2. 1 The IT Service Management Performance Challenge IT Service Management in the Federal Sector – A Case Study

3. 2 Driver of Change: Laws, Policies & Directives Clinger-Cohen Act Requirements: –Plan and Manage IT operations strategically –Improve service to customers –Manage with greater accountability for results –Reduce costs and gain a higher return on IT investment –Competitive Sourcing PMA –Strategic Management of Human Capital –Competitive Sourcing –Improved Financial Performance –Expanded Electronic Government –Budget and Performance Integration Rules have changed

4. 3 OMB Circular A-11 Focus - Capital planning & Performance-based Measurement Mandates Federal agencies: Plan and Manage IT operations strategically Improve service to customers Manage with greater accountability for results Reduce costs and gain a higher return on IT investment Increasingly emphasize the use of outsourcing

5. 4 Federal IT Service Challenge New Technology & Growth GPRA CCA Competitive Sourcing Budget Cuts Workforce Attrition IT Consolidation OMB Circular A-11 PMA The rules have changed Demands for IT Service

6. 5 Service Management: Current State Missing information - Who is the Customer? Lacked clarity - Services reflect Customer or IT viewpoint? Unclear - IT the service provider? Unclear, Inconsistent & Missing Service definitions Varying levels of detail describing Services - Multiple Documents Duplication of services across different service areas. Searching for Service Management Solution

7. 6 The ITIL Framework: Customer Focused IT Service Delivery Service Development & Deployment Business - IT Alignment IT Strategy Development Customer Management Service Planning Service Level Management Availability & Continuity Management Capacity Management Cost Management Build & Test Release to Production Problem Management Incident Management/ Service Desk Operations Management Service Design & Management Operations Bridge Business Alignment Configuration Management Change Management

8. 7 ITIL Framework: Problems Addressed Users Inward Looking Technology Focus Ad Hoc Processes Best Efforts Entirely In-House Reactive Customers Outward Looking Process Focus Streamlined Processes Measured-Accountable Balance In/Outsourced Proactive Goals Going Forward Putting the Pieces Together - Best Practices of leading Organizations

9. 8 Applying the ITIL IT Service Management Framework Case Study: Business/IT Alignment at the IRS-Detroit Computing Center

10. 9 Enterprise Operations Services: Responsible for IRS Tax and Administrative Computing Operations including: –Atlanta Contact Center Support –Martinsburg Computing Center –Tennessee Computing Center –Detroit Computing Center Detroit Computing Center: Mainframe & Mid-Range Server Operations supporting mission critical applications to 100,000+ IRS & Treasury Customers: –CFO - Automated Financial & Revenue Accounting –Compliance Research - Enforcement Revenue Information Statistics of Income, Compliance Research Information –Multi-Media and Publishing Services - Centralized Inventory Distribution –Chief Counsel - Counsel Automated Tracking System –Office of the Commissioner - Executive Management Support System. 2001 SM Prototype Participants: IRS-EOS & DCC

11. 10 Service Catalog SM Prototype Scope: Service Catalog Development Strengthen Customer Relationships Service Providers Understand Business Requirements Customer Understand Service Level Resource Requirements Prototype Goals Business - IT Alignment Business Alignment Business Alignment IT Strategy Development IT Strategy Development Customer Management Service Planning Define Service Requirements Define IT capabilities Service Planning Define Service Requirements Define IT capabilities Service Level Management Maintain Service Catalog Negotiate & document Service Level Management Maintain Service Catalog Negotiate & document Availability & Continuity Management Key Process Availability & Continuity Management Key Process Capacity Management Key Process Capacity Management Key Process Cost Management Key Process Cost Management Key Process Change Management Request for Change (RFC) processing Change coordination Change Management Request for Change (RFC) processing Change coordination Service Design & Management Focusing on the Pain

12. 11 Service Catalog Process: Approach Defining the Process Executing the Process Controlling the Process Customer Demands knowing your customer Specify external standards defining service requirements Translate to internal standards defining service requirements Produce contracts and agreements production of documents The Service Design Process

13. 12 Lessons Learned: Clear Service Strategy - Know where you are headed! Executive & Senior Management support is essential Line Management and Technician Buy-in Knowing What you Want in Choosing Vendor Support Focus on Process and Tools Service Management Challenge calls for action; business as usual not enough. Create Economies through improved Efficiencies and Resource Utilization ITIL Framework and the right tools can help you address the challenges and seize the Service Management opportunities Successful SM Can be Achieved!