Service Design - YouTube

7067-TSO-OGC-Refresh 1-4x18/5/0721:33Page X Preface‘Quality in a product or service is not what the supplierputs in. It is what the customer gets out and is willingto pay for.’Peter Drucker, American management guru.The ITIL Service Management practices are based on thisidea. Services are assets from which the customer gainsvalue. How well services are designed with the customers’needs in mind will predict the value that can be derivedfrom them. In the absence of Service Design, service willevolve informally, often without taking advantage of thebroader perspective – the business view.The Service Design phase of the ITIL Service Lifecycle takesbusiness requirements and, using five aspects for ServiceDesign, creates services and their supporting practices thatmeet business demands for quality, reliability andflexibility. Service Design is iterative throughout theService Lifecycle, and begins with a solid blueprint thatenables the build, test and release stages of ServiceTransition through the Service Design Package.Readers will learn about design principles for application,infrastructure, processes and resources, as well as sourcingmodels. Service Managers will also find guidance on theengineering of sound requirements, Supplier Managementand key design considerations for service outsourcing.Whether you are an internal or external service provider,you are part of a value network and fill a critical role inthe Service Lifecycle, by integrating the best practices forService Design and the ITIL Service Lifecycle intoinnovative products for the business customer. The ServiceDesign publication provides the knowledge and skillsrequired to assemble the best combination of serviceassets to produce measurable, scalable and innovativeservices, along the path to service excellence.Any IT service provider who is expected to deliver qualityto the business customer must have the capability todesign services that meet expectations, then go on toexceed those expectations.The guidance in this publication will help achieve this.Contact informationFull details of the range of material published under theITIL banner can be found atwww.best-management-practice.com/itilFor further information on qualifications and trainingaccreditation, please visit www.itil-officialsite.com.Alternatively, please contact:APMG Service DeskSword HouseTotteridge RoadHigh WycombeBuckinghamshireHP13 6DGTel: 44 (0) 1494 452450E-mail: servicedesk@apmg.co.uk

7067-TSO-OGC-Refresh 1-418/5/0721:33Page XI AcknowledgementsChief Architect and authorsSharon Taylor (Aspect Group Inc)The ITIL Advisory GroupChief ArchitectVernon Lloyd (Fox IT)AuthorColin Rudd (IT EnterpriseManagement Services Ltd – ITEMS)AuthorITIL authoring teamThe ITIL authoring team contributed to this guide throughcommenting on content and alignment across the set. Sothanks are also due to the other ITIL authors, specificallyJeroen Bronkhorst (HP), David Cannon (HP), Gary Case(Pink Elephant), Ashley Hannah (HP), Majid Iqbal (CarnegieMellon University), Shirley Lacy (ConnectSphere), IvorMacfarlane (Guillemot Rock), Michael Nieves (Accenture),Stuart Rance (HP), George Spalding (Pink Elephant) andDavid Wheeldon (HP).MentorsTony JenkinsSergio Rubinato FilhoFurther contributionsA number of people generously contributed their timeand expertise to this Service Design publication. JimClinch, as OGC Project Manager, is grateful to the supportprovided by Jenny Dugmore, Convenor of Working GroupISO/IEC 20000, Janine Eves, Carol Hulm, Aidan Lawes andMichiel van der Voort.The authors would also like to thank Tony Jenkins,DOMAINetc and Steve Rudd IT Enterprise ManagementService Limited (ITEMS).In order to develop ITIL v3 to reflect current best practiceand produce publications of lasting value, OGC consultedwidely with different stakeholders throughout the world atevery stage in the process. OGC would also like to thankthe following individuals and their organisations for theircontributions to refreshing the ITIL guidance:Pippa Bass, OGC; Tony Betts, Independent; Megan Byrd,Bank of America; Alison Cartlidge, Xansa; Diane Colbeck,DIYmonde Solutions Inc; Ivor Evans, DIYmonde SolutionsInc; Karen Ferris, ProActive; Malcolm Fry, FRY-Consultants;John Gibert, Independent; Colin Hamilton, RENARDConsulting Ltd; Lex Hendriks, EXIN; Signe Marie Hernes,Det Norske Veritas; Carol Hulm, British Computer SocietyISEB; Tony Jenkins, DOMAINetc; Phil Montanaro, EDS; AlanNance, ITPreneurs; Christian Nissen, Itilligence; Don Page,Marval Group; Bill Powell, IBM; Sergio Rubinato Filho, CA;James Siminoski, SOScorp; Robert E. Stroud, CA; Jan vanBon, Inform-IT; Ken Wendle, HP; Paul Wilkinson, GetronicsPinkRoccade; Takashi Yagi, HitachiReviewersKamal Kishore Arora, Infosys Technologies; MartinAndenmatten, Independent; Pierre Bernard, Pink Elephant;Wills Damasio, Quint Wellington Redwood; Catalin Danila,GlaxoSmithKline, SRL Romania; Juergen Dierlamm,Rechtsanwaitkanzlei Dierlamm; Thomas Dressler, EDVBeratung; Fouad El Sioufy, TUV Rheinland Secure iT GmbH;Jaime Eduardo Facioli, Kalendae IT service Management;Juergen Feldges, DNV; Prasad Gadgil, Satyam ComputerServices Ltd; Kingshuk Ghosh, HP; Sandeep Gondhalekar,Quint Wellington Redwood; John Graham, Educad;Juergen Gross, Independent; Tsuyoshi Hamada, HP; ColinHamilton, RENARD Consulting Ltd; Christoph Herwig,Accenture; Thomas Hess, Pluralis AG; Chris Jones, AristonStrategic Consulting; Daniel Keller, Swiss SUIT; HendrikjeKuhne, Ktp-organisationsterberatung; Jane Link, AceritLimited; Paul Martini, HP; Raimund Martl, HP; Alan Nance,Itpreneurs; Christian Nissen, Itilligence; Glen Notman, PinkElephant; Tuomas Nurmela, TietoEnator Processing &Network Oy; Benjamin Orazem, SRC.SI; Gerard Persoon,E.Novation; Neil Pinkerton, Laughingtree; Christian Probst,Quint Wellington Redwood; Rajesh Radhakrishnan, IBM;Brian Rowlatt, LogicaCMG; Sutirtha Roy Chowdhury, SierraSystems; Alexander Sapronov, HP; Frances Scarff, OGC;Alan Shepherd, Deutsche Bank AG; Rob Stroud, CA;Michael Tomkinson, BT; Ken Turbitt, BMC Software; WileyVasquez, BMC Software; Ettiene Vermeulen, Datacentrix;Joachim von Caron, Lufthansa Systems; AndreasWeinberger, DekaBank; Sven Werner, Unilog Avinci GmbH;Theresa Wright, Computacenter Services; Geoffrey Wyeth,Independent; Rob Young, Fox ITxi

7067-TSO-OGC-Refresh 1-418/5/0721:33Page XII

7067-TSO-OGC-Refresh 1-418/5/0721:33Page 1Introduction1

7067-TSO-OGC-Refresh 1-418/5/0721:33Page 2

7067-TSO-OGC-Refresh 1-418/5/0721:33Page 3 1 IntroductionThe primary objective of Service Management is to ensurethat the IT services are aligned to the business needs andactively support them. It is imperative that the IT servicesunderpin the business processes, but it is also increasinglyimportant that IT acts as an agent for change to facilitatebusiness transformation.All organizations that use IT will depend on IT to besuccessful. If IT processes and IT services are implemented,managed and supported in the appropriate way, thebusiness will be more successful, suffer less disruption andloss of productive hours, reduce costs, increase revenue,improve public relations and achieve its businessobjectives.Most authorities now identify four types of IT assets thatneed to be acquired and managed in order to contributeto effective IT service provision. These are IT infrastructure,applications, information and people. Specifically there is astrong emphasis on the acquisition, management andintegration of these assets throughout their ‘birth toretirement’ lifecycle. The delivery of quality IT servicesdepends on the effective and efficient management ofthese assets.These assets on their own, however, are not enough tomeet the Service Management needs of the business. ITILService Management practices use these four asset typesas part of a set of capabilities and resources called ‘serviceassets’.An IT service, used in support of business processes, isconstructed from a combination of IT assets and externallyprovided ‘underpinning’ services. Once in place, an ITservice must be supported throughout its ‘life’, duringwhich time it may be modified many times, either throughtechnological innovation, changing business environment,changing usage of the service, changing its service qualityparameters, or changing its supporting IT assets orcapabilities (e.g. a change in an application softwarecomponent to provide additional functionality). Eventuallythe IT service is retired, when business processes no longerhave a use for it or it is no longer cost-effective to run.Service Transition is involved in the build and deploymentof the service and day-to-day support, and delivery of theservice is the role of Service Operation, while ContinualService Improvement implements best practice in theoptimize and retire stages.From this perspective, Service Design can be seen asgathering service needs and mapping them torequirements for integrated services, and creating thedesign specifications for the service assets needed toprovide services. A particular feature of this approach is astrong emphasis on re-use during design.The main aim of Service Design is to design IT services,together with the governing IT practices, processes andpolicies, to realize the strategy and to facilitate theintroduction of these services into the live environmentensuring quality service delivery, customer satisfaction andcost-effective service provision. Service Design should alsodesign the IT services effectively so that they don’t need agreat deal of improvement during their lifecycle. However,continual improvement should be embedded in all ServiceCapabilitiesResourcesA1ManagementFinancial re 1.1 Resources and capabilities are the basis for value creationPeople3

7067-TSO-OGC-Refresh 1-4418/5/0721:33Page 4 IntroductionDesign activities to ensure that the solutions and designsbecome even more effective over time and to identifychanging trends in the business that may offerimprovement opportunities. Service Design activities canbe periodic or exception-based when they may betriggered by a specific business need or event.If services or processes are not designed they will evolveorganically. If they evolve without proper controls, thetendency is simply to react to environmental conditionsthat have occurred rather than to understand clearly theoverall vision and overall needs of the business. Designingto match the anticipated environment is much moreeffective and efficient, but often impossible – hence theneed to consider iterative and incremental approaches toService Design. Iterative and incremental approaches areessential to ensure that services introduced to the liveenvironment adapt and continue to remain in line withevolving business needs. In the absence of formalizedService Design, services will often be unduly expensive torun, prone to failure, resources will be wasted and serviceswill not be fully aligned to business needs. It is unlikelythat any improvement programme will ever be able toachieve what proper design would achieve in the firstplace. Without Service Design, cost-effective service is notpossible. The human aspects of Service Design are also ofthe utmost importance, and these will be explored indetail later in this publication.1.1 OVERVIEWThis publication forms part of the overall ITIL ServiceManagement practices and covers the design ofappropriate and innovative IT services to meet current andfuture agreed business requirements. It describes theprinciples of Service Design and looks at identifying,defining and aligning the IT solution with the businessrequirements. It also introduces the concept of the ServiceDesign Package and looks at selecting the appropriateService Design model. The publication also discusses thefundamentals of the design processes and the five aspectsof the design: Servicesby a number of factors, including the functionalrequirements, the requirements within the Service LevelAgreements (SLAs), the business benefits and the overalldesign constraints.Chapter 4 explains the end-to-end process of the areas keyto successful Service Design. These processes are utilizedby all other stages of the Service Lifecycle, and otherprocesses are taken into account by Service Design.However, it is here that Service Catalogue Management,Service Level Management, Capacity Management,Availability Management, IT Service ContinuityManagement, Information Security Management andSupplier Management are covered in detail.The appendices to this publication give examples of theService Design Package, Service Acceptance Criteria,process documentation templates, design and planningdocuments, environmental architectures and standards,sample SLAs, OLAs and Service Catalogue and the ServiceManagement process maturity framework.1.2CONTEXT1.2.1 Service ManagementInformation technology (IT) is a commonly used term thatchanges meaning with context. From the first perspective,IT systems, applications, and infrastructure are componentsor sub-assemblies of a larger product. They enable or areembedded in processes and services. From the secondperspective, IT is an organization with its own set ofcapabilities and resources. IT organizations can be ofvarious types, such as business functions, shared servicesunits, and enterprise-level core units.From the third perspective, IT is a category of servicesutilized by business. They are typically IT applications andinfrastructure that are packaged and offered as services byinternal IT organizations or external service providers. ITcosts are treated as business expenses. From the fourthperspective, IT is a category of business assets that providea stream of benefits for their owners, including but notlimited to revenue, income and profit. IT costs are treatedas investments. Design of Service Management systems and tools,especially the Service Portfolio Technology architectures and management systems Processes Measurement methods and metrics.The publication covers the methods, practices and tools toachieve excellence in Service Design. It enforces theprinciple that the initial Service Design should be driven1.2.2 Good practice in the public domainOrganizations operate in dynamic environments with theneed to learn and adapt. There is a need to improveperformance while managing trade-offs. Under similarpressure, customers seek advantage from serviceproviders. They pursue sourcing strategies that best servetheir own business interests. In many countries,government agencies and non-profits have a similar

7067-TSO-OGC-Refresh 1-418/5/0721:33Page 5Introduction tendency to outsource for the sake of operationaleffectiveness. This puts additional pressure on serviceproviders to maintain a competitive advantage withrespect to the alternatives that customers may have. Theincrease in outsourcing has particularly exposed internalservice providers to unusual competition.To cope with the pressure, organizations benchmarkthemselves against peers and seek to close gaps incapabilities. One way to close such gaps is the adoptionof good practices in wide industry use. There are severalsources for good practices, including public frameworks,standards, and the proprietary knowledge of organizationsand individuals (Figure 1.2).Public frameworks and standards are attractive whencompared with proprietary knowledge: Proprietary knowledge is deeply embedded inorganizations and therefore difficult to adopt, replicateor transfer, even with the cooperation of the owners.Such knowledge is often in the form of tacitknowledge that is inextricable and poorlydocumented.Sources(Generate) Proprietary knowledge is customized for the localcontext and specific business needs to the point ofbeing idiosyncratic. Unless the recipients of suchknowledge have matching circumstances, theknowledge may not be as effective in use. Owners of proprietary knowledge expect to berewarded for their long-term investments. They maymake such knowledge available only undercommercial terms through purchases and licensingagreements. Publicly available frameworks and standards such asITIL, COBIT, CMMI, eSCM-SP, PRINCE2, ISO 9000,ISO/IEC 20000, and ISO/IEC 27001 are validated acrossa diverse set of environments and situations ratherthan the limited experience of a single organization.They are subject to broad review across multipleorganizations and disciplines. They are vetted bydiverse sets of partners, suppliers and competitors. The knowledge of public frameworks is more likely tobe widely distributed among a large community ofprofessionals through publicly available training andcertification. It is easier for organizations to acquiresuch knowledge through the labour market.StandardsEmployeesIndustry practicesCustomersAcademic researchSuppliersTraining & education(Aggregate)AdvisorsInternal ter)CommitmentsCustomersKnowledge fit for businessobjectives, context and purposeFigure 1.2 Sourcing of Service Management practice5

7067-TSO-OGC-Refresh 1-4618/5/0721:33Page 6 IntroductionIgnoring public frameworks and standards can needlesslyplace an organization at a disadvantage. Organizationsshould cultivate their own proprietary knowledge on topof a body of knowledge based on public frameworksand standards. Collaboration and coordination acrossorganizations are easier on the basis of shared practicesand standards.The ITIL Core consists of five publications (Figure 1.3). Eachprovides the guidance necessary for an integratedapproach, as required by the ISO/IEC 20000 standardspecification:1.2.3 ITIL and good practice in ServiceManagement Service OperationThe context of this publication is the ITIL Framework as asource of good practice in Service Management. ITIL isused by organizations worldwide to establish and improvecapabilities in Service Management. ISO/IEC 20000provides a formal and universal standard for organizationsseeking to have their Service Management capabilitiesaudited and certified. While ISO/IEC 20000 is a standard tobe achieved and maint

3.10 Business Service Management 49 3.11 Service Design models 50 4 Service Design processes 57 4.1 Service Catalogue Management 60 4.2 Service Level Management 65 4.3 Capacity Management 79 4.4 Availability Management 97 4.5 IT Service Continuity Management 125 4.6 Information Security Management 141 4.7 Supplier Management 149 5 Service .