1. Embracing ITIL for Measurable Results
David Cannon, ITSM Practice Principal
George Sourvinos, Solutions Architect

2. Agenda What is ITIL? What difference does ITIL make?
Keys to ITIL success from v2 to v3

3. What is ITIL?

4. ITIL Beginnings UK Government - CCTA
Focused purely on Infrastructure Services
Primary focus = quality and efficiency
Basis for Compulsory Competitive Bidding
Government practice

5. ITIL Today International – over 40 countries Commercial and Government
Best practice – from over 300 organizations
Basis for standards – ISO 20000
Formal mapping (e.g. COBIT)

6. ITSM Implementation 95% of organizations have SLAs
And are expanding their use
Source: Oblicore

7. Formal Adoption of ITIL (2008)
Source: Oblicore

8. ITIL: Core of SIP

9. Aligning Business & IT Value

10. The Evolution of IT Service Management
ITIL v3
Focus: Business-IT Alignment
& Integration
Service Mgmt for Business & Technology
Automated and Integrated Operations
Strategy and Portfolio Governance
Continuous Improvement
Strategic
Partner
IT Service
Management
Focus: Quality and Efficiency of
IT Processes
IT is a service provider
IT is separable from business
IT budgets as expenses to control
ITIL v2
Service
Provider
Role of IT
IT Infrastructure
Management
ITIL v1
Technology
Provider
Focus: Stability and Control of the Infrastructure
IT are technical experts
IT concerned with minimizing business disruption
IT budgets are driven by external benchmarks
Time

11. What Difference does ITIL Make?

12. Benefits – Some hard Figures
Cost savings (up to 20% in year 1 and anywhere from 15% to 5% each year after that)
Eliminate duplication and loss
Optimize expenditure (i.e. spend money where it’s really needed, reduce where it’s not)
Licensing and maintenance reduction
Delay capital expenditure
Technical support costs (through more effective problem resolution)

13. Benefits – Some hard Figures
Incident Reduction (up to 25%)
Increase in successful releases (50% - 65% in year 1 measured by # incidents and roll-backs)
Faster, more effective build and test (reduction in time to users by 15% – 25%)
System Availability (increases by 0.5% to 5%)
Service Availability (increases by 5% to 15%)

14. Server Virtualization Storage Virtualization
The ITIL Advantage…
Source: Summit Strategies, Inc
Server Virtualization
ITSM Experienced
35%
34%
17%
10%
ITSM Inexperienced
15%
20%
27%
17%
12% 9%
Storage Virtualization
ITSM Experienced
39%
27%
21%
10%
ITSM Inexperienced
18%
17%
24%
17%
13%
10%
SOA
ITSM Experienced
25%
34%
20%
10% 6% 6%
ITSM Inexperienced
11%
22%
17%
23%
12%
15%
Currently in General Operational use for many major applications
Familiar with. Plans to evaluate in next 1-3 years
Currently in Pilot or Limited Operational Use
Rejected. Not planning to evaluate
Evaluating for use in next 12 Months
Not familiar

15. Keys to ITIL Success
From v2 to v3

16. From Process to Lifecycle
Key 1
From Process to Lifecycle

17. What is an IT Service (v2)?
A set of related functions
provided by IT systems
in support of one or more business areas
This service can be made up of hardware, software and communication facilities, but is perceived by the business customers as a self-contained, coherent entity

18. Service Components

19. As Seen by the Customer…

20. Process Orientated Working
Configuration Management
Change Management
Incident & Problem Management

21. The Problem with Processes
Processes help to organize work better
They are aligned to activity and output, not necessarily to value
You have to know what you want to achieve, or else assume that the customer does
Processes are not strategic
Bottom line: Managing IT needs more than just a set of processes, people and tools

22. ITIL v3
Creating a way to integrate IT Processes, People and Tools with the Business Strategy and Outcomes
Seeing IT as a Strategic Business Unit

23. Definition of a Service (v3)
A ‘service’ is a means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks

24. The ITSM Lifecycle

25. Key 2
From Output to Outcome

26. Using Services to Achieve Business Outcomes

27. Key 3
From Cost to Value

28. What is Value?
Benefit
Price
Value =
Quality Received
Expectations
Value =

29. What is Value? Value is in the eye of the customer Value is variable
Value has to be negotiated
Value changes over time and context
Value can be managed
Value is not always financial

30. Value in Supply Chains Value Realized Money Spent Value Added Procure
Develop
Operations
Market and
Sell
Value Added

31. Value in Supply Chains Lessons Learned
If value is not realised, ‘value added’ is equal to ‘money spent’
Value Realized must be greater than money spent
Value added internally is not value until it is realized

32. What does this mean for IT?
If IT wants to demonstrate value it has to link its services to where value is realized, not where value is added
If IT can not do this it will always be viewed as ‘money spent’ not ‘value added’

33. Supporting Business Outcomes
© Crown Copyright.

34. Manage Yourself and your Suppliers
Key 4
Manage Yourself and your Suppliers

35. IT Value – an Example Enterprise IT Outsourcer 1 Other Suppliers
Vendor A
Commodities
Enterprise IT
Dept A
Dept B
Dept C
Dept D
Money Spent
Value Added?
BU1 IT
BU2 IT
Money Spent
Value Added
Business Unit 1
Business Unit 2

36. Link Strategy and Operation
Key 5
Link Strategy and Operation

37. Context - Monitor Control Loop
Norm
Compare
Control
Monitor
Activity
Input
Output

38. Complex Monitor Control Loops
Norm
Control
Compare
Monitor
Norm
Norm
Norm
Control
Compare
Control
Compare
Control
Compare
Monitor
Monitor
Monitor
Input
Activity
Output
Input
Activity
Output
Input
Activity
Output

39. Context - The ITSM Lifecycle
Business Executives, Business Unit Managers, Customers
Service
Strategy
Service Transition
Continual
Service
Improve-
ment 1
Portfolio,
Standards,
Architectures
Service
Design 2
Users
Tech Architectures,
Performance Stds
IT Managers, Vendor Account Execs, IT Execs 3
Norm
Norm
Norm
Control
Compare
Control
Compare
Control
Compare
Output
Monitor
Monitor
Monitor
Input
Activity
Output
Input
Activity
Output
Input
Activity
Technical Experts, Vendor Support, IT Operational Staff

40. Keep Service, Infrastructure and Applications Together
Key 6
Keep Service, Infrastructure and Applications Together

41. Service Operation Functions
Service Desk
IT Operations
Management
Operations Control
Facilities Management
Technical
Management
Application
Management

42. Bring Functionality and Manageability Together
Key 7
Bring Functionality and Manageability Together

43. The V3 Value Proposition
Governance
(eg., CObIT)
Availability
Capacity
Continuity
Financial
Configuration
Change
Release
Request
Incident
Problem
Demand
Operations
SLM
Events
Assets
Business Needs
Portfolio
Service Strategy
Service
Design
Service Transition
Service
Operations
IT Services
Bus. Req.
Analysis
Design
Development
Test
Deploy
Release
Operate
Architecture
Continual Service Improvement (Six Sigma, TQM, etc.)
Keeper, tied into our recommendations.
Strategy
Project Management (PMBOK, PRINCE2, etc.)
TIME

44. Service Design Constraints
© 2007 Metaphor Systems. All rights reserved.

45. So, DO we Need ITIL? Not an alternative framework, but:
Builds on what we’ve already started and are doing well
Not an obscure theory, but guidelines based on what has been proven to work
At the core of what we do, not an add-on
Implementation can be incremental
Allows for determination of value, and management of multiple suppliers
Addresses both the supply of and demand for IT services
April 8, 2008

46. Secrets of Success Senior Management buy-in
Tools alone do not solve problems
If it isn’t broken, don’t fix it
Reorganization is the last thing on the agenda, not the first
Take one step at a time
Communicate and sell at all stages
Be prepared for Change
April 8, 2008

47. ITIL® Value Proposition
Improve the efficiency of the organization, IT staff and IT customers
Improve the effectiveness of the processes
Improve the ability of the technology to automate the processes
Enable better measurement and control of the IT environment - key to meeting contractual agreements
April 8, 2008

48. Some Examples

49. IT Delivery and Outsourcing Management Challenge
Approach
Results
Challenges in delivery of IT projects (poor quality, cost and schedule control), many red projects, global IT processes cumbersome and inconsistently adopted.
Looking to standardize and improve the way it outsourcers IT and manages the outsourcing
Re-engineered global IT processes to become lightweight, automated and tailorable
Integrated process silos across development, deployment and operations
Implemented metrics & measurements framework
Implement Quality Management functions in multiple divisions
Defined CMMI-ACQ model in partnership with SEI, with first implementation at L4
QA and Performance Test COE setup & operations
Schedule variance reduced from 45% to 20%
Cost variance reduced from 37% to 15%
Improved quality 200%
Savings in outsourcing management costs by more than 40%
All divisions certified CMMI L3
April 8, 2008

50. Service Levels Management and Integration Challenge
Approach
Results
Meeting the service level expectations of 170,000 employees
Replacing an array of disparate tools with a single, coherent ITSM solution
Migrating massive amounts of data without impairing business operations
Bringing together more than 4,000 IT professionals from a number of companies
Transform Core ITSM processes, combined with rapid implementation of redesigned processes
Training and Education
Software solution implementation, including consolidated configuration management database (CMDB)
High availability solution using multiple application servers, a clustered database configuration and a storage area network (SAN)
Best practices shared across organizational boundaries
Adaptability for growth and change in pace with business requirements
20% cost reduction
Enhanced call resolution efficiency and greater responsiveness
April 8, 2008

51. Improve Service and Business Performance Challenge
Approach
Results
Improve service and business performance by transforming enterprise-wide IT
Implement ITIL-aligned technology and create a scalable IT model and integrated, end-to-end management solution
Extend call-logging system capabilities
Define processes to better fix problems and track resolution
Improve network insight and integration
Design and implement an Information Technology Service Management (ITSM) solution:
ITSM processes based on ITIL:
Problem Management
Operations Management
Incident and Service Request Management
Implemented using transformation approach and supported by appropriate enterprise software solutions
A flexible solution with strong integration capabilities and room to support growth
An ITIL-aligned infrastructure and central contact for all issues
Reduced IT complexity by streamlining, consolidating and decommissioning legacy systems
ROI study demonstrates:
396% ROI in 5 years
36% IRR in 5 years
Payback within 19 months
April 8, 2008

52. Additional Success Stories
Accelerate business growth
Decrease costs
Mitigate risks
The Challenge
Enable seamless launch of new products
The Solution
Education, software, consulting, planning, design and implementation services
The Results
Higher revenues and increased online user experiences
70% reduction of Incident Mgmt resources
The Challenge
Consistent tools and processes
The Solution
Education, software, consulting and integration services, servers and storage
The Results
20% cost reduction
Best practices implemented across the organization
Increased agility
The Challenge
Sarbanes-Oxley 404 compliance
The Solution
Education, software, ITSM transformational and operational services
The Results
Passed SOX audit easily
Reduce Helpdesk costs 50%
Increased alignment between IT and business goals
Ensure regulatory compliance and improve operational controls
Improve security, infrastructure and network management
Reduce the business impact of downtime with quick problem resolution
Reduce the risk of implementing projects with standardization and best practices
Automate IT and business processes
Link IT with Key Business Performance Indicators (KPIs)
Transform IT to operate as a service provider
Shift IT spending from operations to innovation for competitive advantage
Reduce IT operations costs, improve processes and reduce labor requirement through automation
Improve ROI through asset and capacity management
Improve operational efficiency by reducing downtime and support
Make staff more effective and efficient with education and training
April 8, 2008

53. Questions?