption. The main benefits of
implementing the ITSCM process are:

• Management of risk and the consequent reduction of the impact of failure.

• Potentially lower insurance premiums

• Fulfillment of mandatory or regulatory requirements

• Improved relationships between the business and IT through IT becoming more business
focused, and more aware of business impacts and priorities.

• Increased Customer confidence, possible competitive advantage and increased


organizational credibility.

In case of an actual disaster the process has the following benefits:

• Reduced business disruption, with an ability to recover services efficiently in business


priority order.

• Recovery will take place in less time

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• More stable IT infrastructure and a higher availability of the IT Services

16.8 Common Problems

A few of the problems one can encounter while implementing the ITSCM process are:

• Not enough resources to set up and run the process properly.

• The ITSCM is not based on the BCM.

• No enough commitment from senior IT and business management.

• Overlooking critical components, applications, and dependencies, and misinterpreting


business impacts.

• Recovery isn’t working, due to lack of testing.

• Lack of awareness and support of the users and the IT personnel causing the process to
fail in case of a disaster.

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16.9 Metrics
During normal operation one can report on:

• The results of testing the plan

• Costs of the process

During/after a disaster one can report on:

• Weaknesses in the plan

• Time that it took to recover versus estimate time

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• Losses due to the disaster

16.10 Best practices


Interesting websites:

http://www.globalcontinuity.com/

http://www.microsoft.com/technet/itsolutions/idc/oag/oagc20.asp

http://www.iccmforum.com/iccm.asp?r=Tutorial&s=Benchmarks&t=ZiffDavishttp://www.disasterrec
overyworld.com/

Whitepages

http://www.interpromusa.com/IT Service Continuity Mgmt.pdf

Assessment

http://www.itil.co.uk/online_ordering/serv_del_graphs/itserv_cont.htm

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16.11 Essentials (terminology)


Business Continuity Management (BCM)
BCM is concerned with managing risks to ensure that at all times an organization can continue
operating to, at least, a pre-determined minimum level. The BCM process involves reducing the
risks to an acceptable level and planning for the recovery of business processes should a risk
materialize and a disruption to the business occur.

IT Disaster
The unavailability for a longer period of time of IT Service provision which makes in necessary to
switch to an alternative system and for which the actions to be taken are not part of a daily
routine.

Business Recovery Plans


Documents describing the roles, responsibilities and actions necessary to resume business
processes following a business disruption.

Disaster Recovery Planning


A series of processes that focus only upon the recovery process, principally in response to
physical disasters that are contained within BCM.

Gradual Recovery (Cold Stand-by)


This is applicable to organizations that do not need immediate restoration of business processes
an can function for a period of up to 72 hours, or longer, without a re-establishment of full IT
facilities.

Intermediate Recovery (Warm Stand-by)


Typically involves the re-establishment of the critical systems and services within a 24-72 hour
period, and is used by organizations that need to recover IT facilities within a predetermined time
to prevent impacts to the business process.

Immediate Recovery (Hot Stand-by)


Provides for the immediate restoration of services following any irrecoverable incident.

Stand-by arrangements
Arrangements to have available assets which have been identified, as replacements should
primary assets be unavailable following a business disruption. Typically, these include
accommodation, IT systems and networks, telecommunication and sometimes people.

Vulnerability
A weakness of the system and its assets, which could be exploited by threats.

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17.0 Security Management

17.1 Introduction

Everyone has heard about the impact a virus can have on a business.

Names as the Kournikova virus, Nimda and the Trojan Horse does ring bells about the vulnerability
of our Business and the reliability of the businesses on IT services,

The following example of a different nature occurred recently in The Netherlands.

A national event would take place, which would attract a lot of attention. The event was the life
chat session with Prince Willem Alexander and his fiancé Maxima on the Internet. The main
telecom provider in the Netherlands provided it and they bragged about how they could ensure the
availability and the high performance of the event.
A group of activists thought this was the time to show the country how vulnerable even the big
companies are by hacking in to the systems, causing the servers to go down and so interrupting
the life chat session for a period of time.

In this case no harm was done but if they had bad intentions they could have easily caused a lot
of damage

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In both cases there is a risk of information being damaged or misused due to a breach in security
or lack thereof.

The security of Information is a key management concern in the modern, electronic business
world. In order for companies to maintain their competitive edge, business decisions must be
based on accurate, complete and accessible information.

According to BS 7799, Security of information refers to the preservation of:

? Confidentiality - Ensuring that information is accessible only to those authorized to have


access.

? Integrity- Safeguarding the accuracy and completeness of information and processing


methods.

? Availability– Ensuring that authorized users have access to information and associated
assets when required.
The degree to which these aspects are preserved must be based on the business requirements for
security. This can be properly understood through accurate risk and impact analysis. Security
management is concerned with addressing activities that are required to maintain risks at a
manageable level.

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17.2 Objective

The objective of Security Management is twofold:

• To ensure that it complies with the external requirements of, legislation regarding privacy,
insurance policies, and the SLA’s.

• To create a secure environment regardless of the external requirements

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17.3 Process Description

The process of Security Management is a flexible one and needs to be reviewed continuously to
ensure that it is still up to date. It therefore should, plan, do, check and act in a continuous cycle.

The activities of Security Management are undertaken either by the process itself or by other
processes under the control of Security Management.

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17.4 Activities

The following activities are part of the security management process:

o Control

o Plan

o Implement

o Evaluate

o Maintenance

o Reporting

Control

In this process the basics for the Security Process are laid out. This includes among others;
describing the roles and responsibilities, description of the sub processes, the Security plan and
the implementation thereof and selecting the tools.

Plan

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This sub process will plan the security sections of the SLA’s with Servi ce Level Management. It
also includes addressing the Security sections in the Under Pinning Contracts (UPCs) and the
operational level agreements.

Implement

Implementation of all the security measures is the aim of this sub process.

Evaluate

It is necessary to evaluate the implementation of the security measures to see if they are effective.
Regular audits also need to be done to ensure that the process is working efficiently en effectively.

Maintenance

The maintenance of the security aspects of the SLA’s and the maintenance of the security plan
are the responsibilities of this sub process.

Reporting

Main things that will be reported are:

• Security incidents

• Results of audits

• Performance of security tests

• Identification of incident trends

17.5 Roles
In most cases there will be only the Security Manager however in very large organization there
may be more persons involved in the process.

The security manager is responsible for implementing and maintaining the process. The Security
Manager has close ties with the Business Information Security officer

17.6 Relationships
The Security Management process has links with all the ITIL processes. Each process carries out
one or more of the activities of Security Management. Although the responsibilities for these
actions are still within the separate processes Security management provides the input for the
activities.

Service Level Management provides information about the required service levels and receives
input about the achieved levels.

Configuration management: The CMDB contains the information about the C.I.’s. Every C.I.
should be classified indicating the required availability, integrity and confidentiality, which will
determine the level of security that is required.

Incident and Problem Management: Incident Management records incidents regarding a

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breach of security levels and the cause is investigated and resolved by Problem Management.

Change Management implements the changes, which ensure security or enhance it. On the
other hand they need to address the security issues for every change. In most cases the Security
Manager will be part of the CAB.
Availability Management is supported by Security Management in the way that the measures
to increase security result in a higher availability of the IT services.

17.7 Benefits

Benefits of implementing Security management are:

• Information that is vital to the business is kept secure

• Higher availability of the Information

• Quality of information that goes outside the business is increased.

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17.8 Common Problems

The following issues may cause problems:

• Commitment: extra rules and regulations are most likely to generate resistance rather than
appealing to end users.

• Attitude. Most security issues are caused by human errors. Quite often this is due to
complacency.

• Verification. It needs to be possible to check if the security measures are working if they
are there for the right reasons

• Changes. Over time the security aspect of changes might not get as much attention as is
needed.

• Awareness. As with every other process it is important to communicate with the


organization to gain the cooperation of the business.

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17.9 Metrics
The metrics of this process are similar to the ones of Service Level Management but focus on the
security aspect.

• Is the security aspect covered of the services in the SLA’s?

• Do the services within the SLA’s have the necessary security aspects covered in the UPC’s
and or OLA’s?

• Is there an improvement in the Security levels?

• Are the actual Security Levels measured?

• Is the perception of the IT organization improving?

17.10 Best practices

http://www.securitymanagement.com/

http://www.ismanet.com/

Also....To Outsource or not to outsource?

The challenge to meet security requirements, to prevent such disastrous impacts, is becoming
more overbearing to organizations. Outsourcing security management could offer the solutions.

The key questions faced by any organization are:

? Should they keep the responsibilities of information security in-house?

? Should they develop and train their own IT staff?

? Should they develop their own security policies?

Or

Should they contract such services to an outsourcing specialist who is using the latest available
technology, tools and expertise to offer the most efficient service?

The decision to outsource Security Management needs to be weighed carefully as this highly
debatable decision has both pros and cons.

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17.11 Essentials (terminology)

Confidentiality

Ensuring that information is accessible only to those authorized to have access.

Integrity

Safeguarding the accuracy and completeness of information and processing methods.

Availability

Ensuring that authorized users have access to information and associated assets when required

Privacy

Confidentiality and integrity of information relating to individuals

Verifiability

Being able to verify that the information is used correctly and that the security measures are
effective.

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