1. Service Design – purpose and processes
Yavor Ganchev, Sofia 2016

2. Today’s Topics What is Service Design
Four main principles of Service Design
Major Aspects of Service Design

3. What is Service Design Obviously the second lifecycle stage
Involved in both planning new services and changing existing services 
This is where we plan how to build and operate the service and what we need for it.
The Service Design lifecycle stage is an important area as the design is often accountable for the success or failure of the services. The Service Design stage begins with customer requests and ends in service design ready for the transition phase. 
With the activities taking in this stage we make sure the service will run within budget and meet/exceed customer requirements.

4. Four Main Principles of Service Design
People
Processes
Products
Partners
People
the availability and capability (skills, experience, service culture) of the people using or supporting the service
training needs analysis and budgeting for training are to be considered
Processes
new service may require additional processes (e.g. authorization / procurement services)
all processes should be documented with the interfaces in between
identify changes required to existing services
Products
the service itself plus the technology (applications and infrastructure) and tools used in design or support (e.g. ticketing system)
Partners
specialist suppliers / vendors which are managed through supplier management process
All these design elements need to be documented and tracked to ensure that they are being created for each aspect of a new service of a changed service. This document is called the Service Design Package. The service transition stage will make use of this service design package to begin implementing the service.

5. Major Aspects of Service Design
Service solutions
Service Management Systems and Tools
Technology Architecture and Management Systems
Measurement systems
Processes
Service Solutions
the functionality offered by the service itself
deliver the solution within the technical and financial constraints, and corporate rules
the approach must be structured but flexible enough to accommodate future changes
Tools and Systems for Management Information
these are used to support and automate processes (e..g quality management system, information security system)
ensure the service will integrate with existing management tools and systems
Architectures
compatible with existing architectural platform and technical standards
[definition] Architecture is defined as the fundamental organization of a system, embodied in its components, their relationships to each other and to the environment, and the principles guiding its design and evolution.
Measurement Systems
collecting metrics to allow assessments for efficiency and effectiveness
Measurement
Design may measure a process service by:
Progress: milestones & deliverables.
Compliance: according to governance standards.
Effectiveness: accuracy & correctness.
Efficiency: optimized use of resources.
A service may be measured by three ways:
Prerequisite For Success (PFS): an activity that needs to be completed. Generally a PFS is an input for another process.
Critical Success Factor (CSF): what defines a service to achieve success[1].
Key Performance Indicator (KPI): indicators to define that a service has achieved success.
Processes
any services will require processes – existing or new
either change the processes to suit the service design or vice versa

6. Delivery model options
Insource: when service uses internal resources for all service phases.
Outsource: this model is set through a well defined portion of service- design. It may use the ASP model, defined below.
Co-source: it's a combination of insource and outsource.
Partnership or multi-source: agreement between two or more organizations to work together providing service.
Business Partner Outsourcing (BPO): relocates entire business function to an external organization that will provide and manage service. This model generally means a more operational partner, like accounting or call-center.
Application Service Provider (ASP): through a formal agreement an organization provides computer-based software through a network. It is also know as on-demand software/applications.

7. Service Design Processes
Service Catalogue Management
Service Level Management
Risk Management
Capacity Management
Availability Management
IT Service Continuity Management
IT Security Management
Supplier Management
Risk Management[edit]
This process is about identification, assessing and controling risks through analyzing asset`s value, threats and how vulnerable each asset is to those threats.
Risk Management is composed of Business Impact and Risk Analyzes, Assessment of Required Risk Mitigation and Risk Monitoring.
IT Service Continuity Management:
IT Service Continuity Management supports the overall business continuity by ensuring and managing the risks that could seriously affect IT services. The IT service provider can always provide minimum agreed business continuity related service levels.
Information Security Management:
Information security is one of the most important aspects regarding the warranty of a service. If the security of a service’s information and information processing cannot be maintained at the levels required by the business, then the business will not experience the value that has been promised. Without information security the utility of the service cannot be accessed.
Supplier Management
Third party suppliers play a key role in the successful delivery of an IT service when managed efficiently. The Supplier Management process obtains value for money from suppliers and provides seamless quality of IT service to the business by ensuring that all contracts and agreements with suppliers support the needs of the business, and that all suppliers meet their contractual commitments.

8. Service Catalogue Management
Ensures production and maintain of Service Catalogue with accurate information on all operational services and those being prepared to be run operationally. It contains information on all service Service Management processes: service details, current status and service's interdependencies.
There is a clear difference between Service Catalogue and Business Services (services visible to the customer, defined by SLAs) and Supporting Services (services visible only inside the IT organization, defined by OLAs and UCs).
No sub-processes are specified for Service Catalogue Management according to ITIL V3.

9. Service Level Management
Service Level Agreement (SLA)
Operation Level Agreement (OLA)
Underpinning Contract (UC)
Objective of SL management is to negotiate Service Level Agreements with the customers and to design services in accordance with the agreed service level targets. Service Level Management is also responsible for ensuring that all Operational Level Agreements (OLA) and Underpinning Contracts (UC) are appropriate, and to monitor and report on service levels.
SLA – A written agreement between an IT Service Provider and customer defining key service targets and responsibilities of both parties. EXAMPLE of an SLA: The service mobile data is not working, the user reports the incident to the providers call desk and according to the SLA the functionality should be restored within 24 working hours.
OLA – An agreement between IT service provider and an internal support group (in the same organization) that assists with provision of services. EXAMLPE: The mobile provider call desk escalates an incident to the network team, according to the OLA the network team needs to come up with solution within 12 working hours.
UC – A contract between an IT service provider and an external supplier that defines targets and responsibilities that are required to meet targets in SLA
Creating the SLAs is mostly based on service availability and service capacity.
SLM is defined through following stages:
Negotiation: where is defined SLR for service .
Finalization: where is defined SLA, after definition of OLA/UC.
Monitoring: service monitoring.
Report: service report, showing if service complies with SLA.
Revision: used as basis for SIP.

10. Service Availability
Mean-Time-Between-Failure (MTBF): elapsed time between a service gets up and down.
Mean-Time-To-Repair (MTTR): elapsed time to repair a configuration item or IT service.
Mean-Time-Between-System-Incidents (MTBSI): elapsed time between detection of two consecutive incidents.
Mean-Time-To-Restore-Service (MTRS): elapsed time from the detection of an incident until it gets up.
To define, analyze, plan, measure and improve all aspects of the availability of IT services. Availability Management is responsible for ensuring that all IT infrastructure, processes, tools, roles, etc., meet the agreed availability targets.
Based on terminology above, MTBSI = MTBF + MTRS , and availability can be calculated by A = MTBF / (MTBF + MTTR)

11. Service Capacity
Service-level agreements can contain numerous service performance metrics with corresponding service level objectives.
A common case in IT Service Management is a call center or service desk. Metrics commonly agreed to in these cases include:
ABA (Abandonment Rate): Percentage of calls abandoned while waiting to be answered.
ASA (Average Speed to Answer): Average time (usually in seconds) it takes for a call to be answered by the service desk.
TSF (Time Service Factor): Percentage of calls answered within a definite timeframe, e.g., 80% in 20 seconds.
FCR (First Call Resolution): Percentage of incoming calls that can be resolved without the use of a callback or without having the caller call back the helpdesk to finish resolving the case.
T AT (Turn Around Time): Time taken to complete a certain task.
Uptime Agreements are another very common metric, often used for data services such as shared hosting, virtual private servers and dedicated servers. Common agreements include percentage of network uptime, power uptime, amount of scheduled maintenance windows, etc.
To ensure that the capacity of IT services and the IT infrastructure is able to deliver the agreed service level targets in a cost effective and timely manner. Capacity Management considers all resources required to deliver the IT service, and plans for short, medium and long term business requirements.