Theory of ITSM CSIP

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Theory of ITSM CSIP
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Key concepts ITSM

• The directive for ensuring delivery IT Services
  is in-line with organizations mission
• Increase efficiency and effectiveness by 30
  (Gartner)
• Changing the behavior of IT resources activities
• Historical behaviors, Habits, etc
• Senior management must be part of improvements
• Middle management will be most affected
• Implementation done through quick wins (4 to 8
  weeks) and pragmatic projects (3 to 9 months)
• Full improvement program and continuous cycle
  implemented approx. 3 years

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Why invest in ITIL and ITSM?

• To answer the following questions (partial list,
  examples)
• How much money was spent on managing failures?
• What are all the components required to deliver a
  specific IT service?
• Do you an agreement for all IT services being
  delivered?
• Can you justify 100 of the IT expenditures?
• How many failures were caused because of changes?
• What is the projected service availability
  (availability requirements) of your top 3 IT
  Services?
• Have all the IT services been defined?

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Why would the military adopt a process approach?

• Good, robust and standardized processes across
  military services, combat commands, Defense
  Information Systems Agency and the intelligence
  community
• Can be audited and improved
• Impose organizational discipline
• Clarify organizational boundaries and roles
• No process stands alone
• Cut across silos promote communication and
  co-operation
• Capture organizational knowledge
• Link individuals with the work roles they fill
• Avoid duplication of effort
• Contribute to increased security
• Support continuous improvement

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ITIL contributes to the Global Information
Technology Model

• Integrated central processes
• Common processes
• Standard procedures
• Clear roles and responsibilities
• Improved IT availability, reliability and
  security of mission critical IT services
• Justify cost of service quality
• Provide services that meets business, customers
  and users demands
• Provide demonstrable performance indicators
• Policy-driven
• Incident handling
• Change handling
• Release handling

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ITSM through a scenario
The best way to show why to get involved in ITSM
and using ITIL is through an improvement example
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Q1. What is the vision ? (objectives)

• Reduce downtime of IT Services
• (for users)
• Increase efficiency in managing failures
• Increase service levels for clients

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Q2. Where are you now ? (Assessment)

• Organization with 500 incidents per day
• Average incident time (MTTR) 7mins 30secs
• Average time spent on detection and diagnosis is
  4mins
• 12 staff at the Service Desk, 7 involved in
  detection and diagnosis
• Salary of SD staff 75K/year
• Cost of unavailability 7.50/minute of down time
  for users (???)
• You also need to do an assessment of ITSM
  Processes maturity within the organization

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Q3. Where do you want to be (Targets)

• Reduce detection/diagnosis time by 1 minute
• Save 300,000/year
• Increase SLA Target
• Reduce SD Staff by 15
• Associated KPIs
• MTTR
• SLA Breached
• Failed RFC
• Etc

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Q4. Process Improvement

• Using ITIL Framework best practices and ITSM
  discipline
• Availability Management (AM) Process confirm Mean
  Time To Restore (MTTR) and detection/diagnosis
  time
• AM making recommendation on how to reduce failure
  time
• Change Management (ChgM) to manage Request For
  Change (RFC) to implement new improvements
• Configuration Management Database (CMDB) to
  record new Configuration Items (CIs) being
  implemented
• Service Level Management (SLM) to review Service
  Level Agreements (SLAs)
• Incident Mgmt process changes
• Other processes maybe involved

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Q4. Process Improvement

• AM Recommendations
• Training of SD staff (20K)
• Implement Knowledge DB (35K)
• Implement new module of Monitoring tool (40K)
• Change Incident Management process
• Incident changed process to use KDB and new
  monitoring tool
• Hire consultants to help change the processes
  and analysis of recommendation. Cost of 250K

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Q5. Measuring Success of Improvement

• Annual savings of 555,000 from recommendations
• Current situation (Calculations)
• 7 staff X 8 hours X 60 minutes X 70 on
  detection/diagnosis 2352 minutes of possible
  work
• 500 incidents/day X 4 minutes unavailability
  2000 minutes of unavailability time
• If detection/diagnosis is reduced from 4 mins to
  3 mins
• 500 incidents/day X 3 minutes unavailability
  1500 minutes of unavailability time
• Reduction of unavailable time of 500 minutes
  (From 2000 mins to 1500 mins)

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Q5. Measuring Success of Improvement

• Calculation Resource Savings
• 1500 minutes of unavailable time
• 5 staff X 8 hours X 60 minutes X 70 1680
  minutes of possible work
• Was 7 staff X 75K 525K
• Reduced to 5 staff X 75 375K
• SAVINGS OF 150K/year or 28.5
• Calculation Availability Savings
• Savings of 500 minutes of unavailability (was
  2000 reduced to 1500)
• 7.5/minutes X 500 minutes (saved) / day
  3,750/day
• 200 days of work X 3,750/day 750K
• SAVINGS OF 750K/year

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Q5. Measuring Success of Improvement

• 150K 750 900K / Year
• Cost of improving
• 95K (Availability recommendations) 250K
  (Consultant assistance in process changes)
  345K cost
• 900K - 345K Net Savings of 555,000

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The 5 main business objectives
all improvement projects should be linked to
business objectives ...

• Increase revenue of the organization
• Lower cost of operations
• Legal compliancy (Political)
• Better control/knowledge of Service Delivery
• Increase morale of the organization

ITSM Improvements
Business Objectives
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Creating a business vision

• At the end of the day it is not the process
  diagram that will make a difference, but the
  business results
• Take the time to define your KPIs and Business
  Objectives from the start
• You will be forced to look at the bottom line for
  your CSIP
• ITIL is about what ITSM processes and related
  roles that needs to be improved to meet business
  vision

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Conclusion

• This is just an example but the premise is sound
• ITIL and ITSM is about making real life changes
• It is proven that it works
• Make sure you set your objectives and set some
• KPIs to measure the success

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Questions
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Important KPIs Incident, Problem CM

• Number of Business impact 1 incidents
• Number of Business impact 1 solved within agreed
  service level times
• Service Desk user daily satisfaction survey
• Incidents vs KE ratio
• of KE solutions implemented last period
• of assets (CIs) in the CMDB (under change
  control)
• increase of CIs audited
• of CI under Control by Type

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Important KPIs Change Release

• of failed changes
• of failed changes (by service line)
• of emergency RFCs raised
• of rejected changes because of bad
  categorization
• of Emergency Releases
• of Releases with Approved RFCs

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Important KPIs Service Delivery

• of security incidents by Service Line
• Number of security incidents solved within
  agreed service level times
• of ICA updated in capacity plan
• of successful ITSCM plan invocation
• of clients with SLAs in place
• of SLAs breached
• of items sold that are in service catalogue
  (by value)
• Total Cost of operations
• Variance between budget and expenses
• Variance between budgeted and billed revenues
• Variance in planned and completed report dates
• Business Growth (Also by each Major Service
  Line)
• Average score in client survey