ITIL Service Management Foundation

Course Objectives
To introduce ITIL -- Terms, Definitions, Phrases -- As Best Practice Gain an understanding of the essential ITIL processes and how they relate to each other, in order to support and deliver a quality IT service An overview of ITIL processes and how they relate to each other in order to support and deliver a quality IT service.

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Course Content - Morning

Implementation

Configuration Management
Service Desk

Incident Management
Problem Management Change Management Release Management

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Course Content - Afternoon

Service Level Management

Financial Management for IT Services

Capacity Management IT Service Continuity Management Availability Management

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ITIL Overview
ITIL is a Best Practice Framework Integrated into OGC and BSI guidance Key Objective 1 Align IT services with the Current and Future needs of the business and its Customers Key Objective 2 To improve Quality of the services delivered Key Objective 3 Reduce long term Cost of service provision ITIL Philosophy Scaleable Process driven approach

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ITIL - IT Infrastructure Library

Mission Statement

Business IT Alignment

Strategy

Tactics Planning

Service Delivery

Service Support

Operations day-to-day

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Introduction to Service Management The Service Desk Configuration Management Incident Management Problem Management Change Management Release Management

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INTRODUCTION TO IT SERVICE MANAGEMENT

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IT Service Management Objectives

ITIL is a Best Practice Framework used

..
To align IT services with the current and future needs of the business and its Customers To develop the quality of the IT services delivered To reduce the long term cost of service provision

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Why Service Management

Increasing IT visibility and Reliance Increasing demand from Business to deliver effective IT solutions/services (Cost Effective) Increasing complexity of IT infrastructure and processes

Increasing competition
Increasing pressure to realise return on investment

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Considerations
Do not be over ambitious Consider what elements already exist, are in use and effective Identify what can be re-used or needs to be developed Adapt the guidelines to meet your requirements

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Process Improvement Model

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Process Improvement Stages

Process improvement definition Communication Planning Implementation Review and Audit

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ITIL Service Management

Service Support

Day to day operational support of IT services Long term planning and improvement of IT service provision

Service Delivery

Key Definitions Customer: recipient of a service: usually the Customer management has responsibility for the funding of the service. Provider: the unit responsible for the provision of IT service. Supplier: a third party responsible for supplying or supporting underpinning elements of the IT service. User: the person using the service on a daily basis.

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IT Service Management Overview

SPOC Single Point of Contact SD Service Desk IM Incident Mngt CH Change Mngt REL Release Mngt

BUSINESS (Customer)

SLA Service Level Agreement SLM Service Level Mngt AM Availability Mngt CM Capacity Mngt IT SCM IT Service Continuity Mngt

User

User

User SLA

SPOC SLM

SD
SERVICE SUPPORT

AM

CM

IM

SERVICE DELIVERY
IT SCM

PROBLEM FINANCE CH REL

CONFIGURATION

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Service Support Process Model

Business, Customers or Users
Difficulties Queries Enquiries
Incidents Service Desk Management Tools

Communications Updates Workarounds

Incidents

Changes
Releases

Incident Management

Problem Management

Change Management

Release Management

Configuration Management

CMDB
Incidents
Problems Known Errors

Changes

Releases

CIs Relationships

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Service Delivery Process Model

Availability Management
Availability Plan Design Criteria Targets/Thresholds Reports Audit Reports

Business, Customers and Users

Queries Enquiries Service Level Management Capacity Management
Capacity Plan CDB Targets/Thresholds Capacity Reports Schedules Audit Reports

Communications Updates Reports

SLAs, SLRs, OLAs Service Reports Service Catalogue SIP Exception Reports Audit Reports

Requirements Targets Achievements Financial Management for IT Services

Financial Plan Types & Models Costs & Charges Reports Budgets & Forecasts Audit Report

IT Service Continuity Management

IT Continuity Plans BIA & Risk Analysis Control Centres DR Contacts Reports Audit Reports

Alerts & Exceptions Changes Management Tools

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The Service Desk

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Goal Primary Objective

To act as the central point of contact between the User and IT Service Management To handle Incidents and request and provide an interface for other activities such as Change Management Problem Management Configuration Management Release Management Service Level Management IT Service Continuity Management

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Why a Service Desk?

Provide a single point of contact for Users Deliver high quality support to meet business goals Help identify costs of IT services Support and communication for changes Increase user perception and satisfaction Assist identification of business opportunities

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Responsibilities
Receive and record ALL calls from users Provide first line support Refer to second line (Generalists) support where necessary Monitoring and escalation of incidents Keep users informed on status and progress Provide interface between ITSM disciplines Produce measurements and metrics

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Setting up a Service Desk

Understand the business needs and requirements Define clear objectives Obtain support, budget and resources Advertise and sell benefits / communicate quick wins Involve and educate users / train support staff

Types of Service Desk Local Service Desk Central Service Desk Virtual Service Desk

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Considerations of a Service Desk

Metrics and management reporting - Daily, weekly, monthly - Incident / problem status against service levels - Service availability / breaches - Overall performance, achievements and trend analysis Service Desk Technologies - Integrated tool sets / Knowledge base / Diagnostic tools - ACD / IVR systems - Internet / Intranet capability - Pager systems / text messaging

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Local Service Desk

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Centralised Service Desk

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Virtual Service Desk

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Benefits of the Service Desk

Improved User service, perception and satisfaction Increased User accessibility via the single point of contact Improved quality and faster response to User requests More effective and efficient use of support resources Better management information to make decision on support

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Exam Tips
A Service Desk staff should NOT be Forthright

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Exam Questions
Which of the following lists best describes the key attributes needed by the Service Desk Staff? A Good interpersonal skills; tenacious; technically astute; firm B Business aware; articulate; methodical; tolerant; good interpersonal skills C Logical; methodical; tenacious; forthright; analytical D Well presented; technical specialists; numerate; good interpersonal skills

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Exam Questions
Which incidents should be logged by the Service Desk? A B C D Only incidents not resolved at logging Only incidents from bona fide customers All incidents except simple enquiries All incidents

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Exam Questions
1 2 3 Consider the following metrics: Number of incidents closed on without onward referral Number of incidents correctly categorised at logging Number of hardware faults reported

Which of the above are valid performance indicators for the Service Desk? A B C D All three 1&2 1&3 2&3

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Configuration Management

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Goal Primary Objective

To provide a logical model of the IT infrastructure by identifying,controlling, maintaining and verifying the versions of ALL Configuration Items in existence.

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Types of CIs

4 CI Types
1. Hardware 2. Software 3. Documentation Processes and Procedures Technical documentation Diagrams/Charts 4. IT Staff NOT USERS

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Why Configuration Management?

Account for ALL IT assets Provide accurate information to support other Service Management processes Provide a sound basis for all other Service Management disciplines Verify records against the infrastructure and to correct exceptions

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5 Activities of Configuration Management

Planning
- Strategy, policy, scope, objective, roles & responsibilities - Config Mgt processes, activities and procedures - CMDB, Relationships with other processes and 3rd parties - Tools and resource requirements

Identification
- Selection, identification and labelling of all CIs - Relationships

Control
- Authorised additions, modifications and removal of CIs

Status Accounting
- The reporting of all current and historical data of each CI Ordered, Under Repair, Live, Test .

Verification & Auditing

- Reviews and audits to verify physical existence of CIs

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Key Considerations
Configuration Items (CIs)
Component of an infrastructure that is (or is to be) under the control of Configuration Management

Configuration Management Database (CMDB)

A database that contains all relevant details of each CI and details of the important relationships between CIs

Base Level
The lowest level at which CIs are uniquely identified

Baseline A SNAPSHOT
The configuration of a product or system established at a specific point in time, capturing both structure and details

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Example Software Structure

Software System Application 2

Application 1 Programme A

Application 3 Programme C

Programme B

Module 1
Subroutine 1
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Subroutine 2

BASE LEVEL (CI Level) The lowest level at which CIs are uniquely identified

Attributes
Attributes - Unique Identifier - CI Type ID - Name - Version Number - Model / type identification - Place / location - Supplier - CI History - Status - Relationships - VARIANTS

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Relationships
Relationships - ..is a parent/child of.. - ..is a version of.. - ..is connected to.. - ..applies to..(e.g. documentation) - ..is used for.. (CIs related to service) - ..is a variant of.. (MS Dictionary English vs. Dutch) Any others that are meaningful and useful to the organisation can be used

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Benefits
Provides accurate information on CIs and their documentation to support all other Service Management disciplines Facilitates adherence to legal and contractual obligations Improves security by controlling the versions of CIs in use

Setting up Configuration Management

The planning process for setting up could take up to 6 months. Actual implementation may take much longer, but the benefits of Configuration Management should outweigh the cost

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CFig

Exam Tips
The key to configuration management is that it identifies RELATIONSHIPS between CIs Configuration Activities
Planning Identification of Configuration item (CI) Control Status Accounting (ordered, delivered,tested, installed, under repair, retired) Verification & Audit

Configuration Management Database

Hardware Software Documentation IT Staff

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Exam Tips Continued

Documentation CIs
Processes and Procedures Technical Documentation Organisational Charts / Diagrams

All CIs have a number of ATTRIBUTES

CISs ALWAYS have Unique ID and CI Type ID attributes

Base Level lowest level a CI is uniquely identified Baseline = Snapshot of CMDB structure and detail CI Variant is an additional CI attribute e.g. Keyboard CI may have French and English variants

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Exam Questions
What information does Configuration Mgt provide to the IT management of an organisation?

A Variations from agreed service levels (IM) B Time spent on investigation and diagnosis by each support group (IM) C Number of incidents and problems per category (IM) D Details and history of the IT infrastructure

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Exam Questions
A Configuration Management Database (CMDB) can contain different Configuration Items (CIs). Which of the items below would NOT normally be regarded as a CI? A user name A video monitor (SW) A bought-in software package (HW) A procedure (DOC)

A B C D

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Exam Questions
What is the main difference between a CMDB (Configuration Management Database) and a typical asset register? A CMDB is a computerised system most asset registers are not There is no difference Only hardware and software is recorded in a CMDB A CMDB is a database that shows the relationships between items

A B C D

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Exam Questions
Which of the following can be regarded as CIs?

1 2 3 4 5
A B C D
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Hardware Documentation Staff (NOT USERS) Software Network components

1,4 & 5 1,2,4 & 5 1&4 All of them

Incident Management

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Goal - Primary Objective

To restore normal service operation as quickly as possible with minimum disruption to the business, thus ensuring that the best achievable levels of availability and service are maintained

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Why Incident Management

Ensure the best use of resource to support the business Develop and maintain meaningful records relating to incidents Devise and apply a consistent approach to all incidents reported

Incident Definition
An incident is an event which is not part of the standard operation of a service and which causes, or may cause an interruption to, or a reduction in the quality of that service

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Incident Lifecycle

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Impact, Urgency & Priority

IMPACT - The likely effect the incident will have on the business (e.g. numbers affected, magnitude) URGENCY - Assessment of the speed with which an incident or problem requires resolution (i.e. how much delay will the resolution bear) PRIORITY - the relative sequence in which an incident or problem needs to be resolved, based on impact and urgency

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Use of Support Teams

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Escalation
IT Service Manager

Hierarchical (authority)

Service Desk Manager

2nd Line Manager

3rd Line Manager

Service Desk Support Team

2nd Line Support Team Functional (competence)

3rd Line Support Team

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Relationships
Relationship between incidents, Problem and Known Errors
Known Error Problem RFC Structural Resolution

Incident
Error in infrastructure

Handling of Major Incidents

Major incidents occur when there is extreme impact to the Users. Problem Management should be notified to arrange a formal meeting. The Service Desk will ensure Incident records are maintained with all actions and decisions.

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Benefits
Reduced business impact of Incidents by timely resolution Improved monitoring of performance against targets Elimination of lost Incidents and Service Requests More accurate CMDB information Improved User satisfaction Less disruption to both IT support staff and Users

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Possible Problems
Lack of Management commitment Lack of agreed Customer service levels Lack of knowledge or resources for resolving incidents Poorly integrated processes Unsuitable software tools Users and IT staff bypassing the process

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IM

Exam Tips
Restoring services is a PRIMARY objective of Incident Management ALL calls should be logged Incident - Problem - Known Error - Change

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Exam Questions
Salesmen are able to use their laptops from hotels to obtain information on travel routes and travelling times. On several occasions they have found that when a certain modem had been installed, communication was unsatisfactory. A temporary solution to this fault has been identified. Which processes other than Incident Management are involved in achieving a structural solution? A B C D E Change, Configuration, Release & Problem Management Only Configuration, Problem & Release Management Only Change & Release Management Only Change, Release & Configuration Management Only Problem & Release Management

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Exam Questions
A trend analysis of incident data that over 30% of incidents regularly recur. Which of the following activities will contribute most to cutting down the percentage of regularly recurring incidents? A A presentation to the board of directors to explain the importance of Problem Management B Implementation of the Problem Management process C The selection of an appropriate tool to log all incident data more accurately D The introduction of a single Service Desk number so customers know who to contact

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Exam Questions
Which of the following data is least likely to be used in the incident control process? A B C D Incident category Make/model of faulty item Impact code Cost of faulty item

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Exam Questions
If a customer complains that service levels are below those agreed in the SLA, apparently due to a number of related hardware incidents, who is responsible for ensuring the cause is investigated?

A B C D

The Incident Manager The Capacity Manager The Problem Manager The Availability Manager

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Problem Management

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Goal Primary Objective

To minimise the adverse effect on the business of Incidents and Problems caused by errors in the infrastructure and to proactively prevent the occurrence of Incidents, Problems and Errors

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Why Problem Management

Resolve Problems quickly and effectively Ensure resources are prioritised to resolve Problems Proactively identify and resolve Problems and Known Errors thus minimising Incident occurrence / recurrence Improve the productivity of support staff

Problems & Known Errors

A Problem is the unknown underlying cause of one or more Incidents. It will become a Known Error when the root cause is known and a temporary work around or a permanent alternative has been identified

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Service Desk IM PM (PC) (EC) - CM

RRS User
Incident
One or More Incidents with Unknown Underlying cause

Problem DB

PROBLEM CONTROL

SD/IM IM
PM

Incident DB
Root Cause Known and Temp or Perm Fix found

Known Error DB PM Raise RFC YES

Business Case to FIX

Known Error
PM ERROR CONTROL

NO

Change Management
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STOP

Activities
Problem Control Error Control Major Incident Support Management Information Major Problem Reviews Proactive Problem Prevention

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Proactive Activities
Trend Analysis - Post-Change occurrence of particular Problems - Recurring Problems per type or per component - Training, documentation issues Preventative Action - Raising RFC to prevent occurrence/recurrence - Initiate education and training - Ensure adherence to procedures - Initiate process improvement - Provide feedback to testing, training and documentation

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Benefits
Reduction in volume of Incidents Improved IT service quality Better first time fix rate at service desk Permanent solutions Improved organisation learning and awareness

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PM

Exam Tips
Unknown Underlying cause Root Cause with workaround Error Control Problem Control

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Exam Question
What is the difference between a Problem and a Known Error?

A A Known Error is always the result of an incident, a Problem is not B There is no real difference between a Problem and a Known Error C In the case of a Known Error there is a fault in the IT infrastructure, with a Problem there is not D In the case of a Known Error the underlying cause of the Problem is known

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Exam Question
A company has received messages concerning errors in the daily batch run which handles the ordering of raw materials for the manufacturing process. This is probably due to an incorrect change in the software. The change involved extending the stock number field by two positions. This change was also introduced in a monthly program that has not yet been run. The situation needs to be corrected very quickly to avoid affecting manufacturing. What is the best possible solution to be adopted by Problem Management when handling the error?

A The errors are reported and because the underlying cause is known, handled by Change Management as a Request for Change with the status of urgent change B The errors are reported as problems at the Service Desk and because manufacturing is involved, are directly introduced as Changes C The errors are reported as Incidents to the Service Desk and after some research they are identified as Known Errors, which can then be changed D The errors are reported as Incidents and a Problem is identified. After the cause of the error has been established and a temporary workaround found, it is labelled as a Known Error that can be corrected by raising a Request for Change

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Change Management

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Goal Primary Objective

To ensure that standardised methods and procedures are used for efficient and prompt handling of all Changes, in order to minimise the adverse impact of any Change-related incidents upon service quality

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Responsibilities
Raising and recording Changes Assessing the impact, cost, benefit, resource requirements and risk of proposed Changes Developing business justification and obtaining approval Managing and coordinating Change implementations Monitoring and reporting on the implementation Reviewing and closing Requests for Change (RFC)

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Why Change Management

Ensure Standard methods used for all changes Facilitate prompt handling of changes Keep a balance between the need for change and the potential detrimental impact of change

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Types of Change
Basic Change - Priority: Based on Impact+Urgency High, Medium, Low (Urgent?) - Category: Based on business impact Minor, Significant, Major Urgent Change - A change that needs to be implemented more quickly Standard Change - An accepted solution to an identifiable and relatively common set of requirements (e.g. set up of User profile, Password reset)

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Change Control Process Basic (normal)

Change Manager Start Filters requests Allocates initial priority Change Manager Change Manager Decide category and/or use of standard model minor Change Manager Approves / rejects and schedules Changes, reports action to CAB Change Builder Builds Change, devises back-out & testing plans Implement change using appropriate Standard Change model

major Change Manager Circulates RFCs to Board members

significant Change Manager Circulates RFCs to CAB members

Senior management / board level Approve / reject Changes (Financial / Technical / Business)

Senior management / board level Approve / reject Changes (Financial / Technical / Business)

Change Manager Closed Change review

Change Manager Co-ordinates Change implementation

Independent tester Tests Changes

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Change Control Process - Urgent

Change Manager Start Change Manager Allocates initial priority Change Manager Calls CAB or CAB / EC meeting

Filters requests

Change Manager Co-ordinates Change implementation

Independent tester Urgent testing

Change Builder Builds Change, devises back-out & testing plans

CAB or CAB / EC Quickly assesses impact resources and urgency

Change Manager Ensures records are brought up to date

Change Manager Review Change

Closed

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Change Process

RFC
Registration Acceptance Priority (Urgent?)

Stage 1

Stage 2

Category Impact Assessment Authorisation & Schedule Build Test Implement OK - Y/N? Backout Review Close RFC

Stage 3

Stage 4

Stage 5

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Considerations
Change Advisory Board (CAB) - RFC are circulated to selected members depending on Change Category (Minor, Major, Significant) - Mandatory assessment of RFC - Optional attendance of CAB meeting - Meetings held on a regular basis CAB / Emergency Committee (CAB/EC) - Responsibility for impact assessment of urgent changes Forward Schedule of Changes (FSC) Projected Service Availability (PSA) based on FSC

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Benefits
Increased visibility and communication of changes to both business and service support staff Reduced adverse impact of change from improved business, technical impact and risk assessment Improved productivity of Users through less disruption and higher quality of service Better assessment of the cost of proposed changes Greater ability to absorb a large volume of change

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CH

Exam Tips
Basic and Urgent Change Control Process Change is associated with RISK CAB Members Problem Manager Change Manager Customer Representatives

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Exam Question
When can the building, testing and implementation of a change begin?

A If it is urgent, as soon as the Request for Change has been classified B As soon as there is a back-out plan for the change C As soon as the impact analysis has been discussed by the members of the Change Advisory Board D As soon as the Request for Change has been formally authorised

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Exam Question

A B C D

How frequently should CAB/EC meeting be held? Daily Monthly Weekly As required

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Exam Question
Consider the following statements: 1 Effective Change Management ensures that urgency and impact are keys to decisions made on the scheduling of changes 2 Change Management controls all aspects of the change process A B C D Which of these statements is true? 1 Neither of them 2 Both of them

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Release Management

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Goal Primary Objective

To take an holistic (Overall) view of a Change to an IT service and ensure that all aspects of a release, both technical and nontechnical are considered together

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Why Release Management

Manage large or critical hardware roll-outs Manage major software roll-outs Bundling or batching related sets of changes Control the release of authorised CIs into the supported environment

Release Policy
A release policy document should be produced to clarify the roles and responsibilities for Release Management. There may be one document per organisation or an umbrella set of guidelines and specific details for each supported service

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Responsibilities of Release Management

Development Environment

Controlled Test Environment

Live Environment

RELEASE MANAGEMENT

Release Policy

Release Planning

Develop or purchase software

Build / configure release

Fit for purpose testing

Release acceptance

Roll out planning

Communication Distribution preparation & & installation training

Configuration Management Database (CMDB) and Definitive Software Library (DSL)

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Terminology
Definitive Software Library (DSL)
Definitive Software Library where ALL authorised versions of software are stored and protected. A Physical library or storage repository where master copies of software versions are kept. This one logical store may consist of one or more physical software libraries or file stores.

Definitive Hardware Store (DHS)

Definitive Hardware Store An area set aside for the secure storage of definitive hardware spares.

Types of Release
- Delta, Full and Package

Definitions
Release: a collection of authorised Changes to an IT Service Release Unit: the portion of the IT infrastructure that is

normally released together Roll-out: deliver, install and commission an integrated set of new or changed CIs across logical or physical parts of an organisation

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Types of Release
Delta Only those CIs that have actually changed since last release are included. Full All components of the Release are built, tested, distributed and implemented together (whether they have changed or not). Package Individual Releases both Full and Delta are grouped together to form a Package for release.

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Build Management
Software and Hardware components for release should be assembled in a controlled, reproducible manner. Build Management becomes the responsibility of Release management from the controlled test environment on wards. Back out plans should be devised and tested as part of the release. Change Management allows CMDB to remain accurate. Without Configuration data change impacts are not accurately assessable. Without Change and Configuration Management, Releases will not be controlable.

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Possible Problems
Resistance from Staff to new procedures Circumvention of procedures Unclear ownership and role acceptance Lack of understanding of release contents Reluctance to back out of a failing release.

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Benefits
Improved service quality from greater success rate for releases and minimal disruption to the business Greater ability to cope with high levels of Change Assurance that hardware and software in live use is of known quality, reducing the chance of illegal, wrong or unauthorised software being in use Better expectation setting for Business and Service staff

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RM

Exam Tips
Release is associated with ROLLOUT Urgent Software releases do not require FULL testing

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Exam Questions
One of Release Managements tasks is to set up a DHS. Which statement most closely describes the DHS?

A A DHS is a number of physical locations where baselines are stored B Before setting up a DHS a tool should first be purchased for releasing the hardware into the environment C A DHS is an area set aside for the secure storage of definitive hardware spares D A DHS is a database in which all definitive hardware Configuration Items are recorded

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Exam Question
The words Delta, Full and Package describe different types of release. Which one of these following statements is true? A B C D A Package release contains hardware and software Urgent changes are always Delta releases A Delta release is only ever part of a Package release A Full release releases the normal release unit into the live environment

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Exam Question
Students at a college can send in their course work from their home PC via the telephone Network. They can then check their results on their PCs. A student needs an existing set of programs that can be configured for the particular course that the student is following. Which process is responsible for the correct configuring and transmission of the programs? A B C D Release Management Change Management Configuration Management Network Management

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Service Level Management

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Goal Primary Objective

To maintain and gradually improve business aligned IT service quality, through a constant cycle of Defining Agreeing Monitoring Reporting Reviewing IT service achievements and through instigating actions to eradicate unacceptable levels of service

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Responsibilities
Produce and maintain the Service Catalogue Negotiate and agree service levels Measure and report actual service levels against targets Maintain service levels in line with business requirements Co-ordinate other ITSM functions and suppliers Review all agreements and contracts against changing business need Proactively improve Service Levels

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Terminology
Service Catalogue (ARGOS Catalogue) Service Level Requirements (SLR) Amounts Availability, Response Time .. Service Level Agreement (SLA) Document Client/Supplier Operational Level Agreement (OLA) Document Internal Underpinning Contract (UC) Document 3rd Party Suppliers Service Improvement Programme (SIP) To Maintain Business alignment

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Structure of SLAs
Some organisations adopt a multi-layer structure: Corporate Level - Covering all generic SLM issues appropriate to every Customer throughout the organisation Customer level - Covering all SLM issues relevant to the particular Customer group, regardless of the service being used Service Level - Covering all SLM issues relevant to the specific service, in relation to a specific Customer group

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Structure of SLM
Customers Customer Customer Customer

SLA

IT Service IT Service Department

IT Systems

IT Systems

Supplier & Maintenance

OLA

UC

Internal

External

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SLA Contents
Examples - Introduction - Service Hours - Availability % - Reliability - Support - Throughput - Transaction Response Times - Batch turnaround times - Change - IT Service Continuity - Security - Charging - Service Reporting and Reviewing - Glossary of terms - Escalation Path

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Benefits
Actual service delivered measured against targets Allows Customer to weigh service against charges (Value for Money) Potential cost reduction in long term Agreed conflict resolution route Less unpredictable demands Improved customer relations

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SLM

Exam Tips
Negotiate and Agree

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Exam Question
Which of the following are direct advantages of entering into Service Level Agreements? 1 The expectations of both the IT customer and the provider should be aligned 2 Fewer incidents will occur 3 Unambiguous measurements of service provision will be provided 4 The number of changes that have to be backed out will decrease A B C D 2&4 1&2 3&4 1&3

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Financial Management Availability Management Capacity Management IT Service Continuity Management

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Financial Management for IT Services

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Goal Primary Objective

To provide cost-effective stewardship (management) of (ALL) the IT assets and financial resources used in Services

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Why Financial Management

Identify the actual cost of services provided Provide accurate and vital financial information to assist in decision making Make Customers aware of what services actually cost TCO Assist in the assessment and management of changes Help influence customer behaviour Positioning for charging

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Concepts
Accounting and Budgeting (mandatory) - Understand costs involved in providing a service - Prediction of future costs - monitor actual against predicted costs

- Account for monetary spend over given period

Charging (optional) - Recovery of service costs from Customer - Operate IT Division as a business unit if required

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IT Financial Cycle
Business IT Requirements IT Operational Plan (inc. Budgets) Cost Analysis (Accounting) Charges

Financial Targets Costing Models Charging Policies

Feedback of proposed charges to business (effects behaviour)

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Cost Model
The Cost Model will consist of COST ELEMENTS COST TYPE COST CATEGORISATION Capital OR Operational Direct OR Indirect

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Transfer (Cross Charges) Hardware External Services Software People Accommodation

Fixed OR Variable

Key elements in determining the cost of a service

INDIRECT COSTS NOT directly attributable but shared.

ABSORBED OVERHEADS Total cost of indirect materials and expenses that are NOT passed onto the customer. UNABSORBED OVERHEADS Total cost of Indirect materials; wages; expenses that are apportioned and added to the cost of each service. DIRECT COST Directly attributable.

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Charging
Based against Organisational policy on IT - overhead / break even / profit centre Prices should be simple, understandable, fair and realistic Charging mechanism to support policy
Price=cost
Price=cost +/-X% Price is comparable with other internal groups (internal X charge rate)

Cost:
Cost plus: Going rate:

Market rate:
Fixed Price:

Price matches that charged by external suppliers (open market price)

Set price is agreed for a set period based on anticipated usage

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Benefits
Reduced long term costs Increased confidence in managing budgets Accurate cost information More efficient use of IT Ensuring funds are available to provide service Enables the recovery of costs Influences customer behaviour Allows comparison with alternative providers

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Fin

Exam Tips
ABC of Finance Accounting (MAN) Budgeting (MAN) Charging (OPT) You must have a cost model before you can charge Charging shows Total Cost of Ownership THE SPA Cost Types Overhead or indirect cost total cost of indirect materials wages and expenses. Direct cost can be traced in full to a product or service, cost centre or department e.g. Wages Indirect Cost cannot be traced directly in full to product or service, cost centre or department because it has been apportioned.

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Exam Questions
Without a good Accounting System you cannot:

1 Know the full cost of services provided 2 Judge the efficiency of Problem Management 3 Recover costs related to usage, should you wish
Which of the above is true? A 1,2 & 3 B 1 & 3 only C 1 & 2 only Note! The question is asking you is 2 or 3 correct as 1 appears in all answers and must be correct.

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Exam Questions
Consider the following statements:

1. Customers should always be invoiced for the IT services they use 2. The only reason services are charged for is to make customers aware of the costs involved in using those services
A B C D Both Only 1 Neither Only 2

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Exam Questions
Which of the following is NOT the concern of IT Financial Management?

A Telephone charges B Invoicing C Differential Charging (High and Low Tariffs) Demand Management Method used in CAPACITY MANAGEMENT D Reviewing IT service quality

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Exam Questions
Which of the following statements on IT Financial Management is correct?

A An IT Financial Manager identifies the costs incurred by IT and might propose prices for the services supplied B In order to set up Budgeting and Accounting, SLAs and OLAs need to have been agreed C It is only possible to be cost conscious if the customer is charged for services (hinting at TCO) D IT Financial Management must agree charges with the customer before establishing a Cost Model (Cost Model comes before charging)

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Availability Management

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Goal Primary Objective

To optimise the capability of the IT infrastructure and supporting organisations to deliver a cost effective and sustained level of availability that enables the business to satisfy its objectives

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Principles
Availability is at the core of business & end user satisfaction

When things go wrong, it is still possible to achieve business & end user satisfaction
Improving availability begins when it is understood how IT services integrate with and support the business

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Why Availability Management

To ensure services are available when the customer needs them Influences Business Demand Cost required to meet demand Complexity of IT Infrastructure Levels of Redundancy Reliability of the Infrastructure Level of Maintenance Processes and procedures used by Services Human Factors Skill sets

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Responsibilities
Determine availability requirements in business terms Predict and design for expected levels of availability Optimise availability through monitoring and reporting Produce Availability Plan Long term for proactive improvement Ensure SLAs are met and monitor OLA/UC availability obligations Manage Service Outage Analysis (SOA) Produce and maintain: - Component Failure Impact Analysis (CFIA) - Fault Tree Analysis (FTA)

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Considerations
Availability Reliability Managed through OLAs Maintainability Managed through UCs Serviceability Resilience - Related to Resource Capacity Management Security - Confidentiality, Integrity, Availability (CIA)

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ITAMM IT Availability Metrics Model

Range of metrics and perspectives that should be considered when establishing Measurement and Reporting Measurements need to be meaningful and add value Consider WHAT you measure and HOW you report it

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Expanded Incident lifecycle

DOWNTIME or MeanTime To Repair (M)TTR

Incident

Detection

Diagnosis

Repair

Recovery

Restoration

Incident

UPTIME or MeanTime Between Failures (M)TBF

Time between system incidents (M)TBSI

Time

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Calculating Availability
AST - DT

% Availability =

X 100

AST

Further considerations: Components in series or parallel Weighting per number of users affected Weighting per criticality period
Measuring Availability Measurements need to be meaningful and add value to the IT and business organisation. It would be necessary to consider both what is measured and how it is reported

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Benefits
Services are designed and managed to meet specified business availability requirements Shortfalls in levels of availability are identified and corrective actions taken Frequency and duration of IT failures is reduced Availability levels are measured to fully support Service Level Management BUSINESS VALUE! Effective Availability Management will influence customer satisfaction and determine the perceived Reliability of the business on the market

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AM

Exam Tips
Remember the ABILITY RELIABILITY MAINTAINABILITY SERVICEABILITY But NOT VULNERABIILITY (ITSCM) CIA (Confidentiality, Integrity and Availability)

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Exam Questions
Availability Management is responsible for ..

1. Understanding the reliability of components to carry out a required function under given conditions over a certain period of time 2. The ease with which maintenance (Maintainability) of service components can be carried out 3. Negotiating availability levels with customers Which of these is correct? A Only 2 & 3 B Only 1 & 2 C 1, 2 & 3 D Only 1 & 3 Note ! 1 is definitely correct and 3 is definitely wrong (SLM) 2 is disguised!!!!
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Exam Questions
Percentage availability is calculated as:

A DT * 100 ------------AST B AST * 100 ------------DT

C (AST DT) * 100 ---------------------AST D AST --------------------(AST DT) * 100

Note! It just is Remember it! Treat it as a gift (100 20) * 100 -----------= 80% 100
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Exam Questions
In Availability Management terms, what do the letters CIA stand for? Component Impact Analysis (ITSCM) Confidentiality, Integrity, Availability Configuration Item Availability Central Intelligence Agency (A contradiction in terms)

A B C D

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Exam Questions
Managing service availability is now more important than ever because

A The dependence (Reliability prevention of failure) of customers on their IT has grown B System Management tools can now provide much more real time performance management information C More IT systems are outsourced D More service providers now have Service Level Agreements with their customers

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Capacity Management

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Goal Primary Objective

To understand:

- The future business requirements (the required service delivery) - The organisations operation (the current delivery) - The IT infrastructure (the means of service delivery)
Ensure that all current and future capacity and aspects of the business requirements are provided cost effectively

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Why Capacity Management

Monitor the performance and throughput of IT services Tuning activities to make efficient use of resources Understand the current demands for IT services and produce forecasts for future requirements Help to influence demands for IT resources Production of a Capacity Plan predicting the IT resources needed to achieve agreed or proposed service levels

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Success Factors
Accurate business forecasts Understanding of current and future technology Ability to demonstrate cost effectiveness Interaction with other Service Management processes Ability to plan for and implement appropriate IT capacity to match business requirements and predictions

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Responsibilities of Capacity Management

Business Capacity management (BCM) - Ensuring future business requirements for IT services are considered and matched to capability Service Capacity Management (SCM) - Managing performance of IT services delivered to customers and documented in SLAs Resource Capacity management (RCM) - Management of components ensuring that all resources are monitored & measured

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Business Capacity Management

Planning Future Business requirements Requires a knowledge of.. Existing Service Levels, SLAs Future service levels ans SLRs Business Plan and Capacity Plan Modelling Techniques Analytical Simulation Trending Baselining Application Sizing

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Service Capacity Management

Monitors and Measures services Requires a knowledge of .. Service Levels and SLAs Service throughput and performance Tuning and demand management

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Resource Capacity Management

Management of Components of IT Infrastructure Requires a knowledge of .. Current technology and utilisation Future alternative technologies Resilience of systems and services

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Capacity Management Database (CDB)

Forms the basis for the production of all Capacity management reporting May consist of many physical data stores covering: - Business data - Service data - Technical data - Financial data - Utilisation data May form part of the CMDB

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Iterative Activities The Cycle

Tune

Implement

Analyse

Monitor

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Iterative Activities Inputs

Tune

Implement

Analyse

Monitor

Resource Utilisation Thresholds

SLM Thresholds Capacity Management DB

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Iterative Activities Outputs

Tune

Implement

Analyse

Monitor

Capacity Management DB
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SLM Exception Reports

Resource Utilisation Exception Reports

Other Activities
Demand Management Differential Charging and Lock out Modelling - Trend Analysis, - Analytical Modelling - Simulation Modelling - Baseline Modelling Application Sizing Production of the Capacity Plan
Capacity planning is essentially a balancing act: Cost against Capacity Supply against Demand

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Benefits of Capacity Management

Increased efficiently and cost savings resulting in more economic provision of IT services Elimination of unnecessary spare capacity Elimination of panic buying Possibility for deferred expenditure Reduced risk of performance Problems and failures More confident and improved forecasting Improved awareness of capacity issues within the development cycle

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CM

Exam Tips
Business Capacity Management - future business requirements Service Capacity Management current service delivery Resource Capacity Management underlying resource components Demand Management Differential Charging Modelling

Tuning Analytical Simulation Baseline (what if?)

Application sizing There are capacity threshold that generate alerts!

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Exam Questions
Application Sizing is a technique used by Capacity Management. Why is Application Sizing Important?

A The availability of an IT service can be measured (AM) B The use of an IT application can be controlled C The maintenance of technical skills is important to application developers D The resources needed (RCM) for an application and its performance can be predicted (BCM)

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Exam Questions
Differential Charging is a technique used in ..

A B C D

FTA (Fault Tree Analysis ITSCM) Status Accounting (Configuration Management) Demand Management (Capacity Management Varying Tariffs) CRAMM (ITSCM Risk Analysis)

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IT Service Continuity Management

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Goal Primary Objective

To support the overall Business Continuity management process by ensuring that the required IT technical services and facilities can be recovered within required and agreed business time-scales

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Why Continuity Management

Ensuring business survival by reducing the impact of a disaster or major failure Reducing the vulnerability and risk to the business by effective risk analysis and risk management Preventing the loss of Customer and User confidence Producing IT recovery plans that are integrated with and fully support the organisations overall Business Continuity Plan

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Considerations
IT Service Continuity options need to be understood and the most appropriate solution chosen in support of BCM requirements Roles and responsibilities need to be identified and supported from a senior level IT recovery plans and Business Continuity plans need to be aligned regularly reviewed, revised and tested

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The Business Continuity Life-cycle Overview

Stage 1 Initiation Initiate Business Continuity Manager Stage 2 Requirements and Strategy Stage 3 - Implementation Stage 4 - Operational Management

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Stage 2 Requirements and Strategy

Business Impact Analysis Identification of Critical Business Processes and Speed of Recovery Risk Assessment and Methodology Threats to Assets CRAMM CCTAs Risk Analysis Management Methodology (Central Computer and Telecommunications Agency)

Business Continuity Strategy Based on Top Risks

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Risk Analysis (CRAMM)

ANALYSIS
Assets Threats Vulnerabilities

Risks

MANAGEMENT

Countermeasures

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Risk Analysis
Asset Categorise and RANK 1-10 Hardware Software People Buildings etc. Threat List and RANK 1-3 Vulnerability against Assets Matrix RANK 1-3 Risk = Asset * Threats * Vulnerability

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IT Recovery Options
Do nothing Manual back-up revert to pen and paper Reciprocal arrangements with another company Gradual recovery - Cold Standby Intermediate recovery - Warm Standby Immediate recovery - Hot Standby

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Gradual Recovery COLD standby

Time to recovery > 72hrs Empty Computer space Remote Portable Nothing in the rooms Requires contracts / procedures in place to set up

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Intermediate Recovery WARM standby

Time to recovery 24hrs to 72hrs Filled Computer space Remote Portable Networked Computers but with NO Data

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Immediate Recovery HOT standby

Time to recovery within the working day 0hrs to 8hrs Filled Computer Space Remote Portable Networked Computers with Data (but not necessarily up to date)

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Benefits of Continuity Management

Management of risk and the consequent reduction of the impact of failure Fulfilment of regulatory requirements Potentially lower insurance premiums A more business focussed approach to IT continuity and recovery Reduced business disruption during an incident Increased customer confidence and organisational credibility

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ISCM

Exam Tips
Know the Disaster Recovery options

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Exam Questions
In relation to IT Service Continuity Planning, the severity of a disaster depends upon: A B C D The time of day it occurs How many people are available to assist in recovery The type of disaster, whether flood, fire etc The impact (EFFECT) upon customers businesses

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Exam Questions
Consider the following statements about IT Service Continuity Planning:

1 The intermediate recovery external option offers a remote installation, fully equipped with all the required hardware, software, communications and environmental control equipment 2 The intermediate recovery external option is often shared between multiple customers and in the event of a disaster may not be available due to over-subscription A B C D
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Both Neither Only 1 Only 2

Exam Questions
Your organisation has just entered into a Gradual Recovery (Cold Standby) IT service Continuity Agreement. Within the ITIL definition, which of the following lists is INCORRECT for what you could find at the contingency site?

A A building, electricity, telecommunications equipment, office space for technical staff B Stand-by generator, telecommunications equipment, system manuals, support staff, water C A building, telecommunications equipment, a computer, support staff, documentation D A building, electricity, water, support staff, system manuals

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Exam Questions
Which of the following would you NOT expect to see in an IT Service Continuity Plan? A B C D Contact lists The version number Reference to change control procedures Full Service Level Agreements (SLM)

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